Unit - 1

Organizational Behaviour:
Definition, Characteristics
and Nature
Definitions:
Organisational behaviour is a subset of management
activities concerned with understanding, predicting and
influencing individual behaviour in organisational setting.
Callahan, Fleenor and Kudson.
Organisational behaviour is a branch of the Social Sciences
that seeks to build theories that can be applied to predicting,
understanding and controlling behaviour in work
organisations.Raman J. Aldag.
Organisational behaviour is the study and application of
knowledge about how people act within an organisation. It is a
human tool for human benefit. It applies broadly to the
behaviour of people in all types of organisation. Newstrom
and Davis.

Organisational behaviour is directly concerned with the

understanding, production and control of human behaviour in
organisations.Fred Luthans.
NATURE AND SCOPE (FEATURES) OF
ORGANIZATIONAL BEHAVIOUR
Organizational behaviour has emerged as a separate field of study. The nature
it has acquired is identified as follows :
1. A Separate Field of Study and not a Discipline Only
By definition, a discipline is an accepted science that is based on a theoretical
foundation. But, O.B. has a multi-interdisciplinary orientation and is, thus, not
based on a specific theoretical background. Therefore, it is better reasonable to
call O.B. a separate field of study rather than a discipline only.
2. An Interdisciplinary Approach
Organizational behaviour is essentially an interdisciplinary approach to study
human behaviour at work. It tries to integrate the relevant knowledge drawn from
related disciplines like psychology, sociology and anthropology to make them
applicable for studying and analysing organizational behaviour.
3. An Applied Science
The very nature of O.B. is applied. What O.B. basically does is the application
of various researches to solve the organizational problems related to human
behaviour. The basic line of difference between pure science and O.B. is that
while the former concentrates of fundamental researches, the latter concentrates
on applied researches. O.B. involves both applied research and its application in
organizational analysis. Hence, O.B. can be called both science as well as art.
4. A Normative Science

Organizational Behaviour is a normative science also. While the positive

science discusses only cause effect relationship, O.B. prescribes how the
findings of applied researches can be applied to socially accepted organizational
goals. Thus, O.B. deals with what is accepted by individuals and society engaged
in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management
theories.
5. A Humanistic and Optimistic Approach
Organizational Behaviour applies humanistic approach towards people working
in the organization. It, deals with the thinking and feeling of human beings. O.B.
is based on the belief that people have an innate desire to be independent,
creative and productive. It also realizes that people working in the organization
can and will actualize these potentials if they are given proper conditions and
environment. Environment affects performance or workers working in an
organization.
6. A Total System Approach
The system approach is one that integrates all the variables, affecting
organizational functioning. The systems approach has been developed by the
behavioural scientists to analyse human behaviour in view of his/her sociopsychological framework. Man's socio-psychological framework makes man a
complex one and the systems approach tries to study his/her complexity and find
solution to it.
Scope of Organizational Behaviour
The three internal organizational elements viz., people, technology and
structure and the fourth element, i.e., external social systems may be taken as
the scope of O.B.
1. People

The people constitute the internal social system of the organization. They
consist of individuals and groups. Groups may be large or small, formal or
informal, official or unofficial. They are dynamic. They form, change and disband.
Human organization changes everyday. Today, it is not the same as it was
yesterday. It may change further in the coming days. People are living, thinking
and feeling being who created the organization and try to achieve the objectives
and goals. Thus, organizations exist to serve the people and not the people exist
to serve the organization.
2. Structure
Structure defines the sole relationship of people in an organization. Different
people in an organization are given different roles and they have certain
relationship with others. It leads to division of labour so that people can perform
their duties or work to accomplish the organizational goal. Thus, everybody
cannot be an accountant or a clerk. Work is complex and different duties are to
be performed by different people. Some may be accountant, others may be
managers, clerks, peons or workers. All are so related to each other to
accomplish the goal in a co-ordinated manner. Thus, structure relates to power
and duties. One has the authority and others have a duty to obey him.
3. Technology
Technology imparts the physical and economic conditions within which people
work. With their bare hands people can do nothing so they are given assistance
of buildings, machines, tools, processes and resources. The nature of technology
depends very much on the nature of the organization and influences the work or
working conditions. Thus, technology brings effectiveness and at the same
restricts people in various ways.
4. Social System
Social system provides external environment which the organization operates.
A single organization cannot exist also. It is a part of the whole. One organization
cannot give everything and therefore, there are many other organizations. All
these organizations influence each other. It influences the attitudes of people,

their working conditions and above all provides competition for resources and
power.
O.B. is the study of human behaviour at work in organizations. Accordingly, the
scope of O.B. includes the study of individuals, groups and
organization/structure. Let us briefly reflect on what aspects each of these three
cover.
Individuals
Organizations are the associations of individuals. Individuals differ in many
respects. The study of individuals, therefore, includes aspects such as
personality, perception, attitudes, values, job satisfaction, learning and
motivation.
Groups of Individuals
Groups include aspects such as group dynamics,
communication, leadership, power and politics and the like.

group

conflicts,

Characteristics of Organisational Behavior:

From The Above Definitions, The Following Features of
Organisational Behaviour Emerge:
1. Behavioural Approach to Management:
Organisational behaviour is that part of whole management
which represents the behavioural approach to management.
Organisational behaviour has emerged as a distinct field of
study because of the importance of human behaviour in
organisations.

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2. Cause and Effect Relationship:

Human behaviour is generally taken in terms of cause and
effect relationship and not in philosophical terms. It helps in
predicting the behaviour of individuals. It provides
generalizations that managers can use to anticipate the effect
of certain activities on human behaviour.
3. Organisational Behaviour is a Branch of Social
Sciences:
Organisational behaviour is heavily influenced by several
other social sciences viz. psychology, sociology and
anthropology. It draws a rich array of research from these
disciplines.
4. Three Levels of Analysis:
Organisational behaviour encompasses the study of three
levels of analysis namely individual behaviour, inter-individual
behaviour and the behaviour of organisations themselves.
The field of organisational behaviour embraces all these
levels as being complementary to each other.

5. A Science as well as an Art:

Organisational behaviour is a science as well as an art. The
systematic knowledge about human behaviour is a science
and the application of behavioural knowledge and skills is an
art. Organisational behaviour is not an exact science because
it cannot exactly predict the behaviour of people in
organisations. At best a manager can generalize to a limited
extent and in many cases, he has to act on the basis of partial
information.
6. A Body of Theory, Research and Application:
Organisational behaviour consists of a body of theory,
research and application which helps in understanding the
human behaviour in organisation. All these techniques help
the managers to solve human problems in organisations.
7. Beneficial to both Organisation and Individuals:
Organisational behaviour creates an atmosphere whereby
both organisation and individuals are benefitted by each other.
A reasonable climate is created so that employees may get
much needed satisfaction and the organisation may attain its
objectives.

8. Rational Thinking:
Organisational behaviour provides a rational thinking about
people and their behaviour. The major objective of
organisational behaviour is to explain and predict human
behaviour in organisations, so that result yielding situations
can be created.
Nature of Organisational Behavior:
Organisational behaviour in the study of human behaviour in
the organisations. Whenever an individual joins an
organisation he brings with him unique set of personal
characteristics, experiences from other organisations and a
personal background. At the first stage organisational
behaviour must look at the unique perspective that each
individual brings to the work setting.
The second stage of organisational behaviour is to study the
dynamics of how the incoming individuals interact with the
broader organisation. No individual can work in isolation. He
comes into contact with other individuals and the organisation
in a variety of ways. The individual who joins a new
organisation has to come into contact with the co-workers,

managers, formal policies and procedures of the organisation

etc.
Over the time, he is affected by his work experience and the
organisation as well as his personal experiences and maturity.
On the other hand, the organisation is also affected by the
presence or absence of the individual. Thus, it is essential
that OB must study the ways in which the individuals and
organisation interact with each other.
The organisational behaviour must be studied from the
perspective of the organisation itself because an organisation
exists before a particular individual joins in and continues to
exist after he or she has left the organisation. Thus, OB is the
study of human behaviour in the organisation, the individualorganisation interaction and the organisation itself. And these
factors are influenced by the external environment in which
the individuals and the organisation exist.
Thus, we can say that we cannot study individual behaviour
completely without learning something about the organisation.
On the other hand, we cannot study the organisations without
studying the behaviour of the individuals working in it. This is

because the organisation influences and is influenced by the

people working in it. Moreover, both the individuals and the
organisation are influenced by the external environment.
Thus, the field of organisational behaviour is a complex field.
It seeks to throw light on the entire canvas of human factor in
the organisations which will include the causes and effects of
such behaviour.
The Autocratic Model
The basis of this model is power with a managerial orientation of authority. The
employees in turn are oriented towards obedience and dependence on the boss.
The employee need that is met is subsistence. The performance result is
minimal.
In case of an autocratic model, the managerial orientation is doctorial. The
managers exercise their commands over employees. The managers give orders
and the employees have to obey the orders. Thus, the employees orientation
towards the managers/bosses is obedience. Under autocratic conditions,
employees give higher performance either because of their achievement drive or
their personal liking to the boss or because of some other factor.
Evidences such as the industrial civilization of the United States and
organizational crises do suggest that the autocratic model produced results.
However, its principal weakness is its high human cost. The combination of
emerging knowledge about the needs of the employees and ever changing
societal values and norms suggested managers to adopt alternative and better
ways to manage people at work. This gave genesis to the second type of models
or organizational behaviour.
The Custodial Model

The basis of this model is economic resources with a managerial orientation of

money. The employees in turn are oriented towards security and benefits and
dependence on the organization. The employee need that is met is security. The
performance result is passive cooperation.
While studying the employees, the managers realized and recognized that
although the employees managed under autocratic style do not talk back to their
boss they certainly think back about the system. Such employees filled with
frustration and aggression vent them on their co-workers, families and neighbors.
This made the managers think how to develop better employee satisfaction and
security. It was realized that this can be done by dispelling employees'
insecurities, frustration and aggression. This called for introduction of welfare
programmers to satisfy security needs of employees. Provision for an on site daycare centre for quality child care is an example of welfare programme meant for
employees. Welfare programmes lead to employee dependence on the
organization. Stating more accurately, employees having dependence on
organization may not afford to quit even there seem greener pastures around.
The welfare programmes for employees started by the Indira Gandhi National
Open University (IGNOU), New Delhi are worth citing in this context, IGNOU, in
the beginning provided its employees facilities like house-lease facility, subsidized
transport facility, day-time child care centre in the campus, etc. These made
employees dependent on IGNOU which, in turn, became custodian of its
employees.
The basis of this model is partnership with a managerial orientation of
teamwork. The employees in turn are oriented towards responsible behavior and
self-discipline.
Although the custodian approach brings security and satisfaction, it suffers
from certain flaws also. Employees produce anywhere near their capacities. They
are also not motivated to increase their capacities of which they are capable.
Though the employees are satisfied, still they do not feel motivated or fulfilled in
their work they do. This is in conformity with the research finding that the happy
employees are not necessarily most productive employees. Consequently
managers and researchers started to address yet another question. "Is there

better approach/way to manage people?" The quest for a better way provided a
foundation for evolvement to the supportive type of model of organizational
behaviour.
The Supportive Model
The basis of this model is leadership with a managerial orientation of support.
The employees in turn are oriented towards job performance and participation.
The employee need that is met is status and recognition. The performance result
is awakened drives.
The supportive model is founded on leadership, not on money or authority. In
fact, it is the managerial leadership style that provides an atmosphere to help
employees grow and accomplish their tasks successfully. The managers
recognize that the workers are not by nature passive and disinterested to
organizational needs, but they are made so by an inappropriate leadership style.
The managers believe that given due and appropriate changes, the workers
become ready to share responsibility, develop a drive to contribute their mite and
improve themselves. Thus, under supportive approach, the management's
orientation is to support the employee's job performance for meeting both
organizational and individual goals.
However, the supportive model of organizational behaviour is found more
useful and effective in developed nations and less effective in developing nations
like ours because of employee's more awakening in the former and less one in
the latter nations.
The Collegial Model
The collegial model is an extension of the supportive model. As the literal
meaning of the work 'college' means a group of persons having the common
purpose, the collegial model relates to a team work/concept. The basic
foundation of the collegial model lies on management's building a feeling of
partnership with employee. Under collegial approach, employees feel needed
and useful. They consider managers as joint contributors to organizational
success rather than as bosses.

Its greatest benefit is that the employee becomes self-discipline. Feeling

responsible backed by self-discipline creates a feeling of team work just like what
the members of a football team feel. The research studies report that compared
to traditional management model, the more open, participative, collegial
managerial approach produced improved results in situations where it is
appropriate.

Unit 2
Meaning and Definition of Perception:
Perception is the process through which the information from
outside environment is selected, received, 13rganizat and
interpreted to make it meaningful to you. This input of
meaningful information results in decisions and actions.
A few definitions of perception as given by different
authors are as explained below:
Perception may be defined as a process by which individuals
organize and interpret their sensory impressions in order to
give meaning to their environment.
In simple words we can say that perception is the act of
seeing what is there to be seen. But what is seen is
influenced by the perceiver, the object and its environment.
The meaning of perception 13rganizati all these three points.

Nature of Perception:
Perception has been explained by Ajit Singh as follows:
Perception refers to the interpretation of sensory data. In
other words, sensation involves detecting the presence of a
stimulus whereas perception involves understanding what the
stimulus means. For example, when we see something, the
visual stimulus is the light energy reflected from the external
world and the eye becomes the sensor. This visual image of
the external thing becomes perception when it is interpreted in
the visual cortex of the brain. Thus, visual perception refers to
interpreting the image of the external world projected on the
retina of the eye and constructing a model of the three
dimensional world.
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From the above explanation it becomes clear that perception

is something more than sensation. It correlates, integrates
and comprehends diverse sensations and information from
many organs of the body by means of which a person
identifies things and objects, the sensations refer to.

Perception is determined by both physiological and

psychological characteristics of the human being whereas
sensation is conceived with only the physiological features.
Thus, perception is not just what one sees with the eyes it is a
much more complex process by which an individual
selectively absorbs or assimilates the stimuli in the
environment, cognitively organizes the perceived information
in a specific fashion and then interprets the information to
make an assessment about what is going on in ones
environment.
Perception is a subjective process, therefore, different people
may perceive the same environment differently based on what
particular aspects of the situation they choose to selectively
absorb, how they organize this information and the manner in
which they interpret it to obtain a grasp of the situation.

Importance of Perception:
(i) Perception is very important in understanding the human
15rganiza, because every person perceives the world and
approaches the life problems differently- Whatever we see or
feel is not necessarily the same as it really is. It is because
what we hear is not what is really said, but what we perceive

as being said. When we buy something, it is not because it is

the best, but because we take it to be the best. Thus, it is
because of perception, we can find out why one individual
finds a job satisfying while another one may not be satisfied
with it.
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(ii) If people behave on the basis of their perception, we can

predict their 16rganiza in the changed circumstances by
understanding their present perception of the environment.
One person may be viewing the facts in one way which may
be different from the facts as seen by another viewer.
(iii) With the help of perception, the needs of various people
can be determined, because peoples perception is influenced
by their needs. Like the mirrors at an amusement park, they
distort the world in relation to their tensions.
(iv) Perception is very important for the manager who wants to
avoid making errors when dealing with people and events in
the work setting. This problem is made more complicated by

the fact that different people perceive the same situation

differently. In order to deal with the subordinates effectively,
the managers must understand their perceptions properly.
Thus, for understanding the human 17rganiza, it is very
important to understand their perception, that is, how they
perceive the different situations. Peoples 17rganiza is based
on their perceptions of what reality is, not on reality itself. The
world as it is perceived is the world that is important for
understanding the human 17rganiza.
Personality: Meaning and Determinants of Personality!
Man is not born a person. At birth he is an infant possessing
the potentiality of becoming a person. After birth he
associates with other human beings and comes under the
influence of their culture. As a result of a variety of
experiences and social influences he becomes a person and
comes to possess a personality.
The nature of personality and to show the role of culture and
social experience in the formation of personality along with
the problem of personality 17rganization1717n. Since
socialization plays the most important part in the development

of personality and we have discussed it already, the present

discussion, therefore, can only be brief.

I. The Meaning of Personality:

The term personality is derived from the Latin word persona
which means a mask. According to K. Young, Personality is a
. Patterned body of habits, traits, attitudes and ideas of an
individual, as these are 18rganizat externally into roles and
statuses, and as they relate internally to motivation, goals,
and various aspects of selfhood. G. W. Allport defined it as a
persons pattern of habits, attitudes, and traits which
determine his adjustment to his environment.
On the basis of these definitions it may be said there are
two main approaches to the study of personality:
(1) The psychological, and
(2) The sociological.
To sum up we would say that:
(i) Personality is not related to bodily structure alone. It
includes both structure and dynamics
(ii) Personality is an indivisible unit.

(iii) Personality is neither good nor bad.

(iv) Personality is not a mysterious phenomenon.
(v) Every personality is unique.
(vi) Personality refers to persistent qualities of the individual. It
expresses consistency and regularly.
(vii) Personality is acquired.
(viii) Personality is influenced by social interaction. It is
defined in terms of 19rganiza.

TYPES OF GROUP
Introduction
Within many 19rganization19 different groups are formed at different levels, formal
groups, informal groups, primary groups and secondary groups. Some groups maybe
deliberately formed, some groups are formed through an informal setting. Below we
discuss briefly four forms of groups which are found within a company.

Formal Group
A formal group is created within an 20rganization to complete a specific role or task.
This may be a one off objective such as the launch of a particular product or service or
a permanent/ongoing objective such as the provision of Information Technology (IT).
Informal Group
Informal groups are established by individuals who decide they want to interact with
each other. Informal groups usually do not have a specific purpose; often the group
forms because the group members regularly happen to be in the same location or
because they enjoy each others company. For example people may form a group
20rganiz they sit close together in an office or live together in a house.

Primary Group
A primary group is made up of a small group of people who interact regularly. A small
team with a leader is an example of a primary group. A family can also be called a
primary group. Within the primary group, values, beliefs and culture are all very
important.
Secondary Group
When a large number of people get together (who do not normally get together) it is
called a secondary group. Secondary group members do not get the opportunity to get
to know each other as well as primary group members because the interaction with
each other is less than in a primary group. When a secondary group is formed,
individuals usually have their own agenda and goals. The relationship they form is not
long term and social interaction within a secondary group is likely to be low.
Group cohesiveness can be defined as a bond that pulls people toward
membership in a particular group and resists separation from that group. In
addition, group cohesion generally has three characteristics. They include the
following:
Interpersonal Attraction
This means group members have a preference or want to interact with each
other. Group members enjoy this interaction and seek it out.
Group Pride
This involves group members viewing their membership to a specific group with
fondness. They feel proud of their group membership, and staying in the group
feels valuable.
Commitment to the Work of the Group
Group members value the work of the group and believe in its goals. They are
willing to work together to complete tasks which are aligned with these group
goals, even through adversity.

Factors
The ability of a group to be more or less cohesive is dependent on several
factors. Here are some important factors that have been found to impact group
cohesiveness.
Similarity
When the group members are similar, its easier for the group to become
cohesive. The similarity can be due to several factors, such as having similar
values, beliefs, life circumstances, or pressing life issues.
Example: A group of patients with depression might be more cohesive than a
group of ten members each with different mental health diagnoses.
Group Openness to New Members
When a group is open and welcoming to new members, group members more
easily develop cohesion. Often over time, group membership will change due to
various life circumstances or changing individual needs.
Example: Joshs bowling team lost Frank when he moved out of town. James
joined the team in Franks place. The rest of the bowling team welcomed James
with open arms. James felt accepted and began to really look forward to bowling
nights.
Trust
When group members feel they can trust each other, group cohesiveness is more
easily developed.
Example: A veteran shares with his PTSD support group things he did in Iraq for
which he feels guilty. The other veterans in the group provide reassurance and
dont judge him. The group is closer as a result.
Stage of the Group
When a new group forms, there tends to be an initial burst in group cohesiveness
because the first goal of any group is often to form.

Example: Jaime joined a new weight loss group to help her keep her weight loss
on track. When Jaime and the other new group members went to the first
meeting, they started sharing their weight loss struggles. Jaime instantly felt close
to the other members and was happy she joined the group.
Past Group Experiences
When members of a new group have had previous positive group experiences,
they are more easily able to establish group cohesion. When members have had
past group experiences that were unfavorable, they will resist developing
cohesion.

Steps of Decision Making Process

Following are the important steps of the decision making process. Each step
may be supported by different tools and techniques.

Step 1: Identification of the purpose of the decision

In this step, the problem is thoroughly analysed. There are a couple of
questions one should ask when it comes to identifying the purpose of the
decision.

What exactly is the problem?

Why the problem should be solved?

Who are the affected parties of the problem?

Does the problem have a deadline or a specific time-line?

Step 2: Information gathering

A problem of an organization will have many stakeholders. In addition,
there can be dozens of factors involved and affected by the problem.
In the process of solving the problem, you will have to gather as much as
information related to the factors and stakeholders involved in the problem.
For the process of information gathering, tools such as Check Sheets can
be effectively used.

Step 3: Principles for judging the alternatives

In this step, the baseline criteria for judging the alternatives should be set
up. When it comes to defining the criteria, organizational goals as well as
the corporate culture should be taken into consideration.
As an example, profit is one of the main concerns in every decision making
process. Companies usually do not make decisions that reduce profits,
unless it is an exceptional case. Likewise, baseline principles should be
identified related to the problem in hand.

Step 4: Brainstorm and analyse the different choices

For this step, brainstorming to list down all the ideas is the best option.
Before the idea generation step, it is vital to understand the causes of the
problem and prioritization of causes.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart
tool. Cause-and-Effect diagram helps you to identify all possible causes of
the problem and Pareto chart helps you to prioritize and identify the causes
with highest effect.

Then, you can move on generating all possible solutions (alternatives) for
the problem in hand.

Step 5: Evaluation of alternatives

Use your judgement principles and decision-making criteria to evaluate
each alternative. In this step, experience and effectiveness of the
judgement principles come into play. You need to compare each alternative
for their positives and negatives.

Step 6: Select the best alternative

Once you go through from Step 1 to Step 5, this step is easy. In addition,
the selection of the best alternative is an informed decision since you have
already followed a methodology to derive and select the best alternative.

Step 7: Execute the decision

Convert your decision into a plan or a sequence of activities. Execute your
plan by yourself or with the help of subordinates.

Step 8: Evaluate the results

Evaluate the outcome of your decision. See whether there is anything you
should learn and then correct in future decision making. This is one of the
best practices that will improve your decision-making skills.

Conclusion
When it comes to making decisions, one should always weigh the positive
and negative business consequences and should favour the positive
outcomes.
This avoids the possible losses to the organization and keeps the company
running with a sustained growth. Sometimes, avoiding decision making

seems easier; especially, when you get into a lot of confrontation after
making the tough decision.

DELPHI TECHNIQUE
The aim is to clarify and expand on issues, identify
areas of agreement or disagreement and begin to
find consensus.

Step 1: Choose a Facilitator

The first step is to choose your facilitator. You may
wish to take on this role yourself, or find
a neutral person within your 27rganization. It is
useful to have someone that is familiar with
research and data collection.

Step 2: Identify Your Experts

The Delphi technique relies on a panel of experts.
This panel may be your project team, including the
customer, or other experts from within your
27rganization or industry. An expert is, any
individual with relevant knowledge and experience
of a particular topic.

Step 3: Define the Problem

What is the problem or issue you are seeking to
understand? The experts need to know what
problem they are commenting on, so ensure you
provide a precise and comprehensive definition.

Step 4: Round One Questions

Ask general questions to gain a broad
understanding of the experts view on future
events. The questions may go out in the form of a
questionnaire or survey. Collate and summarise the
responses, removing any irrelevant material and
looking for common viewpoints.

Step 5: Round Two Questions

Based on the answers to the first questions, the
next questions should delve deeper into the topic
to clarify specific issues. These questions may also
go out in the form of a questionnaire or survey.
Again, collate and summarise the results, removing
any irrelevant material and look for the common
ground. Remember, we are seeking to build
consensus.

Step 6: Round Three Questions

The final questionnaire aims to focus on supporting
decision making. Hone in on the areas of
agreement. What is it the experts are all agreed
upon?
You may wish to have more than three rounds of
questioning to reach a closer consensus.

Step 7: Act on Your Findings

After this round of questions, your experts will
have, we hope, reached a consensus and you will
have a view of future events. Analyse the findings
and put plans in place to deal with future risks and
opportunities to your project.

Conclusion
Use the Delphi Technique for creating Work
Breakdown Structures, identifying risks and
opportunities, compiling lessons learned and
anytime you would usually conduct a brainstorming
session.
Predicting the future is not an exact science, but
the Delphi Technique can help you understand the

likelihood of future events and what impact they

may have on your project.
Unit 3

Difference between Power and Authority

Power can be defined as the ability of a person or a group to influence the
beliefs and actions of other people, and to influence or control actions or events.
Power is the possession or the ability or the right to control the actions and
performances of others either by authority or by other means.
Authority is the right given to a person or a post to achieve particular objectives.
It is the right to get things done by others, to take decisions and give orders and
get obedience from them. It comes from the duties and responsibilities awarded
to a position holder in any official structure.

Power vs Authority
Although power and authority stem from the same concept, they are both very
different as they contain deeper meanings. When we talk about leadership and
influence, it becomes necessary to differentiate power and authority in order to
comprehend their true meanings and application.
The main difference between power and authority is the degree of control and
influence they offer to the possessor. While authority is the sanctioned right given
to a person to get things done in an official capacity, power is the ownership of
authority and control to influence the opinions, movements and behaviors of
others.
Power has a wider scope and enables one to do what they want instead of
looking out to see if they are doing it the right way. It might not always be given,
but it comes to people who are experts in their field or have a significant amount

of money and do not look up to anyone. Authority, on the other hand, is the right
given to a person to give orders to subordinates and get things done by them. An
official cannot perform his duties without adequate authority.
While a person will get authority only with some kind of position, either official or
non-official, power is something that comes with personality, charisma or
personal attributes too. A company president can order a change in design or a
police officer might arrest an offender because they have the authority to do so,
but a person can exert his power of knowledge to influence the thoughts and
ideas of others and that person could just as easily be a middle school teacher or
a debater too.
A manager will get his authority from the higher authorities who will outline what
he must do and how he does it. Authority comes from hierarchy and designation
while power is all-encompassing and broad and does not depend on anyone.
Either a person has power or either he has no power. It comes from a higher
level than authority and has an extensive approach.
Power is a further-reaching concept than authority and offers much more
influence, control and domination as it can be both personal as well as official,
while authority is restricted to formal use only in official organizations and offices.
Authority can be taken away as it is official and not personal and once a person
is stripped of his title or designation, his or her authority comes to an end.
However, power cannot be taken away easily because it is personal and a
person remains powerful if he has money, for example, even if he has no
designation to support him.

Comparison Chart
Power

Authority

Power comes from knowledge and expertise.

Authority comes from position and office.

Power is the personal ability of a person to

Authority is the formal right to take decisions or

control or influence others.

making commands.

Power does not come with rank or designation;

a person is either powerful or not.

Authority comes with rank and designation.

The scope of power cannot be written down or The scope of authority can be written down and
explained because it is too broad a concept.

Power is not dependant on levels as it is

broader in context and has a more extensive
approach.

explained in explicit terms.

Authority is dependent on levels or positions and

can be used in a limited manner as awarded.

Leadership Qualities Everyone Can Use

Here are a few of the qualities and traits of great leaders that you can
learn and practice:
o

Self-assessment: Effective leaders periodically take stock of their

personal strengths and shortcomings. They ask: What do I like to do? What am I
really good at? What are my areas of weakness, and what do I dislike doing?
Knowing your areas of weakness does not make you weak; on the contrary, it
allows you to delegate to others who have those abilities, in order to achieve the
common goal. Rather than clinging to the false belief that they can do it all, great
leaders hire people who complement, rather than supplement, their skills.
Working on your areas of weaknesses will improve your leadership ability and
recognizing them makes you more human.
Sharp perception: Do you know how people really perceive you?
Effective leaders do. They have an easy level of honest communication with their
teams and their peers, and a thorough understanding of how they are perceived.
Testing others perception of you can be as simple as observing their behavior.
Are your co-workers and team members relaxed around you? Does all
conversation stop when you enter the room?

If you really want to know what people think, just ask them. You may receive
feedback that youre not listening or showing appreciation as well as you could
be. If youve established an environment of honest and open communication, you
should be able to ask about your good qualities and the areas you need to
improve on. Your staff will appreciate your effort.
o

Responsive to the groups needs: Being perceptive can also help a

leader be more effective in knowing the needs of the team. Some teams value
trust over creativity; others prefer a clear communicator to a great organizer.
Building a strong team is easier when you know the values and goals of each
individual, as well as what they need from you as their leader.

Knowing the organization: Effective leaders know the organizations

overall purpose and goals, and the agreed-upon strategies to achieve these
goals; they also know how their team fits into the big picture, and the part they
play in helping the organization grow and thrive. Full knowledge of your
organization inside and out is vital to becoming an effective leader.

Learning Negotiation, Team Building, Motivation and Goal Setting

Skills
Todays business professionals know that in order to achieve success,
they must commit to lifelong learning and skill building.
Communication Good communication skills are required at every level of
business, but leaders must possess outstanding communication skills. Luckily,
this is a skill that can be learned.
o
o

Motivating teams Inspiring others is the mark of an effective leader.

Motivation is best done by example and guidance, not by issuing commands.
Team building Putting together strong teams that work well is another
trait of great leaders. The opposite is also true: if a team is weak and
dysfunctional, it is generally a failure in leadership.

Risk taking You can learn how to assess risk and run scenarios that will
help you make better decisions. Great leaders take the right risks at the right
time.

Vision and goal setting A team depends on its leader to tell them where
they are going, why they are going, and how theyre going to get there. People

are more motivated when a leader articulates his or her vision for a project or for
the organization, along with the steps or goals needed to achieve it.

UNDERSTANDING THE DIFFERENCES:

LEADERSHIP VS. MANAGEMENT
Is a good manager automatically a good leader? What is the
difference between leadership and management?
The main difference between leaders and managers is that leaders
have people follow them while managers have people who work for
them.
A successful business owner needs to be both a strong leader and
manager to get their team on board to follow them towards their vision
of success. Leadership is about getting people to understand and
believe in your vision and to work with you to achieve your goals while
managing is more about administering and making sure the day-to-day
things are happening as they should.
WHILE THERE ARE MANY TRAITS THAT MAKE UP A STRONG LEADER, SOME OF THE KEY
CHARACTERISTICS ARE:

Honesty & Integrity: are crucial to get your people to believe you
and buy in to the journey you are taking them on
Vision: know where you are, where you want to go and enroll your
team in charting a path for the future
Inspiration: inspire your team to be all they can by making sure
they understand their role in the bigger picture
Ability to Challenge: do not be afraid to challenge the status quo,
do things differently and have the courage to think outside the box
Communication Skills: keep your team informed of the journey,
where you are, where you are heading and share any roadblocks
you may encounter along the way

SOME OF THE COMMON TRAITS SHARED BY STRONG MANAGERS ARE:

Being Able to Execute a Vision: take a strategic vision and break

it down into a roadmap to be followed by the team
Ability to Direct: day-to-day work efforts, review resources
needed and anticipate needs along the way
Process Management: establish work rules, processes, standards
and operating procedures

People Focused: look after your people, their needs, listen to

them and involve them
In order for you to engage your staff in providing the best service to
your guests, clients or partners, you must enroll them in your vision
and align their perceptions and behaviours. You need to get them
excited about where you are taking them while making sure they know
whats in it for them. With smaller organizations, the challenge lies in
making sure you are both leading your team as well as managing your
day to day operation. Those who are able to do both, will create a
competitive advantage.

Entrepreneurial leadership is organizing a group of people to achieve a

common goal using proactive entrepreneurial behavior by optimising
risk, innovating to take advantage of opportunities, taking personal
responsibility and managing change within a dynamic environment for the benefit
of an organisation.[citation needed]
Entrepreneurial leadership is effectively using the skills associated with
successful individual entrepreneurs and applying those within the environment of
a larger organisation. This especially means within an organisation where those
skills have been lost and replaced with a "corporate" mindset that focuses
on process,systems and risk minimisation rather than on entrepreneurial
behaviour.
Styles of leadership[edit]
Leadership style refers to a leader's behavior. It is the result of the philosophy,
personality, and experience of the leader. Rhetoric specialists have also
developed models for understanding leadership (Robert Hariman, Political Style,
[17]
Philippe-Joseph Salazar, L'Hyperpolitique. Technologies politiques De La
Domination[18]).

Participative or democratic style[edit]

The democratic leadership style favors decision-making by the group. Such a
leader gives instructions after consulting the group. They can win the cooperation
of their group and can motivate them effectively and positively. The decisions of
the democratic leader are not unilateral as with the autocrat because they arise
from consultation with the group members and participation by them.[19]

Autocratic or authoritarian style[edit]

Under the autocratic leadership style, all decision-making powers are centralized
in the leader, as with dictators.
Leaders do not entertain any suggestions or initiatives from subordinates. The
autocratic management has been successful as it provides strong motivation to

the manager. It permits quick decision-making, as only one person decides for
the whole group and keeps each decision to him/herself until he/she feels it
needs to be shared with the rest of the group.[19]

Unit - 4