Management Process and Organization Behavior

ManagementProcessandOrganizationBehavior
MB0022/PB001/MH0026
Contents
Unit1
ManagementProcess
Unit2
OrganizationalBehavior
17
Unit3
FoundationofOrganizationbehavior
33
Unit4
Learning
41
Unit5
Value,EthicsandJobsatifaction
52
Unit6
Personality
69
Unit7
Emotions
83
Unit8
Perception
Edition:Fall2008
96
Contents
Unit9
Motivation
114
Unit10
GroupBehavior
131
Unit11
PowerandPolitics
147
Unit12
ConflictManagement
164
Unit13
Stressmanagement
176
Unit14
Organizationchange
191
Unit15
OrganizationDevelopment
Edition:Fall2008
BKIDB0665
205
Dr.K.Jayakumar
ViceChancellor
SikkimManipalUniversityofHealth,Medical,andTechnologicalsciences
Prof.NandagopalV.B.
DirectorandDean
SikkimManipalUniversityofHealth,Medical,andTechnologicalsciences.
BoardofStudies
Dr.T.V.NarasimhaRao
Prof.K.V.Varambally
Professor,ManipalUniversalLearning
Director, Manipal Institute of Management,

Manipal
Ms.VimalaParthasarathy
Mr.ShankarJagannathan
Asst. Professor,. Sikkim Manipal University of FormerGroupTreasurer

Health,
WiproTechnologiesLimited,Bangalore
MedicalandTechnologicalstudies.
Ms.SadhanaDash
Mr.AbrahamMathews
SenorManagerHR
ChiefFinancialOfficer
MicrosoftIndiacorporation(Pvt)limited
InfosysBPO,Bangalore
Mr.PankajKhanna
Director,HR,FidelityMutualFund
ContentPreparationTeam
1.Dr.NilanjanSengupta
Professor,IFIM,Bangalore
2.Dr.MousumiSengupta
Professor,IFIM,Bangalore
PeerReviewBy
M.S.SadhanaDash
HRDept,MicrosoftIndia(P)Ltd,
Bangalore
Edition:Fall2008
Thisbookisadistanceeducationmodulecomprisingofcollectionoflearningmaterialforourstudents.
All rights reserved. No part of this work may bereproduced in anyform by anymeans without permission in
writingfromSikkimManipalUniversityofHealth,MedicalandTechnologicalSciences,Gangtok,Sikkim.
PrintedandPublishedonbehalfofSikkimManipalUniversityofHealth,MedicalandTechnologicalSciences,
Gangtok,Sikkim byMr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd., Manipal 576 104.
PrintedatManipalPressLimited,Manipal.
INTRODUCTION
Organizations face multiple challenges and threats today threat to effectiveness, efficiency and
profitability challengesfrom turbulentenvironments, increased competition and constant challenge
to maintain its culture. Individuals in organizations likewise face multiple challenges finding
satisfaction in and through work, fighting obsolescence of ones knowledge and skills, maintaining
dignityandpurposeinpursuitoforganizationalgoals.
Unit1:ManagementProcess
Thisunitdealswithmanagementfunctionswhichareasfollows.Planning,Organizing,Commanding,
Coordinating,Controlling. However,inrecenttime,managementfunctionshavebeenregroupedinto
fourcategories,sincethemanagerialtaskshavebecomehighlychallengingafluidinnaturemaking
distinctionsredundanttoacertain extend.Thefourfunctionsareasfollows:Planning,Organizing
,Leading,Controlling
Unit2:OrganizationalBehavior
This unit deals with organizational behavior. OB is a field of study that investigates the impact that
individuals,groups,andstructurehaveonbehaviorwithinanorganization,thenappliesthatknowledge
tomakeorganizationsworkmoreeffectively.Specifically,OBfocusesonhowtoimproveproductivity,
reduceabsenteeismandturnover,andincreaseemployeecitizenshipandjobsatisfaction
Unit3: FoundationofOrganizationbehavior
ThisunitdealswithorganizationalBehaviorwhichemphasizesonintellectualcapitalasrepresentedby
thesumtotalofknowledge,expertise,anddedicationofanorganizationsworkforce
Unit4:Learning
Thisunitdealswithlearningthatreferstoaprocesswhichenhancestheknowledge,skillandattitude
(KSA) of individuals, to increase his/her willingness to adopt those newly acquired KSA and to
implementthemattheworkplace.
Unit5: Value,EthicsandJobsatifaction
Thisunitdealswithvalueswhichrepresentbasicconvictionsthataspecificmodeofconductorend
state of existence is personally or socially preferableto an opposite or converse mode of conduct or
endstateofexistence.
Unit6:Personality
ThisunitdealswiththefactorsaffectingpersonalitydevelopmentareHeredity,Environment,Culture,
Family,andSituation.
Unit7: Emotions
ThisunitdealswithEmotionwhichisusedtodesignate"astateofconsciousnesshavingtodowith
thearousaloffeelings(WebstersNewWorldDictionary)."Itis"distinguishedfromothermentalstates,
fromcognition,volition,andawarenessofphysicalsensation."Feelingrefersto"anyofthesubjective
reactions,pleasantorunpleasant"thatonemayexperienceinasituation.
Unit8:Perception
This unit deals with the threefactors that shape perception of anindividual are perceiver, target and
situation.Animportantelementinperceptionisattributionprocess.
Unit9:Motivation
This unit deals with motivation which is the processes that account for an individuals intensity,
direction,andpersistenceofefforttowardattainingagoal..
Unit10:GroupBehavior
This unit deals with formal and Informal behaviour.Formal groups come into existencefor serving a
specific organizational purpose. Individuals behaviors in this type of group is aimed at achieving
organizationalgoals.
Unit11:PowerandPolitics
Thisunitdeals withpower whichistheabilitytomakethingshappeninthe wayanindividualwants,
eitherbyselforbythesubordinates.Theessenceofpoweriscontroloverthebehaviorofothers
Unit12: ConflictManagement
This unit deals with conflict which occurs whenever disagreements exist in a social situation over
issues (work related or personal). 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
caresabout(Thomas,1992).Conflictcanbeeitherconstructiveordestructive.
Unit13: Stressmanagement
Thisunitdealswithstressthathasbeendefinedasaphysical,mentaloremotionalresponsetoevents
whichcausementalorbodilytension.Inthemoderndaylifestressisapartandparcelofourlives.
Unit14:Organizationchange
Thisunitdealswithorganizationalchangewhichmaybedefinedastheadoptionofanewideaora
behaviorbyanorganization. Itisawayofalteringanexistingorganizationtoincreaseorganizational
effectivenessforachievingitsobjectives
Unit15: OrganizationDevelopment
This unit deals with organization development. OD isa planned approach to improve employee and
organizationaleffectivenessbyconsciousinterventionsinthoseprocessesandstructuresthathavean
immediatebearingonthehumanaspectoftheorganization.
References:
Buchanan,D.&Huczynski,A.(1997)OrganizationalBehaviour:AnIntroductoryText,
3rded.,PrenticeHall,London.
Barnard,C.I.(1938) FunctionsoftheExecutive,HarvardUniversity,Press,Cambridge,
MA.
Pugh,D.(1971)OrganizationTheory:SelectedReadings,Penguin,Harmondsworth.
Ivancevich,J.&Matteson,M.(1998) OrganizationalBehaviourandManagement,3rd
edn,Irwin,ChicagoandLondon.
Wood,J.(1997)inDickson,T.&Bickerstaffe,G.(eds.)MasteringManagement:The
DefinitiveGuide totheFoundationsandFrontiersofFinance,FT/PitmanPublishing,
London.
ManagementProcess
Unit1
Unit1
ManagementProcess
Structure
1.1
Introduction
Objectives
1.2
ManagementFunctions
SelfAssessmentQuestions1
1.3
Managementrolesandskills
1.4
Effectivevs.SuccessfulManagerialActivities
1.5
Summary
TerminalQuestions
AnswertoSAQsandTQs
1.1 Introduction
Organizationalbehavior(OB)isafieldofstudythatinvestigatestheimpactthatindividuals,groups,
and structure have on behavior within an organization, then applies that knowledge to make
organizations work more effectively (Robbins, 2003). In recent times, we notice the following
changesintheorganizationalsetup:
1. Demiseoftraditionalhierarchicalstructure
2. Emergenceofworkforcewithdifferentexpectationsformorganizations
3. Advancementofinformationtechnology
4. Increasingimportanceonempowermentandteamwork
5. Concernforworklifebalance
SikkimManipalUniversity
ManagementProcess
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An affective and efficient manager therefore, should focus on two key results. The first is task
performancethequalityandquantityoftheworkproducedortheservicesprovidedbytheworkunit
asawhole.Thesecondisjobsatisfactionhowpeoplefeelabouttheirworkandtheworksetting.
OB directs a managers attention to such matters as job satisfaction, job involvement, and
organizationalcommitment,aswellasmeasuresofactualtaskperformance.OBalsorecognizesthe
need for changing behavior, attitude and managerial styles in the context of the above. Hence,
managementprocessesandfunctionsarevitaltoorganizationaleffectiveness.Anunderstandingof
thebasismanagementfunctionshelpsincomprehendingthekeyrolesmanagersneedtoplaytorun
organizationseffectively.
Learningobjectives
Thelearningobjectivesofthisunitareasfollows:
1. ManagementFunctions
2. Managementrolesandskills
1.2 ManagementFunctions
Follett (1933) defined management as "the art of getting things done through people". [2] One can
alsothinkofmanagementfunctionally,astheactionofmeasuringaquantityonaregularbasisand
ofadjustingsomeinitialplan.
Managementfunctionsareasfollows(Fayol,1949):
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
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However,inrecenttime,managementfunctionshavebeenregroupedintofourcategories,sincethe
managerialtaskshavebecomehighlychallengingafluidinnaturemakingdistinctionsredundanttoa
certainextend.Thefourfunctionsareasfollows:
1. Planning
2. Organizing
3. Leading
4. Controlling
1.Planning
It involves the process of defining goals, establishing strategies for achieving these goals, and
developingplanstointegrateandcoordinateactivities.Everyorganizationneedstoplanforchange
in order to reach its set goal. Effective planning enables an organization adapt to change by
identifying opportunities and avoiding problems. It provides the direction for the other functions of
managementandforeffectiveteamwork.Planningalsoenhancesthedecisionmakingprocess.All
levelsofmanagementengageinplanningintheirownwayforachievingtheirpresetgoals.
Planning in order to be useful must be linked to the strategic intent of an organization. Therefore,
planningisoftenreferredtoasstrategicinnatureandalsotermedasstrategicplanning.
StrategicPlanning:Toplevelmanagersengagechieflyinstrategicplanningorlongrangeplanning
Strategic planning is the process of developing and analyzing the organization's mission, overall
goals,generalstrategies,andallocatingresources.
Thetasksofthestrategicplanningprocessincludethefollowingsteps:
Definethemission:
Amissionisthepurposeoftheorganization.Thus,planningbeginswithclearlydefiningthemission
oftheorganization.Themissionstatementisbroad,deconcise,summarizingwhattheorganization
does.Amissionstatementshouldbeshortandshouldbeeasilyunderstoodandeveryemployee
should ideally be able to narrate it from memory. An explicit mission guides employees to work
independentlyandyetcollectivelytowardtherealizationoftheorganization'spotential.Themission
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statement may be accompanied by an overarching statement of philosophy or strategic purpose

designedtoconveyavisionforthefutureasenvisagedbytopmanagement.
ConductasituationalorSWOTanalysis
A situation or SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is vital for the
creationofanystrategicplan.TheSWOTanalysisbeginswithascanoftheexternalenvironment.
Organizations need to examine their business situation in order to map out the opportunities and
threats present in their environments. Sources of information may include stakeholders like,
customers (internal and external), suppliers, governments (local, state, federal, international),
professional or trade associations (conventions and exhibitions), journals and reports (scientific,
professional,andtrade).
SWOT analysis provides the assumptions and facts on which a plan will be based. Analyzing
strengthsandweaknessescomprisestheinternalassessmentoftheorganization.
Forassessingthestrengthsoftheorganizationthefollowingquestionsareimportant:
1. Whatmakestheorganizationdistinctive?
2. Howefficientisourmanufacturing?
3. Howskilledisourworkforce?
4. Whatisourmarketshare?
5. Whatfinancingisavailable?
6. Dowehaveasuperiorreputation?
Forassessingtheweaknessesoftheorganizationthefollowingquestionsareimportant:
1. Whatarethevulnerableareasoftheorganizationthatcouldbeexploited?
2. Arethefacilitiesoutdated?
3. Isresearchanddevelopmentadequate?
4. Arethetechnologiesobsolete?
Foridentifyingopportunitiesthefollowingelementsneedtobelookedat:
1. Inwhichareasisthecompetitionnotmeetingcustomerneeds?
2. Whatarethepossiblenewmarkets?
3. Whatisthestrengthoftheeconomy?
4. Areourrivalsweak?
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5. Whataretheemergingtechnologies?
6. Isthereapossibilityofgrowthofexistingmarket?)
Identifyingthreatsinvolvesthefollowing:
1. Inwhichareasdoesthecompetitionmeetcustomerneedsmoreeffectively?
2. Aretherenewcompetitors?
3. Isthereashortageofresources?
4. Aremarkettasteschanging?
5. Whatarethenewregulations?
6. Whatsubstituteproductsexist?
Ingeneralterms,thebeststrategyisonethatfitstheorganization'sstrengthstoopportunitiesinthe
environment.
The SWOT analysis is used as a baseline for future improvement, as well as gap analysis.
Comparing the organization to external benchmarks (the best practices) is used to assess current
capabilities. Benchmarking systematically compares performance measures such as efficiency,
effectiveness, or outcomes of an organization against similar measures from other internal or
externalorganizations.
Setgoalsandobjectives
Strategic goals and objectives are developed to fill the gap between current capability and the
mission.Theyarealignedwiththemissionandformthebasisfortheactionplansofanorganization.
Objectivesarealsocalledperformancegoals.Generally,organizationshavelongtermobjectivesfor
factors such as, return on investment, earnings per share, etc. It also helps in setting minimum
acceptablestandardsorcommonsenseminimums.
Developrelatedstrategies(tacticalandoperational)
Tacticalplansarebasedontheorganization'sstrategicplan.Inturn,operationalplansarebasedon
theorganization'stacticalplans.Thesearespecificplansthatareneededforeachtaskorsupportive
activitycomprisingthewhole.Strategic,tactical,andoperationalplanningmustbeaccompaniedby
controlstoensureproperimplantationoftheplans,necessarytomaintaincompetitiveadvantagein
thesaidmarket.
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Monitortheplan
A systematic method of monitoring the environment must be adopted to continuously improve the
strategicplanningprocess.Todevelopanenvironmentalmonitoringprocedure,shorttermstandards
forkeyvariablesthatwilltendtovalidateandsupportthelongrangeestimatesmustbeestablished.
Feedback is encouraged and incorporated to determine if goals and objectives are feasible. This
reviewisusedforthenextplanningcycleandreview.
2.Organizing
It involves designing, structuring, and coordinating the work components to achieve organizational
goal. Itistheprocessofdeterminingwhattasksaretobedone,whoistodo,howthetasksareto
be grouped, who reports to whom, and where decisions are to be made. A key issue in
accomplishingthegoalsidentifiedintheplanningprocessisstructuringtheworkoftheorganization.
Organizationsaregroupsofpeople,withideasandresources,workingtowardcommongoals.The
purposeoftheorganizingfunctionistomakethebestuseoftheorganization'sresourcestoachieve
organizationalgoals.Organizationalstructureistheformaldecisionmakingframeworkbywhichjob
tasksaredivided,grouped,andcoordinated.Formalizationisanimportantaspectofstructure.Itis
the extent to which the units of the organization are explicitly definedand its policies, procedures,
and goals are clearly stated. It is the official organizational structure conceived and built by top
management.Theformalorganizationcanbeseenandrepresentedinchartform.Anorganization
chart displays theorganizational structure and shows job titles, lines of authority, and relationships
betweendepartments.
Thestepsintheorganizingprocessinclude:
1. Reviewplans
2. Listalltaskstobeaccomplished
3. Dividetasksintogroupsonepersoncanaccomplishajob
4. Grouprelatedjobstogetherinalogicalandefficientmanner
5. Assignworktoindividuals
6. Delegateauthoritytoestablishrelationshipsbetweenjobsandgroupsofjobs.
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3.Leading
Anorganizationhasthegreatestchanceofbeingsuccessfulwhenalloftheemployeesworktoward
achieving itsgoals.Since leadership involvesthe exercise of influence by oneperson over others,
thequalityofleadershipexhibitedbysupervisorsisacriticaldeterminantoforganizationalsuccess.
Supervisors can learn about leadership through research. Leadership studies can be classified as
trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary
source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits
alone cannot explain leadership effectiveness. Thus, later research focused on what the leader
actuallydidwhendealingwithemployees.Thesebehavioraltheoriesofleadershipsoughttoexplain
therelationshipbetweenwhattheleaderdidandhowtheemployeesreacted,bothemotionallyand
behaviorally. Yet, behavior can't always account for leadership in different situations. Thus,
contingency theoriesof leadership studied leadership style in different environments. Transactional
leaders, such as those identified in contingency theories, clarify role and task requirements for
employees. Yet, contingency can't account for the inspiration and innovation that leaders need to
competeintoday'sglobalmarketplace.Newertransformationalleadershipstudieshaveshownthat
leaders,whoarecharismaticandvisionary,caninspirefollowerstotranscendtheirownselfinterest
forthegoodoftheorganization.
Leadinginvolvesthefollowingfunctions:
1.Teambuilding
Rigiddepartmentboundariesandfixedteamsaregivingwaytoadhocsquadswhosemembership
changes with every project. Flexible networks of teambased structures are occurring within and
betweencompanies,aswellasacrossnationalborders.Competitivearenasrequirequickdecisions
byknowledgeableemployeeswhoworkclosetothesourceofproblems.Teamsenableknowledge
basedandinnovativedecisionmaking.Thiscollaborationisarevolutionintheworkplace.
2.ConsensusBuilding
Topperformancedemandsthejointeffortofmanypeople,workingtogethertowardacommongoal.
Whenanindividualworkstogetherwithothers,effectivenessgrows,creatinggreaterproductivityfor
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allinvolved.Together,employeescandomorethanthecollectiveeffortsofeachindividualworking
alone.
3.Selecting
Selecting competent, highperforming employees capable of sustaining their performance over the
long run is a competitive advantage. The selection process consists of forecasting employment
needs,recruitingcandidates,interviewingapplicants,andhiringemployees.
4.Training
After employees are selected, they enter an orientation program to be formally introduced to their
jobs. Orientation sets a tone for new employees' work by describing jobrelated expectations and
reporting relationships. Employees are informed about benefits, policies, and procedures. Specific
duties and responsibilities and performance evaluation are clarified. During orientation, the
supervisorhastheopportunitytoresolveanyunrealisticexpectationsheldbytheemployee.Training
referstoimprovinganemployee'sknowledge,skills,andattitudessothatheorshecandothejob.
Allnewemployees(orcurrentemployeesinnewjobs)shouldbetrained.Crosstrainingpreparesan
employee for a job normally handled by someone else. Also, training is advisable when new
processes,equipmentorproceduresareintroducedintotheworkplace.
Training starts with an organization analysis. By focusing on strategy and examining sales
forecasts and expected changes in production, distribution and support systems, employers can
determinewhichskillswillbeneededandtowhatdegree.Acomparisonwithcurrentskilllevelsis
usedtoestimatestaffandtrainingneeds.Taskanalysisidentifiestheelementsofcurrentorfuture
taskstobedone.Personalneedsanalysisinvolvesaskingemployeesandmanagers,eitherinan
interview or in a selfadministered questionnaire, to analyze their training needs. In general,
agreement between managers and employees tends to be low, so it is important that both parties
agreetodecisionsaboutthetrainingofemployees.
4.Controlling
It involves monitoring the employees behavior and organizational processes and take necessary
actionstoimprovethem,ifneeded.Controlistheprocessthroughwhichstandardsforperformance
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of people and processes are set, communicated, and applied. Effective control systems use
mechanismstomonitoractivitiesandtakecorrectiveaction,ifnecessary.
Therearefourstepsinthecontrolprocess.Theyareasfollows:
Step1.EstablishPerformanceStandards.Standardsarecreatedwhenobjectivesaresetduringthe
planning process. A standard is any guideline established as the basis for measurement. It is a
precise, explicit statement of expected results from a product, service, machine, individual, or
organizational unit. It is usually expressed numerically and is set for quality, quantity, and time.
Toleranceispermissibledeviationfromthestandard.
Step 2. Measure Actual Performance. Supervisors collect data to measure actual performance to
determine variation from standard. Written data might include time cards, production tallies,
inspectionreports,andsalestickets.Personalobservation,statisticalreports,oralreportsandwritten
reports can be used to measure performance. Management by walking around, or observation of
employees working, provides unfiltered information, extensive coverage, and the ability to read
between the lines. While providing insight, this method might be misinterpreted by employees as
mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct
accesstorealtime,unaltereddata,andinformation.Onlinesystemsenablesupervisorstoidentify
problemsastheyoccur.Databaseprogramsallowsupervisorstoquery,spendlesstimegathering
facts,andbelessdependentonotherpeople.
Step 3. Compare Measured Performance Against Established Standards. Comparing results with
standards determines variation. Some variation can be expected in all activities and the range of
variationtheacceptablevariancehastobeestablished.Managementbyexceptionletsoperations
continueaslongastheyfallwithintheprescribedcontrollimits.Deviationsordifferencesthatexceed
thisrangewouldalertthesupervisortoaproblem.
Step4.TakeCorrectiveAction.Thesupervisormustfindthecauseofdeviationfromstandard.Then,
he or she takes action to remove or minimize the cause. If the source of variation in work
performanceisfromadeficitinactivity,thenasupervisorcantakeimmediatecorrectiveactionand
getperformancebackontrack.
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TypesofControl
Controlsaremosteffectivewhentheyareappliedatkeyplaces.Supervisorscanimplementcontrols
before the process begins (feed forward), during the process (concurrent), or after it ceases
(feedback).
Feedforwardcontrolsfocusonoperationsbeforetheybegin.Theirgoalistopreventanticipated
problems. An example of feed forward control is scheduled maintenance on automobiles and
machinery.
Concurrentcontrolsapplytoprocessesastheyarehappening.Concurrentcontrolsenactedwhile
work is being performed include any type of steering or guiding mechanism such as direct
supervision,automatedsystems(suchascomputersprogrammedtoinformtheuserwhentheyhave
issuedthewrongcommand),andorganizationalqualityprograms.
Feedback controls focus on the results of operations. They guide future planning, inputs, and
processdesigns.Examplesoffeedbackcontrolsincludetimely(weekly,monthly,quarterly,annual)
reportssothatalmostinstantaneousadjustmentscanbemade.
Thefollowingdiagramrepresentsanintegratedmodelconnectingalltheabovementionedfunctions
ofmanagement.
Themanagementprocess(adoptedfromTerry,1972)
Resources
Planning
HR,
Financial,
Informational
etc.
Organizing
Directing
Controlling
Goal
achievement
s
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1. Inrecenttime,managementfunctionshavebeenregroupedinto____________categories.
2. Trainingstartswithan___________________analysis.
1.3 Managementrolesandskills
ManagerialRoles
AccordingtoMintzberg(1973),managerialrolesareasfollows:
1. Informationalroles
2. Decisionalroles
3. Interpersonalroles
1.Informationalroles:Thisinvolvestheroleofassimilatinganddisseminatinginformationasand
whenrequired. Followingarethemainsubroles,whichmanagersoftenperform:
a. Monitorcollectinginformationfromorganizations,bothfrominsideandoutsideofthe
organization
b. Disseminatorcommunicatinginformationtoorganizationalmembers
c. Spokespersonrepresentingtheorganizationtooutsiders
2.Decisionalroles:Itinvolvesdecisionmaking.Again,thisrolecanbesubdivided
intothefollowing:
a. Entrepreneurinitiatingnewideastoimproveorganizationalperformance
b. Disturbancehandlerstakingcorrectiveactiontocopewithadversesituation
c. Resourceallocatorsallocatinghuman,physical,andmonetaryresources
d. Negotiatornegotiatingwithtradeunions,oranyotherstakeholders
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3.Interpersonalroles:Thisroleinvolvesactivitieswithpeopleworkingintheorganization.This
issupportiveroleforinformationalanddecisionalroles.Interpersonalrolescanbecategorized
underthreesubheadings:
a. FigureheadCeremonialandsymbolicrole
b. Leadershipleadingorganizationintermsofrecruiting,motivatingetc.
c. Liaisonliasoningwithexternalbodiesandpublicrelationsactivities.
ManagementSkills
Katz(1974)hasidentifiedthreeessentialmanagementskills:technical,human,andconceptual.
Technical skills: The ability is to apply specialized knowledge or expertise. All jobs require some
specializedexpertise,andmanypeopledeveloptheirtechnicalskillsonthejob.Vocationalandon
thejobtrainingprogramscanbeusedtodevelopthistypeofskill.
HumanSkill:Thisistheabilitytoworkwith,understandandmotivateotherpeople(bothindividually
and a group). This requires sensitivity towards others issues and concerns. People, who are
proficient in technical skill, but not with interpersonal skills, may face difficulty to manage their
subordinates.ToacquiretheHumanSkill,itispertinenttorecognizethefeelingsandsentimentsof
others,abilitytomotivateotherseveninadversesituation,andcommunicateownfeelingstoothers
inapositiveandinspiringway.
ConceptualSkill:Thisisanabilitytocriticallyanalyze,diagnoseasituationandforwardafeasible
solution.Itrequirescreativethinking,generatingoptionsandchoosingthebestavailableoption.
1. Ceremonialandsymbolicroleofamanageriscalled__________________.
2. Vocationalandonthejobtrainingprogramscanbeusedtodevelop_______________skill.
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1.4 Effectivevs.SuccessfulManagerialActivities
Luthans(1988),onthebasisofhisstudy,foundthatallmanagersengageinfourmanagerial
activities.
1. Traditional management This activity consists of planning, decision making, and

controlling. The average manager spent 32 percent of his or her time performing this
activity,whereassuccessfulmanagersspend13%andeffectivemanagersspend13%of
theirtimeinthisactivity.
2. CommunicationThisactivityconsistsofexchangingroutineinformationandprocessing
paperwork. The average manager spent 29 percent of his or her time performing this
activitywhilesuccessfulmanagerspends28%andeffectivemanagersspend44%oftheir
timeinthisactivity.
3. Human resource managementThis activity consists of motivating, disciplining,

managingconflict,staffing,andtraining.Theaveragemanagerspent20percentofhisor
her time performing this activity, while successful manager spends 11% and effective
managersspend26%oftheirtimeinthisactivity.
4. NetworkingThisactivityinvolvessocializing,politicking,andinteractingwithoutsiders.
Theaverage manager spent 19percent of hisor hertimeperformingthisactivity, while
successfulmanagerspends48%andsuccessfulmanagesspend11%oftheirtimeinthis
activity.
It was found that successful managers spent more time and effort in socializing, interacting and
networking.Theydidnotspendmuchtimetothetraditionalmanagementactivitiesortothehuman
resourcemanagementactivities(Luthans,1988).
13
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1. Theaveragemanagerspent__________percentofhisorhertimeperformingtraditional
management.
2. Effective managers spend __________percent of their time in human resource
management.
1.4 Summary
organizationsworkmoreeffectively(Robbins,2003).Anaffectiveandefficientmanagershouldfocus
ontwokeyresults.Thefirstistaskperformancethequalityandquantityoftheworkproducedor
theservicesprovidedbytheworkunitasawhole.Thesecondisjobsatisfactionhowpeoplefeel
about their work and the work setting. management functions have been grouped into four
categories:planning,organizing,leadingandcontrolling.Planninginvolvestheprocessofdefining
goals, establishing strategies for achieving these goals, and developing plans to integrate and
coordinate activities. Every organization needs to plan for change in order to reach its set goal.
Effectiveplanningenablesanorganizationadapttochangebyidentifyingopportunitiesandavoiding
problems.Itprovidesthedirectionfortheotherfunctionsofmanagementandforeffectiveteamwork.
Planningalsoenhancesthedecisionmakingprocess.Alllevelsofmanagementengageinplanning
in their own way for achieving their preset goals. Organizing involves designing, structuring, and
coordinatingthe work components toachieve organizational goal. It is theprocess of determining
whattasksaretobedone,whoistodo,howthetasksaretobegrouped,whoreportstowhom,and
wheredecisionsare to be made. A key issue in accomplishing the goals identified in theplanning
process is structuring the work ofthe organization. Organizationsaregroupsof people, with ideas
andresources,workingtowardcommongoals.Thepurposeoftheorganizingfunctionistomakethe
bestuseoftheorganization'sresourcestoachieveorganizationalgoals.Organizationalstructureis
the formal decisionmaking framework by which job tasks are divided, grouped, and coordinated.
Formalizationisanimportantaspectofstructure.Itistheextenttowhichtheunitsoftheorganization
are explicitly defined and its policies, procedures, and goals are clearly stated. It is the official
organizational structure conceived and built by top management. The formal organization can be
14
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seenandrepresentedinchartform.Anorganizationchartdisplaystheorganizationalstructureand
showsjobtitles,linesofauthority,andrelationshipsbetweendepartments.
Leadinginvolvesteambuilding,consensusbuilding,selectingandtraining.Anorganizationhasthe
greatest chance of being successful when all of the employees work toward achieving its goals.
Since leadership involves the exercise of influence by one person over others, the quality of
leadership exhibitedby supervisors is a criticaldeterminant oforganizational success. Controlling
involves monitoring the employees behavior and organizational processes and take necessary
actionstoimprovethem,ifneeded.Controlistheprocessthroughwhichstandardsforperformance
of people and processes are set, communicated, and applied. Effective control systems use
mechanismstomonitoractivitiesandtakecorrectiveaction,ifnecessary. AccordingtoMintzberg(
1973), managerial roles are: Informational roles, Decisional roles and Interpersonal roles. Katz
(1974)hasidentifiedthreeessentialmanagementskills:technical,human,andconceptual.Luthans
(1988) found that all managers engage in four managerial activities: (i) Traditional management
Thisactivityconsistsofplanning,decisionmaking,andcontrolling,(ii)CommunicationThisactivity
consists of exchanging routine information and processing paperwork, (iii) Human resource
managementthis activity consists of motivating, disciplining, managing conflict, staffing, and
training, and (iv) Networkingthis activity involves socializing, politicking, and interacting with
outsiders.
Terminalquestions
1. Discussthefourmanagementfunctionsinbrief.
2. WhatdoyoumeanbySWOTanalysis? Whyisitrequiredbyamanager?
3. Discussthreeleadershipfunctionsofamanager.
4. BasedonKatzsproposition,brieflydiscustheessentialmanagerialskills.
AnswertoSelfAssessmentQuestions
1. Four
2. Organization
15
ManagementProcess
Unit1
1. Figurehead
2. Technical
1. 32
2. 26
AnswertoTerminalQuestions
1. Refersection1.2
2. Refersection1.2
3. Refersection1.2
4. Refersection1.3
16
Unit2
Unit2
Structure
2.1
Introduction
Objectives
2.2
DefinitionsofOB
2.3
HistoricalevolutionofOBasadiscipline
2.4
ContributingDisciplinestotheOBfield
2.5Summary
TerminalQuestions
AnswertoSAQsandTQs
2.1 Introduction
InordertobeeffectiveorganizationsneedtodeveloptheirinterpersonalorpeopleskillsAccordingto
Robbins( 2003), Organizational behavior (OB) is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within an organization, then applies that
knowledgetomakeorganizationsworkmoreeffectively.Specifically,OBfocusesonhowtoimprove
productivity, reduce absenteeism and turnover, and increase employee citizenship and job
satisfaction. An organization is more than a formal arrangement of functions, more than an
organization chart, more than a vision statement, more than a set of accounts. An organization
consistsofpeopleandsoitisalsoasocialsystem.Thefieldoforganizationalbehavior(OB)draws
primarily from the behavioral science disciplines of psychology, social psychology, and cultural
anthropology. The areas on which OB focuses are individuals who will often be working within
groups, which themselves work within organizations, as well as all the interrelationships between
them. Some of the specific themes embraced by OB are personality theory, attitudes and values,
motivation and learning, interpersonal behavior, group dynamics, leadership and teamwork,
organizational structure and design, decisionmaking, power, conflict, and negotiation. Some OB
17
Unit2
thinkersgofurtherandsuggestthatthebehaviorwithintheorganizationhastobeviewedpartlyin
thewidercontextoftheoutsideworldseffectontheorganizationanditshumanresources,missions,
objectives,andstrategies.
Learningobjectives
1. HistoricalevolutionofOBasadiscipline
2. ContributingDisciplinestotheOBfield
2.2 DefinitionsOfOB
Buchanan and Huczynski (1997) have defined Organizations as social arrangements, constructed
bypeoplewhocanalsochangethem.Organizationscanberepressiveandstifling,buttheycanalso
be designed to provide opportunities for selffulfillment and individual expression. The point is that
humanconsequencesdependonhoworganizationsaredesignedandrun.Barnard(1938)defined
Organizations as system of cooperative activities and their coordination requires something
intangible and personal that is largely a matter of personal relationships. There are a number of
definitions that we can draw on to illuminate and deepen our understanding of the concept of
organizationalbehavior.Oneoftheearliest,andcertainlyoneofthemostsuccinctdefinitions,comes
from Pugh, (1971) for whom, OB is concerned with the study of the structure, functioning and
performance of organizations, and the behavior of groups and individuals within them. Ivancevich
and Matteson, (1998) in their book Organizational Behavior and Management, offers a broader
definition. They opine that OB is about the study of human behavior, attitudes and performance
withinanorganizationalsettingdrawingontheory,methods,andprinciplesfromsuchdisciplinesas
psychology, sociology, and cultural anthropology to learn about individual perception, values,
learning capabilities, and actions while working with groups and within the total organization
analyzingtheexternalenvironmentseffectontheorganizationanditshumanresources,missions,
objectivesandstrategies.
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Unit2
WhatemergesfromthesetwodefinitionsisaviewofOBas:
1. Awayofthinking
2. Aninterdisciplinaryfield
3. Havingadistinctlyhumanisticoutlook
4. Performanceoriented
5. Seeingtheexternalenvironmentascritical
6. Usingscientificmethod
7. Havinganapplicationsorientation
Levelsofanalysis:
Wood (1997) provides a useful model for exploring behavioral events. He suggests that different
levels of analysis can be applied when examining the significance of an organizational issue. He
proposeseight,namely:
1.Individual
2.Team
3.Intergroup
4.Organizational
5.Interorganizational
6.Societal
7.International
8.Global.
Thebasicissueisthatthelevelofexplanationthatonechooses,determinestheviewofthecauses
ofaneventorproblem.Italsoaffectstheactionsthatonetakes,andthesolutionsthatoneseeks.In
anorganization,inappropriateinterventionatthewronglevelcanmakeaproblemworseratherthan
better.
Threepointsareimportantinthisregard:
Peopletend to pick theirfavorite level of analysis to explain events, and then behave accordingly.
Thisisoftenparticularlytrueofexternalconsultantsbroughtintoperformaquickfix.
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Peoplearemostfamiliarwith,andoftenprefer,explanationsattheindividuallevelofbehavior.Trying
to change people by sending them on a training course is simpler than changing structures or
upgrading technology. However, such explanations are often too simplistic, inaccurate, or
incomplete. It may not solve organizational problems, nor provide the base for creating self
sufficiencyandsustenance,particularlyinacompetitiveandvolatilemarket.
Asageneralprinciple,anyorganizationalproblemcanbeusefullyanalyzedatanincreasinglyhigher
levelofabstraction.Byconsideringaproblemprogressivelyattheindividual,group,intergroup,and
organizationallevels,adeeperunderstandingofitscausescanbegained.
Asaresult,thetoolsneededtotackletheproblemcanbechosenmoreprecisely,andappliedmore
effectively. Looking at a problem systemically will always yield a better understanding than simply
leaping in with fixed preconceptions. Therefore a contingency approach is what is now preferred
ratherthananyabsolutesolutionsinOB.
1. BuchananandHuczynski(1997)havedefinedOrganizationsas_________.arrangements
2. Barnard(1938)definedOrganizationsassystemof________________activities.
3. OBis________________field.
2.3 HistoricalEvolutionOfOBAsADiscipline
AlargenumberofpeoplehavecontributedtothegrowthofOBasadiscipline.Themostimportant
oneshavebeendescribedbelow:
A.EarlyTheorists
AdamSmithsdiscussionsintheWealthofnationspublishedin1776statedthatorganizationsand
society would reap from the division of labor. He concluded that division of labor increased
productivityby raising each workers skill and dexterity, by saving timeother wise lost in changing
tasks.Thedevelopmentofassemblylineproductionprocessintheearly20th centurywasobviously
stimulated by the economic advantages of work specialization (arising out of division of labor) as
statedintheworkofSmith.
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Unit2
TheothersignificantworkwhichinfluencedthisphilosophywasthatoftheworkofCharlesBabbage
in1832titledOntheEconomyofMachineryandManufactures.HeaddedthefollowingtoSmithslist
ofadvantagesthatcanbeaccruedfromdivisionoflabor:
1. Itreducesthetimeneededtolearnajob
2. Reducedwastageofmaterialduringthelearningprocess
3. Allowedattainmentofincreasedskilllevels
4. Carefulmatchofpeoplesskillsandphysicalabilitieswithspecifictasks
Thusinthewritingsofthesewritersthebenefitsofdivisionoflaborwerebeinghighlightedwherethe
maximumemphasiswasonraisingproductivityandminimizingwastageofresourcesandtime.Very
littlewerenoconsiderationwasgiventowardsthehumanelementsintheworkplace.
B.TheClassicalEra
Weseethistrendtocontinueinwhatiscalledastheclassicalerawhichcoverstheperiodbetween
1900 to mid 1930s. the first general theories of management began to evolve and the main
contributorsduringthiserawereFrederickTaylor,HenriFayol,MaxWeber,MaryparkerFolletand
ChesterBarnard.
FrederickTaylorsmainemphasiswasonfindingonebestwayofdoingeachjob. Hestressedon
selectingtherightpeopleforthejob,trainthemtodoitpreciselyinonebestway. Hefavoredwage
plans to motivate the workers. His scientific principles of management stressed the following
principles:
1. Shift all responsibility for the organization of work from the worker to the manager managers
shoulddoallthethinkingrelatingtotheplanninganddesignofwork,leavingtheworkerswiththe
taskofimplementation.
2. Use scientific methods to determine the most efficient way of doing work assign the workers
taskaccordingly,specifyingtheprecisewayinwhichtheworkistobedone.
3. Selectthebestpersontoperformthejobthusdesigned.
4. Traintheworkertodotheworkefficiently.
21
Unit2
5. Monitorworkerperformancestoensurethatappropriateworkproceduresarefollowedandthat
appropriateresultsareachieved.
Taylorwasoneofthefirsttoattempttosystematicallyanalyzehumanbehavioratwork.Heinsisted
theuseoftimeandmotionstudyasameansofstandardizingworkactivities.Hisscientificapproach
calledfordetailedobservationandmeasurementofeventhemostroutinework,tofindtheoptimum
modeofperformance.
The results were dramatic, with productivity increasing significantly. With passing time, new
organizationalfunctionslikepersonnelandqualitycontrolwerecreated.Ofcourse,inbreakingdown
eachtasktoitssmallestunittofindwhatTaylorcalledtheonebestwaytodoeachjob,theeffect
wastoremovehumanvariability.Hencehelaythegroundforthemassproductiontechniquesthat
dominatedmanagementthinkinginthefirsthalfofthetwentiethcentury.
HenriFayol,aminingengineerandmanagerbyprofession,definedthenatureandworkingpatterns
ofthetwentiethcenturyorganizationinhisbook,GeneralandIndustrialManagement,publishedin
1916.Init,helaiddownwhathecalled14principlesofmanagement.Thistheoryisalsocalledthe
AdministrativeTheory. Theprinciplesofthetheoryare:
1.Divisionofwork:tasksshouldbedividedupwithemployeesspecializinginalimitedsetoftasks
sothatexpertiseisdevelopedandproductivityincreased.
2. Authority and responsibility: authority is the right to give orders and entails enforcing them with
rewardsandpenaltiesauthorityshouldbematchedwithcorrespondingresponsibility.
3. Discipline: this is essential for the smooth running of business and is dependent on good
leadership,clearandfairarguments,andthejudiciousapplicationofpenalties.
4. Unity of command: for any action whatsoever, an employee should receive orders from one
superioronlyotherwiseauthority,discipline,order,andstabilityarethreatened.
5.Unityofdirection:agroupofactivitiesconcernedwithasingleobjectiveshouldbecocoordinated
byasingleplanunderonehead.
6. Subordination of individual interest to general interest: individual or group goals must not be
allowedtooverridethoseofthebusiness.
22
Unit2
7. Remuneration of personnel: this may be achieved by various methods but it should be fair,
encourageeffort,andnotleadtooverpayment.
8.Centralization:theextenttowhichordersshouldbeissuedonlyfromthetopoftheorganizationis
aproblemwhichshouldtakeintoaccountitscharacteristics,suchassizeandthecapabilitiesofthe
personnel.
9. Scalar chain (line of authority): communications should normally flow up and down the line of
authority running from the top to the bottom of the organization, but sideways communication
betweenthoseofequivalentrankindifferentdepartmentscanbedesirablesolongassuperiorsare
keptinformed.
10.Order:bothmaterialsandpersonnelmustalwaysbeintheirproperplacepeoplemustbesuited
totheirpostssotheremustbecarefulorganizationofworkandselectionofpersonnel.
11.Equity:personnelmustbetreatedwithkindnessandjustice.
12. Stability of tenureof personnel: rapid turnover of personnel should be avoided because of the
timerequiredforthedevelopmentofexpertise.
13.Initiative:allemployeesshouldbeencouragedtoexerciseinitiativewithinlimitsimposedbythe
requirementsofauthorityanddiscipline.
14.Espritdecorps:effortsmustbemadetopromoteharmonywithintheorganizationandprevent
dissensionanddivisiveness.
The management function, Fayol stated, consisted of planning, organizing, commanding, co
coordinatingandcontrolling.Manypracticingmanagers,eventoday,listthesefunctionsasthecore
oftheiractivities.Fayolwasalsooneofthefirstpeopletocharacterizeacommercialorganizations
activities into its basic components. He suggested that organizations could be subdivided into six
mainareasofactivity:
1. Technical
2. Commercial
3. Financial
4. Security
5. Accounting
6. Management.
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In defining the core principles governing how organizations worked and the contribution of
managementtothatprocess,Fayollaiddownablueprintthathasshapedorganizationthinkingfor
almostacentury.
Max Weber developed a theory based on authority relations and was he a pioneer in looking at
managementandOBfromastructuralviewpoint.Histheoryisalsoknownasbureaucratictheoryin
management. he described an ideal types of organization and called it a bureaucracy. This wasa
system marked bydivision of labor, a clearly definedhierarchy, detailed rules and regulationsand
impersonal relationships. He wanted this ideal types construct to be taken as a basis for creating
organizations in real world. The detailed features of Webers ideal bureaucratic structure are a
follows:
1. Jurisdictional areas are clearly specified, activities are distributed as official duties (unlike
traditional form where duties delegated by leader and changed at any time).
2.Organizationfollowshierarchicalprinciplesubordinatesfollowordersorsuperiors,buthave
rightofappeal(incontrasttomorediffusestructureintraditionalauthority).
2. Intention,abstractrulesgoverndecisionsandactions.Rulesarestable,exhaustive,andcanbe
learned.Decisionsarerecordedinpermanentfiles(intraditionalformsfewexplicitrulesorwritten
records).
3. Meansofproductionoradministrationbelongtooffice.Personalpropertyseparatedfromoffice
property.
4. Officials are selected on basis of technical qualifications, appointed not elected, and
compensatedbysalary.
5. Employmentbytheorganizationisacareer.Theofficialisafulltimeemployeeandlooksforward
toalifelongcareer.Afteratrialperiodtheygettenureofpositionandareprotectedfromarbitrary
dismissal.
C.TheHumanRelationsMovement
SincetheindustrialistsoftheearlydecadesofthetwentiethcenturyfollowedTaylorsleadandput
theemphasisonefficiency,itwassomeyearsbeforeanysignificantattentionwaspaidtotheneeds
and motivations of that other major factor involved in the work process the workers. One of the
24
Unit2
earlypioneersofaviewthatactuallypeoplewerecentraltotheworldofbusinesswasMaryParker
Follett.WiththisstartedthebeginningofwhatmaybetermedastheHumanrelationsMovementas
contributortothefieldofOB
Folletbelievedthatorganizationsshouldbebasedonagroupethicratherthanonindividualism.The
managersworkwastoharmonizeandcoordinategroupefforts.Managersandworkersneedtolook
at each other as partners. Therefore managers should rely more on workers expertise and
knowledge than on formal authority of their position to lead their subordinates. Thus in her writing
onecantracetheimportanceofmotivationandgrouptogetherness,somuch requiredinmodern
dayorganizationalsituations.
AnothermajorinfluenceinthehumanrelationsmovementcamefromtheworkofChesterBarnard.
Barnard viewed organizations as consisting of people who have interacting social relationships.
Barnardviewedorganizationalsuccessintermsoffosteringcooperationfromvariousstakeholders
such as, employees and others like customers, investors, suppliers and other external
constituencies.Thusirrespectiveofexcellentproductionsystems,Barnardemphasizedtheneedfor
boundary spanning activities and development of skills and motivation of employees for
organizationaleffectivenessandsuccess.
Elton Mayo is known as the founder of the Human Relations Movement, and is known for his
research including the Hawthorne Studies, and his book The Social Problems of an Industrialised
Civilization (1933). The researchhe conducted under the HawthorneStudiesofthe1930s showed
thesignificanceofgroupsinaffectingthebehaviorofindividualsatwork.However,itwasnotMayo
who conducted the practical experiments but his employees Roethlisberger and Dickinson. This
helped him to make certain deductions about how managers should behave. He carried out a
number of investigations to look at ways of improving productivity, for example changing lighting
conditionsintheworkplace.
Hisfindingswerethatworksatisfactiondependedtoalargeextentontheinformalsocialpatternof
theworkgroup.Whereevernormsofcooperationandhigheroutputwereestablisheditwasduetoa
feelingofimportance.Physicalconditionsorfinancialincentiveshadlittlemotivationalvalue.People
25
Unit2
willformworkgroupsandthiscanbeusedbymanagementtobenefittheorganization.Heconcluded
thatpeople'sworkperformanceisdependentonbothsocialissuesandjobcontent.Hesuggesteda
tensionbetweenworkers''logicofsentiment'andmanagers''logicofcostandefficiency'whichcould
leadtoconflictwithinorganizations.
SummaryofMayo'sBeliefs:
Individual workers cannot be treated in isolation, but must be seen as members of a group.
Monetaryincentivesandgoodworkingconditionarelessimportanttotheindividualthantheneedto
belong to a group. Informal or unofficial groups formed at work have a strong influence on the
behaviorofthoseworkersinagroupManagersmustbeawareofthese'socialneeds'andcaterfor
themtoensurethatemployeescollaboratewiththeofficialorganizationratherthanworkagainstit.
Another contributor whose work revolutionized thinking about workplaces was Dale Carnegie.
His book How toWin Friendsand Influence people isa classic which is referredby management
experts even today. His main theme centered on the idea that the way to success was through
winningthecooperationofpeople.Headvised:
1. Tomakeothersfeelimportantthroughasincereappreciationoftheirefforts
2. Seektomakeagoodimpression
3. Winpeopletoyourwayofthinkingbylettingothersdothetalking,beingsympatheticandnever
tellingothersthattheyarewrong
4. Changepeoplebypraisingtheirgoodtraitsandgivingchancetootherstosavetheirface
ThenextcontributorwhoinfluencedthehumanaspectsofmanagementinworkplacewasAbraham
Maslow. Maslowproposedtheneedhierarchytheory(physiological,safety,socialesteemandself
actualizationneeds)andstatedthateachstepinthehierarchymustbesatisfiedbeforethenextcan
beactivatedand once a need was substantiallysatisfied, it no longer motivated an individual.Self
actualization was the ultimate goal of human existence. Managers who accepted this hierarchy
theory attempted to alter the organization and management practices to reduce barriers to
employeesselfactualization
Douglas McGregor wasanother contributor to thehuman relations movement. Heformulated two
sets of assumptions Theory X and Theory Y about human nature. Theory X posited a negative
26
Unit2
viewofpeoplestatingthatthiscategoryhavelittleambition,dislikework,wanttoavoidresponsibility
and need to be closely directed at workplace. Theory Y category on the other hand proposed a
positive view of people stating that they can exercise self direction, assume responsibility and
consideredworkasanaturalactivity.McGregorpersonallybelievedthatTheoryYdescribedbestthe
natureofpeopleatworkandthereforeformthebasisofallmanagementpracticesinorganizations.
Managers should give freedom to their subordinates in order to unleash their full creative and
productivepotential
D.BehavioralScienceTheorists
These theorists engaged in objective research of human behavior in organizations. Some of the
majortheoristswhocontributedtothegrowthofOBasadisciplinearebrieflygivenbelow.
B. F. Skinner His research on conditioning (classical and operant) and behavior modification
influencedthedesignoforganizationtrainingprogramsandrewardsystems.Behaviorisafunction
ofconsequenceaccordingtoSkinnerandhestatedthatpeopleengageinadesiredbehavioronlyif
theyarerewardedforitandlesslikelytoberepeatedifanindividualisnotrewardedorpunishedfor
it
DavidMcClellandhisworkhashelpedorganizationstomatchpeoplewithjobsandinredesigning
jobsforhighachieversinordertomaximizetheirmotivationpotential.Forexample,peoplewhohave
undergoneachievement training in India,havebeenfoundto work longer hours, initiate more new
businessventures,madegreaterinvestmentsinproductiveassetsthanthosewhodidnotundergo
suchtraining
Fred Fiedler work in thefield of leadershiphas contributed immensely to the growthofOBasa
discipline. His work on the subject is important since it emphasized the situational aspects of
leadershipandattemptedtodevelopacomprehensivetheoryofleadershipbehavior
Fredrick Herzberg his primary interest was in finding out answer to the question: what do
individuals want from their jobs? He concluded from his study that people preferred jobs that
provided opportunities for recognition, achievement, responsibility and growth. Only providing the
27
Unit2
hygienefactorswereinsufficienttomotivatepeopleinworkplaces.ThisworkissignificanttoOBas
ithashelpedinenrichingjobsandthequalityofworklifeinmodernorganizations.
E.OBispresenttimes
What is realized today is that no one theory by itself can improve organizational functioning and
effectiveness. What, therefore, is suggested is a contingency approach.While the 1960s and 70s
witnessed the development of new theories the efforts since then has been on refining existing
theories, clarifying previous assumptions and identifying significant contingency variables. The
emphasistodayisonunderstandingthesituationalfactorsandhowtheyinfluenceabehaviorpattern
ofindividualsinorganizationalcontexts.
Landmarkpublicationsonorganizationalbehavior
1911:FrederickTaylor:PrinciplesofScientificManagement
1916:HenriFayol:GeneralandIndustrialManagement
1924:MaxWeber:TheTheoryofSocialandEconomicOrganization
1933:EltonMayo:HumanProblemsofanIndustrialCivilization
1938:ChesterBarnard:TheFunctionsoftheExecutive
1954:AbrahamMaslow:MotivationandPersonality
1956:WilliamWhyte:TheOrganizationMan
1959:FrederickHerzberg:TheMotivationtoWork
1960:DouglasMcGregor:TheHumanSideofEnterprise
1964:RobertBlakeandJaneMouton:TheManagerialGrid
1973:HenryMintzberg:TheNatureofManagerialWork
1978:ChrisArgyrisandDonaldSchon:OrganizationalLearning
1979:RegRevans:ActionLearning
1981:RichardPascaleandAnthonyAthos:TheArtofJapaneseManagement
1982:TomPetersandBobWaterman:InSearchofExcellence
1984:MeredithBelbin:ManagementTeams
1985:EdgarSchein:OrganizationalCultureandLeadership
1986:GarethMorgan:ImagesofOrganization
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1989:CharlesHandy:TheAgeofUnreason
1990:PeterSenge:TheFifthDiscipline
1990:RichardPascale:ManagingontheEdge
1993:JamesChampyandMikeHammer:ReengineeringtheCorporation
1995:KarlWeick:SensemakinginOrganizations
1997:AriedeGeus:TheLivingCompany
1997:ThomasStewart:IntellectualCapital
2000:RichardPascale:SurfingtheEdgeofChaos
2001:DanielPink:FreeAgentNation
1. AdamSmithstatedthatorganizationsandsocietywouldreapfromthe__________oflabor
2. Taylorhasproposed____________principlesofmanagement.
3. Fayolhasproposed_______________theory.
2.4 ContributingDisciplinesToTheOBField
Organizational behavior is an applied behavioral science that is built upon contributions from a
number of behavioral disciplines. The main areas are psychology, sociology, social psychology,
anthropology,andpoliticalscience.
Psychology:
Psychology is the science that attempts to measure, explain, and at times change thebehavior of
humans and other animals. Early industrial/organizational psychologists were concerned with
problems of fatigue, boredom, and other factors relevant to working conditions that could disrupt/
impedeefficientworkperformance.Morerecently,theircontributionshavebeenexpandedtoinclude
learning,perception,personality,emotions,training,leadershipeffectiveness,needsandmotivational
forces,jobsatisfaction,decisionmakingprocesses,performanceappraisals,attitudemeasurement,
employeeselectiontechniques,workdesign,andjobstress.
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Unit2
Sociology
Sociologists study the social system in which individuals fill their roles that is, sociology studies
people in relation to theirfellowhumanbeings.Their significant contribution to OB is through their
studyofgroupbehaviorinorganizations,particularlyformalandcomplexorganizations.
SocialPsychology
Socialpsychologyblends the conceptsofpsychology and sociology. Itfocuseson the influenceof
peopleononeanother.Themajorchallengedealswiththeissueofhowtoimplementitandhowto
reducebarrierstoitsacceptance.
Anthropology
Anthropology is the study of societies to learn about human beings and their activities.
Anthropologistsworkonculturesandenvironmentsforexample,theyhaveaidedinunderstanding
differences infundamental values,attitudes,and behavior amongpeople indifferent countries and
withindifferentorganizations.
PoliticalScience
Political science studies the behavior of individuals and groups within a political environment. It
focusesonareas,suchas,conflict,intraorganizationalpoliticsandpower.
1. _______________ is the science that attempts to measure, explain, and at times change the
behaviorofhumansandotheranimals.
2. _______________blendstheconceptsofpsychologyandsociology.
3. Political science studies the behavior of individuals and groups within a ________________
environment.
2.5 Summary
organizationsworkmoreeffectively.Specifically,OBfocusesonhowtoimproveproductivity,reduce
absenteeismandturnover,andincreaseemployeecitizenshipandjobsatisfaction.Anorganization
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Unit2
ismorethanaformalarrangementoffunctions,morethananorganizationchart,morethanavision
statement,morethanasetofaccounts.Anorganizationconsistsofpeopleandsoitisalsoasocial
system. The field of organizational behavior (OB) draws primarily from the behavioral science
disciplines of psychology, social psychology, and cultural anthropology. The areas on which OB
focuses are individuals who will often be working within groups, which themselves work within
organizations, as well as all the interrelationships between them. Some of the specific themes
embracedbyOBarepersonalitytheory,attitudesandvalues,motivationandlearning,interpersonal
behavior,groupdynamics,leadershipandteamwork,organizationalstructureanddesign,decision
making, power, conflict,andnegotiation. OB is an interdisciplinaryfield, ithasdistinctly humanistic
outlook, it is performance oriented, it considers external environment as critical, it uses scientific
method and it has an applications orientation.Wood (1997) provides a useful model for exploring
behavioralevents.Hesuggeststhatdifferentlevelsofanalysiscanbeappliedwhenexaminingthe
significance of an organizational issue. He proposes eight, namely: Individual, Team, Intergroup,
Organizational, Interorganizational, Societal, International, and Global. A large number of people
havecontributedtothegrowthofOBasadiscipline.Someofthemostimportantworkshavebeen
done by Adam Smith, Frederick Taylor, Henri Fayol, Max Weber, Mary parker Follet, Abraham
Maslow,B.F.Skinner,tonameafew. Organizationalbehaviorisanappliedbehavioralsciencethat
isbuiltuponcontributionsfromanumberofbehavioraldisciplines.Themainareasarepsychology,
sociology,socialpsychology,anthropology,andpoliticalscience.
TerminalQuestions
1. DiscussTaylorsscientificprinciplesofmanagement.
2. ExplainFayolsadministrativetheory.
3. WhatisWebersidealbureaucraticstructure?
4. SummarizeMayobelief.
AnswerstoSelfAssessmentQuestions
1. Social
2. Cooperative
3. Interdisciplinary
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Unit2
1. Division
2. Scientific
3. Administrative
1. Psychology
2. Socialpsychology
3. Political
AnswerstoTerminalQuestions
1. Refersection2.3
2. Refersection2.3
3. Refersection2.3
4. Refersection2.3
32
FoundationOfOrganizationBehavior
Unit3
Unit3
FoundationOfOrganizationalBehavior
Structure
3.1 Introduction
Objectives
3.2 Biographiccharacteristics
3.3 Ability
3.4 Summary
TerminalQuestions
AnswertoSAQsandTQs
3.1 Introduction
Organizational Behavior emphasizes on intellectual capital as represented by the sum total of

knowledge,expertise,and dedicationofan organizations workforce. It recognizes that even in the
age of high technology, people are the indispensable human resources whose knowledge and
performance advance the organizations purpose, mission, and strategies. Only through human
effortscanthegreatadvantagesberealizedfromothermaterialresourcesoforganizations,suchas,
technology, information, raw materials, and money. A Fortune survey (1998) of Americas most
admiredfirmsreportedthatthesinglebestpredictorofoverallsuccesswasacompanysabilityto
attract,motivate,andretaintalentedpeople.
Learningobjectives
1. BiographicCharacteristics
2. Ability
33
Unit3
3.2 Biographiccharacteristics
Finding and analyzing the variables that have an impact on employee productivity, absence,
turnover,andsatisfactionisoftencomplicated.Manyoftheconceptsmotivation,orpower,politics
or organizational cultureare hard to assess. Other factors are more easily definable and readily
availabledata that can be obtained from an employees personnel file and would include
characteristics,suchas:
1. Gender
2. Age
3. Maritalstatus
4. Tenure.
1.Gender
Menandwomenexhibitnoconsistentdifferencesintheirproblemsolvingabilities,analyticalskills,
competitivedrive,motivation,learningability,orsociability.However,womenarereportedtobemore
conforming and to have lower expectations of success than men do. And, womens absenteeism
ratestendtobehigherthanthoseofmen.
2.Age
The research findings concerning age are important given the aging of the workforce. People 50
years old and older account for 85 percent of the projected labor force growth between 1990 and
2005 (American Association of Retired Persons, 1995). Older workers are susceptible to being
stereotyped as inflexibleand undesirable in other ways. In some cases, workersas youngas age
fortyareconsideredtobeoldandcomplainthattheirexperienceandskillsarenolongervalued.
Ontheotherhand,smallbusinessesinparticular,tendtovalueolderworkersfortheirexperience,
stability and low turnover. Research is consistent with these preferences and also shows lower
avoidableabsences(Mayrand,1992).
3.MaritalStatus
There are not enough studies to draw any conclusions about the effect of marital status on job
productivity.Researchconsistentlyindicatesthatmarriedemployeeshavefewerabsences,undergo
lessturnover,andaremoresatisfiedwiththeirjobsthanaretheirunmarriedcoworkers(Garrison&
34
Unit3
Muchinsky,1977).Furtherresearchneedstobeconductedontheotherstatuses,besides,singleor
married,suchas,divorce,domesticpartnering,etc
4.Tenure
Theissueoftheimpactofjobseniorityonjobperformancehasbeensubjectof misconceptionsand
speculations. Extensive reviews of the seniorityproductivity relationship have been conducted
(Gordon&Fitzgibbons,1982):
1. Thereisapositiverelationshipbetweentenureandjobproductivity.
2. Thereisanegativerelationshipbetweentenuretoabsence.
3. Tenureisalsoapotentvariableinexplainingturnover.
4. Tenurehasconsistentlybeenfoundtobenegativelyrelatedtoturnoverandhasbeensuggested
asoneofthesinglebestpredictorsofturnover.
5. Theevidenceindicatesthattenureandsatisfactionarepositivelyrelated
1. Womensabsenteeismratestendtobe_________thanthoseofmen.
2.Thereisa_______relationshipbetweentenuretoabsence.
3.3Ability
Abilityreflectsapersonsexistingcapacitytoperformthevarioustasksneededforagivenjoband
includes both relevant knowledge and skills (Cummings & Schwab, 1973). Aptitude represents a
persons capability of learning something. In other words, aptitudes are potential abilities, whereas
abilities are the knowledge and skills that an individual currently possesses. Managers need to
considerbothabilityandaptitudewhileselectingcandidatesforajob.Varioustestsusedtomeasure
mentalaptitudesandabilities.Someoftheseprovideanoverallintelligentquotient(IQ)score(e.g.,
the StanfordBinet IQ Test). Others provide measures of more specific competencies that are
requiredofpeopleenteringvariouseducationalprogramsorcareerfields.Suchtestsaredesignedto
facilitate the screening and selection of applicants for educational programs or jobs. In addition to
mentalaptitudesandabilities,somejobs,suchas,firefightersandpolice,requiretestsforphysical
35
Unit3
abilities. Muscular strengthandcardiovascular enduranceare twoamong the manyphysicalability

dimensions (Hogan, 1991). There must be a fit between specific aptitudes and abilities and job
requirements. If you want to be a surgeon, for instance, and cannot demonstrate good handeye
coordination, there will not be a good abilityjob fit. Such a fit is so important that itforms a core
conceptinmanaginghumanresources.
Individualsoverallabilitiesaremadeupoftwosetsoffactors:intellectualandphysical.
IntellectualAbilities
Intellectualabilitiesarethoserequiredtoperformmentalactivities.
IQ tests are designed to ascertain ones general intellectual abilities. Examples of such tests are
popular college admission tests such as, the SAT, GMAT, and LSAT. The seven most commonly
cited dimensions making up intellectual abilities are: number aptitude, verbal comprehension,
perceptual speed, inductive reasoning, deductive reasoning, spatial visualization, and memory
(Dunnette,1976).Theabilitiesarecategorizedinthefollowingtable:
Description
JobExample
Abilitytodospeedyand
Accountant
Dimension
Numberaptitude
accuratearithmetic
VerbalCommunication
Readwritespeakingability
Seniormanagers
PerceptualSpeed
Identifysimilaritiesand
Investigators
differencesquicklyand
accurately
Inductivereasoning
Logicalsequencedrawing
MarketResearcher
Deductivereasoning
Abilitytouselogicand
Supervisors
assesstheimplicationsof
theargument
SpatialVisualization
Abilitytoimagine
Interiordecorator
Memory
Abilitytoretainandrecall
Salesperson
pastexperience
Rememberingcustomers
name
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Unit3
Jobsdifferinthedemandstheyplaceonincumbentstousetheirintellectualabilities.Areviewofthe
evidencedemonstratesthatteststhatassessverbal,numerical,spatial,andperceptualabilitiesare
validpredictorsofjobproficiencyatalllevelsofjobs.
In this regard, the theory of multiple intelligences was developed by Gardner (1983, 1993). This
theory suggests eight different intelligences to account for a broader range of human potential in
childrenandadults.Ithasbeenclaimedthatourintelligenceorabilitytounderstandtheworldaround
us is complex. Some people are better at understanding some things than others. For some, it is
relatively easy to understand how an automobile works, but it is immensely difficult for some to
understand and use a musical instrument. For others music might be easy but playing football is
difficult.Theseveraldifferentintelligencesarelistedbelow:
1. Linguisticintelligence("wordsmart"):
2. Logicalmathematicalintelligence("number/reasoningsmart")
3. Spatialintelligence("picturesmart")
4. BodilyKinestheticintelligence("bodysmart")
5. Musicalintelligence("musicsmart")
6. Interpersonalintelligence("peoplesmart")
7. Intrapersonalintelligence("selfsmart")
8. Naturalistintelligence("naturesmart")
PhysicalAbilities
Specificphysicalabilitiesgainimportanceindoinglessskilledandmorestandardizedjobs.Research
has identified ninebasic abilities involved in theperformanceofphysicaltasks. Individualsdiffer in
the extent to which they have each of these abilities. High employee performance is likely to be
achievedwhenmanagementmatchestheextenttowhichajobrequireseachofthenineabilitiesand
theemployeesabilities.
37
Unit3
NineBasicPhysicalAbilitiesproposedbyFleishman(1979):
StrengthFactors
Dynamicstrength
Abilitytoexertmuscularforcerepeatedly
orcontinuouslyovertime
Trunkstrength
Abilitytoexertmuscularstrengthusingthe
trunk(particularlyabdominal)muscles
Staticstrength
Abilitytoexertforceagainst
externalobjects
Explosivestrength
Abilitytoexpendamaximumof
energyinoneoraseriesof
explosiveacts
FlexibilityFactors
Extentflexibility
Abilitytomovethetrunkandback
musclesasfaraspossible
Dynamicflexibility
Abilitytomakerapid,repeatedflexing
Movements
OtherFactors
Bodycoordination
Abilitytocoordinatethesimultaneous
actionsofdifferentpartsofthebody
BalanceAbility
Abilitytomaintainequilibriumdespite
forcespullingoffbalance
StaminaAbility
Abilitytocontinuemaximumeffort
requiringprolongedeffortovertime
38
Unit3
TheAbilityJobFit
Employee performance is enhanced when there is a high abilityjob fit. The specific intellectual or
physical abilities required depend on the ability requirements of the job. For example, pilots need
strong spatialvisualization abilities. Directing attention at only the employees abilities, or only the
ability requirements of the job, ignores the fact that employee performance depends on the
interactionofthetwo.Whenthefitispooremployeesarelikelytofail. Whentheabilityjobfitisout
of synchronization becausetheemployeehasabilitiesthatfarexceedtherequirementsofthejob,
performance is likely to be adequate, but there will be organizational inefficiencies and possible
declines in employee satisfaction. Abilities significantly above those required can also reduce the
employees job satisfaction when the employees desire to use his or her abilities is particularly
strongandisfrustratedbythelimitationsofthejob
1.Abilitytodospeedyandaccuratearithmeticiscalled_________aptitude.
2.Interpersonalintelligencemeans____________smart.
3.Abilitytoexertforceagainstexternalobjectsiscalledas_________strength.
3.4 Summary
Organizational Behavior emphasizes on intellectual capital as represented by the sum total of
knowledge,expertise,and dedicationofan organizations workforce. It recognizes that even in the
age of high technology, people are the indispensable human resources whose knowledge and
performance advance the organizations purpose, mission, and strategies. Only through human
effortscanthegreatadvantagesberealizedfromothermaterialresourcesoforganizations,suchas,
technology,information,rawmaterials,andmoney.Findingandanalyzingthevariablesthathavean
impactonemployeeproductivity,absence,turnover,andsatisfactionisoftencomplicated.Manyof
the conceptsmotivation, or power, politics or organizational cultureare hard to assess. Other
factors are more easily definable and readily availabledata that can be obtained from an
employees personnel file and would include characteristics, such as, gender, age, marital status,
andtenure.
Abilityreflectsapersonsexistingcapacitytoperformthevarioustasksneededforagivenjoband
includes both relevant knowledge and skills (Cummings & Schwab, 1973). Aptitude represents a
39
Unit3
persons capability of learning something. In other words, aptitudes are potential abilities, whereas
abilities are the knowledge and skills that an individual currently possesses. Managers need to
considerbothabilityandaptitudewhileselectingcandidatesforajob.Individualsoverallabilitiesare
made up of two sets of factors: intellectual andphysical. Intellectual abilities are those required to
performmentalactivities.Thesevenmostcommonlyciteddimensionsmakingupintellectualabilities
are: number aptitude, verbal comprehension, perceptual speed, inductive reasoning, deductive
reasoning,spatialvisualization,andmemory.Specificphysicalabilitiesgainimportanceindoingless
skilled and more standardized jobs. Research has identified nine basic abilities involved in the
performance of physical tasks. Individuals differ in the extent to which they have each of these
abilities.Highemployeeperformanceislikelytobeachievedwhenmanagementmatchestheextent
towhichajobrequireseachofthenineabilitiesandtheemployeesabilities.Employeeperformance
isenhancedwhenthereisahighabilityjobfit.Thespecificintellectualorphysicalabilitiesrequired
dependontheabilityrequirementsofthejob.
TerminalQuestions
1.Brieflydescribetherelationshipofbiographiccharacteristicswithorganizationalbehavior.
2. Whatisability?explainthemultipleintelligencetheory.
3.Explainthesignificanceofabilityjobfit.
1.Higher
2.Negative
1.Number
2.People
3.Static
1.Refertosection3.2
2.Refertosection3.3
3.Refertosection3.3
40
Learning
Unit4
Unit9
Learning
Structure
4.1 Introduction
Objectives
4.2 Theoriesoflearning
4.3 Shapingbehavior
4.4 Behaviormodification
4.5 Specificorganizationalapplication
4.6 Summary
TerminalQuestions
AnswertoSAQsandTQs
4.1 Introduction
Learningreferstoaprocessthatenhancestheknowledge,skillandattitude(KSA)ofindividuals,to
increase his/her willingness to adopt those newly acquired KSA and to implement them at the
workplace. Such learning should be sustainable and comparatively stable for people and for the
institutions that serves people. Learning definitely includes academic studies and occupational
trainingthroughhighschoolandbeyond.Butitalsoencompassesthephysical,cognitive,emotional
andsocialdevelopmentofchildrenintheearliestyearsoftheirlives.
Learningcanbedefinedasanyrelativelypermanentchangeinbehaviorthatoccursasaresultof
experience(Robbins,2003).
Followingarethecharacteristicsoflearning:
1. First,learninginvolveschange.
2. Second,thechangemustberelativelypermanent.
3. Third,learningisconcernedwithbehavior.
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4. Finally,someformofexperienceisnecessaryforlearning
Learningobjectives
1. Theoriesoflearning
2. Behaviormodification
4.2 TheoriesofLearning
Therearethreetheoriesoflearningnamelyclassicalconditioning,operantconditioning,andsocial
learning
1.Classicalconditioning:
ClassicalConditioningisaformofassociativelearningprocessproposedby Pavlov(1927).This
processinvolvespresentationsofaneutralstimulusalongwithastimulusofsomesignificance.The
neutralstimulusdoesnotleadtoanovertbehavioralresponsefromtheorganism.Thisiscalledas
ConditionedStimulus(CS).Significantstimulusevokesaninnate,oftenreflexive,response.Thisis
calledUnconditionedStimulus(US)andUnconditionedResponse(UR),respectively.IftheCSand
theUSarerepeatedlypaired,eventuallythetwostimulibecomeassociatedandtheorganismbegins
to produce a behavioral response to it. It is the Conditioned Response (CR).Classical conditioning
wasfirstexperimentedbyRussianphysiologist,IvanPavlov,toteachdogstosalivateinresponseto
theringingofabell.Duringhisresearchonthephysiologyofdigestionindogs,Pavlovusedabell
beforegivingfoodtohisdog.Ratherthansimplysalivatinginthepresenceofmeat(aresponseto
foodunconditionedresponse),afterafewrepetitions,thedogstartedtosalivateinresponseto
the bell. Thus, a neutral stimulus (bell) became a conditioned stimulus (CS) as a result of
consistent pairing with the unconditioned stimulus (US meat). Pavlov referred to this learned
relationshipasaConditionedResponse.
2.OperantConditioning:
TheoperantconditioningtheoryisproposedbyB.F.Skinner(1953,1954).Thisisbasedontheidea
that learning is a function of change in overt behavior. Changes in behavior are the result of an
individual's response to stimuli. When a particular StimulusResponse (SR) pattern is reinforced
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Learning
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(rewarded),theindividualisconditionedtorespond.ReinforcementisthekeyelementinSkinner'sS
Rtheory.Areinforcerisanythingthatstrengthensthedesiredresponse.
Principlesofoperantconditioningareasfollows:
1.Behaviorislearned.
2.Behaviorthatispositivelyreinforcedwillreoccur.
3.Informationshouldbepresentedinsmallamountssothatresponsescanbereinforced("shaping")
4. Reinforcements will generalize across similar stimuli ("stimulus generalization") producing
secondaryconditioning.
5.Rewardsaremosteffectiveiftheyimmediatelyfollowthedesiredresponse.
For example, if a subordinate is praised by his boss for looking good in a certain attire, the
subordinateislikelytowearthatattireandpresenthimselfinfrontofboss,especiallywhenheneeds
topleasetheboss.
3.SocialLearning
ThesociallearningtheorywasproposedbyBandura.Itrecognizestheimportanceofobservingand
modelingthebehaviors,attitudes,andemotionalreactionsofothers.AccordingtoBandura(1977),
mosthumanbehaviorislearnedobservationallythroughmodeling:fromobservingothersoneforms
anideaofhownewbehaviorsareperformed,andonlateroccasionsthiscodedinformationserves
as a guide for action. Social learning theory explains human behavior in terms of continuous
reciprocalinteractionbetweencognitive,behavioral,andenvironmentalinfluences.
Sociallearninghasfourprocesses:
1. AttentionalprocessesPeoplelearnfromamodelonlywhentheyrecognizeandpayattention
toitscriticalfeatures.
2. Retention processes A models influence will dependonhow well the individual remembers
themodelsactionaftertheitisnolongerreadilyavailable.
3. Motor reproduction processes After a person has seen a new behavior by observing the
model,thewatchingmustbeconvertedtodoing.
4. Reinforcement processes Individuals will be motivated to exhibit the modeled behavior if

positiveincentivesorrewardsareprovided.
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Principlesofsociallearningareasfollows:
1. The highest level of observational learning is achieved by first organizing and rehearsing the
modeledbehaviorsymbolicallyandthenenactingitovertly.Codingmodeledbehaviorintowords,
labelsorimagesresultsinbetterretentionthansimplyobserving.
2. Individualsaremorelikelytoadoptamodeledbehavior,ifitresultsinoutcomestheyvalue.
3. Individuals are more likely to adopta modeled behavior, if the model is similar to theobserver
andhasadmiredstatusandthebehaviorhasfunctionalvalue
1.ClassicalConditioningisaformofassociativelearningprocessproposedby _________.
2.Theoperantconditioningtheoryisbasedontheideathatlearningisafunctionofchangein
___________behavior
3.Sociallearninghas__________processes
4.3:Shapingbehavior
When a systematic attempt is made to change individuals behaviour by directing their learning in
graduatedsteps,itiscalledshapingbehavior.
TherearefourmethodsofShapingBehavior.Theyareasfollows:
PositivereinforcementThisistheprocessofgettingsomethingpleasantasaconsequenceofa
desired behavior, to strengthen the same behavior. For example, one get a commission, if he/she
achievessalestarget
NegativereinforcementThisistheprocessofhavingarewardtakenawayasaconsequenceofa
undesiredbehavior.Forexample,scholarshipiswithdrawnfromthestudentwhohasnotdonewell
ontheexamination
Punishmentiscausinganunpleasantconditioninanattempttoeliminateanundesirablebehavior.
Thisistheprocessofgettingapunishmentasaconsequenceofabehavior.Example:havingyour
paydockedforlateness
Extinctioneliminating any reinforcement that is maintaining a behavior. So, if a person puts in
extraeffort,butgetsnorecognitionforit,hewillstopdoingit
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Bothpositiveandnegativereinforcementresultinlearning.Theystrengthenaresponseandincrease
theprobabilityofrepetition.Bothpunishmentandextinctionweakenbehaviorandtendtodecrease
itssubsequentfrequency
Schedulesofreinforcement
Thetwomajortypesofreinforcementschedulesare:1)continuousand2)intermittent.
1.AContinuousreinforcementschedulereinforcesthedesiredbehavioreachandeverytimeitis
demonstrated. It is thetraditional reinforcementschedule and is called a continuous reinforcement
schedule.Eachtimethecorrectbehaviorisperformeditgetsreinforced.
2. An Intermittent reinforcement schedule are fixed and variable categories. In an intermittent
schedule,noteveryinstanceofthedesirablebehaviorisreinforced,butreinforcementisgivenoften
enough to make the behavior worth repeating. The intermittent, or varied, form of reinforcement
tendstopromotemoreresistancetoextinctionthandoesthecontinuousform.
Intermittenttechniquesbeplacedintofollowingcategories:
Fixedinterval reinforcement schedulerewards are spaced at uniform time intervals the critical
variableistime,anditisheldconstant.
Variableinterval reinforcementsrewards are distributed in time so that reinforcements are
unpredictable.
In a fixedratio schedule, after a fixed or constant number of responses are given, a reward is
initiated.
Whentherewardvariesrelativetothebehavioroftheindividual,heorsheissaidtobereinforcedon
avariableratioschedule
Forexample,honestypayisfixedintervalreinforcement,andpiecerateisfixedratioreinforcement
scheme.
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Learning
Unit9
Ingeneral,variableschedulestendtoleadtohigherperformancethanfixedschedules.Continuous
reinforcementschedulesmayleadtoearlysatisfactionandbehaviormayweakenwhenreinforcers
are withdrawn. Continuous reinforcers, thus, are appropriate for newly desired, unstable, or low
frequencyresponses.Intermittentreinforcersdonotfolloweveryresponseandthus,theyalsomay
lead to early satisfaction. They are appropriate for stable or highfrequency responses. Variable
intervalschedulesgeneratehighratesofresponseandmorestableandconsistentbehaviorbecause
ofahighcorrelationbetweenperformanceandreward.
1.__________________iscausinganunpleasantconditioninanattempttoeliminateanundesirable
behavior
2._________________iseliminatinganyreinforcementthatismaintainingabehavior
3.Ingeneral,variableschedulestendtoleadto__________performancethanfixedschedules.
4.4 Behaviormodification
ThetypicalOBModificationprogramfollowsafivestepproblemsolvingmodel:
1. Identifyingcriticalbehaviors
2. Developingbaselinedata
3. Identifyingbehaviorconsequences
4. Developingandimplementinganinterventionstrategy
5. Evaluatingperformanceimprovement
1. Criticalbehaviorsmakeasignificantimpactontheemployeesjobperformance
2. Developing baseline data determines the number of times the identified behavior is occurring
underpresentconditions.
3. Identifying behavioral consequences tells the manager the antecedent cues that emit the
behaviorandtheconsequencesthatarecurrentlymaintainingit.
4. Developingandimplementinganinterventionstrategywillentailchangingsomeelementsofthe
performancerewardlinkagestructure,processes,technology,groups,orthetaskwiththegoal
ofmakinghighlevelperformancemorerewarding.
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Learning
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5. Evaluatingperformanceimprovementisimportanttodemonstratethatachangetookplaceasa
resultoftheinterventionstrategy.
6. OBModificationhasbeenusedbyanumberoforganizationstoimproveemployeeproductivity
and to reduce errors, absenteeism, tardiness, accident rates, and improve friendliness toward
customers.
1.ThetypicalOBModificationprogramfollowsa_________stepproblemsolvingmodel
2. OB Modification has been used by a number of organizations to improve employee
____________.
4.5 Specificorganizationalapplication
1. Usinglotteriestoreduceabsenteeism
For example, Continental Airlines has created a lottery that rewards its 40,000 employees for
attendance.Twiceayear,Continentalholdsaraffleandgivesawayeightnewsportutilityvehicles.
Onlyemployeeswhohavenotmissedadayofworkduringtheprevioussixmonthsareeligible.This
lottery system thus, follows a variableratio schedule where management credits the lottery with
significantlyreducingthecompanysabsencerate(Robbins,2003).
2. Wellpayvs.sickpay
Organizations with paid sick leave programs experience almost twice the absenteeism of
organizationswithoutsuchprograms.OneoftheMidwestorganizationsinUSAimplementedawell
payprogram.Itpaidabonustoemployeeswhohadnoabsenceforanygivenfourweekperiodand
thenpaidforsickleaveonlyafterthefirsteighthoursofabsence.Thewellpayprogramproduced
increased savings to the organization, reduced absenteeism, increased productivity, and improved
employee satisfaction. Forbes magazine used the same approach to cut its health care costs. It
rewarded employees who stayed healthy and did not file medical claims by paying them the
differencebetween$500andtheirmedicalclaims,thendoublingtheamount. Bydoingthis,Forbes
cutitsmajormedicalanddentalclaimsbyover30percent(Robbins,2003).
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Learning
Unit9
3. Employeediscipline
a.Everymanagerwill,atsometime,havetodealwithproblembehaviorsinhis/herorganization.
a. Managers will respond with disciplinary actions such asoral reprimands, written warnings, and
temporarysuspensions.However,theuseofdisciplinecarriescosts.Itmayprovideonlyashort
termsolutionandresultinserioussideeffects.
b. Disciplining employees for undesirable behaviors gives them a message to what not to do.
However,itdoesnottellthemwhatalternativebehaviorsarepreferred.
c. Disciplinedoeshaveaplaceinorganizations.
d. Inpractice,ittendstobewidelyusedbecauseofitsabilitytoproducefastresultsintheshortrun.
e. Developingtrainingprograms
f. Mostorganizationshavesomekindofsystematictrainingprogram.
g. Inonerecentyear,U.S.corporationswith100ormoreemployeesspentinexcessof$58billion
onformaltrainingfor47.3millionworkers(Robbins,2003).
4. Sociallearningtheorysuggeststhattrainingshould
a.Offeramodeltograbthetraineesattention.
b.Providemotivationalproperties
c.Helpthetraineetofileawaywhatheorshehaslearnedforlateruseandprovideopportunitiesto
practicenewbehaviors.
d.Offerpositiverewardsforaccomplishments.
e. If the training has taken place off the job, allow the trainee some opportunity to transfer what
he/shelearnedtothejob.
5.Selfmanagement
1. Organizationalapplicationsoflearningconceptscanalsobeusedtoallowindividualstomanage
theirownbehavior.
2. Selfmanagement requires an individual to deliberately manipulate stimuli, internal processes,

andresponsestoachievepersonalbehavioraloutcomes.
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Learning
Unit9
Thebasicprocessesinvolveobservingonesownbehavior,comparingthebehaviorwithastandard,
andrewardingoneselfifthebehaviormeetsthestandard.
1.ContinentalAirlineslotterysystemfollowsa_______schedule.
2.Forbesmagazineusedthe__________tocutitshealthcarecosts.
4.6 Summary
Learningreferstoaprocessthatenhancestheknowledge,skillandattitude(KSA)ofindividuals,to
increase his/her willingness to adopt those newly acquired KSA and to implement them at the
workplace. Characteristics of learning are: learning involves change change must be relatively
permanent learning is concerned with behavior and some form of experience is necessary for
learning. There are three theoriesof learningnamely classical conditioning, operantconditioning,
and social learning. Classical Conditioning is a form of associative learning process proposed by
Pavlov. This process involves presentations of a neutral stimulus along with a stimulus of some
significance.Theneutralstimulusdoesnotleadtoanovertbehavioralresponsefromtheorganism.
This is called as Conditioned Stimulus (CS). Significant stimulusevokes an innate, often reflexive,
response. This is called Unconditioned Stimulus (US) and Unconditioned Response (UR),
respectively. If the CS and the US are repeatedly paired, eventually the two stimuli become
associated and the organism begins to produce a behavioral response to it. It is the Conditioned
Response(CR).TheoperantconditioningtheoryisproposedbyB.F.Skinner.Thisisbasedonthe
ideathatlearningisafunctionofchangeinovertbehavior.Changesinbehavioraretheresultofan
individual's response to stimuli. When a particular StimulusResponse (SR) pattern is reinforced
(rewarded),theindividualisconditionedtorespond.ReinforcementisthekeyelementinSkinner'sS
Rtheory.Areinforcerisanythingthatstrengthensthedesiredresponse.Thesociallearningtheory
wasproposedbyBandura.Itrecognizestheimportanceofobservingandmodelingthebehaviors,
attitudes,andemotionalreactionsofothers.AccordingtoBandura(1977),mosthumanbehavioris
learned observationally through modeling: from observing others one forms an idea of how new
behaviorsareperformed,andonlateroccasionsthiscodedinformationservesasaguideforaction.
Sociallearningtheoryexplainshumanbehaviorintermsofcontinuousreciprocalinteractionbetween
cognitive,behavioral,andenvironmentalinfluences. Whenasystematicattemptismadetochange
49
Learning
Unit9
individuals behavior by directing their learning in graduated steps, it is called shaping behavior.
There are four methods of Shaping Behavior. They are: positive reinforcement, negative
reinforcement, punishment, and extinction. Both positive and negative reinforcement result in
learning.Theystrengthenaresponseandincreasetheprobabilityofrepetition.Bothpunishmentand
extinction weaken behavior and tend to decrease its subsequent frequency. The typical OB Mod
programfollowsafivestepproblemsolvingmodel:Identifyingcriticalbehaviors,Developingbaseline
data,Identifyingbehaviorconsequences,Developingandimplementinganinterventionstrategy,and
Evaluatingperformanceimprovement.
TerminalQuestions
1. Explaintheclassicalconditioningtheoryandsociallearningtheory.
2. Describethefourmethodsofshapingbehavior.
3. Brieflyexplainthedifferenttypesofreinforcementschedules.
4. ExplainthefivestepproblemsolvingmodeloftypicalOBmodification.
AnswerstoSelfAssessingQuestions
SelfAssessingQuestions1
1. Pavlov
2. Overt
3. Four
1. Punishment
2. Extinction
3. Higher
1. Five
2. Productivity
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Learning
Unit9
1. Variableratio
2. wellpay
1. Refersection4.2
2. Refersection4.3
3. Refersection4.3
4. Refersection4.4
51
Value,EthicsAndJobSatisfaction
Unit5
Unit5
Structure
5.1 Introduction
Objectives
5.2 TypesofValues
5.3 ContemporaryWorkCohort
5.4 Nationalcultureandvalues
5.5 Attitudes
5.6Summary
TerminalQuestions
AnswertoSAQsandTQs
5.1 Introduction
Values represent basic convictions that a specific mode of conduct or endstate of existence is
personally or socially preferable to an opposite or converse mode of conduct or endstate of
existence (Rokeach, 1973).When the values are ranked in terms of their intensity, i.e., when the
value areprioritized interms of their intensity, itis called value system. Types of values include,
ethical/moral values, doctrinal/ideological (political, religious) values, social values, and aesthetic
values.
Valueshavebothcontentandintensityattributes.
1. Thecontentattributesignifiesthatamodeofconductorendstateofexistenceisimportant.
2. Theintensityattributespecifieshowimportantitis.
3. Rankinganindividualsvaluesintermsoftheirintensityequalsthatpersonsvaluesystem.
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Unit5
Valuesbuildthefoundationfortheunderstandingofattitudesandmotivationofanindividual,since,
value has agreat impactonperceptions. Values shape relationships,behaviors,and choices. The
more positive our values, more positiveare peoples actions. A significantportionof the valuesan
individualholdsisestablishedintheearlyyearsfromparents,teachers,friends,andothers.
Learningobjectives:
1. TypesofValues
2. Nationalcultureandvalues
3. Attitudes
5.2 TypesOfValues
Rokeach,inhisValueSurvey(RokeachValueSurveyRVS),proposedtwosetsofvalues.Theyare
:Terminal values and Instrumental values. Each set contains 18 individual value items. Terminal
valuesrefertodesirableendstatesofexistence,thegoalsthatapersonwouldliketoachieveduring
his/herlifetime.Instrumentalvaluesrefertopreferablemodesofbehavior,ormeansofachievingthe
terminalvalues.Thissurveyproposedthatpeopleinthesameoccupationsorcategoriestendtohold
similarvalues.TheterminalvaluesandinstrumentalvaluesproposedbyRVSarelistedbelow:
Terminalvalues
1. Equality(brotherhoodandequalopportunityforall)
2. Acomfortablelife(aprosperouslife)
3. AnExcitingLife(astimulating,activelife)
4. FamilySecurity(takingcareoflovedones)
5. Freedom(independenceandfreechoice)
6. Health(physicalandmentalwellbeing)
7. InnerHarmony(freedomfrominnerconflict)
8. MatureLove(sexualandspiritualintimacy)
9. NationalSecurity(protectionfromattack)
10. Pleasure(anenjoyable,leisurelylife)
11. Salvation(saved eternallife)
12. SelfRespect(selfesteem)
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Unit5
13. ASenseofAccomplishment(alastingcontribution)
14. SocialRecognition(respectandadmiration)
15. TrueFriendship(closecompanionship)
16. Wisdom(amatureunderstandingoflife)
17. AWorldatPeace(aworldfreeofwarandconflict)
18. AWorldofBeauty(beautyofnatureandthearts)
Instrumentalvalues
1. Ambitious(hardworkingandaspiring)
2. Broadminded
(openminded)
3. Capable(competenteffective)
4. Clean(neatandtidy)
5. Courageous(standingupforyourbeliefs)
6. Forgiving(willingtopardonothers)
7. Helpful(workingforthewelfareofothers)
8. Honest(sincereandtruthful)
9. Imaginative(daringandcreative)
10. Independent(selfreliantselfsufficient)
11. Intellectual(intelligentandreflective)
12. Logical(consistentrational)
13. Loving
(affectionateandtender)
14. Loyal(faithfultofriendsorthegroup)
15. Obedient(dutifulrespectful)
16. Polite(courteousandwellmannered)
17. Responsible(dependableandreliable)
18. Selfcontrolled
(restrainedselfdisciplined)
1. ___________valuesrefertodesirableendstatesofexistence,thegoalsthatapersonwouldlike
toachieveduringhis/herlifetime.
2. SocialRecognitionis____________value
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3. ___________valuesrefertopreferablemodesofbehavior,ormeansofachievingtheterminal
values
5.3 ContemporaryWorkCohort
Robbins (2003) has proposed Contemporary Work Cohort, in which the unique value of different
cohorts is that the U.S. workforce has been segmented by the era they entered the workforce.
Individualsvaluesdiffer,buttendtoreflectthesocietalvaluesoftheperiodinwhichtheygrewup.
Thecohortsandtherespectivevalueshavebeenlistedbelow:
1. VeteransWorkers who entered the workforce from the early 1940s through the early 1960s.
Theyexhibitedthefollowingvalueorientations:
TheywereinfluencedbytheGreatDepressionandWorldWarII
1. Believedinhardwork
2. Tendedtobeloyaltotheiremployer
3. Terminalvalues:Comfortablelifeandfamilysecurity
2. BoomersEmployees who entered the workforce during the 1960s through the mid1980s
belongedtothiscategory.Theirvalueorientationswere:
1. InfluencedheavilybyJohnF.Kennedy,thecivilrightsandfeministmovements,theBeatles,the
VietnamWar,andbabyboomcompetition
2. Distrustedauthority,butgaveahighemphasisonachievementandmaterialsuccess
3. Organizationswhoemployedthemwerevehiclesfortheircareers
4. Terminalvalues:senseofaccomplishmentandsocialrecognition
3.Xersbegantoentertheworkforcefromthemid1980s.Theycherishedthefollowingvalues:
1. Shapedbyglobalization,twocareerparents,MTV,AIDS,andcomputers
2. Valueflexibility,lifeoptions,andachievementofjobsatisfaction
3. Familyandrelationshipswereimportantandenjoyedteamorientedwork
4. Moneywasimportant,butwouldtradeoffforincreasedleisuretime
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5. Lesswillingtomakepersonalsacrificesforemployersthanpreviousgenerations
Terminalvalues:truefriendship,happiness,andpleasure
4.Nextersmostrecententrantsintotheworkforce.
1. Grewupinprosperoustimes,havehighexpectation,believeinthemselves,andconfidentintheir
abilitytosucceed
2. Neverendingsearchforidealjobseenothingwrongwithjobhopping
3. Seekfinancialsuccess
4. Enjoyteamwork,butarehighlyselfreliant
5. Terminalvalues:freedomandcomfortablelife
1. Workerswhoenteredtheworkforcefromtheearly1940sthroughtheearly1960s,arecalled
________________.
2. _______________begantoentertheworkforcefromthemid1980s.
5.4 NationalCultureAndValues
Followingarethemostimportantresearchwithregardtoestablishingrelationshipbetweennational
cultureandvalues.
Hofstedesresearch
Hofstede (1980,1991), in order to find the common dimensions of culture across the countries,
gathereddatafromsurveyswith116,000respondentsworkingfromIBMfrommorethan70countries
aroundtheworld.Theunderlyingconceptofthefourdimensionsisdescribedbelow(Hofsede1991):
1. Power distance: This dimension measures the 'social equality' i.e. to what extent a society
accepts unequal distribution of power in families, institutions and organizations. Inequality of
powerinorganizationsisgenerallymanifestedinhierarchicalsuperiorsubordinaterelationships.
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2. Uncertaintyavoidance:Thisisarepresentationofasociety'stoleranceforuncertainsituations.
It measures to what extent a society manages those situations by providing specific and
conventionalrules,regulationsandnormsbyrejectingaberrantideasorbehaviorbyaccepting
thepossibility of absolute truthsand the accomplishmentsof expertise. Countries, which score
highinuncertaintyavoidance,discouragerisktakingbehaviorandinnovation.
3. Individualism vs. collectivism: Individualism gauges to what extent individuals in a country

considerthemselvesasdistinctentitiesratherthanasmembersofcohesivegroups.Collectivism,
on the other hand, emphasizes on 'social ties or bonds' between individuals. Individualistic
societyconsidersselfinterestasmoreimportantthanthegroupgoal.
4. Masculinity vs. femininity: This dimension refers to what extent dominant values ina society
emphasizesmasculinesocialvalueslikeaworkethicexpressedintermsofmoney,achievement
and recognition as opposed to feminine social role which show more concern for people and
qualityoflife.
HofstedeandBond(1988)haveidentifiedafifthdimension(basedonConfuciandynamism),called
longtermorientation,whichmeasuresemployeesdevotiontotheworkethicandtheirrespectfor
tradition.ItwasfoundthatAsiancountrieslikeHongKong,Singapore,SouthKoreaandTaiwanare
extremelystronginworkethicandcommitmenttotraditionalConfucianvalues.
Hofstede (1991) further proposed that each person carries around several layers of cultural
programming. It starts when a child learns basic values: what is right and wrong, good and bad,
logicalandillogical,beautifulandugly.Cultureisaboutyourfundamentalassumptionsofwhatitisto
beapersonandhowyoushouldinteractwithotherpersonsinyourgroupandwithoutsiders.The
firstlevelofcultureisthedeepest,themostdifficulttochangeandwillvaryaccordingtotheculture
inwhichwegrowup.Otherlayersofculturearelearnedorprogrammedinthecourseofeducation,
throughprofessionalorcrafttrainingandinorganizationlife.Someoftheaspectsofculturelearned
laterhave todo with conventions and ethics in yourprofession. These layersare more of ways of
doingthings,orpracticesasopposedtofundamentalassumptionsabouthowthingsare.
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GLOBEresearch
GLOBE project integrates the above mentioned cultural attributes and variables with managerial
behavior in organizations. Following are some of the questions asked in this project to prove that
leadershipandorganizationalprocessesweredirectlyinfluencedbyculturalvariables:
1. Are leader behaviors, attributesand organizational practices universally acceptedand effective

acrosscultures?
2. Aretheyinfluencedbysocietalandorganizationalcultures?
3. What is the effect of violating cultural norms that are relevant to leadership and organizational
practices?
4. Can the universal and culturespecific aspects of leadership behaviour and organizational
practice be explained with the help of a theory accounting for systematic differences across
cultures?
From the above, GLOBE project identified nine cultural dimensions (House, Javidan, Hanges and
Dorfman,2002:310)
1. Uncertaintyavoidance:GLOBEprojectdefinedthisdimensionastheextenttowhichasociety
oranorganizationtriestoavoiduncertaintybydependingheavilyonprevalentnorms,ritualsand
bureaucraticpractices.
2. Power distance: it is the degree to which power is unequally shared in a society or an

organization.
3. CollectivismI i.e. societal collectivism: it is the degree to which society and organization
encourages,andrecognizescollectiveperformance.
4. CollectivismIIIngroupcollectivism:itisthedegreetowhichindividualstakepride,loyaltyand
cohesivenessintheirorganizationsandfamilies.
5. Gender egalitarianism: GLOBE has defined this as an extent to which a society or an

organizationminimizesgenderdifferencesanddiscrimination.
6. Assertiveness: it is the degree to which individuals, both in organizational and social context
are,assertiveandconfrontational.
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7. Future orientation: it is the degree to which individualsare encouraged in long termfuture

orientatedbehaviorssuchasplanning,investing,etc.
8. Performance orientation: this dimension encourages and rewards group members for
performanceimprovement.
9. Humaneorientation:itisthedegreetowhichorganizationsorsocietyencourageorrewardfor
beingfair,altruistic,friendly,generousandcaring.
Workbehavioracrosscultures
Ineveryculture,therearedifferentsetsofattitudesandvalueswhichaffectbehavior.Similarly,every
individual has a set of attitudes and beliefs filters through which he/she views management
situations within organizational context. Managerial beliefs, attitudes and values can affect
organizations positively or negatively. Managers portray trust and respect in their employees in
differentwaysindifferentcultures.Thisisafunctionoftheirownculturalbackgrounds.Forexample,
managers from specific cultures tend to focus only on the behavior that takes place at work, in
contrast to managers from diffused cultures who focus on wider range of behavior including
employees private and professional lives. Trompenaars and HampdenTurner (1998:86) have
conducted a survey to find out whether the employees believe their companies should provide
housingtotheemployees.Itwasfoundoutthatmostmanagersfromdiffusedculturesbelievedthat
company should provide such facility (former Yugoslavia 89%, Hungary 83%, China 82%, Russia
78%), whereas less than 20% managers from specific cultures such as UK, Australia, Denmark,
France,etc.,agreedonthesame.
Laurent (1983: 7596), as a result of his survey with managers from nine Western European
countries, U.S., three Asian countries found distinctly different patterns for managers in common
worksituations.
Task and relationship: in response to the statement which states that the main reason for a
hierarchicalstructurewastocommunicatetheauthorityrelationship,mostU.S.managersdisagreed
whereas, most Asian , Latin American managers strongly agreed. It was quite evident that U.S
managers, having an extremely task oriented culture, believed more in flatter organizational
structuretobecomemoreeffective.Ontheotherhand,thesecondsetofmanagerswerefrommore
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relationship oriented cultures where the concept of authority is more important. Similarly, in
response to the statement which says that in order to have efficient work relationship it is often
necessary to bypass the hierarchical line, differences were found across cultures. Managers from
Sweden(taskorientedculture)projectedleastproblemwithbypassingsincegettingthejobdoneis
more important than expressing allegiance to their bosses. In contrast, Italian managers, coming
from a relationshiporiented culture, considered bypassing the authority/boss as an act of in
subordination. The above mentioned example is inevitably a caution signal to the universal
managementapproach,irrespectiveofculture.
Managers as experts or problemsolvers:
in the same study, Laurent asked managers from
various cultures whether it was important for them to have at hand, precise answers to most
questions their subordinates might raise about their work. French managers believed that they
should give precise answers to the questions in order to maintain their credibility and retain the
subordinates sense of security. On the contrary, U.S. managers believed that a managers role
should be to act as a mentor who would facilitate the employees to solve the problem. They also
believe thatproviding direct answers to a problem actually discourages subordinates initiative and
creativityandultimatelyhampersperformance.
1. Powerdistancemeasuresthe_________________.
2. ______________gaugestowhatextentindividualsinacountryconsiderthemselvesasdistinct
entitiesratherthanasmembersofcohesivegroups.
3. HofstedeandBond(1988)haveidentifiedafifthdimensioncalled__________________
5.5 Attitudes
Attitudes are evaluative statements that are either favorable or unfavorable concerning objects,
people,orevents.Attitudesarenotthesameasvalues,butthetwoareinterrelated.Therearethree
componentsofanattitude:
1. Cognition
2. Affect
3. Behavior
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Cognition It is the mental process involved in gaining knowledgeand comprehension, including

thinking,knowing,remembering,judging,andproblemsolving.
Affectistheemotionalorfeelingsegmentofanattitude.
BehaviorThebehavioralcomponentofanattitudereferstoanintentiontobehaveinacertainway
towardsomeoneorsomething.
TypesofAttitudes
Most of the research in OB has been concerned with three attitudes: job satisfaction, job
involvement,andorganizationalcommitment.
1. Jobsatisfaction
1. It is defined as an individuals general attitude toward his/her job. A high level of job
satisfactionequalspositiveattitudestowardthejobandviceaversa.
2. Jobinvolvement
1.Itisthemeasureofthedegreetowhichapersonidentifiespsychologicallywithhis/herjoband
considershis/herperceivedperformancelevelimportanttoselfworth.
3. Organizationalcommitment
1.It is defined as a state in which an employee identifies with a particular organization and its
goals,andwishestomaintainmembershipintheorganization.Researchevidencehasshown
a negative relationshipbetweenorganizational commitmentandbothabsenteeismas wellas
turnover.Anindividualsleveloforganizationalcommitmentisabetterindicatorofturnoverthan
the far more frequently used job satisfaction predictor, because, it is a more global and
enduringresponsetotheorganizationasawholethanisjobsatisfaction.
AttitudesandConsistency
When there is an inconsistency, forces are initiated to return the individual to an equilibrium state
whereattitudesandbehaviorareagainconsistent,byalteringeithertheattitudesorthebehavior,or
bydevelopingarationalizationforthediscrepancy.
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CognitiveDissonanceTheory
Festinger (1957), while linking attitudes with behavior, argued that, any form of inconsistency is
uncomfortable and individuals will attempt to reduce the dissonance. The desire to reduce
dissonance would be determined by the importance of the elements creating the dissonance, the
degreeofinfluencetheindividualbelieveshe/shehasovertheelementsandtherewardsthatmay
beinvolvedindissonance
Importance: If the elements creating the dissonance are relatively unimportant, the pressure to
correctthisimbalancewillbelow.
Influence: If the dissonance is perceived as an uncontrollable result, they are less likely to be
receptivetoattitudechange.Thoughdissonanceexists,itispossibletorationalizeandjustifyit.
Rewards: Theinherenttensioninhighdissonancetendstobereducedwithhighrewards.
However, it is not possible for any individual to completely avoid dissonance. Due to moderating
factors,individualswillnotnecessarilymovetoreducedissonanceorconsistency.
Contemporary research has shown that attitudes can significantly predict future behavior and has
confirmedFestingersoriginalviewthatrelationshipcanbeenhancedbytakingmoderatingvariables
intoaccount(Robbins,2003).Themostpowerfulmoderatorsare:
1. Importance
2. Specificity
3. Accessibility
4. Socialpressures
5. Directexperience
1. Importance:referstofundamentalvalues,selfinterest,oridentificationwithindividualsorgroups
thatapersonvalues.
2. Specificity: Themorespecifictheattitudeandthemorespecificthebehavior,thestrongerthe
linkbetweenthetwo.
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3. Accessibility: Attitudes that are easily remembered are more likely to predict behavior than
attitudesthatarenotaccessibleinmemory.
4. Socialpressures:Discrepanciesbetweenattitudesandbehavioraremorelikelytooccurwhere
socialpressurestobehaveincertainwaysholdexceptionalpower.
Direct experience: The attitudebehavior relationship is likely to be much stronger if an attitude
referstoanindividualsdirectpersonalexperience.
Selfperceptiontheory
Selfperceptiontheory(Bem,1967)proposesthatattitudesareusedtomakesenseoutofanaction
that has already occurred rather than devices that precede and guide action. In contrast to the
cognitive dissonance theory, attitudes are just casual verbal statements and they tend to create
plausibleanswersforwhathasalreadyoccurred.
While the traditional attitudebehavior relationship is generally positive, the behaviorattitude
relationship is stronger especially when attitudes are unclear and ambiguous or little thought has
beengiventoitearlier.
AttitudeSurveys
1. The most popular method for getting information about employee attitudes is through attitude
surveys. It provides with valuable feedback about the way employees perceive their working
conditions.Managerspresenttheemployeewithsetstatementsorquestionstoobtainspecific
information. Whatmaybeviewedbymanagementasfairpoliciesandpractices,andasobjective,
may be seen as inequitable by employees in general, or by certain groups of employees, and
may result in negativeattitudesabout the job and the organization. Theuse of regular attitude
surveyscanalertmanagementtopotentialproblemsandemployeesintentionswellintime,so
thatactioncanbetakentopreventrepercussions(Robbins,2003).
MeasuringJobSatisfaction
Jobsatisfactionisthesenseoffulfillmentandpridefeltbypeoplewhoenjoytheirworkanddoitwell.
For an organization, satisfied work force ensures commitment to high quality performance and
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increased productivity Job satisfaction helps organizations to reduce complaints and grievances,
absenteeism,turnover,andtermination.Jobsatisfactionisalsolinkedtoamorehealthyworkforce
andhasbeenfoundtobeagoodindicatoroflongevity.Andalthoughonlylittlecorrelationhasbeen
foundbetween job satisfactionand productivity, it has also beenfound that satisfying ordelighting
employees is a prerequisite to satisfying or delighting customers, thus protecting the "bottom line
(Brown,1996).
CreatingJobSatisfaction
Probablythemostimportantpointtobearinmindwhenconsideringjobsatisfactionisthatthereare
manyfactors that affect job satisfaction and that what makes workers happy with their jobs varies
from one worker to another and from day to day. Organizations aspiring to create a work
environmentthatenhancesjobsatisfactionneedtoincorporatethefollowing:
1. Flexibleworkarrangements
2. Taskvarietyandsignificance
3. Jobsecurity
4. Asupportiveworkenvironment
5. Competitivesalary
6. Careeropportunities
Jobenrichment
Itisadeliberateupgradingofresponsibility,scope,andchallengeintheworkitself.Jobenrichment
usually includes increased responsibility, recognition, and opportunities for growth, learning, and
achievement. Large companies that have used jobenrichment programs to increase employee
motivationandjobsatisfactioninclude,AT&T,IBM,andGeneralMotors(Daft,1997).
Workersroleinjobsatisfaction
Aworkershouldalsotakesomeresponsibilityforhisorherjobsatisfaction.Everett(1995)proposed
the following questions which employees ask themselves in regard to job satisfaction at the
workplace:
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1. WhenhaveIcomeclosesttoexpressingmyfullpotentialinaworksituation?
2. Whatdiditlooklike?
3. Whataspectsoftheworkplaceweremostsupportive?
4. Whataspectsoftheworkitselfweremostsatisfying?
5. WhatdidIlearnfromthatexperiencethatcouldbeappliedtothepresentsituation?
Thefollowingsuggestionscanhelpaworkerfindpersonaljobsatisfaction:
1. Seekopportunitiestodemonstrateskillsandtalents.
2. Developcommunicationskills.
3. Acquirejobrelatedskillsandtrytoimplementthem.
4. Demonstratecreativityandinitiative.
5. Improveteambuildingandleadershipskill.
6. Learntodestress.
Thewaysofexpressingjobdissatisfaction
Thereareanumberofwaysinwhichemployeescanexpressdissatisfaction(Robbins,2003).They
are:
1. Exit
2. Voice
3. Loyalty
4. Neglect
1. Exit:Behaviordirectedtowardleavingtheorganization,actionslikelookingforanewpositionas
wellasresigning.
2. Voice: Actively and constructively attempting to improve conditions, including suggesting

improvements,discussingproblemswithsuperiors,andsomeformsofunionactivity.
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3. Loyalty:Passively,butoptimisticallywaitingforconditionstoimprove,includingstandingupfor
theorganizationinthefaceofexternalcriticism/crisis,andreposingtrustintheorganizationand
itsmanagementtotaketherightdecisionsandsetthingsinorder.
4. Neglect: Passively allowing conditions to worsen, including chronic absenteeism or lateness,

reducedeffort,andincreasederrorrate
1. Thereare____________componentsofanattitude
2. Festingerhasproposed_________________________theory.
3. ________________theoryproposesthatattitudesareusedtomakesenseoutofanactionthat
hasalreadyoccurredratherthandevicesthatprecedeandguideaction.
5.6 Summary
Values represent basic convictions that a specific mode of conduct or endstate of existence is
personally or socially preferable to an opposite or converse mode of conduct or endstate of
existence. Types of values include, ethical/moral values, doctrinal/ideological (political, religious)
values, social values, and aesthetic values. Values build the foundation for the understanding of
attitudes and motivation of an individual, since, value has a great impact on perceptions. Values
shape relationships, behaviors, and choices. The more positive our values, more positive are
peoples actions. A significant portion of the values an individual holds is established in the early
years from parents, teachers, friends, and others. Rokeach, in his Value Survey (Rokeach Value
Survey RVS), proposed two sets of values. They are :Terminal values and Instrumental values.
Each set contains 18 individual value items. Terminal values refer to desirable endstates of
existence,thegoalsthatapersonwouldliketoachieveduringhis/herlifetime.Instrumentalvalues
refertopreferablemodesofbehavior,ormeansofachievingtheterminalvalues.Hofstedeproposed
fourdimensionsofnational culture: Powerdistance (this dimension measures the 'socialequality'),
Uncertainty avoidance (this is a representation of a society's tolerance for uncertain situations),
Individualismvs.collectivism(individualismgaugestowhatextentindividualsinacountryconsider
themselves as distinct entities rather than as members of cohesive groups and collectivism
emphasizes on 'social ties or bonds' between individuals) and Masculinity vs. femininity (this
dimension refers to what extent dominant values in a society emphasizes masculine social values
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likeaworkethicexpressedintermsofmoney,achievementandrecognitionasopposedtofeminine
social role which show more concern for people and quality of life). Attitudes are evaluative
statementsthatareeitherfavorableorunfavorableconcerningobjects,people,orevents.Attitudes
arenotthesameasvalues,butthetwoareinterrelated.Therearethreecomponentsofanattitude:
Cognition (the mental process involved in gaining knowledge and comprehension), Affect (the
emotional orfeeling segmentof anattitude) andBehavior (an intention tobehave in a certain way
towardsomeoneorsomething).Festinger(1957),whilelinkingattitudeswithbehavior,arguedthat,
any form of inconsistency is uncomfortable and individuals will attempt to reduce the dissonance.
Thedesire to reduce dissonance would bedeterminedbythe importanceof theelementscreating
thedissonance,thedegreeofinfluencetheindividualbelieveshe/shehasovertheelementsandthe
rewards that may be involved in dissonance. Selfperception theory (Bem, 1967) proposes that
attitudesareusedtomakesenseoutofanactionthathasalreadyoccurredratherthandevicesthat
precede and guideaction. In contrast to the cognitive dissonance theory, attitudesare justcasual
verbalstatementsandtheytendtocreateplausibleanswersforwhathasalreadyoccurred.
TerminalQuestions
1. WhatisRokeachValueSurveyRVS?Explainthevaluesdescribedinthissurvey.
2. ExplainHofstedesresearch.
3. DescribeLaurentsfindings.
4. ExplainCognitiveDissonanceTheoryandselfperceptiontheory.
1. Terminal
2. Terminal
3. Instrumental
1. Veterans
2. Xers
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1. Socialequality
2. Individualism
3. Longtermorientation
1. Three
2. CognitiveDissonance
3. Selfperception
1. Refersection5.2
2. Refersection5.4
3. Refersection5.4
4. Refersection5.5
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Unit6
Personality
Structure
6.1 Introduction
Objectives
6.2 PersonalityDeterminants
6.3 PersonalityTheories
6.4 Achievingpersonalityfit
6.5 Summary
TerminalQuestions
AnswertoSAQsandTQs
6.1 Introduction
The term 'personality' has been derived from the Latin term 'persona' which means to 'speak
through'.TheLatinworddenotesthemaskswornbyactorsinancientGreeceandRome.Therefore,
averycommonmeaningofthetermpersonalityistherolewhichtheperson(actor)displaysinthe
publicdomainatlarge.Personalityisadynamicconceptdescribingthegrowthanddevelopmentofa
personswholepsychologicalsystemitlooksatsomeaggregatewholethatisgreaterthanthesum
oftheparts.Allport(1937)definedpersonalityasthedynamicorganizationwithintheindividualof
thosepsychophysicalsystemsthatdeterminehisuniqueadjustmentstohisenvironment.
Learningobjectives:
1. PersonalityDeterminants
2. PersonalityTheories
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6.2 PersonalityDeterminants
Thefactorsaffectingpersonalitydevelopmentareillustratedbelow:
1. Heredity The relationship of heredity with personality is a wellaccepted fact. Traits like
physique,eyecolor,haircolor,height,temperament,energylevel,intelligence,reflexes,etc.are
generally referred to describethe influence ofheredity in developing personality. The heredity
approach argues that the ultimate explanation of an individuals personality is the molecular
structure of thegenes, located in the chromosomes. Robbins (2003) has arguedthat thethree
different streams of research lend some credibility to the argument that heredity plays an
important part in determining an individual's personality. The first looks at the genetic
underpinnings of human behavior and temperament among young children. The second
addressesthestudyoftwinswhowereseparatedatbirthandthethirdexaminestheconsistency
injobsatisfactionovertimeandacrosssituations.
2. Environment Environment comprises of culture, family, social and situational factors. The
environmentalfactorsinfluencepersonalityofanindividualsincetheyprovidethebasisofcertain
experienceswhichdeterminetheindividualsviewaboutlife,bothpositiveandnegative.
3. CultureCultureestablishesnorms,attitudesandvaluesthatarepassedonfromgenerationto
generationandcreateconsistenciesovertime.Everycultureexpectsandtrainsitsmembersto
behaveinthewaysthatareacceptabletothegroup.Peoplefromdifferentculturalgroupshave
different attitudes towards independence, aggression, competition, cooperation, artistic talent,
etc. However, on the basis of culture, an individuals personality cannot be always assessed,
sinceindividualswithinthesameculture(butfromdifferentfamilyandsubculturalbackground)
havebeenseentodifferintheirbehavior.
4. FamilyOneofthemostimportantdeterminantsofthepersonalityofapersonistheimmediate
family. Families influence the behavior of a person especially in the early stages of life. The
nature of such influence will depend upon the socioeconomic level of the family, family size,
race,religion,parent'seducationallevelandgeographiclocation.
5.
Situation Situational factors also play a crucial role in determining the personality of a
person.Everyindividualgoesthroughdifferenttypeofexperiencesandeventsinhis/herlife.Some
of the events and experiences, which an individual goes through in his/her life, can serve as
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important determinants of his/her personality. A trauma suffered by a person in the childhood can
sometimechangethestructureofhis/herownpersonality.
1. Theheredityapproacharguesthattheultimateexplanationofanindividualspersonalityisthe
molecularstructureofthe______________
2. Oneofthemostimportantdeterminantsofthepersonalityofapersonisthe________family
6.3 PersonalityTheories
Traitsareunderlyingtendenciestobehaveinaconsistentanddistinctivestyleandtheydescribethe
frequency or intensity of a person's feelings, thoughts, or behaviors. Possession of a trait is,
therefore,amatterofdegree.
Someofthemostimportantresearchworksonpersonalitytraitsarementionedbelow:
Cattell's16PersonalityFactorModel
Early research on personality traits resulted in isolating large numbers of traits, which made it
impossibletopredictbehavior.Cattells(1973)isoneofthemostimportantpersonalitytraittheory,
wherethenumberoftraitshavebeenreduced.Cattellreferredtothese16factorsasprimaryfactors.
PrimaryFactorsandDescriptorsinCattell's16PersonalityFactorModel(AdaptedFromConn&
Rieke,1994).
DescriptorsofLowRange
PrimaryFactor DescriptorsofHighRange
Reserve,impersonal,distant,cool,
Warm,outgoing,attentivetoothers,
reserved,impersonal,detached,formal, Warmth
kindly,easygoing,participating,likes
aloof(Sizothymia)
people(Affectothymia)
Concretethinking,lowergeneralmental
capacity,lessintelligent,unableto
Reasoning
Abstractthinking,moreintelligent,
bright,highergeneralmentalcapacity,
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handleabstractproblems(Lower
fastlearner(HigherScholasticMental
ScholasticMentalCapacity)
Capacity)
Reactiveemotionally,changeable,
affectedbyfeelings,emotionallyless
Emotional
Emotionallystable,adaptive,mature,
stable,easilyupset(LowerEgo
Stability
facesrealitycalm(HigherEgoStrength)
Strength)
Deferential,cooperative,avoidsconflict,
submissive,humble,obedient,easily
led,docile,accommodating
Dominant,forceful,assertive,
Dominance
bossy(Dominance)
(Submissiveness)
Serious,restrained,prudent,taciturn,
introspective,silent(Desurgency)
Expedient,nonconforming,disregards
rules,selfindulgent(LowSuperEgo
Strength)
Shy,threatsensitive,timid,hesitant,
intimidated(Threctia)
Lively,animated,spontaneous,
Liveliness
Rule
Consciousness
SocialBoldness
toughminded,selfreliant,nononsense, Sensitivity
rough(Harria)
unconditional,easy(Alaxia)
Vigilance
Grounded,practical,prosaic,solution
orientated,steady,conventional
Abstractedness
(Praxernia)
Forthright,genuine,artless,open,
enthusiastic,happygolucky,cheerful,
expressive,impulsive(Surgency)
Utilitarian,objective,unsentimental,
Trusting,unsuspecting,accepting,
aggressive,competitive,stubborn,
Privateness
Ruleconscious,dutiful,conscientious,
conforming,moralistic,staid,rulebound
(HighSuperEgoStrength)
Sociallybold,venturesome,thick
skinned,uninhibited(Parmia)
Sensitive,aesthetic,sentimental,tender
minded,intuitive,refined(Premsia)
Vigilant,suspicious,skeptical,
distrustful,oppositional(Protension)
Abstract,imaginative,absentminded,
impractical,absorbedinideas(Autia)
Private,discreet,nondisclosing,
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guileless,naive,unpretentious,involved
shrewd,polished,worldly,astute,
(Artlessness)
diplomatic(Shrewdness)
SelfAssured,unworried,complacent,
Apprehensive,selfdoubting,worried,
secure,freeofguilt,confident,self
Apprehension
satisfied(Untroubled)
Traditional,attachedtofamiliar,
conservative,respectingtraditional
ideas(Conservatism)
Grouporiented,affiliative,ajoinerand
followerdependent(GroupAdherence)
blaming(GuiltProneness)
Opennessto
Change
impulsive,carelessofsocialrues,
SelfReliance
composedlowdrive(LowErgicTension)
analytical,critical,freethinking,
flexibility(Radicalism)
individualistic,selfsufficient(Self
Sufficiency)
Perfectionistic,organized,compulsive,
Perfectionism
uncontrolled(LowIntegration)
Relaxed,placid,tranquil,torpid,patient,
Opentochange,experimental,liberal,
Selfreliant,solitary,resourceful,
Tolerateddisorder,unexacting,flexible,
undisciplined,lax,selfconflict,
guiltprone,insecure,worrying,self
selfdisciplined,sociallyprecise,
exactingwillpower,control,self
sentimental(HighSelfConceptControl)
Tense,highenergy,impatient,driven,
Tension
frustrated,overwrought,timedriven.
(HighErgicTension)
TheMyersBriggsTypeIndicator
TheMBTIclassifieshumanbeingsintofouroppositepairs(dichotomies),baseontheirpsychological
opposites. Thesefouropposite pairs result into16possible combinations. In MBTI, Individuals are
classifiedas(McCraeandCosta,1989):
a. Extrovertedorintroverted(EorI).
b. Sensingorintuitive(SorN).
c. Thinkingorfeeling(TorF).
d. Perceivingorjudging(PorJ).
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Theseclassificationsarethencombinedintosixteenpersonalitytypes.Forexample:
a. INTJsarevisionaries.Theyusuallyhaveoriginalmindsandgreatdrivefortheirownideasand
purposes. They are characterized as skeptical, critical, independent, determined, and often
stubborn.
b. ESTJsareorganizers.Theyarerealistic,logical,analytical,decisive,andhaveanaturalheadfor
businessormechanics.Theyliketoorganizeandrunactivities.
c. The ENTP type is a conceptualizer. He or she is innovative, individualistic, versatile, and
attracted to entrepreneurial ideas. This person tends to be resourceful in solving challenging
problemsbutmayneglectroutineassignments.
Thebigfivemodel
1. Many researchers argue that five basic dimensions underlie all other personality dimensions
(e.gMcCraeandCosta,1990Digman,1997).Thefivebasicdimensionsare:
1. Extraversion.Comfortlevelwithrelationships.Extravertstendtobegregarious,assertive,and
sociable.Introvertstendtobereserved,timid,andquiet.
2. Agreeableness. Individuals propensity to defer to others. High agreeableness people

cooperative, warm, and trusting. Low agreeableness peoplecold, disagreeable, and
antagonistic.
3. Conscientiousness. A measure of reliability. A high conscientious person is responsible,

organized, dependable, and persistent. Those who score low on this dimension are easily
distracted,disorganized,andunreliable.
4. Emotional stability. A persons ability to withstand stress. People with positive emotional
stabilitytendtobecalm,selfconfident,andsecure.Thosewithhighnegativescorestendtobe
nervous,anxious,depressed,andinsecure.
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5. Opennesstoexperience.Therangeofinterestsandfascinationwithnovelty.Extremelyopen
peoplearecreative,curious,andartisticallysensitive.Thoseattheotherendoftheopenness
categoryareconventionalandfindcomfortinthefamiliar.
Research suggested important relationships between these personality dimensions and job
performance(Barrick,&Mount,1991).Forexample,conscientiousnesspredictedjobperformance
foralloccupationalgroups.Individualswhoaredependable,reliable,careful,thorough,abletoplan,
organized,hardworking,persistent,andachievementorientedtendtohavehigherjobperformance.
Employees higher in conscientiousness develop higher levels of job knowledge. For the other
personality dimensions, predictability depended upon both the performance criterion and the
occupational group. Extraversion predicted performance in managerial and sales positions.
Opennesstoexperienceisimportantinpredictingtrainingproficiency.
Locusofcontrol
Apersonsperceptionofthesourceofhis/herfateistermedlocusofcontrol.Locusofcontrolwas
formulatedwithintheframeworkofRotter's(1954)sociallearningtheoryofpersonality.Rotter(1975)
pointed out that internality and externality represent two ends of a continuum, not an either/or
typology. Internals tend to attribute outcomes of events to their own control. Externals attribute
outcomesofeventstoexternalcircumstances.Forexample,collegestudentswithastronginternal
locusofcontrolmaybelievethattheirgradeswereachievedthroughtheirownabilitiesandefforts,
whereas,thosewithastrongexternallocusofcontrolmaybelievethattheirgradesaretheresultof
goodor bad luck,or toa professor whodesigns bad testsor gradescapriciouslyhence, theyare
lesslikelytoexpectthattheirowneffortswillresultinsuccessandarethereforelesslikelytowork
hardforhighgrades.
Individuals who rate high in externality are less satisfied with their jobs, have higher absenteeism
rates,aremorealienatedfromtheworksetting,andarelessinvolvedontheirjobsthanareinternals.
Internals,facingthesamesituation,attributeorganizationaloutcomestotheirownactions.Internals
believethathealthissubstantiallyundertheirowncontrolthroughproperhabitstheirincidencesof
sicknessand,hence,ofabsenteeism,arelower.
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Internals generally perform better on their jobs, but one needs to consider differences in jobs.
Internals search more actively for information before making a decision, are more motivated to
achieve,and make agreater attempt to control their environment, andhence, internalsdo wellon
sophisticated tasks. Internals are more suited to jobs that require initiative and independence of
actionandwantautonomyandindependenceintheirjobs.Externalsaremorecompliantandwilling
tofollowdirectionsandbeled,anddowellonjobsthatarewellstructuredandroutineandinwhich
successdependsheavilyoncomplyingwiththedirectionofothers.
Machiavellianism
Machiavellianism is the term that some social and personality psychologists use to describe a
person'stendencytodeceiveandmanipulateothersforpersonalgain.Theconceptisnamedafter
RenaissancediplomatandwriterNiccolMachiavelli,whowrote IlPrincipe(ThePrince).Christieand
Geis (1970) developed a test for measuring a person's level of Machiavellianism. This eventually
became the MACHIV test, a twentystatement personality survey that is now the standard self
assessmenttoolofMachiavellianism. AnindividualhighinMachiavellianismispragmatic,maintains
emotional distance, and believes that ends can justify means. High Machs manipulate more, win
more, are persuaded less, and persuade others more. High Mach outcomes are moderated by
situationalfactorsandflourishwhentheyinteractfacetofacewithothers,ratherthanindirectly,and
when the situation has a minimum number of rules and regulations, thus, allowing room for
improvisation.HighMachsmakegoodemployeesinjobsthatrequirebargainingskillsorthatoffer
substantialrewardsforwinning.
Selfesteem(SE)
Selfesteem is defined as the degree to which people like or dislike themselves (Robbins, 2003).
Individuals with high selfesteem tend to take more risks in job selection and are more likely to
choose unconventional jobs in contrast to people with low selfesteem. Low SEs are more
susceptible to external influence than are high SEs. Low SEs are dependent on the receipt of
positive evaluations from others. In managerial positions, therefore, low SEs will tend to be
concernedwithpleasingothers.
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Selfmonitoring
It refers to an individuals ability to adjust his or her behavior to external, situational factors.
Individuals high in selfmonitoring show considerable adaptability. They are highly sensitive to
externalcues,andarecapableofbehavingdifferentlyindifferentsituations,andpresentingstriking
contradictionsbetweentheirpublicpersonaandtheirprivateself.Lowselfmonitorscannotdisguise
themselves in that way. They tend to display their true dispositions and attitudes in almost every
situation resulting in a high behavioral consistency between who they are and what they do. High
selfmonitors tendto pay closer attention tothe behaviorof others. High selfmonitoring managers
tendtobemoremobileintheircareersandreceivemorepromotions.Highselfmonitoriscapableof
puttingondifferentfacesfordifferentaudiences.
TypeA andTypeBpersonality
Type A personality is a set of characteristics that includes, being impatient, excessively time
conscious,insecureaboutone'sstatus,highlycompetitive,hostileandaggressive,andincapableof
relaxation(Friedman&Rosenman1974).Theyarealwaysmoving,walking,andeatingrapidly,are
impatientwiththerateatwhichmosteventstakeplace,aredoingdotwoormorethingsatonceand
cannotcopewithleisuretime.Theyareobsessedwithnumbers,measuringtheirsuccessintermsof
howmanyorhowmuchofeverythingtheyacquire.TypeAsoperateundermoderatetohighlevels
ofstress.Theyexposethemselvestocontinuoustimepressure,arefastworkers,givepreferenceto
quantityoverquality,worklonghours,andarealsorarelycreative.
Type B personality is rarely hurried by the desire to obtain an increasing number of things or
participatein eventsdemandinganeverdecreasingamountoftime(Friedman&Rosenman,1974).
Type Bs never sufferfrom a sense of time urgency with its accompanying impatience andfeel no
need to display or discuss either their achievements or accomplishments unless otherwise
demandedbythesituation.Theycanrelaxwithoutguilt.
1. Cattellreferredtothese16factorsas_____________ factors.
2. TheMBTIclassifieshumanbeingsinto_____________oppositepairs
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3. LocusofcontrolwasformulatedwithintheframeworkofRotter's___________theoryof
personality
6.4 AchievingPersonalityJobFit
AccordingtoHolland(1997),workersarenotpassivevictimsoftheirenvironments,butactivelyseek
potentially compatible work environments. If an individuals personality and the work environment
fitthatis,ifthepersonalityiscongruentwiththeworkenvironmenttheindividualwillmostlikely
enjoytheworkanddevelopandgrowinthecareer.Matchingpeopletotheorganizationalcultureat
the time of hiring should result in higher employee satisfaction and reduced turnover. Holland has
proposedSixthemesofpeopleandworkenvironments,withinwhichalljobscanbeclassified:
1. Realistic
2. Investigative
3. Artistic
4. Social
5. Enterprising
6. Conventional
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Theabovementionedclassificationisshowninmoredetailsinthefollowingchart:
Type
Personality
CongruentOccupation
Characteristics
Realistic:Prefersphysical
Shy,genuine,persistent,
Mechanic,drillpress
activitiesthatrequireskill,
stable,
operator,
strength,andcoordination
conforming,practical
assemblylineworker,
farmer
Investigative:Prefers
activities
thatinvolvethinking,
organizing,and
Biologist,economist,
Analytical,original,curious,
independent
mathematician,news
reporter
understanding
Social:Prefersactivities
Sociable,friendly,
Socialworkers,teacher,
that
cooperative,
counselor,clinical
involvehelpingand
understanding
psychologist
Conventional:Prefersrule
Conforming,efficient,
Accountant,corporate
regulated,orderly,and
practical,
manager,bankteller,file
unambiguousactivities
unimaginative,inflexible
clerk
Enterprising:Prefersverbal
Selfconfident,ambitious,
Lawyer,realestateagent,
activitiesinwhichthereare
energetic,domineering
publicrelationsspecialist,
developingothers
opportunitiestoinfluence
small
othersandattainpower
businessmanager
Artistic:Prefersambiguous
Imaginative,disorderly,
Painter,musician,writer,
and
idealistic,
interiordecorator
unsystematicactivitiesthat
emotional,impractical
allowcreativeexpression
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1. Hollandhasproposed_________
themesofpeopleandworkenvironments,withinwhichall
jobscanbeclassified
2. _____________personprefersverbalactivitiesinwhichthereareopportunitiestoinfluence
othersandattainpower.
6.5 Summary
The term 'personality' has been derived from the Latin term 'persona' which means to 'speak
through'.ThefactorsaffectingpersonalitydevelopmentareHeredity,Environment,Culture,Family,
andSituation.PersonalityTraitsareunderlyingtendenciestobehaveinaconsistentanddistinctive
style and they describe the frequency or intensity of a person's feelings, thoughts, or behaviors.
Possessionofatraitis,therefore,amatterofdegree.Earlyresearchonpersonalitytraitsresultedin
isolatinglargenumbersoftraits,whichmadeitimpossibletopredictbehavior.Cattells(1973)isone
ofthemostimportantpersonalitytraittheory,wherethenumberoftraitshavebeenreduced.Cattell
referredtothese16factorsasprimaryfactors.TheMBTIclassifieshumanbeingsintofouropposite
pairs(dichotomies),baseontheirpsychologicalopposites.Thesefouroppositepairsresultinto16
possible combinations. Many researchers argue that five basic dimensions underlie all other
personalitydimensions(e.gMcCraeandCosta,1990Digman,1997).Thefivebasicdimensionsare
Extraversion,Agreeableness,Conscientiousness,Emotionalstability,andopennesstoexperience.A
persons perception of the source of his/her fate is termed locus of control. Locus of control was
formulatedwithintheframeworkofRotter's(1954)sociallearningtheoryofpersonality.Rotter(1975)
pointed out that internality and externality represent two ends of a continuum, not an either/or
typology.Internalstendtoattributeoutcomesofeventstotheirowncontrol.Machiavellianismisthe
termthatsomesocialandpersonalitypsychologistsusetodescribeaperson'stendencytodeceive
andmanipulateothersforpersonalgain.Selfesteemisdefinedasthedegreetowhichpeoplelikeor
dislikethemselves(Robbins,2003).Individualswithhighselfesteemtendtotakemorerisksinjob
selection and are more likely to choose unconventional jobs in contrast to people with low self
esteem. Low SEs are more susceptible to external influence than are high SEs. Low SEs are
dependentonthereceiptofpositiveevaluationsfromothers.Selfmonitoringreferstoanindividuals
abilitytoadjusthisorherbehaviortoexternal,situationalfactors.Individualshighinselfmonitoring
show considerable adaptability. Type A personality is a set of characteristics that includes, being
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impatient, excessively timeconscious, insecure about one's status, highly competitive, hostile and
aggressive,andincapableofrelaxation.TypeBpersonalityisrarelyhurriedbythedesiretoobtain
an increasing number ofthings or participate in events demanding aneverdecreasing amountof
time.AccordingtoHolland(1997),workersarenotpassivevictimsoftheirenvironments,butactively
seek potentially compatible work environments. If an individuals personality and the work
environment fitthat is, if the personality is congruent with the work environmentthe individual
will most likely enjoy the work and develop and grow in the career. Matching people to the
organizationalcultureatthetimeofhiringshouldresultinhigheremployeesatisfactionandreduced
turnover.
Terminalquestions
Describethedeterminantsofpersonality.
1. ExplainTheMyersBriggsTypeIndicator.
2. Explainthepersonalitydimensionsmentionedinbigfivemodel.
3. ExplainTypeAandTypeBpersonality.
4. BasedonHollandsapproach,explainpersonalityjobfit.
1.Genes
2.Immediate
1.Primary
2.Four
3.Sociallearning
1.Six
2.Enterprising
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1.Refersection6.2
2.Refersection6.3
3.Refersection6.3
4.Refersection6.3
5.Refersection6.4
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Unit7
Emotions
Structure
7.1 Introduction
Objectives
7.2 Theoriesofemotion
7.3 Certainissues
7.4: Emotionalintelligence
7.5Summary
TerminalQuestions
AnswertoSAQsandTQs
7.1 Introduction
Ingeneral,thetermemotionisusedtodesignate"astateofconsciousnesshavingtodowiththe
arousaloffeelings(WebstersNewWorldDictionary)."Itis"distinguishedfromothermentalstates,
fromcognition,volition,andawarenessofphysicalsensation."Feelingrefersto"anyofthesubjective
reactions,pleasantorunpleasant"thatonemayexperienceinasituation.
Learningobjectives:
Theoriesofemotion
Emotionalintelligence
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7.2 TheoriesOfEmotion:
Therearemanytheoriesofemotion:
I.JamesLangeTheory(1890)[citedinTaylor,1999]:Subjectiveemotionalresponsesaretheresult
of physiological changes within human bodies. The brain perceives an event and, in turn, sends
messagesdownitsneuralcircuitrytootherareasofthebrain.Thisactionultimatelyproducesmotor,
autonomicandendocrineresponses.Theseresponseselicitanemotionalresponse,whichinturn,is
perceived by the brain. Therefore, it is a cyclical process. This theory argues that physiological
behaviorsprecedetheemotion.
II. CannonBard theory (1927) [cited in Taylor, 1999]: Emotionprovoking events induce the
subjective emotional experiences and physiological arousal simultaneously. Through experiences,
individuals begin to acquire certain expectations for every given situation. These expectations
provide a filter and every situation is processed through this filter. During this process, brain
producestheemotionandcorrespondingphysiologicalbehaviorsatthesametime.
III. SchachterSinger theory (1962): Both feedback from peripheral responses and a cognitive
appraisal of what caused those responses produce emotions. How one interprets the peripheral
response will determine the emotion he / she feels. Individuals label the emotional response
depending on what we think is causing the response. For example, when someone interprets a
stimulus as dangerous, it leads to physiological arousal. Then, this physiological arousal is
interpretedtoaparticularemotion.Itcanbefear,surprise,excitement,andastonishmentdepending
onhowthearousalislabeled.
IV. Lazarus' appraisal theory (1980): An individual makes an initial and sometimes unconscious
cognitiveappraisalofthesituationtodecide,ifthereisathreatcopingactionistakenifnecessary
andtheindividualtakesacloserlookandidentifiestheemotionsheorsheisfeeling.
V. Weiner'sattribution theory(1986, 1992): Certain attributions produce specificemotions. Once
the initial evaluation has been made, the individual looks at what caused the event. These
attributionsofcausalitycanmodifytheemotionfelt.Itistheinteractionoftheperceivedinternaland
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Emotions
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externalcauses, controllability and outcomethatwill determine theemotional responses.Whatare

thebasic emotions?Ortony and Turner (1990) collateda wide rangeof researchas to what basic
emotions are and the basis of including them as basic emotions and proposed a comprehensive
descriptionofbasicemotionsandcorrespondingreasonsforinclusion:
Acomprehensivedescriptionofbasicemotionsandcorrespondingreasonsforinclusion
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Source:Ortony,A.,&Turner,T.J.(1990).What'sbasicaboutbasicemotions?Psychological
Review,97,3,July,315331
Arnold
Ekman,Friesen,and
Ellsworth
Frijda
Gray
Izard
James
McDougall
Mowrer
OatleyandJohnson
Laird
Panksepp
Plutchik
Tomkins
Watson
BasicEmotions
BasisforInclusion
Anger,aversion,courage,dejection,desire,
Relationtoaction
despair,fear,hate,hope,love,sadness
tendencies
Anger,disgust,fear,joy,sadness,surprise
Desire,happiness,interest,surprise,wonder,
sorrow
Rageandterror,anxiety,joy
Anger,contempt,disgust,distress,fear,guilt,
interest,joy,shame,surprise
Fear,grief,love,rage
Anger,disgust,elation,fear,subjection,tender
emotion,wonder
Pain,pleasure
Anger,disgust,anxiety,happiness,sadness
Universalfacial
expressions
Formsofactionreadiness
Hardwired
Hardwired
Bodilyinvolvement
Relationtoinstincts
Unlearnedemotional
states
Donotrequire
propositionalcontent
Expectancy,fear,rage,panic
Hardwired
Acceptance,anger,anticipation,disgust,joy,
Relationtoadaptive
fear,sadness,surprise
biologicalprocesses
Anger,interest,contempt,disgust,distress,fear,
joy,shame,surprise
Fear,love,rage
WeinerandGraham Happiness,sadness
Densityofneuralfiring
Hardwired
Attributionindependent
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Parrot(2001)hascategorizedemotionsasanotherclassification(Figureno.1.4):
Figureno.1.4:
Parrotsclassificationofemotions
Primary
Secondary
emotion
emotion
Affection
Love
Tertiaryemotions
Adoration,affection,love,fondness,liking,attraction,
caring,tenderness,compassion,sentimentality
Lust
Arousal,desire,lust,passion,infatuation
Longing
Longing
Amusement,bliss,cheerfulness,gaiety,glee,
Cheerfulness
jolliness,joviality,joy,delight,enjoyment,gladness,
happiness,jubilation,elation,satisfaction,ecstasy,
euphoria
Joy
Surprise
Zest
Enthusiasm,zeal,zest,excitement,thrill,exhilaration
Contentment
Contentment,pleasure
Pride
Pride,triumph
Optimism
Eagerness,hope,optimism
Enthrallment
Enthrallment,rapture
Relief
Relief
Surprise
Amazement,surprise,astonishment
Irritation
Exasperation
Aggravation,irritation,agitation,annoyance,
grouchiness,grumpiness
Exasperation,frustration
Anger,rage,outrage,fury,wrath,hostility,ferocity,
Anger
Rage
bitterness,hate,loathing,scorn,spite,vengefulness,
dislike,resentment
Sadness
Disgust
Disgust,revulsion,contempt
Envy
Envy,jealousy
Torment
Torment
Suffering
Agony,suffering,hurt,anguish
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Depression,despair,hopelessness,gloom,glumness,
Sadness
sadness,unhappiness,grief,sorrow,woe,misery,
melancholy
Disappointment
Dismay,disappointment,displeasure
Shame
Guilt,shame,regret,remorse
Alienation,isolation,neglect,loneliness,rejection,
Neglect
homesickness,defeat,dejection,insecurity,
embarrassment,humiliation,insult
Sympathy
Horror
Fear
Nervousness
Pity,sympathy
Alarm,shock,fear,fright,horror,terror,panic,
hysteria,mortification
Anxiety,nervousness,tenseness,uneasiness,
apprehension,worry,distress,dread
Source:Parrott,W.(2001),EmotionsinSocialPsychology,PsychologyPress,Philadelphia
Feltvs.DisplayedEmotions(Hochschild,1979,1983)
Felt emotions are an individuals actual emotions. Displayed emotions are those that are
organizationally required and considered appropriate in a given job. They are learned. Felt and
displayedemotionsmaybedifferent.Thisisparticularlytrueinorganizations,whereroledemands
andsituationsoftenrequirepeopletoexhibitemotionalbehaviorsthatmasktheirtruefeelings.
1. Subjectiveemotionalresponsesaretheresultof__________changeswithinhumanbodies.
2. Both feedback from peripheral responses and a ___________ appraisal of what caused those
responsesproduceemotions.
3. _____________emotionsareanindividualsactualemotions.
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7.3 CertainIssues
Cultureandemotion
TherearetwoViewsofCultureandEmotion:
Universality Emotions are part of human nature and in all cultures universally the same set of
basicemotions. Basedonhiscrossculturalresearch,Ekman(1999)hasfoundsixemotionswhich
areuniversallyrecognizedandapplicable.Theyare:
1. Anger
2. Fear
3. Sadness
4. Happiness
5. Disgust
6. Surprise.
Culturalspecificity Humanbeingsarelikeatabularasa(cleantablet)onwhichsocietywritesits
script. In other words, culture and traditions, normative patterns and valueorientations are
responsible for not only our personality development, but also appropriate social and emotional
development. This makes us functional entities in society. Each culture has a unique set of
emotions and emotional responses the emotions shown in a particular culture reflects the norms,
values,practices,andlanguageofthatculture.
Alexithymiaemotionaldisorder
Somepeoplehavedifficultyinexpressingtheiremotionsandunderstandingtheemotionsofothers.
Psychologistscallthisalexithymia.Peoplewhosufferfromalexithymiararelycryandareoftenseen
byothersasblandandcold.Theirownfeelingsmakethemuncomfortable,andtheyarenotableto
discriminate among their different emotions. People, suffering from alexithymia, may be effective
performersinjobswherelittleornoemotionallabor.Alexithymicsymptomsmaybeseeninpeople
whoexperience:
1. Posttraumaticstressdisorder
2. Certainbraininjuries
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3. Eatingdisorders(i.e.,bulimia,anorexia,orbingeeatingdisorder)
4. Substanceusedependence
5. Depression
6. Othermentalhealthconditions
Relationshipofgenderwithemotion
A number of research findings supports the view that women are more emotional than men (e.g.,
Broverman,Vogel,Broverman,Clarkson,&Rosenkrantz,1972Widiger&Settle,1987).Womenare
assumed to experience more frequent and intense emotions, whereas men are assumed to be
emotionally inexpressive and to have less intense emotional experiences. However, researchers
haveargued that thestereotype of menasunemotional is more accurateforadult targets thanfor
child targets because males learn to control their emotions as they get older (Fabes and Martin,
1991).Likewise,womenandmenmayexperiencehappinessinasimilarway,butwomenhavebeen
taughtthattheycanstronglyexpresstheemotionofhappiness,whereasmenhavebeentaughtto
control it. The impactof socializationpracticesaccumulateover time, and, thus,thesestereotypes
arelikelytoapplymorestronglytoadultpopulations(GeerandShields,1996).
1. Ekman(1999)hasfound_________emotionswhichareuniversallyrecognizedandapplicable.
2. Peoplewhosufferfrom_________rarelycryandareoftenseenbyothersasblandandcold
7.4 EmotionalIntelligence
The importanceofboth emotionand intelligence in making decisionsandachieving success in life
waswellacceptedinancientIndia. AconceptofSthithaprajna(emotionalstability),similartothe
conceptofemotionalintelligence,canbetracedinthesecondchapterofSrimadBhagavadGita'.
BhagavadGitaisaspecificconversationbetweenLordKrishnaandArjuna(thirdPandavaprince)in
a specific situation of Kurukshetra battlefield. Pandavas were fighting against the Kauravas, the
cousin brothers to restore their kingdom from Kauravas in Kurukshetra. Before the battle started,
Arjuna,withdeepsorrowandpity,foundhiscloserelatives,friendsandrespected'gurus'inenemy's
side.Towinthebattlehewassupposedtokillthosebelovedones.Hegotconfusedabouthisrightful
duty.Duetothishridaydurbalata(heartnonstrength),herefusedtojointhebattle.Inthiscontext,
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LordKrishnawhoplayedtheroleasthedriverofArjuna'schariot,enlightenedhimabouttheeternal
truth of life. According to Lord Krishna, as mentioned in Bhagavad Gita, Arjuna suffered from
indecisivenessresultingfromconfusionandafalsesenseofinsecurity.LordKrishna advisedArjuna
to become 'Sthithaprajna' (the steady minded person). He also told that an individual achieved
his/her goal only when the mind became steady, poised and balanced. Evidently, the concept of
Sthithaprajna (the steadyminded person) talked about a unique interdependence between
emotionandintelligenceforeffectivedecisionmakingwhichwasmostessentialinexcellinginevery
sphereoflife. Gita,asawhole,advisesalltobalancebetweenintelligenceandemotion.
Similar views on the role of emotional intelligence as a learning process for achieving a balanced
personalityindifferentstagesoflifeonanintergenerationalbasishasbeendepictedintheVedas.
Inparticular,Dr.Radhakrishnan,inhisbook,TheHinduViewofLife(1927)opinedthattheattitude
of the Vedas is one of trust tempered by criticism. Trust, because, whatever the older generation
hold,maybetrue,andcriticismbecause,however,plausiblethetestimoniesoftheoldviewsmaybe,
itcannotdenythepresentofitsrighttoenquireandsifttheevidence.Thisviewaptlypointsoutthe
needforemotionalintelligenceineverydaylifetobecomemoreemotionallybalancedandfunctional
individualsinsociety.
Emotionalintelligenceisanaggregateofindividualscognitionofownandothers'emotions,feeling,
interpretationandactionasperenvironmentaldemandtomanipulatetheconsequencewhichinturn
result in superior performance and better human relationship (Bhattacharya, 2003). Emotional
intelligence is a measure of the degree to which a person makes use of his/ her reasoning in the
process of emotional responses (both positive and negative) in a given situation. So having high
emotional intelligencedoesn't mean that the personnever panicsor loseshis/ her temper. It does
meanthathe/shebringsownfeelingsundercontrolandchannelsthemintoproductivebehaviors.
The ability to bring outofcontrol emotions back into line results in what earlier generations called
emotionalmaturity.
The most popular and accepted mixed model of emotional intelligence is the one proposed by
Goleman (1995). He viewed emotional intelligence as a total ofpersonal and social competences.
Personal competence determines how we manage ourselves, whereas social competence
determineshowwehandleourinterpersonalrelationships.
Personal competence: It comprises of three dimensions of emotional intelligence, such as, self
awareness, selfregulationand motivation. Selfawareness is theability of an individual to observe
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him/herselfandtorecognize'afeelingasithappens'(Goleman,1995).Thehallmarksofthisability
areselfconfidence,selfassessmentandopennesstopositivecriticism.Selfregulationistheability
tocontrolemotionsandtoredirectthoseemotionsthatcanhavenegativeimpact.Trustworthiness,
integrity,toleranceofambiguityandattitudetoacceptchangearesomecharacteristicsofthisability.
Motivation is the ability to channelize emotion to achieve a goal through selfcontrol and by
moderating impulses as per the requirement of the situation. The people who have this ability are
optimisticandcommittedtowardsorganizationalaswellasindividualgoals.
Socialcompetence:Itcomprisesoftwodimensionsnamely,empathyandsocialskills.Empathyis
theabilitytofeelandgetconcernedforothers,taketheirperspectiveandtotreatpeopleaccordingto
their emotional reactions. People with this ability are experts in generatingand motivating others.
Socialskillsaretheabilitytobuildrapportandtomanagerelationshipswithpeople.Peoplehaving
thisskillareveryeffectiveinpersuasivenessandteammanagement.Socialskillistheculmination
ofallothercomponentsofemotionalintelligenceassumingthatpeoplecaneffectivelymanagesocial
and work relationships only when they can understand and control their own emotion and can
emphasizewiththefeelingsofothers.
Golemansemotionalintelligencemodel(1995)
Emotionalintelligence
Personalcompetencesocialcompetence
SelfawarenessEmpathy
SelfregulationSocialskills
Motivation
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1. The mostpopular and accepted mixed model of emotional intelligence is the one proposedby
____________.
2. Personalcompetencecomprisesof______________dimensionsofemotionalintelligence.
3. Socialcompetencecomprisesof_____________dimensions
7.5 Summary
Emotion is used to designate "a state of consciousness having to do with the arousal of feelings
(Websters New World Dictionary)." It is "distinguished from other mental states, from cognition,
volition, and awareness of physical sensation." Feeling refers to "any of the subjective reactions,
pleasantorunpleasant"thatonemayexperienceinasituation.
There are many theories of emotion. JamesLange Theory proposes that subjective emotional
responses are the result of physiological changes within human bodies. CannonBard theory
proposes that emotionprovoking events induce the subjective emotional experiences and
physiological arousal simultaneously. SchachterSinger theory proposes that both feedback from
peripheralresponsesandacognitiveappraisalofwhatcausedthoseresponsesproduceemotions.
Howoneinterpretstheperipheralresponsewilldeterminetheemotionhe/shefeels.Accordingto
Lazarus'appraisaltheory,an individual makes an initialand sometimesunconsciouscognitive
appraisalofthesituationtodecide,ifthereisathreatcopingactionistakenifnecessaryandthe
individualtakesacloserlookandidentifiestheemotionsheorsheisfeeling.Weiner,inhistheory,
proposes that certain attributions produce specific emotions. Once the initial evaluation has been
made,theindividuallooksatwhatcausedtheevent.Theseattributionsofcausalitycanmodifythe
emotion felt. It is the interaction of the perceived internal and external causes, controllability and
outcome that will determine the emotional responses. Felt emotions are an individuals actual
emotions. Displayed emotions are those that are organizationally required and considered
appropriateinagivenjob.Theyarelearned.Feltanddisplayedemotionsmaybedifferent.Thisis
particularlytrueinorganizations,whereroledemandsandsituationsoftenrequirepeopletoexhibit
emotionalbehaviors that mask their truefeelings. There are twoViewsof CultureandEmotion. In
Universality view, it is believed that emotions are part of human nature and in all cultures
universallythesamesetofbasicemotions. Basedonhiscrossculturalresearch,Ekman(1999)has
found six emotions which are universally recognized and applicable. They are: Anger, Fear,
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Sadness,Happiness,Disgust,andSurprise.Womenareassumedtoexperiencemorefrequentand
intense emotions, whereas men are assumed to be emotionally inexpressive and to have less
intense emotional experiences. However, researchers have argued that the stereotype of men as
unemotionalismoreaccurateforadulttargetsthanforchildtargetsbecausemaleslearntocontrol
their emotions as they get older. Emotional intelligence is anaggregate of individuals cognitionof
own and others' emotions, feeling, interpretation and action as per environmental demand to
manipulate the consequence, which in turn, result in superior performance and better human
relationship. The most popular and accepted mixed model of emotional intelligence is the one
proposed by Goleman. He viewed emotional intelligence as a total of personal and social
competences. Personal competence determines how we manage ourselves, whereas social
competencedetermineshowwehandleourinterpersonalrelationships.
TerminalQuestions
1. BrieflyexplainLazarus'appraisaltheoryandWeiner'sattributiontheory.
2. Whatareuniversallyrecognizedemotions?
3. WhatisAlexithymia?Whatarethesymptomsofthisdisease?
4. Whatistherelationshipofgenderwithemotion?
5. ExplainGolemansemotionalintelligencemodel.
1. Physiological
2. Cognitive
3. Felt
1. Six
2. Alexithymia
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1. Goleman
2. Three
3. Two
1. Refersection7.2
2. Refersection7.3
3. Refersection7.3
4. Refersection7.3
5. Refersection7.4
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Unit8
Perception
Structure
8.1 Introduction
Objectives
8.2 Factorsinfluencingperception
8.3 AttributionTheory
8.4 ShortcutsinJudgingOthers
8.5 SpecificApplicationsinOrganizations
8.6 LinkbetweenPerceptionandIndividualDecisionMaking
8.7 TheDecisionMakingProcess
8.8 Summary
TerminalQuestions
AnswertoSAQsandTQs
8.1 Introduction
Individuals behave in agiven manner based not on the way their externalenvironmentactually, is
but, rather, on what they see or believe it to be. A supervisor may try to help his subordinates to
achievetheirtargetbyadvisingandsuggestingsolutions.Anemployeemaybelievethesupervisoris
controllingandinterfering.Asaresultofthat,theemployeemaycontinuouslytrytoavoidtheboss.
Thesamebossmaybeperceivedasafatherfiguretoanotheremployeeforhishelpingattitude.As
a result of that, the specific employee may acknowledge the supervisor and seeks his guidance.
These two employees perception about the supervisor that becomes the basis for their different
behavior. Perceptioncanbedefinedassaprocessbywhichindividualsorganizeandinterprettheir
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sensoryimpressionsinordertogivemeaningtotheirenvironment.Sincepeoplesbehaviorisbased
ontheirperceptionofwhatrealityis,notonrealityitself.
Individuals differ in their perceptions with regard to people and inanimate objects. An individual
makes inferences about theactions ofpeople not the same way asthey dofor inanimateobjects.
Nonliving objects are subject to the laws of nature. People have beliefs, motives, or intentions.
Therefore, an individuals perception and judgment of another persons actions are influenced by
theseassumptions.
Learningobjectives:
1. Factorsinfluencingperception
2. AttributionTheory
3. SpecificApplicationsinOrganizations
8.2 FactorsInfluencingPerception
Three factorsshapeperceptionofanindividual:
1. Perceiver
2. Target
3. Situation
Perceiver Refers to the most prevalent personal characteristics affecting perception of the
perceiver,whichareattitudes,motives,interests,pastexperiences,andexpectations.
Target . Characteristics of the target can also affect what is being perceived. This includes,
attractiveness,gregariousness,andanindividualstendencytogroupsimilarthingstogether.
Situation The context in which objects or events are seen by individuals also influence their
attention.Thisincludestime,heat,light,orothersituationalfactors.
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Selfassessmentquestions1
1. _____________factorsshapeperceptionofanindividual.
2. The______________inwhichobjectsoreventsareseenbyindividualsalsoinfluencetheir
attention.
8.3 AttributionTheory
Animportantelementinperceptionisattributionprocess.Attributiontheory(Kelley,1972)suggests
thatwhenweobserveanindividualsbehavior,weattempttodeterminewhetheritwasinternallyor
externallycaused.Internallycausedbehaviorsarethosethatarebelievedtobeunderthepersonal
controloftheindividual.Externallycausedbehaviorisseenasresultingfromoutsidecausesthatis,
thepersonisseenashavingbeenforcedintothebehaviorbythesituation.
Therearethreedeterminingfactorsinthisregard:
Distinctiveness
Consensus
Consistency
Distinctiveness refers to whether an individual displays different behaviors in different situations.

Whatweattempttoknowiswhethertheobservedbehaviorisunusual.Ifitis,theobserverislikelyto
give the behavior anexternal attribution. If this action is not unusual, it will probably be judged as
internal.
Consensusoccurs,if,everyonewhoisfacedwithasimilarsituationrespondsinthesameway.If
consensusishigh,onewouldbeexpectedtogiveanexternalattributiontotheemployeestardiness,
whereas, in case of other employees taking the same route and making it work on time, the
causationforthesamewillbeattributedtointernalcausation.
Consistency refers to the pattern that is reflected regularly in a persons actions. Does the person
respond the same way over time? The more consistent the behavior, the more the observer is
inclinedtoattributeittointernalcauses.
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FundamentalAttributionError(Ross,1977)
Research evidence shows that individuals have a tendency to underestimate the influence of
external factors and overestimate the influence of internal or personal factors. There is also a
tendencyforindividualstoattributetheirownsuccessestointernalfactors,suchas,abilityoreffort
whileputtingtheblameforfailureonexternalfactors,suchas,luck.Thisiscalledtheselfserving
biasandsuggeststhatfeedbackprovidedtoemployeeswillbedistortedbyrecipients.Thequestion
iswhetherornottheseerrorsorbiasesthatdistortattributionareuniversalacrossdifferentcultures?
While exact answers may not exist, there is some preliminary evidence that indicates cultural
differences(Robbins,2003):
Korean managers found that, contrary to the selfserving bias, they tended to accept
responsibilityforgroupfailure.
Attribution theory was developed largely based on experiments with Americans and Western
Europeans.
The Korean study suggests caution in making attribution theory predictions in nonWestern
societies, especially in countries with strong collectivist traditions. More studies are required to
provideconclusiveevidencesinthisregard.
1. Attributiontheorywasproposedby__________Kelley
2. ___________occurs,if,everyonewhoisfacedwithasimilarsituationrespondsinthesameway.
3. Thetendencyofindividualstoattributetheirownsuccessestointernalfactorsis
called__________________.
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8.4:ShortcutsInJudgingOthers
Individualshaveatendencytouseanumberofshortcutswhentheyjudgeothers.Anunderstanding
oftheseshortcutscanbehelpfultowardrecognizingwhentheycanresultinsignificantdistortions.
SelectivePerception
Anycharacteristicthatmakesaperson,object,oreventstandoutwillincreasetheprobabilitythatit
willbeperceived.Itisimpossibleforanindividualtointernalizeandassimilateeverythingthatisseen
.Only certain stimuli can be taken in selectively. Selectivity works as a shortcut in judging other
people by allowing us to speedread others, but, not without the risk of drawing an inaccurate
picture.Thetendencytoseewhatwewanttoseecanmakeusdrawunwarrantedconclusionsfrom
anambiguoussituation.
HaloEffect
Thehaloeffect(Murphy&Anhalt,1992)occurswhenwedrawageneralimpressiononthebasisof
asinglecharacteristic.Forexample,whileappraisingthelecturer,studentsmaygiveprominenceto
asingletrait,suchas,enthusiasmandallowtheirentireevaluationtobetaintedbyhowtheyjudge
the instructor on that one trait which stood out prominently in their estimation of that person.
Researchsuggeststhatitislikelytobemostextremewhenthetraitstobeperceivedareambiguous
inbehavioralterms,whenthetraitshavemoralovertones,andwhentheperceiverisjudgingtraits
withwhichheorshehashadlimitedexperience.
ContrastEffects
Individualsdonotevaluateapersoninisolation.Theirreactiontoonepersonisinfluencedbyother
persons they have encountered recently. For example, an interview situation in which one sees a
pool of job applicants can distort perception. Distortions in any given candidates evaluation can
occurasaresultofhisorherplaceintheinterviewschedule.
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Projection
Thistendencytoattributeonesowncharacteristicstootherpeoplewhichiscalledprojectioncan
distortperceptionsmadeaboutothers.Whenmanagersengageinprojection,theycompromisetheir
abilitytorespondtoindividualdifferences.Theytendtoseepeopleasmorehomogeneousthanthey
reallyare.
Stereotyping
Stereotypingjudging someone on the basis of our perception of the group to which he or she
belongs.Generalizationisnotwithoutadvantages(Hilton&Hippel,1996).Itisameansofsimplifying
a complex world, and it permits us to maintain consistency. The problem, of course, is when we
inaccurately stereotype. In organizations, we frequently hear comments that represent stereotypes
based on gender, age, race, ethnicity, and even weight. From a perceptual standpoint, if people
expecttoseethesestereotypes,thatiswhattheywillperceive,whetherornottheyareaccurate.
1. The______________occurswhenwedrawageneralimpressiononthebasisofasingle
characteristic.
2. Theprocessthroughwhichonesreactionisinfluencedbyotherpersonshehasencountered
recentlyiscalled___________
3. Thistendencytoattributeonesowncharacteristicstootherpeopleiscalled__________
8.5 SpecificApplicationsInOrganizations
EmploymentInterview
Evidenceindicatesthatinterviewersmakeperceptualjudgmentsthatareofteninaccurateandthey
rarelyagreewhileperceivingthecandidates.Differentinterviewersseedifferentthingsinthesame
candidate and, thus, reach different conclusions about the applicant. Furthermore, interviewers
generallydraw early impressionsand most interviewers rarely change theirdecisions afterthefirst
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fourorfiveminutesoftheinterview.Therefore,judgmentsofthesamecandidatecanvarywidelyin
aninterviewsituatiion.
PerformanceExpectations
Itisseenthatindividualsseektovalidatetheirperceptionsofreality,evenwhenthoseperceptions
are not appropriate. Selffulfilling prophecy is a very good example of this. It is the tendency for
someonesexpectationsaboutanothertocausethatpersontobehaveinamannerconsistentwith
thoseexpectations(Wilkins,1976).Selffulfillingprophecycanbeoftwotypes:
Pygmalion Effect: A positive instance of the selffulfilling prophecy, in which people holding high
expectationsofanothertendtoimprovethatindividualsperformance.
Golem Effect: A negative instance of the selffulfilling prophecy, in which people holding low
expectationsofanothertendtolowerthatindividualsperformance.
Astudywasconductedon105soldiersintheIsraeliDefenseForceswhoweretakingafifteenweek
combat command course. Soldiers were randomly dividedand identifiedas having high potential,
normalpotential,andpotentialnotknown.Instructorswereseemedtogetbetterresultsfromthehigh
potentialgroupbecausetheyexpectedit,confirmingtheeffectofaselffulfillingprophecy.
PerformanceEvaluation
Anemployeesperformanceappraisalisverymuchdependentontheperceptualprocess.Although
the appraisal can be objective, many jobs are evaluated in subjective terms. Subjective measures
are,bydefinition,judgmental.Tothedegreethatmanagersusesubjectivemeasuresinappraising
employees, what theevaluator perceives to be good or bad employee characteristicsor behaviors
willsignificantlyinfluencetheoutcomeoftheappraisal.
EmployeeEffort
An individuals future in an organization is usually not dependent on performance alone. An
assessmentofanindividualseffortisasubjectivejudgmentsusceptibletoperceptualdistortionsand
bias.
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1. ___________isthetendencyforsomeonesexpectationsaboutanothertocausethatpersonto
behaveinamannerconsistentwiththoseexpectations.
2. Anegativeinstanceoftheselffulfillingprophecyiscalled_________________.
8.6 LinkBetweenPerceptionAndIndividualDecisionMaking
Decisionmakingoccursas a reaction to a problem. Problem is definedas adiscrepancy between
some current state of affairs and some desired state, needing attention for alternative courses of
action.Theawarenessthataproblemexistsandthatadecisionneedstobemadeisaperceptual
issue. Every decision requires interpretation and evaluation of information. The perceptions of the
decisionmakerwilladdressthesetwoissues.
Dataaretypicallyreceivedfrommultiplesources.
Whichdataarerelevanttothedecisionandwhicharenot
Alternativeswillbedeveloped,andthestrengthsandweaknessesofeachwillneedtobeevaluated.
For example, senior managers determine their organizations goals, what products or services to
offer, how best to finance operations, or where to locate a new manufacturing plant. Middle and
lowerlevelmanagersdetermineproductionschedules,selectnewemployees,anddecidehowpay
raisesaretobeallocated.Nonmanagerialemployeesalsomakedecisions,including,whetherornot
tocometoworkonanygivenday,howmuchefforttoputforwardonceatwork,andwhetherornot
tocomplywitharequestmadebytheboss.
1. Decisionmakingoccursasareactiontoa______________.
2. Whilemakingadecision,dataaretypicallyreceivedfrom____________sources
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8.7 TheDecisionMakingProcess
The optimizing decision maker is rational. He or she makes consistent, valuemaximizing choices
withinspecifiedconstraints.Thisalsoincludestheresourcecrunchandotherlimitationsaswell.
Therationaldecisionmakingmodel
Thismodelproposessixsteps,whichareasfollows:
Step1:Definingtheproblem
Aproblemisadiscrepancybetweenanexistingandadesiredstateofaffairs.
Manypoordecisionscanbetracedtothedecisionmakeroverlookingaproblemordefiningthe
wrongproblem.
Step2:Identifythedecisioncriteriaimportanttosolvingtheproblem.
Thedecisionmakerdetermineswhatisrelevantinmakingthedecision.Anyfactorsnotidentified
inthisstepareconsideredirrelevanttothedecisionmaker.
Thisbringsinthedecisionmakersinterests,values,andsimilarpersonalpreferences.
Step 3: Weight the previously identified criteria in order to give them the correct priority in the
decision.
Step4:Generatepossiblealternativesthatcouldsucceedinresolvingtheproblem.
Step5:Ratingeachalternativeoneachcriterion.
Criticallyanalyzeandevaluateeachalternative.
The strengths and weaknesses of eachalternative become evident asthey are compared with
thecriteriaandweightsestablishedinthesecondandthirdsteps.
Step6:Thefinalstepistocomputetheoptimaldecision:
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Evaluating each alternative against the weighted criteria and selecting the alternative with the
highesttotalscore.
Theabovementionedmodelworkswithfollowingassumptions(March,1994):
Problem clarity. The decision maker is assumed to have complete information regarding the
decisionsituation.
Knownoptions. It isassumed thedecision maker is aware of allthepossible consequencesof

eachalternative.
Clear preferences. Criteria and alternatives can be ranked and weighted to reflect their
importance.
Constant preferences.Specific decision criteria are constantand the weightsassigned to them

arestableovertime.
Notimeorcostconstraints.Therationaldecisionmakercanobtainfullinformationaboutcriteria
andalternativesbecauseitisassumedthattherearenotimeorcostconstraints.
Maximumpayoff.Therationaldecisionmakerwillchoosethealternativethatyieldsthehighest
perceivedvalue.
CreativityinDecisionMaking
Creativityistheabilitytoproducenovelandusefulideas.Theseareideasthatarenotonlydifferent
from what has been done before, but, that are also appropriate to the problem or opportunity
presented. People differ in their inherent creativity. A study of lifetime creativity of 461 men and
women found that fewer than one percent were exceptionally creative. Ten percent were highly
creative,andaboutsixtypercentweresomewhatcreative.
Modelofcreativity
This model proposes that individual creativityessentially requires expertise, creativethinking skills,
andintrinsictaskmotivation.
Expertise is the foundation for all creative work. The potential for creativity is enhanced when
individualshaveabilities,knowledge,proficiencies,andsimilarexpertiseintheirfieldofendeavor.
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Creative thinking skills. Thisencompassespersonalitycharacteristicsassociated with creativity,

theabilitytouseanalogies,aswellasthetalenttoseethefamiliarinadifferentlight.
Intrinsic task motivation. The desire to work on something because it is interesting, involving,
exciting, satisfying, or personally challenging. This turns creativity potential into actual creative
ideas.Itdeterminestheextenttowhichindividualsfullyengagetheirexpertiseandcreativeskills
Most decisions in the real world do notfollow the rational model. Decisionmakersgenerally make
limited use of their creativity. Choices tend to be confined to the neighborhood of the problem
symptomandtotheneighborhoodofthecurrentalternative.
Twoofthemostimportantwaysofdecisionmakinginorganizationsare:
BoundedRationality
Intuitivedecisionmaking
Boundedrationality
When faced with a complex problem, most people respond by reducing the problem to a level at
which it can be readily understood, due to limited informationprocessing capability. As a result,
peopleseeksolutionsthataresatisfactoryandsufficient.Thisiscalledboundedrationality(Simon,
1947). Individuals operate within the confines of bounded rationality. They construct simplified
modelsthatextracttheessentialfeatures.
How does bounded rationality work? Once a problem is identified, the search for criteria and
alternativesbegins.Thedecisionmakerwillidentifyalimitedlistmadeupofthemoreconspicuous
choices,whichareeasytofind,tendtobehighlyvisible,andtheywillrepresentfamiliarcriteriaand
previously triedandtrue solutions. Once this limited set of alternatives is identified, the decision
maker will begin reviewing it. The decisionmaker will begin with alternatives that differ only in a
relativelysmalldegreefromthechoicecurrentlyineffect.Thefirstalternativethatmeetsthegood
enough criterion ends the search. The order in which alternatives are considered is critical in
determining which alternative is selected. Assuming that a problem has more than one potential
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solution, the satisficing choice will be the first acceptable one the decisionmaker encounters.
Alternativesthatdeparttheleastfromthestatusquoarethemostlikelytobeselected.
Intuitivedecisionmaking
It is an unconscious process created out of distilled experience. It operates in complement with

rationalanalysis.Ononehand,someresearchersconsideritaformofextrasensorypowerorsixth
sense,andontheotherhand,somebelieveitisapersonalitytraitthatalimitednumberofpeople
arebornwith.
Eightconditionswhenpeoplearemostlikelytouseintuitivedecisionmakingare:
whenahighlevelofuncertaintyexists
whenthereislittleprecedenttodrawon
whenvariablesarelessscientificallypredictable
whenfactsarelimited
whenfactsdonotclearlypointthewaytogo
whenanalyticaldataareoflittleuse
when thereare several plausible alternative solutionsto choosefrom, withgoodargumentsfor

each
whentimeislimited,andthereispressuretocomeupwiththerightdecision
Decisionmakingprocess
A.ProblemIdentification
Problems that are visible tend to have a higher probability of being selected than ones that are
important.Visibleproblemsaremorelikelytocatchadecisionmakersattention.Ifadecisionmaker
faces a conflict between selecting a problem that is important to the organization and one that is
importanttothedecisionmaker,selfinteresttendstowinout.Thedecisionmakersselfinterestalso
playsapart.Whileselectingadecisiontosolveaproblem,decisionmakerputsmoreimportanceto
his/herselfinterestovertheorganizationalinterest.
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B.AlternativeDevelopment
Sincedecisionmakersseekasatisficingsolution,thereisaminimaluseofcreativityinthesearchfor
alternatives. Efforts tend to be confined to the neighborhood of the current alternative. Evidence
indicates that decisionmaking is incremental rather than comprehensive. Decisionmakers make
successive limited comparisons. The picture that emerges is one of a decisionmaker who takes
smallstepstowardhisorherobjective.
C.MakingChoices
In order to avoid information overload, decisionakers rely on heuristics or judgmental shortcuts in
decision making.
There are two common categories of heuristicsavailability and
representativeness.Eachcreatesbiasesinjudgment.
TheavailabilityheuristicItisthetendencyforpeopletobasetheirjudgmentsoninformationthatis
readily available to them. Events that evoke emotions, that are particularly vivid, or that have
occurredmorerecentlytendtobemoreavailableinourmemory.Foreexample,manymorepeople
sufferfromfearofflyingthanfearofdrivinginacar.
Representative heuristic To assess the likelihood of an occurrence by trying to match it with a
preexistingcategory,managersfrequentlypredicttheperformanceofanewproductbyrelatingittoa
previousproductssuccess.
D. Escalationofcommitment
Itisanincreasedcommitmenttoapreviousdecisioninspiteofnegativeinformation.Ithasbeenwell
documented that individuals escalate commitment to a failing course of action when they view
themselvesasresponsibleforthefailure.
E.IndividualDifferences:DecisionMakingStyles
People differ along twodimensions. Thefirst is their way of thinking.Some peopleare logical and
rational. They process information serially. Some people are intuitive and creative. They perceive
thingsasawhole.Theotherdimensionisapersonstoleranceforambiguity.Somepeoplehavea
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highneedtominimizeambiguity.Othersareabletoprocessmanythoughtsatthesametime.These
fourdecisionmakingstylescanberepresentedinthefollowingway:
Directive:
Lowtoleranceforambiguityandseekrationality
Efficientandlogical
Decisionsaremadewithminimalinformationandwithfewalternativesassessed.
Makedecisionsfastandfocusontheshortrun.
Analytic:
Greatertoleranceforambiguity
Desireformoreinformationandconsiderationofmorealternatives
Best characterized as careful decision makers with the ability to adapt to or cope with new
situations
Conceptual:
Tendtobeverybroadintheiroutlookandconsidermanyalternatives
Theirfocusislongrange,andtheyareverygoodatfindingcreativesolutionstoproblems.
Behavioral:
Characterizesdecisionmakerswhoworkwellwithothers
Concerned with the achievement of peers and subordinates and are receptive to suggestions
fromothers,relyingheavilyonmeetingsforcommunicating
Triestoavoidconflictandseeksacceptance
F.OrganizationalConstraints
Followingaretheorganizationalconstraintsthataffectdecisionmakers.
PerformanceevaluationManagersarestronglyinfluencedintheirdecisionmakingbythecriteria
bywhichtheyareevaluated.Theirperformanceindecisionmakingwillreflectexpectation.
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Reward systems The organizations reward system influences decision makers by suggesting to
themwhatchoicesarepreferableintermsofpersonalpayoff.
ProgrammedroutinesAll,butthesmallestoforganizationscreaterules,policies,procedures,and
otherformalizedregulationsinordertostandardizethebehavioroftheirmembers.
Time constraints Decisions must be made quickly in order to stay ahead of the competition and
keepcustomerssatisfied.Almostallimportantdecisionscomewithexplicitdeadlines.
Historical Precedents Decisions have a context. Individual decisions are more accurately
characterized as points in a stream of decisions. Decisions made in the past are ghosts which
continuallyhauntcurrentchoices.Itiscommonknowledgethatthelargestdeterminingfactorofthe
sizeofanygivenyearsbudgetislastyearsbudget.
CulturalDifferencesTheculturalbackgroundofthedecisionmakercanhavesignificantinfluence
on:
EthicsinDecisionMaking
Ethicalconsiderationsshouldbeanimportantcriterioninorganizationaldecisionmaking.Thereare
threeEthicalDecisionCriteria:
1. Utilitariancriteriondecisionsaremadesolelyonthebasisoftheiroutcomesorconsequences.
Thegoalofutilitarianismistoprovidethegreatestgoodforthegreatestnumber.Thisviewtends
todominatebusinessdecisionmaking.
2. Focusonrightscallsonindividualstomakedecisionsconsistentwithfundamentallibertiesand
privilegesassetforthindocumentssuchastheBillofRights.
Anemphasisonrightsmeansrespectingandprotectingthebasicrightsofindividuals,suchas
therighttoprivacy,tofreespeech,andtodueprocess.
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3.Focusonjusticerequiresindividualstoimposeandenforcerulesfairlyandimpartially.Thereis
anequitabledistributionofbenefitsandcosts.
1. Therationaldecisionmakingmodelproposes_______________steps.
2. Peoplerespondtoaproblemwithalimitedinformationprocessingcapability.Asaresult,people
seeksolutionsthataresatisfactoryandsufficient.Thisiscalled__________________
8.8 Summary
Individuals behave in agiven manner based not on the way their externalenvironmentactually, is
but,rather,onwhattheyseeorbelieveittobe.Perceptioncanbedefinedassaprocessbywhich
individuals organize and interpret their sensory impressions in order to give meaning to their
environment. Since peoplesbehavior is based on their perception of what reality is, not on reality
itself. Three factors that shape perception of an individual are perceiver, target and situation. An
importantelementinperceptionisattributionprocess.Attributiontheory(Kelley,1972)suggeststhat
when we observe an individuals behavior, we attempt to determine whether it was internally or
externallycaused.Internallycausedbehaviorsarethosethatarebelievedtobeunderthepersonal
controloftheindividual.Externallycausedbehaviorisseenasresultingfromoutsidecausesthatis,
thepersonisseenashavingbeenforcedintothebehaviorbythesituation.
Research evidence shows that individuals have a tendency to underestimate the influence of
external factors and overestimate the influence of internal or personal factors. There is also a
tendencyforindividualstoattributetheirownsuccessestointernalfactors,suchas,abilityoreffort
whileputtingtheblameforfailureonexternalfactors,suchas,luck.Thisiscalledtheselfserving
bias and suggests thatfeedback providedtoemployees will bedistorted by recipients. Individuals
haveatendencytouseanumberofshortcutswhentheyjudgeothers.Anunderstandingofthese
shortcuts can be helpful toward recognizing when they can result in significant distortions. Any
characteristicthatmakesaperson,object,oreventstandoutwillincreasetheprobabilitythatitwill
be perceived. It is impossiblefor an individual to internalize and assimilate everything that is seen
.Only certain stimuli can be taken in selectively. The halo effect (Murphy & Anhalt, 1992) occurs
when we draw a general impression on the basis of a single characteristic. Individuals do not
evaluateapersoninisolation.Theirreactiontoonepersonisinfluencedbyotherpersonstheyhave
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encounteredrecently.Thistendencytoattributeonesowncharacteristicstootherpeoplewhichis
calledprojectioncandistortperceptionsmadeaboutothers.Whenmanagersengageinprojection,
theycompromisetheirabilitytorespondtoindividualdifferences.Theytendtoseepeopleasmore
homogeneousthantheyreallyare.Stereotypingistheprocessofjudgingsomeoneonthebasisof
our perception of the group to which he or she belongs. Generalization is not without advantages
(Hilton&Hippel,1996).Decisionmakingoccursasareactiontoaproblem.Problemisdefinedasa
discrepancy between some current state of affairs and some desired state, needing attention for
alternativecoursesofaction.Theawarenessthataproblemexistsandthatadecisionneedstobe
madeisaperceptualissue.Everydecisionrequiresinterpretationandevaluationofinformation.The
optimizingdecisionmakerisrational.Heorshemakesconsistent,valuemaximizingchoiceswithin
specified constraints. This also includes the resource crunch and other limitations as well. Most
decisionsintherealworlddonotfollowtherationalmodel.Decisionmakersgenerallymakelimited
useoftheircreativity.Choicestendtobeconfinedtotheneighborhoodoftheproblemsymptomand
to the neighborhood of the current alternative. When faced with a complex problem, most people
respond by reducing the problem to a level at which it can be readily understood, due to limited
informationprocessing capability. As a result, people seek solutions that are satisfactory and
sufficient.Thisiscalledboundedrationality(Simon,1947).Individualsoperatewithintheconfinesof
boundedrationality.Theyconstructsimplifiedmodelsthatextracttheessentialfeatures.
Terminalquestions
1. ExplainKelleysattributiontheory.
2. ExplainHaloeffectandcontrasteffectwithexamples.
3. Describetherationaldecisionmakingprocess.
4. Whatisboundedrationality?
AnswersToSelfAssessmentQuestionss
1.Three
2.Context
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1.Kelley
2.Consensus
3.Selfservingbias.
1.Haloeffect
2.Contrasteffect
3.Projection
1. Selffulfillingprophecy
2.GolemEffect
1.Problem
2.Multiple
1.Six
2.Boundedrationality
1.Refersection8.3
2.Refersection8.4
3.Refersection8.7
4.Refersection8.7
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Unit9
Motivation
Structure
9.1 Introduction
Objectives
9.2 EarlyTheoriesofMotivation
9.3ContemporaryTheoriesofMotivation
9.4Motivatingemployeesinorganizations
9.5 Motivationaltools
9.6 SpecialIssuesinMotivation
9.7 Summary
TerminalQuestions
AnswertoSAQsandTQs
9.1 Introduction
Manypeopleincorrectlyviewmotivationasapersonaltraitthatis,somehaveitandothersdonot.
Motivation is the result of the interaction of the individual and the situation. Motivation is the
processes that account for an individuals intensity, direction, and persistence of effort toward
attaining a goal (Robbins, 2003). Intensity is concerned with how hard a person tries. This is the
elementmostofusfocusonwhenwetalkaboutmotivation.Directionistheorientationthatbenefits
the organization. And Persistence is a measure of how long a person can maintain his/her effort.
Motivatedindividualsstaywithatasklongenoughtoachievetheirgoal.
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Learningobjectives:
1. TheoriesofMotivation
2. SpecialIssuesinMotivation
9.2:EarlyTheoriesOfMotivation
In the 1950s three specifictheories wereformulated andarethe best known: Hierarchyof Needs
theory,TheoriesXandY,andtheTwoFactortheory.
MaslowsHierarchyofNeedsTheory
Accordingtothistheory,proposedbyMaslow(1943),humanbeingshavewantsanddesireswhich
influencetheirbehaviouronlyunsatisfiedneedscaninfluencebehavior,satisfiedneedscannot.The
needsarearrangedinorderofimportance,fromthebasictothecomplex.Thepersonadvancesto
thenextlevelofneedsonlyafterthelowerlevelneedisatleastminimallysatisfied.Thefurtherthey
progressupthehierarchy,themoreindividuality,humannessandpsychologicalhealthapersonwill
show.Thefiveneedsare:
Physiological:Includeshunger,thirst,shelter,sex,andotherbodilyneeds
Safety:Includessecurityandprotectionfromphysicalandemotionalharm
Social:Includesaffection,belongingness,acceptance,andfriendship
Esteem:Includesinternalesteemfactors,suchas,selfrespect,autonomy,andachievementand
externalesteemfactors,suchas,status,recognition,andattention
Selfactualization: The drive to become what one is capable of becoming includes growth,
achievingonespotential,andselffulfillment
Maslowseparatedthefiveneedsintohigherandlowerorders.Physiologicalandsafetyneedsare
describedaslowerorder.Social,esteem,andselfactualizationareclassifiedashigherorderneeds.
Higherorderneedsaresatisfiedinternally,whereas,Lowerorderneedsarepredominantlysatisfied,
externally.
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TheoryXandTheoryY
Douglas McGregor argued that a managers view of the nature of human beings is based on a
certaingroupingofassumptionsandheorshetendstomouldhisorherbehaviortowardemployees
accordingtotheseassumptions.
TheoryX
Inthistheorymanagementassumesemployeesareinherentlylazyandwillavoidwork,iftheycan.
Workersneedtobecloselysupervisedandacomprehensivesystemofcontrolsandahierarchical
structureisneededtosupervisetheworkersclosely.Itisalsoassumedthatworkersgenerallyplace
securityaboveallotherfactorsandwilldisplaylittleambition.
TheoryY
Inthistheorymanagementassumesemployeesmaybeambitious,selfmotivated,anxioustoaccept
greater responsibility, and exercise selfcontrol, selfdirection, autonomy and empowerment. It is
believedthatemployeesenjoytheirmentalandphysicalworkduties.Itisalsobelievedthat,ifgiven
thechanceemployeeshavethedesiretobecreativeandforwardthinkingintheworkplace.Thereis
a chance for greater productivity by giving employees the freedom to perform to the best of their
abilitieswithoutbeingboggeddownbyrules.
From the above, it is clear that Theory X assumes that lowerorder needs dominate individuals.
TheoryYassumesthathigherorderneedsdominateindividuals.
HerzbergsTwoFactortheory
Herzberg(1959)constructedatwodimensionalparadigmoffactorsaffectingpeople'sattitudesabout
work.Thesetwofactorsaremotivatorsandhygienefactorsandthistheoryisalsocalledmotivation
hygienetheory.
Motivatorsareintrinsicfactors,suchas,advancement,recognition,responsibility,andachievement.
Presence of these factors ensure job satisfaction. Extrinsic factors, such as, company policy,
supervision, interpersonal relations, working conditions, and salary are hygiene factors. The
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absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or
createsatisfaction.
Insummary,motivatorsdescribeaperson'srelationshipwithwhatsheorhedoes,manyrelatedto
thetasksbeingperformed.Hygienefactorsontheotherhand,havetodowithaperson'srelationship
to the context or environment in which she or he performs the job. The satisfiers relate to what a
persondoeswhilethedissatisfiers relate to thesituation inwhich theperson doeswhathe orshe
does.
Removingdissatisfyingcharacteristicsfromajobdoesnotnecessarilymakethejobsatisfying.Job
satisfactionfactors are separate and distinctfrom jobdissatisfactionfactors.Whenhygienefactors
are adequate, people will not be dissatisfied neither will they be satisfied. To motivate people,
emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes
directlyderivedfromit.
1.InMaslowstheory,_____________needsincludehunger,thirst,shelter,sex,andotherbodily
needs
2.Intheory__________,managementassumesemployeesareinherentlylazyandwillavoidwork
3.AccordingtoHerzberg,motivatorsare____________factors.
9.3 ContemporaryTheoriesOfMotivation
Thefollowingtheoriesareconsideredcontemporary,sincetheyrepresentthecurrentstateoftheart
inexplainingemployeemotivation
ERGTheory
Alderfer(1972)classifiesneedsintothreecategoriesintohierarchicalorder.Theyare:
Theexistencecategory
Providesourbasicmaterialexistencerequirements.
TheyincludeMaslowsphysiologicalandsafetyneeds.
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Relatednesscategory
1 Thedesirewehaveformaintainingimportantinterpersonalrelationships.
2 Thesesocialandstatusdesiresrequireinteractionwithothers.
3 TheyalignwithMaslowssocialneedandtheexternalcomponent.
Growthcategory
Anintrinsicdesireforpersonaldevelopment.
TheseincludetheintrinsiccomponentfromMaslowsesteemcategory,andthecharacteristics
includedunderselfactualization.
This theory is very similar to Maslows theory. Existence need corresponds with Maslows
physiological and safety needs, Relatedness need corresponds with Maslows social needs and
GrowthneedcorrespondswithMaslowsesteemandselfactualizationneeds.
AlderfersERGtheorydiffersfromMaslowsinthefollowingarguments:
1 Morethanoneneedmaybeoperativeatthesametime.
2 If, the gratification of a higherlevel need is stifled, the desire to satisfy a lowerlevel need
increases.
3 ERG theory does not assume that there exists a rigid hierarchy. A person can be working on
growtheventhoughexistenceorrelatednessneedsareunsatisfied,orallthreeneedcategories
couldbeoperatingatthesametime.
ERGtheoryalsocontainsafrustrationregressiondimension.Maslowarguedthatanindividualwould
stayatacertainneedleveluntilthatneedwassatisfied.ERGarguesthatmultipleneedscanbe
operatingasmotivatorsatthesametime.ERGtheorynotesthatwhenahigherorderneedlevelis
frustrated,theindividualsdesiretoincreasealowerlevelneedtakesplace(Robbins,2003).
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McClellandsTheoryofNeeds
McClellands (1961) theory focuses on three needs: achievement, power, and affiliation. They are
definedasfollow:
Needforachievement(nAch)Theneedtoexcelandtoachieveinrelationtoasetofstandards,
tostrivetosucceed.
Need for power (nPow): The need to make others behave in a way that they would not have
behaved,otherwise.
Needforaffiliation(nAff):Thedesireforfriendlyandcloseinterpersonalrelationships.
Peoplewithhighneedforachievementhaveacompellingdrivetosucceed.Theyhaveadesiretodo
something better or more efficiently than it has been done before. This drive is the achievement
need. Highachieversdifferentiate themselvesfrom others bytheir desire todothingsbetter. They
seeksituationsinwhichtheycanattainpersonalresponsibilityforfindingsolutionstoproblems.
Individualshighinneedforpowerenjoybeinginchargeofanysituation.Theystriveforinfluence
over others and prefer to be placed into competitive and statusoriented situations. They arealso
moreconcernedwithprestigeandgaininginfluenceoverothersthanwitheffectiveperformance.
Individuals with high need for affiliation motive strive for friendship, prefer cooperative situations
rather than competitive ones, and desire relationships that involve a high degree of mutual
understanding.
Basedonthistheory,thefollowingassumptionscanbemade(Robbins,2003):
Individuals with a high need to achieve prefer job situations with personal responsibility,
feedback, and an intermediate degree of risk. When these characteristics are prevalent, high
achieverswillbestronglymotivated.
Ahighneedtoachievedoesnotnecessarilyleadtobeingagoodmanager,especiallyinlarge
organizations.Peoplewithahighachievementneedareinterestedinhowwelltheydopersonally
andnotininfluencingotherstodowell.
Theneedsfor affiliation andpower tendtobe closely related to managerial success. The best
managersarehighintheirneedforpowerandlowintheirneedforaffiliation.
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CognitiveEvaluationTheory
Thistheoryproposes(Deci&Ryan,1985)thatwhenextrinsicrewardsareusedbyorganizationsas
payoffsforsuperiorperformance,theintrinsicrewards,whicharederivedfromindividualsdoingwhat
they like, are reduced. The popular explanation is that the individual experiences a loss of control
over hisor her own behavior sothat the previous intrinsic motivation diminishes. Furthermore,the
eliminationofextrinsicrewardscanproduceashiftfromanexternaltoaninternalexplanationin
anindividualsperceptionofcausationofwhyheorsheworksonatask(Robbins,2003).Therefore,
payorotherextrinsicrewardsshouldbemadecontingentonanindividualsperformance.
Thistheorymayhavelimitedapplicabilitytoworkorganizations,becausemostlowleveljobsarenot
inherently satisfying enough tofoster high intrinsic interest, and many managerialandprofessional
positionsofferintrinsicrewards
GoalSettingTheory
LockeandLatham(1990)proposedthatchallenginggoalsproduceahigherlevelofoutputthando
thegeneralizedgoals.Moredifficultthegoal,thehigherthelevelofperformancewillbe.Peoplewill
dobetterwhentheygetfeedbackonhowwelltheyareprogressingtowardtheirgoals.Agoalserves
as a motivator, because, it causes people to compare their present capacity to perform with that
requiredtosucceedatthegoal.
Therearefourcontingenciesingoalsettingtheory:
1 Goalcommitment:Goalsettingtheorypresupposesthatanindividualiscommittedtothegoal.
1 Adequateselfefficacy:Selfefficacyreferstoanindividualsbeliefthatheorsheiscapableof
performingatask.Thehigheryourselfefficacy,themoreconfidenceyouhaveinyourabilityto
succeedinatask.
2 Taskcharacteristics:Individualgoalsettingdoesnotworkequallywellonalltasks.Goalsseem
to have a more substantial effect on performance when tasks are simple, welllearned, and
independent.
3 National culture: Goalsetting theory is culture boundand it is welladapted to NorthAmerican
cultures.
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ReinforcementTheory
Reinforcement theory (Komaki et. al., 1991) argues that reinforcement conditions human behavior.
According to this theory, behavior is a function of its consequences. Behavior is environmentally
caused.Itcanbemodified(reinforced)byproviding(controlling)consequences.Reinforcedbehavior
tendstoberepeated.
EquityTheory
Accordingtothistheory(Adams,1965),employeesmakecomparisonsoftheirjobinputsand
outcomesrelativetothoseofothers.If,anindividualperceivestheinputoutcomeratiotobeequalto
thatoftherelevantotherswithwhomhe/shecompareshis/herself,astateofequityissaidtoexist.
He/sheperceivesthesituationasfair.Iftheratioappearstobeunequal,theindividualexperience
inequity.
Therearefourreferentcomparisonsthatanemployeecanuse:
Selfinside:Anemployeesexperiencesinadifferentpositioninsidehisorhercurrent
organization
Selfoutside:Anemployeesexperiencesinasituationorpositionoutsidehisorhercurrent
organization
Otherinside:Anotherindividualorgroupofindividualsinsidetheemployeesorganization
Otheroutside:Anotherindividualorgroupofindividualsoutsidetheemployeesorganization
TherearecertainissueswhicharecrucialregardingEquitytheory.Theyareasfollows:
1 Employeeswithshorttenureintheircurrentorganizationstendtohavelittleinformationabout
others.
2 Employeeswithlongtenurerelymoreheavilyoncoworkersforcomparison.
3 Upperlevelemployeeswillmakemoreotheroutsidecomparisons.
Whenemployeesperceiveaninequity,theycanbepredictedtomakeoneofsixchoices:
Changetheirinputs.
Changetheiroutcomes.
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Distortperceptionsofself.
Distortperceptionsofothers.
Chooseadifferentreferent.
Leavethefield.
Organizationaljustice
Peoplesperceptionsoffairnessinorganizations,consistingofperceptionsofhowdecisionsare
maderegardingthedistributionofoutcomesandtheperceivedfairnessofthoseoutcomes
themselves.
1 DistributiveJustice:Theperceivedfairnessofthewayrewardsaredistributedamongpeople.
2 ProceduralJustice:Perceptionsofthefairnessoftheproceduresusedtodetermineoutcomes.
3 InteractionalJustice:Theperceivedfairnessoftheinterpersonaltreatmentusedtodetermine
organizationaloutcomes.
Motivationaltips
Certaintips,whichmaybeimportantinthisregard,areasfollows:
Avoidunderpayment.
1 Avoidoverpayment.
2 Givepeopleavoiceindecisionsaffectingthem.
3 Explainoutcomesthoroughlyusingasociallysensitivemanner.
ExpectancyTheory
Expectancy theory is one of the most widely accepted explanations of motivation. Victor Vrooms
(1964)expectancytheoryhasitscriticsbutmostoftheresearchissupportive.Motivationisbasedon
peoplesbeliefs, goalsand linkagebetween effort and performance, performanceand reward, and
rewardandindividualgoalsatisfaction.Expectancytheoryarguesthatthestrengthofatendencyto
actinacertainwaydependsonthestrengthofanexpectationthattheactwillbefollowedbyagiven
outcomeandontheattractivenessofthatoutcometotheindividual.
Determinantsofmotivationaccordingtothistheoryareasfollows:
Expectancy:Thebeliefthatoneseffortswillpositivelyinfluenceonesperformance.
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Instrumentality:Anindividualsbeliefsregardingthelikelihoodofbeingrewardedinaccordwithhis
orherownlevelofperformance.
Valence:Thevalueapersonplacesontherewardsheorsheexpectstoreceivefroman
organization.
OtherDeterminants:Skillsandabilities,roleperceptions,opportunitiestoperform,etc.
ThreekeyrelationshipsinExpectancytheoryare:
Effortperformancerelationship:theprobabilityperceivedbytheindividualthatexertingagiven
amountofeffortwillleadtoperformance
Performancerewardrelationship:thedegreetowhichtheindividualbelievesthatperformingata
particularlevelwillleadtotheattainmentofadesiredoutcome
Rewardspersonalgoalsrelationship:thedegreetowhichorganizationalrewardssatisfyan
individualspersonalgoalsorneedsandtheattractivenessofthosepotentialrewardsforthe
individual.
Performanceformula
Apopularwayofthinkingaboutemployeeperformanceisasafunctionoftheinteractionofability
andmotivationthatis,
Performance=f(AbilityxMotivationxOpportunity).
Ifeitherofmotivationorabilityisinadequate,performancewillbenegativelyaffected.Furthermore,
whenanemployeeperforms,he/sheneedsopportunitytobeallowedtoperformandprovehis/her
worth.
1.Alderferclassifiesneedsinto__________categoriesintohierarchicalorder
2.Theneedtoexcelandtoachieveinrelationtoasetofstandards,tostrivetosucceediscalled
needfor________________.
3.:Theperceivedfairnessoftheinterpersonaltreatmentusedtodetermineorganizationaloutcomes
iscalledas______________.
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9.4 MotivatingEmployeesInOrganizations
Anumberofmotivationtheorieshavebeendiscussedabove.Basedonthesetheories,thefollowing
suggestionssummarizetheessenceaboutmotivatingemployeesinorganizations.
RecognizeindividualdifferencesEmployeeshavedifferentneeds.Therefore,managersneedto
understand what is important to each employee. This will allow to individualize goals, level of
involvement,andrewardstoalignwithindividualneeds.
UsegoalsandfeedbackEmployeesshouldhavetangibleandspecificgoals.Feedbackshould
alsobeprovidedregularlytoinformtheemployeesabouttheirperformanceinpursuitofthosegoals.
IncludeemployeesindecisionmakingEmployeesshouldbeincludedinmakingdecisionsthat
affectthem,forexample,choosingtheirownbenefitspackagesandsolvingproductivityandquality
problems.
LinkrewardstoperformanceRewardsshouldbecontingentonperformanceandemployees
mustperceiveaclearlinkage.
MaintainequityRewardsshouldbeperceivedbyemployeesasequatingwiththeinputstheybring
tothejob,i.eexperience,skills,abilities,effort,andotherobviousinputsshouldexplaindifferences
inperformanceand,hence,pay,jobassignments,andotherobviousrewards.
1.Employeesshouldhave____________andspecificgoals.
2.Rewardsshouldbe___________onperformance.
9.5 MotivationalTools
Someofthemostimportantmotivationaltoolshavebeendiscussedbelow.
ManagementbyObjective(MBO)
Managementbyobjectivesemphasizesparticipativelysetgoalsthataretangible,verifiable,and
measurable.FouringredientscommontoMBOprogramsare:goalspecificity,participativedecision
making,anexplicittimeperiod,andperformancefeedback(Robbins,2003).
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Goalspecificity:
TheobjectivesinMBOshouldbeconcisestatementsofexpectedaccomplishments.
Participativedecisionmaking:
1 Themanagerandemployeejointlychoosethegoalsandagreeonhowtheywillbemeasured.
Anexplicittimeperiod:
Eachobjectivehasaspecifictimeperiodinwhichitistobecompleted.
Performancefeedback
Continuousfeedbackonprogresstowardgoalsisprovidedsothatworkerscanmonitorand
correcttheirownactions.
MBO and GoalSetting Theory is closely linked. Goalsetting theory proposes that tangible goals
resultinahigherlevelofindividualperformancethandoeasygoals.Feedbackononesperformance
leadstohigherperformance.MBOalsodirectlyadvocatesspecificgoalsandfeedback,impliesthat
goals must be perceived as feasible and is most effective when the goals are difficult enough to
requirestretching.
EmployeeRecognitionPrograms
Employee recognition programs consist of personal attention, expressing interest, approval, and
appreciationforajobwelldone.Theycantakenumerousforms.EmployeeRecognitionPrograms
hascloselinkwithReinforcementTheory.Boththeconceptadvocatethatrewardingabehaviorwith
recognition would lead to its repetition. Recognition can take many forms, such as, personally
congratulating an employee, sending a handwritten note or an email message or declaring the
employeeasavaluablecontributortotheorganizationalobjective.
EmployeeInvolvement
Employee involvement includes, participative management, workplace democracy, empowerment,
and employee ownership. Employees involvement in the decision making would positively affect
them and by increasing their autonomy and control over their work lives, employees will become
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moremotivated,morecommittedtotheorganization,moreproductive,andmoresatisfiedwiththeir
jobs.
Some forms of employee involvement have been discussed here: participative management,
representativeparticipation,qualitycircles,andemployeestockownershipplans.
Participativemanagement:
Thelogicbehindparticipativemanagementis:
a.Managersoftendonotknoweverythingtheiremployeesdo.
b.Betterdecisions
c.Increasedcommitmenttodecisions
d. Intrinsicallyrewardingemployeesmakestheirjobsmoreinterestingandmeaningful
Thetwomostcommonformsofparticipativemanagementare:
a. Workscouncils Theyaregroupsofnominatedorelectedemployeeswhomustbeconsulted
whenmanagementmakesdecisions..
b. Boardrepresentativestheyareemployeeswhositonacompanysboardofdirectorsand
representtheinterestsofthefirmsemployees.
Qualitycircles(QC):
QCconsistsofaworkgroupofeighttotenemployeesandsupervisorswhohaveasharedareaof
responsibility.KeycomponentsofQCare(Robbins,2003):
They meet regularly on company time to discuss their quality problems, investigate causes of the
problems,recommendsolutions,andtakecorrectiveactions
They takeover the responsibilityfor solving quality problems and they generateandevaluatetheir
ownfeedback.
Managementtypicallyretainscontroloverthefinalimplementationdecision.
Areviewoftheevidenceindicatesthattheyarelikelytopositivelyaffectproductivity,however,they
tendtoshowlittleornoeffectonemployeesatisfaction.
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Thefailureofmanyqualitycircleprogramstoproducemeasurablebenefitshasalsoledtoalarge
numberofthembeingdiscontinued.
Employeestockownershipplans(ESOPs):
InthetypicalESOP,anemployeestockownershiptrustiscreated.Companiescontributeeither
stockorcashtobuystockforthetrustandallocatethestocktoemployees.Employeesusually
cannottakephysicalpossessionoftheirsharesorsellthemaslongastheyarestillemployedatthe
company.
1.MBOand____________Theoryiscloselylinked
2.EmployeeRecognitionProgramshascloselinkwith____________Theory
9.6 SpecialIssuesInMotivation
Someofthespecialissuesinmotivationarediscussedbelow.
MotivatingProfessionals
Theprofessionalemployeeslikelytoseekmoreintrinsicsatisfactionfromtheirworkthanbluecollar
employees. They generally have strong and longterm commitment to their field of expertise are
perhaps more loyal to their profession than to their employer. They need to regularly update their
knowledge,andtheircommitmenttotheirprofession.
Therefore,extrinsicfactorssuchasmoneyandpromotionswouldbelowontheirprioritylist.Rather,
jobchallengetendstoberankedhigh.Theyliketotackleproblemsandfindsolutions.
ManagerialImplications:
Providethemwithongoingchallengingprojects.
Givethemautonomytofollowtheirinterestsandallowthemtostructuretheirwork.
Rewardthemwitheducationalopportunities.
Alsorewardthemwithrecognition.
MotivatingtemporaryWorkers
Temporaryworkersmaybemotivatedif:
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Theyareprovidedwithpermanentjobopportunity
Theopportunityfortrainingisprovidedtothem
Unit9
MotivatingLowSkilledServiceWorkers
Oneofthemostchallengingmanagerialtasksintomotivatelowskilledworkerswhoareinvolvedin
repetitive physical work, where higher education and skills are not required. For this category of
people, flexible work schedules and higher pay package may be proved effective motivational
factors.
1.Theprofessionalemployeeslikelytoseekmore____________satisfactionfromtheirworkthan
bluecollaremployees
2.Temporaryworkersmaybemotivatediftheyareprovidedwith___________jobopportunity.
9.7 Summary
Motivation is the processes that account for an individuals intensity, direction, and persistence of
efforttowardattainingagoal.AccordingtoMaslowstheory,humanbeingshavefiveneeds,which
influence their behavior. Those five needs are Physiological, Safety, Social, Esteem, and Self
actualizationneeds. In theoryX and Y, McGregorargued thata managers viewof the natureof
humanbeingsisbasedonacertaingroupingofassumptionsandheorshetendstomouldhisorher
behavior toward employees according to these assumptions. Herzberg (1959) constructed a two
dimensional paradigm of factors affecting people's attitudes about work. These two factors are
motivators and hygiene factors and this theory is also called motivationhygiene theory. Alderfer
classified needs into threecategories into hierarchicalorder. Theyare:the existence category,the
Relatedness category and the Growth category. This theory is very similar to Maslows theory.
Existence need corresponds with Maslows physiological and safety needs, Relatedness need
corresponds with Maslows social needsand Growth need corresponds with Maslowsesteemand
selfactualization needs. McClellands theory focuses on three needs: achievement, power, and
affiliation.Accordingtothistheory,peoplewithhighneedforachievementhaveacompellingdriveto
succeed.Individualshighinneedforpowerenjoybeinginchargeofanysituation.Individualswith
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high need for affiliation motive strive for friendship, prefer cooperative situations rather than
competitive ones, and desire relationships that involve a high degree of mutual understanding.
Cognitive Evaluation theory proposes that when extrinsic rewards are used by organizations as
payoffsforsuperiorperformance,theintrinsicrewards,whicharederivedfromindividualsdoingwhat
theylike,arereduced.GoalSettingTheoryproposesthatchallenginggoalsproduceahigherlevelof
outputthandothegeneralizedgoals.Moredifficultthegoal,thehigherthelevelofperformancewill
be. Reinforcement theory argues that reinforcement conditions human behavior. According to this
theory,behaviorisafunctionofitsconsequences.Behaviorisenvironmentallycaused.Accordingto
Equity theory, employees make comparisons of their job inputs and outcomes relative to those of
others. If,an individual perceives the inputoutcome ratio to beequal tothatof the relevant others
with whom he/she compares his/herself, a state of equity is said to exist. He/she perceives the
situation as fair. If the ratio appears to be unequal, the individual experience inequity. Expectancy
theoryarguesthatthestrengthofatendencytoactinacertainwaydependsonthestrengthofan
expectation that the act will be followed by a given outcome and on the attractiveness of that
outcometotheindividual.
Terminalquestions
1.CompareMaslowshierarchyofneedswithAlderfersERGtheory.
2.Explaingoalsettingtheory.
3.Whatisorganizationaljustice?Discussvarioustyoesoforganizationaljustice.
4.ExplaintheconceptofMBOandQC.
AnswertoSelfAssessmentQuestions1
1.Physiological
2.X
3.Intrinsic
1.Three
2.Achievement
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3.InteractionalJustice
1.Tangible
2.Contingent
1.GoalSetting
2.Reinforcement
1.Intrinsic
2.Permanent
1.Refersection9.2and9.3
2.Refersection9.3
3.Refersection9.3
4.Refersection9.5
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Unit 10
Unit10
GroupBehavior
Structure
10.1 Introduction
Objectives
10.2 Classificationofgroups
10.3 ModelsofGroupDevelopment
10.4 ExternalConditionsImposedontheGroup
10.5 GroupMemberResources
10.6 GroupStructure
10.7 Norms
10.8 Conformity
10.9 TechniquesofDecisionMakinginGroups
10.10 Understandingworkteams
10.11 Summary
TerminalQuestions
AnswertoSAQsandTQs
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10.1 Introduction
Agroupmaybedefinedasacollectionoftwoormorepeoplewhoworkwithoneanotherregularlyto
achieve common goals. In a group, members are mutually dependent on one another to achieve
commongoals,andtheyinteractwithoneanotherregularlytopursuethosegoals.Effectivegroups
helporganizationsaccomplishimportanttasks.Inparticular,theyofferthepotentialforsynergythe
creation of a whole that is greater than the sum of its parts. When synergy occurs, groups
accomplishmorethanthetotaloftheirmembersindividualcapabilities.
Learningobjectives:
1. Classificationofgroups
2. ModelsofGroupDevelopment
3. Understandingworkteams
10.2 ClassificationOfGroups
Groupscanbeoftwotypes:
Formal
Informal
Formalgroups
Formal groups come into existence for serving a specific organizational purpose. Individuals
behaviorsinthistypeofgroupareaimedatachievingorganizationalgoals. Theorganizationcreates
such a group to perform a specific task, which typically involves the use of resources to create a
product such as a report, decision, service, or commodity (Likert, 1961). Though all members
contribute to achieve group goals a leader does exist in this type of group to oversee and direct
groupmembers.
Formal groups may be permanent or temporary in nature. They may be full fledged departments
divisionsorspecificworkteamscreatedforparticularprojectsoffairlylongduration..
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Permanentworkgroupsareofficiallycreatedtoperformaspecificfunctiononaregularbasis.They
continuetoexistuntiladecisionismadetochangeorreconfiguretheorganizationforsomereason.
Temporary work groups are task groups are specifically created to solve a problem or perform a
definedtask.Theymaybedismantledaftertheassignedtaskhasbeenaccomplished.Examplesare
the temporary committees and task forces that exist in an organization. Indeed, in todays
organizationstheuseofcrossfunctionalteamsortaskforcesforspecialproblemsolvingeffortshas
gonerupsignificantly.
Informalgroup
Aninformalgroupisneitherformallystructurednororganizationallydetermined.Groupofemployees
snackingtogethercanbeanexampleofsuchgroups.Informalgroupsmaybesubcategorizedas:
Command,task,interest,orfriendshipgroups.
1.Commandgroupsaredictatedbytheformalorganization. Theorganizationhierarchydetermines
acommandgroup.Itcomprisesofdirectreportstoagivenmanager.
2.Taskgroupsrepresentthoseworkingtogethertocompleteajobtask.Ataskgroupsboundaries
arenotlimitedtoitsimmediatehierarchicalsuperior.Itcancrosscommandrelationshipswhere
the same member may be reporting to two or moreauthorities at the same time. All command
groupsarealsotaskgroups,butthereversemaynotbetrue.
3.Aninterestgroupconsistsofpeoplewhoaffiliatetoattainaspecificobjectivewithwhicheachis
concerned.
1. Formalgroupscomeintoexistenceforservingaspecific_________________purpose.
2. An______________groupisneitherformallystructurednororganizationallydetermined.
3. Allcommandgroupsarealso__________groups.
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10.3 ModelsOfGroupDevelopment
Themostimportantmodelsofgroupdevelopmenthavebeencitedbelow.
a.TheFiveStageModel
1. Forming:
Inthisstagethemembersareenteringthegroup.Themainconcernistofacilitatetheentryofthe
groupmembers.Theindividualsenteringareconcernedwithissuessuchaswhatthegroupcanoffer
them,theirneededcontributionthesimilarityintermsoftheirpersonalneeds,goalsandgroupgoals,
theacceptablenormativeandbehavioralstandardsexpectedforgroupmembershipandrecognition
fordoingtheworkasagroupmember.
2. Storming:
Thisisaturbulentphasewhereindividualstrytobasicallyformcoalitionsandcliquestoachievea
desiredstatuswithinthegroup.Membersalsogothroughtheprocessofidentifyingtotheirexpected
rolerequirementsinrelationtogrouprequirements.Intheprocess,membershipexpectationstendto
get clarified, and attention shifts toward hurdles coming in the way of attaining group goals.
Individuals begin to understand and appreciate each others interpersonal styles, and efforts are
madetofindwaystoaccomplishgroupgoalswhilealsosatisfyingindividualneeds.
3. Norming:
From the norming stage of group development, the group really begins to come together as a
coordinatedunit.Atthispoint,closerelationshipsdevelopandthegroupshowscohesiveness.Group
memberswillstrivetomaintainpositivebalanceatthisstage.
4. Performing:
Thegroupnowbecomescapableofdealingwithcomplextasksandhandlinginternaldisagreements
innovelways.Thestructureisstable,andmembersaremotivatedbygroupgoalsandaregenerally
satisfied.Thestructureisfullyfunctionalandacceptedatthisstage.Groupenergymakesatransition
from membersfocusongettingtoknow and understand each other to performing. For permanent
workgroups,performingisthelaststageintheirdevelopment.
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5. Adjourning:
Awellintegratedgroupisabletodisband,ifrequired,whenitsworkisaccomplished,thoughinitself
it may be a painful process for group members, emotionally. The adjourning stage of group
development is especially important for the many temporary groups that are rampant in todays
workplaces. Members of these groups must be able to convene quickly, do their jobs on a tight
schedule,andthenadjournoftentoreconvenelater,wheneverrequired.
Groupsdonotalwaysproceedclearlyfromonestagetothenext.Sometimesseveralstagesgoon
simultaneously,aswhengroupsarestormingandperforming.Groupsmayattimesregresstoearlier
stages. Anotherproblemisthatitignoresorganizationalcontext.Forinstance,astudyofacockpit
crewinanairlinerfoundthat,withintenminutes,threestrangersassignedtoflytogetherforthefirst
timehadbecomeahighperforminggroup.Therigidorganizationalcontextprovidestherules,task
definitions,information,andresourcesrequiredforthegrouptoperform,effectively.
b.Punctuatedequilibriummodel
Temporarygroupswithdeadlinesdonotseemtofollowthemodelexplainedabove.Theirpatternis
calledthepunctuatedequilibriummodel.
PhaseIThefirstmeetingsetsthegroupsdirection.Thisstageisthefirstinertiaphase.Astructure
ofbehavioralpatternsandassumptionsemerges.
TransitionThenatransitiontakesplacewhenthegrouphasusedupalmosthalfitsallottedtime.
Thegroupsdirectionbecomesfixedandisunlikelytobereexaminedthroughoutthefirsthalfofthe
groupslife.Thegrouptendstostandstillorbecomelockedintoafixedcourseofaction.Thegroup
isincapableofactingonnewinsightsinPhase1. Themidpointseemstosetanalarmclockgoing
increasing members awareness that their time is limited and that they need to move on fast. A
transitiontriggersoffmajorchanges.ThisendsPhase1andischaracterizedbyaconcentratedburst
of changes, replacement old patterns, and adoption of new perspectives. The transition sets a
reviseddirectionforPhase2.
Phase2Itisanewequilibriumandisalsoaperiodofinertia.Inthisphase,thegroupexecutes
plans created during the transition period. The groups last meeting is characterized by a flurry of
activities.Thepunctuatedequilibriummodelcharacterizesgroupsasdemonstratinglongperiodsof
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inertia interspersed with brief and rapid changes triggered mainly by their members awareness of
timeandtargets.
1. Inthe___________stagethemembersareenteringthegroup
2. The__________________stageofgroupdevelopmentisespeciallyimportantforthemany
temporarygroupsthatarerampantintodaysworkplaces.
10.4 ExternalConditionsImposedontheGroup
All workgroupsare partof largersystems and organizationsandtherefore cannotexistor work in

isolation. It is therefore influenced by mainly externalfactors which includeorganizational strategy,
authority structures, rules and regulations, access to resources, physical work conditions and
organizationalcultureandperformancesystemsandrewardstructures.Robbins(2004)outlinesthe
roleofthesefactorsasfollows:
Thestrategywillinfluencethepowerofvariousworkgroupswhichwilldeterminetheresources
thattheorganizationstopmanagementiswillingtoallocatetoitforperformingitstasks.
Organizationshaveauthoritystructuresthatdefinewhoreportstowhom,whomakesdecisions,
andwhatdecisionsindividualsorgroupsareempoweredtomake.
Organizations create rules, procedures, policies, job descriptions, and other forms of formal
regulationstostandardizeemployeebehavior.
The more formal regulations that the organization imposes on all its employees, the more the
behaviorofworkgroupmemberswillbeconsistentandpredictable.
The presence or absence of resources such as money, time, raw materials, and equipment
which are allocated to the group by the organizationhave a large bearing on the groups
behavior.
Theperformanceevaluationandrewardsystem.Groupmembersbehaviorwillbeinfluencedby
howtheorganizationevaluatesperformanceandwhatbehaviorsarerewarded.
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Every organization has an unwritten culture that defines standards of acceptable and
unacceptable behavior for employees. Members of work groups have to accept the standards
impliedintheorganizationsdominantcultureiftheyaretoremainingoodstanding.
Thephysicalworksettingcreatesbothbarriersandopportunitiesforworkgroupinteraction.
1. Organizations have ____________ structures that define who reports to whom, who makes
decisions,andwhatdecisionsindividualsorgroupsareempoweredtomake.
2. Themoreformalregulationsthattheorganizationimposesonallitsemployees,themorethe
behaviorofworkgroupmemberswillbe_________and_________.
10.5 GroupMemberResources
A. Knowledge,Skills,andAbilities
Theknowledge,skills,andabilitiesofitsindividualmembersplaysanimportantroleindetermining
thegroupssuccessandtheirabilitytoachievesettargetseffectivelyandinsynergisticmanner.A
reviewoftheevidencehasshownthatinterpersonalskillsplayanimportantroleforhighworkgroup
performance. They comprise of conflict management and resolution skills, collaborative problem
solvingabilities,andeffectivecommunicationskills.
B. PersonalityCharacteristics:
A substantial largerbody of research evidence is available with regardtothe relationship between
personalitytraitsandgroupattitudesandbehavior.Thegeneralconclusionsareasfollows(Robbins
2004):
Attributes that have a positive connotation in our culture tend to be positively related to group
productivity, morale, and cohesiveness. These include: sociability, initiative, openness, and
flexibility.
Negativelyevaluatedcharacteristicssuchasauthoritarianism,dominance,andunconventionality
tendtobenegativelyrelatedtothedependentvariables.
3.Nosinglepersonalitycharacteristicisagoodpredictorofgroupbehavior.
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1. Attributes that have a positive connotation in our culture tend to be ____________ related to
groupproductivity,morale,andcohesiveness
2. No___________personalitycharacteristicisagoodpredictorofgroupbehavior.
10.6 GroupStructure
Workgroupsinordertofunctionasacoordinatedunitneedtohaveaproperstructurewherethere
mustbecertainelementslikeformalleadership,roleclarityamonggroupmembers.Intheabsence
ofthesefactorsgroupsnotonlybecomeconflictridden,butalsosufferfromconfusion,andfunction
onasuboptimallevel.Eachelementisexplainedbrieflybelow:
1. FormalLeadership
Almosteveryworkgroupmusthaveaformalleader,whichistypicallyidentifiedbyatitle.Theleader
canplayanimportantpartinthegroupssuccess.
2. Roles
All group members are actors, where each is playing a role. While some of these roles may be
compatibleotherscreateconflicts.Differentgroupsimposedifferentrolerequirementsonindividuals.
3. Roleperception
For playing ones role effectively in a group, ones view of how one is supposed to act in a given
situationmustbeclearleadingtoclearroleperception.Bywatchingandimitatingseniormembersof
agroupthenewcomerslearnhowtotakeontheirroleseffectivelyandalsolearnhowtoplaythem
well.
4. Roleexpectations
Tuningoneselfandbehavinginasociallydesirablemannerisapartoffulfillingroleexpectationsina
givensituationinthecontextofachievinggroupgoalsandorganizationalgoals.
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Roleconflict
Whenagroupmemberisfacedwiththechallengeofplayingmultipleroles,roleconflictmayoccur
due to inability of the individual to balance all the roles effectively, thereby reducing role
effectiveness,hamperingthegroupandorganizationalgoalattainmentprocess.
1. Bywatchingandimitating__________membersofagroupthenewcomerslearnhowtotakeon
theirroleseffectivelyandalsolearnhowtoplaythemwell.
2. Role _________ is tuning oneself and behaving in a socially desirable manner is a part of
fulfilling role expectations in a given situation in the context of achieving group goals and
organizationalgoals.
3. Whenagroupmemberisfacedwiththechallengeofplayingmultipleroles,role_______may
occur
10.7 Norms
Allgroupshavenormsacceptablestandardsofbehaviorthataresharedbythegroupsmembers.
Normsserveasaguidelineformembersdetailingwhattheyoughtandoughtnottodoundercertain
circumstances.Thoughaworkgroupsnormsareunique,yettherearestillsomecommonclassesof
norms.Theyare:
Performancenormswhichcomprisethefollowing(Robbins2003):
a.Explicitcuesonhowhardtheyshouldwork,howtogetthejobdone,theirlevelofoutput,
appropriatelevelsoftardiness,etc.
b.Thesenormsareextremelypowerfulinaffectinganindividualemployeesperformance.
Appearancenormsincludethingslikeappropriatedress,loyaltytotheworkgroupor
organization,whentolookbusy,andwhenitisacceptabletogoofoff.
Socialarrangementnormscomefrominformalworkgroupsandprimarilyregulatesocial
interactionswithinthegroup.
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Allocationofresourcesnormscanoriginateinthegrouporintheorganization.
1. Allgroupshave________acceptablestandardsofbehaviorthataresharedbythegroups
members
2. __________normscomefrominformalworkgroupsandprimarilyregulatesocialinteractions
withinthegroup.
10.8 Conformity
Strong research evidence suggests that groups can place strong pressures on individual
memberstochangetheirattitudesandbehaviorstoconformtothegroupsstandard.Allgroups
donothaveaequalswayoverthemembersandthosethathavemoreinfluencearereferredto
asreferencegroups.
Thereferencegroupischaracterizedasonewherethepersonisawareoftheotherstheperson
defineshimselforherselfasamember,orwouldliketobeamemberandthepersonfeelsthat
thegroupmembersaresignificanttohim/her.
Status
1. Status is a socially defined position or rank given to groups or group members by others.
Inequalityisthebasisforanycreatedsocialorderwheresomearemorepowerful,enjoygreater
benefits and also command access to resources differentially. This is also related to the risk
takingabilityofcertaingroups/individualsandbyvirtueofthiscalculatedrisktakingabilitythey
amassgreaterwealthandhavesuperiorposition(status)inthehierarchy.Thesameisalsotrue
ofgroupswherethereisahierarchyandallmembersdonotenjoythesamestatus.
Statusandnorms:
Researchshowsthefollowingwithregardtorelationshipbetweenstatusandnorms(Robbins):
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Highstatusmembersofgroupsoftenaregivenmorefreedomtodeviatefromnormsthanother
groupmembers.
Highstatuspeoplealsoarebetterabletoresistconformitypressures.
The previous findings explain why many star athletes, famous actors, topperforming
salespeople,andoutstandingacademicsseemoblivioustoappearanceorsocialnorms.
Statusequity:
Wheninequityisperceived,itcreatesdisequilibriumthatresultsincorrectivebehavior.
Thetrappingsofformalpositionsarealsoimportantelementsinmaintainingequity.Employees
expectwhatanindividualhasandreceivestobecongruentwithhis/herstatus.Forexample:
pay,officespace,etc.
Groupsgenerallyagreewithinthemselvesonstatuscriteria.
Individualscanfindthemselvesinaconflictsituationwhentheymovebetweengroupswhose
statuscriteriaaredifferentorwhentheyjoingroupswhosemembershaveheterogeneous
backgrounds.
Statusandculture:
Culturaldifferencesaffectstatus.Forexample,theFrencharehighlystatusconscious.
Countriesdifferonthecriteriathatcreatestatus:
o StatusforLatinAmericansandAsianstendstobederivedfromfamilypositionandformalroles
heldinorganizations.
o IntheUnitedStatesandAustralia,ittendstobebestowedmoreonaccomplishments.
Itisnecessarytounderstandwhoandwhatholdsstatuswheninteractingwithpeoplefroma
differentcultureotherthanourown.
1. The_________groupischaracterizedasonewherethepersonisawareoftheothers
2. Statusisa_________definedpositionorrankgiventogroupsorgroupmembersbyothers.
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3. Whenstatusinequityisperceived,itcreates______________thatresultsincorrective
behavior.
10.9 TechniquesOfDecisionMakingInGroups
Schein(1988)observesthatgroupsmaymakedecisionsthroughanyofthefollowingsixmethods:
Decision in lack of response In this type of decision making, ideas are forwarded without any
discussiontakingplace.Whenthegroupfinallyacceptsanidea,allothershavebeenbypassedand
discardedbysimplelackofresponseratherthanbycriticalevaluation.
DecisionbyauthorityruleThe leadermakesadecisionforthegroup,withorwithoutdiscussion.
Decisionbyminorityrule Twoorthreepeopleareabletodominatethegroupintomakingadecision
towhichtheyagree.
DecisionbymajorityruleHere,viewpointofthemajorityisconsideredasthegroupsdecision.
Decision by consensus One alternative is accepted by most members and the other members
agreeingtosupportit.
Decisionbyunanimity Allgroupmembersagreetotallyonthecourseofactiontobetaken.Thisisa
logicallyperfectgroupdecisionmethodthatisextremelydifficulttoattaininactualpractice.
1. Scheinobservesthatgroupsmaymakedecisionsthrough_________methods.
2. In Decision by_________, two or three people are able to dominate the group into making a
decisiontowhichtheyagree.
Groupproductivity:theadvantagesanddisadvantagesofgroupdecisionmaking
Thepotentialadvantagesofgroupdecisionmakinginclude(Maier,1967):
1.Informationmoreknowledgeandexpertiseisappliedtosolvetheproblem.
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2.Alternativesagreaternumberofalternativesareexamined,avoidingtunnelvision.
3.Understandingandacceptancethefinaldecisionisbetterunderstoodandacceptedbyallgroup
members.
4. Commitmentthere is more commitment among all group members to make the final decision
work.
Thepotentialdisadvantagesofgroupdecisionmakinginclude:
1Socialpressuretoconformindividualsmayfeelcompelledtogoalongwiththeapparentwishes
ofthegroup.
2.Minoritydominationthegroupsdecisionmaybeforcedbyoneindividualorasmallcoalition.
3. Time demandswith more people involved in the dialogue and discussion, group decisions
usuallytakelongertomakethanindividualdecisions.
10.10 UnderstandingWorkTeams
Ateamisasmallgroupofpeoplewithcomplementaryskills,whoworkactivelytogethertoachievea
common purpose for which they hold themselves collectively accountable (Katzenbach & Smith,
1993). Team building is a collaborative way to gather and analyze data to improve teamwork
(Schermerhornetal2002). Teamhasfollowingadvantages(Robbins,2003):
Teamstypicallyoutperformindividuals.
Teamsuseemployeetalentsbetter.
Teamsaremoreflexibleandresponsivetochangesintheenvironment.
Teamsfacilitateemployeeinvolvement.
Teamsareaneffectivewaytodemocratizeanorganizationandincreasemotivation.
TypesofTeams
Thevarioustypesofteamshavebeendescribedbelow:
Problemsolvingteamssmallgroupsfromsamedepartmentwhomeetregularlytodiscusswaysof
improvingqualityandefficiency.
Selfmanagedteamssmallgroupswhotakeresponsibilitiesoftheirowntargets.
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CrossfunctionalteamEmployeesfromdifferentworkareasbutfromsamehierarchicallevel,come
togethertoaccomplishatask.
Virtual team team members, who are physically dispersed, use computer technology to connect
witheachother,
1. Teambuildingisa____________waytogatherandanalyzedatatoimproveteamwork.
2. In ___________________ team Employees from different work areas but from same
hierarchicallevel,cometogethertoaccomplishatask.
10.11 Summary
Agroupmaybedefinedasacollectionoftwoormorepeoplewhoworkwithoneanotherregularlyto
achievecommongoals.Groupscanbeoftwotypes:FormalandInformal.Formalgroupscomeinto
existenceforservingaspecificorganizationalpurpose.Individualsbehaviorsinthistypeofgroupis
aimed at achieving organizational goals. An informal group is neither formally structured nor
organizationallydetermined.TheFiveStageModelofgroupdevelopmenthasfivestages:Forming,
Storming,
Norming,
Performing and Adjourning. Punctuated equilibrium model of group
development proposes that temporary groups with deadlines do not seem to follow the model
explainedabove.Rather,theyfollowitPhaseI,transitionandPhaseII.Allworkgroupsarepartof
larger systems and organizations and therefore cannot exist or work in isolation. It is therefore
influencedbymainlyexternalfactorswhichincludeorganizationalstrategy,authoritystructures,rules
and regulations, access to resources, physical work conditions and organizational culture and
performance systems and reward structures. All groups have normsacceptable standards of
behaviorthataresharedbythegroupsmembers.Normsserveasaguidelineformembersdetailing
whattheyoughtandoughtnottodoundercertaincircumstances.Thoughaworkgroupsnormsare
unique,yettherearestillsomecommonclassesofnorms.Ateamisasmallgroupofpeoplewith
complementaryskills,whoworkactivelytogethertoachieveacommonpurposeforwhichtheyhold
themselves collectively accountable (Katzenbach & Smith, 1993). Team building is a collaborative
waytogatherandanalyzedatatoimproveteamwork(Schermerhornetal2002).
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Terminalquestions
1. Explainthefivestagemodelofgroupdevelopment.
2. Explaintheexternalconditionsimposedongroups.
3. Describethetechniquesongroupdecisionmaking.
1. Organizational
2. Informal
3. Task
1. Forming
2. Adjourning
1. Authority
2. Consistent,predictable
1. Positively
2. Single
1. Senior
2. Expectations
3. Conflict
1. Norms
2. Socialarrangement
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1. Reference
2. Socially
3. Disequilibrium
1. Six
2. Minorityrule
1. Collaborative
2. Crossfunctional
1. Refersection10.3
2. Refersection10.4
3. Refersection10.9
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PowerAndPolitics
Structure
11.1 Introduction
Objectives
11.2 BasesofPower
11.3 PowerTactics
11.4
Empowerment
11.5
PowerinGroups:Coalitions
11.6
Politics:PowerinAction
11.7Summary
TerminalQuestions
AnswertoSAQsandTQs
11.1 Introduction
Power isthe ability to make thingshappen in the wayan individual wants,either by selfor by the
subordinates.Theessenceofpoweriscontroloverthebehaviorofothers(French&Raven,1962).
Managersderivepower from bothorganizational and individual sources. These sources are called
position power and personal power, respectively. Power also refers to a capacity that A has to
influence the behavior of B, so that B acts in accordance with As wishes. The greater Bs
dependence on A, the greater is As power in the relationship. Therefore, power is a function of
dependency(Robbins,2003).
ContrastingLeadershipandPower
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In an organizational context leadership and power are related to each others. Power is used by
leaders as a means to attain group goals. In other words, power is a means of facilitating their
achievement of goals and objectives that they have set for themselves in view of organizational
requirements.Whataredifferencesbetweenleadershipandpower?Thefirstisintheareaofgoal
compatibilitywhichisasfollows:
Power does not require goal compatibility, merely dependence whereas leadership, requires
somecongruencebetweenthegoalsoftheleaderandthefollowers.
Thesecondfactorisrelatedtothedirectionofinfluence:
Whereasleadershipfocusesonthedownwardinfluenceononesfollowers,powerdoesnotminimize
the importance of lateral and upward influence patterns. Evidence of the same is gained from
insightsintoresearchonpowerthathastendedtoencompassabroaderareaandfocusontactics
forgainingcompliance.
Learningobjectives:
1. BasesofPower
2. PowerinGroups:Coalitions
3. Politics:PowerinAction
11.2 BasesOfPower
Powercanbecategorizedintotwotypes:Formalandinformal
A.FormalPower:
It is basedon the position ofan individual inanorganization. Formal power is derivedfrom either
onesabilitytocoerceorrewardothersorisderivedfromtheformalauthorityvestedintheindividual
due to his/ her strategic position in the organizational hierarchy. For example, a manager may
threaten to withhold a pay raise, or to transfer, demote, or even recommend the firing of a
subordinatewhodoesnotactasdesired.Suchcoercivepoweristheextenttowhichamanagercan
denydesiredrewardsoradministerpunishmentstocontrolotherpeople.Theavailabilityofcoercive
power also varies across organizations. The presence of unions and organizational policies on
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employee treatment can weaken this power base significantly. Formal power may be categorized
intofourtypeswhichareasfollows:
1.CoercivePower:
Thecoercivepowerbaseisbeingdependentonfear.Itisbasedontheapplication,orthethreatof
application,ofphysicalsanctionssuchastheinflictionofpain,thegenerationoffrustrationthrough
restriction of movement, or the controlling by force of basic physiological or safety needs. In an
organization one can exercise power over another if they have the power to dismiss, suspend,
demoteanotherassumingthatthejobisvaluabletothepersononwhompowerisbeingunleashed.
2.RewardPower:
The opposite of coercive power is reward power.Reward power is theextentto which a manager
can use extrinsic and intrinsic rewards to control other people. Examples of such rewards include
money, promotions, compliments, or enriched jobs. Although all managers have some access to
rewards, success in accessing and utilizing rewards to achieve influence varies according to the
skillsofthemanager.
3. LegitimatePower:
Thethirdbaseofpositionpowerislegitimatepower,orformalauthority.Itstemsfromtheextentto
whichamanagercanusesubordinatesinternalizedvaluesorbeliefsthatthebosshasarightof
commandtocontroltheirbehavior.Forexample,thebossmayhavetheformalauthoritytoapprove
or deny such employee requests as job transfers, equipment purchases, personal time off, or
overtime work. Legitimate power represents a special kind of power a manager has because
subordinatesbelieveitislegitimateforapersonoccupyingthemanagerialpositiontohavetheright
tocommand.Thelackofthisislegitimacywillresultinauthoritynotbeingacceptedbysubordinates.
Thusthistypeofpowerhasthefollowingelements:
Itrepresentsthepowerapersonreceivesasaresultofhis/herpositionintheformalhierarchy.
Positionsofauthorityincludecoerciveandrewardpowers.
Legitimatepower,however,isnotlimitedtothepowertocoerceandreward.Itencompassesthe
acceptanceoftheauthorityofapositionbymembersofanorganization.
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4. InformationPower:
This type of power is derived from access to and control over information. When people have
needed information, others become dependanton them. (Forexample, managers haveaccess to
data that subordinatesdonothave). Normally the higher the level, the more information would be
accessedbymanagers.
B.PersonalPower
Personal power resides in the individual and is independent of that individuals position. . Three
basesofpersonalpowerareexpertise,rationalpersuasion,andreference.
Expertpoweristheabilitytocontrolanotherpersonsbehaviorbyvirtueofpossessingknowledge,
experience,or judgment that theother person lacks, but needs. A subordinate obeysa supervisor
possessingexpertpowerbecausethebossordinarilyknowsmoreaboutwhatistobedoneorhowit
istobedonethandoesthesubordinate.Expertpowerisrelative,notabsolute.Howeverthetable
mayturnincasethesubordinatehassuperiorknowledgeorskillsthanhis/herboss.Inthisageof
technology driven environments, the second proposition holds true in many occasions where the
bossisdependentheavilyonthejuniorsfortechnologicallyorientedsupport.
Rationalpersuasionistheabilitytocontrolanothersbehavior,since,throughtheindividualsefforts,
the person accepts the desirability of an offered goal and a viable way of achieving it. Rational
persuasioninvolvesbothexplainingthedesirabilityofexpectedoutcomesandshowinghowspecific
actionswillachievetheseoutcomes.
Referentpoweristheabilitytocontrolanothersbehaviorbecausethepersonwantstoidentifywith
thepowersource.Inthiscase,asubordinateobeysthebossbecauseheorshewantstobehave,
perceive, or believe as the boss does. This obedience may occur, for example, because the
subordinatelikesthebosspersonallyandthereforetriestodothingsthewaythebosswantsthem
done. In a sense, the subordinate attempts to avoid doing anything that would interfere with the
pleasingbosssubordinate relationship. Followership isnotbased on what the subordinate will get
forspecificactionsorspecificlevelsofperformance,butonwhattheindividualrepresentsapath
towardlucrativefutureprospects.
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CharismaticPowerisanextensionofreferentpowerstemmingfromanindividualspersonalityand
interpersonalstyle.Othersfollowbecausetheycanarticulateattractivevisions,takepersonalrisks,
demonstratefollowersensitivity,etc.
Dependency:TheKeytoPower
TheGeneralDependencyEquationisasfollows:
The greater Bs dependency on A, the greater the power A has over B. When an individual
possessanythingthatothersrequirebutthatwhichalonetheindividualcontrols,he/shecanmake
othersdependentand,therefore,gainpoweroverthem.
Dependency,then,isinverselyproportionaltothealternativesourcesofsupply.
Thisisoneofthereasonswhymostorganizationsdevelopmultiplesuppliersratherusingjustone.
Italsoexplainswhyindividualsingeneralaspiretofinancialindependence.
Threefactorsareresponsiblefordependency.Theyareasfollows:
Importance
To create dependency, the thing(s) you control must be perceived as being important.
Organizationsactivelyseektoavoiduncertaintyandhence,thoseindividualsorgroupswhocan
absorbanorganizationsuncertaintywillbeperceivedascontrollinganimportantresource.
Scarcity
A resource needs to be perceived as scarce to create dependency. For example, lowranking

members in an organization who have important knowledge unavailable to highranking members
gainpoweroverthehighrankingmembers.Thescarcitydependencyrelationshipisalsoimportantin
thepowerofoccupationalcategories.Individualsinoccupationsinwhichthesupplyofpersonnelis
low relative to demand can negotiate compensation and benefit packages, which are far more
attractivethancanthoseinoccupationswherethereisanabundanceofcandidates.Thusscarcityin
supply of certain types of skilled people can give them power to bargain over compensations and
otherbenefits.
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Nonsubstitutability
Themorethataresourcehasnoviablesubstitutes,themorepowerthatcontroloverthatresource
provides.
1. Formalpowermaybecategorizedinto___________types.
2. Theoppositeofcoercivepoweris__________power
3. Expertpowerisrelative,not______________.
11.3 PowerTactics
Using position and personal power well to achieve the desired influence over other people is a
challenge for most managers. There are many useful ways of exercising relational influence. The
mostcommonstrategiesinvolvethefollowing(Kipiniset.Al,1984):
ReasonUseoffactsanddatatomakealogicalorrationalpresentationofideas
FriendlinessUseofflattery,creationofgoodwill,actinghumble,andbeingfriendly
CoalitionGettingthesupportofotherpeopleintheorganizationtobackuptherequest
BargainingUseofnegotiationthroughtheexchangeofbenefitsorfavors
AssertivenessUseofadirectandforcefulapproachsuchasdemandingcompliance
HigherauthorityGainingthesupportofhigherlevelsintheorganizationtobackuprequests
SanctionsUseoforganizationallyderivedrewardsandpunishments
Employeesrelyontheseventacticsvariably.Dependingonthesituationalfactors,individualstend
to use the above strategies accordingly to the suitability and the likelihood of the success to be
achieved byemploying the same. The managers relative power impacts the selection oftactics in
twoways.
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First,managerswhocontrolresourcesthatarevaluedbyothers,orwhoareperceivedtobein
positionsofdominance,useagreatervarietyoftacticsthandothosewithlesspower.
Second,managerswithpoweruseassertivenesswithgreaterfrequencythandothosewithless
power.
Resistanceleadstomanagersusingmoredirectivestrategies.
The managers objectives for wanting to influence causes them to vary their power tactics. The
objectivesmaybeasfollows:
Whenseekingbenefitsfromasuperior,theyusefriendliness.
Whentheyareinneedtomakesuperiorsacceptnewideas,theyusuallyrelyonreason.
Managersusereasontosellideastoemployeesandfriendlinesstoobtainfavors.
Researchevidencealsosupportsthefollowingwithregardtouseoftacticsandthechoiceusedby
managerswithregardtopower:
Themanagersexpectationofthetargetpersonswillingnesstocomplyisanimportantfactor.When
past experience indicates a high probability of success, managers use simple requests to gain
compliance.Wheresuccessislesspredictable,managersaremorelikelytouseassertivenessand
sanctions to achieve their objectives. The organizations culture also plays an important role in
decidingtheuseofpowertactics.Theorganizationalcultureinwhichamanagerworks,willhavea
significantbearingon defining which tacticsareconsidered appropriate. The organization itself will
influence which subset of power tactics is viewed as acceptable for use by managers. People in
different countries tend to prefer different power tactics. For example in US people prefer use of
reason in contrasttoChina where coalitionasatactic is preferred.Differencesare consistent with
values among countriesreason is consistent with Americans preference for direct confrontation
andcoalitionisconsistentwiththeChinesepreferenceforusingindirectapproaches.
1. Wheresuccessislesspredictable,managersaremorelikelytouse__________andsanctions
toachievetheirobjectives
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2. US people prefer use of reason in contrast to China where _____________ as a tactic is

preferred
11.4 Empowerment
Empowermentistheprocessbywhichmanagershelpotherstoacquireandusethepowerrequired
to make decisions affecting both themselves and their work. Moreover, today, managers in
progressiveorganizationsareexpectedtobecompetentatempoweringthepeoplewithwhomthey
work.Ratherthanconcentratingpoweronlyathigherlevelsasfoundinthetraditionalpyramidof
organizations, this concept views power to be shared by all working in flatter and more collegial
structures.
The concept of empowerment is part of the decentralized structures which are found in todays
corporations. Corporate staff is being cut back layers of management are being eliminated the
numberofemployeesisbeingreducedasthevolumeofworkincreases.Thetrendclearlyistowards
creating leaner and more responsive organizations which are flexible and capable of taking faster
decisions with minimum bottlenecks created out of power struggles, typical of bureaucratic tall
structures.Theneedclearlyistowardshavingfewermanagerswhomustsharemorepowerasthey
goabouttheirdailytasks.Hence,empowermentisakeyfoundationoftheincreasinglypopularself
managingworkteamsandothercreativeworkerinvolvementgroups.
Fortheempowermentprocesstosetinandbecomeinstitutionalized,powerintheorganizationwill
bechanged.Thefollowingareimportantinthiscontext:
ChangingPositionPower:Whenanorganizationattemptstomovepowerdownthehierarchy,itmust
alsoaltertheexistingpatternofpositionpower.Changingthispatternraisessomeimportantissues
Canempoweredindividualsgiverewardsandsanctionsbasedontaskaccomplishment?
Hastheirnewrighttoactbeenlegitimizedwithformalauthority?
ExpandingtheZoneofIndifference: Whenembarkingonanempowermentprogram,management
needs to recognize the current zone of indifference and systematically move to expand it. All too
often,managementassumesthatitsdirectiveforempowermentwillbefollowedmanagementmay
failtoshowpreciselyhowempowermentwillbenefittheindividualsinvolved,however.
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Thusinempowermentthebasicissueswhichshouldbeaddressedare:
Trainingpeopleinlowerrankshowtofunctioninthenewempoweredposition.Usingorunleashing
power correctly is also an issue and most importantly the authority, responsibility and the
accountabilityprocessshouldbeclearlyoutlinedsoasnottoupsetorganizationalpowerequations.
Just apportioningpower at lower levels without giving the knowledge ofhow to use it can actually
createhavocintheorganizations.
1. _____________ is the process by which managers help others to acquire and use the power
requiredtomakedecisionsaffectingboththemselvesandtheirwork.
2. Whenanorganizationattemptstomovepowerdownthe________,itmustalsoaltertheexisting
patternofpositionpower
11.5 PowerInGroups:Coalitions
Individualswholosepowerorareoutofpowerseektoincreasetheirpowerindividually.Iftheyfailto
do so, then the alternative is to form a coalitionan informal group bound together by the active
pursuitofasingleissue. Thenaturalwaytogaininfluenceistobecomeapowerholderbutthismay
bedifficult,risky,costly,orimpossible.
Insuchanevent,effortsaredirectedtowardsformingacoalitionoftwoormoreoutswho,by
coming together, can combine their resources to increase rewards for themselves. Successful
coalitionshavebeenfoundtocontainfluidmembershipandareabletoformswiftly,achievetheir
targetissue,andquicklydisappeardisintegrate.
Thereareacoupleofpredictionsaboutcoalitionformation.Theyareasfollows:
First, coalitions in organizations often seek to maximize their size. Decisionmaking in

organizationsdoesnotendjustwithselectionfromamongasetofalternatives,butrequiretobe
implemented. The implementation of an commitment to the decision is as important as the
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decision.Itisessentialforcoalitionswithinorganizationstoseekabroadconstituencyandthere
maybeexpansionincoalitiontohelpinconsensusbuilding
Another prediction relates to the degree of interdependence within the organization. More
coalitionsarelikelybecreatedwherethereisagreatdealoftaskandresourceinterdependence.
In contrast, there will be less interdependence among subunits and less coalition formation
activitywheresubunitsarelargelyselfcontainedorresourcesareinplenty.
Finally,coalitionformationwillbeinfluencedbytheactualtasksthatworkersperform.Ingeneral,
themoreroutinethetaskofagroup,thegreaterthelikelihoodthatcoalitionswillform.
1. Successfulcoalitionshavebeenfoundtocontain___________membership.
2. Morecoalitionsarelikelybecreatedwherethereisagreatdealoftaskandresource
__________________.
3. Coalitionformationwillbeinfluencedbythe__________tasksthatworkersperform.
11.6 Politics:PowerInAction
Politics is defined as those activities that are not required as part of ones formal role in the
organization, but that influence, or attempt to influence, the distribution of advantages and
disadvantageswithintheorganization.
Organizational politics is the management of influence to obtain ends not sanctioned by the
organization or to obtain sanctioned ends through nonsanctioned means and the art of creative
compromiseamongcompetinginterests.Theabovedefinitionclearlypointsoutthefollowing:
a.Politicalbehaviorfalloutsidetheambitofonesspecifiedjobrequirements.
b.Itincludeseffortstoinfluencethegoals,criteria,orprocessesemployed fordecisionmaking.
c. It includes a variety of political behaviors such as, withholding vital information from decision
makers,whistleblowing,spreadingrumors,leakingconfidentialinformation,etc.
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In this context, it is necessary to make a distinction between legitimate and illegitimate power
dimensionswithinorganizationalcontexts.
The LegitimateIllegitimate Dimension may be explained in terms of the following (Farrell &
Peterson,1988):
Legitimatepoliticalbehaviorreferstonormaleverydaypoliticscomplainingtoyoursupervisor,
bypassingthechainofcommand,formingcoalitions,etc.
Illegitimate political behaviors that violate the implied rules of the game, such as sabotage,
whistleblowing,andsymbolicprotests,etc.
The vast majority of all organizational political actions are legitimate. The extreme illegitimate
formsofpoliticalbehaviorposeaveryrealriskoflossoforganizationalmembershiporextreme
sanction.
There are two quite different schools of thought found existing in the analysis of literature on
organizationalpolitics.
ThefirsttraditionbuildsonMachiavellisphilosophyanddefinespoliticsintermsofselfinterestand
theuseofnonsanctionedmeans.Inthistradition,organizationalpoliticsmaybeformallydefinedas
the management of influence to obtain ends not sanctioned by the organization or to obtain
sanctionedends through nonsanctioned influence means. Managers are often considered political
whentheyseektheirowngoalsorusemeansthatarenotcurrentlyauthorizedbytheorganizationor
that push legal limits. Where there is uncertainty or ambiguity, it is often extremely difficult to tell
whetheramanagerisbeingpoliticalinthisselfservingsense(Pfeffer,1981).
The second tradition treats politics as a necessary function resulting from differences in the self
interests of individuals. Here, organizational politics is viewed as the art of creative compromise
among competing interests. Inaheterogeneoussociety, individuals will disagreeas to whose self
interests are most valuable and whose concerns should, therefore, be bounded by collective
interests.Politics come intoplayas individualsneed todevelop compromises, avoid confrontation,
andcoexist together.Thesameholdstrueinorganizations,whereindividualsjoin,work,andstay
together because of their selfinterests being served. It is equally important to remember that the
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goals of the organization and the acceptable means are established by organizationally powerful
individualsinnegotiationwithothers.Thus,organizationalpoliticsisalsotheuseofpowertodevelop
sociallyacceptableendsandmeansthatbalanceindividualandcollectiveinterests.
FactorsContributingtoPoliticalBehavior
1. Individualfactors:
Researchershave identified certain personality traits,needs, and otherfactorsthatare likely to be
relatedtopoliticalbehavior.Theyareasfollows:
a. Employees who are high selfmonitors, possess an internal locus of control, and have a high
needforpoweraremorelikelytoengageinpoliticalbehavior.
b.Thehighselfmonitorismoresensitivetosocialcuesandinallprobabilitybemorelikelytobe
skilledinpoliticalbehaviorthanthelowselfmonitor.
c.Individualswithaninternallocusofcontrolaremorepronetotakeaproactivestanceandattempt
tomanipulatesituationsintheirfavor.
d. The Machiavellian personality is comfortable using politics as a means to further his/her self
interestanddoesnotseeitasanunethicalaction..
A persons investment in the organization,perceived alternatives, andexpectations of success will
influencethetendencytopursueillegitimatemeansofpoliticalaction.Thefollowingalternativesare
possibleinthiscontext:
a. Themorethatapersonhasinvestedandthemoreapersonhastolose,thelesslikelyhe/sheis
touseillegitimatemeans.
b. The more alternative job opportunities an individual has, a prominent reputation, or influential
contactsoutsidetheorganization,themorelikelyhe/shewillriskillegitimatepoliticalactions.
c.Alowexpectationofsuccessinusingillegitimatemeansreducestheprobabilityofitsuse.
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1. Organizationalfactors:
Politicalactivityhasgottodomorewiththeorganizationscharacteristicsthanofindividualdifference
variables.Whenanorganizationsresourcesaredeclining,and theexistingpatternofresourcesis
changing,asalso whenthereisopportunityforpromotions,politicsismorelikelytocomeintoplay
andsurface.Certainimportantfindingsinthisregardare:
Cultures characterized by low trust, role ambiguity, unclear performance evaluation systems,
zerosum reward allocation practices, democratic decisionmaking, high pressures for
performance,andselfservingseniormanagerswillcreatefertilegroundsforpoliticking.
When organizations downsize to improve efficiency, people may engage in political actions to
safeguardtheirexistingstatusquo.
Promotiondecisionshaveconsistentlybeenfoundtobeoneofthemostpoliticalinorganizations.
The lesstrust there is within the organization, the higher the level ofpolitical behavior and the
morelikelyitwillbeillegitimate.
Roleambiguitymeansthattheprescribedbehaviorsoftheemployeearenotclear.Thegreater
theroleambiguity,themoreonemayengageinpoliticalactivitysincethereislittlechanceofit
beingvisible..
Makingorganizationslessautocraticbyaskingmanagerstobehavemoredemocraticallyisnot
necessarilyembracedbyallindividualmanagers.Internallyifthemanagersbelieveinautocracy
theywouldusetherequiredcommittees,conferences,andgroupmeetingsinasuperficialwayas
arenasformaneuveringandmanipulating.
Top management may set the climate for politicking by engaging in certain behaviors, thereby
giving a signal to people below in the order that is alright to engage in such behavior. When
employeesseetopmanagementsuccessfullyengaginginpoliticalbehavior,aclimateiscreated
thatsupportspoliticking.
To counter theeffects ofpoliticking and protectoneself in organizational contexts, individuals may

usethreestrategies:
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(1)Avoidactionandrisktaking
(2)Redirectaccountabilityandresponsibility
(3)Defendtheirturf.
Avoidance:Avoidanceisquitecommonincontroversialareaswheretheemployeemustriskbeing
wrongorwhereactionsmayyieldasanction.Themostcommonreactionistoworktotherules.
Thatis,employeesareprotectedwhentheyadherestrictlytoalltherules,policies,andprocedures
ordonotallowdeviationsorexceptions.
Redirecting Responsibility: Politically sensitive individuals will always protect themselves from
accepting blame for the negative consequences of their actions. Again, a variety of wellworn
techniques may be used for redirecting responsibility. Passing the buck is a common method
employees and managers use. The trick here is to define the task in such a way that it becomes
someoneelsesformalresponsibility.
DefendingTurf:Defendingturfisatimehonoredtraditioninmostlargeorganizations.Thisresults
formthecoalitionalnatureoforganizations.Thatis,theorganizationmaybeseenasacollectionof
competing interests held by various departments and groups. As each group tries to increase its
influence,itstartstoencroachontheactivitiesofothergroups.
Therearecertainotherinterestingfindingsregardingpeoplesresponsestoorganizationalpolitics
Research evidence indicates strong points out that perception of organizational politics are
negativelyrelatedtojobsatisfaction.Theperceptionofpoliticsresultsinanxietyorstress.Andwhen
itgetstoomuchtohandle,employeesleavetheorganizations.Itmaythusbeademotivatingforce
and performance may suffer as a result. The effect of politics is moderated by the knowledge the
individualhasofthedecisionmakingsystemandhis/herpoliticalskills.Inthisregardthefollowing
observationshavebeenmade:
Highpoliticalskillsindividualsoftenhaveimprovedperformance.
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Low political skills individuals often respond with defensive behaviorsreactive and protective
behaviorstoavoidaction,change,orblame.
Reactiontoorganizationalpoliticsisalsoinfluencedbyculture.Incountriesthataremoreunstable
politically,workerswilltoleratehigherlevelsofpolitickingthanmorepoliticallystablecounties
1. Organizational politics is viewed as the art of creative _____________ among competing

interests
2. Employeeswhoare___________selfmonitors,possessaninternallocusofcontrol
3. The______________personalityiscomfortableusingpoliticsasameanstofurtherhis/herself
interestanddoesnotseeitasanunethicalaction..
11.7 Summary
Power isthe ability to make thingshappen in the wayan individual wants,either by selfor by the
subordinates.Theessenceofpoweriscontroloverthebehaviorofothers(French&Raven,1962).
Managersderivepower from bothorganizational and individual sources. These sources are called
positionpowerandpersonalpower,respectively.Inanorganizationalcontextleadershipandpower
are related to each others. Power is used by leaders as a means to attain group goals. In other
words,powerisameansoffacilitatingtheirachievementofgoalsandobjectivesthattheyhaveset
for themselves in view of organizational requirements. Power can be categorized into two types:
Formal and informal. Formal Power: is based on the position of an individual in an organization.
Formal power is derivedfromeither ones ability to coerceor reward others or is derivedfrom the
formal authority vested in the individual due to his/ her strategic position in the organizational
hierarchy. Formal power may be categorized into four types: Coercive Power, Reward Power,
LegitimatePower,InformationPower.Personalpowerresidesintheindividualandisindependentof
that individuals position. . Three bases of personal power are expertise, rational persuasion, and
reference.Usingpositionandpersonalpowerwelltoachievethedesiredinfluenceoverotherpeople
isachallengeformostmanagers.Therearemanyusefulwaysofexercisingrelationalinfluence.The
mostcommonstrategiesinvolve:Reason,Friendliness,Coalition,Bargaining,Assertiveness,Higher
authority, and Sanctions. Empowerment is the process by which managers help others to acquire
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andusethepowerrequiredtomakedecisionsaffectingboththemselvesandtheirwork.Moreover,
today, managers in progressive organizations are expected to be competent at empowering the
peoplewithwhomtheywork.Ratherthanconcentratingpoweronlyathigherlevelsasfoundinthe
traditionalpyramidoforganizations,thisconceptviewspowertobesharedbyallworkinginflatter
andmorecollegialstructures.Individualswholosepowerorareoutofpowerseektoincreasetheir
powerindividually.Iftheyfailtodosothenthealternativeistoformacoalitionaninformalgroup
bound together by the active pursuit of a single issue. The natural way to gain influence is to
become a power holder but this may be difficult, risky, costly, or impossible. Politics is defined as
those activities that are not required as part of ones formal role in the organization, but that
influence, or attempt to influence, the distribution of advantages and disadvantages within the
organization.Organizationalpoliticsisthemanagementofinfluencetoobtainendsnotsanctionedby
theorganizationortoobtainsanctionedendsthroughnonsanctionedmeansandtheartofcreative
compromiseamongcompetinginterests.
Terminalquestions
1. Contrastleadershipandpower.
2. Describevarioustypesofformalandinformalpower.
3. Whatdoyoumeanbyorganizationalpolitics?ExplaintheLegitimateIllegitimatedimensionin
organizationalpolitics.
1.Four
2.Reward
3.Absolute
1.Assertiveness
2.Coalition
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1.Empowerment
2.Hierarchy
1.Fluid
2.Interdependence
3.Actual
1.Compromise
2.High
3.Machiavellian
1.Refersection11.1
2.Refersection11.2
3. Refersection11.6
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Unit12
ConflictManagement
Structure
12.1 Introduction
Objectives
12.2 Levelsofconflict
12.3 TheConflictProcess
12.4 Conflictmanagementapproaches
12.5 Negotiation
12.6 Summary
TerminalQuestions
AnswertoSAQsandTQs
12.1 Introduction
Conflict occurs whenever disagreements exist in a social situation over issues (work related or
personal). 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
(Thomas, 1992). Conflict can be either constructive or destructive. Constructive conflict prevents
stagnation,stimulatescreativity,allowstensionstobereleased.However,excessivelevelsofconflict
canhindertheeffectivenessofagrouporanorganization,lessenssatisfactionofgroupmembers,
increasesabsenceandturnoverrates,and,lowersproductivity.
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Learningobjectives:
1. Levelsofconflict
2. TheConflictProcess
3. Conflictmanagementapproaches
Negotiation
Themostimportantviewsaboutconflictareasfollows:
The Traditional View: This approach assumes that all conflict is dysfunctional and hinders
performance.Conflictisseenasadysfunctionaloutcomeresultingfrompoorcommunication,alack
of openness and trust between people, and the failure of managers to be responsive to their
employees.
TheHumanRelationsView:Thisviewbelievesthatconflictisanaturaloccurrenceinallgroupsand
organizations.Sinceitwasnaturalandinevitableitshouldbeaccepted.Itcannotbeeliminatedand
mayevencontributetogroupperformance.
The Interactionist View: This approach encourages conflict on the grounds that a harmonious,
peaceful,tranquil,andcooperativegroupispronetobecomingstaticandnonresponsivetoneeds
forchangeandinnovation.Groupleadersshouldmaintainenoughconflicttokeepthegroupviable,
selfcritical,andcreative.
Functionalvs.DysfunctionalConflict
Functional,constructiveformsofconflictsupportthegoalsofthegroupandimproveitsperformance.
Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. Task
conflict relates to the content and goals of the work. Lowtomoderate levels of task conflict are
functionalandconsistentlydemonstrateapositiveeffectongroupperformancebecauseitstimulates
discussion, improving group performance. Relationship conflict focuses on interpersonal
relationships. These conflicts are almost always dysfunctional and the friction and interpersonal
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hostilities inherent in relationship conflicts increase personality clashes and decrease mutual
understanding.
12.2 LevelsOfConflict
Atworkplace,peoplemayencounterconflictattheintrapersonallevel(conflictwithintheindividual),
the interpersonal level (individual to individual conflict), the intergroup level, or the inter
organizationallevel.
Intrapersonal conflict Some conflicts that affect behavior in organizations involve the individual
alone.Itcanbeofthreetypes(Schermerhornetal,2002):
Approachapproach conflictoccurs when a person must choose between two positiveand equally
attractive alternatives. An example is having to choose between a valued promotion in the
organizationoradesirablenewjobwithanotherfirm.
Avoidanceavoidanceconflictoccurswhenapersonmustchoosebetweentwonegativeandequally
unattractivealternatives.Anexampleisbeingaskedeithertoacceptajobtransfertoanothertownin
anundesirablelocationortohaveonesemploymentwithanorganizationterminated.
Approachavoidance conflict occurs when a person must decide to do something that has both
positive and negative consequences. An example is being offered a higher paying job whose
responsibilitiesentailunwanteddemandsononespersonaltime.
Interpersonalconflictoccursbetweentwoormoreindividualswhoareinoppositiontooneanother.
Itmaybesubstantiveoremotionalorboth.
Intergroupconflictoccursamongmembersofdifferentteamsorgroups.
Interorganizationalconflictoccursasthecompetitionandrivalrythatcharacterizesfirmsoperating
inthesamemarkets.
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1. Intrapersonalconflictmaybeof_________types.
2. _____________________conflictoccurswhenapersonmustchoosebetweentwonegativeand
equallyunattractivealternatives.
3. __________conflictoccursamongmembersofdifferentteamsorgroups
4. Conflictoccurswhenever____________existinasocialsituationoverissues
5. The ___________ View of conflict encourages conflict on the grounds that a harmonious,
peaceful, tranquil, and cooperative group is prone to becoming static and nonresponsive to
needsforchangeandinnovation
6. ___________conflictrelatestothecontentandgoalsofthework.
12.3 TheConflictProcess
Theprocessofconflictmanagementhasthefollowingsteps(Schermerhornetal,2002):
StageI:PotentialOppositionorIncompatibility
Thisstageconcludestheconditionsthatcreateopportunitiesforconflicttoarise.Theconditionsare
asfollows:
1. Communication Communication becomes a source of conflict due to semantic difficulties,
misunderstandings, and noise (distortion) in the communication channels. Differing word
connotations,jargon,insufficientexchangeofinformation,andnoiseinthecommunicationchannel
areallbarrierstocommunicationandpotentialantecedentstoconflict.
2. Structure The term structure includes variables such as size, degree of specialization,
jurisdictionalclarity,membergoalcompatibility,leadershipstyles,rewardsystems,andthedegreeof
dependence. Size and specialization act as forces to stimulate conflict. The larger the group and
more specialized its activities, the greater the likelihood of conflict. The potential for conflict is
greatest where group members are younger and turnover is high. The greater the ambiguity in
responsibilityforactionslies,thegreaterthepotentialforconflict.
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3. Personal variables Personal variables include individual value systems and personality
characteristics. Certain personality types lead to potential conflict. Value differences are the best
explanationfordifferencesofopiniononvariousmatters.
B.StageII:CognitionandPersonalization
Antecedentconditionsleadtoconflictonlywhenthepartiesareaffectedbyandawareofit.Conflict
is personalized when it is felt and when individuals become emotionally involved. Emotions playa
major role in shaping perceptions. Negative emotions produce oversimplification of issues,
reductions in trust, and negative interpretations of the other partys behavior. Positive feelings
increase the tendency to see potential relationships among the elements of a problem, to take a
broaderviewofthesituation,andtodevelopmoreinnovativesolutions(Robbins,2003).
C.StageIII:Intentions
Theprimaryconflicthandlingintentionsarerepresentedasfollows:
Cooperativenessthedegreetowhichonepartyattemptstosatisfytheotherpartysconcerns.
Assertivenessthedegreetowhichonepartyattemptstosatisfyhisorherownconcerns.
Competing:Whenonepersonseekstosatisfyhisorherowninterests,regardlessoftheimpact
ontheotherpartiestotheconflict
Collaborating:Whenthepartiestoconflicteachdesiretofullysatisfytheconcernsofallparties.
Theintentionistosolvetheproblembyclarifyingdifferencesratherthanbyaccommodating.
Avoiding:Apersonmayrecognizethataconflictexistsandwanttowithdrawfromitorsuppress
it.
Accommodating:Whenonepartyseekstoappeaseanopponent,thatpartyiswillingtobeself
sacrificing.
Compromising: When each party to the conflict seeks to give up something, sharing occurs,
resultinginacompromisedoutcome.Thereisnoclearwinnerorloser,andthesolutionprovides
incompletesatisfactionofbothpartiesconcerns.
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StageIV:Behavior
Thebehaviorstageincludesthestatements,actions,andreactionsmadebytheconflictingparties.
These conflict behaviors are usually overt attempts to implement each partys intentions. It is a
dynamic process of interaction with a continuum. At the lower part of the continuum, conflicts are
characterizedbysubtle,indirect,andhighlycontrolledformsoftension.Conflictintensitiesescalate
astheymoveupwardalongthecontinuumuntiltheybecomehighlydestructive.Functionalconflicts
aretypicallyconfinedtothelowerrangeofthecontinuum.
StageV:Outcomes
Outcomesmaybefunctionalimprovinggroupperformance,ordysfunctionalinhinderingit.Conflict
isconstructivewhenit(Robins,2003):
a.Improvesthequalityofdecisions.
b.Stimulatescreativityandinnovation.
c.Encouragesinterestandcuriosity.
d.Providesthemediumthroughwhichproblemscanbeairedandtensionsreleased.
e.Fostersanenvironmentofselfevaluationandchange.
Outcomesmaybedysfunctionalaswell.Theyareasfollows:
Uncontrolledoppositionbreedsdiscontent,whichactstodissolvecommontiesandeventuallyleads
to the destruction of the group. Undesirable consequences include a retarding of communication,
reductionsingroupcohesiveness,subordinationofgroupgoalstotheprimacyofinfightingbetween
members.Conflictcanbringgroupfunctioningtoahaltandpotentiallythreatenthegroupssurvival.
The demise of an organization as a result of too much conflict is not as unusual as it might first
appear.
1. Communicationbecomesasourceofconflictdueto__________inthecommunicationchannels.
2. The potential for conflict is greatest where group members are __________ and turnover is
__________.
3. Personalvariablesincludeindividualvaluesystemsand_________________characteristics.
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12.4 ConflictManagementApproaches
Therearetwotypesofconflictmanagementapproaches:
Direct
Indirect
Directconflictmanagementapproaches
Therearefiveapproachestodirectconflictmanagement.Theyarebasedontherelativeemphasis
oncooperativenessandassertivenessintherelationshipbetweentheconflictingparties.Theyareas
follows:
Avoidanceitisanextremeformofinattentioneveryonesimplypretendsthattheconflictdoesnot
reallyexistandhopesthatitwillgoaway.
Accommodation involves playing down differences among the conflicting parties and highlighting
similaritiesandareasofagreement.Thispeacefulcoexistenceignorestherealessenceofagiven
conflictandoftencreatesfrustrationandresentment.
Compromiseitoccurswheneachpartygivesupsomethingofvaluetotheother.Asaresultofno
onegettingitsfulldesires,theantecedentconditionsforfutureconflictsareestablished.
Competition hereavictoryisachievedthroughforce,superiorskill,ordominationbyoneparty.It
mayalsooccurasaresultofauthoritativecommand,wherebyaformalauthoritysimplydictatesa
solutionandspecifieswhatisgainedandwhatislostbywhom.Thisisacaseofwinlosesituation
andasaresult,futureconflictsoverthesameissuesarelikelytooccur.
Collaborationitinvolvesarecognitionbyallconflictingpartiesthatsomethingiswrongandneeds
attention.Itstressesgatheringandevaluatinginformationinsolvingdisputesandmakingchoices.
Indirectconflictmanagementapproaches
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Indirectconflictmanagementapproachesincludereducedinterdependence,appealstocommon
goals,hierarchicalreferral,andalterationsintheuseofmythologyandscripts(Schermerhornetal
2002).
Reduced Interdependence When workflow conflicts exist, managers can adjust the level of
interdependencyamongunitsorindividuals(Walton&Dutton,1969).Toreducetheconflict,contact
between conflicting parties may be reduced. The conflicting units can thenbe separatedfrom one
another,andeachcanbeprovidedseparateaccesstoresources. Bufferingisanothertechniqueto
build an inventory, or buffer, between the two groups so that any output slowdown or excess is
absorbedbytheinventoryanddoesnotdirectlypressurethetargetgroup.
AppealstoCommonGoalsAnappealtocommongoalscanfocusonthemutualinterdependenceof
theconflictingpartiestoachievethecommongoalofanorganization.
HierarchicalReferralHereconflictsarereportedtotheseniorlevelstoreconcileandsolve.
1. Thereare___________directapproachestoconflictmanagement.
2. ____________occurswheneachpartygivesupsomethingofvaluetotheother.
3. ___________________isaprocesswhereconflictsarereportedtotheseniorlevelstoreconcile
andsolve.
12.5 Negotiation
Negotiationisaprocessinwhichtwoormorepartiesexchangegoodsorservicesandattemptto
agree upon the exchange rate for them (Robbins, 2008). There are two general approaches to
negotiation: distributivebargainingandintegrativebargaining.
Distributivebargaining
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Whenengagedindistributivebargaining,onestacticsfocusontryingtogetonesopponenttoagree
toonesspecifictargetpointortogetasclosetoitaspossible.Harddistributivenegotiationtakes
place when each party holds out to get its own way. The hard approach may lead to a winlose
outcome in which one party dominates andgains. Soft distributive negotiation, takes place when
onepartyiswillingtomakeconcessionstotheothertogetthingsoverwith.Asoftapproachleadsto
accommodationinwhichonepartygivesintotheother,ortocompromiseinwhicheachpartygives
upsomethingofvalueinordertoreachagreement.
Integrativebargaining
This strategy is adopted to create a winwin solution. Integrative bargaining builds longterm
relationships and facilitates collaborative work. Following conditions are necessary for this type of
negotiationtosucceed(Robbins,2003):
Partieswhoareopenwithinformationandcandidabouttheirconcerns
Asensitivitybybothpartiestotheothersneeds
Theabilitytotrustoneanother
Awillingnessbybothpartiestomaintainflexibility
TheNegotiationProcess
Amodelofthenegotiationprocessisasfollows:
Preparationandplanning:
Atthisstage,homeworkneedstobedoneinregardtothenature,history,concernedparties of
theconflict.Basedontheinformation,astrategyisdeveloped.BoththepartiesBestAlternative
ToaNegotiatedAgreement(BATNA)needstobedetermined.BATNAdeterminesthelowest
valueacceptabletoyouforanegotiatedagreementforboththeparties.
Definitionofgroundrules:
Atthestage,thevenue,thenegotiators,timewillbedecided.
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Clarificationandjustification:
Wheninitialpositionshavebeenexchanged,theorigaldemandsofboththepartiessneedtobe
explainedandjustified. Properdocumentationisrequiredatthisstagetosupporteachofthe
partiesposition.
Bargainingandproblemsolving:
Theessenceofthenegotiationprocessistheactualgiveandtakeintryingtohashoutan
agreement.Concessionswillundoubtedlyneedtobemadebybothparties.
Closureandimplementation:
Thisisthefinalstep,wheretheagreementisformalizedandprocedurestoimplementthe
agreementwillbedeveloped.
IssuesinNegotiation
Someofthemostimportantissueshavebeendiscussedbelow.
1.Theroleofpersonalitytraitsinnegotiation Overallassessmentsofthepersonalitynegotiation
relationship finds that personality traits have no significant direct effect on either the bargaining
processornegotiationoutcomes(Wall&Blum,1991).
2. Gender differences in negotiations Men and women do not negotiate differently. A popular
stereotype is that womenare more cooperative, pleasant, and relationshiporiented innegotiations
thanaremen.Theevidencedoesnotsupportthis.Thebeliefthatwomenarenicerisprobablydue
toconfusinggenderandthelackofpowertypicallyheldbywomen.(Stuhlmacher&Walters,1999).
3. Cultural differences in negotiations Negotiating styles clearly vary across national cultures
(Adler,2002).Theculturalcontextofthenegotiationsignificantlyinfluencestheamountandtypeof
preparationforbargaining,theemphasisontaskversusinterpersonalrelationships,thetacticsused,
etc.
1. Thereare__________generalapproachestonegotiation
2. __________bargainingstrategyisadoptedtocreateawinwinsolution
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3. personality traits have no significant ________ effect on the bargaining process or negotiation
outcomes
12.6 Summary
Conflict occurs whenever disagreements exist in a social situation over issues (work related or
personal). 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
(Thomas, 1992). Conflict can be either constructive or destructive. Constructive conflict prevents
stagnation,stimulatescreativity,allowstensionstobereleased.However,excessivelevelsofconflict
canhindertheeffectivenessofagrouporanorganization,lessenssatisfactionofgroupmembers,
increases absence and turnover rates, and, lowers productivity. Functional, constructive forms of
conflict support the goals of the group and improve its performance. Conflicts that hinder group
performancearedysfunctionalordestructiveformsofconflict.Taskconflictrelatestothecontentand
goalsofthework.Lowtomoderatelevelsoftaskconflictarefunctionalandconsistentlydemonstrate
a positive effect on group performance because it stimulates discussion, improving group
performance.Relationshipconflictfocusesoninterpersonalrelationships.Theseconflictsarealmost
always dysfunctional and the friction and interpersonal hostilities inherent in relationship conflicts
increase personality clashes and decrease mutual understanding. People at work may encounter
conflictattheintrapersonallevel(conflictwithintheindividual),theinterpersonallevel(individualto
individualconflict),theintergrouplevel,ortheinterorganizationallevel.Negotiationisaprocessin
whichtwoormorepartiesexchangegoodsorservicesandattempttoagreeupontheexchangerate
forthem(Robbins,2008).Therearetwogeneralapproachestonegotiation:distributivebargaining
andintegrativebargaining.
Terminalquestions
1. Brieflyexplainthedifferentviewsaboutconflict.
2. Whatarethelevelsofconflictthatpeoplemayexperienceattheworkplace?
3. Explaintheprocessofconflictmanagement.
4. Explainthedifferencebetweendistributiveandintegrativebargaining.
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1. Disagreements
2. Interactionist
3. Task
4. Three
5. Avoidanceavoidance
6. Intergroup
1. Noise
2. Younger,high
3. Personality
1. Five
2. Compromise
3. HierarchicalReferral
1. Two
2. Integrative
3. Direct
1. Refersection12.1
2. Refersection12.2
3. Refersection12.3
4. Refersection12.5
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Unit13
StressManagement
Structure
13.1 Introduction
Objectives
13.2
TypesofStress
13.3
PotentialSourcesofStress
13.4
ConsequencesofStress
13.5
ManagingStress
13.6
Asuggestedframeworkforstressmanagement
13.7
Crisismanagement
13.8
Summary
TerminalQuestions
AnswerstoSAQsandTQs
13.1 Introduction
Stresshasbeendefinedasaphysical,mentaloremotionalresponsetoeventswhichcausemental
orbodilytension.Inthemoderndaylifestressisapartandparcelofourlives.Atthesametime,it
shouldnotexceedthecapacityofanindividualtohandleit.Ifitexceedsinproportiontoapersons
abilities to cope with it, it would cause mental and physical imbalance in the person. Therefore, a
majorchallengeforeveryonetodayistomakestressworkforyouasaproductiveforceratherthan
asadeterrentwhichcancauseimbalanceinanindividual.
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While handling a stressful situation, the brain signals the release of stress hormones. These
chemical substances in turn trigger a set of responses that provides the body with extra energy:
bloodsugarlevelsrise,theheartbeatspeedsupandbloodpressureincreases.Themusclestense
for action. Theblood supply isdiverted awayfrom the gut to the extremitiestohelp the body deal
withthesituationathand.
Learningobjectives:
1. TypesofStress
2. ManagingStress
3. Crisismanagement
13.2 TypesOfStress
Stress can manifest itself in a number of ways depending upon the suddenness of an even to be
dealt with and types of stressors to be handled by an individual. It may manifest itself either
physically,emotionallyand/mentally,ascertainsymptoms.
Physical This happens when the body as a whole suffers due to stressful situation. There are
manysymptomslike,headaches,tensionintheneck,forehead,andshouldermuscles.Longperiods
of stress can cause other serious symptoms like digestive problems, ulcers, insomnia
(sleeplessness), fatigue, high blood pressure, nervousness, excessive sweating, heart ailments,
strokesandhairlossaswell.
Emotional These responses are due to stress affecting the mind and include, anxiety, anger,
depression, irritability, frustration, overreaction to everyday problems, memory loss and a lack of
concentrationforanytask.
Anxiety is exhibited as a response to loss, failure, danger or a fear of the unknown. Anger is a
responsetofrustrationorsocialstressandcanbecomeadangertootherindividuals,ifnotkeptin
check.Depressionisfrequentlyseenasanemotionalresponsetoupsettingsituations,suchas,the
deathofalovedone,illnessandfailure.
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Psychological Longterm stress can cause psychological problems in some individuals.

Symptoms may include social isolation, phobias, compulsive behaviors, eating disorders and night
terrors.
Stress may be classified into two types: positive stress (Eustress) and negative stress (Distress).
Moderateand manageable levels of stressfor a reasonable period of time can be handled by the
body through mobilization of resources and is accompanied by positive emotions, such as,
enjoyment,satisfaction,excitementandsoon.Thisbeneficialelementinstresshasbeendefinedby
Selye (1974) as Eustress (EU meaning good). However, an overload of stress resulting from a
situationofeitheroverarousalorunderarousalforlongperiodsoftimecausesthefollowing:firstan
unpleasant feeling, followed by physical damage, fatigue and in extreme cases, even death of an
individual.ThishasbeentermedbySelyeasdistress(dysmeaningbad).
1. Insomniais__________.
2. Positivestressiscalled________.
3. Negativestressiscalled___________.
13.3 PotentialSourcesOfStress
Whileenvironmentalfactorsareforcesoutsidetheorganization,whichmayactaspotentialsources
of stress due to uncertainties and threats that they create for any organization and its members,
factors withinorganization canalso actaspotential sourceof stress. Togetheror singlythey may
createatenseandvolatileworkingenvironmentwhichcancausestressfororganizationalmembers
becausetheinabilityofindividualstohandlethepressuresarisingoutofthesesources.
Thefollowingmaybeseentobethepotentialsourcesofstress:
1. Environmentalfactors:
Environmentaluncertaintyinfluencesstresslevelsamongemployeesinanorganization.
Changesinthebusinesscyclecreateeconomicuncertainties.
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Politicaluncertaintiescanbestressinducing.
Technologicaluncertaintycancausestressbecausenewinnovationscanmakeanemployees
skillsandexperienceobsoleteinaveryshortperiodoftime.
2. Organizationalfactors:
Pressurestoavoiderrorsorcompletetasksinalimitedtimeperiod,workoverload,ademanding
andinsensitiveboss,andunpleasantcoworkersareafewexamples.
Taskdemandsarefactorsrelatedtoapersonsjob.Theyincludethedesignoftheindividuals
job (autonomy, task variety, degree of automation), working conditions, and the physical work
layout.
Roledemandsrelatetopressuresthatareafunctionoftheroleanindividualplaysinan
organization.
a. Roleconflictscreateexpectationsthatmaybehardtoreconcileorsatisfy.
b. Roleoverloadisexperiencedwhentheemployeeisexpectedtodomorethantimepermits.
c. Roleambiguityiscreatedwhenroleexpectationsarenotclearlyunderstood.
Interpersonaldemandsarepressurescreatedbyotheremployees.
Organizationalstructuredefinesthelevelofdifferentiationintheorganization,thedegreeofrules
andregulations,andwheredecisionsaremade.Excessiverulesandlackofparticipationin
decisionsmightbepotentialsourcesofstress.
Organizational leadership represents the managerial style of the organizations senior executives.
CEOs, by virtue of their managerial styles create an organizational culture which reflects tension,
fear,andanxiety.Theyoveremphasizetightcontrol,hireandfirepolicieswhichkeeporganizational
membersonhotseatandcreatestressamongthem.
3. Individualfactors:
These are factors in the employees personal life. Primarily, these factors are family issues,
personaleconomicproblems,andinherentpersonalitycharacteristics.
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Brokenfamilies, wrecked marriages andotherfamily issues may create stressat workplaceas

well.
Economic problems created by individuals overextending their financial resources. Spending

more than earnings stretches financial positions, create debt situation leading to stress among
individuals.
Asignificantindividualfactorinfluencingstressisapersonsbasicdispositionalnature.Over
suspiciousangerandhostilityincreasesapersonsstressandriskforheartdisease.These
individualswithhighlevelofmistrustforothersalsocausestressforthemselves.
4. Stressorsareadditivestressbuildsup.
IndividualDifferences
1. Fiveindividualdifferencevariablesmoderatetherelationshipbetweenpotentialstressorsand
experiencedstress:
a. Perception
b. Jobexperience
c. Locusofcontrol
d. Selfefficacy
e. Hostility
a.Perception:Moderatestherelationshipbetweenapotentialstressconditionandanemployees
reactiontoit.Stresspotentialdoesntlieinobjectiveconditionsitliesinanemployeesinterpretation
ofthoseconditions.
b.Jobexperience: Theevidenceindicatesthatexperienceonthejobtendstobenegativelyrelated
toworkstress.
Firstistheideaofselectivewithdrawal.Voluntaryturnoverismoreprobableamongpeoplewho
experiencemorestress.
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Second,peopleeventuallydevelopcopingmechanismstodealwithstress.
Collegialrelationshipswithcoworkersorsupervisorscanbuffertheimpactofstress.
c.Locusofcontrol:Thosewithaninternallocusofcontrolbelievetheycontroltheirowndestiny.
Internalsperceivetheirjobstobelessstressfulthandoexternals.
Internalsarelikelytobelievethattheycanhaveasignificanteffectontheresults.
Thosewithanexternallocusbelievetheirlivesarecontrolledbyoutsideforces.
Externalsaremorelikelytobepassiveandfeelhelpless.
d.Selfefficacy:Theconfidenceinonesownabilitiesappearstodecreasestress.
e.Hostility:Peoplewhoarequicktoanger,maintainapersistentlyhostileoutlook,andprojecta
cynicalmistrustofothersaremorelikelytoexperiencestressinsituations.
1. ______________iscreatedwhenroleexpectationsarenotclearlyunderstood.
2. Thosewithan____________locusofcontrolbelievetheycontroltheirowndestiny.
3. ______________Theconfidenceinonesownabilitiesappearstodecreasestress.
13.4 ConsequencesOfStress
Stressshowsitselfinthreewaysphysiological,psychological,andbehavioralsymptoms.
1. Physiologicalsymptoms:
Mostoftheearlyconcernwithstresswasdirectedatphysiologicalsymptomsduetothefactthat
specialistsinthehealthandmedicalsciencesresearchedthetopic.
PhysiologicalsymptomshavetheleastdirectrelevancetostudentsofOB.
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2. Psychologicalsymptoms:
Jobrelatedstresscancausejobrelateddissatisfaction.
Jobdissatisfactionisthesimplestandmostobviouspsychologicaleffectofstress(Robbins,
2003).
Multipleandconflictingdemandslackofclarityastotheincumbentsduties,authority,and
responsibilitiesincreasestressanddissatisfaction.
Thelesscontrolpeoplehaveoverthepaceoftheirwork,thegreaterthestressand
dissatisfaction.
3. Behavioralsymptoms:
Behaviorallyrelatedstresssymptomsincludechangesinproductivity,absence,andturnover,
as well as changes in eating habits, increased smoking or consumption of alcohol, rapid
speech,fidgeting,andsleepdisorders.
1. Stressshowsitselfin_________ways
2. ____________________isthesimplestandmostobviouspsychologicaleffectofstress.
13.5 ManagingStress
Highorlowlevelsofstresssustainedoverlongperiodsoftime,canleadtoreducedemployee
performanceand,thus,requireactionbymanagement.
1. Individualapproaches:
Effectiveindividualstrategiesincludeimplementingtimemanagementtechniques,increasing
physicalexercise,relaxationtraining,andexpandingthesocialsupportnetwork.
Practicingtimemanagementprinciplesalsoleavesasanimportantelementinmanagingstress,
suchas:
a. makingdailylistsofactivitiestobeaccomplished.
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b. prioritizingactivitiesbyimportanceandurgency.
c. schedulingactivitiesaccordingtotheprioritiesset.
d. knowingyourdailycycleandhandlingthemostdemandingpartsofyourjobduringthehigh
partofyourcyclewhenyouaremostalertandproductive.
Noncompetitivephysicalexercisehaslongbeenrecommendedasawaytodealwithexcessive
stresslevels.
Individualscanteachthemselvestoreducetensionthroughrelaxationtechniques,suchas,
meditation,hypnosis,andbiofeedback.
Havingfriends,family,orworkcolleaguestotalktoprovidesanoutletforexcessivestress.
2. Organizationalapproaches
Strategiesthatmanagementmightwanttoconsiderinclude:
a. Improved personnel selection and job placement leading to right personjobfit thereby
reducingchancesofnonperformanceandstresslevel.
b. Useofrealisticgoalsetting,redesigningofjobscanhelpinaligningtheindividualsandjob
effectivelyandreducestress.
c. Traininginstressmanagementtechniquescanbehelpful.
d. Increased employee involvement improves motivation, morale, commitment, and leads to
betterroleintegrationandreductioninstress.
e. Improvedorganizationalcommunicationhelpsincreatingtransparencyinorganizationsand
reducesconfusion,therebydecreasingstresslevelatwork.
f. Establishment of corporate wellness programs is an important component in managing
stress among organizational members by rejuvenating and refreshing them from time to
timeleadingtoincreasedproductivitywithrenewedenergy.
1. ______________physicalexercisehaslongbeenrecommendedasawaytodealwithexcessive
stresslevels
2. Individualscanteachthemselvestoreducetensionthrough_____________techniques,such
as,meditation.
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3. Improved personnel selection and job placement leading to right ______________ thereby
reducingchancesofnonperformanceandstresslevel.
13.6 A SuggestedFrameworkForStressManagement
Asthereisapositivesidetostressandprovides,drive,excitementandmotivationforindividualsto
push themselves to achieve more in their lives in the fulfillment of their set goals, there is no
requirementtoeliminatestressformoneslife.Managingstressshouldbegivenimportancerather
thanelimination.Thegoalshouldbetofindtheoptimallevelofstressthatcanbehandledeffectively
byanindividualwhichwillmotivatethepersonandnotoverwhelmanddistressanindividual.
Howcanonefindoutwhatisoptimalstressforanindividual?
Thereisnosinglelevelofstressthatisoptimalforallpeople.Weareallmotivatedordistressedby
different levels of stimulations in a given situation. Age, mental strength, upbringing and cultural
factors can be important elements that my influence our abilities to handle stress. How much
resilience a person can exhibit while handling stressful situations would vary across individuals as
theyarelikelytodifferintheirphysiologicalresponsestoit. Researcheshaveshownthefollowing
regardingourcapabilitiestohandlestress:
1. Thepersonwhoenjoysarbitratingdisputesandmovesfromjobsitetojobsitewouldbestressed
inajobwhichwasstableandroutine,whereasthepersonwhothrivesunderstableconditions
wouldverylikelybestressedonajobwheredutieswerehighlyvaried.
2. Ourpersonalstressrequirementsandtheamountwhichwecanhandlebeforewesuccumbto
stresschangeswithage.
3. Ithasalsobeenfoundthatmanyillnessesarerelatedtounrelievedstress.Ifoneisexperiencing
stresssymptoms,onehasgonebeyondtheoptimalstresslevelthenitisnecessarytoreduce
thestressintheindividualslifeand/orimprovetheabilitytomanageit.
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HowCanOneManageStressBetter?
Identifying unrelieved stress and being aware of its effect on an individuals life is insufficient for
reducingitsharmfuleffects.Justastherearemanysourcesofstress,therearemanypossibilitiesfor
its management. There are two choices in this regard either change the source of stress and /
changeyourreactiontoit.
Whatisthepathfordoingso?
1.Becomeawareofthestressorsandtheemotionalandphysicalreactions.
Notice what causes distress. Ignoring them is not a solution. Listing out all the events that cause
distress is important. What does an individual tell himself/ herself about the meaning of these
events?Determininghowthebodyrespondstothestress.Doestheindividualbecomenervousor
physicallyupset?Ifso,inwhatspecificways?
2.Recognizingwhatcanbechanged.
Isitpossibletochangethestressorsbyavoidingoreliminatingthemcompletely?Cantheirintensity
bereduced?Isitpossibletoshortenanindividualsexposuretostress?Canonedevotethetimeand
energynecessarytomakeachange(forexample,goalsetting,timemanagementtechniquesmay
beused)?
3. Reducetheintensityoftheemotionalreactionstostress.
The stress reaction is triggered by our perception of danger: physical danger and/or emotional
danger. Are we viewing your stressors in exaggerated terms and/or taking a difficult situation and
makingitadisaster?Arewetryingtopleaseeveryone?Arewe overreactingandviewingthingsas
absolutely critical and urgent? Do we feel you must always prevail in every situation? Work at
adopting more moderate views try to see the stress as something you can cope with rather than
somethingthatoverpowersusisasolutionforreducingstress,internally.
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4.Learning tomoderateourphysicalreactionstostress.
Slow,deepbreathingwillbringyourheartrateandrespirationbacktonormal.Relaxationtechniques
can reduce muscle tension. Electronic biofeedback can help you gain voluntary control over such
thingsasmuscletensionheartrate,andbloodpressure.Medications,whenneededandprescribed
byadoctorcanhelpinmoderatingthephysicalreactions.However,thesealonecannotdothejob.
Learningtomoderatethesereactionsonourownisadesirablesolutioninthelongrun.
5.Buildourphysicalreserves.
Exercising for cardiovascular fitness three to four times a week (moderate, prolonged rhythmic
exerciseisbest,suchaswalking,swimming,cycling,orjogging).Eatingwellbalancedandnutritious
meals are a must. Maintaining the ideal weight is essential. Avoiding nicotine, excessive caffeine,
and other stimulants can be a great help in reducing stress. Mixing leisure with work and taking
breaks from routine work can relax and reduce stress in a person. Getting adequate sleep is of
utmost importance. Being consistent with the sleep schedule helps in reducing stress to a large
extent.
4. Maintainingouremotionalreserves.
Developingsomemutuallysupportivefriendshipsandstablerelationshipshelpinsharingbottledup
emotions and reduce stress. Pursuing realistic goals which are meaningful to, rather than goals
othershaveforsetforuswhichwedonotidentifywithcanhelpinreducingstress.Expectingsome
frustrations,failures,andsorrowsasapartoflifecanmakeusgearupmentallyinhandlingstressful
situationsratherthansuccumbtothem.
1. Thestressreactionistriggeredbyour__________________ofdanger
2. Electronicbiofeedbackcanhelpyougain__________________controloversuchthingsas
muscletension
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13.7 CrisisManagement
ItIsthesystematicattempttoavoidorganizationalcrisesortomanagethosecriseseventsthatdo
occur (Pearson & Clair, 1998). A crisis is a major, unpredictable event that threatens to harm an
organizationanditsstakeholders.
Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the
elementofsurprise,and(c)ashortdecisiontime(Seeger,Sellnow&Ulmer,1998)
There are four types of organizational crises: Sudden Crises, such as fires, explosions, natural
disasters, workplace violence, etc Smoldering Crises, problems or issues that start out small and
could be fixed or averted if someone was paying attention or recognized the potential for trouble
Bizarre,likethefingerintheWendy'sRestaurantChili,aoneofakindcrisisand,PerceptualCrises,
suchasthelongrunningproblemProctor&Gambleusedtohavewiththeirformercorporatelogo,
thatincludedahalfmoonandstars,whichcriticswouldclaimweresymbolsofdevilworship,calling
forboycottsofP&Gproducts.(Smith&Millar,2002).
Irrespectiveofthesizeofanorganizationaffected,themainbenefitsofcrisismanagementwould
encompassthefollowing:
1.Abilitytoassessthesituationfrominsideandoutsidetheorganizationasallstakeholdersmight
perceiveit.
2.Techniquestodirectaction(s)tocontainthelikelyorperceiveddamagespread.
3.Amoreeffectivewaytorapidlytriggerthatpartorpartsofbusinesscontinuitymanagement.
4.Betterorganizationalresilienceforallstakeholders.
5.Compliancewithregulatoryandethicalrequirements,e.g.corporatesocialresponsibility.
6.Muchbettermanagementofseriousincidentsoranyincidentthatcouldbecomeserious.
7.Improvedstaffawarenessoftheirrolesandexpectationswithintheorganization.
8.Increasedability,confidenceandmoralewithintheorganization.
9.Enhancedriskmanagementinsofarthatobviousriskswillbeidentified,mitigated(wherepossible)
andthroughcrisisandbusinesscontinuitymanagementaspreparedfor.
10.Protectedandoftenenhancedreputationamuchreducedriskofposteventlitigation.
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Anexampleofcrisismanagement:
Bhopal: TheBhopaldisasterinwhichpoorcommunicationbefore,during,andafterthecrisiscost
thousands of lives, is an apt example of the role of crosscultural communication in crisis
management plans. According to American Universitys Trade Environmental Database Case
Studies(1997),localresidentswerenotsurehowtoreacttowarningsofpotentialthreatsfromthe
Union Carbide plant. Operating manuals printed only in English is an extreme example of
mismanagement but indicative of systemic barriers to information diffusion. According to Union
Carbides own depiction of the incident (2006), a day after the crisis Union Carbides upper
managementarrivedinIndiabutwasunabletoassistinthereliefeffortsbecausetheywereplaced
under house arrest by the Indian government. Symbolic intervention can be counter productive a
crisis management strategy can help top management in taking more calculated decisions in how
theyshouldrespondtodisasterscenarios.TheBhopalincidentillustratesthedifficultyinconsistently
applyingmanagementstandardstomultinationaloperationsandtheblameshiftingthatoftenresults
fromthelackofaclearmanagementplan.
1. _________elementsarecommontomostdefinitionsofcrisis.
2. Thereare__________typesoforganizationalcrises
13.8 Summary
Stresshasbeendefinedasaphysical,mentaloremotionalresponsetoeventswhichcausemental
orbodilytension.Inthemoderndaylifestressisapartandparcelofourlives.Stresscanmanifest
itselfinanumberofwaysdependinguponthesuddennessofaneventobedealtwithandtypesof
stressors to be handled by an individual. It may manifest itself either physically, emotionally and /
mentally, as certain symptoms. Stress may be classified into two types: positive stress (Eustress)
andnegativestress(Distress).Moderateandmanageablelevelsofstressforareasonableperiodof
timecanbehandledbythebodythroughmobilizationofresourcesandisaccompaniedbypositive
emotions,suchas,enjoyment,satisfaction,excitementandsoon.Thisbeneficialelementinstress
has been defined by Selye as Eustress (EU meaning good). However, an overload of stress
resultingfromasituationofeitheroverarousalorunderarousalforlongperiodsoftimecausesthe
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following: first an unpleasant feeling, followed by physical damage, fatigue and in extreme cases,
evendeathofanindividual.ThishasbeentermedbySelyeasdistress(dysmeaningbad).While
environmental factors are forces outside the organization, which may act as potential sources of
stressduetouncertaintiesandthreatsthattheycreateforanyorganizationanditsmembers,factors
withinorganizationcanalsoactaspotentialsourceofstress.Togetherorsinglytheymaycreatea
tenseandvolatileworkingenvironmentwhichcancausestressfororganizationalmembersbecause
theinabilityofindividualstohandlethepressuresarisingoutofthesesources.Stressshowsitselfin
three waysphysiological, psychological, and behavioral symptoms. As there is a positive side to
stressandprovides,drive,excitementandmotivationforindividualstopushthemselvestoachieve
moreintheirlivesinthefulfillmentoftheirsetgoals,thereisnorequirementtoeliminatestressform
oneslife.Managingstressshouldbegivenimportanceratherthanelimination.Thegoalshouldbeto
findtheoptimallevelofstressthatcanbehandledeffectivelybyanindividualwhichwillmotivatethe
person and not overwhelm and distress an individual. It is the systematic attempt to avoid
organizational crises or to manage those crises events that do occur. A crisis is a major,
unpredictableeventthatthreatenstoharmanorganizationanditsstakeholders.
Terminalquestions
1. Definestress.Explainvarioustypesofstress.
2. Describethepotentialsourcesofstress.
3. Whataretheconsequencesofstress?
4. Discustheindividualandorganizationalapproachestomanagingstress.
5. Discussthevarioustypesoforganizationalcrises
1.Sleeplessness
2.Eustress
3.Distress
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1.Roleambiguity
2.Internal
3.Selfefficacy
1.Three
2.Jobdissatisfaction
1.Noncompetitive
2.Relaxation
3.Personjobfit
1.Perception
2.Voluntary
1.Three
2.Four
2.Refersection13.3
3.Refersection13.4
4.Refersection13.5
5.Refersection13.7
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Structure
14.1 Introduction
Objectives
14.2 Forcesofchanges
14.3 Resistancetochange
14.4 Responsestochange
14.5 Characteristicsoforganizationalchange
14.6 Theoriesofchange
14.7 Strategiesforchangemanagement
14.8 Toolkitformanagingchange
14.9 Summary
TerminalQuestions
AnswertoSAQsandTQs
14.1 Introduction
Organizational change may be defined as the adoption of a new idea or a behavior by an

organization (Daft 1995). It is a way of altering an existing organization to increase organizational
effectivenessforachievingitsobjectives.Successfulorganizationalchangemustcontinuallyfocuson
making organizations responsive to major developments like changing customer preferences,
regulatorynorms,economicshocksandtechnologicalinnovations.Onlythoseorganizationsthatare
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abletoundertakesuitablechangeprograms,cansustainandsurviveinachanginganddemanding
economicorderintheirbidtoremainaheadofothersintherace.
Learningobjectives:
1. Forcesofchanges
2. ResistancetoChange
3. Theoriesofchange
14.2 ForcesOfChanges
Forcesforchangeareoftwotypes:
Internalforces
Externalforces.
Internalforces
ChangeinthetopmanagementChangeinthetopmanagementandconsequentchangeinthe
ideastoruntheorganizationalsoleadstochangeinthesystem,structureandprocesses.
ChangeinsizeoftheorganizationChangeintheorganizationssizeleadstochangeintheinternal
structureandcomplexityoftheoperationsintheorganization.
Performance gaps When a gap between set target and actual results (in terms of market share,
employeeproductivityandprofit)isidentified,organizationsfacetheforcestochangeandreducethe
gap.
Employee needs and values With changing needs and values of the employees, organizations
changetheirpolicies.Forexample,attractivefinancialincentives,challengingassignments,vertical
growthopportunitiesandautonomyatworkmaybeprovidedinanorganizationtoattractandretain
itseffectiveemployees.
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Externalforces
TechnologyTechnologicalchangesareresponsibleforchangingthenatureofthejobperformedat
alllevelsinanorganization.
BusinessscenarioDuetorapidchangesinthebusinessscenariowithincreasingcompetitionand
global economy, theneedsand demands are also changing among the customers, suppliers and
otherstakeholders.Organizationsare,therefore,forcedtochangetheiroperationalmethodstomeet
thedemandsofthestakeholders.
Environmentalfactors Environmentalfactorssuchaseconomic,politicalanddemographicfactors
play a vital role in devising organizational policies and strategy. For example, organizations may
havetochangetheiremploymentpoliciesinaccordance withthegovernmentpolicy,demandofthe
nongovernmentorganizationsandchangingeconomicconditionsofacountry.
1 Forcesforchangeareof_____________types.
2.Organizationsare,therefore,forcedtochangetheiroperationalmethodstomeetthedemandsof
the_____________.
3.Environmentalfactorssuchas___________,______________,and_____________factorsplay
avitalroleindevisingorganizationalpoliciesandstrategy
14.3 ResistanceToChange
Resistancetochangemaybeoftwotypes:
Individualresistance
Organizationalresistance.
Individualresistance
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Change leads to insecurity among the employees because of its unknown consequences.
Employeesdonotknowforcertainwhetherthechangewillbringinbetterprospects.Forexample,
because of technological change people may feel threatened due to the fear of obsolescence of
skills, less wages and losing the job. Change sometimes leads to new dimensions of work
relationships. Due to organizational redesign, the employees may have to work with other set of
peoplethantheirexistingcoworkerswithwhomtheyhavedirectrelationship,anditisgenerallynot
welcomebymostoftheemployees.
Organizationalresistance
Change may bring some potential threat to the organizational power to some people. Therefore,
people try to resist change. The structural inertia in the bureaucratic organizations also hinders
change.Furthermore,resourceconstraintsplayavitalroleinresistancetochange.
1.Resistancetochangemaybeof_________types.
2.Changeleadsto_______________amongtheemployeesbecauseofitsunknown
consequences.
3.Changemaybringsomepotential_________totheorganizationalpowertosomepeople.
14.4 ResponsesToChange
The responses to change depend upon the employees perception about the change. Different
individuals differ in their attitudes and hence, the perceptions towards change. Therefore, one
importanttaskofthemanagementofanorganizationistounderstandandcreateapositiveattitude
amongemployeesregardingchange.
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ReactionstoChange
Threemajorreactionstochangeare:
AngerAfteremployeeshavepassedovertheshockofthenewsituation,mostpeoplewhoviewthe
changeashavinganegativeimpactontheirpersonalsituation,manytimes,theywillbegintoblame
themanagementortalkillaboutmanagement.Thisagitationandanger,ifnotaddressed,maylead
to some peopleactually trying to sabotage the changeprocessby taking stances varying between
activenoncooperationandpassiveresistance.
Denial Manypeople,dependingontheirbasicvaluesandbeliefs,movefromangertoacceptance.
However,thereareasignificantnumberofpeoplewhogothroughadenialphase.Apersongoing
throughthisphasewillmakeupexcuseswhyheorsheshouldnotbeheldaccountableforanything
thatgoeswrongwiththeorganizationasaresultofthechange.Suchattemptstodisassociatefrom
thenewsituationoftencausethepersontoalienateoneselffromthegroup.
Acceptance Oncethepersonhasacceptedthechangeasrealandthatitisgoingtohappen,heor
shebeginstorationalizehisorherroleinthenewsituation.Itisimportanttounderstandthatnotonly
canan individual accept the situationand beginto work towardsthe new vision, but onecan also
acceptthesituationashavinganegativeimpactandchoosetoleavetheorganization.Eitherway,
theindividualacceptsthefactthatthenewenvironmentexists.
OvercomingResistancetoChange
Someapproachescanbetakentoreducetheresistancetochange.Someofthemarelisted
below(Schermerhorn,Hunt,andOsborn2000):
Education and communication Open communication and proper education help employees to
understandthesignificanceofchangeanditsrequirement.Forthat,properinitiativeshouldbetaken
toprovidetheinformationregardingthetype,timing,implication,purposeandreasonforchange.
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EmployeeparticipationandinvolvementPeoplegenerallygetmorecommittedtowardsthechange,
iftheyaredirectlyinvolvedinthechangeprocess.Thisway,theyhavetheopportunitytoclarifytheir
doubts and understand the perspective and requirement of change for the organization. The
managementalsogetsthechancetoidentifythepotentialproblemsthatmayoccurintheworkplace
andthechancetopreventit.
Facilitation and support Change agent can offer a range of supportive measures to reduce
resistance. Empathetic and considerate listening can reduce employees fear and anxiety towards
change.Counsellingsessionstoreducestress,trauma,etc.,canbeaneffectivemeasure.
NegotiationandagreementOrganizationswhichhaveafairchancetofacepotentialresistancefrom
the union representatives, can defuse the resistance by involving them directly in the change
process.Theyshouldbeproperlybriefedabouttheneedandvalueofchange.However,thiscanbe
a costly proposition when there is more than one dominant union in the organization, as all the
contendingpartieswouldfightforpowerandrecognition.
1.Manypeople,dependingontheirbasicvaluesandbeliefs,movefromangerto___________.
2.___________andconsideratelisteningcanreduceemployeesfearandanxietytowardschange
3.Thiscanbeacostlypropositionwhenthereismorethanone_____________unioninthe
organization,asallthecontendingpartieswouldfightforpowerandrecognition.
14.5CharacteristicsOfOrganizationalChange
Characteristics:
Itisdeliberate,systematicandwellthoughtof.
Velocityofchangedependsonthedegreeorlevelofsignificance.
Statusquoischallenged.
Reactioncanbebothpositiveandnegative.
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Focusesonlongtermchange.
Theforcesforchange:
Organizationenvironmentrelationship(merger,strategicalliances,etc.)whereorganizationsattempt
toredefinetheirrelationshipswithchangingsocialandpoliticalenvironment.
Organizational life cycle (changes in culture and structure of organizations evolution from birth
throughgrowthtowardsmaturity).
Political nature of organization (changes in internal control structures, etc.) to deal with shifting
politicalcurrent.
1.Organizationalchangefocuseson________change.
2.InOrganizationenvironmentrelationship,organizationsattempttoredefinetheirrelationshipswith
changing_________and____________environment.
14.6 TheoriesOfChange
Forcefieldanalysistheory
Lewin(1951)proposedathreestepsequentialmodelofchangeprocess:
Unfreezing
Atthisstage,theforces,whichmaintainthestatusquointheorganizationalbehavior,arereducedby
refuting the present attitude and behavior to create a perceived need for something new. It is
facilitated by environmental pressure such as increased competition, declining productivity and
performance,feltneedtoimprovethestyleofwork,etc.
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Moving/changing
Thisstageinvolvesashiftinbehavioroforganizationsbymodifyingsystem,process,technologyand
people.Thisphasecanbeexplainedintermsofcompliance,identificationandinternalization(Rao
andHariKrishna2002).Complianceorforceoccurswhenindividualsareforcedtochangewhether
by reward or by punishment. Internalization occurs when individuals are forced to encounter a
situation that calls for new behavior. Identification occurs when individuals recognize one among
variousmodelsprovidedintheenvironmentthatismostsuitabletotheirpersonality.
Refreezing
Atthisstage,actionsaretakentosustainthedriveforchangeandtofacilitatetheinstitutionalization
processofthechangeeveninadaytodayroutineoftheorganizations.Here,thedesiredoutcomes
arepositivelyreinforcedandextrasupportisprovidedtoovercomethedifficulties.
Actionresearchmodel
Actionresearchmodelisanothermodelofplannedchange.Accordingtothismodel,plannedchange
is a cyclical process in which initial research about organizations provides the data to guide the
subsequentactiontobringtherequiredchanges.Itemphasizesonthesignificanceofdatacollection
anddiagnosispriortoactionplanningandimplementationandcarefulevaluationoftheactions.This
modeldescribeschangeineightsteps:
Problem identification It starts with the identification of one or a combination of problems in the
organizationandconsequentrequirementofbringingchangeinorganizationalpractices.
ConsultationwiththeexpertItisthephasewheretheorganizationconsultswiththeexpertsinthe
same field to generate the ideas for improvement of the situation. At this stage an open and
collaborativeatmosphereisintendedtobesetup.
DatagatheringandpreliminarydiagnosisThisstageisusuallycompletedbytheexpertoftenwiththe
organizational members help. The four basic modes of data gathering are interview, process
observation,questionnairesandorganizationalperformancedata.
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Feedback to key client or group Because action research is a collaborative activity, the diagnostic
dataisfedbacktotheclientusuallywithagrouporworkteammeeting.Theconsultantprovidesthe
clientwithallthenecessarydata.
Joint diagnosis of the problem At this point, the clients and the expert jointly decide whether they
wanttoworkontheidentifiedproblems.
JointactionplanningTheconsultantandtheclientthenjointlydecideonthefurtheraction.Thisisthe
beginningofthemovementprocess(refertoLewinsmodel).Atthisstage,specificactionsaretaken
dependingontheculture,technologyandtheenvironmentoftheorganization.
ActionThisstageinvolvesactualchangefromoneorganizationalstatetoanother.Itmay
includenewmethodsandprocedures,reorganizingstructuresandworkdesigns,andnew
behaviors.
DatagatheringafteractionSinceactionresearchisacyclicalprocess,datamustalsobegathered
aftertheactionhastakenplace.
DimensionsofPlannedChange
Thoughthemodelsofchangedescribehowtoimplementchange,stepsofplannedchangemaybe
implemented in a variety of ways, depending on the clients needs and goals, the change agents
skills and values, and the organizational context. Planned change can be contrasted across
situationsontwokeydimensions:themagnitudeoforganizationalchangeandthedegreetowhich
theclientsystemisorganized(CummingsandWorley1997).
Magnitudeofchange
Planned change can range from incremental change, which involves minute alterations in the
operations, to quantum change i.e. fundamental change in organizational operations including
structure,culture,rewardsystem,informationprocesses,etc.
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Degreeoforganization
In highly mechanistic and bureaucratic organizational dimensions, structure, job design, leadership
styles, policies are too rigid and inflexible. In this type of organizations, communication is
suppressed, conflicts are avoided and employees are apathetic. In contrast, flexible organizations
haveloosetaskdefinition,communicationisfragmentedandjobresponsibilitiesareambiguous.In
bureaucraticorganizations,changethroughlooseningthecontrolonbehaviourisattempted.
1.Lewin(1951)proposeda___________stepsequentialmodelofchangeprocess.
2.Actionresearchmodelisanothermodelof__________ change.
3.Plannedchangecanrangefrom____________changeto_________change.
14.7 StrategiesForChangeManagement
According to Bennis, Benne and Chin (1969), four basic strategies can be adopted to manage
change:
EmpiricalRational
Peoplearerationalandwillfollowtheirselfinterestonceachangeisrevealedtothem.Changeis
basedonthecommunicationofinformationandtheprofferingofincentives.
NormativeReeducative
People are social beings and adheretoculturalnorms and values. Change is basedon redefining
andreinterpretingexistingnormsandvalues,and developingpeoplescommitmentstonewones.
PowerCoercive
People are basically compliant and will generally do what they are told or can be made to do.
Changeisbasedontheexerciseofauthorityandtheimpositionofsanctions.AccordingtoNicklos
(2004),therecanbeafourthstrategyinadaptingtochanges,i.e.environmentaladaptive.
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EnvironmentalAdaptive
Peopleopposelossanddisruption,buttheyadaptreadilytonewcircumstances.Changeisbasedon
buildinganeworganizationandgraduallytransferringpeoplefromtheoldonetothenewone.
1. According to Bennis, Benne and Chin, _______ basic strategies can be adopted to manage
change:
2.According to Nicklos (2004), there can be a ________ strategy in adapting to changes, i.e.
environmentaladaptive.
14.8 ToolkitForManagingChange
AccordingtoNicklos(2004),someofthefactorstoselectaneffectivechangestrategyandsometips
tomanagechangearedescribedasfollows.
Generally,thereisnosinglechangestrategy.Onecanadoptageneralorwhatiscalledagrand
strategybutforanygiveninitiativesomemixofstrategiesservesbest.Whichofthepreceding
strategiestouseinyourmixofstrategiesisadecisionaffectedbyanumberoffactors.Someofthe
moreimportantonesare:
DegreeofresistanceStrongresistancearguesforacouplingofpowercoerciveandenvironmental
adaptive strategies.Weak resistanceor concurrencearguesfora combinationof empiricalrational
andnormativereeducativestrategies.
TargetpopulationLargepopulationsargueforamixofallfourstrategies.
The stakes High stakes also argue for a mix of all four strategies because when the stakes are
high,nothingcanbelefttochance.
ThetimeframeShorttimeframesargueforapowercoercivestrategy.Longertimeframesarguefor
amixofempiricalrational,normativereeducativeandenvironmentaladaptivestrategy.
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Expertise Having adequate expertise at making change argues for some mix of the strategies
outlinedabove.Nothavingtheexpertisearguesforrelianceonthepowercoercivestrategy.
DependencyThisisaclassicdoubleedgedsword.Iftheorganizationisdependentonitspeople,
managementsabilitytocommandordemandislimited.Conversely,ifpeoplearedependentupon
theorganization,theirabilitytoopposeorresistislimited.(Mutualdependencyalmostalwayssignals
arequirementforsomelevelofnegotiation).
1.______________resistancearguesforacouplingofpowercoerciveandenvironmentaladaptive
strategies.
2._________________populationsargueforamixofallfourstrategies.
3.Shorttimeframesarguefora_____________strategy.
14.9 Summary
Organizational change may be defined as the adoption of a new idea or a behavior by an
organization. Itisawayofalteringanexistingorganizationtoincreaseorganizationaleffectiveness
forachievingitsobjectives.Forcesforchangeareoftwotypes:Internalforcesandexternalforces.
Internalforcesare:changeinthetopmanagement,changeinsizeoftheorganization,performance
gaps and employee needs and values. External forces are technology, business scenario, and
environmental factors. Resistance to change may be of two types: Individual resistance and
Organizationalresistance.Changeleadstoinsecurityamongtheemployeesbecauseofitsunknown
consequences.Employeesdonotknowforcertainwhetherthechangewillbringinbetterprospects.
Thisresultsintoindividualresistance.Changemaybringsomepotentialthreattotheorganizational
power to some people. This leads to organizational resistance. The responses to change depend
upon theemployees perceptionaboutthe change. Different individuals differ in their attitudes and
hence, the perceptions towards change. Three major reactions to change are: Anger, Denial and
Acceptance.Someapproachescanbetakentoreducetheresistancetochange,suchas,Education
and communication, Employee participation and involvement, Facilitation and support, and
Negotiation and agreement. Organizational change is deliberate, systematic and well thought of.
Velocity of change depends on the degree or level of significance and the status quo in the
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organizationischallengedwithalongtermfocus.Twomajortheoriesofchangeare (i)Forcefield
analysis theory and (ii) Action Research Model. Lewin proposed a three steps sequence of
unfreezing, moving and refreezing as the change process in Force Field Analysis Theory.
AccordingtoActionResearchModel,plannedchangeisacyclicalprocessinwhichinitialresearch
aboutorganizationsprovidesthedatatoguidethesubsequentactiontobringtherequiredchanges
ineightsteps.
Terminalquestions
1. Whataretheforcesofchange?Explain.
2. Explainthedifferenttypesofresistancetochange.
3. Describetheforcefieldanalysismodelandactionresearchmodel.
4. Basedon thetoolkitforwarded by Nicklos stated in this chapter,explainhowone can manage
change.
1Two
2.Stakeholders
3.Economic,politicalanddemographic
SelfAssessmentQuestions 2
1.Two
2.Insecurity
3.Threat
1.Acceptance.
2.Empathetic
3.Dominant
1.Longterm
2.Socialandpolitical
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1.Three
2.Planned
3.Incremental,quantum
1.Four
2.Fourth
1.Strong
2.Large
3.Powercoercive
1.Refertosection14.2
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Structure
15.1 Introduction
Objectives
15.2 CharacteristicsofOrganizationdevelopment
15.3 Historyoforganizationdevelopment
15.4 Processoforganizationdevelopment
15.5 ODinterventions
15.6 Summary
TerminalQuestions
AnswertoSAQsandTQs
15.1Introduction
Organization development (OD) is a planned approach to improve employee and organizational

effectivenessbyconsciousinterventionsinthoseprocessesandstructuresthathaveanimmediate
bearingonthe human aspect of theorganization(Ramanarayan, Rao, andSingh1998).OD is an
organizationwideplannedeffort,managedfromthetop,toincreaseorganizationaleffectivenessand
health through planned interventions in the organizational processes, using behavioural science
knowledge.IntheinitialphaseofthedevelopmentofOD,primaryfocuswasonhumanaswellasthe
process aspect of the organizations with a view to improve trust, communication, teamwork and
interpersonalrelationship(FriedlanderandBrown1974).
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Learningobjectives:
1. CharacteristicsofOrganizationdevelopment
2. Historyoforganizationdevelopment
3. ODinterventions
15.2 CharacteristicsOfOrganizationDevelopment
A number of special characteristics together distinguish organizational development from other

approachestomanagingandimprovingorganizationalfunction.
Behaviouralsciencebase
Itisprimarilyconcernedwithimprovingtheorganizationbyfocusingonaspectsthathaveabearing
on human and social improvement. Its principles have been drawn largely from the field of
organizationalbehaviorandsocialsciences.
Normativeapproachtoorganizationalchange
ODisanormativeprocessgroundedinvalueladenassumptionofwhatconstitutesidealindividual
andorganizationalgrowth.DevelopmentfortheODpractitionersmeansthemovementofindividuals
andorganizationsincertaindirectionsconsistentwithdemocraticandhumanisticvaluesandideals
suchasautonomy,selfactualization,etc.
Deliberateinterventionintheorganization
ODimpliesdeliberateinterventionintheongoingprocessesofanorganization.Whileallthesocial
systems, in the ordinary course of events, tend to grow in predictable patterns, they may fail to
optimizetheircapabilitiesduetoaninabilitytorecognizetheirpotentialortoanticipateandeffectively
copewithinternalandexternalcrisis.Developmentimpliesplanningandactiontoensurethatgrowth
takesplaceconsistentwithvalues.
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Normativedeductivestrategy
Itisbasedontheassumptionsthatthesocialnormsareoneofthestrongreinforcersofbehaviour
(Chin and Benne 1976). The culture of the organization is affected by those norms and hence, to
change the existing organizational culture prevalent norms have to be reduced, modified and
replaced by more effective ones. This approach talks about the change in the organization, which
looksforwardtoalongtermimprovementthroughinternalizationofnewnormsofbehavior.
Systemsapproachtochange
Leavitt (1972) has viewed an organization as a social system consisting of different subsystems
such as task, structure, technology and human resource, interlinked by various processes. Any
changeinonepartorprocesshasimplicationsforotherpartsorprocessesrelevanttothesystem.
ODtechniquesareusedtochangeormodifytheprocessestochangethesystemconsequently.
Usingactionresearchmodel
Actionresearchmodelisadatabased,problemsolvingmodelthatreplicatedthestepsinvolvedin
thescientificmethodofinquiry(FrenchandBell1991).OD,usingthismodel,involvesasystematic
processofdiagonisingorganizationalproblemsthroughdatacollectionandanalysis,feedingthedata
backtotheorganizationalclientgroup,discussingthefindings,planningcollaborativeactionand
implementingproposedsolutions.
Useofexternalconsultant
Here,theassumptioninODisthatthepresenceofaqualifiedbehaviouralscientistasanexternal
consultantcanhelptheprocessofODinthefollowingmanner:
Thespecializedknowledgeofthatconsultantbecomesavailabletotheorganization.
The consultant, as a neutral outsider, is likely to face lesser resistance during the process of
change.
Heislesslikelytohaveapersonalstakeinimplementationofproposedchange.
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1. ODimplies____________________interventionintheongoingprocessesofanorganization
2. Itisbasedontheassumptionsthatthesocialnormsareoneofthestrong________________of
behaviour
3. Leavitt(1972)hasviewedanorganizationasa___________system
15.3 HistoryOfOrganizationDevelopment
TheconceptofODhasemergedfromfourstems.Theyaredescribedbelow:
Laboratorytrainingbackground
This is popularly known as Tgroup or Sensitivity Training conducted in the National Training
Laboratory(NTL).KurtLewinwasthepioneerofthisresearch.Inthistraining,asmallunstructured
group of participants, unknown to each other, learnt about issues such as interpersonal relations,
personal growth, leadership and group dynamics from their own interactions. The experiment
concluded:
Feedbackaboutgroupinteractionwasarichlearningexperience.
Theprocessofgroupbuildinghadpotentialforlearningthatcouldbetransferredtobackhome
situation.
Actionresearch/surveyfeedbackbackground
It was observed that a collaborative effort between the organizational members and the scientists
wasrequiredtogatherdataaboutanorganizationsfunctioningtoanalyzethecausesofproblems,
andtodeviseandimplementsolutions.FurtherworkinthisareawasconductedbyLikert(1967)and
Mann (1962). Data was required to assess the degree of effectiveness of those solutions. This
approach,today,isasoneofthemostimportantmethodsforODinterventionsinorganizations.
Participativemanagementbackground
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Following thebeliefsproposedby the two stems discussed earlier, Likert (1967)proposedanother

framework to enhance organizational effectiveness. This framework proposed organizations as
havingoneofthefourtypesofmanagementsystems:
Exploitive authoritative system (system 1) which exhibits an autocratic topdown approach to

leadership.
Benevolentauthoritativesystem(system2)whichismorepaternalisticthansystem1.
Consultativesystem(system3)whichischaracterizedbyincreasedemployeeinteraction,open
communicationanddecisionmaking.
Participativegroup(system4)whichnurtureshighdegreeofemployeeinvolvement,participation
andopenworkculture.
Using system management, through a surveyfeedback process, Likert experimented with several
interventions.Theopencultureandemployeeinvolvementfacilitatedtheimplementationprocessof
thesolutionsprovidedfortheproblems.
Qualityofworklife(QWL)background
BasedontheresearchofEricTristetal.attheTavistcockInstituteofHumanRelationsinLondon,
this approach looked both at technical and human sides of organizations and how they are
interrelated. QWLprograms,ingeneral,requirejointparticipationbyunionandmanagementinthe
process of workdesigning, which consequently result into high level of task variety, appropriate
feedback and employee discretion. The most distinguishing feature of QWL program is the
developmentofselfmanagingworkgroupswhichconsistofmultiskilledworkers.
1. Laboratorytrainingispopularlyknownas__________training.
2. Exploitiveauthoritativesystemexhibitsanautocratic______________approachtoleadership.
3. The most distinguishing feature of QWL program is the development of __________________
workgroupswhichconsistofmultiskilledworkers.
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15.4 ProcessOfOrganizationDevelopment
AtypicalODprocesscanbedividedintothefollowingphases:
Problemidentification:ThefirststepinODprocessinvolvesunderstandingandidentificationofthe
existing and potential problems in the organization. The awareness of the problem includes
knowledge of the possible organizational problems of growth, human satisfaction, the usage of
humanresourceandorganizationaleffectiveness.
Data collection: Having understood the exact problem in this phase, the relevant data is collected
throughpersonalinterviews,observationsandquestionnaires.
Diagnosis:ODeffortsbeginwithdiagnosisofthecurrentsituation.Usually,itisnotlimitedtoasingle
problem. Rather a number of factors like attitudes, assumptions, available resources and
management practice are taken into account in this phase. According to Rao and Hari Krishna
(2002),fourstepsinorganizationaldiagnosiscanbeidentified:
Structuralanalysis:Determineshowthedifferentpartsoftheorganizationarefunctioningintermsof
laiddowngoals.
Processesanalysis:Processimpliesthemannerinwhicheventstakeplaceinasequence.Itrefers
tothepatternofdecisionmaking,communication,groupdynamicsandconflictmanagementpatterns
withinorganizationstohelpintheprocessofattainmentoforganizationalgoals.
Function analysis: This includes strategic variables, performance variables, results, achievements
andfinaloutcomes.
Domainanalysis:Domainreferstotheareaoftheorganizationfororganizationaldiagnosis.
Planning and implementation: After diagnosing the problem, the next phase of OD, with the OD
interventions,involvestheplanningandimplementationpartofthechangeprocess.
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Evaluation and feedback: Any OD activity is incomplete without proper feedback. Feedback is a
processofrelayingevaluationstotheclientgroupbymeansofspecificreportorinteraction.
1. The__________stepinODprocessinvolvesunderstandingandidentificationoftheexistingand
potentialproblemsintheorganization.
2. AnyODactivityisincompletewithoutproper_____________.
15.5 ODInterventions
ODinterventionreferstoanactivitythatiscarriedoninanorganizationwiththehelpofaninternalor
external OD consultant for achieving a given goal or objective (Prasad 1970). Broadly, OD
interventionscanbecategorizedasunder:
Humanprocessinterventions
Technostructuralinterventions
Humanresourceinterventions
Strategicinterventions
HumanProcessInterventions
These interventions are aimedat the socialprocessesoccurring within organizations. Someof the
importanthumanprocessinterventionsarediscussedbelow.
Tgroups
Tgroups are designed to provide members with experiential learning about group dynamics,
leadership and interpersonal relationships. The basic Tgroup training or sensitivity training is to
change the standards,attitudesand behaviorofindividualsby usingpsychologicaltechniques and
programs.Sensitivitytraininginvolvesgroupconfessionwheretheindividualsproblemsbecomethe
problemsofthegroup,whichinturntriestofindasolution.Aftercritiquingothersandbeingcritiqued,
doubt is introduced into the mind of each individual as to whose standards are really proper. The
objectivesofTgrouptrainingare:
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Increasedunderstanding,insightandselfawarenessaboutonesownandothersbehaviorand
itsimpactonselfandothers.
Betterunderstandingaboutthegroupandintergroupprocesses(facilitatingandinhibitinggroup
function).
Increaseddiagnosticskills.
Increasedabilitytotransferlearningintoaction.
Processconsultation
It has been defined as a set of activities on the part of the consultant that helped the client to
perceive, understand and act upon the process of events that occur in the clients environment in
ordertoimprovethesituationasdefinedbytheclient(Schein1987:11).
Itdealsprimarilywithfiveimportantgroupprocesses:
Communication.
Thefunctionalrolesofgroupmembers.
Thewaysinwhichthegroupsolvesproblemsandmakesdecisions.
Thedevelopmentandgrowthofgroupnorms.
Theuseofleadershipandauthority.
Thirdpartyinterventions
Itfocusesoninterpersonalorintergroupconflicts.Conflictscanarisefromtwosources:
Substantiveissueslikeworkmethods,payratesandconditionsofemployment.
Interpersonal issues such as differences in personality, task orientations, perceptions among

groupmembers,completionoverscarceresources.
Teambuilding
Itisaneffectiveapproachtodevelopandnurtureateamcultureinanorganization,whichhelpsthe
group members to enhance their interpersonal and problemsolving skills. It also helps group
members to develop a higher level of motivation to carry out the group decisions by overcoming
specific problems like apathy, general lack of interest among members, loss of productivity,
increasingcomplaintswithinthegroup,confusionaboutassignments,lowparticipationinmeetings,
lackofinnovationandinitiation,increasingcomplaintsfromthoseoutsidethegroupaboutthequality,
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timeliness,effectivenessofservicesandproducts,etc.Thisinterventioncanbeusedforthefollowing
typesofteams:
Groupsreportingtothesamesupervisor,manager/executive.
Groupsinvolvingpeoplewithcommonorganizationalgoals.
Temporarygroupformedtoperformaspecific,onetimetask.
Groupsconsistingofpeoplewhoseworkrolesareinterdependent.
Groupswhosemembershavenoformallinksintheorganization,butwhosecollectivepurposeis
toachievetasktheycanachieveasindividuals.
Dependingonthetypesofteams,thereareanumberoffactorsthataffecttheoutcomeof
aspecificteambuildingactivity:
Thelengthoftimeallocatedtotheactivity.
Theteamswillingnesstolookatthewayinwhichitoperates.
Thelengthoftimetheteamhasbeenworkingtogether.
Thepermanenceoftheteams.
TechnostructuralInterventions
Due to increasing global competition and rapid technological and environmental changes, the
organizationsareforcedtomoveawaytraditionalbureaucraticstructures(functional,selfcontained
andmatrixstructure)tomoreflexiblestructures(processbasedandnetworkbasedstructures).This
involves streamlining of workflows through structural adjustments by breaking down functional
barriers. In this context, the technostructural interventions help the organizations in structural
redesigning aiming at reorganizing organizational structure, the alternative methods of organizing
workactivitiesandintegratingpeopleinabetterway.
HumanResourceInterventions
Theseareconcernedwithmethodsofmanagingpeopleinamoreeffectiveandefficientwaywhile
ushering in the change process inanorganization. These interventionsare traditionallyassociated
withthehumanresourcemanagementfunctionandareincreasinglybecominganintegralpartofthe
changemanagementactivities,forexample,dealingwithsettingperformancegoalsforgroupsand
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individuals, performance appraisal and reward management. Activities such as career planning,
managingworkforcediversity,managingemployeewellnessalsocomeunderthiscategory.
StrategicInterventions
Theseinterventionsfocusonorganizingtheresourcesoftheorganizationtogainacompetitiveedge
inthemarket.Thesegenerallyadoptthetopdownmanagementofchangeapproachandrequirea
thorough and indepth environmental scanning and awareness. The basic philosophy of this
approach lies in developing core competencies or getting access to larger market share and
technology,hithertoabsentintheorganization,throughallianceswithotherorganizationspossessing
the same. On the other hand, interventions such asorganizational culture change programme and
organizational learning helps organizations to gain the internal capacity to institute their change
managementprocesssuccessfullythroughcontinuousawareness,selfrenewalandlearning.Thus,
the thrust in this process is mainly on identifying the external sources of change and developing
internalcapabilitiestoaddressthem.
AbadAhmed(1972)hasproposedsixstepsinanODprocess:
1.Motivationforchange
Themotivationforchangeemergesfrompressures,externalorinternal,feltbythetopmanagement
orthenewstrategicdecisionsoftopmanagement.
2.Datacollection,problemidentificationanddiagnosis
Throughout the OD programme, especially at the outset, these activities should be acted upon
through interviews, surveys and meetings. Both, top management, other organizational members
andODspecialisttakeactivepartintheseactivities.
3.Planningstrategyforchange
Atthisstage,thediagnosisofproblemistransformedintoaproperactionplan.Specificgoalsareset
andthespecificapproachesforattainingthesegoalsarealsospecifiedsequentially.
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4.Interveninginthesystem
Itaimstoresolvedifficulties,removehurdlesandgivemomentumtoincreasetheeffectivenessofthe
organization(Dwivedi2001).HeretheODspecialists,and/orthetopmanagementtakeactivepartin
theprocess.Someexamplesoftheseinterventionsare:jobenlargement,processconsultationand
otherlaboratorymethods,whichhavebeendiscussedearlierinthischapter.
5.Reinforcementandfollowup
Apossibilityofregressiontotheearlierbehaviouralpatterndoesexistifadequatecareisnottakento
adapt mechanismsfor reinforcement andfollowupofthe planned change.Establishingtaskforce,
projectteamsandtemporarysystemsintheorganizationcanbecreatedtoperformtheresponsibility
toimplementandmonitortheplansdefinedintheODprogramme.
6.Monitoringandevaluation
A needfor careful monitoring to getfeedback regarding theeffectivenessoftheOD programme is
alwaysfelt.Inthisrespect,appraisalofthechangeefforts,comparativeanalysisofcontrolgroups,
preandpostinterventionassessmentsaresomeofthemethodstogetthefeedbackinthisregard.
RoleofODConsultant
According to Maheswari (1979), the role of an OD consultant is of a guru (teacher) who needs to
possess the knowledge, wisdom and sensitivity visvis the problems of an organization. On the
basisofhiswisdom,hemayadvisetheclient(organization)toimplementcertainchanges.However,
it has tobe remembered that effective implementation of theadvices are sole responsibility of the
client.Theconsultantintendstoadvisetheclienttotakeappropriateactions,convincestheclientfor
the required changes and helps it to modify the mindset. OD consultants, in Indian organizations,
generallyfacethefollowingdifficulties(Dwivedi2001):
The perception of the entrepreneurs about OD The owners of the organization, in India, feel
threatened that their power would be reduced if the OD interventions areapplied,and it would be
difficult to discipline people. They also feel uncomfortable in discussing about their operational
methodswiththeirmanagersorconsultants.Moreover,theygenerallydonottrustconsultantsfully.
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RoleoftheODconsultantsThereisconfusionabouttheroleoftheODconsultant.Itiscommonly
believedthattheroleoftheODconsultantistodiagnoseallorganizationalproblems,suggestproper
solutions,puttheseallinareportandleaveittotheanagementtotakeactionsonit.
SelfAssessmentQuestions 4
1. Tgroupsaredesignedtoprovidememberswith_________learningaboutgroupdynamics.
2. AbadAhmedhasproposed___________stepsinanODprocess.
15.6 Summary
Organization development (OD) is a planned approach to improve employee and organizational
effectivenessbyconsciousinterventionsinthoseprocessesandstructuresthathaveanimmediate
bearingonthe human aspect of theorganization(Ramanarayan, Rao, andSingh1998).OD is an
organizationwideplannedeffort,managedfromthetop,toincreaseorganizationaleffectivenessand
health through planned interventions in the organizational processes, using behavioral science
knowledge.Anumberofspecialcharacteristicstogetherdistinguishorganizationaldevelopmentfrom
other approaches to managing and improving organizational function. Behavioral science base
approachisprimarilyconcernedwithimprovingtheorganizationbyfocusingonaspectsthathavea
bearing on human and social improvement. Normative approach to organizational change is a
normative process grounded in valueladen assumption of what constitutes ideal individual and
organizational growth. Deliberate intervention in the organization implies deliberate intervention in
theongoingprocessesofanorganization.Normativedeductivestrategyisbasedontheassumptions
that the social norms are one of the strong reinforcers of behavior. Leavitt (1972) has viewed an
organization as a social system consisting of different subsystems such as task, structure,
technology and human resource, interlinked by various processes. Any change in one part or
processhasimplicationsforotherpartsorprocessesrelevanttothesystem.Actionresearchmodel
isadatabased,problemsolvingmodelthatreplicatedthestepsinvolvedinthescientificmethodof
inquiry(FrenchandBell1991).OD,usingthismodel,involvesasystematicprocessofdiagonising
organizational problems through data collection and analysis, feeding the data back to the
organizational client group, discussing thefindings, planning collaborative actionand implementing
proposed solutions. The concept of OD has emerged from four stems: (i) Laboratory training
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background, (ii) Actionresearch/surveyfeedback background, (iii) Participative management, and

(iv)Qualityofworklife(QWL)approach.AtypicalODprocesscanbedividedintophases,suchas,
Problemidentification,Datacollection,Diagnosis,Structuralanalysis,Processesanalysis,Function
analysis,Domainanalysis,Planningandimplementation,andEvaluationandfeedback.Broadly,OD
interventionscanbecategorizedasHumanprocessinterventions,Technostructuralinterventions,
Humanresourceinterventions,andStrategicinterventions.Effectiveimplementationsoftheadvices
are sole responsibility of the client. The consultant intends to advise the client to take appropriate
actions, convinces the client for the required changes and helps it to modify the mindset. OD
consultants,inIndianorganizations,generallyfacethefollowingdifficulties(Dwivedi2001).
TerminalQuestions
1. WhatisOD?DiscussthecharacteristicsofOD.
2. WhatdoyoumeanbyTgrouptraining?BrieflyexplainLikertsframework.
3. DescribeatypicalODprocess.
1.Deliberate
2.Reinforcers
3.Social
1.Tgroup
2.Topdown
3.Selfmanaging
1.First
2.Feedback
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1.Experiential
2.Six
2.Refersection15.3
3.Refersection15.4
218

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ManagementProcessandOrganizationBehavior

Director, Manipal Institute of Management,

Asst. Professor,. Sikkim Manipal University of FormerGroupTreasurer

statement may be accompanied by an overarching statement of philosophy or strategic purpose

1. Traditional management This activity consists of planning, decision making, and

3. Human resource managementThis activity consists of motivating, disciplining,

Organizational Behavior emphasizes on intellectual capital as represented by the sum total of

abilities. Muscular strengthandcardiovascular enduranceare twoamong the manyphysicalability

4. Reinforcement processes Individuals will be motivated to exhibit the modeled behavior if

2. Selfmanagement requires an individual to deliberately manipulate stimuli, internal processes,

3. Individualism vs. collectivism: Individualism gauges to what extent individuals in a country

1. Are leader behaviors, attributesand organizational practices universally acceptedand effective

2. Power distance: it is the degree to which power is unequally shared in a society or an

5. Gender egalitarianism: GLOBE has defined this as an extent to which a society or an

7. Future orientation: it is the degree to which individualsare encouraged in long termfuture

in the same study, Laurent asked managers from

Cognition It is the mental process involved in gaining knowledgeand comprehension, including

2. Voice: Actively and constructively attempting to improve conditions, including suggesting

4. Neglect: Passively allowing conditions to worsen, including chronic absenteeism or lateness,

2. Agreeableness. Individuals propensity to defer to others. High agreeableness people

3. Conscientiousness. A measure of reliability. A high conscientious person is responsible,

externalcauses, controllability and outcomethatwill determine theemotional responses.Whatare

Distinctiveness refers to whether an individual displays different behaviors in different situations.

Knownoptions. It isassumed thedecision maker is aware of allthepossible consequencesof

Constant preferences.Specific decision criteria are constantand the weightsassigned to them

Creative thinking skills. Thisencompassespersonalitycharacteristicsassociated with creativity,

It is an unconscious process created out of distilled experience. It operates in complement with

when thereare several plausible alternative solutionsto choosefrom, withgoodargumentsfor

There are two common categories of heuristicsavailability and

All workgroupsare partof largersystems and organizationsandtherefore cannotexistor work in

Performing and Adjourning. Punctuated equilibrium model of group

A resource needs to be perceived as scarce to create dependency. For example, lowranking

2. US people prefer use of reason in contrast to China where _____________ as a tactic is

First, coalitions in organizations often seek to maximize their size. Decisionmaking in

To counter theeffects ofpoliticking and protectoneself in organizational contexts, individuals may

1. Organizational politics is viewed as the art of creative _____________ among competing

Psychological Longterm stress can cause psychological problems in some individuals.

Brokenfamilies, wrecked marriages andotherfamily issues may create stressat workplaceas

Economic problems created by individuals overextending their financial resources. Spending

Organizational change may be defined as the adoption of a new idea or a behavior by an

Organization development (OD) is a planned approach to improve employee and organizational

A number of special characteristics together distinguish organizational development from other

Following thebeliefsproposedby the two stems discussed earlier, Likert (1967)proposedanother

Exploitive authoritative system (system 1) which exhibits an autocratic topdown approach to

Interpersonal issues such as differences in personality, task orientations, perceptions among

background, (ii) Actionresearch/surveyfeedback background, (iii) Participative management, and

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