Organisational Behaviour

Definition

Organisational Behaviour is a field of study that

investigates the impact that individuals, groups,
and structure have on behaviour within
organisation for the purpose of applying such
knowledge toward improving an organisation’s
effectiveness.
Organisational Behaviour is a field of study that investigates the impact that individuals, groups,
and structure have on behaviour within organisation for the purpose of applying such knowledge
toward improving an organisation’s effectiveness.

OB is a field of study
Means a distinct area of expertise with a common
body of knowledge

What does it study?

It studies three determinants of behaviour in organisation
Individuals, Groups, Structure
Applying such knowledge
OB applies knowledge about individuals, groups and the
effect of structure on behaviour in order to make
organisation work more effectively.
Therefore –
OB is concerned with the study of what people do in an
organisation and how the behaviour affects the performance of
the organisation.

It is concerned with employment related situations, and

emphasises behaviour as related to concerns such as jobs, work,
absenteeism, employment turnover (attrition), productivity,
performance and management.
 CONTRIBUTING DISCIPLINES TO THE FIELD OF OB

Psychology – The science that seeks to measure, explain, and

sometimes change the behaviour of human and other animals.
Sociology – The study of people in relation to their fellow human
beings.
Social psychology – An area with psychology that blends
concepts from psychology and sociology and that focuses on the
influence of people on one another.
Anthropology – The study of societies to learn about human
beings and their activities.

Political science – the study of the behaviour of individual and

groups within a political environment.
 CONTRIBUTING DISCIPLINES TO THE FIELD OF OB
Behavioural Science Contribution Unit of Output
Learning Job satisfaction analysis
Motivation Decision making
Personality Performance appraisal
Emotions Attitude
Perception Selection
Training Work design
Psychology Leadership Stress
Individual

Group dynamics Power

Work teams Conflict
Communication Intergroup behaviour

Sociology Study of
Formal organisational theory Organisational change Group
OB
Organisational technology Organisational culture

Behavioural change Group processes

Social psychology Attitude change Group decision
Communication making

Comparative values & attitudes

Cross culture analysis Organisation
Anthropology system
Organisational culture &environment

Conflict
Political science Intraorganisational politics
Power
 CHALLENGES AND OPPORTUNITIES FOR OB

1. Responding to Globalisation
2. Managing Workforce Diversity
3. Improving Quality and Productivity
4. Responding to Labour Shortage
5. Improving Customer Service
6. Improving People Skill
7. Empowering People
8. Coping with Temporariness
9. Stimulating Innovation and Change
10.Helping Employees Balance Work/Life Conflicts
11.Improving Ethical Behaviour
What is Organisational
Behaviour ?
Every individual has 24 hours a day. The
worldwide research has shown that an average
person spends about 6 to 8 hours a day in sleep
more than 8 hours are spent in working and
traveling. One gets left with only 8 hours for
personal and private life with family and friends.
It means we spend 33% of life in sleeping, 50%
in working and are left with only 17% for personal
pleasures.
Therefore subject of Organisational
Behaviour deals with that part of life
which we spend in working which is
also called “On the job” life.

Our off the job life is interrelated

and interdependent on on the job life
and vice versa.
 Models of organisational behaviour

2. Autocratic Model
3. The custodial model
4. The supportive model
5. The collegial model
6. The SOBC (Stimulus, organism, behaviour,
consequences) model
 The Autocratic Model

The model is based on the assumption that authority is

central to results. People must accept the authority of their
superiors and obey their instructions. Obedience is the main
employee orientation. Obedience on the part of
subordinates can be for respect for the knowledge and the
authority of the superiors or fear of punishment. Job
security, basic needs of a person, survival and growth
makes the subordinates to obey.
 The Custodial Model

This assumes that the organisational behavior depends upon

the economic resources. Employee work for money and
desires job security. While money is the main managerial
orientation, job security is the main employee orientation.
For the basic need of job security employee offer a passive
co-operation to the superiors. The management knows
better welfare of the people & takes the role of custodian
and guardian of the people and their wealth.
 The Supportive Model

The model assumes that management is leadership. The

management plays the role of a supportive leadership. The
employees are performance oriented & need support for
their initiative and drive for performance. This encourages
participation by the subordinates. The basic need of the
employee is the self esteem and recognition. The
employees need support, status and recognition for their
performance.
 The Collegial Model

This model is based on the assumption that generally the

employees are self disciplined and they exhibit a
responsible behaviour. The main need of the employee is
self actualisaton. If this need is satisfied, they show
enthusiastic performance. Therefore they must be
encouraged for the participation in decision making. Team
building on the part of management is must as the team
work is main managerial orientation.
 The SOBC Model
This model is based on the assumption that every behaviour is caused.
What we see are the consequences of the behaviour shown by organism
due to stimulus. This model can be diagrammatically shown as follows:
Stimulus > Organism > Behaviour > Consequences
(cause) (individual) (Actions) (Results)

The Stimulus is the cause that may be overt or covert, physical, social,
psychological, technological, environmental etc.
The Organism can be individual or a group. They have cognitive
mediators with physiological existence.
The Consequences are expressed as the results that may be overt or
covert. Positive or negative and can have effects on environmental
dynamics and applications.
SOBC model is based on the very practical philosophy of human
behaviour that: every behaviour is caused & follows the Cause-Effect
relationship.
PERCEPTION
Perception is a process by which
individuals organise and interpret their
sensory impressions in order to give
meaning to their environment.
- Stephen Robins
 Factors Factors in the Perceiver
Attitudes
Influencing Motives
Perception Interests
Experience
Expectations
Factors in the situation
Time
PERCEPTION
Work Setting
Social Setting
Factors in the target
Novelty
Motion
Sounds
Size
Background
Proximity
Similarity
What do you see?

What do you see?

What do you see?
There's a face... and the word
liar
Is the left center circle bigger?
No, they're both the same size
It's a spiral, right?
No, these are a bunch of
independent circles
What do you see ?
A couple or a skull?
Count the black dots!
0 (ZERO)
What do you see?
Do you see the three faces?
Process of Perception

1. Confrontation of stimulus

The Individual comes face to face with another

Individual/group/object/situation/problem
Process of Perception

2. Registration

The individual registers the stimulus and it’s gravity

Process of Perception

3. Interpretation

The individual tries to understand the real meaning of

the situation.
Process of Perception

4. Feedback

The individual evaluates the strength and weakness

and gives a quick feedback to the sensory motor.
Process of Perception

5. Reaction

The individual gives the response in terms of reaction

that can be positive, negative or neutral, depending
upon the mutual interaction between the stimulus and
the individual.
 APPLICATION OF PERCEPTION

ATTRIBUTION THEORY
The theory is proposed to develop explanations of the
ways in which we judge people differently, depending
on what meaning we attribute to a given behaviour. The
theory suggests that when an individual observes another
individual’s behaviour and they observer attempts to
determine whether the behaviour is caused internally or
externally.
The determination, however depends upon three factors
1. Distinctiveness
2. Consensus
3. Consistency
PERSONALITY
Definitions
‘Personality is the dynamic organisation within an
individual of those psychological systems that determine
his unique adjustments to his environment.’
- Gordon Allport

Personality is the sum total ways in which an individual

reacts to and interacts with others.
- Stephen Robins
 PERSONALITY DETERMINANTS

Individual Personality is the result of heredity

and environment and the third factor is
recognised to be situation.
 HEREDITY
Heredity refers to those factors that were determined at
conception. Physical stature, facial attractiveness,
temperament, muscle composition and reflexes, energy
level, and biological rhythms are characteristics that are
generally considered to be either completely or substantially
who the parents are; that is, by their biological,
physiological, and inherent makeup.

The heredity approach argues that the ultimate explanation

of an individual’s personality is the molecular structure of
the genes.
 ENVIRONMENT

Environment factor like culture in which one is

raised, early conditioning; norms among
family, friends, social group and other
influences that one experiences, exert pressure
on personality of an individual.
 SITUTATION

Situation influences the effect of heredity and

environment on personality. A individual’s
personality, although generally stable and
consistent, does change in different situations.
The different demands of different situations
call for different aspects one’s personality.
 LOCUS OF CONTROL
Locus of control is the degree to which
people believe they are masters of their own
fate
Some people believe that they are masters of their own fate.
Other people see themselves as pawns of fate, believing that
what happens to them in their lives is due to luck or chance.
 INTERNALS

Individual who believes that they control

what happens to them.

EXTERNALS
Individuals who believe that what happens
to them is controlled by outside forces such
as luck or chance.
TYPE A AND TYPE B PERSONALITY
 TYPE A PERSONALITY

A person with a Type A personality is aggressively

involved in chronic, incessant struggle to achieve
more and more in less and less time, and if required
to do so, against the opposing efforts of other
things or other persons.
Type A’s

1. Are always moving, walking, and eating rapidly

2. Feels impatient with the rate at which most event take place
3. Strive to think or to do two or more things at once
4. Cannot cope with leisure time
5. Are obsessed with numbers, measuring their success
 TYPE B PERSONALITY

Type B is exactly opposite to type A are rarely

harried by the desire to obtain a wildly increasing
number of things or participate in an endless
growing series of events in an ever decreasing
amount of time.
 Type B’s

1. Never suffer from a sense of time urgency with the

accompanying impatience
2. Feel no need to display or discuss their achievements
3. Play for fun and relaxation and not exhibit superiority
4. Can relax without guilt
 PERSONALITY TRAITS
Personality are the enduring characteristics that describe an
individual behavior.
A study identified 17,953 individual traits.
Another researcher isolated 172 traits and reduced set of
traits that would identify underlying patterns and thereby
16 personality factors (called the source or primary traits)
were identified
These 16 traits are to be found generally steady and
constant source of behavior.
Personality traits

Sixteen Primary Traits

1 Reserved Vs Outgoing
2 Less intelligent Vs More intelligent
3 Affected by feelings Vs Emotionally stable
4 Submissive Vs Dominant
5 Serious Vs Happy-go-lucky
6 Expedient Vs Conscientious
7 Timid Vs Venturesome
8 Tough minded Vs Sensitive
9 Trusting Vs Suspicious
10 Practical Vs Imaginative
11 Forthright Vs Shrewd
12 Self-assured Vs Apprehensive
13 Conservative Vs Experimenting
14 Group dependent Vs Self-sufficient
15 Uncontrolled Vs Controlled
16 Relaxed Vs Tensed
ATTITUDES
 ATTITUDES

Attitudes – Evaluative statements or judgments concerning

objects, people or events.

Attitude may be favourable or unfavourable – concerning

objects or events. Attitudes are not the same as values, but the
two are interrelated.
 COMPONENTS OF AN ATTITUDE

Attitude has three components and they are –

3. Cognitive Component

5. Affective Component

7. Behavioural Component
COMPONENTS OF AN ATTITUDE

Cognitive component of an attitude

It is the opinion or belief segment of an attitude

Affective component of an attitude

It is the emotional or feeling segment of an attitude

Behavioural component of an attitude

An intention to behave in a certain way toward someone or something

 TYPES OF ATTITUDES

There may be thousands of attitudes in a person, OB

focuses attention on a very limited number of work
related attitudes. These work related attitudes are
positive or negative and shows how employee feel
about their job. Most of the research in OB has been
concerned with three attitudes namely:

1. Job Satisfaction
2. Job Involvement
3. Organisational Commitment
 JOB SATISFACTION

The term job satisfaction refers to an

individual’s general attitude toward his or her
job. An individual with high level of job
satisfaction holds positive attitudes about the
job, while a dissatisfied individual may hold
negative attitudes about the job.

Low job satisfaction can result in high attrition

rate, absenteeism, and poor mental health.
 JOB INVOLVEMENT
Job involvement measures the degree to
which a person identifies psychologically
with his or her job and considers his or
her perceived performance level
important to self worth.

High level of job involvement reduces

attrition and absenteeism.
 ORGANISATIONAL COMMITTMENT

Organisation commitment is defined as degree to

which an employee identifies with a particular
organisation and its objectives and wishes to maintain
membership in the organisation.

An employee may be dissatisfied with his or her

present job and consider it a temporary condition, yet
not be dissatisfied with the organisation as a whole.
But when dissatisfaction spreads to the organisation
itself, individuals are more likely to resign.
 EFFECTS OF JOB SATISFACTION

The job satisfaction has an effect on the

performance of an individual however in
the organisation it tends to center on its
effect on productivity, absenteeism and
turnover.
Satisfaction and productivity
“Happy workers are productive workers” is a myth, the concept
“productive workers are likely to be happy workers” may hold
good.

Satisfaction and absenteeism

There is a negative relationship between satisfaction and
absenteeism. Absenteeism increases with decrease in job
satisfaction

Satisfaction and turnover

Satisfaction is also negatively related to turnover , factors like
alternative job opportunities, length of tenure, labour market
condition will also effect the turnover.
 EXPRESSION OF DISSATISFACTION

Employee dissatisfaction can be expressed in various ways, however the

following four responses shall indicate different responses to employee
dissatisfaction.
Exit : Dissatisfaction expressed through behaviour directed toward leaving
the organisation.
Voice : Dissatisfaction expressed through active and constructive attempts
to improve conditions, may include union activity.
Loyalty : Passively but optimistically waiting for the condition to improve.
It is trusting organisation and management ‘to do the right thing’.
Neglect : Dissatisfaction expressed through allowing condition to worsen,
it includes chronic absenteeism, reduced effort and increased error rate.
 JOB SATISFACTION AND CUSTOMER SATISFACTION

Satisfied employees increase customer satisfaction and loyalty.

Satisfied employee are more likely friendly and responsive –
which customers appreciate. Satisfied employees are less prone
to turnover, customers are more likely to encounter familiar
faces and receive experienced service.
 VALUES
Values – Basic convictions that a specific mode of conduct or end
state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end state of existence.

Value System – A hierarchy based on ranking of an individual’s

values in terms of their intensity.
 TYPES OF VALUES
Value typologies can be developed in two approaches
as per survey conducted by Milton Rokeach, the
survey is popularly known as Rokeach Value Survey
(RVS). RVS consists of two sets of values –

Terminal values and

Instrumental values
 TYPES OF VALUES

Terminal values – Desirable end-states of existence; the

goals that a person would like to achieve during his or
her lifetime.

Instrumental values – Preferable modes of behaviour or

means of achieving one’s terminal values.
 Terminal and Instrumental Values in Rokeach Value Survey
Terminal Values Instrumental Values
A comfortable life (a prosperous life) Ambitious (hardworking, aspiring)
An exciting life ( a stimulating, active life) Broad minded (open minded)
A sense of accomplishment ( lasting contribution) Capable (competent)
A world of peace ( free of war and conflict) Cheerful (lighthearted, joyful)
A world of beauty (beauty of nature and the arts) Clean (neat, tidy)
Equality (brotherhood, equal opportunity for all) Courageous (standing up for your beliefs)
Family security (taking care of loved ones) Forgiving (willing to pardon others)
Freedom (independence, free choice) Helpful (working for the welfare of others)
Happiness (contentedness) Honest (sincere, truthful)
Inner harmony (freedom from inner conflict) Imaginative (daring, creative)
Mature love (sexual and spiritual intimacy) Independent (self-reliant, self-sufficient)
National security (protection from attack) Intellectual (intelligent, reflective)
Pleasure (an enjoyable, leisurely life) Logical (consistent, rational)
Salvation (saved, eternal life) Loving (affectionate, tender)
Self respect (self-esteem) Obedient (dutiful, respectful)
Social recognition (respect, admiration) Polite (courteous, well-mannered)
True friendship (close companionship) Responsible (dependable, reliable)
Wisdom (a mature understanding of life) Self-controlled (restrained, self-discipline)
MOTIVATION
IT IS THE NEED OR DRIVE
WITHIN AN INDIVIDUAL THAT
DRIVES HIM OR HER TOWARD
GOAL ORIENTED ACTION. THE
EXTENT OF DRIVE DEPENDS
ON THE PRESCRIBED LEVEL
OF SATISFACTION THAT CAN
BE ACHIEVED BY THE GOAL
-Definition-
“MOTIVATION IS A
PREDISPOSITION TO ACT
IN A SPECIFIED GOAL
DIRECTED MANNER”
-Hellriegel and Slocum
“MOTIVATION REFERS TO
GOAL DIRECTED
BEHAVIOUR”
-Chung
“A process of stimulating
the self or subordinates
to get into the desired
course of action”
-Michael Julius
 DIFFERENCE BETWEEN
MOTIVATION AND SATISFACTION
MOTIVATION REFERS TO THE DRIVE AND EFFORT TO
SATISFY A WANT OR GOAL.

SATISFACTION REFERS TO THE CONTENTMENT

EXPERIENCED WHEN WANT IS SATISFIED. IN OTHER
WORDS, MOTIVATION IMPLIES A DRIVE TOWARD AN
OUTCOME, AND SATISFACTION IS THE OUTCOME
ALREADY EXPERIENCED.
Employees' performance is, of course, partially
determined by the opportunities given them to
demonstrate their abilities. If employees are never given
opportunities to utilize all of their skills, then the
employer may never have the benefit of their total
performance. Work performance is also contingent upon
employee abilities. If employees lack the learned skills
or innate talents to do a particular job, then performance
will be less than optimal. A third dimension of
performance is motivation.
 Mechanism of Motivation

Need Drive Barrier Goal

Deprivation Direction Overt/Covert Achievement

Frustration
 NEEDS
An internal state of
disequilibrium or deficiency
which has the capacity to
energise or trigger a
behavioural response
 Motivation and Frustration
A person get frustrated because of unfulfilled need. Whenever
a person is frustrated, the defence mechanism gets triggered
into action. Frustration can be manifested into one or more of
following behaviour:
Aggression: A reaction to a situation where one’s motive is
blocked, causing oneself to turn against the barrier in terms of
verbal or physical injury.
Withdrawal: Leaving the field physically and psychologically.
Fixation: An unreasonable stubbornness, repeated behaviour,
non adjusting.
Compromise: Adjusting with the situation leading to ‘give and
take’ attitude.
MOTIVATION THEORIES
 MASLOW’S HIERARCHY OF NEEDS

Self-
Achievement Actuali- Challenging job
zation
Needs

Status Esteem Needs Job title

Friendship Belongingness Friends in Work

Needs Group

Stability Security Needs Pension Plan

Physiological Needs
Sustenance Base Salary
 Douglas Mcgregor’s Theory
Douglas Mcgregor, a professor of industrial
Administration at MIT (USA) theorized that
every person has certain basic assumptions about
other people’s attitude towards work and
organisation the assumption is labeled as Theory
X and Theory Y.
Theory X Assumptions
It is the traditional assumptions about the nature of people
and states that-
1. Average human being have an inherent dislike of work
and will avoid it if they can.
2. Because of this human characteristic of disliking work,
most people must be coerced, controlled, directed and
threatened with punishment to get them to put forth
adequate effort toward the achievement of organisational
objectives.
3. Average human beings prefer to be directed, wish to
avoid responsibility, have relatively little ambition, and
want security above all.
Theory Y Assumptions
The assumption under this are _

1. The expenditure of physical effort and mental effort in

work is as natural as play or rest.
2. External control and threat of punishment are not the only
means for producing effort toward organisational
objectives. People will exercise self direction and self
control in the service of objectives to which they are
committed.
3. The degree of commitment to objectives is in proportion to
the size of the rewards associated with their achievement.
4. Average human beings learn, under proper conditions, not
only to accept responsibility but also to seek it.
 Herzberg’s 2-factor Theory
Fredrick Herzberg (1959) extended the work of Maslow
and developed a specific content theory of work motivation.
He conducted a widely reported study of about 200
accountants and engineers from eleven industries in the
Pittsburgh area. He used the critical incident method of
obtaining data for analysis. He asked them two questions:

a) When did you feel particularly good about your job and
what turned you on?

b) When did you feel exceptionally bad about your job and
what turned you off?
 CONTARSTING VIEW OF
SATISFACTION AND DISSATISFACTION

TRADITIONAL VIEW

Satisfaction Dissatisfaction

HERZBERG’s VIEW

Satisfaction Motivators No Satisfaction

No Dissatisfaction Hygiene Factor Dissatisfaction

Herzberg’s theory was based on a two-factor
hypothesis that is factors leading to job satisfaction
And factors leading to no job dissatisfaction. They
were classified in two categories:

6) Motivational factors
7) Hygiene or maintenance factors
Motivational factors
• Recognition
• Advancement
• Responsibility
• Possibility of growth
• Achievement
• Work itself
Motivational factors are directly related to the job
itself. Present of such factor create a highly
motivating situation, but their absence does not cause
job dissatisfaction. These factors are ‘content
oriented’.
Hygiene or Maintenance factors
• Company policy and administration
• Technical supervision
• Interpersonal relations with subordinates
• Salary
• Job security
• Personal life
• Working conditions
• Status
• Interpersonal relations with supervisors
• Interpersonal relations with peers/colleagues
Maintenance factors are ‘context oriented’ their
presence does not significantly motivate the
person. The presence of such factors prevents
dissatisfaction and maintains a certain level of
motivation but any reduction in the availabilities
of these factors is likely to affect motivation and
bring down the level of performance. According to
Herzberg, Hygiene factors can dissatisfy by their
absence but they cannot satisfy by their presence.
 Motivational vs. Hygiene Factors
Motivational Factors Hygiene factors

When present lead to When present, help in

satisfaction and motivation. preventing dissatisfaction but
do not increase satisfaction or
motivation.
When absent prevents both When absent increase
satisfaction and motivation. dissatisfaction with the job.

Status goes down with Hygiene factors;

Recognition goes up with Motivators
 McClelland’s theory of Needs
Developed by David McClelland and his
associates. The theory focuses on three needs:
1. Achievement
2. Power
3. Affiliation
Need for Achievement (nAch): The drive to excel, to
achieve in relation to a set of standards.

Need for Power (nPow): The need to make others

behave in a way that they would not have behaved
otherwise.

Need for Affiliation (nAff): The desire for friendly and

close interpersonal relationship
 E R G Theory
Clayton Alderfer of Yale University has reworked
Maslow’s need hierarchy.
He devised three groups of core needs:
1. Existence
2. Relatedness
3. Growth
Maslow’s Need Hierarchy and Alderfer’s ERG Theory

Self
Maslow Actu-
ERG
alisation Growth
Esteem
Relatedness
Social
Security Existence
Physiological

Maslow’s theory follows a rigid, steplike progression. ERG theory

does not assume that there exists a rigid hierarchy. It demonstrates
that (i) more than one need may be operative at the same time, and
(ii) if the gratification of a higher level need is suppressed, the
desire to satisfy lower level need increases. In ERG all the need
categories could be operating at the same time
 Vroom’s Expectancy Theory
The theory essentially emphasizes that motivation is increased if
the individual perceives that –
3. His effort will result in successful performance
2. Successful performance leads to desired rewards

The theory argues that the strength of a tendency to act in a

certain way depends on the strength of an expectation that the
act will be followed by a given outcome and on the
attractiveness of that outcome to the individual.
Vroom’s Expectancy Theory

1 2 3
Individual Individual Organizational Personal
Effort Performance Rewards Goals

1. Effort-performance relationship: Probability perceived by the

individual that exerting a given amount of effort will lead to
performance.
2. Performance-reward relationship: The degree to which the
individual believes that performing at a particular level will lead to
the attainment of a desired outcome.
3. Rewards-personal goal relationship: The degree to which
organizational reward satisfy an individual’s personal goals or
needs and the attractiveness of those potential rewards for
individual.
Vroom’s Expectancy Theory

Vroom explains that motivation is a product of how much one

wants something and one’s estimate of the probability that a
certain action will lead to it.

This relationship is given in the formula:-

VXE=M
V = Valence is strength of desire for something
E = Expectancy is probability getting it with a certain action
M = Motivation is strength of drive towards an action
Vroom’s Expectancy Theory

Range of Valence and Expectancy

Valance
-1 0 +1

Expectancy

0 +1
 EQUITY THEORY

James Stacy Adams (1965)

proposed the equity theory which
was based on his belief that an
individual’s motivation is
influenced by his perception of how
equitably he is treated at work.
EQUITY THEORY

To express his ideas, Adam used following formula:

Equity exists when-
Person’s Outcomes Other’s outcomes
Person’s Inputs Other’s inputs

Negative Inequity exists when-

Person’s Outcomes Other’s outcomes
< Other’s inputs
Person’s Inputs
Positive Inequity exists when-
Person’s Outcomes Other’s outcomes
> Other’s inputs
Person’s Inputs
EQUITY THEORY

In order to restore equity, individuals can make one of the

six choices:
2. Change their inputs (reduce efforts)
3. Change their outcomes (earning more on a piece rate
basis producing higher quantity)
4. Distort perception of self (changing self perception)
5. Distort perception of others (changing thoughts about
others)
6. Choose a different referent (changing person with whom
comparison is made)
7. Leave the field (quit the job)
 Value of
rewards Perceived
Ability to equitable
do a specific rewards
task
Intrinsic
rewards

Performance
Effort accomplishment Satisfaction

Extrinsic
rewards
Perception
Of task
Perceived required
Effort-reward
probability

PORTER & LAWLER MOTIVATIONAL MODEL

MORALE
 MORALE

Morale indicates happiness of the employees within the

organizational environment.
It is essentially akin to job satisfaction and represents the
integration of an individual with the team and the
organization itself.
Higher the morale higher is the productivity.
Relationship between morale and productivity need not
always be direct. With high morale there could be low
productivity.
High

A B
Morale

Low
Low Productivity High
Line A - High morale low productivity
Line B – High morale high productivity
Line C – High productivity low morale
LEADERSHIP
-Definition-
“The Leader is a part of the group
– distinct from the group
and
can influence the behaviour of the
group”
Leadership is defined as “influence, that
is, the art or process of influencing
people so that they will strive Willingly
and enthusiastically towards the
achievement of group goals. Leading
involves influencing and interacting with
people to attain goals”
 The leadership can be defined as
“the act of making an impact on other
in a desired direction”
 ‘The ability of a person to persuade
others to seek achievement of the group
goals efficiently & effectively '.
(Keith Davis)
Leaders envision the future; they
Inspire organization members and
chart the course of the organization.
Leaders must instill values whether
they are concern for quality, honesty
and calculated risk taking or concern
for employees and customers.
 LEADERSHIP STYLE
Psychologists, sociologists, political scientists
and certainly, management scientists have
become increasingly interested in
leadership. There have been spurts of
research on this topic from time to time.
The more we research leadership, the more
complexity comes to light. Leadership is
broader than management. Managers can
effectively run organizations but only
leaders can build them.
 Essential of Leadership

An organisation requires management to achieve the

organisational goal including the economic performance
A manager must be a good leader since he has to get
work done by his people.
Leadership in the manager plays a very important role.
Essential of Leadership

Some of the major factors of importance of leadership in

business organisations may be summarised as follows :

It helps to build of the group

It helps to create confidence among the members
It motivates the group members
It inculcates discipline
It helps to build work teams
It helps to improve the organisational efficiency
 Theories of Leadership

Various theories of leadership have been developed by

different management experts.

The major theories of leadership are as follows :

Traits Theory
Behavioural Theories
Contingency Theories
Leader-Member Exchange Theory
Managerial Grid
 The Traits Theory
(Ordway Tead & Chester Bernard)

In the early stages of organisational development, it was

believed that 'Leaders are born' This theory is based on the
assumption that leadership depends upon the traits of the
successful leaders. Some of the major features of this approach
are as follows :

It is a traditional theory
It is based on the belief that 'Leaders are born & not made'
It is based on the assumption that physiological &
psychological traits of the leaders determine the success or
failure of the leadership
The Traits Theory

Strengths
It banks upon the Weaknesses
personal qualities of the The traits are not exhaustive or
leader universal
It draws on the influence There is a lack of scope for
of the charisma of the development of the followers
leader There is a possibility of
There is an emotional exploitation of the followers
bond between the leader &
the followers.
There is loyalty by the
followers
Inter-personal
relationships among the
members of the group are
 Some traits of effective leadership

Knowledge of the job/task Creativity

Intelligence. Initiative & drive
Self-respect Problem-solving ability
Self-confidence. High morale & motivation
Courage Positive attitude
Logical thinking Authority & Responsibility
Rational judgment Flexibility in approach
Decision-making Conviction & Commitment
Communication ability Impressive Personality
 THE FOUR LEADERSHIP STYLES
The four leadership style can be stated as –
•Directive
•Supportive
•Consulting
•Delegating
A combination of high and low
regulating and nurturing behaviour
will give four quadrants, each
representing four different leadership
styles.
 THE FOUR
LEADERSHIP
STYLES
 REGULATING BEHAVIOUR
N
U
Style 3 Style 2
R
T CONSULTING SUPPORTIVE
U LOW REGULATING HIGH REGULATING
R
I
HIGH NURTURING HIGH NURTURING
N
G

B
E Style 4 Style1
H DELEGATING DIRECTIVE
A
V
LOW REGULATING HIGH REGULATING
I LOW NURTURING LOW NURTURING
O
U
R
The Managerial Grid
The Managerial Grid is developed by
Robert Blake and Jane Mouton.

The grid has been used throughout the

world as a means of training managers
and of identifying various combination of
leadership styles.
 The Grid Dimensions
The grid has two dimensions-
2. Concern for People
3. Concern for Production
“Concern for” is meant to convey “how and to what
extent” managers are concerned about production
and “how and to what extent” they are concerned
about people, and not such things as “how much”
production they are concerned about getting out of a
group.
Concern for production includes the attitude of a
manager towards wide variety of things, such as –

3. Quality of Policy Decision

4. Procedure and Processes
5. Creativeness of Research
6. Quality of Staff Services
7. Work Efficiency
8. Volume of Output
Concern for people is interpreted in a broad
way and includes-
2. Degree of Personal Commitment toward
Goal Achievement
3. Maintenance of the Self Esteem of
Workers
4. Placement of Responsibility on the basis
of Trust rather than Obedience
5. Provision of Good Working Conditions
6. Maintenance of Satisfying Interpersonal
Relations
 The Managerial Grid

1.9 9.9
Country club Team
management managers
Concern for People

5.5 Middle of
the Road

Task
Impoverished
1.1 Managers 9.1
Concern for production
The 1.1 Style
In this style the managers concern themselves
very little with either people or production and
have minimum involvement in their jobs. They
abandon their jobs and only mark time or act
as messengers communicating information
from superior to subordinates.
This style is referred to as Impoverished
Management
The 9.9 Style

In this style the manager display in their actions

the highest possible dedication both to people
and to production. They mesh the production
needs of the enterprise with the needs of
individuals.
This style is referred to as Team Managers
The 1.9 Style

In this style the manager display in their actions

little or no concern for the production but are
only concerned for people. They promote an
environment in which everyone is relaxed,
friendly, and happy and no one is concerned
about putting forth coordinated effort to
accomplish organisational goals.
This style is referred to as Country Club
Management
The 9.1 Style

In this style the manager display in their actions

the highest possible dedication only to
production and developing an efficient
operation. They have no concern for people, and
they are autocratic in leadership style.
This style is referred to as Autocratic Task
Managers
The 5.5 Style

In this style the manager display in their actions

the adequate performance through balance of
work requirements and maintain satisfactory
morale.
This style is referred to as Middle of the Road
Managers
SITUATIONAL THEORY OF LEADERSHIP
OR
LIFE CYCLE THEORY OF LEADERSHIP
The theory is devised by Paul Heresy and Kenneth
Blanchard who in this approach shows how well
managers can match the appropriate style with
the maturity level of the group being led. It
focuses on followers maturity.
The approach identifies two major styles-
3. Task Style: The leader organises and define roles
for subordinates. The leader explain the task so
that each subordinate does it effectively.
4. Relationship Style: The leader have close
personal relationship with the members of the
group with open communication and
psychological support.
Four style of leadership
2. Telling Style: high task low relationship style and is very
effective when followers are at very low level of maturity
3. Selling Style: high task high relationship style and is very
effective when followers are at low level of maturity.
Directive and supportive behaviour are provided by the
leader
4. Participating Style: low task high relationship style and
is very effective when followers are at high level of
maturity
5. Delegating Style: low task low relationship style and is
very effective when followers are at very high level of
maturity
 BOSS AND LEADER
BOSS: LEADER :
2. Drives his men 1. Leads his men
3. Depends on 2. Depends on goodwill
authority 3. Inspires ‘confidence'
4. Creates 'fear' 4. He knows and shows
5. He knows 5. Takes the "Let us do it"
6. "Do it" is his slogan approach
7. Says "I" 6, Says - "We".
MANAGEMENT
Of
CONFLICT
 CONFLICT

Conflict may occur due to

disagreements, Employees and
management have divergent
interests in allocating resources
which leads to conflict.
Conflicts leads to Non-co-
operation, arguments, hostility,
stress, absenteeism, morcha,
gherao, loss of production, strike,
lay-offs, lockouts, labour turnover,
etc.
 Conflicts Resolution
1. Direct observation
2. Open door policy
3. Personnel counselors
4. Suggestion boxes
5. Exit interviews
6. Ombudsman approach
7. Internal tribunal
Problem Solving for Unionized Employees

Personnel Department should ensure that –

3. Complaints are investigated and decided on the facts

4. Causes of grievances are genuine and due to personality
conflicts
5. Proper grievance procedure is followed involving both
union and the management
The grievance handling procedure may not
provide a satisfactory solution and that any of
the following method of grievance handling
may need to be resorted to -

1. Arbitration
2. Mediation
3. Union Management co-operation
4. Prior consultation
5. Joint study committees
COMMUNICATION
 What are the most common ways
we communicate?

ma ges
is u al I
W o rd V
en
Spok

Bod
y La
Written Word ngu
age
Process of sending & receiving messages
–Spoken
–Written
–Nonverbal
 The Five Components
of Communication
Internal Verbal

1 3 5
4
STIMULAS MESSAGE MEDIUM DESTINATION

External 2
Non-verbal
Filter

Feedback
 The Goals of Communications

To change behavior

To get and give

To get action
Information

To persuade To ensure understanding

 The Communication Process Model
Feedback

Transmission
Thoughts Encoding Decoding Under-
Of Reception
standing
Message
Sender
Sender Receiver

Noise
 Communication

Oral Written

One-on-one conversations Memorandums

Meetings Letters

Phone calls E-mail

Presentations Reports

Videoconferences Miscellaneous
Direction of Communication

CEO
Upward

VP-1 VP-2
Downward
Cross-Channel

MGR-1 MGR-2 MGR-3 MGR-4

Lateral
Interpersonal Communication

ORAL

WRITTEN

NON VERBAL
Oral Communication
Advantages
1. Speeches
1. Speed
2. Group Discussions 2. Feedback (instant)
3. One to one Communication
3. Early Correction
4. Meetings
5. Grapevine Disadvantages

1. Distortion
Written Communication
Advantages
1. Letters
1. Tangible
2. Electronic Mail 2. Verifiable
3. Memos
3. Record & Storage
4. Fax
4. Carefully written
5. House Journals Disadvantages
6. Circulars
1. Time Consuming
7. Notices on bulletin boards 2. Feedback (lacking)
Nonverbal Communication Advantages
1. Conveys extent of liking and
1. Glance disliking
2. Conveys relative perceived
2. Smile
status between sender and
3. Stare receiver
3. Gives meaning to spoken
4. Frown
language
5. Body movements
Disadvantages
6. Intonations/emphasis
1. No Record
7. Facial expressions 2. May be different from
verbal communication
 Formal Small Group Networks

In an organization -
• Formal Network can be complicated.
• Hundreds or thousands of people may be involved.
• Hierarchy levels may be many.

For simplification we have condensed these networks

into three groups of five people each.
 CHAIN

It rigidly follows formal chain of command

It is rigid three level organization
 WHEEL

Central figure to act as conduit for all the group communication.

This type of network is found with strong leader.
 ALL CHANNEL

Permits all group members to actively communicate with each other.

Often used by self-managed teams.
All group members are free to contribute no one person has leadership role.
 Formal Small Group Networks &
Effective Criteria
Network

Criteria Chain Wheel All Channel

Speed Moderate Fast Fast

Accuracy High High Moderate

Emergence of a Moderate High None

leader
Member Moderate Low High
satisfaction
Informal Communication Network

• Transmits information through

nonofficial channels
– Business-related
– Accurate
– Pervasive (all levels)
– Rapid
– Most active during change
– Normal
– Accept & pay attention
 Characteristics of Grapevine

Not controlled by Management.

Perceived by most employees as being more believable
and reliable than formal communication.
It is largely used to serve self interest of the people.
Evidence show that 75%of what is carried in grapevine is
accurate.
Rumors emerge as response to situation that are
important and when there is ambiguity.
Rumors get spread because of anxiety.
Rumors can not be eliminated, but can be minimized.
 Suggestions to Reduce Negative
Consequences of Rumors

Announce timetable for making important decisions.

Explain decisions and behaviors that may appear
inconsistent or secretive.
Emphasize the downside, as well as upside, of current
decision of the future plans
Openly discuss worst-case-possibilities – it is almost
never as anxiety as the unspoken fantasy.
•70 % of a ll our commun ica ti on
effor ts a re:
•mi sun de rst ood, misi nt erpr eted,
rejec ted, d is liked, di st orted, or not
hea rd (i n th e sa me l angua ge, sa me
cult ur e)!
Barriers to Effective Communication
Feedback

Sender Receiver

Distortion
INTER EST ING FAC TS ABOU T LI ST EN IN G

OUT OF THE TOTAL TIME IN

COMMUNICATING YOU SPEND-
–9% IN WRITING
–16% IN READING
–30% IN SPEAKING
–45% IN LISTENING
 What causes distortion or the barriers to
understanding/listening?

• Perce pti ons • Enviro nme nt – no ise

• La ng uage • Prec onc eiv ed
not ion s/exp ectat ion s
• Se ma ntics
• Word iness
• Persona l Inter ests
• At ten tion span
• Emoti ons
• Ph ysi cal he ari ng p rob lem
• Inf lectio ns • Spee d o f th ou ght
 Other Barriers in Communication

Management Philosophy Failure to discriminate

Attitudes and opinions Polarization
Non receptivity/defensive Frozen evaluation
Know-it-all attitude Improper assessment of the
Blocked mind receiver
Obstinate person Secrecy
Bias and prejudice Lack of self confidence
Wrong assumptions Abstractions
Different comprehension Premature evaluation
of reality tendency
Emotions Filtering
How can we improve our listening skills?

Elimi nat e dist rac tion s

Con centrat e
Foc us on th e sp eake r
Mai ntain an op en m ind
Look for non verbal c ues
Do n ot re ac t t o emot ive
word s
Ask que st ion s
Sit so y ou c an se e & h ear
Av oid preju dic es
Take not es
Ask for clar if icat ion
STRESS MANAGEMENT
Stress
• The physical, psychological, and behavioral
reactions experienced by individuals in
situations where they feel they are in danger
of being overwhelmed.
• It is a common experience of people when
any demands are placed on them by their
work or personal environment.
 Definition
• Stress is mentally or emotionally disruptive or
disquitening influence.
• The non specific response of the body to any
demands made upon it. -Hans selye
• An adaptive response to an external situation that
results in physical, psychological, and/or
behavioural deviations for organisational
participants. - Fred Luthans
“The Fight or Flight Response”
When confronted by a
threat, your body
prepares itself to either
stand ground and
fight, or to run away.
Classification of Stress

(1). EUSTRESS
• The stress which
results when
“good” things
happen to us or
Positive stress
Classification of Stress

(2). DISTRESS

• The stress which

results when “bad”
things occur or
negative stress
Classification of Stress

(3). Neustress
• When a person is
indifferent to the
stress and the result
is neutral.
 Sources of Stress

Stressors
External events or stimuli that are responsible
for stress.
 Characteristics of stressors
• Produce state of overload

• Evoke incompatible tendencies

• Uncontrollable
Potential sources of stress

 Environmental factors
 Organisational factors
 Individual factors
 Environmental factors
 Economic uncertainty
 Political uncertainty
 Technological uncertainty
 Terrorism
Organisational factors

Task demands
Role demands
Interpersonal demands
Organisational structure
Organisational leadership
Organisation’s life stage
Individual factors

Family problems
Economic problems
Personality
Consequences of stress
Physiological consequences of stress - 1
Short-term effects

Speeding up of the reflexes

Improved performance
Increased muscle function
Lower load for the digestion system
Stomach troubles
Cooling of muscles
Increased breathing rate
Reduced sensitivity to minor injuries
Reduction in allergic reactions
Physiological consequences of stress - 2
Long-term effects

Loss of weight
High/Low Blood pressure
Delayed blood clotting
Cardio- Vascular disorders
Arteriosclerosis (Thickening of wall of arteries)
Exhaustion
Heart attack
Diabetes
Damage to the kidneys
Reduction in the immune system
Depression in sensory perceptions/responses
Psychological Consequences of Stress - 1
Cognitive Effects

Decrease in concentration resulting into diminishing powers of

observation.
Increase in distractibility resulting into loss of the thread of
thinking process.
Deterioration of memory in the short as well as long term reducing
the span of the memory for recalling & recognition of even familiar
things .
Reduction in the response speed.
Increase in error rate resulting into snap & hurried decisions and
errors in manipulative & cognitive tasks.
Deterioration in planning & organising disabling the mind to assess
accurately the existing & future conditions.
Increase in delusions & thought disorders resulting into reduced,
powers of objectivity, reality testing & confused thought process.
Psychological Consequences of Stress - 2

Emotional Effects

Increase in tension reducing the ability to relax switching off the

worries & anxiety.
Increase in Hypochondria: imaginary complaints & lack of
feeling of well-being & good health.
Changes in personality traits: indifferent attitude, untidy &
slipshod, over- anxiety, over- sensitivity, hostility,
defensiveness, etc.
Moral & emotional behaviour: emotional outbursts, lower
spirits, a sense of powerlessness, etc.
Fall in the self-esteem: a feeling of incompetence, worthlessness,
lack of status in the groups or society at large, etc.
Psychological Consequences of Stress - 3
Behavioural Effects

Increase in problems of speech : stuttering, stammering, hesitancy, etc.

Diminishing interests & enthusiasm :abandoning short-term goals & life
objectives, dropping of hobbies, disposing of cherished possessions, drop in
energy levels, etc. .
Increase in absenteeism: real or imaginary illness, false excuses, etc. .
Increase in drug abuse: alcohol, caffeine, nicotine, etc.
Disturbance in sleep patterns: either lack of sleep or disturbed sleep.
Cynicism: an increasing tendency to be over-critical & sarcastic about the
superiors, , colleagues, clients, customers, events, etc.
Ignorance of new developments: new people, new systems, new methods, new
products, new technology are ignored.
Superficial problem-solving : temporary & stop-gap solutions are offered, lack
of detailed thinking, lack of follow-up, 'giving-up' tendency.
Lack of self -confidence: decrease in the confidence level, avoiding of
responsibilities or passing on the buck, etc.
Unexpected & bizarre behavioural patterns: odd mannerisms, unpredictable &
uncharacteristic behaviour, use of meaningless phrases, threats of suicide.
Physiological & Psychological effects of stress go
hand-in-hand and are complementary. They vary from
organisation to organisation, situation to situation, time
to time and person to person. It is found that some
people collapse at the first signs of stress, while others
have a great strength to cope with a very high level of
stress and do not show any symptoms. We can learn
from such people, the secrets of their success in coping
with the stress and avoiding a break-down in their
personalities.
 Strategies of Stress Management
Individual Strategies

•Time Management

Most of us are poor in time management with the result of

feeling of work overload, skipping the schedules and the
attendant tension. The truth is that that, if we can manage our
time efficiently and effectively, we can accomplish twice as
much as we can otherwise.
Some of the basic principles of time management are:

•Preparing a list of the daily activities to be attended to.

•Prioritising the activities as per their importance & urgency.
•Re-scheduling the activities as per the priorities.
•Following up the schedule of the activities for early completion.
•Checking up the activities & taking the corrective action (if
any).

It is observed that effective time management result$ in: better

physical health, better mental health, relaxed feeling in action,
higher motivation & enthusiasm, higher efficiency, better job
satisfaction, etc.
•Physical Exercise

It is rightly said that 'there is a sound mind in a sound body '. A

physical' exercise at any age is a must. It helps people to cope
with the stress. It is for this reason that people of all ages are seen
taking morning walk, jogging, swimming, playing outdoor games
like badminton or tennis.- etc:
•Relaxation

There are many ways of relaxation at the end of a hectic

day of work & stress. We can have relaxation through
meditation, hypnosis, biofeedback, yoga, etc. Whatever
the method, the main objective is that one must have
deep relaxation, where the person feels totally relaxed
from the body sensations, At least 15 to 20 minutes a
day of deep relaxation releases tension & provides with a
pronounce sense of peace of mind. This practice causes
significant changes in the blood pressure, heart rate,
sleep, concentration, memory, etc.
•Social Support,

Man is a social animal. After the basic needs and the security
needs are satisfied, an individual needs a social support with a
sense of belonging. It is observed that social support plays an
important role in relieving stress of the individual, because the
person gets friends, colleagues, listeners, and confidence builders
who help in networking and thus relieving the harmful stress. This
also helps to control the ill effects of stress, by virtue of giving a
vent to one's feelings, emotions, fears and frustrations to others,
who can understand and possibly try help him/her out.
• Yoga

Yoga is said to be the most effective way to relieve the

stress. Yoga has been used in many. countries for centuries.
There are many different aspects of Yoga which are said to
be very useful for managing the stress. However, it is
advisable that Yoga & Meditation should be followed under
some expert's guidance for the maximum benefit to reduce
the stress.
 Organisational Strategies

•Organisation Structure

The organisation structure should be properly designed in

order to have appropriate authority- responsibility relationships
among the employees. It helps to have smooth organisational
communication for faster decision making. Too many levels of
hierarchy and too much of bureaucracy in day to day working
can cause avoidable stress for all employees at all levels. The
organisation structure should be simple to understand and
easier to follow.
•Organisational Communication

This consists of various factors like: oral & written

communication; downward, upward & lateral communication;
interpersonal & Intergroup communication; grapevine;
communication networking; etc. All these factors contribute to
the efficiency & effectiveness of the organisation, which in turn
affect the employees for their work related stress. Organisational
communication with downward and upward channels, equally
open for all employees, helps to reduce the work stress.
•Job related activities

Job re-design, job analysis, job descriptions, job

specifications, job evaluation, job enlargement. job
enrichment, job rotation. work-study, etc. are some of
the modern tools & techniques for attracting &
retaining good employees in the organisation, with the
least stressful environment for all.
•Recruitment / Selection / Placement

Certain jobs are more stressful than others in the organisation.

Individuals differ in their response to stress situations.
Individuals with comparatively less experience with an external
locus of control tend to be more stress prone. On the contrary,
people with more experience with an internal locus of control
may adapt better to high stress jobs with a better performance.
These factors should be borne in mind while recruiting people.
It is necessary to give some kind of an induction training to the
new employees in order to orient them to the new organisation
culture, so that they can be better prepared to take up the
stressful jobs.
• Training & Development

Appropriate training & development programmes should be

organised for employees at all levels from time to time, so
that they are updated in their knowledge, skills and attitudes
towards their jobs & the organisation. This helps both the
management & the employees to reduce the gap between the
job requirements on the one hand & the capabilities of the
employees on the other. This automatically reduces the
possibilities of stressful situations, which can be caused by
apprehensions about the changes if any.
•Performance Appraisal

There should be a systematic, scientific & periodic

performance appraisal system in force for all employees. By
this process, both the management & the employees know as
to how they are doing & how they should do. Extra-ordinary
performers should be rewarded extra-ordinarily. Average
performers should be given counselling and the necessary
training inputs for improvement. The mediocre/ below
average performers should be given a clear idea for their
improvement within a stipulated time limit. This helps to
reduce the number of stressed employees and others may be
relieved to some extent, at least from the unnecessary &
avoidable stress.
•Employee Counselling

Employee counseling can be classified in two parts: on-the-job

counseling and off-the-job counseling. Both these are skilled
& sensitive jobs and need qualified & competent staff to do
the job of counseling successfully.

The objectives of the employee counseling can be three-fold :

•to improve the overall organisational efficiency, .

•to reduce the employee stress, and
•to improve the employee efficiency.

Employee counseling, if properly done, can yield very good results not
only in terms of reducing the employee stress, but also in terms of
improvement in the overall organisational Productivity.
Organisation Culture
Organisation culture represents a complex set of beliefs,
expectations, ideas, values, attitudes, shared by the members of
an organisation that evolve over time.

Organisation culture includes:

Routine ways of communicating, such as organisationals

rituals and ceremonies and the language commonly used.
The norms shared by the individuals and teams throughout
the organisation. (e.g. no reserve parking)
The dominant value held by the organisation (product quality)
The philosophy of the management.
The rules of the game for getting along in the organisation.
The feeling or climate conveyed.(e.g. physical layout,
interactions etc.)
Layers of Organisation Culture

Cultural Symbols

Shared Behaviours

Cultural Values

Shared Assumptions
Cultural Symbols are words, gestures and picture or other
physical objects that carry a particular meaning within a culture.

Shared Behaviours are norms in the organisation which are more

vixsible snd somewhat easier to change than values.

Cultural Values represents collective beliefs, assumptions and

feelings about what things are good, normal, rational. And
valuable.
Shared Assumptions represent basic beliefs about reality,
human nature, and the way things should be done.
 Forming a Culture

An organisational culture forms in response to two

major challenges that confront every organisation.
They are:

 External adaptation and survival

 Internal Integration
 Forming a Culture

External adaptation and survival

This involves addressing the following issues:

 Mission and Strategy: identifying primary purpose and

selecting startegies.
 Goals: Setting specific targets.
 Means: Determining how to pursue the goals.
 Measurement: Establishing criteria to determine how well
individuals, teams accomplish the goals.
 Forming a Culture

Internal Integration

Internal integration involves addressing the following issues:

Language and concepts: Identifying methods of

communication and developing a shared meaning for important
concepts.
Group and team boundaries: Establishing criteria for
membership in groups and teams.
Power and status: determining the rules of acquiring,
maintaining and loose power and status.
rewards and punishments: developing systems for
encouraging desirable behaviour and discouraging undesirable
behaviour.
 Method of Maintaining Organisational Culture

Methods of Maintaining Organisational Culture:

What managers and team pay attention to
Reactions to organisational crises
Managerial role modeling
Criteria for rewards
Criteria for selection and promotion
Organisational rites, ceremonies, stories

Recruitment of Removal of
Employee who Organisational Employee who
fit the culture Culture Deviate from
the culture
Types of Organisation Culture

Bureaucratic Culture
Clan Culture
Entrepreneurial Culture
Market Culture
Bureaucratic Culture
An organisation that values formality, rules, standard operating
procedures, and hierarchical coordination has a bureaucratic
culture.
concerns of a bureaucratic culture are:
- predictability
- efficiency and
- stability
Mangers view their role as as being coordinators and enforces
written rules and standards.
Tasks, responsibilities, and authority are clearly defined.
Employees believe that they “go by the book” as rules and
process are clearly defined in the manual..
Clan Culture

Tradition, Loyalty, personal commitment extensive socialization,

teamwork, self management, and social influence are attributes of
clan culture.
Its member recognise an obligation beyond the simple exchange of
labour for a salary.They understand that contribution to the
organisation may exceed any contractual agreement. Long term
security is given to the employee in exchange of his loyalty.
A clan culture achieves unity through socialisation process.The
serve as a mentors and role models of its new members.
They have pride in membership and strong sense of identification
and recognise their common fate in the organisation.
A clan culture generates feelings of personal ownership of a
business, a product or an idea.
Entrepreneurial Culture
The characteristics of Entrepreneurial culture are:
- high level risk taking
- dynamism
- creativity
- experimentation
- innovation
This culture do not react to changes in the environment – it creats
change.
They are mostly small to mid-sized companies.
Market Culture
Its characteristics are:
- achievement of measurable and demanding goals
- hard driving competitiveness
- Profit orientation
In this culture relation between individual and organisation is
contractual.
The individual is responsible for some level of performance.
Organisation promises some level of award in return.
There is no promise of security
Interaction between superior and subordinates are largely on
negotiating performance and reward agreements.
It is often tied to monthly, quarterly annual performance goal
based profits.
 Framework of Types of Cultures

Flexible
Formal Control Orientation

CLAN ENTREPRENEURIAL
CULTURE CULTURE

BUREAUCRATIC MARKET
CULTURE CULTURE

Stable
Internal External
Forms of Attention
Management of organisational
Change
Characteristic of organisational change

1. Change basically results from both outside and inside

the enterprise.
2. Change takes place in all organisations and in all
parts of the organisation but at varying rates of speed
and degrees of significance.
3. The enterprise change in several ways. Its
technology, structure, procedure and other elements
may change.
Forces for change

Force Examples
--------------------------------------------------------------------------
Nature of the workforce More cultural diversity
Increase in professionals
Many new entrants with
inadequate skills
Technology Faster and cheaper computers
New mobile communication
device
Deciphering of human genetic
code
Economic shocks Rise and fall of dot.com stocks
Decline in the value of euro
Collapse of Enron Corp
Forces for change

Force Examples
--------------------------------------------------------------------------
Competition Global competitors
Mergers and consolidations
Growth of e-commerce

Social trends Internet chat

Increased interest in urban
living
World politics Escalation of hostilities/terrorism
Opening markets in China
War on terrorism
Resistance to change
Individual Resistance
Sources of Individual Resistance to Change

Selective
information Habit
processing
Individual
Resistance
Fear of the Security
unknown
Economic
factors
 Organisational Resistance
Sources of Organisational Resistance to Change
Threat to
Structural
established
inertia
revenue
allocation
Limited
Threat to Organisational focus of
established Resistance change
power
relationship
Threat to Group
expertise inertia
Overcoming Resistance to Change

1. Education and communication

2. Participation
3. Facilitation and support
4. Negotiation
5. Manipulation and cooptation
6. Coercion
 Approaches to Managing Organisational Change
Kurt Lewin’s three step change model

Unfreezing Movement Refreezing

Unfreezing – change efforts to overcome the pressure of both

individual resistance and group conformity.
Moving – changing, individuals learn to behave in new ways
after having convinced that their present behaviour is
inappropriate.
Refreezing – stabilising a change
Conclusion: Main Points

 1. Change is necessary
 2. Become person oriented
 3. Take opportunities for Advancement
 4. Keep up with technology
 5. Introduce change effectively
 6. Have Personal Control over Life
GROUP DYNAMICS
Group

Two or more individual, interacting and

interdependent, who have come together to
achieve particular objectives.
Formal Group

A designated work group defined by the

organisation’s structure.
Informal Group

A group that is neither formally structured nor

organisationally determined; appears in
response to the need for social contact.
Command Group

A group composed of the individuals who

report directly to a given manager and is
determined by the organisation chart.
Task Group

Those working together to complete a job task

and also organisationally determined.
Interest Group

Those working together to attain a specific

objective with which each is concerned.
Group Dynamics

Group Dynamics Refers to Changes Which

Take Place Within Groups and Is
Concerned With the Interaction and Forces
Obtained Between Group Members in a
Social Setting.
 STAGES OF GROUP DEVELOPMENT

The five stage group development model

Stages of Group Development

2. Forming
3. Storming
4. Norming
5. Performing
6. Adjourning
FORMING
Forming Stage

The first stage in group development,

charecterised by much uncertainty.
Forming Stage

 Acceptance Within The Group

 Dependence On The Group

 Safe Patterned Behaviour

 Avoiding Controversy
STORMING
Storming Stage

The second stage in group development,

charecterised by intragroup conflict.
Storming Stage

•Conflict And Competition Within

The Group
•Fear Of Failure
•Hostilities Are Formed
•Some Members Are Silent
•Few Members Are Dominant
NORMING
Norming stage

The third stage in group development,

charecterised by close relationships and
cohesiveness.
Norming stage

 Bonding Among The Group Members

 Solving Of Personal Issues
 Leadership Is Shared
 Sense Of Group Belonging
PERFORMING
Performing Stage

The fourth stage in group development, when

the group is fully functional.
Performing Stage

 Members Adjust
According To The
Needs

 Group Is Highly
Productive

 Group Unity Exist

 Emphasis On
Achievement
ADJOURNING
Adjourning Stage

The final stage in group development for

temporary groups, charecterised by concern
with wrapping up activities rather than task
performance.
Adjourning Stage

Termination Of Group

Disengagement Of
Relationships

Recognition Of Work

Can Create Some

Apprehensions
 DETERMINANTS
OF
GROUP BEHAVIOUR
Determinants of group Behaviour

The elements of the organisation that will have

influence on the group includes:

1.Organisation Strategy
2.Authority Structure
3.Formal Regulations
4.Organisational Resources
5.Procurement of Personnel
6.Performance Appraisal and Reward System
7.Organisational Culture
8.Physical Work Setting
TEAMS vs GROUPS
CRITERIA GROUPS TEAMS
Leadership Formal Shared roles
-established
Accountability Individual Shared and
individual
Performance Sum of individual Collective and
outputs synergistic
Skills Diverse Complementary

Orientation Common goal Common

commitment
Difference Between Groups and Teams
Effective Teamwork
Effective Teamwork

Organisational success depends on teamwork

rather than individual output.

Team work depends on:

1.Cooperation
2.Trust
3.Training
4.Rewards
 WORK
AND
CONDITIONS OF WORK
Work

Work is use of individual’s psychological

and mental processes in attainment of some
goal.
Characteristics of Work

A hypothetical work curve shows that decrement in

productivity occurs after productivity reaches to certain
level.

This fall in productivity will vary according to the type of

work
Reasons for Decrement

The main reasons for decrement are:

1. Fatigue
2. Boredom
Fatigue

Fatigue is defined as the tiredness of the body as a result of

continuous physical activity.

Fatigue is reaction of the body to the continuous work.

Fatigue can be avoided by introducing authorised rest

pauses.
Boredom

Boredom is the reaction of the mind to having to do the

same work continuously. It arises from conflict between the
necessity for doing a dull job and wanting to turn to more
interesting activities.
Creating Favourable Work Environment

In order to create favourable work environment and better

performance of the employee some changes in the work
environment may be implemented. These are:

1. Noise
2. Music
3. Illumination
4. Colour
5. Atmospheric effects
Organisational Power and Politics
Power and dependence

Person B’s Person

counterpower
over Person A A

Person Person
B B’s goals
Person A’s
power over
Person B
The meaning of power
Power is the capacity of a
person, team or organisation
to influence others
 the potential to influence
others
 people have power they don’t
use and may not know they
possess
 power requires one person’s
perception of dependence on
© Southland Times/(New Zealand) another person
Model of power in
organisations

Sources
of power

Legitimate Power
Reward over others
Coercive
Expert
Referent Contingencies
of power
Consequences of power
Sources Consequences
of power of power

Expert
power
Commitment
Referent
power
Legitimate
power Compliance
Reward
power
Coercive Resistance
power
Organisational politics

 Attempts to influence others using

discretionary behaviours to promote personal
objectives
 discretionary behaviours − neither explicitly
prescribed nor prohibited
 Politics may be good or bad for the
organisation
Types of organisational
politics

Managing Attacking and

impressions blaming

Creating
Types of Controlling
obligations organisational information
politics

Cultivating Forming
networks coalitions
Conditions for organisational
politics

Personal Scarce
characteristics resources
Conditions
supporting
organisational
politics
Complex and
Tolerance of
ambiguous
politics
decisions
Controlling political
behaviour

Provide
Remove
sufficient
political norms
resources

Hire
Introduce
low-politics
clear rules
employees

Increase
Free flowing
opportunities
information
for dialogue

Manage change Peer pressure

effectively against politics