1.

JOB STRESS
Stress is the emotional feeling of an individual to fight or flee when faced with a problem or demand. Job stress can be
defined as the harmful physical and emotional responses that occur within an individual when the requirements of the job
do not match the capabilities, resources, or needs of the worker.

Stress at workplace is a common feature and majority people experience it. Some jobs are associated with stress.
According to Crider, Goethals, Kavanaugh and Soloman, Stress is a pattern of disruptive psychological and
physiological functioning that occurs when an environmental event is appraised as a threat to important goals and ones
ability to cope. According to J.D. Brodzinski, R.F. Scherer and K A Goyer, Stress is, the interaction between the
individual and the environment characterized by physiological and psychological changes that cause a deviation from
normal performance.

Importance of job stress management for effective practice of human resource management:

(1) It has psychological and physiological effects on both employees and managers both affecting their health and
performance at work,

(2) It is a major cause of absenteeism and poor employee turnover,

(3) Employee under stress may cause safety problems to fellow employees specially when he is handling dangerous
machines and equipments,

(4) It makes an employee nervous and may lose temper,

(5) It makes an employee non- cooperative in nature,

(6) It may affect any member of the organisation whether he or she is a worker, manager, old and young both.

Stress is not always negative. Any event causing stress results into an action form person under stress. This action may
also result into positive performance. If so, according to Cynthia D Fisher, L F Schoenfeldt and J B Shaw, The
optimum level of tension will result in maximum performance. Optimum level of stress is difficult to determine as it
depends upon the kind of occupation, age, sex and race of the employee. Overstress is always dangerous. No employee
can escape its consequences.

In the below given diagram OS is the amount of stress on the employee results into optimum performance OP. More than
OS stress results into negative performance because of its consequences on the employee. Too much stress is always
detrimental and employees and organisation both suffer from its ill effects. Positive stress works, as motivator.

The relationship between stress and performance is shown in the diagram given below:

Employees are experiencing high level of stress due to various factors such as high workload, tight deadlines, high
targets, type of work, lack of job satisfaction, long working hours, pressure to perform, etc. Interpersonal conflicts at the
workplace, such as boss-subordinate relationships and relationships with peers, are also a source of stress.

Sources of job stress

1. Lack of control - Feeling as if you have no control over your work or job duties is the biggest cause of job stress.
People who feel like they have no control at work are most likely to get stress-related illnesses.
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2. Increased responsibility - Taking on extra duties in your job is stressful. You can get more stressed if you have too
much work to do and you can't say no to new tasks.

3. Job satisfaction and performance - Feeling insecure about job performance is a major source of stress for many
people.

4.Uncertainty about work roles - Being unsure about your duties, how your job might be changing, or the goals of your
department or company can lead to stress. If you report to more than one boss, juggling the demands of different
managers can also be stressful.

5.Poor communication - Tension on the job often comes from poor communication. Being unable to talk about your
needs, concerns, and frustrations can create stress.

6.Lack of support. Lack of support from your boss or coworkers makes it harder to solve other problems at work that are
causing stress for you.

7.Poor working conditions. Unpleasant or dangerous physical conditions, such as crowding, noise,
or ergonomic problems, can cause stress.

What are the causes of Job stress?

There are three sets of factors that are responsible for causing stress.
Environmental Factors:
Environmental uncertainty influences stress levels of employees in an organization. Changes in the business cycle create
economic uncertainties. When the economy is contracting, people become increasingly anxious about their security.
Political uncertainties are also a cause of stress.
Technological uncertainty is also a type of environmental factor that can cause stress. New innovations can make an
employees skills and experience obsolete in a very short period of time.

Organizational Factors:
There are no shortage of factors in organizations that can cause stress. These are typical causes of stress at work :
Bullying or harassment, by anyone, not necessarily a persons manager
feeling powerless and uninvolved in determining ones own responsibilities
Continuous unreasonable performance demands
Lack of effective communication and conflict resolution
Lack of job security
Long working hours
Excessive time away from home and family
Office politics and conflict among staff
A feeling that ones reward is not commensurate with ones responsibility.

Individual Factors:
A person susceptibility to stress can be affected by any or all of these factors, which means that everyone has a different
tolerance to stressors. And in respect of certain of these factors, stress susceptibility is not fixed, so each persons stress
tolerance level changes over time:
Childhood experience (abuse can increase stress susceptibility)
Personality (certain personalities are more stress-prone than others)
Genetics (particularly inherited relaxation response, connected with serotonin levels, the brains well-being, chemical)
Immunity abnormality (as might cause certain diseases such as arthritis and eczema, which weaken stress resilience)
Lifestyle (principally poor diet and lack of exercise)
Duration and intensity of stressors

Sleep disturbances, mood swings, headache, upset stomach and, disturbed relationships with family and friends are early
signs of job stress. However, the health effects of job stress on chronic diseases are more difficult to see as chronic
diseases take a long time to develop and can be influenced by factors other than stress. Nonetheless, evidence suggests
that stress is responsible for several types of chronic health problemsespecially cardiovascular disease, musculoskeletal
disorders, and psychological disorders.

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Consequences of Job Stress
There are three important categories involved in consequences of stress, i.e, (a) Consequences for the Individual, (b)
Consequences for the Family, and (c) Consequences to Organisations.

In the initial stages, the major concern of stress was directed at physiological symptoms. The reason was that this topic
was researched by specialists in the health and medical sciences. According to the researchers high degrees of stress are
typically accompanied by severe anxiety, frustration and depression.

Some of the physiological symptoms:

(a) Stress: Irritability, insomnia, alcohol and food abuse. Physical changes including rapid breathing, and heart beat,
tensed muscles. Prolonged stress can cause muscular twitches, skin problems, baldness and sexual problems such as
impotence.

(b) Anxiety:
Excessive worry, irritability, anger, nervousness as well as un-ability to concentrate or sleep. Physical changes include
palpitations, chest pain and dizziness.

(c) Depression: Feeling of sadness, hopelessness, guilt and worthlessness, loss of interest in activities, change in appetite
or weight, difficulty in concentrating and suicidal thoughts. The link between stress and particular physiological
symptoms is not clear. According to Academy of Management Journal there are few, if any, consistent relationships. But
the fact which is relatively significant is that physiological symptoms have the least direct relevance to the students of
human behaviour. Our concern is with behaviour and attitudes. Therefore, the other two categories of symptoms are more
important to us.

2. Psychological Symptoms:
While considerable attention has been given to the relationship between stress and physiological symptoms, especially
within the medical community not as much importance has been given to the impact of stress on mental health. But
psychological problems resulting from stress are very important in day to day job performance.

The psychological impacts of stress may be:

(i) Stress can cause dissatisfaction. Job related stress can cause job-related dissatisfaction. Job dissatisfaction is the
simplest and most psychological aspect of stress.

(ii) High levels of stress may be accompanied by anger, anxiety, depression, nervousness, irritability, tension and
boredom. One study found that stress had the strongest impact on aggressive actions such as sabotage, interpersonal
aggression, hostility and complaints.

(iii) The psychological problems from stress may lead to poor job performance, lowered self esteem, resentment of
supervision, inability to concentrate, make decisions and job dissatisfaction.

(iv) Research indicates that when people are placed in jobs that make multiple and conflicting demands or in which there
is a lack of clarity as to the individuals duties, authority and responsibilities, both stress and dissatisfaction are increased.

(v) The less control people have over the pace of their work, the greater the stress and dissatisfaction.

(vi) Some evidence suggests that jobs that provide a low level of variety, significance, autonomy, feedback and identity,
create stress and reduce satisfaction and involvement in the job.

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3. Behavioural Symptoms:

Any behaviour which indicates that you are not acting your usual self may be a sign of adverse reaction to stress.

Direct behaviour that may accompany high levels of stress includes:

(i) Undereating or overeating
(ii) Sleeplessness
(iii) Increased smoking and drinking
(iv) Drug abuse
(v) Nodding off during meetings or social gatherings
(vi) Losing your sense of humour
(vii) Moving in a tense and jerky way
(viii) Reacting nervously or irritably to everyday sounds
(ix) Absenteeism and turnover
(x) Reduction in productivity

Consistently acting arid feeling out of character is a serious warning that we are losing our ability to cope with tension.
Inability to feel or express any emotions or a sense of being indicates loss of contact with our surroundings and ourselves.
The above indicators can help us in overcoming the tensions in our day to day life. Like the psychological problems
resulting from stress, the behavioural problems are often not attributed to stress by co- workers or supervisors and
generate little sympathy.

B. Consequences for the Family:

Distress which is handled by individuals in dysfunctional ways such as resorting to drinking or withdrawal behaviours,
will have an adverse effect on their family life. The effects of this will be spouse abuse, child abuse, alienation from
family members and even divorce.

The stressors which generally affect the family life are:

(i) In the dual career families where both the spouses are pursuing careers, a lot of personal commitments, varied in
nature, are demanded from them (both to their jobs and families). The stresses experienced by the couples stem from role
overload, since both partners have to manage their careers as well as help the family.

(ii) Additional stresses are experienced while handling the personal, social and cultural dilemmas of balancing work and
family, discharging parenting responsibilities, handling competition at the work place and within the family and being an
involved member of the extended family.

C. Consequences for the Organisations:

The effect of employees stress on organisations is many and varied.

These include:
(i) Low performance and productivity.

(ii) High rate of absenteeism and turnover.

(iii) Loss of customers due to poor attitudes of workers.

(iv) Increased alienation of the worker from the job.

(v) Destructive and aggressive behaviours resulting in strikes and sabotage.

The stresses experienced by employees who take on critical roles and are responsible for public safety can sometimes be
detrimental to the well being of the constituents served. For example, the stress experienced by airline pilot, train driver,
railway guard or air traffic controller can result in the loss of so many lives. Therefore, the costs of employees stress to
the organisation in terms of lost profits, declining assets, bad image projection, poor reputation and loss of future business
are enormous.

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Coping Strategies for Stress
There are two important coping strategies for stress, i.e, (a) Individual Coping Approaches, and (b) Organisational Coping
Approaches.

A. Individual Coping Approaches:

As we know that stress has got a number of negative consequences for the individuals, so every individual should take
personal responsibility for reducing his or her stress level. There are a number of ways by which a person can either avoid
stressful conditions, change them or learn to cope with them. Stress can be managed by an individual, which will enable
him to regain control over his life.

Some of the stresses reducing strategies from individuals point of view are:
1. Knowledge about Stress:
In the first stage, an individual should become knowledgeable about stress. He should know about the process and effects
of stress. He must find out the major sources of his stress. He must anticipate stressful periods and plan accordingly in
advance. He must be honest with himself and decide what he can cope with what he cannot.

2. Physiological Fitness:
Exercise in any form can help people in coping with the stress. Non competitive physical exercise such as aerobics,
walking, jogging, swimming, riding a bicycle, playing softball or tennis has been recommended by physicians as a way to
deal with excessive stress levels. There is evidence to suggest that individuals who exercise are much less likely to suffer
from certain types of stress related exercises.

3. Time Management:
Most of the people are very poor in managing their time. They dont know that what must be done and when it would be
desirable to do so. The result of poor time management is feeling of work overload, skipped schedules and tension. A well
organised person can often accomplish twice as much as the person who is poorly organised. Therefore, an individual
must understand how to manage his time so that he can cope with tensions created by job demands.

A few of the well known time management principles are:

(i) Preparing a daily list of activities to be attended to.
(ii) Prioritizing activities by importance and urgency.
(iii) Scheduling activities according to the priorities set.
(iv) Knowing your daily schedule and handling the most demanding parts of a job when you are most alert and
productive.
4. Assertiveness:
An individual should become assertive. He should not say Yes when he wants to say No. He should start saying no to
people or managers who demand too much of his time. Being assertive is an important factor in reducing stress.

5. Social Support Network:

Every person should have people to turn to, talk to and rely upon. Good friends become highly supportive during times
of stress and crisis. Social net work includes friends, family or work colleagues. Expanding your social support system
can be a means for tension reduction because friends are there when needed and provide support to get the person through
stressful situations.

6. Readjust Life Goals:

Every individual must know what he really wants to do. This should relate to not only the major decisions of the life but
to all activities in our life. He must know what is important for him. Because of the severe competition in life to go ahead,
most individuals set very high standards and goals for themselves.

7. Relaxation Techniques:
Every individual must teach himself to reduce tension through relaxation techniques such as yoga, meditation, hypnosis
and biofeedback. 15-20 minutes a day of deep relaxation releases tension and provides a person with pronounced sense of
peacefulness. Deep relaxation conditions will bring significant changes in heart rate, blood pressure and other
physiological factors. Yoga is probably the most effective remedy for stress. Studies have revealed that yoga has cured
several stress related diseases.

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8. Plan your life in Advance:
So many times, people create situations which induce stress because they either did not plan or did a bad job of planning.
The traditional Indian attitude of whatever will be, will be a way of accepting the unexpected difficulties in life. This
attitude may be relevant in those situations over which we do not have any control like death in the family, but for other
events in life, it is better to plan in advance, so that we can confront them with confidence when they occur.

B. Organizational Coping Approaches:

Individuals may design their own strategies to reduce stress, but it is a must for the organisations to develop programmes
that will help the employees in reducing their stress. This will lead to less employee turnover, absenteeism and as a result
productivity will improve.

Some of the measures which organisations can take are:

1. Selection and Placement:
Individuals differ in their response to stress situations. We know that Type A individuals are more prone to stress. On
the other hand, in the organisations there are certain jobs which are more stressful as compared to other jobs. While doing
the selection and placement of the employees, these factors must be kept in mind. The individuals who are more prone to
stress should not be put on jobs which are stressful. The individuals who are less prone to stress may adapt better to high
stress jobs and perform those jobs more effectively.

2. Goal Setting:
Based on extensive amount of research it has been concluded that individuals perform better when they have specific and
challenging goals and they receive feedback on how well they are progressing towards those goals. Goal setting can
reduce stress as well as provide motivation. It will result in less employee frustration, role ambiguity and stress.

3. Improved Communication:
Sometimes due to lack of effective communication from the superiors, the employees do not know what they have to do
and how they have to do it. This result in role ambiguity. Similarly, when two or more persons have contradicting role
demands from an employee, it leads to role conflict if there is lack of proper communication. Effective communication
with employees reduces the uncertainty by lessening role ambiguity and role conflict.

4. Redesigning Jobs:
Organisations should redesign the jobs in such a way as to give employees more responsibility, more meaningful work,
more autonomy and increased feedback. This will help reduce the stress caused by monotony, routine work, work
overload or under load and role ambiguity. Job redesigning enhances motivation, reduces the stress among the employees
and enhances Quality of work life.

5. Participative Decision Making:

If the organisations give the employees participation in those decisions that directly affect them and their job
performance, it can increase employee control and reduce the role stress. The main reason of role stress is that employees
feel uncertain about their goals, expectations and how they will be evaluated. These uncertainties can be reduced by the
management by giving the employees a right to participate in the decision making.

6. Building Teamwork:
The management should try to create such work environment in which there is no provision for interpersonal conflict or
inter group conflict. Such conflicts are the causes of stress; such should be prevented from building or eliminated if they
develop. Accordingly such team work should be developed that groups and the members are mutually supportive and
productive. Members of the group should consider themselves as members of the same family and seek social support
from each other.

7. Personal Wellness Programmes:

These personal wellness programmes focus on the employees total physical and mental condition. Organisations can
provide facilities at their premises for physical fitness such as gyms, swimming pools, tennis courts etc. as well as
psychological counselling. They should hold seminars or workshops to make the employees understand nature and
sources of stress and the possible ways to reduce it.

These workshops should help those individuals who are already under stress. Moreover, a supervisor can impact personal
wellness of his subordinates through positive example, encouragement and by practising the basic concepts and
techniques of human resource management. To conclude, we can say that all these strategies or a combination thereof
should be applied to make the work environment less stressful to a level which is positive and challenging.

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 2. Group
A group refers to two or more people who share a common meaning and evaluation of themselves and come together to
achieve common goals. In other words, a group is a collection of people who interact with one another; accept rights and
obligations as members and who share a common identity. A group may also be defined as set of people who have the
same interests or objectives and who organize themselves to work together and strive towards a common goal.

According to Shaw, Group is defined as two or more persons who are interacting with each other in such a manner that
each person influences and is influenced by each other.
Groups exist in every organization and it is believed that an organization will function best when its personnel function
not as individuals but as members of highly effective work groups with high performance goals.

Characteristics of a Group:
Regardless of the size or the purpose, every group has similar characteristics:
(a) 2 or more persons (if it is one person, it is not a group)
(b) Formal social structure (the rules of the game are defined)
(c) Common fate (they will swim together)
(d) Common goals (the destiny is the same and emotionally connected)
(e) Face-to-face interaction (they will talk with each other)
(h) Recognition by others (yes, you belong to the group).
(f) Interdependence (each one is complimentary to the other)
(g) Self-definition as group members (what one is who belongs to the group)
(h) A hierarchical group structure i.e., clearly defined role for each member
(i) Standard norms of behaviour
(j) Influence of interaction with each other.

Types of Groups Found in an Organisation

There are two important groups found in an organization, i.e, (1) Formal Groups, and (2) Informal Groups.

1. Formal Groups:
By formal groups, we mean those groups defined by the organizations structure, with designated work assignments and
establishing tasks. In formal groups, the behaviours that one should engage in are stipulated by and directed towards
organisational goals.

The features of formal groups are as follows:

(i) Formal groups are part of the organisational structure.

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(ii) These are created deliberately and consciously by the management to perform the assigned duties.

(iii) The pattern of communication is also defined and the rules are laid down to regulate the behaviour of group
members.

(iv) These groups may be either permanent in the form of top management team such as Board of Directors or staff
groups providing specialized services to the organisation and so on; or these formal groups may be constituted on
temporary basis for fulfilling certain specified objectives. When such objectives are fulfilled, these disappear. These may
be in the form of temporary committees, task force etc.
The Formal Groups may further be sub classified into the following groups:
(i) Command Groups:
The command group is the most frequent type of formal group. It is relatively permanent and is specified by the
organisation chart. It comprises of managers or supervisors and subordinates, who meet regularly to discuss general and
specific ideas to improve product or service. In business organisations, most employees work in such command groups.

Thus, a manager and his supervisors reporting to him form one command group. The supervisor and the subordinates
reporting to him from other command groups.

(ii) Task Forces:

Task groups are also organisationally determined. But it is a temporary group representing the employees who are
working together to complete a job task or particular project. However, a task groups boundaries are not limited to its
immediate hierarchical superior. For example, if a problem involving many departments arises, a task force made up of
representatives from each of the affected departments, might be formed to examine the problem and suggest solutions.

(iii) Committees:
The committees are also set up for some special projects. These can be permanent such as planning committee or a budget
committee and may become an integral part of the organisational structure. A committee can also be temporary such as a
special task force which is set up for a particular purpose and is disbanded when the purpose is achieved. For example, the
committee constituted to elect the president of the company is temporary and is disbanded after the election.

2. Informal Groups:
Informal groups are alliances that are neither formally structured nor organisationally determined. These groups are
natural formations in the work response to the common interests of the organisation members such as self defense, work
assistance and social interaction.

The features of these groups are as follows:

(i) The informal groups are formed by the members of such groups by themselves rather than by the management.

(ii) These groups arise spontaneously in the organisation because of social interaction between the people.

(iii) These are based on common interests, language, taste, caste, religion, background etc.

(iv) These groups exist outside the formal authorities system and without any set rigid rules.

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(v) Though officially unrecognized, these groups exist in the shadow of the formal structure as a network of personal and
social relations which must be understood and respected by the management.

(vi) These groups have their own structure, with their own leaders, and followers, group goals, social roles and working
patterns. They have their own unwritten rules and a code of conduct which every member accepts implicitly. Members
trust and respect each other.

(vii) The informal groups are more flexible than the formal groups. Rules and procedures being unwritten, they can
change from situation to situation.

(viii) Since these groups concentrate on the personal contact between the members, they represent the human side of
enterprise as compared to technical side represented by the formal groups.

Since informal interaction is spontaneous it can take place in any way.

Consequently, informal organisations may be of different types as explained below:

(i) Interest and Friendship Groups:
People who may or may not be aligned into common command or task groups may affiliate to attain a specific objective
with which each is concerned. This is called an interest group. For instance, the employees who group together to
pressurize the management for subsidized transport constitute an interest group.

A friendship group includes close friends or relations. These groups arise because members know each other very well
before joining the organisation and in the initial stages, they recognize each other only. These social alliances, which
frequently extend outside the work situation, can be based on similar age or ethnic heritage or for holding similar political
views or for having the same hobbies etc.

(ii) Cliques:
Another type of informal groups is called cliques. These groups consist of colleagues or those who commonly associate
with each other and observe certain social norms and standards, but the number of members tends to be smaller, and only
rarely exceeds five or six. The objective is to provide recognition to each other and exchange information of mutual
interest.

M. Dalton has identified three types of cliques:

(a) Vertical Clique:
This group consists of people working in the same department drawing membership regardless of ranks. In this case, the
superior may be a member in the group consisting mainly of subordinates. Such groups which cut across hierarchical lines
develop because of the earlier acquaintance of people or because the superior is dependent upon the subordinates for
some formal purposes like filling gaps in his abilities.

(b) Horizontal Clique:

This group consists of people of more or less the same rank and working more or less in the same area. Members are able
to find some points of commonness and keeping the objectives in mind, come together. This is the commonest type of
informal group.

(c) Random or Mixed Clique:

This group draws members from different ranks, departments and physical locations. Again, people having some
similarities come together for a common purpose. The members may be residing in the same locality, travelling by the
same bus or may be members of the same club.

(iii) Sub-Cliques:
This group consists of some members of a clique inside the organisation forming a group along with persons outside the
organisation. The members of the cliques give these outsiders due recognition because of some members of their group
being associated with them. Such groups are regarded as partially external to the organisation.

(iv) Sayles Classification of Group:

On the basis of the pressure tactics adopted by the groups L.R. Sayles identified four kinds of groups in the
organisations which are discussed below:
(a) Apathetic Groups:
This group is characterised by relatively few grievances and it hardly ever uses pressure tactics. In the group, no one ever
emerged as an acceptable leader and therefore, there is lack of clearly defined leadership. These groups are composed of
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relatively low paid and low skilled assembly line workers who lack unity and power and hardly ever use pressure tactics.
Such groups are generally indifferent to formal organisations.

(b) Erratic Groups:

Members in the erratic groups are easily inflamed and easily pacified. There is lack of consistency in their behaviour.
Sometimes they show antagonism towards the management while on other occasions, they may be cooperative. In such a
group, any active member could assume the reins of the group and become the leader. These groups are composed of
semiskilled workers who work together in performing jobs that require some interaction. They display considerable unity,
but it is very difficult to predict their behaviour.

(c) Strategic Groups:

The members of such group are able to prepare a strategy for putting pressure on other groups and the management.
Members of such groups are generally performing technologically independent jobs and are comparatively better placed
than members of earlier categories. It is difficult to apply exact time standards for judging their performance as their jobs
are of such a nature that personal judgment matters. These people are highly united and actively participate in union
activity. These people maintain a relatively consistent antagonism.

(d) Conservative Groups:

These groups are composed of professionals and highly skilled employees in the plant. They are found at higher levels of
the organisation and display considerable self confidence. They work on their own and the nature of their jobs is such that
they can shut down the plant if they so desire. These people are found to be very strong and very stable among informal
groups.

Such groups exercise restrained pressure for highly specified objectives and display moderate internal unity and self
assurance. In terms of union activities there are Activity-Inactivity Cycles. They are cooperatively oriented most of the
times. They adopt antagonistic attitude towards management only when highly specific goals are sought by group
members acting together.

The relationship between formal and informal groups is mutually reinforcing and competing. Informal groups can assist
formal groups in solving a complex problem. But what concerns an individual who is interested in the study of
organisational behaviour is the negative role played by informal groups. Some informal groups are deliberately formed to
work against management.

Process/Stages of Group Development/Evolution:

Group Development is a dynamic process. How do groups evolve? There is a process of five stages through which groups
pass through. The process includes the five stages: forming, storming, forming, performing, and adjourning.

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Forming:
The first stage in the life of a group is concerned with forming a group. This stage is characterized by members seeking
either a work assignment (in a formal group) or other benefit, like status, affiliation, power, etc. (in an informal group).
Members at this stage either engage in busy type of activity or show apathy.

Storming:
The next stage in this group is marked by the formation of dyads and triads. Members seek out familiar or similar
individuals and begin a deeper sharing of self. Continued attention to the subgroup creates a differentiation in the group
and tensions across the dyads / triads may appear. Pairing is a common phenomenon. There will be conflict about
controlling the group.

Norming:
The third stage of group development is marked by a more serious concern about task performance. The dyads/triads
begin to open up and seek out other members in the group. Efforts are made to establish various norms for task
performance.

Members begin to take greater responsibility for their own group and relationship while the authority figure becomes
relaxed. Once this stage is complete, a clear picture will emerge about hierarchy of leadership. The norming stage is over
with the solidification of the group structure and a sense of group identity and camaraderie.

Performing:
This is a stage of a fully functional group where members see themselves as a group and get involved in the task. Each
person makes a contribution and the authority figure is also seen as a part of the group. Group norms are followed and
collective pressure is exerted to ensure the Process of Group effectiveness of the group.

The group may redefine its goals Development in the light of information from the outside environment and show an
autonomous will to pursue those goals. The long-term viability of the group is established and nurtured.

Adjourning:
In the case of temporary groups, like project team, task force, or any other such group, which have a limited task at hand,
also have a fifth stage, This is known as adjourning.

The group decides to disband. Some members may feel happy over the performance, and some may be unhappy over the
stoppage of meeting with group members. Adjourning may also be referred to as mourning, i.e. mourning the
adjournment of the group.

Group Cohesiveness
Group cohesiveness is one of the characteristic features of the groups, which is very important from behaviouristic point
of view. Cohesiveness is the degree to which the group members are attracted to each other and are motivated to stay in
the groups. Cohesiveness defines the degree of closeness that the members feel with the groups. It is understood as the
extent of liking each member has towards others in the group and how far everyone wants to remain as a member of the
group.

According to Walker, Cohesiveness may be defined as the resultant power of a group to think and act as a single unit in
pursuit of a common objective.

According to Seashore, Group cohesiveness is the attraction of the members to the group in terms of the strength of
forces on the individual members to remain active in the group and to resist leaving it.

Cohesiveness refers to the extent of unity in the group and is reflected in members conformity to the norms of the
group, feeling of attraction for each other and wanting to be co-members of the group. Attraction, cohesiveness and
conformity are all intertwined. The more the members feel attracted to the group, the greater will be the group
cohesiveness. The greater the cohesiveness, the greater the influence of the group members to persuade one another to
conform to the group norms. The greater the conformity, the greater the identity of the members to the group and the
greater the group cohesiveness.

Consequences of Cohesiveness:
Group cohesiveness has only positive consequences.

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1. More Participation:
Higher the degree of group cohesiveness, closer will be the interpersonal relationships among the members. As a result
members will participate actively in group affairs and activities. As the members consider the group as their own, just like
a family, they will help other members of the group in times of need which will further strengthen their bonds. The
turnover of members will be very low. If possible, all the members attend the group meetings and group activities and
take active part in discussions relating to preparing of strategies for achieving individual and group goals.

2. More Conformity:
One of the factors which influence cohesiveness is similarity of attitudes and values. As a result, members tend to like
each other and perceive themselves as similar. These characteristics lead members to be relatively dependent on the group
for satisfaction and, thus, they are susceptible to being influenced. For example, if any member is getting involved in
organisational politics for enhancing his personal goals, the group might put social pressure on him and make him comply
with the group norms.

3. More Success:
Cohesiveness and success are mutually dependent upon each other. Cohesiveness makes the goal achievement easier and
goal achievement adds to success. The reason for this relationship is that higher degree of cohesiveness leads to high
degree of communication, participation and conformity to group norms. Such coordinated efforts result in agreement
about the goals to be achieved, the methods of achieving them and finally achieving the final goals.

4. More Communication:
Members of cohesive groups communicate with each other more than the members of non-cohesive groups. Because the
members share common ideologies, goals, backgrounds or attitudes, they are inclined to greater communicativeness. Such
communication is reinforcing as it tends to foster and cement positive social relations as well as depth in personal
relationships.

5. More Personal Satisfaction:

Members of cohesive groups are more satisfied as compared to members of non-cohesive groups. Thus is understandable
because if members are not satisfied they will leave the group and join some other group. Members are more satisfied due
to so many factors which include friendliness, respect, support, achievement, protection and a feeling of security.

6. High Productivity:
Cohesiveness may contribute to increased productivity because:
(i) People in cohesive groups experience fewer work related anxieties and tensions

ii) Highly cohesive groups tend to have lower absenteeism and turnover and

(iii) Cohesiveness decreases productivity differences among groups.

Studies consistently show that the relationship of cohesiveness and productivity depends on the performance related
norms established by the group. If performance related norms are high, a cohesive group will be more productive than
will a less cohesive group. But if cohesiveness is high and performance norms are low, productivity will be low.

If cohesiveness is low and performance norms are high, productivity increases but less than in high cohesiveness-high
norms situation. Where cohesiveness and performance related norms are both low, productivity will tend to fall into the
low to moderate range.

These conclusions are summarized in the following figure:

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The worst situation for the manager is a highly cohesive group with low performance norms. Here members are highly
motivated to work for their personal satisfaction only not for the organisational goals. Here the success of the
management will depend upon how to direct the activities of highly cohesive group towards the successful attainment of
organisational goals.

The consequences of cohesiveness are now illustrated with the help of the following diagram:

Managerial Actions for Increasing or Encouraging Cohesiveness:

A manager can follow any one or more of the following suggestions to encourage cohesiveness:
1. Make the group smaller

2. Encourage agreement with group goals

3. Increase the time members spend together

4. Increase the status of the group and the perceived difficulty of getting membership of the group

5. Stimulate competition with other groups.

6. Give rewards to the group rather than to members.

7. Physically isolate the group

8. Increase membership homogeneity

9. Increase interaction among members

Managerial Actions to Decrease or Discourage Cohesiveness:

Sometimes high cohesiveness adversely affects the productivity. In such cases managers have to reduce the cohesiveness
of the groups.

Following are some of the actions which can be taken by the managers:
1. Induce disagreement on group goals

2. Increase membership heterogeneity

3. Restrict interactions among members

4. Increase group size

5. Reduce the time members spend together

6. Allocate rewards to individuals rather than to group member.

7. Remove physical isolation

8. Disband the group

9. Introduce a dominating member

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Major factors influencing group cohesiveness: (1) Similarities of Attitudes and Values, (2) Size of the Group, (3) Time,
(4) Location, (5) Status, (6) Difficulty in Entry, (7) Inter Dependency, (8) Management Behaviour, (9) Member Turnover,
(10) Threat, (11) Previous Successes and Shared Goals, and (12) Cooperation.

Group Dynamics
The word dynamics means force. Group dynamics means the study of forces within a group. Since human beings have
an innate desire for belonging to a group, group dynamism is bound to occur. In an organization or in a society, we can
see groups, small or large, working for the well-being.

Group dynamics deals with the attitudes and behavioural patterns of a group. Group dynamics concern how groups are
formed, what is their structure and which processes are followed in their functioning. Thus, it is concerned with the
interactions and forces operating between groups.

The social process by which people interact with each other in small groups can be called group dynamism. A group has
certain common objectives and goals and members are bound together with certain values and culture.

In organizational development, group dynamics refers to the understanding of behaviour of people in groups that are
trying to solve a problem or making a decision. A good manager can act as a facilitator and assist the group in
accompanying its objectives and arrive at correct decisions.

Because people gather in groups for reasons other than task accomplishment, group process occurs in other types of
groups such as personal growth groups (e.g., encounter groups, study groups, prayer groups). In such cases, an individual
with expertise in group process can be helpful in the role of facilitator.

There are 3 views about group dynamics:

1. First view describes how a group should be organized and conducted, stressing more on democratic leadership and
members participation.

2. Second view describes the techniques used in group dynamics, for instance, role playing, leaderless groups,
brainstorming, group therapy, transactional analysis etc.

3. Third view describes group dynamics from the perspective of internal nature of groups; the structure, processes,
reasons and methods of their formation, their influence within the group, with other groups and with the organization.

Importance of Group Dynamism:

1. The group can influence the thinking of its members. The members are always influenced by the interactions of other
members in the group.

2. A group with a good leader performs better as compared to a group with weak leader.

3. The group can give the effect of synergy, that is, if the group consists of positive thinkers then its output is more than
the double every time.

4. Group dynamism can give job satisfaction to the members.

5. The group can also bring team spirit among the members.

6. Even the attitude, perceptions, and ideas of members depend on group dynamism. For example, the negative thinkers
can be converted to positive thinkers with the help of the facilitator.

7. If the group works as a cohesive group, the cooperation and convergence can result in maximization of productivity.

8. Lastly, group dynamism can reduce the labour unrest and labour turnover due to emotional attachment among the
group members.

Groups exist in every organization and it is believed that an organization will function best when its personnel function
not as individuals but as members of highly effective work groups with high performance goals.

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As groups are essential for organizational functioning, they are either created by the organization itself in order to
facilitate division of labour for achieving its sub-goals and ultimately its ultimate goal or groups are created
automatically, as a result of the socio-psychological factors at the workplace. The study of group dynamics provides
understanding of groups.

The term group dynamics is formed by the combination of the two words group and dynamics. While group refers
to two or more individuals sharing an explicit socio-psychological relationship, dynamics refers to the forces within the
group that shape the patterns of interaction between group members i.e., the power or capacity of a group member to
change or influence change in other members according to changed circumstances.

Dynamics of informal Groups:

Informal groups almost always arise if opportunities exist. If management prescribes production norms that the group
considers unfair, the groups recourse is to adopt less demanding norms and to use its ingenuity to discover ways in which
it can sabotage managements imposed standards. Thus they counteract the tendency of the organization to get more
output from the workers.

Informal groups have a powerful influence on the effectiveness of an organization. But the informal groups role is not
limited to resistance. The impact of the informal group upon the larger formal group depends on the norms that the
informal group sets. So the informal group can make the formal organization more effective, too.

A norm is an implied agreement among the groups membership regarding how members in the group should behave.
From the perspective of the formal group, norms generally fall into three categories-positive, negative, and neutral, In
other words, norms either support, obstruct, or have no effect on the aims of the larger organization.

For example, if the informal group in Jeffs shop set a norm supporting high; output, that norm would have been more
powerful than any attempt by Jeff to force compliance with the standard. The reason is simple, yet profound.

The norm is of the group members own choice, and is not one imposed upon them, There is a big motivational difference
between being told what to do and being anxious to do it.

If Jeff had been aware of group dynamics, he might have realized that informal groups can be either his best friend or his
worst enemy. He should have been sensitive to the informal groups within his area and he should have cultivated their
goodwill and cooperation and made use of the informal group leadership.

That is, he should have wooed the leadership of the informal group and enlisted the support of its membership to achieve
the formal organizations aims.

For harnessing the power of informal groups one should have:

1. An understanding of group dynamics and,

2. An ability to bring about changes in informal group norms that positively reinforce the formal organizations goals.

Formation of Informal Work Groups:

Individuals are employed by an organization to perform specific functions. The organization is only concerned with the
job done by an individual-the output. Because people have needs that extend beyond the work itself, informal groups
develop to fill certain emotional, social, and psychological needs. The degree to which a group satisfies its members
needs, determines the limits within which individual members of the group will allow their behavior to be controlled by
the group.

Sense of Belonging:
Several major functions are served by informal groups. For example, the group serves as a means of satisfying the
affiliation needs of its members for friendship and support. People need to belong, to be liked, to feel a part of something.
Because the informal group can withhold this attractive reward, it earns the power to exploit group members to comply
with its norms.

Identity and self esteem:

Groups also provide a means of developing, enhancing, and confirming a persons sense of identity and self-esteem.
Although many organizations attempt to recognize these higher needs, the nature of some jobs-their technology and

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environment-precludes this from happening. The long assembly line or endless rows of desks reinforce a feeling of
depersonalization.

Stress Reduction:
By developing a consensus about their feelings, group members are able to reduce the anxiety associated with their jobs.
For instance, several individuals may share the feeling that their supervisor is a slave driver or that their working
conditions are inadequate.

All for One, One for All:

Joining forces in a small group makes the members feel stronger, less anxious, and less insecure in the face of a perceived
threat. As long as needs exist that are not served by the formal organization, informal groups will form to fill the gap.
Since the group fills many important needs for its members, it influences member behavior.

Leadership of Informal Work Groups:

Informal groups possess certain characteristics that can be used to advantage. While many of these characteristics are
similar to those of formal organizations, others are unique. One attribute of informal groups is rotational leadership.

The informal leader emerges as the individual possessing qualities that the other members perceive as critical to the
satisfaction of their specific needs at the moment; as the needs change so does the leader. Only rarely does a single
individual possess all of the leadership characteristics needed to fill the various needs of the group.

Unlike the formally appointed leader who has a defined position from which to influence others, the informal leader does
not possess formal power. If the informal leader fails to meet the groups expectations, he or she is deposed and replaced
by another.

The supervisor can use several strategies to affect the leadership and harness the power of informal groups. One quick and
sure method of changing a group is to cause the leader to change one or more of his or her characteristics. Another is to
replace the leader with another person.

One common ploy is to systematically rotate out of the group its leaders and its key members. Considering the rotational
nature of leadership, a leader may emerge who has aims similar to the formal goals of the organization.

The supervisor can attempt to co-opt informal leaders by absorbing them into the leadership or the decision-making
structure of the formal group and thereby make the formal organizations more stable. However, a leader may lose favor
with the group because of this association with management, and group members will most likely select another leader.

Communications Networkthe Grapevine:

In the informal group, a person who possesses information vital to the groups functioning or well-being is frequently
afforded leadership status by its members. Also, the centrally located person in the group is in the best position to
facilitate the smooth flow of information among group members.

Knowing about informal group communication the supervisor can provide a strategically placed individual with
information needed by the group. This not only enhances the stature of this individual perhaps elevating him or her to a
leadership position but also provides an efficient means of distributing information.

Providing relevant information to the group will also help foster harmony between the supervisor and the informal group.
By winning the cooperation of informal group leaders the supervisor will most likely experience fewer grievances and
better relationships.

Informal Group:
In every organisation along with formal groups there exists informal groups which emerge naturally due to the response
and common interests of the members who can easily identify with the goals or independent activities of the informal
groups.

Sometimes the efforts may be driven by a common goal that may compliment or work against the goals of the formal
group. An informal group can be defined as a group that evolves spontaneously, not shown in the organizations structure,
with the objective of fulfilling personal and social need of its members.

Informal Group Vs Informal Organisation:

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An informal group is a voluntary group of people casually acquainted with each other for their own personal fulfillment
because they have some common and shared backgrounds, characteristics and concerns (values / interests / hobbies /
friendship).

Whilst it is easy to differentiate between a formal group and a formal organisation, the differences between informal
group and informal organisation tend to be difficult. The difference between informal organization and informal group is
that informal organisation is a larger entity consisting of all informal groups in an organization.

Informal Organisation= Sigma Informal Groups:

An informal group is the nucleus of informal organization. When an informal group adopts a formally defined structure
and group processes, it no longer remains an informal group.

Informal Group vs. Formal Group:

The two are different in very many ways.

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Characteristics of Informal Groups:
1. Creation:
It is not created by the organisation but springs up spontaneously.

2. Satisfaction of Needs:
The needs which cannot be satisfied within the framework of formal organisation, like social and psychological needs of
people, such people create informal groups.

3. Voluntary Membership:
Nobody is compelled to join an informal organization.

4. Multi-Group Membership:
A member of an informal group can be a member of more than one informal group to pursue different interests.

5. Systems and Processes:

Members of such groups follow their own norms, leadership, communication, etc. to remain cohesive. The
communication channels are referred to as Grapevine. Grapevine i.e., informal channel runs very fast to spread the
information across the organization.

6. Leadership:
Every informal group has a leader, selected by the group, and who is capable of helping to realize their goals. The
moment it is realized that the leader is incapable, (s) he is replaced with a new leader.

Reasons for the Emergence of Informal Groups:

1. People working together may come together.

2. People with similar values, beliefs, attitudes, and interests often feel attraction to come together.

3. Need satisfaction to belong, to associate, etc.

4. Removal of monotony of routine tasks to get rid of monotony and psychological fatigue, job-related boredom and
frustration provides an opportunity to behave in a natural and relaxed manner.

5. Promotion of other interests and pursuit of goals People join Rotary or Lions Club to expand their contacts which
may help them to satisfy their personal goals.

Benefits of Informal Groups:

The benefits of an informal group are as follows:
1. Blending with formal group allows people to work for the formal organisation.

2. Informal work group lightens the workload for the formal manager.

3. Brings satisfaction and stability to the organisation as a whole.

4. Provides a useful channel of communication.

5. Encourages managers to plan and act more carefully.

Limitations of Informal Groups:

The limitations are as follows:
1. Resistance to Change because they do not want to deviate from existing norms and learn new ways.

2. Informal group provides most fertile ground for Rumour Mongering because of maliciousness, lack of proper
communication systems and processes and ambiguous circumstances.

3. Since a member of an informal group is also a member of a formal group, at times it creates role conflict.

4. Creativity of group member (s) is restricted because of strong pressure for conformity applied by the group.

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3. Power
Power is defined as "the ability to influence and control anything that is of value to others." It is the ability to influence
the behaviour of other people in the organization and to get them to do what they otherwise would not have done.

Power is the ability to effect a change in an individual or a group in some way. Power may or may not be legitimate. That
is, power need not correspond with a person's organizational position.

The term power is generally taken to be the capacity of a person to exert influence over others. If a person has power, it
means he is able to influence the behaviour of other individuals. The essence of power lies in having control over the
behaviour of others. The traditional concept of power was that Power corrupts and absolute power corrupts absolutely.
But now this concept has changed. Power is not considered bad always. Power has become a natural process in any group
or organisation.

According to the famous sociologist Max Weber, Power is the probability that one actor within a social relationship
will be in a position to carry out his own will despite resistance.

According to Pfeffer, Power is the potential ability to influence behaviour to change the course of events, to overcome
resistance and to get people to do things that they would not otherwise do.

A very understandable definition of power is that power is to be treated as a capacity that A has to influence the behaviour
of B, so that B does something he or she would not otherwise do.

This definition implies:

(i) A potential that need not be actualized to be effective
(ii) A dependent relationship and
(iii) The assumption that B has some discretion over his or her own behaviour.

Sources of Power in Organisation

Two major sources of power in organisation,
(1) Inter-Personal Sources, and (2) Structural Sources.

A. Inter Personal Sources:

Inter personal sources of power are based upon the inter personal relationships between the manager and the subordinate.
French and Raven had identified five general bases of power which are based upon interpersonal relationships.

These are:
1. Reward Power:
The extent of reward power depends upon the extent to which one has control over rewards that are valued by another.
The greater the perceived value of such rewards, greater will be the power. People comply with the wishes or directives of
others because doing so produces positive benefits. These rewards can be extrinsic in nature with tangible values or these
can be subjective and intrinsic rewards such as recognition and praise. In organisational contexts the different forms of
rewards can be better pay, promotions, favourable performance appraisal, preferred work shifts, etc.

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2. Coercive Power:
The opposite of reward power is the coercive power; which is the ability to influence punishment. Fear of punishment
may make the subordinate execute the instructions of the boss. Coercive power reflects the extent to which a manager can
deny desired rewards or administer punishment to control other people.

3. Expert Power:
Expert power is based on the perception or belief that the influence has some relevant expertise or special knowledge that
others do not have. It is more of a personal power rather than organisational power. If the subordinates view their leaders
as competent, they would follow their leader. For example, we believe in our doctors or tax consultants advice because
we believe in their knowledge and competence in these specified areas. In organisations, because of technological
developments, jobs have become more specialized. As a result, employees become more dependent on experts to achieve
their goals.

4. Legitimate Power:
This power is also known as positional power because of authority inherent in the position. It represents the power a
person receives as a result of his position in the formal hierarchy of the organisation. It exists when an influence
acknowledges that the influencer is lawfully entitled to exert influence. The influence is under obligation to accept this
power. Legitimate powers include coercive and reward powers, though these powers are broader than the power to coerce
and reward.

5. Referent Power:
This power is known as charismatic power and is based upon the attraction exerted by one individual over another. This
power develops out of admiration of another and a desire to be like that person. This power is more of a personal nature
than the positional nature because this power is not acquired because of a position but because of personal charisma so
that the followers would like to associate themselves with the leader.

The stronger the association, the stronger is the power. In simple words, the subordinate would obey his senior, because
he wants to behave in the same manner as the superior and the subordinate identifies himself with the superior. This
power generally extends to film stars and celebrities whose followers and fans follow them in whatever they do.

B. Structural Sources of Power:

In addition to the interpersonal powers, there is another dimension of power. This dimension involves structural
sources within the organisation such as:
1. Knowledge:
Knowledge is a very important source of power. The individuals or groups who possess critical knowledge are assumed to
be very powerful people in the organisation. People who are in a position to control the information itself or the flow of
information about current operations or future events and plans have enormous power to influence the behaviour of
others.

2. Resources:
Organisations cannot survive without the adequate availability of all the necessary resources. These resources include
man, money, materials, equipment etc. Any person who can provide resources that are critical in the organisation acquire
such power. The old saying that he who has the gold makes the rules sums up the idea that resources are power.

3. Decision Making:
Another source of power is the authority to make decisions and/or the ability to influence the decision makers. Of course,
the final decision maker has the ultimate power, but sometimes the real power may be with those who strongly influence
the decision maker. For example, if the leader takes the decisions on the advice of a task force, the task force, the task
force holds the decision making power in a very subtle way.

Bacharach and Lawler feel that while explaining the interpersonal sources
of power, French and Raven have confused the bases of power with sources of power which has led to overlapping. For
proper understanding it is essential to distinguish between the source and bases of power. The term source of power
denotes where the power holder gets his power base I. e how a person happens to control his base of power.

There are four sources of powers:

1. Position Power because of position in the organisation.

2. Personal Power i.e. influence attributed to ones personal characteristics.

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3. Expert Power i.e. control over specialized information. Those who have expertise in terms of specialized information
and skills can use it to influence others.

4. Opportunity Power i.e. the opportunity to receive and obstruct information. The power holder is in the right place at the
right time to have opportunity power.

Acquisition of Power:
Every manager has a two dimensional power base. The first is the positional power by virtue of the status in the
organisation and the personal power because of personal characteristics and knowledge. A successful manager is that who
has built up high positional as well as personal power base. The factors which influence the acquisition of power are as
explained below.

A. Acquisition of Positional Power:

Whetton and Cameron have proposed some of the factors for building and enhancing positional power.

These factors are:

1. Centrality:
Centrality refers to those activities that are most central to the work flow of the organisation. The manager will acquire
positional power if the information filters through him. This will give him some say in the work of many sub units. For
example, the finance manager approves all the expenses and the payments to all the departments of the organisation. This
gives him an extra power base to affect the behaviour of other departments.

2. Scarcity:
When resources in the organisation are scarce, then there will be a struggle in the different departments for acquiring
these resources. Whosoever is the winner of the struggle, will acquire power. Power will become apparent only when the
resources are scarce. When the there is abundance in the organisation of different types of resources. Scarcity will not be
a factor to judge the power.

Salanick and Pfeffer have concluded from a study conducted in a university that the power of academic departments was
associated with their ability to obtain funds from research grants and other outside resources and this was more critical to
their power than was the number of undergraduates taught by the department.

3. Uncertainty:
Uncertainty about future events can play havoc with the plans of different departments. Uncertainty may relate to
reduction in supply of resources, fall in demand of companys products, change in government policies etc. The managers
who are able to cope with such uncertainty and who can gain from such uncertainty can acquire power.

According to Kanter, The most power goes to those people in those functions that provide greater control over what the
organisation finds currently problematic, sales and marketing people when markets are competitive, production experts
when materials are scarce and demand is high, personnel or labour relations specialists when labour is important, lawyers,
lobbyists and external relations specialists when government regulations impinge, finance and accounting executives
when business is bad and money tight. There is a turning to those elements of the system that seem to have the power to
create more certainty in the face of depending and to generate a more advantageous position for the organisation.

4. Substitutability:
The more valuable a person is to the organisation, the greater power he holds. There are some people in the organisation,
whose contributions are so much, that they become indispensable. This indispensability may be the result of their
specialty, expertise and knowledge which cannot be substituted easily by others. Any change in the marketability of such
specialty will change the power base as well. Even though philosophy says that Nobody is indispensable, but in
practice, some people are comparatively more indispensable than others.

B. Acquisition of Personal Power:

Personal power can be acquired and enhanced by enhancing individual traits. The following factors may be considered in
this context;

1. Expertise:
A manager can enhance or acquire personal power through the expertise. Expertise can be gained by possession of special
knowledge which can be gained by education, training and experience. Expertise can also be gained by information
gained by having access to data and/or people. Power, though can be acquired through expertise, but to maintain it or to

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enhance it the managers must make sure that there is a critical need in the organisation for their knowledge and skills that
cannot be conveniently obtained elsewhere.

2. Referent Power:
Referent power contributes to a large extent to the personal power of the manager. The manager should have a charisma
that attracts the subordinates to him and make them follow him in every way. Pleasant personality characteristics,
agreeable behaviour patterns and attractive postures enhance referent power.

3. Hard Work:
A person who is hard working and sincere in his efforts will have more personal power because of this expertise and
reference. A hard working person is perceived to know more about the job and thus, most sought out for advice. A sincere
person is always respected by the subordinates. Subordinates, generally, depend upon a hard working and sincere
manager.

Tactics Used To Gain Power in an Organizations

1. Bargaining:
Bargaining is the use of negotiations through the exchange of benefits or favours. The party having greater bargaining
power is able to get more benefits than the sacrifices made. Collective bargaining agreements between labour and
management are the result of negotiations.

2. Friendliness:
A person can gain power over another person by the use of flattery, creation of goodwill, acting humble and being
friendly prior to making a request.

3. Coalition:
Coalition is the temporary alliance of two or more individuals or groups who combine their efforts and energy for the
common goal. By forming a coalition, the members are able to increase their power over groups not in their coalition.
Coalitions are generally used in organisations for having influence on setting of goals and distribution of benefits to the
constituents.

4. Competition:
Due to the scarcity of the resources in the organisation, various groups compete with each other to have a greater share of
such resources. For this, they try to influence the criteria used as the basis of resource distribution in the form of funds,
space, support staff etc. Each group argues for those criteria which are likely to fetch it more power.

5. Cooptation:
Under the scheme of cooptation a group gives some of its important positions of members of the other groups or includes
them in its policy making committee. Hence the criticism and threats from those other groups are blunted. For example,
corporations generally include representatives of the financial institutions in their board of directors, in order to maintain
stable relationships with the financial institutions.

6. Reason:
A person can use reasoning to gain power over others. Reasoning consists of use of facts and data to make a logical or
rational presentation of ideas.

7. Assertiveness:
Assertiveness is the use of a direct and forceful approach. The manager may demand strict compliance with requests
repeating orders, ordering individuals to do what is asked and pointing out that rules require compliance.

8. Higher Authority:
Some managers may gain the support of higher levels in the organisation to back up their requests to their subordinates.

9. Sanctions:
Sanctions consist of traditional reward and punishment method. A person can gain power over another person by
preventing or promising a pay rise, by demoting or promoting a person or by threatening to give an unsatisfactory
performance appraisal.

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10. Pressure:
Pressure tactics are a part of power struggle in modern organisations. It is a hostile method of gaining power. For
example, the trade unions may threaten strikes if their demands are not met by the management. On the other hand,
management may threaten a lock out in the factory, if the trade unions do not accept its terms.

Politics
Politics can be defined as the pursuit of individual agendas and self-interest in an organization without regard to their
effect on the organization's efforts to achieve its goals.

Organizational politics is often called 'power in action.' Politics may be legitimate (within sanctioned organizational
limits) or illegitimate (exceeding sanctioned organizational limits) in nature. The degree of politicking engaged in
depends on individual as well as organizational factors. Individual politicking is a function of the person's power motive,
personality factors and background, and current work environment. Organizational politicking is a function of culture,
goal and role clarity and the attitude of top management.

Politics is inseparable from organizations. This is obviously because of the involvement of people in organizations. And
involvement of a large number of people cannot but lead to politics. Organizations over-run by politics are typically
identified by the type of managerial decisions, which encourage hypocrisy, secrecy, deal-making, rumours, power
brokers, self-interests, image building, self-promotion, and cliques. These organizations lack in effective teamwork.

Politics in points-

Employees who do not believe in working hard depend on nasty politics to make their position secure at the
workplace.
Employees play politics simply to come in the limelight and gain undue attention and appreciation from the
seniors.
Politics refers to irrational behaviour of the individuals at the workplace to obtain advantages which are beyond
their control.
Nobody has ever gained anything out of politics; instead it leads to a negative ambience at the workplace.

There are five possible reasons for organizational politics taking place:
1. Organizations are coalitions composed of varied individuals and groups.

2. There are enduring differences among individuals and groups in their values, preferences, beliefs, information, and
perceptions of reality.

3. The most important decisions in organizations involve the allocation of scarce resources.

4. Conflict is central to organizational dynamics, and power is the most important resource.

5. Organizational goals and decisions emerge from bargaining, negotiation, and jockeying for position among members of
different coalitions.

Besides causing problems for the individuals who work together, the end result of organizational politics can be far more
devastating. Employees and managers who must concentrate on the political aspects of work may have less time to pay
attention to their jobs. This translates into financial loss, which may in turn translate into job loss.

To reduce organizational politics, managers and leaders make use of several strategies in their people-related decisions.
All these may minimize the levels of politics but cannot guarantee its total elimination, because politics is inherent in any
social form of togetherness of people.

Managers must emphasize on performance, making a culture of employee-rewards being earned and not granted as
favours. Similarly, promotions and pay-rise decisions should be aligned to transparent performance management systems,
making people believe that the system is impersonal and reliable.

A very strong weapon to reduce organizational politics is to nurture transparent communication systems. We have a
proverb secrets keep organizations sick. Everything that affects the workplace should be made transparent to dissuade
employees from cooking stories and spreading rumours and to restrain them from deal-making and favouritism.

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Thus, organizational politics can be reduced if organizations follow the principles indicated below:
1. Transparently measure performance of its employees.
2. Make payments strictly on the basis of the performance so measured.
3. Publicize performance data.
4. Reveal the reasons for decisions.
5. Openly consider all good ideas.
6. Shun deal-making.
7. Shun secret deals.
8. Avoid all political behaviour.
From the corporate world, we have many good examples of leaders who successfully managed workplace politics. Jack
Welch, former head of GE, was one of the most impressive political players. His slogan was: Control your destiny or
someone else will. He chose people to push through changes and weed out resisters. He replaced GEs ornate structure
with a cartwheelthirteen spokes of business units radiating from his office, reminiscent of the kingdoms model.

Effects of politics on organization and employees:

1. Decrease in overall productivity
Politics lowers the output of an individual and eventually affects the productivity of the organization.
Common observation says that individuals who play politics at the workplace pay less attention to their
work.
They are more interested in leg pulling and back biting. They spend most of their times criticizing their
fellow workers.
As a result of politics at the workplace, employees fail to achieve targets within the stipulated time frame.
Work gets delayed in such an organization.
2. Affects Concentration
Individuals find it difficult to concentrate on their work. They are more interested in spoiling the other
persons image in front of the superiors.
An individual involved in politics is bound to make more mistakes as his focus is somewhere else.
3. Spoils the Ambience
Politics leads to a negative environment at the workplace.
It spoils the relationships amongst individuals. An individual playing politics at the organization is
disliked by all.
4. Changes the Attitude of employees
Politics changes the attitude of the employees.
Even the serious employees lose interest in work and attend office just for the sake of it.
Internal politics do not allow employees to give their hundred percent at work.
No matter how much hard work an employee puts in, it goes unnoticed in a politically driven
organization.
5. Demotivated employees
A non performer can be the apple of his bosss eye simply due to politics, thus demotivating the
performers.
Discussions are essential at the workplace to extract the best out of employees. Evaluating the pros and
cons of an idea always helps in the long run. Employees playing politics always look for an opportunity
to tarnish the image of the fellow workers.
Employees feel demotivated when they are not rewarded suitably or someone who has not worked hard
gets the benefits due to mere politics.
6. Increases Stress
It is rightly said that problems evaporate if discussed. Individuals find it difficult to confide in any of their
fellow workers due to the fear of secrets getting leaked.
Politics increases the stress level of the employees. Individuals are not machines who can work
continuously for 8-9 hours without talking to others. It is important to have friends at the workplace who
help you when needed.
Individuals fail to trust each other.
7. Wrong Information
Employees indulged in politics manipulate information and it is never passed on in its desired form.
Superiors get a wrong picture of what is actually happening in the organization.
A wrong person walks away with the credit in an organization where employees are indulged in politics.

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4. Reward System
Reward means a thing given to any one because of his contribution to organization. Rewards and incentives contribute to
strategy implementation by shaping individual behaviour in the organization. A well design reward system is consistent
with organizational goals, visions, and missions and job performance. The most obvious reward that individual gets from
the job is in the form of pay.

In managerial term, reward is defined as the total return given by an employer to an employee for rendering his/her
services towards the organizational objectives. This is the overall return from the work. Every person asks for return from
the organization before involving in any type of activities, which is termed as the reward. It attracts a worker's attention
and inspires him/her to perform the task. Moreover, a reward is a pay-off for performance which is directly concerned
with the level of motivation and job satisfaction.

Therefore, management of reward in an organization helps to motivated and retain employees at work. It is a vital aspect
of HRM because a well-designed reward system will lead towards organizational productivity and employees
satisfaction. Moreover, reward management is the process of creating, implementing and controlling an effective reward
system in the organization that helps to maintain and improve organizational performance. It senses the strategic purposes
of attracting, motivating and retaining employees. Reward management basically focuses on how the employees can be
retained or motivated at work.

Hence, reward management is a crucial aspect of Human Resource Management that revolves around designing and
implementation of appropriate pay system. This system helps improve organizational performance and get people
motivated at work.

Types of Rewards
Reward is pay provided by an employer to the employees. It consists of packages of pay, benefits, services etc. Broadly,
rewards can be divided into following types:

1. Intrinsic Rewards and Extrinsic Rewards

Intrinsic rewards:
Intrinsic rewards are the satisfactions that an individual obtains from the job itself. It means, they are the factors of esteem
and self actualization needs of the employees. These satisfactions are self initiated rewards and are fulfilled internally by
the employees. These rewards consists of having a pride on work, having a feeling of accomplishment, or being a part of
team etc.

Extrinsic Rewards
Extrinsic rewards are the benefits provided externally. These rewards are provided in term of money and fringe benefits.
These rewards are necessary to fulfil physiological and safety needs of the employees. Such rewards are the results of
management policies and procedures of the organization.

2. Financial Rewards and Non-financial Rewards

Financial Rewards
Financial rewards mean those direct and indirect payments that enhance an employee's well being. Financial rewards
make employee financially sound so that he/she can fulfil his/her material desire. Direct payment consists of salary,
wages, commissions, incentives, bonus, allowances etc. Indirect payment include pensions, medical insurance, paid
leaves, paid sick leaves, purchases, discounts etc.

Non-financial Rewards
Non-financial rewards are those employee benefits that do not enhance an employees financial well-being However,
such rewards provide more job satisfaction. Preferred lunch hours, preferred office furnishing, parking spaces, impressive
job title, desired work assignments, business cards, own secretary etc. are some of its examples.

3. Performance Based Rewards and Membership Based Rewards

Performance Based Rewards
Performance based rewards are such benefits which are provided on the basis of an employees job performance ability.
The reward depends upon the performance of an individual in the actual work floor. These rewards are exemplified by the
use of commissions, piece work pay plans, incentive systems, group bonuses or other forms of merit pay plans.

Membership Based Rewards

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Membership based rewards are those rewards that are paid on the basis of being a member of an organization. It means,
the basis of allocating rewards is employee's organizational membership. Hence, the reward goes to all employees
irrespective of their performance.

Qualities Of An Effective Reward System

An effective reward management system is essential for high satisfaction and motivation of employees at work. It is
concerned with the process of employee attraction, motivation and retention. Therefore, an effective reward system
should possess the following qualities.

1. Importance
An utmost care should be given towards the management of reward system because the employees should feel that reward
is important for them. No reward is equally important for all employees. Hence, they should be rewarded with what they
feel is important for them.

2. Equitable
Equitable is concerned with the fairness in distributing rewards to the employees. It means rewards should be perceived as
equitable and fair. The fairness can be among the organization's employees in one hand and fairness relative to what
people get for the similar job in another organization, on the other.

3. Visibility
Rewards, to be effective, must be visible and seen by the employees. Because visible rewards helps to motivate
employees for higher level of performance. They help to satisfy individual's esteem and recognition needs.

4. Flexibility
Rewards, to be effective, should be flexible to vary with changes in the performance. This means, rewards should vary as
per the changes in actual performance of the employees.

5. Low Cost
An effective reward should be less costly because rewards are not free gifts they have some costs. Hence, the costs and
benefits of reward should be taken into account in order to maintain organizational effectiveness.

6. Use Of Team Rewards For Interdependent Job

An interdependent job holds the philosophy that the tasks are interrelated with each other, and is performed step-by-step.
The overall completion of such jobs is not the credit of single individual; rather it is due to the combined effort of all team
members involving in the entire process of the job. Hence, in such situation it is advisable to use team rewards such as
gain sharing and bonuses.

Motivation
The term motivation has been derived from the word motive. Motive may be defined as an inner state of our mind that
activates and directs our behaviour. It makes us move to act. It is always internal to us and is externalized via our
behaviour. Motivation is ones willingness to exert efforts towards the accomplishment of his/her goal.
Fred Luthans defined motivation as a process that starts with a physiological or psychological deficiency or need that
activates behaviour or a drive that is aimed at a goal or incentive.

According to Stephen P. Robbins motivation is the willingness to exert high levels of efforts toward organisational
goals, conditioned by the effort ability to satisfy some individual need.

Importance of motivation:
The need for and importance of motivation can be imbued with multiplicity of justifications as follows:
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1. Organisations are run by people. Hence, mangers cannot afford to avoid a concern with human behaviour at work. This
is because the motivated employees are more productive and quality- conscious than apathetic ones.

2. Motivation as a pervasive concept affects and is also affected by a host of factors in the organisational milieu. It
enables managers to understand why people behave as they behave.

3. Organisational effectiveness becomes, to some extent, the question of managements ability to motivate its employees.
Hence, an appreciation of motivation helps the managers how to motivate their employees.

4. Machines become necessary in case of complex technology. However, these remain inefficient vehicles of effective
and efficient operations without man to operate them. Therefore, organisations need to have employees with required
capability and willingness to use the advanced complex technology to achieve the organisational goal.

5. With the realisation that organisations will run in more complex milieu in future, an increasing attention has been given
to develop employees as future resources (a talent bank). This facilitates the managers to draw upon them as and when
organisations grow and develop.

Some Theories of Motivation

1. Maslows Need Hierarchy Theory:

Maslows theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs
into a hierarchical manner from the lower to the higher order. In essence, he believed that once a given level of need is
satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate
the man. Maslow identified five levels in his need hierarchy as shown in figure-

1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These
needs relate to the survival and maintenance of human life. They exert tremendous influence on human behaviour. These
needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no
longer motivate the man.

2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find
expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more
money and, hence, the individual is prompted to work more. Like physiological needs, these become inactive once they
are satisfied.

3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is this
socialising and belongingness why individuals prefer to work in groups and especially older people go to work.

4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement,
competence, knowledge and independence. The fulfilment of esteem needs leads to self-confidence, strength and
capability of being useful in the organisation. However, inability to fulfil these needs results in feeling like inferiority,
weakness and helplessness.

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5. Self-Actualisation Needs:
This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other words, the
final step under the need hierarchy model is the need for self-actualization. This refers to fulfilment.

The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good
at. In effect, self- actualization is the persons motivation to transform perception of self into reality.

2. Herzbergs Motivation Hygiene Theory:

The psychologist Frederick Herzberg extended the work of Maslow and proposed a new motivation theory popularly
known as Herzbergs Motivation Hygiene (Two-Factor) Theory. Herzberg conducted a widely reported motivational
study on 200 accountants and engineers employed by firms in and around Western Pennsylvania.

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical incident method of obtaining data.

The responses when analysed were found quite interesting and fairly consistent. The replies respondents gave when they
felt good about their jobs were significantly different from the replies given when they felt bad. Reported good feelings
were generally associated with job satisfaction, whereas bad feeling with job dissatisfaction. Herzberg labelled the job
satisfiers motivators, and he called job dissatisfies hygiene or maintenance factors. Taken together, the motivators and
hygiene factors have become known as Herzbergs two-factor theory of motivation

Herzbergs motivational and hygiene factors have been shown in the Table-

According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying reason, he says, is that removal
of dissatisfying characteristics from a job does not necessarily make the job satisfying. He believes in the existence of a
dual continuum. The opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no
dissatisatisfaction.

According to Herzberg, todays motivators are tomorrows hygiene because the latter stop influencing the behaviour of
persons when they get them. Accordingly, ones hygiene may be the motivator of another.

However, Herzbergs model is labeled with the following criticism also:

1. People generally tend to take credit themselves when things go well. They blame failure on the external environment.

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2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a person may dislike part of his/ her job,
still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Because of its ubiquitous nature, salary commonly shows up as a motivator as well as hygine.

Regardless of criticism, Herzbergs two-factor motivation theory has been widely read and a few managers seem
untaminar with his recommendations. The main use of his recommendations lies in planning and controlling of employees
work.

3. McGregors Participation Theory:

Douglas McGregor formulated two distinct views of human being based on participation of workers. The first basically
negative, labeled Theory X, and the other basically positive, labled Theory Y.

Theory X is based on the following assumptions:

1. People are by nature indolent. That is, they like to work as little as possible.
2. People lack ambition, dislike responsibility, and prefer to be directed by others.
3. People are inherently self-centered and indifferent to organisational needs and goals.
4. People are generally gullible and not very sharp and bright.
On the contrary, Theory Y assumes that:
1. People are not by nature passive or resistant to organisational goals.
2. They want to assume responsibility.
3. They want their organisation to succeed.
4. People are capable of directing their own behaviour.
5. They have need for achievement.
What McGregor tried to dramatise through his theory X and Y is to outline the extremes to draw the fencing within which
the organisational man is usually seen to behave. The fact remains that no organisational man would actually belong
either to theory X or theory Y. In reality, he/she shares the traits of both. What actually happens is that man swings from
one set or properties to the other with changes in his mood and motives in changing .environment.
4. Urwicks Theory Z:
Much after the propositions of theories X and Y by McGregor, the three theorists Urwick, Rangnekar, and Ouchi-
propounded the third theory lebeled as Z theory.

The two propositions in Urwickss theory are that:

(i) Each individual should know the organisational goals precisely and the amount of contribution through his efforts
towards these goals.

(ii) Each individual should also know that the relation of organisational goals is going to satisfy his/her needs positively.

In Urwicks view, the above two make people ready to behave positively to accomplish both organisational and
individual goals.

However, Ouchis Theory Z has attracted the lot of attention of management practitioners as well as researchers. It must
be noted that Z does not stand for anything, is merely the last alphabet in the English Language.

Theory Z is based on the following four postulates:

1. Strong Bond between Organisation and Employees
2. Employee Participation and Involvement
3. No Formal Organisation Structure
4. Human Resource Development
Ouchis Theory Z represents the adoption of Japanese management practices (group decision making, social cohesion, job
security, holistic concern for employees, etc.)by the American companies. In India, Maruti-Suzuki, Hero-Honda, etc.,
apply the postulates of theory Z.

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5. International Organisational Behaviour
International Organizational Behaviour focuses on understanding and managing organizational behaviour in an
international context, providing both the conceptual framework needed for a transcendent understanding of culture along
with plenty of practical advice for managing international challenges with organizational behaviour.

In today's increasingly diverse, multicultural business world, managers and employees alike need to transcend many
borders (literally or figuratively) and grasp a wide variety of cultural nuances on a routine basis. Doing this well requires
both a sophisticated understanding of cultural differences as well as a repertoire of skills and management tactics that can
be brought to bear to build and maintain a competitive global workforce.

International Organizational Behaviour is an important topic because it explains from a cross-cultural perspective the
effect of culture on the management and behaviour in organizations. Because of the rapid change in many societies and
consequently organizations within them, International OB is a dynamic area of study.

The international context of organizational behavior is becoming increasingly significant as organizations expand beyond
their national boundaries. Managers of multinational firms have to manage a variety of social, political and economic
environments as well as unique individual differences. The differences at the level of the individual include
individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity, which are different in
different countries.

Managers need to be sensitive to cultural differences across different countries to achieve their goals in the global
economy. The various aspects that differentiate cultures are people's perceptions, their relationship with their
environment, the time dimension, and the importance attached to public and private space. Differences between countries
in these cultural aspects affect the way business can be conducted across the globe. Employees who travel to a foreign
country for work find it difficult to adapt to the new culture because of factors like parochialism, ethnocentrism and
culture shock.

Although culture shock acts as a potential barrier to globalization, it can be overcome through careful selection, training
and assistance for employees on foreign assignments. Managerial leadership is the process of influencing others to
direct their efforts towards the achievement of specific goals. There are many factors that influence the way in which
managers lead their employees. Some of these factors include personal values, interpersonal skills, background and the
decision-making skills of the manager.

In some countries, the emphasis on production rather than productivity becomes a barrier to the improvement of the
performance of the organization. It is not possible to transfer business practices directly from one country to the other. It
is also not possible to use either the home country practices or the traditional practices of the host country. In such a
situation, the best approach for expatriate managers would be to operate within the scope of home office policies, after
adapting them to fit the culture of the host nation.

Theory Z is an example of an organizational approach that integrates American and Japanese management styles. The
traditional and conservative approach to leadership cannot be used for organizations with a global presence. Globally
competent managers have a good understanding of the worldwide business environment from a global perspective and try
to learn about various cultures in order to carry out business operations in different countries successfully.

Factors That Affect a Multinational Corporation

When thinking about the international business environment, concerns over economic, political, cultural, technological
and regulatory conditions of your target markets will always crop up. The dynamics of the international business
environment are driven by complex combinations of these factors. As such, it is always important to consider the
implications of country-specific investment climate when making operational and strategic decisions for a multinational
corporation.

Political Factors-
Political factors concern government policies, laws and administrative orientations of different countries and regional
economic blocks. The political factors form the basis for regulating international trade with respect to tariffs, quotas and
technical standards. For example, the European Union has regulations that guarantee preferential trade treatment for
member countries. Political stability is also an important aspect of the international business environment. Frequent
political unrest and military coups could force a multinational cooperation to suspend or close operations.
Economic Factors-
Rates of economic growth influence the levels of demand for your goods or services in international markets. However,
economic growth rates may be high in some countries and low in others. For example, the 2010-2012 Eurozone debt
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crisis slowed down economic growth in many European countries at a time when countries in other regions were
experiencing an economic boom. Consider such disparities of economic growth in the operational and planning activities
of a multinational corporation.
Technological Factors-
The availability of technological infrastructure and technical capacities determine the prosperity of a multinational
corporation in host countries. Factors such as broadband connectivity and technical training have become essential
ingredients of successful operations in the modern business world. Moreover, the levels of technological developments in
a given country determine the scope of technical understanding among its population. While it may be easier to establish
and maintain technical operations in high-technology countries, the same cannot be said of low-technology countries.
Social Factors-
Demographic factors such as religion and culture affect the types, quality, functional features and demand levels of your
products in international markets. Cultures attach different meanings to time, objects, names, color and attitudes. For
example, General Motors suffered low sales when it introduced the Nova car in Latin American markets because the car
name translated to it does not move in Spanish. Therefore, a multinational corporation must have the ability to interpret
and understand varying cultural cues and patterns that are characteristic of the international business environment.

Management of Transglobe Work Force

Increasing global competition, regulation and worker expectations are driving the need for global workforce management
among multinational and international manufacturers alike.

Multinational corporations have long felt pressure to control labor expenditures and improve productivity to avoid losing
business to foreign competitors with lower labor costs. Now, as local markets emerge, companies in developing nations,
such as India and China, find themselves fending off competition from surrounding nations with even lower labor costs.
Workforce management systems give manufacturers visibility into productivity and labor costs for production facilities
worldwide.

These challenges are compounded by the complexities of compliance with an ever-growing array of international labor
laws and growing employee expectations in developing economies. Global workforce management systems simplify
compliance by automating manual processes. In addition, by improving productivity, workforce management systems
help manufacturers grow so they can offer workers the greater opportunities, pay and benefits necessary to retain top
talent.

Yet successfully implementing a global workforce management solution requires that manufacturers understand and
manage the unique challenges of managing the global workforce.

Why is Global Workforce Management Challenging?

As manufacturers seek to implement global workforce management, they face three unique challenges: Cultural
differences, language and currency differences and regulatory variations.

Cultural Differences

Expectations for roles within the workplace have a significant impact on the success of a workforce management
implementation. For example, if a company's structure is strictly hierarchical, with rigidly defined roles and
responsibilities, empowering operators with decision making authority will deliver fewer benefits than in companies with
a more horizontal approach. Companies must align the tools they provide with their corporate culture or risk facing the
uphill battle of changing their culture before they can benefit from the tools. Since cultures can vary from one location to
the next within the same company, manufacturers must strike the right balance between standardization and localization.

Currencies and Languages

Workers and managers will need to interface with the workforce management system in the language of their choice. The
system should also enable manufacturers with operations across multiple countries to make "apples-to-apples"
comparisons of costs, productivity, and time. Because currency exchange rates fluctuate constantly, a global workforce
management system must incorporate real-time data from online currency transfer websites.

Regulatory Requirements

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 Complying with varied international regulations in a systematic manner to avoid fines and penalties is a daunting task.
The Fair Labor Standards Act in the U.S., the Factory Act in India and the Labor Law of the Peoples' Republic of China
all impact how employees work, and their rights surrounding pay and required reports. Yet these laws vary widely.
Understanding how these will impact staffing, time tracking as well as auditing and reporting requirements will reduce
compliance exposure. Automating compliance by embedding legal requirements into scheduling and payment processes
is the best way for manufacturers to ensure compliance and their ability to readily retrieve audit information.

Considerations When Implementing Workforce Management

The success of a global workforce management implementation will depend first and foremost on how well the
manufacturer understands their requirements and manages expectations. In particular, they must:

Understand their Environment and Culture

Before beginning a global workforce management implementation, manufacturers need to fully understand the legal and
business requirements for all countries of operation as well as the business processes they wish to automate.

Manufacturers must also be aware of cultural differences that will impact adoption. For example, workers may have some
interest in automating data entry, but too much automation may be seen as invasive and evidence of management
mistrust.

Be Realistic about the Rate of Change

The pace of system adoption is likely to differ from one location to the next. For example, manufacturers can't expect the
same results across India, China and the United States. They therefore need to develop change management processes and
set realistic expectations both locally and at corporate headquarters for how quickly they can implement workforce
management.

To understand a location's ability to change, it's necessary to understand its motivations. For example, in a joint
partnership between a private foreign company and a state-owned enterprise, the private company may focus on achieving
high productivity and low costs while the state's priority may be full employment. Up-front agreement on goals and
compromises will reduce time-to-value.

Change is Easier if Employees Share in the Benefits

Too often, companies implement systems for the right reasons, but don't educate employees on the reasons for the change
or take the time to identify or explain the expected benefits. This is particularly problematic for a workforce management
implementation because it often requires additional data collection, which can seem like unproductive work to an already
busy employee.

To successfully adopt workforce management, management needs to over communicate what they're doing, why they're
doing it and how employees will benefit. For example, if employees realize that understanding exact labor costs will
improve pricing practices, resulting in more business for the factory-and thus greater job security-most employees will
gladly cooperate.

What to Look for in Technology

When choosing a workforce automation system, manufacturers should look for a system that provides an immediate ROI
and is easy to use:

Fast ROI

Workforce management offers immediate ROI by enabling savings in the following areas:

Controlling Labor Costs -- A workforce automation system lowers costs from the first clock-in by eliminating payroll
inflation due to employee fraud. In addition, by automating complete payroll processes -- from gathering clock times to
approval processes to sending information to the payroll processor-the system eliminates the need for supervisors to make
interpretations that often favor employees and ensures strict compliance with corporate policies.
Improving Workforce Productivity -- The highly granular information a workforce automation system provides helps
managers spot waste in work processes so they can improve productivity. For example, a manager can see when workers
punch in and when they actually begin work. If the time lag is excessive, the manager can investigate possible causes-
perhaps workers spend too much time gathering tools before they can start work-and should implement a 5S program.
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 Minimizing Compliance Risk -- A global workforce management system can capture relevant regulatory requirements
up front and provide alerts to ensure that you comply with regulations consistently.

Ease of Ownership

A global workforce management system should be easy to localize, yet provide consolidated access to all information. An
exception-based system that requires supervisors to take action only when they need to make a decision leaves time for
more important activities. In addition, the system should be easy to operate and maintain without IT intervention
whenever a change is necessary.

As manufacturers achieve access to comparable material and transportation costs in a global economy, the quality and
efficiency of their workforce becomes one of their last sustainable competitive advantages. While managing people is a
tremendous challenge for any company, the right workforce management system can simplify the process dramatically.

Gregg Gordon is Senior Director, Industry Marketing at Kronos Incorporated. Kronos Incorporated is a provider of
workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve
workforce productivity.

Managing Cross-cultural Diversity: Issues and Challenges in Global Organizations

Due to globalization, many companies are now operating in more than one country. This crossing of geographical
boundaries by the companies gives the birth of multicultural organization where employees from more than one country
are working together. It may be true that companies are finding these expansions as attractive and lucrative but operating
and managing a global business is normally a lot tougher than managing a local company. The main reason for the
expansion of companies is to create global competitiveness by reducing production costs and exploiting market
opportunities offered by trade liberalization and economic integration. Effective knowledge and use of cross cultural
diversity can provide a source of experience and innovative thinking to enhance the competitive position of organizations.
However, cultural differences can interfere with the successful completion of organizational goals in todays multicultural
global business community. To avoid cultural misunderstandings, managers should be culturally sensitive and promote
creativity and motivation through flexible leadership.

Cultural diversity can be defined as, Cultural diversity is when differences in race, ethnicity, language, nationality,
religion, and sexual orientation are represented within a community. A community is said to be culturally diverse if its
residents include members of different groups. The community can be a country, region or city. Cultural diversity has
become a hot-button issue when applied to the workplace.

Why Culture Matters in International Business?

Effective handling of the cross-cultural interface is a critical source of a firms competitive advantage. Managers need to
develop not only empathy and tolerance toward cultural differences, but also acquire a sufficient degree of factual
knowledge about the beliefs and values of foreign counterparts. Cross-cultural proficiency is paramount in many
managerial tasks, including:

Developing products and services

Communicating and interacting with foreign business partners
Screening and selecting foreign distributors and other partners
Negotiating and structuring international business ventures
Interacting with current and potential customers from abroad
Preparing for overseas trade fairs and exhibitions
Preparing advertising and promotional materials

Organizations' ability to attract, retain, and motivate people from diverse cultural backgrounds, may lead to competitive
advantages in cost structures and through maintaining the highest quality human resources. Further capitalizing on the
potential benefits of cultural diversity in work groups, organizations may gain a competitive advantage in creativity,
problem solving, and flexible adaptation to change. Multi-cultural workforce is becoming the norm. To achieve
organizational goals and avoid potential risks, the managers should be culturally sensitive and promote creativity and
motivation through flexible leadership.

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6.Organisational Development
Organisational development is a technique used for bringing change in the entire aspect of the organisation, rather than
focusing attention on the individuals, so that change is readily absorbed.

Development is a continuous process and it accommodates in itself many changes that occur in science and technology,
economic, market, political environment, education, knowledge, values, attitude and behaviour of people, culture etc.
Organisation development is a part of overall development in general. It cannot remain unaffected by the developmental
process. The organisation has to change the beliefs, values and its structure to accommodate the new ideas, beliefs and
new technologies for progress. This is very essential. The organisation must respond to changes. So that it can face the
challenges ahead.

Organizational development is a strategy or an effort, which is planned and managed from the top, to bring about planned
organizational changes for increasing organizational effectiveness through planned interventions based on social
philosophy.

According to Dale S. Beach, organisation development (OD) is, a complex educational strategy designed to increase
organisational effectiveness and wealth through planned intervention by a consultant using theory and techniques of
applied behavioural service.

According to George R. Terry, Organisational development includes efforts to improve results by getting the best from
employees, individually and as members of working groups.

Organisational development is an effort:

(1) Planned

(2) Organisation wide and

(3) Managed from the top

(4) To increase organisation effectiveness and health

(5) Through planned intervention in organizations processes using behavioural science knowledge.

In a very comprehensive way, we can define organisational development as a planned, systematic, organised and
collaborative effort where behavioural science and organisation theory principles and practices are continuously applied
in order to increase the quality of life which is reflected in increased organisational health and vitality, enhanced
individual and group members competence and self worth and the general overall well being of society.

Thus, organisational development seeks to change beliefs, attitudes, values, structures and practices so that the
organisation can better adapt to technology and live with the fast pace of change.

Characteristics/Nature/Feature of Organizational Development:

1. Planned Change:
Organisational development (OD) is an educational strategy for bringing about planned change. Planned change concept
makes it different from other approaches for change in organisations.

2. Encompasses the Whole Organisation:

This change covers the entire organisation. Organisational Development is the development of the whole organisation so
that it can respond to change effectively. OD tends to ensure that all parts of the organisation are well coordinated in order
to solve the problems and opportunities that are brought by change.

3. Long Range Change:

OD is a long term process. It may take months or years to implement it. OD is never intended to be a stopgap arrangement
or measure.

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4. Systems Orientation:
OD is concerned with the various groups in the organisation and their interactions with each other. It is concerned with
formal as well as informal or social relationships. It is concerned with group structures, processes and attitudes. OD
emphasizes on the relationships among the groups not on the groups themselves.

5. Change Agent:
The services of outside experts are obtained, generally, to implement the OD process. In OD, Do it yourself
programmes are discouraged. When the primary change agent is a consultant from outside the organisation, he can
operate independently without ties to the organisational hierarchy and politics of the organisation. The personnel director
is the internal agent of the organisation who coordinates the programme with the management and the external agent.

As the external agent also works with the management, there is a three way relationship of the personnel director,
management and the outside consultant as they develop the OD programme. Very rarely, an internal change agent is used
by the organisation, who usually is a specialist on the personnel staff.

6. Problem Solving:
OD emphasizes on problem solving rather than just theoretical discussion of the problems. The focus on real, ongoing
problems rather than the theoretical or artificial ones is called actions research. Action research is a very important feature
of OD. Sometimes, OD is called organisational improvement through action research.

7. Experiential Learning:
In the traditional approaches, training was provided to the people by lecture and discussion method, in which people talk
about only abstract ideas. But in OD, particularly learn by experiencing in the training environment the kind of human
problems they face on the job. This approach tends to produce more changed behaviour than the traditional approach.
Theory is also necessary and desirable, but the ultimate test is how it applies in real practice. These answers are provided
by OD.

8. Collaborative Management:
In contrast to the traditional management structure where orders are issued at upper levels and simply carried out by low
levels, OD stresses collaboration among levels. In OD, organisations are viewed in a systems perspective.

9. Group Process:
In OD, an effort is made to improve interpersonal relations, open communication channels, build trust and encourage
responsiveness to others. For this OD relies on group processes like group discussions, inter group conflicts,
confrontations and procedures for co-operations.

10. Organisational Culture:

OD assumes that the culture of every organisation is different from the culture of the other organisations. The assumption
that a particular solution can be applied to the problems of all the organisations is generally not made in OD. Instead the
culture of each organisation must be understood and relations consistent with culture be developed.

11. Feedback:
In OD, feedback is given to all the participants about themselves, which provides them a basis for their next activities.
They generally base their decisions on this concrete data. With the help of feedback of information, employees will be
encouraged to understand a situation and take self corrective action before somebody else tells them what to do.

12. Situational and Contingency Oriented:

OD is flexible and pragmatic, adapting the actions to fit particular needs. Although some occasional OD change agent
may have to impose a single best way on the group, there is, usually, open discussion of several better alternatives rather
than a single best way.

13. Team Building:

The basic objective of OD is to build better team work throughout the organisation. OD tries to tie all the groups, small
and large, working in the organisation, together to make one integrated and cooperative group. If any groups have some
differences, OD will help them to find out the ways for solving the differences. The result of effective team work will be
improved organisational performance.

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Objectives/Aim of OD:
1. To stimulate people to express freely without fear.
2. To increase interpersonal communication.
3. Decision through collective efforts.
4. To have self control.
5. To have self direction and self motivation.
6. To encourage employees participation in analyzing the problems and decision making.
7. To develop solutions to the problem.
8. Improve organisational performance as measured by profitability, market share, innovativeness, etc.
9. Make organisations better adaptive to its environment which always keeps on changing.
10. Make the members willing face organisational problems and contribute creative solutions to the organisational
problems.
11. Improve internal behaviour patterns such as interpersonal relations, intergroup relations, level of trust and support
among the role players.
12. Understand own self and others, openness and meaningful communication and involvement in planning for
organisational development.

Advantages of OD:
1. Organisation development is not a magic to solve all the management problems but definitely it helps in meeting the
challenges thrown by change and making the organisation effective.
2. OD processes and methods encourage team work, improve intergroup relationship.
3. It helps employees to understand each other better and promotes cooperation and mutual understanding.
4. It helps in getting job satisfaction. It helps in improving communication skills.
5. OD helps in boosting up the morale of the employees. High morale leads to greater productivity.
6. It helps the employees to accept changes in the technology which increase efficiency ultimately leading to have an edge
over the competitors and increase the market share.
7. OD frees the employees and subordinates from stress at workplace.
8. Employees become accustomed to accept change. They do not resist it leading to speedy implementation of policies
and programmes and adopting new technology and concepts without any hesitation. It changes the atmosphere which is
more conducive for executing developmental programmes.

Organizational Development Process:

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1. Initial Diagnosis of the Problem:
In the first step, the management should try to find out an overall view of the situation to find the real problem. Top
management should meet the consultants and the experts to determine the type of programme that is needed. In the first
stage only, the consultants will meet various persons in the organisation and interview them to collect some information.

2. Data Collection:
In this stage, the consultant will make the surveys to determine the climate of the organisation and the behavioural
problems of the employees.

The consultant will meet groups of people away from their work environment to get some answers to the questions
such as:
(i) What specific job conditions contribute most to their job effectiveness?

(ii) What kind of conditions interferes with their job effectiveness?

(iii) What changes would they like to make in the working of the organisation?

3. Data Feedback and Confrontation:

The data which has been collected in the second step will be given to the work groups, who will be assigned the job of
reviewing the data. Any areas of disagreement will be mediated among themselves only and priorities will be established
for change.

4. Planning Strategy for Change:

In this stage, the consultant will suggest the strategy for change. He will attempt to transform diagnosis of the problem
into a proper action plan involving the overall goals for change, determination of basic approach for attaining these goals
and the sequence of detailed scheme for implementing the approach.

5. Intervening in the System:

Intervening in the system refers to the planned programmed activities during the course of an OD programme. These
planned activities bring certain changes in the system, which is the basic objective of OD. There may be various methods
through which external consultant intervene in the system such as education and laboratory training, process consultation,
team development etc.

6. Team Building:
During the entire process, the consultant encourages the groups to examine how they work together. The consultant will
educate them about the value of free communication and trust as essentials for group functioning. The consultant can have
team managers and their subordinates to work together as a team in OD sessions to further encourage team building.
Following the development of small groups, there may be development among larger groups comprising several teams.

7. Evaluation:
OD is a very long process. So there is a great need for careful monitoring to get precise feedback regarding what is going
on after the OD programme starts. This will help in making suitable modifications whenever necessary. For evaluation of
OD programme, the use of critique sessions, appraisal of change efforts and comparison of pre and post training
behavioural patterns are quite effective.

The steps in OD are part of a whole process, so all of them need to be applied if a firm expects to get the full benefits of
OD. An organisation which applies only a few steps and leaves the others will be disappointed with the results.

Techniques of Organisation Development

1. Survey Feedback:
Information is collected through survey method. This is the most popular and widely used method of data collection. The
managers use this information collected through survey for making decisions. The wide range of data is collected
regarding working conditions, quality of work, working hours, wages and salaries, attitude of employees relating to
above.

These data are then analyzed by the team of managers. They find out the problem, evaluate the results and find out
solutions. Information is collected from all the members of the organisation. Managers conduct meetings with their
subordinates and discuss the information, allow subordinates to interpret the data. After this plans are prepared for making

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necessary changes. This procedure is followed at all levels of management involving all the employees of the
organisation.

2. Team Building:
Team Building is another method of organisation development. This method is specifically designed to make
improvement in the ability of employees and motivating them to work together. It is the organisation development
technique which emphasizes on team building or forming work groups in order to improve organisational effectiveness.

These teams consist of employees of the same rank and a supervisor. This technique is an application of sensitivity
training to the teams of different departments. The teams or work groups are pretty small consisting of 10 to 15 persons.
They undergo group discussion under the supervision of an expert trainer usually a supervisor. The trainer only guides but
does not participate in the group discussion.

This method of team building is used because people in general do not open up their mind and not honest to their fellows.
As they does not mix up openly and fail to express their views to the peers and superiors. This technique helps them
express their views and see how others interpret their views. It increases the sensitivity to others behaviour.

They become aware of group functioning. They get exposed to the creative thinking of others and socio-psychological
behaviour at the workplace. They learn many aspects of interpersonal behaviour and interactions.

3. Sensitivity Training:
It is quite popular OD intervention. It is also known as laboratory training. Under this technique the employees in groups
are asked to interact. The aim of sensitivity training is to help people understand each other and gain insight so that they
feel free and become fearless.

Under this technique the different groups of employees are allowed to mix up with each other and communicate freely
and build up interpersonal relationship. They learn the reflection of their behaviour and try to improve it. In the words of
Chris Argyris, sensitivity training is a group experience designed to provide maximum possible opportunity for the
individuals to expose their behaviour, give and receive feedback, experiment with new behaviour and develop awareness
of self and of others.

4. Managerial Grid:
This technique is developed by industrial psychologists duo Robert Blake and Jane Mouton. The concept of managerial
grid identifies two major dimensions of management behaviour. They are people oriented and production oriented
behaviours. Attempts are made to pay increased attention to both the variables.

Phases of Managerial Grid:

The following are the six phases of managerial grid training programme:
1. Phase or step one consists of seminar training. The seminars usually conducted up to a week. Through seminars the
participants learn about their own grid concept and style. This can help them assess their management style. It also helps
them to improve their skill within their group. They develop problem solving techniques and develop their own grid
programme.

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2. The second phase gives more stress on team development. The teams consisting of managers make necessary efforts to
prepare plans to attain point D or 9.9 managerial styles. Through this they learn how to develop smooth relationship with
their subordinates and to develop communication skill with other members of the organisation.

3. The third phase is intergroup development for improving coordination between different departments of the
organisation. Participants learn to develop problem solving methods.

4. The fourth phase deals with the creation of ideal models organisation. Managers and their immediate subordinates sit
together, set the goals, test and evaluate them. Superiors acquired knowledge through reading of books. They prepare
ideal strategy for the organisation.

5. The fifth phase deals with goal accomplishment. The teams of various departments make survey of the resources
available in the departments or which can be procured to accomplish the goals of the organisation.

6. The sixth deals with evaluation of the programmes and to see if necessary alteration or adjustment can be made for
execution. The managerial grid technique is quite complicated and its benefits cannot be visualized immediately, hence its
evaluation can be done after pretty long time.

5. Management by Objectives (MBO):

MBO is a technique of management development which was put forward for the first time by Peter Drucker in 1954. It is
a method of achieving organisational objectives and a technique of evaluation and review of performance. Under this
method objectives of the organisation are fixed and responsibility to achieve them lie on the managers and results are
expected from them.

Achievement of organisational objectives is considered as the joint and individual responsibility of all managers. It also
provides a perfect appraisal system. Performance of the managers is measured against the specific objectives. It is result
oriented technique.

George Odiorne observed that MBO is, a system wherein superior and subordinate managers of an organisation jointly
identify its common aims, define each individuals major areas of responsibility in terms of the results expected of him
and use these measures as guides for operating the unit, assessing the contribution benefits of its members.

According to D D White and D A Bednar, MBO is a technique designed to (1) increase the precision of the planning
process at the organisational level and (2) reduce the gap between employee and organisational goals.

MBO process:
MBO process involves four major steps:
(1) Goal Setting by Top Management:
For effective planning the organisational goals are set by the top management. These goals provide an outline or base for
different departments to set their goals after making certain modifications etc. if at all necessary.

(2) Individual Goals:

Organisational goals cannot be fulfilled by a single individual but all the members cooperative and active participation is
necessary. It is therefore pertinent to assign a target to every individual and he must attain it.

(3) Freedom for Selection of Means:

A considerable amount of freedom or autonomy is given for the accomplishment of goals to the managers and
subordinates.

(4) Making Appraisal:

The performance is to be reviewed and appraised in relation to the goals. This will help the subordinates and employees to
make the corrections if any and make further improvements.

MBO is an effective technique of organisational development and improving performance. It promotes coordination
among superiors and subordinates at all levels and is an effective tool of planning and control. It helps to learn problem
solving techniques.

6. Brain Storming:
It is a technique where a group of five to eight managers come together and find a solution to a problem. As the name
suggests it involves storming of the brain to develop creativity in thinking. It gives rise to new ideas. The principle
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involves in it is that any idea, thought or plan put forward in a meeting must be critically evaluated. The participants are
asked to come forward with novel ideas generated in their mind. It works on a premise that everyone has a creative mind
and capability to generate new ideas.

Participants are closely observed at the discussion and no expert is provided to conduct the meeting. The participants sit
across the table for close communication. The brainstorming technique can generate an atmosphere where people can
express freely. This encourages group interaction and creative thinking. The only limitation this method has is that it is
time consuming and hence expensive.

7. Process Consultation:
The technique of process consultation is an improvement over the method of sensitivity training or T Group in the sense
that both are based on the similar premise of improving organisational effectiveness through dealing with interpersonal
problems but process consultation is more tasks oriented than sensitivity training.

In process consultation the consultant or expert provides the trainee feedback and tell him what is going around him as
pointed out by E H Schein that the consultant, gives the client insight into what is going on around him, within him,
and between him and other people.

Under this technique the consultant or expert provides necessary guidance or advice as to how the participant can solve
his own problem. Here the consultant makes correct diagnosis of the problem and then guides the participants.

The consultant according to E H Schein, helping the client to perceive, understand and act upon process events which
occur in the clients environment. Process consultation technique is developed to find solutions to the important
problems faced by the organisation such as decision making and problem solving, communication, functional role of
group members, leadership qualities. Consultant is an expert outside the organisation.

E H Schein has suggested the following steps for consultant to follow in process consultation:
(i) Initiate contact:
This is where the client contacts the consultant with a problem that cannot be solved by normal organisation procedures or
resources.
(ii) Define the Relationship:
In this step the consultant and the client enter into both a formal contract spelling out services, time, and frees and a
psychological contract. The latter spells out the expectations and hoped for results of both the client and the consultant.
(iii) Select a Setting and a Method:
This step involves an understanding of where and how the consultant will do the job that needs to be done.
(iv) Gather Data and Make a Diagnosis:
Through a survey using questionnaires, observation and interviews, the consultant makes a preliminary diagnosis. This
data gathering occurs simultaneously with the entire consultative process.
(v) Intervene:
Agenda setting, feedback, coaching, and/or structural interventions can be made in the process consultation approach.

(vi) Reduce Involvement and Terminate:

The consultant disengages from the client organization by mutual agreement but leaves the door open for future
involvement. The organisation benefits from the process consultation to ease out interpersonal and intergroup problems.
To use the technique of process consultation effectively the participants should take interest in it.

8. Quality Circles:
Under this system a group of 5 to 12 come together at their own free will during working hours once in a week and
discuss out the problems and suggests solution to the management for implementation. The supervisors remain present
during the meeting. Quality Circles have their origin in Japan in nineteen sixties which improved the quality, reduced cost
and heightened the morale of the workers. The success was due to workers participation. Total quality management or
TQM is the recent development. This concept was adopted by the USA in 1980.

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9. Transactional Analysis:
Transactional analysis helps people to understand each other better. It is a useful tool for organisational development but
it has diverse applications in training, counselling, interpersonal communication and making analysis of group dynamics.
Nowadays, it is widely used as OD technique. It helps in developing more adult ego states among people of the
organisation. It is also used in process consultation and team building.

Limitations of Organisational Development:

OD is an important technique of introducing change. But as a method of inducing change, it has certain limitations also.
These are as follows:
1. OD is based on the behavioural sciences concepts. Behavioural sciences themselves have many limitations, which are
passed on to and applicable to OD also.

2. OD requires the use of certain diligent and highly motivated persons, who can take initiative to bring about change. But
in organisations, people are, generally, complacent who are not willing to make the required efforts and they are not
helpful in implementing organisational development.

3. OD cannot be applied without giving due consideration to the circumstances existing within the organisation. The local
circumstances may pose a problem in adapting to change. Task of the organisation and the characteristics of its
membership also put limitations on the effectiveness of OD.

Organisation Development Values:

Organisation development constitutes various people, professionals, technocrats, researchers, managers and a host of
other employees working in the organisation contributing to the accomplishment of organisational objectives. They
behave differently. Authority and power, conflicts, control takes backseat during OD process.

The following are the values in OD efforts:

1. Respect People:
People are the raison detre of organisation and they are responsible for creating opportunities for growth. They must,
therefore, be treated with respect and dignified manners.

2. Confidence and Support:

Organisations are made up of people and they are to be believed and supported in order to have effective organisation.
The healthy environment prevails when people are trusted and taken into confidence and a necessary support is extended
to them as and when needed.

3. Confrontation:
Any conflict on any issue should not be suppressed. It should be dealt with openness. Suppression leads to dampening of
morale. Identifying the problem and its causes, discussing it openly and finding out feasible solution leads to boosting up
morale of the employees and creating good environment.

4. Employee Participation:
The participation of employees who will be affected by the OD should be sought in decision-making.

5. Expression:
Human beings differ in experience, maturity, ideas, opinions, and outlook. The organisation is at the receiving end. It
gains from the differences in quality, ideas, opinions and experiences of its people. Human beings are social animals; they
have feelings, emotions, anger and sentiments etc. They should be allowed to express their feelings and sentiments. This
will result in building up high morale and the people will be motivated towards hard work ultimately resulting in
increased efficiency.

6. Seeking Cooperation:
Managers should learn to seek cooperation from each of the employees working under him in his department. This will
develop in creating the atmosphere of cooperation leading to organisational effectiveness and willingness to accept
change in the event of organisation development process.

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7. Managerial Decision:
Every action of a manager is generally an outcome of a decision. Whatever a manager does, he does through making
decision. True, the job of management involves the making of innumerable decisions. That is why many persons think
that management is decision-making.

Decision-making is a must for all managerial functions. In other words, decision-making in planning is as important as in
organisation, co-ordination and control, because in each of these functions the manager has to choose from among a
number of alternative courses of action.

Decision-making can be defined as the process of selecting a right and effective course of action from two or more
alternatives for the purpose of achieving a desired result. Decision-making is the essence of management.

Managerial decision making is a process of making choices. If a choice is to be made among alternatives, there must be
differences among the alternatives. Relevant information should be used by the decision maker in evaluating the
alternatives and in making decisions.

Managers have to take decision all the times. They spend a great time in making decisions. Managers are evaluated and
rewarded on the number and importance of their decisions. Because of the stress and conflict involved, many managers
are reluctant to make decisions. A decision is the act of choosing among two or more options. Decision making is the
process of thought and deliberation that leads to decision.

It is important for managers to learn about good decision making for many reasons:
Every activity of management is based on decision. P.F. Drucker

Decision making is the selection based on some criteria from two or more possible alternatives. George R. Terry

A Decision is the act of choice wherein an executive forms a conclusion about what must be done in a given situation. A
decision represents behaviour chosen from a number of possible alternatives. D.E. Mc Farland

Decision making can be defined as the selection based on some criteria of one behaviour alternative from two or more
possible alternatives. To decide means to cut off or in practical, content, come to conclusion. R.S. Davar

Decision making is the focal creative psychic event where knowledge, thoughts, feelings and imaginations are fixed into
action. G.L.S. Shackle

Decisions are necessary on various issues and problems even in each of the functional areas of business like production,
marketing, finance and personnel administration. We can therefore; say that decision-making process is at the centre of
the management universe.

A manager reaps double advantage when he has to find a solution of a problem confronting him, viz.,

(1) he serves the organisation when he successfully overcomes the problem

(2) he derives, simultaneously personal satisfaction and a sense of accomplishment which is, in fact, the best reward to
satisfy ones egoistic demands

So, Decision making in points-

1. Decisionmaking is a selection process and is concerned with selecting the best type of alternative.
2. The decision taken is aimed at achieving the organisational goals.

3. It is concerned with the detailed study of the available alternatives for finding the best possible alternative.

4. Decision making is a mental process. It is the outline of constant thoughtful consideration.

5. It leads to commitment. The commitment depends upon the nature of the decision whether short term or long term.

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Nature/Feature/Characteristics of Decision Making:
1. Rational Thinking:
It is invariably based on rational thinking. Since the human brain with its ability to learn, remember and relate many
complex factors, makes the rationality possible.

2. Process:
It is the process followed by deliberations and reasoning.

3. Selective:
It is selective, i.e. it is the choice of the best course among alternatives. In other words, decision involves selection of the
best course from among the available alternative courses that are identified by the decision-maker.

4. Purposive:
It is usually purposive i.e. it relates to the end. The solution to a problem provides an effective means to the desired goal
or end.

5. Positive:
Although every decision is usually positive sometimes certain decisions may be negative and may just be a decision not to
decide. For instance, the manufacturers of VOX Wagan car once decided not to change the model (body style) and size of
the car although the other rival enterprise (i.e. the Ford Corporation) was planning to introduce a new model every year,
in the USA.

That a negative decision and is equally important was stressed by Chester I. Bernard-one of the pioneers in Management
Thought-who observed, The fine art of executive decision consists in not deciding questions that are not now pertinent,
in not deciding prematurely, in not making decisions that cannot be made effective, and in not making decisions that other
should make.

6. Commitment:
Every decision is based on the concept of commitment. In other words, the Management is committed to every decision it
takes for two reasons- viz., (/) it promotes the stability of the concern and (ii) every decision taken becomes a part of the
expectations of the people involved in the organisation.

Decisions are usually so much inter-related to the organisational life of an enterprise that any change in one area of
activity may change the other areas too. As such, the Manager is committed to decisions not only from the time that they
are taken but upto their successfully implementation.

7. Evaluation:
Decision-making involves evaluation in two ways, viz., (i) the executive must evaluate the alternatives, and (ii) he should
evaluate the results of the decisions taken by him.

Importance of Decision-Making:
Management is essentially a bundle of decision-making process. The managers of an enterprise are responsible for
making decisions and ascertaining that the decisions made are carried out in accordance with defined objectives or goals.

Decision-making plays a vital role in management. Decision-making is perhaps the most important component of a
managers activities. It plays the most important role in the planning process. When the managers plan, they decide on
many matters as what goals their organisation will pursue, what resources they will use, and who will perform each
required task.

When plans go wrong or out of track, the managers have to decide what to do to correct the deviation.

In fact, the whole planning process involves the managers constantly in a series of decision-making situations. The quality
of managerial decisions largely affects the effectiveness of the plans made by them. In organising process, the manager is
to decide upon the structure, division of work, nature of responsibility and relationships, the procedure of establishing
such responsibility and relationship and so on.

In co-ordination, decision-making is essential for providing unity of action. In control, it will have to decide how the
standard is to be laid down, how the deviations from the standard are to be rectified, how the principles are to be
established how instructions are to be issued, and so on.
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The ability to make good decisions is the key to successful managerial performance. The managers of most profit-seeking
firms are always required to take a wide range of important decision in the areas of pricing, product choice, cost control,
advertising, capital investments, dividend policy, personnel matters, etc. Similarly, the managers of non-profit seeking
concerns and public enterprises also face the challenge of taking vital decisions on many important matters.

Decision-making is also a criterion to determine whether a person is in management or not. If he participates in decision-
making, he is regarded as belonging to management staff. In the words of George Terry: If there is one universal mark of
a manager, it is decision-making.

According to P. F. Drucker:
Whatever a manager does, he does through making decisions.

In any business, whether large or small, the conditions are never static, they are perceptively dynamic. The old order is
always yielding place to new either in personnel or in unforeseen contingencies. Changes in conditions are the usual rule.
Such a situation calls for actions that involve decision-making.

So, decision-making is deeply related with management functions and both are bound up together inseparably. When a
manager plans or organises, orders or advises, approves or disapproves anything, he will have to move with the process of
decision-making. In all managerial functions, decision-making is an indispensable accompaniment.

Types of Decisions:
Different decisions differ in nature and significance. Some decisions are taken in routine while some may have to be
carefully evaluated.

Various decisions are discussed as follows:

1. Programmed and Non-Programmed Decisions:
Programmed decisions are of a routine nature and are taken within the specified procedures. These decisions are made
with regard to routine and recurring problems which require structured solutions. A manager is not required to go through
the problem solving procedures again and again for taking programmed decisions.

The decision rules for programmed decisions should be prepared carefully and intelligently so that lower level executives
are able to take the decisions without making references to higher managerial levels. No judgment or discretion is needed
to find out solutions to such problems. These decisions remain consistent for a relatively longer period of time and over
many solutions.

Non-programmed decisions are related to problems which are unique and non-repetitive. The information and knowledge
about such decisions is not available. Such decisions are made under new and unfamiliar circumstances. The standard and
pre-determined procedures and rules are rendered ineffective in programmed decisions because every decision will have
to be taken separately. Non-programmed decisions are usually grade for solving unstructured problems which keep on
changing from time to time.

Every problem has to be restructured and analyzed by the manager by using his skill, judgment and creativity. For
example, a decision regarding adding a new product, purchase of new machinery, opening a new branch, appointment of
a new chief executive are all non- programmed decisions and require separate attention for each decision.

2. Strategic and Tactical Decisions:

Strategic decisions relate to policy matters and need the development and analysis of alternatives. These decisions
influence organizational structure, objectives, working conditions, finances etc. Strategic decisions exercise great
influence on the functioning and direction of the organization and have long-term implications. They also define and
establish the relationship of the organization with external environment. Such decisions require more resources, judgment
and skill. Because of their importance, strategic decisions are taken at top managerial levels.

The decisions such as adding a new product or service, introduction of new technology, taking over of another
organization, selection of a location are all strategic decisions. These decisions once taken cannot be easily reversed. The
impact of these decisions is fairly long because expansion, growth, development and profitability of the organization is
linked to them. Strategic decisions somewhat resemble to non- programmed decisions because they possess the
characteristics of the latter.

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In order to implement strategic decisions, management has to make some tactical, operational or routine decision. One
strategic decision may require many operational decisions. These decisions are concerned with routine and repetitive
matters arising out of the working of the organization. Such decisions do not require managerial judgment and are taken
at lower levels of the management. Tactical decisions are more specific, functional and have short-term implications.
Such decisions are taken by referring to established rules, procedures and standards.

3. Individual and Group Decisions:

A decision taken by one person is known as individual decision. In a small concern normally the owner takes most of the
decisions, in a bigger concern the routine or simple decisions may be left to a particular manager. Such decisions are
generally taken as per predetermined rules and procedures and require less application of judgment and skill. When a
manager is required to take a decision, he is supplied with information and other inputs needed for this purpose. All
managers, whether at top level or at lower level, take decisions for carrying out their activities.

When decisions are taken by two or more persons, these are known as group decisions. Generally, strategic or other
important decisions are taken by groups instead of individuals because of risk involved. The decisions of Board of
Directors or Committees come under this category.

Group decisions are normally important and have long-term implications for the concern. A decision regarding
introducing a new product, shifting to latest technology, trying labour saving devices etc. may be better taken by a group
of specialists than by an individual. Group decisions are generally time consuming but otherwise these are well discussed
decisions.

Decision-Making Process

1. To diagnose the problem:

The first step in decision-making is to understand the exact problem.

Just as a disease cannot be cured without proper diagnosis, so also no decision-making is possible unless the problem is
properly diagnosed or known.

It is told that a disease is half cured if it is correctly diagnosed. Similarly, if the problem is correctly understood, its
solution will be easier.

For example, when a company is faced with declining profits, it shows the symptom and not the disease.

The managers may decide to solve the problem through intensive sales effort. But if the real problem lies elsewhere
which may need change or product lines, or reduction of price and improvement of quality, the intensified sales effort will
not bring the desired result.

So, correct assessment of the real problem is essential for decision-making. Diagnosing the real problem implies knowing
the gap between what is and what ought to be, identifying the reasons for the gap, and understanding the problem in
relation to higher objectives of the organisation.

2. To analyse the problem:

After correct diagnosis of the problem, the next task is to analyse the problem. This means splitting up of the problem into
its different elements based on collection of facts, data and relevant information. For instance, if there is a declining trend
in sales, it should analyse its extent in regard to market, price, product line, etc.
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So, all possible facts and data relating to the situation must be gathered to find out the revealing circumstances that may
help the decision-maker to gain an insight into the problem. The whole approach of analysis of the problem should be
based around the limiting or critical factors within minimum possible time and efforts.

3. To search for alternative solutions:

After ascertaining and analysing the problem, different possible alternatives are to be found out for its solution. A
problem can be solved in several ways. However, all the ways cannot be equally satisfying. Further, if there is only one
way of solving a problem, no question of decision-making arises.

That particular way is to be accepted. Therefore, the decision-maker must try to find out the various alternatives available
in order to get the most satisfactory result of a decision.

However, it should be borne in mind that it may not be possible to consider all alternatives, because information about all
alternatives may not be available, or some of the alternatives cannot be considered for selection due to the obvious
limitation of the decision-maker. While determining alternatives, the concept of limiting factor should be applied.

A limiting factor is one that stand in the way of accomplishing a desired objective. If these factors are identified, the
managers will confine their search for alternatives to those which will overcome the limiting factors. For instance, if an
enterprise has limitation in raising sizable finances, it cannot consider the projects involving high investment.

4. To evaluate the alternatives:

After the various alternatives are identified, the decision-maker will go for evaluating them to find out how each
alternative may contribute towards the objectives supposed to be achieved by implementing the decision. In evaluating an
alternative both tangible and intangible factors have to be taken into account.

Tangible factors are those which can be quantified because they are quite obvious like the cost per unit, investment
required, output to be received, etc. Such factors can be measured easily. As against these, intangible factors are mostly
qualitative and cannot be measured in terms of quantity.

For example, in a plant location, various non-economic factors like psychological problem arising out of displacement of
persons from the plant site, ecological balance, etc. have to be considered which cannot be quantified.

5. To select the best alternative:

The evaluation of various alternatives presents a clear picture as to how each one of them contributes to the objectives
under question. A comparison is made among the likely outcomes of various alternatives and the best one is chosen.
Choice aspect of decision-making is related to deciding the most acceptable alternative which gives the greatest number
of wanted consequences to fit with the organisational objectives.

A manager with sound knowledge, long experience and considerable ability may choose the best course of action easily.
When there is any confusion, some criteria may be useful for picking up the best solution.

These criteria are:

(i) Degree of risk against the expected gains;
(ii) Economy of effort;
(iii) Timing, and
(iv) Availability of resources.
6. To make the decision effective:
Once the alternative is selected, it is put into action. Truly speaking, the actual process of decision-making ends with the
choice of the best alternative through which the objectives can be achieved. However, decision-making, being a
continuous and on-going process, must ensure that the objectives have been achieved by the chosen alternative. Unless
this is done, the managers will never know what result their choice has contributed.

The decision, in order to be implemented must be communicated to the employees concerned in clear and simple
language and their acceptance of the decision must be secured. All decisions affect the employees and their work. It is,
therefore, necessary to secure their willing support and whole-hearted participation.

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7. To follow-up the decision:
When the decision is put into action, it brings certain results. If a good decision is taken and implemented properly, its
results should correspond with the objectives. So, results of the decision indicate whether decision-making and its
implementation are proper. But all decisions cannot be said to be perfect and flawless.

Decisions are not always based on facts, some guesswork may be necessary for this purpose. Moreover, there is the
human limitation associated with each decision-making process. In order to provide safeguards against incorrect, bad and
inappropriate decisions, it is desirable to introduce a system of follow-up in the light of feedback received from the
results.

This provides the scope of rectifying the wrong decisions and modifying similar future decisions to tune them up with
environmental changes. It is clear from the above discussion that decision-making is not a simple affair. Its formulation
and effectiveness depend upon a number of factors stated above.

Models/Theories of Decision Making:

The decision-making process though a logical one is a difficult task. All decisions can be categorized into the following
three basic models.

(1) The Rational/Classical Model.

(2) The Administrative or Bounded Rationality Model.

(3) The Retrospective Decision-Making Model.

All models are beneficial for understanding the nature of decision-making processes in enterprises or organisations. All
models are based on certain assumptions on which the decisions are taken.

1. The Rational/Classical Model:

The rational model is the first attempt to know the decision-making-process. It is considered by some as the classical
approach to understand the decision-making process. The classical model gave various steps in decision-making process
which have been discussed earlier.

Features of Classical Model:

1. Problems are clear.
2. Objectives are clear.

3. People agree on criteria and weights.

4. All alternatives are known.

5. All consequences can be anticipated.

6. Decision makes are rational.

i. They are not biased in recognizing problems.

ii. They are capable of processing ail relevant information

iii. They anticipate present and future consequences of decisions.

iv. They search for all alternatives that maximizes the desired results.

2. Bounded Rationality Model or Administrative Man Model:

Decision-making involve the achievement of a goal. Rationality demands that the decision-maker should properly
understand the alternative courses of action for reaching the goals.

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He should also have full information and the ability to analyse properly various alternative courses of action in the light of
goals sought. There should also be a desire to select the best solutions by selecting the alternative which will satisfy the
goal achievement.

Herbert A. Simon defines rationality in terms of objective and intelligent action. It is characterised by behavioural nexus
between ends and means. If appropriate means are chosen to reach desired ends the decision is rational.

Bounded Rationality model is based on the concept developed by Herbert Simon. This model does not assume individual
rationality in the decision process.

Instead, it assumes that people, while they may seek the best solution, normally settle for much less, because the decisions
they confront typically demand greater information, time, processing capabilities than they possess. They settle for
bounded rationality or limited rationality in decisions. This model is based on certain basic concepts.

a. Sequential Attention to alternative solution:

Normally it is the tendency for people to examine possible solution one at a time instead of identifying all possible
solutions and stop searching once an acceptable (though not necessarily the best) solution is found.

b. Heuristic:
These are the assumptions that guide the search for alternatives into areas that have a high probability for yielding
success.

c. Satisficing:
Herbert Simon called this satisficing that is picking a course of action that is satisfactory or good enough under the
circumstances. It is the tendency for decision makers to accept the first alternative that meets their minimally acceptable
requirements rather than pushing them further for an alternative that produces the best results.

Satisficing is preferred for decisions of small significance when time is the major constraint or where most of the
alternatives are essentially similar.

Thus, while the rational or classic model indicates how decisions should be made (i.e. it works as a prescriptive model), it
falls somewhat short concerning how decisions are actually made (i.e. as a descriptive model).

3. Retrospective decision model (implicit favourite model):

This decision-making model focuses on how decision-makers attempt to rationalise their choices after they have been
made and try to justify their decisions. This model has been developed by Per Soelberg. He made an observation
regarding the job choice processes of graduating business students and noted that, in many cases, the students identified
implicit favorites (i.e. the alternative they wanted) very early in the recruiting and choice process. However, students
continued their search for additional alternatives and quickly selected the best alternative.

The total process is designed to justify, through the guise of scientific rigor, a decision that has already been made
intuitively. By this means, the individual becomes convinced that he or she is acting rationally and taking a logical,
reasoned decision on an important topic.

Some Common Errors in Decision-Making:

Since the importance of the right decision cannot be overestimated enough for the quality of the decisions can make the
difference between success and failure. Therefore, it is imperative that all factors affecting the decision be properly
looked into and fully investigated.

In addition to technical and operational factors which can be quantified and analyzed, other factors such as personal
values, personality traits, psychological assessment, perception of the environment, intuitional and judgemental
capabilities and emotional interference must also be understood and credited.

Some researchers have pinpointed certain areas where managerial thinking needs to be re-assessed and where some
common mistakes are made. These affect the decision-making process as well as the efficiency of the decision, and must
be avoided.

Some of the errors are:

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a. Indecisiveness:
Decision-making is full of responsibility. The fear of its outcome can make some people timid about taking a decision.
This timidity may result in taking a long time for making a decision and the opportunity may be lost. This trait is a
personality trait and must be looked into seriously. The managers must be very quick in deciding.

b. Postponing the decision until the last moment:

This is a common feature which results in decision-making under pressure of time which generally eliminates the
possibility of thorough analysis of the problem which is time consuming as well as the establishment and comparison of
all alternatives. Many students, who postpone studying until near their final exams, usually do not do well in the exams.

Even though some managers work better under pressures, most often an adequate time period is required to look
objectively at the problem and make an intelligent decision. Accordingly, a decision plan must be formulated; time limits
must be set for information gathering, analysis and selection of a course of action.

c. A failure to isolate the root cause of the problem:

It is a common practice to cure the symptoms rather than the causes. For example, a headache may be on account of some
deep-rooted emotional problem. A medicine for the headache would not cure the problem. It is necessary to separate the
symptoms and their causes.

d. A failure to assess the reliability of informational sources:

Very often, we take it for granted that the other persons opinion is very reliable and trustworthy and we do not check for
the accuracy of the information ourselves.

Many a time, the opinion of the other person is taken, so that if the decision fails to bring the desired results, the blame for
the failure can be shifted to the person who had provided the information. However, this is a poor reflection on the
managers ability and integrity and the manager must be held responsible for the outcome of the decision.

e. The method for analysing the information may not be the sound one:
Since most decisions and especially the non-programmed ones have to be based upon a lot of information and factors, the
procedure to identify, isolate and select the useful information must be sound and dependable. Usually, it is not
operationally feasible to objectively analyse more than five or six pieces of information at a time.

Hence, a model must be built which incorporates and handles many variables in order to aid the decision makers. Also, it
will be desirable to define the objectives, criteria and constraints as early in the decision-making process as possible.

This would assist in making the process more formal so that no conditions or alternatives would be overlooked.
Following established procedures would eliminate the efforts of emotions which may cloud the process and rationality.

f. Do implement the decision and follow through:

Making a decision is not the end of the process, rather it is a beginning. Implementation of the decision and the results
obtained are the true barometer of the quality of the decision. Duties must be assigned, deadlines must be set, evaluation
process must be established and contingency plans must be prepared in advance. The decisions must be implemented
whole heartedly to get the best results.

Techniques or Basis for Decision-Making:

Decision-making has become a complex problem. A number of techniques, extending from guessing to mathematical
analyses, are used for decision-making process. The selection of an appropriate technique depends upon the judgment of
decision-maker.

Following techniques of decision-making are generally employed:

1. Intuition:
Decision-making by intuition is characterized by inner feeling of the person. He takes a decision as per the dictates of his
conscious. He thinks about the problem and an answer is found in his mind. The decision-maker has his own preferences,
influences, psychological make-up and these things play a vital role in taking a decision. The past knowledge, training
and experience of the decision-maker plays an important role in intuitive decisions.

2. Facts:
Facts are considered to be the best basis of decision-making. A decision based on facts has its roots in factual data. Such
decisions will be sound and proper. The increasing use of computers has helped in systematic analysis of data. The

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information has become a major tool in managerial decision-making. It may not be possible to secure all relevant facts for
taking decisions. Managers, generally, complain of insufficient information. It is also essential that facts should be
properly diagnosed, classified and interpreted. Facts alone may not be sufficient for decision-making. The imagination,
experience and beliefs of the decision-making also required to comprehend the facts in proper perspective.

3. Experience:
Past experience of a person becomes a good basis for taking decisions. When a similar situation arises then the manager
can rely on his past decisions and takes similar decisions. The person sees and understands things in terms of concepts
with which he is familiar. Experience should not be followed blindly. The new situations should be analyzed on the basis
of past knowledge. A successful decision in the past may not prove useful this time also, on the other hand, a decision
once failed need not be avoided for all times in future. Though past experience is a good basis but present situations
should be properly analyzed and assessed before taking a decision.

4. Considered Opinions:
Some managers use considered opinions as a basis for decision-making. Besides pertinent statistics, opinions are also
given due weightage. Something discussed and considered by more persons become logical and may form a sound basis
for decision-making. A marketing manager, before deciding whether to market a new product or not, will like to see
marketing statistics as well as considered opinions before finally making a choice.

5. Operations Research:
The traditional methods of taking decision on the basis of intuition, experience, etc. are replaced by systematic techniques
based on analysis of data. The operations research is one of the techniques used by modern management for deciding
important matters. It helps managers by providing scientific basis for solving organizational problems involving
interaction of components of the organization.

6. Linear Programming:
This technique is used to determine the best use of limited resources for achieving given objectives. This method is based
on this assumption that there exists a linear relationship between variables and that the limits of variations could be
ascertained. Linear programme can be used for solving problems in areas like production, transportation, warehousing,
etc.

Decision Making Conditions:

Decision making involves the selection of one of the alternatives available. A decision taken at present will have effect in
future. A decision-maker tries to visualize the conditions in future and take decisions accordingly. So decisions are made
in an environment of at least some uncertainty. There are certain risks involved in decision making and the conditions
vary from certainty to complete uncertainty. The strategy of taking decisions under different conditions vary. The
conditions under which decisions are taken are as follows:
Certainty:
Under the conditions of certainty, people are reasonably sure about what will happen when they take a decision. The
required information is available and it is reliable and the cause and effect relationships are known. The manager makes
decisions under such situations at different times with the same results. Under such situations a deterministic model is
used, in which all factors are assumed to be exact with the chance playing no role.
Risk:
In a risk situation, factual information may exist but it may be insufficient. Most of the business decisions are taken under
risk conditions. The available information does not answer overall questions about the outcome of the decision. A
manager has to develop estimates of the likelihood of the various states of events occurring. The estimates may be based
on past experience, other available information or intelligence.
In order to improve decision-making under these conditions, one may estimate the objective probabilities of an outcome
by using, for example, mathematical models. On the other hand, subjective probability, based on judgment and
experiences, may be used. There are a number of tools available which help a manager in taking decisions under such
conditions.
Uncertainty:
Under conditions of uncertainty a manager has only little information and he is not sure about its reliability also. Since the
manager does not have proper information on which he can develop, the best he can do is to be aware that he has no
chance of predicting the events. The interaction of various variables cannot be evaluated for taking decisions. The
decision making under uncertainty is a difficult proposition. For example, if a company wants to enter a foreign market, if
may not be sure about the consumer preference for the product, economic situation, above all the political conditions.
The conditions in a new market may so fluctuate that proper decision taking becomes a problem. The use of a number of
modern techniques may improve the quality of decisions under uncertain conditions. The use of risk analysis, decision
trees and preference theory can help in making proper decisions under those situations.

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8. Communication
The exchange of information or passing of information, ideas or thought from one person to the other or from one end to
the other is communication. More specifically, it is the process by which meanings are perceived and understandings are
reached among human beings.

Communication can also be defined as transmission or exchange of ideas, views, message, information or instructions
between two or more persons by different means.

Communication involves giving or receiving a message to another individual with the conscious intent of eliciting and
evoking a response and checking out its meaning. Communication refers to all behaviour, both verbal and non-verbal,
which occur in a social context. Another word for communication could be interaction.

According to McFarland communication is, a process of meaningful interaction among human beings. More
specifically, it is the process by which meanings are perceived and understandings are reached among human beings.

Newman and summer defined communication as an exchange of facts, ideas, opinions or emotions by two or more
persons.

Communication is the process of passing information from one person to another. The purpose of communication
understands of information. Whatever one wants to say to someone should be clearly understood by him else the very
purpose of the communication would be defeated.

In an organisation communication facilitates the flow of information and understanding between different people and
departments through different media using all the channels and networks. This flow of information is vital for managerial
effectiveness and decision making in general and for human resource manager in particular as he has to be in contact with
the managers of various departments, employees and workers and trade union leaders.

Communication thus helps understand people better removing misunderstanding and creating clarity of thoughts and
expression. It also educates people. The communication may be written or oral, formal, informal, and upward, downward,
horizontal, diagonal, interpersonal, intrapersonal, interdepartmental, intra-organisational.

The communication brings people together, closer to each other. The communication is an important management
function closely associated with all other managerial functions. It bridges the gap between individuals and groups through
flow of information and understanding between them. Information is the most vital aspect for communication. It is the
information which is transmitted, studied, analyzed and interpreted and stored. The manager therefore has to spare time to
collect, analyze and store the information for decision-making and routine day to day business.

The common means and ways of communication:

(a) Spoken words;

(b) Written words;
(c) Diagrams, pictures or graphs; and
(d) Gestures.
The communication is a two way process as it begins with sender and ends when the feedback comes from receiver to
sender. Minimum two parties are involved in the process of communication, i.e., the sender and the receiver.
Purpose of Communication:
Management is getting the things done through others. The people working in the organisation should therefore be
informed how to do the work assigned to them in the best possible manner. The communication is essential in any
organisation.

The purpose of the communication can be summed up into the following:

1. Flow of Information:
The relevant information must flow continuously from top to bottom and vice versa. The staff at all levels must be kept
informed about the organisational objectives and other developments taking place in the organisation. A care should be
taken that no one should be misinformed. The information should reach the incumbent in the language he or she can
understand better. The use of difficult words should be avoided. The right information should reach the right person, at
right time through the right person.

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2. Coordination:
It is through communication the efforts of all the staff working in the organisation can be coordinated for the
accomplishment of the organisational goals. The coordination of all personnels and their efforts is the essence of
management which can be attained through effective communication.

3. Learning Management Skills:

The communication facilitates flow of information, ideas, beliefs, perception, advice, opinion, orders and instructions etc.
both ways which enable the managers and other supervisory staff to learn managerial skills through experience of others.
The experience of the sender of the message gets reflected in it which the person at the receiving end can learn by
analyzing and understanding it.

4. Preparing People to Accept Change:

The proper and effective communication is an important tool in the hands of management of any organisation to bring
about overall change in the organisational policies, procedures and work style and make the staff to accept and respond
positively.

5. Developing Good Human Relations:

Managers and workers and other staff exchange their ideas, thoughts and perceptions with each other through
communication. This helps them to understand each other better. They realize the difficulties faced by their colleagues at
the workplace. This leads to promotion of good human relations in the organisation.

6. Ideas of Subordinates Encouraged:

The communication facilitates inviting and encouraging the ideas from subordinates on certain occasions on any task.
This will develop creative thinking. Honoring subordinates ideas will further motivate them for hard work and a sense of
belonging to the organisation will be developed. It will provide them with the encouragement to share information with
their superiors without hesitation. The managers must know the ideas, thoughts, comments, reactions and attitudes of their
subordinates and subordinates should know the same from the lowest level staff of their respective departments.

Importance of Communication:
Effective communication is vital for efficient management and to improve industrial relations. In modern world the
growth of telecommunication, information technology and the growing competition and complexity in production have
increased importance of communication in organisations large and small irrespective of their type and kind. A corporate
executive must be in a position to communicate effectively with his superiors, colleagues in other departments and
subordinates. This will make him perform well and enable him to give his hundred percent to the organisation.

1. Act as basis of Coordination and Cooperation:

Generally the organisational objectives are set up at planning stage and these objectives have to be communicated to
management at all levels. That is why through communication only the objectives and goals of the organisation are made
clear to every employee.

While setting up the personal targets and objectives of employees the managers must get the accurate information which
reaches manager through communication only. Through communication the top level management is able to interact with
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lower level management and all the employees. This interaction helps in getting the commitment and co-operation and
coordination of people.

2. Act as basis for Decision Making:

For taking any major decision or solving any problem in the organisation there is a need to get the most accurate
information and information moves in organisation through communication only. Whenever the managers are taking
decisions they keep in mind the pros and cons or positive or negative aspects. The accurate information regarding the
positive and negative aspect comes only through communication.

3. Increase managerial efficiency:

Every individual in the organisation is assigned a job or task. He is made responsible for some activities. He is granted
authority to carry on those responsibilities. This classification of task, responsibility and authority is possible only when
the information reaches accurately to the employees.

The employees must know clearly who has to report to whom, what part of total job they are expected to perform and
what are their decision making powers. The clarity about these questions comes only with smooth flow of
communication.

4. Establish effective leadership:

If there is two way information flows between the superiors and subordinates then there will be definitely positive
reaction of employees. Generally rules are framed by the top level authority but these are applied on all the employees in
the organisation. So it is always advisable to interact clearly with all the levels of employees before framing the rigid rules
and regulations. The rules are more effective when they are formed with the interaction of employees.

5. Helps in Process of Motivation and Morale Development:

Motivation is a psychological process of developing willingness to work. In the motivation process the superiors try to
analyse the needs of subordinates and the needs can be recognised only when there is smooth flow of information and
exchange of views between the superiors and subordinates.

With the communication it becomes more convenient for the superiors to offer financial and non-financial incentives. The
job satisfaction and the moral of the employee depend on the communication between superior and subordinates.

6. Helps in Smooth Working of an Enterprise:

All interactions in organisation depend upon communication. Smooth working of an enterprise is possible only when
there is no communication gap. Right from establishing of enterprise till its survival communication is essential.

Through communication managers give directions to subordinates for smooth functioning of organisation.

7. Promotes Cooperation and Peace:

Through two way communication process managers try to develop mutual understanding between management and
workers. Through smooth flow of communication subordinates and superior can discuss their problems, grievances and
aspirations. Cooperation brings peace in the organisation.

Principles of Communication for effective communication:

Lack of effective communication renders an organisation handicapped. So to have effective communication certain
principles are to be followed.

They are as follows:

1. Clarity:
The principle of clarity means the communicator should use such a language which is easy to understand. The message
must be understood by the receiver. The words used should be simple and unambiguous. The language should not create
any confusion or misunderstanding. Language is the medium of communication; hence it should be clear and
understandable.

2. Adequacy and Consistency:

The communicator must carefully take into account that the information to be communicated should be complete and
adequate in all respect. Inadequate and incomplete message creates confusion and delays the action to be taken. The
adequate information must be consistent with the organizational objectives, plans, policies and procedures. The message
which is inconsistent may play havoc and distort the corporate interests.

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3. Integration:
The principle of integration portrays that through communication the efforts of human resources of the organisation
should be integrated towards achievement of corporate objectives. The very aim of communication is to achieve the set
target. The communication should aim at coordinating the activities of the people at work to attain the corporate goals.

4. Economy:
The unnecessary use of communication system will add to cost. The system of communication must be used efficiently,
timely i.e. at the appropriate time and when it is necessary. The economy in use of communication system can be
achieved in this way.

5. Feedback:
The purpose of communication will be defeated if feedback is not taken from the receiver. The confirmation of the receipt
of the message in its right perspective from its receiver fulfills the object of communication. The feedback is essential
only in case of written communication and messages sent through messengers. In case of oral type of communication the
feedback is immediately known.

6. Need for Communication Network:

The route through which the communication passes from sender or communicator to its receiver or communicate refers to
communication network. For effective communication this network is essential. The managerial effectiveness will also
depend upon the availability of adequate network.

7. Attention:
The message communicated must draw the attention of the receiver staff and ensure action from him in the right
perspective. The efficient, sincere and prompt manager succeeds in drawing the attention of his subordinates to what he is
conveying.

It is the psychology of the people that they watch their superiors closely and then respond to their orders or instructions.
Lazy and insincere superiors fail to garner support for themselves and their instructions usually are not taken seriously by
their subordinates. Adhering to the above principles shall make communication effective, minimize the human relations
problems and increase the overall efficiency.

Communication Process/Elements of Communication Process:

The communication process begins when sender thinks of an idea or message to be conveyed to other person. Then the
sender encodes the message, i.e., plans out the words or the language in which the message must be sent to the other
party. After encoding the message the sender transmits or transfers the message by using different ways and means. After
transmission the message reaches to receiver.

The receiver decodes the message to understand the message and give his response or feedback to the sender. When the
feedback reaches back to sender then only the communication process ends which means the communication is a circular
process which starts with sender and ends with sender.

1. Sender: Sender is the person who conveys the message. The communication process begins immediately when the idea
comes in the mind of sender.

2. Message: The contents of ideas or message or suggestion which sender wants to share with receiver is called message.

3. Encoding: Receiver cannot read the mind of sender. So receiver converts the idea into a language or other
communication symbols such as pictures, gestures, etc. This is known as encoding.

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4. Media: It is the way or means through which encoded message has to be transmitted to receiver. The common ways of
transmission are phone, letter, internet, message, etc.

5. Decoding: Decoding refers to converting the encoded message into language and understanding the message.

6. Receiver: Receiver is the person who receives the communication and understands the message.

7. Feedback: After understanding the message the receiver sends his response on that idea or message to sender. When
response reaches the sender then only communication process ends.

8. Noise: Noise is any element which results in disturbance, distraction or interruption in the flow of information. The
noise can be a loud sound made by any vehicle, disturbance in the telephone line, disconnection of line, losing of letter or
documents on the way, poor connectivity in the e-mail or internet. Due to noise the message is not conveyed to receiver
and receiver is not able to decode the message in the same manner as expected by the sender.

Channel/Forms of Organisational Communication:

There are two forms of organisational communication:

i. Formal Communication; and

ii. Informal Communication.

1. Formal communication:
Formal communication refers to official communication taking place in the organisation. Whenever there is exchange of
views or message or information related to official matter such as assignment of task, fixing of responsibilities, granting
authority or setting up of targets, objectives etc. then it is known as formal communication.

Formal communication generally takes place in the written form such as issue of notice, letter, memo, document, etc.
Verbal or oral channels are avoided in formal communication as there is no record or proof of such communication.

According to direction of flow formal communication can be divided into four types:

i. Downward Communication:
The flow of information from the top level or from the superiors to lower level or subordinates is known as downward
communication. In this communication the manager passes instructions to his subordinates and the success of downward
communication depends upon communication skill of the managers. The common ways of having downward
communication are:

ii. Upward Communication:

When the subordinates inform or pass any information to superiors then it is known as upward communication. This
communication flows from subordinates to superiors. Upward communication generally consists of work performance,
opinion, grievances or problems of the employees.

In the recent years upward communication is gaining more importance because the subordinates prefer to involve
themselves in the decision making and they have started demanding a better working condition. The upward
communication may take place in the following manner:

iii. Horizontal Communication:

Horizontal communication is the communication between the two or more persons working at the same level of authority.
Generally different departmental heads discuss the policy of their department with each other. That will be considered as
the horizontal communication. Discussion between two managers of same rank is also a horizontal communication. For
example, the marketing manager may discuss from time to time the quality and packing of product with the production
manager.

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iv. Diagonal Communications:
Diagonal communication is a flow of information between the persons working in different departments and holding
different levels of authority. For example, the salesman may request the production manager to modify the product design
according to the requirement of the customer. The diagonal communication prevents delay in flow of information and
helps in taking fast decisions as subordinates of one department can directly communicate with the managers of other
department.

Advantages of Formal Communication:

1. The formal communication is very systematic and ensures orderly flow of information.

2. The source of information can easily be located.

3. In formal communication it is easy to fix the responsibilities of different employees as there is proof for the
information.

4. Through formal communication it is easy to exercise control over the work performance of different employees.

Disadvantages:
1. The information is delayed as generally scalar chain is followed while passing of information.

2. In formal communication the information is conveyed or passed in impersonal manner.

3. The information may not be transmitted accurately to avoid the unfavourable effect of communication.

2. Informal Communication:
Informal communication between different members of organisation who are not officially attached to each other is
known as informal communication. Generally, the social interactions, friendly talks and non-official matters are discussed
in the informal communication.

There is no fixed direction or path for the flow of information under informal communication. The information moves in
a very vague, confusing and zig-zag manner. That is why the network of informal communication is known as Grape
Vine.

There is no fixed source of information under informal communication and information can move in any direction. There
are several types of informal systems.

But the common networks of informal communication are:

1. Gossip:
Under gossip pattern one person tells many ^4 f which means information is with one member of organisation and he
shares the information with many other people in his social group.

2. Clusters:
Under this pattern or method the information is shared between two persons who trust each other, then one of the persons
from that group passes the information to members of other group and one person from other group may pass it to another
and so on. So, under cluster method one person tells the information to select other persons.

3. Single Strand:
In single strand pattern each individual communicates to the other in sequence.

4. Probability:
In probability network the individual communicates randomly with other individuals.

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Advantages of Informal Communication (benefits from employees point of view):
1. The employees can develop friendly relationship and get social satisfaction.

2. Through informal communication the matters can be discussed which cannot be discussed through official channels.

3. It provides information to all the members cutting across the official channels.

Benefits from management point of view:

1. The managers can fill up communication gap if there is any through informal communication.

2. Informal communication travels very fast. So urgent matters can be communicated informally.

3. The managers can get true and accurate response of subordinates on various policy matters.

4. Informal communication provides emotional relief to employees and results in reducing union and management
problems.

Disadvantages of Informal Communication:

1. The information travels in a very unsystematic manner and gets distorted while passing through various channels.

2. Informal communication helps in spreading rumors and false facts.

3. Responsibilities cannot be fixed as the source of information cannot be known.

4. The confidential information may get leaked under informal communication.

Barriers to Effective Communication:

Sometimes the message sent by sender does not reach the receiver in the same manner as expected by the sender. This
filtration, misrepresentation of communication may cause misunderstanding. Therefore it is important for a manager to
identify these barriers and take measures to overcome these.

The barriers can be grouped in following categories:

i. Semantic Barriers

ii. Psychological Barriers

iii. Organisational Barriers

iv. Personal Barriers

1. Semantic Barriers:
Sometimes the same words and sentences can be understood differently by different people in the organisation which
means difference in the understanding levels of employees. For example, if the production manager announces in the
meeting that there will be increase in budget of production department then employees may understand that their salary
will increase but managers may understand it that expensive machinery will be purchased. Main causes for semantic
problem can be

(i) Badly expressed message:

Sometimes due to lack of vocabulary manager may use wrong words, omission of needed words. Due to this the manager
may fail to convey the same meaning to his subordinates.

(ii) Symbols with different meanings:

Sometimes a word may have different meanings. Receiver may understand the other meaning. For example: Price, Prize,
Principle, Principal, Right, Write, etc. or handle with care. Hold the handle of door carefully.

(iii) Faulty Translations:

Sometimes the workers do not understand the language which is used by manager so workers get it translated. If
translator is not efficient he may make mistake in translation. Due to wrong translation there may be transfer of wrong
message.
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(iv) Un-clarified Assumptions:
Sometimes the worker may misinterpret the assumptions. For example boss may instruct the subordinate to take care of
goods. He may mean that takes care of quality of goods whereas workers may understand that he is instructing to keep
the goods safely.

(v) Technical Jargon:

While explaining to subordinates many specialised experts use technical words which may not be understood by the
workers.

(vi) Body language and gesture decoding:

Along with verbal communication another important mode of communication is body language and gestures shown by
person who is talking. If the verbal communication is not matching with the body language, then workers may get
confused and misunderstand the meaning. ExampleIf manager is telling a joke but there are signs of anger on his face
then worker will get confused.

2. Psychological Barriers:
Emotional or psychological factors also act as barriers to effective communication. The state of mind has great influence
over the information and its reflection. As a frightened person may not communicate properly similarly an angry person
may not receive the communication effectively.

Some of the psychological barriers to effective communication are:

(i) Premature Evaluation:
It means deriving conclusions before completion of message. Sometimes people evaluate the meaning of message before
the sender completes the message. In such case the receiver may not have an open mind.

He may have some personal prejudice against the sender. He may resist change. He jumps to conclusions without logical
deduction from the situation.

(ii) Lack of Attention:

It means when receiver does not pay complete attention to the message as a result communication becomes ineffective.
The reason can be preoccupied mind of receiver. For example, when worker is giving suggestion regarding method of
production, the manager is preoccupied with an important file.

Sometimes managers do not give attention due to extreme emotions for example, depression or jubilation. This lack of
attention may disappoint the employees.

(iii) Loss by Transmission and Poor Retention:

When communication passes through various levels, this results in filtering or loss of information. Specially when is oral
information sometimes manager may not be able to retain all information for a longer time. They may ignore or
misinterpret some of the information when they are not interested.

(iv) Distrust:
Distrust between communicator and receiver also acts as a barrier to effective communication. They may not understand
each others message in the original sense, secondly they do not give much importance to the information exchanged
between them.

3. Organisational Barriers:
Factors related to organisational structure, authority relationship, rules, regulations may act as barriers to effective
communication.

Some of the organisational barriers are:

(i) Organisational Policy:
If organisational policy does not support free flow of information it may result in barriers. For example in centralised
organisation most of the information remain at top level only. People at lower level may not be able to communicate
freely in centralised organisation.

(ii) Rules and Regulations:

Rigid rules, regulations may also create barriers as following rules may lead to red tapism, delay of action and delay in
movement of information.

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(iii) Status Difference:
Sometimes the people working at higher level do not believe in the information supplied by the lower level employees as
they feel how would he know about my job and who is he to give me suggestions.

(iv) Complex organisation:

When the information passes through various levels then there can be screening or filtering of information at different
levels. For example, while giving the feedback the subordinates filter all their negative points and highlight only their
positive side.

(v) Organisational Facilities:

In large organisation free and effective flow of communication is possible only when some facilities like social get
together, complaint box, task force, etc. exist. In absence of such facilities there can be delay and barrier to effective
communication.

4. Personal Barriers:
Certain personal factors of sender and receiver may influence the free flow of information.

Some of the personal barriers are:

(i) Lack of Confidence of Superior in his subordinates:
If superiors have no confidence and trust in their subordinates then they pay no attention to their advice, opinion or
suggestions.

(ii) Lack of incentives:

If there is no incentive for communication then subordinates may not take initiatives to give suggestions.

For example if there is no reward given for giving some good suggestion then employees will take no initiative to give
good suggestions.

(iii) Fear of Authority:

Sometimes superiors conceal and hide information if they have fear of losing their authority over the subordinates.

Improving Communication Effectiveness:

All organizations face barriers to effective communication. By using following measures they can overcome such
barriers.

1. Clarify the idea before communication:

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In the first place we must be clear about what we want to communicate. The message can be conveyed properly only if it
is clearly formulated in the mind of the communicator. The message should be encoded in direct and simple language so
that the receiver is able to understand it without much difficulty.

2. Communication according to the need of the receiver:

Whenever we communicate we must keep in mind the needs of the receiver of the message or it should be our effort to
see that whatever message or information we send across must be of value to receiver. This will make receiver more
receptive. Sender must select the words according to the education level of receiver.

3. Consult others before communicating:

Before communicating the message it is advisable to consult others. Effective communication is the responsibility of all
persons in the organisation as all have to work towards a common goal. If plans are developed with consultation and
involvement of subordinates, they will accept it with full cooperation.

4. Use of proper language, tone and contents of message:

For an effective communication the words, tone and symbols used in message must be selected very carefully. The
language used should not offend the sentiments of listener. The symbols used in message must be known to the listener.

5. Proper feedback:
Feedback helps to know the effect or success of communication given by sender. Communication is complete only when
the message is understood by the receiver.

We can never know whether receiver has understood the message or not unless we get the feedback. Feedback also
provides opportunity for suggestions and criticism.

6. Communication for the present as well as for future:

Communication must meet the need of present organisation as well as for future organisation. There must be consistency
in the past, present and future communication.

7. Follow up communication:
There should be proper follow up of the information given by manager to subordinate. This follow up helps to remove
hurdles, misunderstanding of instructions given by manager to subordinates.

8. Good listener:
The sender must listen to receivers words alternatively; on the other hand receiver must also listen with due attention.
Patient and attentive listening solve many problems.

9. Open mind:
The parties to communication must have open mind. They should not try to withhold information for their personal
interest. They should not react before receiving and listening the full message.

10. Completeness of message:

A message is effective only when it is given completely. The receiver should not be left guessing. It may lead to
misunderstanding. A complete message carries all necessary facts and figures.

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Verbal and Non-Verbal Communication
1. Verbal Communication Written, Oral:
The word verbal means connected with words and use of words. Any communication using words is verbal
communication.

Words are the most precise and powerful sets of symbols. Words denote as well as connote meanings. That is why all
serious or formal communication is usually in words. Words, as we are all aware, can be written or spoken.

Thus, verbal communication can further be divided into two types:

(a) Oral Communication:
A wound inflicted by speech is more painful than a wound inflicted by a sword. As the term itself suggests,
communication through the spoken word is known as oral communication. Of the working time spent in verbal
communication, 9 % is in writing, 16 % in reading, 30 % in speaking and 45 % in listening.

In oral communication, words should be chosen very carefully so that what they connote has the precise shade of
meaning. The sender of the message or his representative is usually the speaker, while the receiver or his representative,
the listener. Listening is also an important aspect of oral communication.

Merits of oral communication:

(i) Saving of time and money:
(ii) Immediate feedback:
(iii) Saves paperwork:
(iv) An effective tool for exhortation:
(v) Builds a healthy climate:
(vi) Best tool during emergency

Demerits of oral communication (limitations):

(i) Greater chances of misunderstanding
(ii) Bad speaker
(iii) Ineffective for lengthy communication
(iv) Lower retention rate
(v) No legal validity
.(vi) Difficult to fix responsibility

(b) Written communication:

A message constitutes written communication when it is put in black and white. It is a formal type of communication.
The sender of the message or his representative constitutes the writer.

Written communication is usually considered binding on business organizations and is often used as evidence.
Technological advancement has enlarged the gamut of written communication through email and other such facilities.

Merits:
(i) Precise and accurate
(ii) Easily verified
(iii) Permanent record
(iv) Suitable for lengthy and complicated messages
(v) Responsibility can be easily fixed
(vi) Has legal validity
Demerits:
(i) Slower method of communication
(ii) Further delay if clarifications are required
(iii) Leads to too much of paperwork
(iv) Always a possibility of ambiguity or lack of comprehensibility
(v) Costly in terms of money and man-hours
(vi) No flexibility
(vii) Literacy essential

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2. Non-Verbal Communication:
Scientific analysis has shown that body movements and gestures constitute 55% of effective communication. Hence, non-
verbal communication merits great consideration.

Non-verbal communication involves things such as gestures, posture, physical appearance etc. It takes place without
written or spoken words.

Non-verbal communication is those messages that are expressed by means other than linguistic. While you can refuse to
speak or write, it is impossible to avoid behaving non-verbally.

Non-verbal communication is classified here in two different ways:

1.Visual Aids:
A visual aid is an illustration in tabular, graphic, schematic or pictorial from. Visual aids help communicators to get their
message across more effectively to their audience. Visual aids help by making the material more interesting, clarifying
and simplifying complex subjects and highlighting important points for better retention by the audience.

A checklist for creating effective visuals is given below:

(i) Visuals should be simple and easy to understand and the design and layout should contribute to the overall
understanding of the subject.

(ii) Visuals should depict the data accurately and important points should be emphasized.

(iii) Visuals should be appropriate for the intended audience.

(iv) Care should be taken that the type-face and fonts are clear and readable and the captions short and informative.

II. a. Body language or kinesics body movement, facial expressions, posture, etc.

b. Vocal characteristics paralanguage

c. Space proxemics

d. Surroundings

e. Silence

Kinesics:
The study of bodily movement stoat form a part of non-verbal communication is known as kinesics. It is an integral part
our communication. Existence as a receiver is supposed to observe non-verbal communication 55% of the time. Our body
consciously as well as unconsciously, conveys messages, moods attitudes etc. in the same way as language uses sets of
symbols to convey meaning.

Body language:
Body language stands for the way the body communicates without words, through the movement of its parts. The nodding
of our heads, blinking of our eyes, waving of our hands, shrugging of our shoulders, etc., are expressions of our thoughts
and feelings.

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All these movements are the signals that our body sends out to communicate. That is why this area of study has been
called body language. Just as language uses sets of symbols to convey meaning, our body, consciously as well as
unconsciously, conveys messages, attitudes, moods, status relationships, etc.

The body language is very important. It has been observed that we may play fast and loose with words, but our body
speaks out the truth. Even if we try to hide the truth or anything that we want to suppress, our body, our eyes, our gestures
may speak out loud and clear.

Paralanguage:
The world of communication that involves signs, signals, pitch, tone and fluctuations to convey meaning is paralanguage.
Para means like or akin. Paralanguage means like language, but not actually a language.

Anything that performs the task of communication as a language without being a language in the conventional sense of
the word falls within the purview of paralanguage. Paralanguage is used to describe a wide range of vocal characteristics
which help to express and reflect the speakers attitude. It is non-verbal because it does not consist of words.

Verbal communication is concerned with the content of the message what is being conveyed? On the other hand,
paralanguage is concerned with the manner in which the message is conveyed how is it being conveyed?

Paralanguage depends on voice, intonation, pitch, pause, volume, stress, gestures, and signals. Through pitch and volume
variation, stress on words, etc. ones voice can convey enthusiasm, confidence, anxiety and the speakers mental state and
temperament.

Proxemics or territory or space:

Proxemics is another important type of non-verbal communication. The term, proxemics is derived from the word
proximity, which means closeness. Proxemics is used with reference to space or territory. A lot of communication takes
place non-verbally through the sheer manner in which we use the space around us.

Scholars have also attributed a lot of non-verbal communication to the colour, design, layout and utilisation of the space
around us. This is also proxemics.

Surroundings:
How you organize the surroundings also contributes to the communication. The room where you meet your visitors may
be dazzling or simple. It may be gaudy or sober. The decor of the place, the furniture, and the artistic pieces that adorn
your office, tell about yourself and your taste.

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