Module-3 (Management Function Behaviour

Management Functions & Behaviour 77
Unit - III : Individual

Notes
Structure
3.1 Learning,
3.2 Perception
3.3 Personality
3.4 Conflict Management
3.5 Motivation and Job Performance
3.6 Co-ordination
3.7 Communication
3.8 Decision Making.
Objective
After studying this unit you will understand
 Variety of personal aspects which play a role in shaping individual behavior
 Impact of surrounding factors on individual behavior
 How organisation resources & systems are foundation to individual behavior
 How individual behavior is influenced by psychological factors
Introduction
Learning can be defined as a relatively permanent change in the cognition, which is
reflected by the change in the action or behavior of the individual. Sometimes learning
brings subtle changes in the cognition and only slightly changes the behavior as the
changes happen only internally. Learning is closely related to our memory, our brain
stores data in neurons by the electrochemical changes.
Theories of learning
1. Social Learning Theory (Bandura)
According to this theory of learning, people learn through observing behavior,
attitudes, and outcomes of those behaviors of others’. These observations are made
from our early childhood. A child start learning from observing the behaviors of their
parents, siblings etc when later on he learn from observing the world around him, like
the neighborhood, school, friends etc. The observations made become the basis of the
actions or behaviors in the future, the individual behave according to the observation
being made by him e.g. child by observing his parents learn various actions & in
near future he will also start performing the similar actions. The observations made
by the individual make some cognitive changes in him & based on its application &
his personal experience he will strengthen or modify such learning. Social learning
theory explains human behavior in terms of continuous reciprocal interaction between
cognitive, behavioral, and environmental influences.
The learning through observation learning is influenced by following factors
 Attention — The attention of the observer will decide the learning & its outcome.
The attention will depend upon various factors attraction, distinctiveness, affective
valence, prevalence, complexity, functional value. Levels of attention also depend
on the individual’s characteristics e.g. sensory capacities, arousal level, perceptual
set, past reinforcement etc.
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78 Management Functions & Behaviour
 Retention — It is the amount of memorizing or retaining the observation in your mind

Notes by coding the observation & its constituents. When an individual observe by symbolic
coding, mental images, cognitive organisation, symbolic rehearsal, motor rehearsal etc
the details of observation is recorded in the brain. The level of retention will depend on
the attention level of the individual in recording he details of the observation.
 Reproduction — It is the process of performing or repeating the observed behavior

or action by the observer & evaluating it. It is the change in the behavior or actions
of the individual after the learning.
 Motivation — It is having a good reason to imitate the observed behavior the level
of motivation depends on the attractiveness of the observation & its outcomes,
perceived incentives & need of the observer.
According to Bandura this theory defines the concept of “reciprocal determinism”,

that is, the world and a person’s behavior cause each other, while behaviorism
essentially states that one’s environment causes one’s behavior. Bandura considered
personality as an interaction between three components: the environment, behavior,
and one’s psychological processes (one’s ability to entertain images in minds and
language).
2. Classical Conditioning (Ivan Pavlov)

Several types of learning exist. The most basic form is associative learning, i.e.,
making a new association between events in the environment. There are two forms of
associative learning: classical conditioning (made famous by Ivan Pavlov’s experiments
with dogs) and operant conditioning.
Russian physiologist Ivan Pavlov did Nobel prize-winning work on digestion. While
studying the role of saliva in dogs’ digestive processes, he accidentally discovered that
there is some relation between the stimuli or sounds just before the meat powder was
presented & the salivation process of the dog.
Fascinated by this finding, Pavlov paired the meat powder with various stimuli such
as the ringing of a bell. Repeatedly the bell was rung just before the meat powder is
given to the dog. Later on only bell was rung but no meat powder was given, but as
predicted, dog responded by salivating to the sound of the bell (without the food). The
bell began as a neutral stimulus (i.e. the bell itself did not produce the dogs’ salivation).
However, by pairing the bell with the stimulus that did produce the salivation response,
the bell was able to acquire the ability to trigger the salivation response. Pavlov
therefore demonstrated how stimulus-response bonds (which some consider as the
basic building blocks of learning) are formed. He dedicated much of the rest of his
career further exploring this finding.
In technical terms, the meat powder is considered an unconditioned stimulus (UCS)

and the dog’s salivation is the unconditioned response (UCR). The bell is a neutral
stimulus until the dog learns to associate the bell with food. Then the bell becomes a
conditioned stimulus (CS) which produces the conditioned response (CR) of salivation
after repeated pairings between the bell and food.
3. Reinforcement Theory ( B.F. Skinner )

According to B.F. Skinner learning is a function of change in overt or visible
behavior. According to Skinner individual respond to events (stimuli) that occur in
the environment, it is the consequences that will determine whether the action or
behavior will be repeated or not by the individual. So we can condition the behavior
of the individual by altering the consequences to the responses towards stimuli. The
consequence which strengthen the desired behavior is known as reinforcer

One of the distinctive aspects of Skinner’s theory is that it attempted to provide
behavioral explanations for a broad range of cognitive phenomena. For example, Notes
Skinner explained drive (motivation) in terms of deprivation and reinforcement
schedules. Skinner (1957) tried to account for verbal learning and language within the
operant conditioning paradigm, although this effort was strongly rejected by linguists
and psycholinguists. Skinner (1971) deals with the issue of free will and social control.
Reinforcement theory is the process of shaping behavior by controlling the

consequences of the behavior. In reinforcement theory a combination of rewards and/
or punishments is used to reinforce desired behavior or extinguish unwanted behavior.
Any behavior that elicits a consequence is called operant behavior, because the
individual operates on his or her environment. Reinforcement theory concentrates on
the relationship between the operant behavior and the associated consequences, and
is sometimes referred to as operant conditioning.
Background and Development of Reinforcement Theory

Behavioral theories of learning and motivation focus on the effect that the
consequences of past behavior have on future behavior. This is in contrast to classical
conditioning, which focuses on responses that are triggered by stimuli in an almost
automatic fashion. Reinforcement theory suggests that individuals can choose from
several responses to a given stimulus, and that individuals will generally select the
response that has been associated with positive outcomes in the past. E.L. Thorndike
articulated this idea in 1911, in what has come to be known as the law of effect. The
law of effect basically states that, all other things being equal, responses to stimuli that
are followed by satisfaction will be strengthened, but responses that are followed by
discomfort will be weakened.
B.F. Skinner was a key contributor to the development of modern ideas about
reinforcement theory. Skinner argued that the internal needs and drives of individuals
can be ignored because people learn to exhibit certain behaviors based on what
happens to them as a result of their behavior. This school of thought has been termed
the behaviorist, or radical behaviorist, school.
Reinforcement, Punishment, and Extinction

 Positive reinforcement:- When the desired behavior by the individual result
in favorable or desirable consequence. When individual receive the favorable
consequence he will try to repeat the action so as to get the same consequences
e.g. an appreciation letter by manger to a team leader to complete the project before
time will increase the probability that the team leader will show similar behavior in
future.
 Negative reinforcement:- Results when an undesirable behavioral consequence

is withheld, with the effect of strengthening the probability of the behavior being
repeated. Negative reinforcement is often confused with punishment, but they are
not the same. Punishment attempts to decrease the probability of specific behaviors;
negative reinforcement attempts to increase desired behavior, e.g. a sales manager
being more lenient towards a sales executive achieving higher sales volume. This
lenient behavior will prompt the sales executive to achieve higher sales on a regular
basis.
 Punishment:- When an undesirable action or behavior is subjected to undesirable

consequence, this prompts the individual not to repeat the same behavior is
known as punishment. e.g. when an employee comes on duty in drunk condition
the manager didn’t allow him to work & deduct the wages of that day in attempt

to modify the behavior is a punishment. Here coming on duty in drunken condition

Notes is the undesirable behavior for the organisation, removing the worker from work &
deducting his wages for the day is the undesirable consequences for the employee.
By this way the employee will not repeat this behavior as his actions met with the
undesirable consequences. Punishments are used in an attempt to decrease the
probability of specific behaviors being exhibited. Punishments should be used with
caution as irresponsible and frequent use of this will result in demotivation of the
employees or its efficacy will also be lowered.
 Extinction:- It is a process of withholding a desirable or favorable consequence as

a result of undesirable behavior in an attempt to modify the behavior is known as
extinction. Similar to punishment in that its purpose is to reduce unwanted behavior.
e.g. the promotion or increment of an employee is withheld due to his irregularities
in the working, this withholding of a desirable consequence will prompt the
individual to modify his behavior & show betterment in his job to get the promotion
or increment.
Schedules of Reinforcement
The timing of the behavioral consequences that follow a given behavior is called
the reinforcement schedule. Basically, there are two broad types of reinforcement
schedules: continuous and intermittent.
 Continuous reinforcement:- It is a schedule of reinforcement where a behavior

is reinforced each time it occurs. This type of reinforcement is the fastest way to
establish new behaviors or to eliminate undesired behaviors. But it is not consistent
in its efficacy & not feasible and practical in an organisation
 Intermittent reinforcement: - It is a schedule of reinforcement where each instance

of a desired behavior is not reinforced. The reinforcement is done intermittently,
based on the frequency & proportion of consequence to behavior we can define
four types of intermittent reinforcement schedules: fixed interval, fixed ratio, variable
interval, and variable ratio.
 Fixed interval schedules of reinforcement:- When desired behaviors are

reinforced after set periods of time e.g. monthly salary, annual increments etc.
 Fixed ratio schedule of reinforcement:- When reinforcement is done after a set

number of occurrences of the desired behaviors e.g. the incentive to a sales officer
is only given when he surpasses the given targets.
 Variable interval reinforcement schedules:- When desired behaviors are

reinforced after varying periods of time. Usually the timing is not know by the
individual examples of variable interval schedules special incentive or promotion to
an employee showing better performance.
 Variable ratio reinforcement schedule:- When the reinforcement is done after a

number of desired behaviors have occurred, the number of occurrence is variable
depending on other factors ,e.g. the percentage of sales incentive depending on the
percentage achievement of the sales target.
Reinforcement Theory Applied to Organisational Settings

Probably the best-known application of the principles of reinforcement theory to
organisational settings is called behavioral modification, or behavioral contingency
management. Typically, a behavioral modification program consists of four steps:

 Specifying the desired behavior as objectively as possible.
Notes
 Measuring the current incidence of desired behavior.
 Providing behavioral consequences that reinforce desired behavior.
 Determining the effectiveness of the program by systematically assessing

behavioral change.
Reinforcement theory is an important explanation of how people learn behavior. It

is often applied to organisational settings in the context of a behavioral modification
program. Although the assumptions of reinforcement theory are often criticized, its
principles continue to offer important insights into individual learning and motivation.
Operant Conditioning
According to operant conditioning theory of learning if the responses to behaviors
are favorable or desirable then the individual will try to repeat or further improve that
behavior in future and if the responses to behaviors are not favorable and desirable
then the behaviors will be altered or not repeated. So the behaviors are the function
of its consequences. It emphasizes on voluntary behaviors and the responses one get
from the environment.
Cognitive theory of learning

According to cognitive theory of learning, it is a process that represents changes in
the content, organisation and storage of information within the individual and can’t be
represented only by changes in the behavior, secondly the learner control the process
of learning by selecting what is significant or insignificant to him.
The learning is through two processes accommodation and assimilation, where

accommodation is the process of changing content by addition of new information and
assimilation is the incorporation of new experience in to existing categories.
Experiential Learning Theory (David Kolb)

Cycle of Learning:- It is the main principle of experiential learning theory,
and expressed as four stage cycle of learning begin with ‘immediate or concrete
experiences’ which provide a basis for ‘observations and reflections, which are
assimilated and distilled into ‘abstract concepts’ producing new implications for action
which can be ‘actively tested’ in turn creating new experiences.
According to Kolb a learner will go through a cycle of experiencing, reflecting,

thinking, and acting.
Kolb’s model therefore works on two levels - a four-stage cycle:

 Concrete Experience - (CE)
 Reflective Observation - (RO)
 Abstract Conceptualization - (AC)
 Active Experimentation - (AE)
Based on the above Kolb had defined four styles of learning

 Diverging (CE/RO)
Notes
 Assimilating (AC/RO)
 Converging (AC/AE)
 Accommodating (CE/AE)
According to experiential learning if we know the orientation of learner then we can

use a preferred method to make him learn the new things.
Here are brief descriptions of the four Kolb learning styles:
 Diverging (feeling and watching - CE/RO) - These people are able to look at
things from different perspectives. They are sensitive. They prefer to watch rather
than do, tending to gather information and use imagination to solve problems. They
are best at viewing concrete situations several different viewpoints. Kolb called
this style ‘Diverging’ because these people perform better in situations that require
ideas-generation, for example, brainstorming. People with a diverging learning style
have broad cultural interests and like to gather information. They are interested in
people, tend to be imaginative and emotional, and tend to be strong in the arts.
People with the Diverging style prefer to work in groups, to listen with an open mind
and to receive personal feedback.
 Assimilating (watching and thinking - AC/RO) - The Assimilating learning

preference is for a concise, logical approach. Ideas and concepts are more
important than people. These people require good clear explanation rather than
practical opportunity. They excel at understanding wide-ranging information and
organising it a clear logical format. People with an Assimilating learning style are
less focused on people and more interested in ideas and abstract concepts. People
with this style are more attracted to logically sound theories than approaches based
on practical value. These learning style people are important for effectiveness in
information and science careers. In formal learning situations, people with this style
prefer readings, lectures, exploring analytical models, and having time to think
things through.
 Converging (doing and thinking - AC/AE) - People with a Converging learning

style can solve problems and will use their learning to find solutions to practical
issues. They prefer technical tasks, and are less concerned with people and
interpersonal aspects. People with a Converging learning style are best at finding
practical uses for ideas and theories. They can solve problems and make decisions
by finding solutions to questions and problems. People with a Converging learning
style are more attracted to technical tasks and problems than social or interpersonal
issues. A Converging learning style enables specialist and technology abilities.
People with a Converging style like to experiment with new ideas, to simulate, and
to work with practical applications.
 Accommodating (doing and feeling - CE/AE) - The Accommodating learning

style is ‘hands-on’, and relies on intuition rather than logic. These people use
other people’s analysis, and prefer to take a practical, experiential approach.
They are attracted to new challenges and experiences, and to carrying out plans.
They commonly act on ‘gut’ instinct rather than logical analysis. People with an
Accommodating learning style will tend to rely on others for information than carry
out their own analysis. This learning style is prevalent and useful in roles requiring
action and initiative. People with an Accommodating learning style prefer to work

in teams to complete tasks. They set targets and actively work in the field trying
different ways to achieve an objective. Notes
Perception
Perception can be defined as an intellectual process of receiving data from the
environment, organising it & interpreting it in to meaningful information. Perception is a
way to understand things around us and define our world.
Perception is influenced by three factors: Characteristics of perceived,

Characteristics of perceiver and situation.
The flowchart of perception can be represented as follows.
Stimuli: - it can be defined as changes in the environment; these changes can be

detected by us through external or internal manner. Based on the nature and extent
of changes we try to understand our world. These changes can be of various types
like changes in physical world, changes in processes, changes in behavior, attitude and
reaction of individuals etc.
Receiving:- the changes in our environment is detected by receiving data through

our sensory organs like eyes, ears, nose, tongue, skin and kinesthesia. We also
receive data from our environment internally like the waves, the energy in the body, the
emotions like enthusiasm or anger etc.
Perceptual Selection or Attention:- when there are changes in our environment,

these stimuli will get selective attention due to certain external and internal factors.
We tend to pay variable attention to the different stimuli some changes will be ignored
completely and some might get our full attention or concentration.

External factors which influence perceptual selection

Notes  Nature:- It means the data is received by which sensory skills, i.e. whether the
object of perception is visual, auditory, touch etc. each data set will receive variable
attention by the receiver e.g. visual data will have more impact s compared to only
auditory data.
 Size:- If the size of the object is larger than the rest then it will have more attention
e.g. a tall employee in the team will be noticed more prominently compared to
others.
 Color:- Color of the objects will receive attention based on their impact e.g. if we
see a food item in blue color it will gain more attention, similarly blue colored office
brings restful & cold feeling, red is associated with stimulation, energy & intensity,
also associated with danger.
 Location:- The location of the object of perception will also responsible for the
variable attention received e.g. the advertisement on the cover page will receive
more attention as compared to others, students sitting in the first row will receive
more attention of the lecturer.
 Contrast:- Thing which stands out from the rest of the back ground will receive
more attention e.g. a non uniformed employee will receive attention where all other
employees are in uniforms. Similarly danger signs painted in red will receive more
attention as compared to other signs painted in other color.
 Movement:- Things which are in motion will receive more attention as compared to
things which are stationery. A moving car in a parking lot will receive more attention
then the stationery cars.
 Repetition:- If the things are of repeating nature then it receives more attention
e.g. by repetitive instruction the supervisor is able to ensure that the work is done
as desired, the repetition of advertisement on television will lead to better brand
awareness.
 Novelty & Familiarity:- New thing in familiar setting & familiar thing in new setting
will receive more attention e.g. a new car in your apartment’s parking or your kid in
the crowd of his school will be easily recognized by you.
Internal factors that influence perceptual selection

 Needs:- Based on our needs we become selective of the data received by us e.g.
person feeling hungry will only be more receptive towards things that resembles
food, similarly when a customer is in need of buying a car he become more
attentive to the advertisements of the car in the TV or newspaper even though
these advertisement were frequent.
 Learning:- The learning is the information we had acquired through our observation
& experience in life, based on our learning we acquire our attitude, behavior, with
the information we have we analyze the data coming to us, so perceptual selection
is also influence by our learning e.g. a person having experienced difficult situation
will express calm & composure in unfavorable situations in the organisation where
as a person with less learning may become frustrated.
 Interest:- The perceptual selection will also be affected by the interest of the receiver
e.g. the same situation or object can be perceived by different people with different
needs differently e.g. flyover bridge in a city can be seen as the sign of growth by
economist, a superior design by an architect & a piece of an art by a painter.

 Age:- Selective perception is also influence by the age of the receiver because our
thinking is influenced by age as well e.g. the old people will think more before taking Notes
a decision where as young people will try to take decisions in a hurry. Similarly old
people have a perception about young as irresponsible whereas young believe that
old people are inflexible & rigid change.
Perceptual Organisation: - It is a mental process to organize the stimulus received

from the environment in to some recognizable set of data or pattern, this organisation of
data is based on our state of mind, situation and learning. There are various principles
by which we organize the data received by us.
Figure Ground Principle: - When we receive data from our environment, based
on certain factors a portion of it is considered significant and considering it we try to
make out something meaningful of the whole situation, the other portion is considered
insignificant and not useful for making any understanding. This grouping of the total
stimuli into significant and insignificant portion is known as figure ground principles.
The portion of the stimuli which is considered significant is known as figure and the
insignificant portion is known as ground. The perception will change dramatically
depending upon the consideration that what is figure and what is ground. The definition
of figure and ground depends on factors like need, motivation and interests etc.
Ambiguous Figure:- When the stimuli can be grouped in to more than one
recognizable set or pattern the organisation of the stimulus will depend on which
recognizable set the perceiver will give acceptance to interpret. Again this selection will
depend on the factors of perceiver, situation etc.
Perceptual Grouping:- It is the phenomenon to group objects, individual and events

based on some factors like similarity, proximity, closure, continuity and area etc.
 Principle of similarity:- We tend to see similar things as one group, so employees

wearing similar clothing or uniforms will be perceived to be from same department
or same level in hierarchy.
 Principle of proximity:- The phenomenon to see things in close proximity as a

group e.g. the employees working in close proximity within the organisation can
be considered as one group, employees having lunch together in canteen can be
considered a group and perceived as friends.
 Principle of closure:- The phenomenon to perceive things as continuous even

when there are gaps, the gaps is filled by us to make something meaningful out of
it e.g. read this “perception cn b dfined as prcess of recving orgning and itreprting
stimuls”. Even though many of the alphabets were missing but we can read it into
something meaningful.
 Principle of continuity:- The phenomenon to perceive things as a continuous pattern.
 Principle of area:- Tendency to classify things as figure or ground based on

the size, thing which is smaller will be considered as figure and the large will be
considered as ground.
 Principle of constancy: - It is the phenomenon to perceive certain characteristics

of an object as remaining constant, even when we receive stimuli expressing
contradictory information. e.g. a worker who’s reputation is of notorious and
irregular worker is being nominated by supervisor for incentive as he achieved a
superior performance will be considered as unjust decision taken by the supervisor,

as manager perceive that worker as notorious and irregular. By using the principle
Notes of constancy we try to bring stability in our world.
 Principle of simplification:- The phenomenon of simplifying things to understand

by eliminating less salient things and concentrating only on prominent things, this is
done due to limitation of time, energy and over flow of stimulus in the environment.
Interpretation
Interpretation is the process of making out some meaningful out of the situation and
understanding of it. This meaning or understanding will result in to reactions or changes
in our cognition or behavior. Interpretation can be influenced by a variety of factors like
 Perceptual Set: - It is also known as mindset, our interpretation about a situation will
depend on our beliefs and notions and we will try to interpret things in the light of it.
 Attribution:- The process by which try to assign causes to the behaviors of

individual or stimulus in the environment, one of the significant process of
interpretation is to find out the cause. So if there is a change in behavior of an
employee the manager will try to assign causes of such changes.
 Stereotyping: - The process when we perceive a thing according to already known

or perceived general categories is known as stereotyping e.g. conductors of private
bus operators will always be perceived as rude, a labor will be considered as less
intelligent, doctors and engineers will be considered more intelligent etc.
 Horns & Halo effect:- The process of perceiving thing entirely on the basis
of only one trait or impression about it, known as horns & halo effect. If the trait
or impression is favorable then it is called halo effect and if the impression is
unfavorable then it is called horns effect. e.g. a manager having good impression
about a supervisor will not take a complaint seriously against him.
 Expectancy:- To expect the behavior or traits based on only one known trait e.g.
if we know a person to be the manager we interpret him to be intelligent, good
communicator and having lots of authority over others.
 Projection:- To perceive similar traits in a person if he has one trait common

between self. E.g. if a doctor come to know that a person he is talking with is also a
doctor then he will converse in a way doctors usually talk and will also use jargons
used by doctors perceiving him to understand it easily.
 Perceptual context:- It is in what context we perceive a particular stimulus

because the context will change our perception greatly e.g. within organisation
there are certain conventions being followed and a behavior within the organisation
will be interpreted in different manner as compared shown outside the organisation.
 Perceptual Defense:- It is the mechanism to defend the previously held belief or

perception about a thing when confronted with contradictory or threatening stimuli.
There can be four kinds of reactions to contradicting or threatening stimuli which
can be represented as
1. Denial: - We straight away reject the stimuli and deny that a contradictory thing
is possible.
2. Modification: - As we are not ready to accept a contradictory stimulus
we make necessary modification to the facts so as to accept in line with the
previously held beliefs and perceptions.

3. Refusal to change:- We accept that the contradictory is possible but we are
not accepting it which is threatening to our perceptual set. Notes
4. Acceptance:- People will accept and change their perception.
Attribution theory of Harold Kelly

Whenever we judge behavior of others we attribute various causes for such
behaviors. These causes can be internal that resides within the person like his
nature, temper, motivation etc or external like the conditions to which he is being
subjected to. According to Kelly model, a person makes such judgments based on
following cues.
 Consistency cues:- If a pattern of behavior is consistent i.e. person behaves in

same fashion at different time under similar situation then behavior is considered to
be caused by internal factors.
 Consensus cues:- When a person acts differently from other people or behaves
differently than expected, when the expectations are based upon the expected
behaviors of other people then such behaviors is termed as the person’s true
motives & these are considered to be internally generated.
 Distinctive cues:- Distinctiveness refers to the extent to which the same person
behaves in the same fashion in different situations. Distinctive behaviors are those
that are relatively unique to a situation.
Attribution Error
Fundamental attribution error:- The phenomenon to underestimate the significance
of external factors & overestimates the internal factors when making attributions about
the behaviors about others. It is known as fundamental attribution error. e.g. if there
is an accident in a plant the manager will attribute it to carelessness of staff and not a
failure of machine.
Self serving bias:- The phenomenon to attribute their achievement & success
caused by internal factors and attribute external factors in case of failure is known as
self serving bias.
Personality
“Every Human Being is a Unique Creation of GOD”
Personality can be defined by the relatively permanent set of psychological and
physical behavioral attributes that makes a person distinctive from others. In other
words personality is the mind set, perception and actions of a person which makes one
person different from others.
Whenever we receive data from our external environment through our sensory
organs we analyze it on the basis of the information we already have in our mind and
based on our perception we create something meaningful out of it which guides our
behavior or action towards such stimuli. This is called as personality.
Personality can be expressed as internal and external elements the internal

elements are the actions and behaviors like dress sense, way of communication, style
of walking and doing things etc. which is visible to others. These external elements can
be observed and analyzed by others to define the personality of others. The internal
elements include the thought process, mindset, value system which is intangible we

can not observe them we can only know there presence through the actions of the
Notes individuals only & this interpretation is correct to a certain extent.
It is considered that personality is relatively stable and it only changes with passage
of time or some significant observation or learning by the individual.
The personality of a person is shaped by three things, genetic material of the

person, his observation towards response and stimulus, the learning through education,
experience etc. based on the above we can say that every individual is having entirely
different personality.
Personality of a person can be determined by following factors

Heredity factors: - Heredity factors are the set of information which passes from one
generation to other through the genetic material. Many of our physical attributes and
mental framework is defined by our genes. The heredity will define whether a person
will be tall or short, thin or fat, fair or dark etc, apart from these physical attributes our
basic nature is defined by our heredity. The basic instincts of human beings like fight
or flight, hunger and thirst or sexual attraction etc are all being defined by our heredity.
Heredity is also responsible for emergence of diseases like diabetes, Alzheimer, cardio
vascular diseases etc. Scientists also claim to conclude through their researches that
heredity is also responsible for typical set of mental abilities like individuals having more
ability in reasoning or logics or in mathematical calculations etc.
Biological factors: - The biological factors of a person like age, sex etc also plays
a decisive role in forming the personality of a person.
Family and Social factors: - After the heredity the family in which the child grows
has a tremendous influence on his personality. It is the family from which the child
begins to socialize and understand the world around him. Individual from his beginning
observe his parents and siblings and imitate them in actions. These copying of actions
develop the personality of the person. The family teaches the ethics, value and cultural
aspects which acts as a guiding principles for to govern actions in future. After family
the next is other social factors like neighborhood in which an individual lives, the school
or college to which he go, the friend circle of parents and self and the society in general
define the personality of the person.
Individual learns from these social factors things like acceptable and unacceptable
behaviors, the reactions of the society towards such behaviors, such things help in
defining his own set of behaviors crafting his personality.
Religion- Religion followed by the individual also define the personality of an

individual, because when an individual have faith in a particular religion he follows
the tenants of that religion and try to copy the behaviors which are considered more
beneficial or sacred and abstain from doing the things which are prohibited. Based on
these perceptions his personality is developed. e.g. a person having faith in Islam will
abstain from eating pork products or from eating during periods of Ramzan and he will
also consider others as inferiors if they do eat pork products.
Environmental factors:- The environment in which the individual live including his
surrounding, home and the area of activity also shape the personality, the things which
we observe on a continuous basis in our life, the daily activity in which we are engaged,
our society, work area etc changes the way we think and act.
Experience:- The experience a person get through in his life also shape the
personality of a person, in life when individual observe or experience things, he learn

new things, his perception changes and his personality is modified. Experience helps to
testify the knowledge and perception of an individual. Notes
Education:- The education also mould the personality to greater extent, through
education an individual learn various new things, he his able to acquire new and more
practical knowledge which he can use in his life. With education individual comes
through various other principles and concepts which makes the data set with the
individual more broader. His perception towards things and understanding power is
also enhanced. The level and type of education can also reshape total personality of a
person.
Many experts and researchers had done extensive research at varying times to
know and define personality and their types; based on their work various personality
theories have been formulated. Following is the list of such classification of theories for
personality.
1 Type theory: - These theories of personality try to define the personality on the
basis of their physical and psychological identifiable features and actions.
The earliest known type theory is given by Greek physician Hippocrates (c. 400
B.C.), considered as father of medicine, he characterized human behavior in terms of
four temperaments, each associated with a different bodily fluid, or “humor.”
1. The sanguine, or optimistic, type was associated with blood.
2. The phlegmatic type (slow and lethargic) with phlegm.
3. The melancholic type (sad, depressed) with black bile.
4. The choleric (angry) type with yellow bile.
According to him the amount of each of the four humors shape the personality of a
person.
Carl Jung’s theory of personality

Carl Jung based on the psychological elements has stated that personality can be
classified as introvert and extrovert
Introvert is a person who is more aware of his or her inner world. He gives more
significance to thinking and pondering over dreams. According to them the external
behaviors are less important as compared to internal thoughts. The introverted
attitude is more concerned with subjective appraisal. Introverts are shy, quite and they
try to remain in solitude. They don’t like the company of people and avoid too much
communication.
The extrovert is characterized by the outward movement of psychic energy. This

attitude places more importance on objectivity and gains more influence from the
surrounding environment than by inner cognitive processes. They are more social and
express more significantly. The outward expression or action and communication are
also one of their characteristics.
Each person can have qualities of both attitudes, considering both subjective and
objective information.

Jung’s Four Functions of Personality

Notes Jung also defined four functions that, when combined with one of the two attitudes,
introvert and extrovert gives eight different personality types. These functions are
Feeling:- The method by which a person understands the value of conscious activity.
Thinking: - Ability to understand the meanings of things. This process relies on logic
and careful mental activity.
Sensation: - Refers to the means by which a person knows something exists.
Intuition: - Knowing about something without conscious understanding of where that

knowledge comes from.
The Eight Personality Types Defined by Carl Jung

Jung developed a theory of eight different personality types. Jung’s personality types
are as follows:
 Extroverted Thinking – Jung theorized that people understand the world through
a mix of concrete ideas and abstract ones, but the abstract concepts are ones
passed down from other people. Extroverted thinkers are often found working in the
research sciences and mathematics.
 Introverted Thinking – These individuals interpret stimuli in the environment

through a subjective and creative way. The interpretations are informed by internal
knowledge and understanding. Philosophers and theoretical scientists are often
introverted thinking-oriented people.
 Extroverted Feeling – These people judge the value of things based on objective
fact. Comfortable in social situations, they form their opinions based on socially
accepted values and majority beliefs. They are often found working in business and
politics.
 Introverted Feeling – These people make judgments based on subjective ideas

and on internally established beliefs. Oftentimes they ignore prevailing attitudes
and defy social norms of thinking. Introverted feeling people thrive in careers as art
critics.
 Extroverted Sensing – These people perceive the world as it really exists. Their
perceptions are not colored by any pre-existing beliefs. Jobs that require objective
review, like wine tasters and proofreaders, are best filled by extroverted sensing
people.
 Introverted Sensing – These individuals interpret the world through the lens of
subjective attitudes and rarely see something for only what it is. They make sense of
the environment by giving it meaning based on internal reflection. Introverted sensing
people often turn to various arts, including portrait painting and classical music.
 Extroverted Intuitive – These people prefer to understand the meanings

of things through subliminally perceived objective fact rather than incoming
sensory information. They rely on hunches and often disregard what they
perceive directly from their senses. Inventors that come upon their invention
via a stroke of insight and some religious reformers are characterized by the
extraverted intuitive type.

 Introverted Intuitive – These individuals, Jung thought, are profoundly influenced
by their internal motivations even though they do not completely understand Notes
them. They find meaning through unconscious, subjective ideas about the world.
Introverted intuitive people comprise a significant portion of mystics, surrealistic
artists, and religious fanatics.
Dr. William Sheldon Personality Theory

Dr. William Sheldon (1898-1977) was an American psychologist investigated the
range of human personality or temperament types. Sheldon stated that personalities
can be classified in three types which he called Viscerotonia, Somatotonia, and
Cerebrotonia. He propounded that these types are directly related to three human body
types ( or Somatypes ) namely Endomorph, Mesomorph and Ectomorph. Based on the
physique type and traits he had classified the personality of people as
 Endomorph:- Endomorphs were found to be related with Viscerotonia which

is being associated with a love of relaxation and comfort. They tend to be more
sociable, emotional and love food and people. As being focused on the digestive
system, particularly the stomach. Endomorphs are short and plump persons and
have far longer digestive tract. Endomorph is emotional towards their life and lives a
life with too many friends.
 Mesomorph:- Mesomorphs were found to be related with Somatotonics which is

being associated with physical assertiveness. Mesomorphs are tall and large, the
skeleton structure is strong and body is well build. They have a masculine body
and love to do physical activity. They love physical competition in which they tend
to expect to do well. They are considered noisy and callous by nature. Preferring
physical activities they tend to like physical activities like sports or work where
physical activity is more important.
 Ectomorph:- Ectomorphs were found to be related to cerebrotonia which is

associated with need of privacy and thinking type. They have a thin structure with
slight masculine body; these people are more focused about thinking and don’t like
physical activity. They have a high level of self awareness and avoid too much social
interactions in their life. Such personality love to do work where more concentration
and thinking is required, ectomorph prefer solitude over company.
Trait theory
Gordon Allport: Father of personality theory
Gordon Allport (1897-1967) is often called the father of personality theory: He was
very much a trait theorist and believed in the individuality and uniqueness of the person
and that people have consistent personalities. The trait is a consistent and enduring
attribute of a person which appears in a variety of situations. Trait can be extracted from
the behavior and serves as a useful unit for analysis.
Allport attempted to blend nomothetic and idiographic perspectives. He called this

blend the morphogenic approach. Allport believed that each person had traits of various
types and defined the traits in following manner.
 Individual: Traits possessed by one person
 Common: Traits possessed by many people
 Cardinal traits: One trait that dominates the person
 Central traits: Small number of traits important traits that may affect many
behaviours

 Secondary traits: Many consistent traits which are not often exhibited
Notes
 Motivational traits: Very strongly felt traits
 Stylistic traits: Less strongly felt traits.
Psychoanalytical theory: - According to Sigmund Freud, there are only two basic
drives that serve to motivate all thoughts, emotions, and behavior. These two drives
are, simply put, sex and aggression. Also called Eros and Thanatos, or life and death,
respectively, they underlie every motivation we as humans experience.
As you learn more about Freud’s theories, you’ll start to see a sexual pattern
develops, one that emphasizes sex as a major driving force in human nature. While
this can seem overdone at times, remember what sex represents. Sexual activity is
a means to procreation, to bringing about life and therefore assuring the continuation
of our bloodline. Even in other animals, sex is a primary force to assure the survival
of the species. Aggression, or the death instinct, on the other hand serves just the
opposite goal. Aggression is a way to protect us from those attempting harm. The
aggression drive is a means to allow us to procreate while at the same time eliminating
our enemies who may try to prevent us from doing so. While it sounds very primitive,
it must not be looked at merely as sexual activity and aggressive acts. These drives
entail the whole survival instinct and could, perhaps, be combined into this one drive: The
drive to stay alive, procreate, and prevent others from stopping or reducing these needs.
Looking at the animal kingdom it is easy to see these forces driving most, if not all, of
their behavior
Lets look at a few examples. Why would an adult decide to get a college degree?
According to Freud, we are driven to improve ourselves so that we may be more
attractive to the opposite sex and therefore attract a better mate. With a better
mate, we are more likely to produce offspring and therefore continue our bloodline.
Furthermore, a college degree is likely to bring a higher income, permitting advantages
over others who may be seen as our adversaries.
Freud’s Structural and Topographical Models of Personality

Sigmund Freud’s Theory is quite complex and although his writings on psychosexual
development set the groundwork for how our personalities developed, it was only one
of five parts to his overall theory of personality. He also believed that different driving
forces develop during these stages which play an important role in how we interact with
the world.
Structural Model (Id, ego, Superego)

According to Freud, we are born with our Id. The id is an important part of our
personality because as newborns, it allows us to get our basic needs met. Freud

believed that the id is based on our pleasure principle. In other words, the id wants
whatever feels good at the time, with no consideration for the reality of the situation. Notes
When a child is hungry, the id wants food, and therefore the child cries. When the child
needs diaper to be changed, the id cries. When the child is uncomfortable, in pain, too
hot, too cold, or just wants attention, the id speaks up until his or her needs are met.
The Id doesn’t care about reality, about the needs of anyone else, only its own
satisfaction. If you think about it, babies are not real considerate of their parents’
wishes. They have no care for time, whether their parents are sleeping, relaxing, eating
dinner, or bathing. When the id wants something, nothing else is important.
Within the next three years, as the child interacts more and more with the world,
the second part of the personality begins to develop. Freud called this part the Ego.
The ego is based on the reality principle. The ego understands that other people have
needs and desires and that sometimes being impulsive or selfish can hurt us in the long
run. It’s the ego’s job to meet the needs of the id, while taking into consideration the
reality of the situation.
By the age of five, or the end of the phallic stage of development, the Superego
develops. The Superego is the moral part of us and develops due to the moral and
ethical restraints placed on us by our caregivers. Many equate the superego with the
conscience as it dictates our belief of right and wrong.
In a healthy person, according to Freud, the ego is the strongest so that it can satisfy
the needs of the id, not upset the superego, and still take into consideration the reality
of every situation. Not an easy job by any means, but if the id gets too strong, impulses
and self gratification take over the person’s life. If the superego becomes to strong, the
person would be driven by rigid morals, would be judgmental and unbending in his or
her interactions with the world.
Topographical Model
Freud believed that the majority of what we experience in our lives, the underlying
emotions, beliefs, feelings, and impulses are not available to us at a conscious level.
He believed that most of what drives us is buried in our unconscious. If you remember
the Oedipus and Electra Complex, they were both pushed down into the unconscious,
out of our awareness due to the extreme anxiety they caused. While buried there,
however, they continue to impact us dramatically according to Freud.
The role of the unconscious is only one part of the model. Freud also believed that
everything we are aware of is stored in our conscious. Our conscious makes up a very
small part of who we are. In other words, at any given time, we are only aware of a
very small part of what makes up our personality; most of what we are is buried and
inaccessible.
The final part is the preconscious or subconscious. This is the part of us that we
can access if prompted, but is not in our active conscious. Its right below the surface,
but still buried somewhat unless we search for it. Information such as our telephone
number, some childhood memories, or the name of your best childhood friend is stored
in the preconscious.
Because the unconscious is so large, and because we are only aware of the very
small conscious at any given time, this theory has been likened to an iceberg, where
the vast majority is buried beneath the water’s surface. The water, by the way, would
represent everything that we are not aware of, have not experienced, and that has not
been integrated into our personalities, referred to as the nonconscious.

Machiavellianism:- Personality trait based on the way a person reach his goal,
Notes according to this theory we can classify individuals as high mach or low mach.
Characteristics of high mach person:-

 Who thinks that any means is justified as long as it result in achieving their
goals.
 Morality and ethics are for weak powerful persons should feel free to lie, cheat
and deceive wherever required to achieve their goal.
 High machs are confident, eloquent and competent and using these skills they
reach to higher order.
 High machs are often use the situations where their favorite tactics are most
likely to work.
 They can interact face to face with their intended victims and use their
persuasive skills to get their things done.
 They can use the emotions and feelings of other to manipulate their judgement
and decision making.
 Able to make alliances and use them for their own advantages.
 They believe that it is better to be feared than loved and is willing to do anything
to become more powerful.
Characteristics of low mach person:-

 They are the person who believes that not only the ends but also the means
should be justified.
 They are emotional and sensitive to the effects of their decisions on others.
 They believe in morality and any immoral act for achieving success is not for
them.
Theory of Type A and Type B behaviors

Meyer Friedman and Ray Rosenman two cardiologists while trying to identify
characteristics of individuals susceptible to cardiovascular diseases found that people
represent two types of behaviors Type A and Type B. According to them people having
Type A behavior are more prone to heart diseases as compared to Type B behaviors.
These behaviors can also be analyzed to throw some light on the personality of a
person. People having Type A behaviors can be identified by-
 Impatient in nature and over schedule them.
 Do things in a hurry even they talk very rapidly even missing the last words in
sentences.
 Try to do multitasking even when not required.
 Feel acquisitive of money & personal possessions.
 Feel threatened by the success of others.
 Over reactive towards others.

 Have nervous tics like clenching fists or banging hands on the table etc.
Notes
 Try to compare results in numbers only.
People having Type B behaviors can be identified by
 They are patient and composed.
 Don’t have time urgency.
 Emphasize quality rather than quantity
 Active in fun and recreation activity.
 Wise, not hasty and vary responses to specify challenges in their milieu.
 Their behaviors can’t be predicted with ease
Transactional Analysis
“Transactional Analysis (T/A) is one of the tools developed by behavioral scientists
which is used for “analysis of transactions” or understanding of communications that
occur between people. It is a rational approach to understanding behavior and is based
on the assumption that any person can learn to trust himself or herself, think rationally,
make independent decisions, and express feelings.
A “transaction” means any exchange or interaction that occurs between two or more
persons.Transactional analysis concerns itself with the kinds of communication - both
verbal and non-verbal -that occur between people. The emphasis of Transactional
Analysis is upon positive communication. Eric Berne M.D was the innovator and
developer of Transactional Analysis.
Benefits of Transactional Analysis

 Increases understanding of self and others.
 It decreases tendency to be critical of self and others.
 Reduces stress, frustration and anxiety levels.
Structural Analysis
According to Transactional Analysis theory, everyone’s personality has three parts,
called ego states. These ego states are named Parent, Adult, and Child.
Parent Ego State

Every one develops a Parent ego state when as children they absorb certain
attitudes and ways of behaving from parental figures. When you feel, think, or act as
you saw your parents (or other authority figures) act when you were little, you are in
your Parent ego state. While in your Parent, you may act in either a controlling,
sometimes critical way or in a nurturing, sometimes loving way.
Adult Ego State

Although we respond automatically when in our Parent, we respond analytically
when in our Adult. Whenever you are gathering information, reasoning things out,
estimating probabilities, and so on, you are in your Adult ego state. While in this ego
state you are cool and collected: you make decisions unemotionally. You just want the
facts.

Child Ego State

Notes In your Child ego state, you feel and act like the little person you once were. Your
Child has all of the feelings and impulses of a newborn. It also includes your mental
recordings of your: early experiences, reactions to these experiences, and learned view
of yourself and other people
Free or Natural Child (FC or NC)

This is the source of our spontaneity, energy and curiosity, with all our potential
for life. It represents the way we are when we are born - natural, loving, carefree,
adventurous and trusting - with all our capacities for leading a joyful and meaningful
existence. This part of us knows no rules and consequently operates without regard
for others and is unconcerned about their reactions. Witness the behaviour of the
twelve¬month-old exploring its environment! Of course, it would be impossible to
maintain the structure of a society on such a basis, and without some adaptations.
Adapted Child
As suggested, it does not seem possible to live in a continuous Free Child state
and live with other people at the same time. From an early age, we make adaptations
to help us get along with and get attention from authority figures, most notably our own
parents. Some of these may develop in line with general practice in our society, e.g.,
specific modes of eye and body contact; saying ‘please’, ‘thank you’ and ‘sorry’ at the
appropriate times; not making personal comments about others in public.
Note how uncomfortable we often feel with those who have not adapted to these
culturally agreed ways of behaving. Many more adaptations are unique to the particular
family and its situation, and are important in marking us out as individuals. Some
examples that create problems in adulthood and are relevant to organisations are
compliance, procrastination and rebellion.
Compliance
Some individuals learn when they are young that the way to get along is always
to say ‘yes’. Their problem in adulthood is saying ‘yes’ when their better judgment,
experience and knowledge suggests that arguing the point and asserting themselves
would be more appropriate. Some personal and organisational disasters might have
been avoided if some people had not been so compliant in the past. (Of course, some
people in power want nothing better than for others to do exactly what they are told!)
Procrastination
Some people learn when they are young that a good way to get attention is to
procrastinate. Consider these examples from family life:
‘C’mon, get a move on, or we’ll miss the shops!’
‘Look, put that doll down, tie your shoe laces up and let’s get going.
You’re making us late again!’
If a child decides on this basis that delaying gets attention, in adulthood the
individual may still be indulging in this behavior. Certainly, being late is a good way to
get attention in organisations (albeit negative) and it may use up more energy, money
and time than it is worth (clock cards, counseling interviews, disciplinary interviews etc).
Flexi time is no guarantee of cure.
Rebellion
Many children only get attention when they are ‘naughty’. Such individuals in
adulthood may continue this behavior by seeking bosses and/or institutions (eg., banks,
local government, the police) to constantly fight and rebel against.

Little Professor
Another functional aspect of the Child ego state is frequently introduced and used, Notes
although its relationship to the other two is unclear. This is the Little Professor, the
intuitive part of us that senses things about other people in a flash. This part of us has
those brilliant, non-logical insights giving us solutions to problems that typify some of
the major breakthrough in the growth of scientific knowledge.
Transactions and its Analysis

Transactional analysis is related with the way in which individuals interact with each
other. It explains the mechanism that takes place when people are having conversation
or are trying to exchange their thoughts, feelings and ideas with each other. Thus,
Transactional Analysis essentially refers to the analysis of interactions between people.
According to Transactional Analysis, a transaction is stimulus plus response (S+R). If
two or more people encounter each other, sooner or later one of them will speak, or
give some other indication of acknowledging the presence of the others. This is called
the “transactional stimulus”. Another person will then say or do something which is in
some way related to the stimulus, and that is called transaction response. Transactional
Analysis involves the study of the social transactions between people and it deals with
determining which part of the multiple-natured individual is being activated Parent, Adult
or Child.
Transactions and its Types

Normally there are three types of transactions:
(1) Complementary Transactions;
(2) Crossed Transactions;
(3) Ulterior Transactions:
a. Duplex;
b. Angular
Complementary Transactions
A transaction is complementary when communication continues on parallel lines
between individuals and the lines of stimulus and response are parallel. Thus, the
message transmitted from one ego-state elicits an expected and appropriate response
from the proper ego-state of the other individual. The transactions are complementary
because both are acting in the perceived and expected ego-states. Usually, in such a
case, both individuals are satisfied, everyone feels OK and the communication is
complete.Complementary transactions can take place between A-A, P-C, P-P and so on.
Crossed Transactions
The lines of stimulus and Response cross each other in case of crossed
transactions. Whenever the stimulus and response cross on the P-A-C transactional
diagram, communication stops. Transactions become uncomplimentary. The message
sent by one ego-state is responded to from an incompatible, unexpected ego-state of
another person. The inappropriate response generates feelings of hurt and anger and
the individuals, instead of coming closer, divert from each other. Crossed transactions
are the source of much interpersonal conflict in an organisation. They inhibit free flow of
ideas, free thinking, creativity and social interactions. Crossed transactions have many
possible dysfunctional consequences for the organisation.
Ulterior Transactions
The ulterior types of transactions are most complex because the communication has

double meaning as more than ego-states are involved in them. When ulterior message
Notes is sent, the literal and intent meanings are not one and the same. Ulterior message is
often disguised in a socially acceptable way. On the surface level, the communication
has a clear Adult message, whereas it carries a hidden message on the psychological
level. Ulterior transactions like crossed transactions are undesirable as they damage
interpersonal relationships.
Strokes
You’ve seen that transactions can be open, blocked, or ulterior. It’s also important
to recognize that whenever two people are transacting, they are exchanging “strokes”.
What are strokes? To help you understand that term, let’s look at an important discovery
made by Rene Spitz. Spitz found that keeping infants fed and in a clean environment
was not enough. Such infants became weak and almost seemed to shrivel up if
they were not cuddled and stroked. Infants who are touched very little may become
physically and mentally retarded; those not touched at all seem to “give up” and die.
Before Spitz discovered this, doctors often puzzled at the high death rate in orphanage
nurseries. Today in such nurseries “grandmothers” and “grandfathers” volunteer to
come in and just cuddle infants.
In Transactional Analysis language, the term “stroke” refers to the giving of some
kind of recognition to a person. This may or may not involve physical touching. As we
grow from infancy into childhood and then adulthood, we do not entirely lose our need
for stroking. Part of our original need for physical stroking seems to be satisfied with
symbolic stroking. We no longer need constant cuddling, but we still need attention.
When we receive a stroke, we may choose to feel either good or bad. If we choose to
feel good, we might think of the stroke as a “warm fuzzy” (or positive stroke). On the flip
side, if we choose to feel bad, we can think of it as a “cold prickly” (or negative stroke).
Since we have a basic need for strokes, we will work hard to get them. For example,
ignored children will engage in all sorts of creative acts to get stroked. Often such
children quickly learn that they can get strokes by talking in a loud, whiny, high-pitched
voice, spilling milk on a clean table cloth, and injuring themselves
A child who carries out one of these actions is likely to get a cold prickly (negative
stroke). But it seems to make no difference to a stroke-deprived child. To such a child,
any kind of stroke is better than none at all: a cold prickly is better than nothing! The
same is true for adults who work in a stroke-deprived environment.
Life positions
Another way of looking at relationships between people is through the concept
of ‘life position’, sometimes referred to as the basic position or existential position. A
person’s life position at any given time expresses in some way just how that individual
is relating to others in terms of thinking, feeling and behaving. There are four basic life
positions, shown below referred to as the OK corral.
I’m not OK I’m OK

You’re OK you’re OK
I’m not OK I’m OK
You’re not OK you’re not OK
Examples of Life Positions

The idea of life positions can be demonstrating the following examples.
1. ‘Hey, we did a good job there’, says the boss.

‘Yes, things are really going well for us now’, says the subordinate (I’m OK,
you’re OK) Notes
2. ‘Your work is not up to the standard I need in this department!’ says the boss
(I’m OK, you’re not OK)
3. ‘I wish I could keep on top of things the way you can’, says the subordinate
(I’m not OK, you’re OK)
4. ‘Well, I don’t know what to do and you don’t know what to do. What a mess!’
says the boss.
(I’m not OK, you’re not OK)
Characteristics of the Life Positions

I am OK, You are OK(I+,U+)
This is sometimes referred to as the get on with position. People occupying this
position are optimistic, confident and happy about work and life. They use time
constructively, doing the things they most want to. They exchange strokes freely
with those they meet, accepting the significance of other people, and decline to put
themselves or others down. They are assertive in reaching their aims, i.e., they state
and elaborate their own views and needs rather than attack other people’s views and
needs. Their dominant working style with others is collaboration and mutual respect,
sharing authority and responsibility and listening constructively, even if they disagree.
The problems they encounter in work and life are faced and dealt with as constructively
as possible. They are likely to ‘succeed’ in life within the limits they’ve set themselves,
finding satisfaction with work and relationships, and tend to live long, healthy lives.
I’M OK, YOU’RE NOT OK (I+, U-)

This is sometimes referred to as the get rid of position. It is characterized by feelings
of anger, fury and hostility. Others are seen as inferior, unworthy, incompetent, wrong
and not to be trusted. Behavior to others is characterized by such things as spite,
victimization, trapping, condescension, abuse and disregard. They may devote much
time to the destruction of the sense of self-worth of others. As well as putting others
down, they over-inflate their own self-worth, deny personal problems and find it difficult
to give positive strokes. At work they are highly competitive and climb over others at
whatever cost to achieve power and status. In wider social terms this is the life position
of those who exploit their fellow man, or of those who take dogmatic views, believing
theirs to be the only right course. In extreme cases they are homicidal (You are so “not
OK”, there’s no point to your living’)
I’M NOT OK, YOU’RE OK (I-, U+)

This is referred to as the get away from position and is typified by feelings such
as sadness, inadequacy, stupidity or a sense of being ugly. In this position, people
experience themselves as inferior or powerless in relation to others. They put
themselves down and find it difficult to accept positive strokes, even being suspicious
of them. In relation to work, they undervalue their potential and skills and they avoid
or withdraw from difficult situations and problems. In life generally, they don’t succeed,
are unhappy, often ill and/or depressed and in extreme cases commit suicide (I’m so
useless I may as well not live’)
I’M NOT OK, YOU’RE NOT OK (I- , U-)

This is also referred to as the get nowhere position and is accompanied by feelings

0
of confusion or aimlessness and pointlessness. Their attitude is ‘Why bother, what’s
Notes the point?’ and they frequently waste time. They do nothing very much in life, and in
extreme cases become alcoholics or drug addicts, or go crazy, possibly committing
murder or suicide.
Conflict Management
Definition:- Conflict can be defined as a difference of opinion or as complex as a lengthy
battle over matters of significant importance. Conflict usually occurs when two or more
individuals or groups have contradicting opinion or approach towards the same situation.
The conflict can be because of individual reasons like difference in personality or

culture or value system or egos and professional reasons like constraints in resources,
work stress, competition etc.
Benefits of Conflict
As already defined that conflict is difference of view point for a same situation or
object, there are organisational benefits due to conflict.
Improves performance:- Conflict helps in improving performance as when in

conflict one party try to outperform other to show their superiority and negotiate that
their view point is better.
Increase productivity:- The feeling to outperform other conflicting party act as a

motivational drive for the people and they tend to focus more on their work which result
in to increased productivity.
Encourage competition:- conflict is the result of disagreement and this makes

conflicting parties to compete with each other, each party sets the targets for other this
result in to a competitive environment in the organisation.
Encourage innovation and creativity:- Conflict also encourage innovation &

creativity as conflict stimulates competitiveness and the urge to outperform others and
prove one self encourage the parties to think for newer ways and means to perform
their work and achieve their targets.
Reduces error and defects:- when in conflict the party is under observation from
the other and they pin point their defects and errors in a criticizing manner to avoid
criticism the conflicting parties try to reduce the errors and defects in their functioning.
Problem solving:- Conflicts also improves problem solving and decision making as
under conflict there is constraints of timing and providing better solutions, the parties
tend to improve problem solving skills under the conditions of eustrees due to conflict.
Improves flexibility:- Conflicts creates an environment of free communication this

leads to increased awareness of injustice, inefficiencies and frustration, this leads to
building an environment conducive towards improvement and change, so the rigidity
towards change is reduced.
Improves cohesion:- Through conflict the parties are able to know the concern and
consideration of the conflicting party this leads to better awareness among employees
about the strength and weaknesses of each other which on a broader scale bring
people together and improves cohesion among them.

Stimulate growth:- Conflict stimulate organisational and personnel growth, as with
conflict the people keeps on improving their skill set and performance which makes the Notes
company more progressive and personnel more efficient and qualified.
If there is no existence of conflict then the organisation will not be able to maintain a
dynamic environment in the organisation conducive of growth it will become stagnant,
so the management should allow certain level of health or functional conflict in the
organisation. But when the conflict increases then it can have many dysfunctional
outcomes.
Sources of Conflict
The conflict can arise due to various reasons the major sources of conflict are
 Limited resources:- Conflict may arise due to constraints of resources, no

organisation has unlimited supply of resources, the resources include finances,
human resource, infrastructure time etc. Every organisation try to provide these
resources for the different value addition process, at the same time due to intense
competition and highly dynamic business environment it is under extreme pressure
to increase value and decrease price so as to not only remain competitive in the
market but also be able to create wealth for its stake holders, in this regards the
different departments or processes and even different teams come in a conflicting
situation with other so as to get more resources for them, which will yield them
more convenience, management also encourage conflict in this regard so that the
resource allocation can be done in more justified manner.
 Different goals:- Every department or process in an organisation may have

different goals if one goal comes in the way of achieving other goal this will lead to
conflict. E.g. the human resource department may not allow sufficient manpower
to production department as their target is to reduce labor cost but production
department intend to increase workforce to make production smooth by reducing
work stoppage due to absenteeism or turnover etc.
 Role ambiguity:- The conflict also arises when there is no clarity pertaining to
the role of a person or department. This leads to confusion among the parties
leading to conflict. E.g. the bank manager wanted to promote their products to
consumer through their staff in the branch but as per the quality department each
transaction shouldn’t take more than 3 minutes, so the staff will be in a situation
of role ambiguity as they are not clear whether to promote the additional product
which may take more time to close a transaction or to perform the instructions of
the customer and execute the transaction within 3 minutes to fulfill the requirement
of quality management.
 Work relationships:- Interdependent relationship of one party on other can also

be a reason of conflict. This conflict will also increase if the output of one process is
the input of other and the performance of one process is dependent on the quality
and timing of the previous process. In case a process is not being done in the right
manner or it is not handed in time to the next process it will result into conflict as the
performance of the next process will be adversely affected.
 Individual Differences
Differences among employees, due to personal atti¬tudes and opinions, educational
or cultural backgrounds, experience, age, or work-related duties and responsibilities
can be the reason of conflict.

2
 Organisational Problems
Notes Organisational problems can also lead to, sometime one department believes its
efforts are more important than those of other departments & they develop superiority
complex. Conflict can also emerge due to frequent organisational changes, overlapping
of job responsibilities, ambiguous job descriptions, and other situations that cloud
or obscure basic functions. Employees can experience conflict if their duties and
responsibilities are not clearly defined. Some time managers instigate conflicting
situation so as to protect their own interests.
 Communication Problems
Communication problems are one of the major causes of conflict. With the help of
effective communica¬tion about the organisation’s goals, allocation of resources, roles
& responsibility, work relationships, individual differences, and organisational problems
can go a long way toward increasing cooperation within the organisation and avoiding
the type of conflict that hampers the organisational performance.
Types of Conflict
1. Intrapersonal (within an individual),
2. Interpersonal (between individuals),
3. Intragroup (within a group),
4. Intergroup (between groups), and
5. Intraorganisational (within organisations).
Intrapersonal Conflict
Conflict within the individual, often involves some form of goal conflict or cognitive
conflict or decision making conflict. Such conflict occurs when either the choices are
mutually exclusive or their outcomes are negative or positive. There can be three
situations in this regard.
Approach-approach conflict is a situation in which a person has a choice between

two or more alternatives with positive outcomes; for example, an individual is having
two job offers at the same time and he doesn’t know which to select.
Avoidance-avoidance conflict is a situation in which a person must choose between

two or more alternatives having negative outcomes. For example, an employee is given
a transfer away from his home town or quit the job.
Approach-avoidance conflict is a situation in which a person must decide whether

to do something that had both positive and negative outcomes attached together, for
example, an individual given a promotion with transfer in a bad location.
Interpersonal Conflict
Conflict between two or more individuals, for example two supervisors in conflict
for more resources ,managers competing for the same promotion, two executives
maneuvering for a larger share of corporate capital etc. such conflicts can occur due to
various reason like.
 Personality differences: Conflict due to personalities of individual, this type of

conflict arises due difference in thinking, style of work or egos as well. The reasons
are purely personal and organisation and its culture are not responsible for it.
 Difference in perceptions: Individual perception is based on various factors

like backgrounds, experiences, religion, culture, education and training etc as

a result the interpretation of one situation is entirely different for each individual
and this can become the cause of conflict. Notes
 Clashes of values and interests: Conflict can arise due to difference in value
being placed and different interests of the individuals. e.g. finance department
may perceive up gradation of plant as an unnecessary expense where as for
production department it will bring modernization and result into more efficiency.
 Power and status differences: Due to difference in formal authority and power
and competition to hoard more power and increase status in organisation also
become a reason for conflict.
 Scarce resource: The resources available with the organisation is always

scarce and they try to use them more judiciously, secondly in this competitive
business environment cutting cost and increasing value is a great concern, so
every department or individual tries to grab more resources to achieve its target
and this becomes the reasons for conflict. Interpersonal conflict is almost
automatic anytime there is scarcity.
Intra-group Conflict
A conflict which is within a group only, such conflict can be because of two reason one
substantive conflict which is because the disagreement about nature of task or related
to the content e.g. what should be the target for the group, what strategy will be right to
achieve the target etc second category is known as affective conflict which is because of
interpersonal relations. The intragroup conflict is either resolved through the development
of consensus within the group or disagreement prevails and worsen the matter.
Inter-Group Conflict
When the conflict is between two or more groups, such conflicts can be among
different departments or functional units or sometimes informal groups formed within the
organisation. The reason for inter group conflict can be competition to outperform other
group to show the excellence, to get a reward of benefits, to get better allocation of
resources, to achieve political motives etc. Manager also instigates group conflict to bring
competitiveness but at a higher level the conflict can become dysfunctional in nature.
Intra-Organisational Conflict
Another level of conflict is intra group conflict, where the conflict is among different
section of the organisation e.g. conflict between management and labor union,
production department and marketing department etc the inter organisational conflict
can be of four types
Vertical Conflict: Conflict between different levels in an organisation; for example

manager versus supervisors.
Horizontal Conflict: Conflict between employees or departments within same

hierarchical level in an organisation. For example conflict between supervisors of
assembly lines.
Line-Staff Conflict: Conflict between line (the primary functioning of the

organisation like production and maintenance) and staff (support services, HR,
finance etc) as the employees working in line and staff departments have differential
background and the interests and considerations of both are quite different hence
conflict arises.

4
Role Conflict: A role is the cluster of activities that others expect individuals to
Notes perform in their position. A role frequently involves conflict.
Outcomes of Conflict
If the conflict takes dysfunctional qualities it has to be managed so that it doesn’t
affect the performance of the individual and organisation. While handling conflict each
situation and its outcomes should be analyzed, so as to implement right strategy. A
conflict may have the following outcomes
Lose-lose outcome: - No one involved in the conflict gets what is desired hence
remains dissatisfied, the basic reasons for the conflict remain and con¬flict may recur
over the same issues until they are resolved.
Win-lose outcome: - One party gets what is desired but concerns of other party are
not met, this result in to failure of resolving all the problems and at same time this will
lead to further degradation of the issue resulting in to more conflict.
Win-win outcome:- The needs of all parties is satisfied in some way and the conflict
is resolved. To reach this outcome, those in conflict must understand each other’s needs,
confront the issues, and work together to objectively resolve the situation so that everyone
benefits. Only with a win-win outcome is a conflict truly resolved for the long term.
Strategies of Conflict Management

The different approaches to handle conflict depends on the various aspects like
nature of stress, the expected outcomes, the party involved, the degree of stress etc
Following strategies can be adopted to manage conflict
 Ignorance: - In certain situations, it may be advisable to take a passive role and

avoid it all together. Ignorance approach is suitable in following situations
 When getting involved in a situation would provoke further controversy.
 When conflict involves some fundamental issues and leaving it as it is more

beneficial or let the concerned party resolve it mutually.
 When the conflicting parties themselves prefer to resolve it.
 When conflict is very trivial or there is no real conflict.
 Smoothing:-It is strategy to cover up conflict or situation by addressing other

fundamental issues like team work, unity, organisation goals etc and without
addressing the issues of conflict. Under smoothing the conflicting parties are
reminded of broader issues instead of the conflicting issues, e.g. manager while
handling a conflict between two department will discuss about the organisation’s
mission and team work rather than trying to find out actual cause of conflict and
resolve it, under smoothing since the problem is never addressed, the emotions may
build up further and suddenly explode. Smoothing provides only a temporary solution
and conflict may resurface again in the course of time. Smoothing is more sensitive
approach than avoiding in that as long as the parties agree that not showing conflict
has more benefits than showing conflicts, the conflict can be avoided.
 Compromising: Strategy in conflict management where resolving is reached

by balancing the demands of the conflicting parties and bargaining in a give and

take position to reach a solution. Each party gives up something and also gains
something. The technique of conflict resolution is very common in negotiations Notes
between the labor unions and management. This can also be seen as collective
bargaining principle.
Compromising is a useful technique, particularly when two parties have relatively

equal power, thus no party can force its viewpoints on the other and the only solution
is to compromise. It is also useful when there are time constraints. If the problems are
complex and many faceted, and the time is limited to solve them, it might be in the
interest of conflicting parties to reach a compromise.
 Forcing: A strategy where the dominant party in a conflict imposes their decision on
other, and if they don’t accept they are removed, this technique always ends up in
one party being a loser and the other party being a clear winner. In this one party
has power and authority to enforce his own views over the opposing conflicting
party.
 Problem solving: Under this strategy of resolving conflict the manager try to find
out the actual cause of the conflict and with mutual discussion with the conflicting
parties try to sort out problems. According to this approach , it is assumed that there
will be differences in opinions, viewpoints, perceptions etc and conflict is inevitable
in an organisational setting but finding out solutions for identified problems will
reduce the conflicts and in this process both the parties will understand and get a
justifiable outcome.
Motivation and Job Performance

Definition of Motivation
Motivation can be defined as that particular reason/s which prompts a person to
behave in a particular manner in his personal and professional life. Motivation is the
driving force behind individual to behave in a particular manner, motivation decide the
level of effort and performance shown by the person.
Generally the needs and desires of a person will define the level of motivation;
different motives operate at different times with variable extent among different people
and influence their behavior. Following are the characteristics of motivation.
Internal Process
Motivation is an internal process and lies within the individuals, and the level of
motivation will be different for each individual. Motivation is a goal oriented process;
motivation enables a person to direct his effort in achievement of a particular goal, it is
affected by the outcomes of the efforts and feed back from the environment. Motivation
can affect the behavior in positive or negative manner. Similar outcomes may have
differential effect on the individuals.
General model of motivation

The generalized model of motivation is based on the concept of need, according
to this model a person when experience a particular need, he comes under a state
of tension to find out a method to fulfill the need and feel satisfied. After finding and
analyzing the different methods to fulfill the need, the person based on his own
evaluation behaves or act in a particular manner to achieve his desired object which
can fulfill his need. If his efforts or action brings out the desired result he is able to fulfill
his need and become satisfied. If he is unable to get then he may engage himself in
constructive or destructive behavior so as to ease his tension by fulfilling his needs. He
may increase his efforts to achieve the objective or may altogether ignore his need or
may go in utter frustration or depression.

6
Let’s take an example to understand this concept, why a person works in an
Notes organisation? The answer is to earn money which is required to fulfill his needs related
to his existence and lifestyle; so he is motivated to work in an organisation as we
wanted to fulfill some of his needs.
Now lets look at another situation where an employee wanted to have recognition
within the company and he assume that this need of recognition can be fulfilled if he
gets a promotion & become a senior manager, so he directs his efforts to achieve a
promotion. Now reviewing the performance the organisation can either give him a
promotion, incentive or increment but in these cases he will only be satisfied if get a
promotion, the outcomes incentive or increment will not provide a satisfying result and
he may reflect on of the following behaviors
Aggression. Aggression is an act or force against someone or something.

Aggression may be directed to the source of frustration (superior) or to third parties
(displacement). Aggression may be verbal or physical. Physical aggression means
causing damage to equipment or personal injuries. For example, the employee failing
to get a promotion may hit a piece of furniture, through away his key board or may start
quarrelling at home.
Rationalization. The person try to rationalize his failure e.g. the employee may blame his
superiors to be biased, or may say it’s in his destiny etc to pacify himself with a reasoning.
Regression. In this case, the individual gives up constructive behavior and slides
back into more primitive conduct that is meaningless and incompatible with the
environment. e.g. the employee may behave in different manner with his team, doesn’t
show any initiative or participate in decision making etc. he might rough up with other
and may do thing like tempering with equipments or machinery etc.
Fixation. In this type of manifestation, an individual tends to resist change in his

behavior and gets freezed into old and habitual responses. For example, employee will
bring down his performance level to minimum required.
Resignation. In this case the person resigns or withdraws himself from the place
e.g the employee may look for another job or may sever his social relationship in the
company or become more of isolated person.
Apathy. Another method of withdrawal is showing indifference. For example, if an

employee does not leave a frustrating job physically, he may remain absent mentally
thinking of anything except the work on hand
Approaches to Motivation
Many researchers had tried to find out a more concrete approach towards the
understanding of motivation process and various theories have been developed. We
can classify these theories in to following.
1. Content Theories. Content theories of motivation focus on human needs or

desires which directs individual’s behavior. Content theorists study the needs which
direct an individual to behave in a particular manner. According to these theories
an understanding of needs will help to know what motivates a person and the level
of motivation. Organisation knowing the need of person can offer it as an outcome
to improve the performance of the individual e.g. offering monetary incentive
to a person who needs money for some personal reason is more motivating
as compared to award him sales man of the month award. Similarly awarding a

manager as the best employee of the year in a public forum might be better than
giving him an incentive of 5%. Notes
So from content theory standpoint, understanding motivation is largely a matter
of recognizing patterns of needs and then encouraging behavior those results in
satisfying those needs. The crux of content theory is that any unfulfilled or deprived
needs motivate individuals to act to fulfill those needs and seek satisfaction.
Maslow’s need hierarchy theory, Herzberg Two Factor Theory & McClelland theories
are the examples of content theories of motivation.
2. Process Theories. The process theories of motivation are based on the description
of what are the needs of person and the process which they follow to achieve it. In
content theories the motivation process is based on the needs only but in process
theories we consider not only the needs but the process which is followed, it deals
with the process of formulating, analyzing, evaluating and selecting a particular
alternative by individuals to fulfill the desired needs. Adam’s Equity Theory, Vroom’s
Expectancy Theory and Porter & Lawler Model of motivation are some of the
examples of process theories of motivation.
A process theory examines individual behavior in terms of job satisfaction related

to perceived rewards that instigate behavior. While content theories emphasize
perceived needs, process theories emphasize the decision- making dimension of
work performance. Individuals are viewed as making conscious and subconscious
evaluations of contemplated actions and the consequences of those actions. In
other words, personal expectations of outcome associated with performance are
critical for determining how individuals will be motivated to perform. Popular process
theories include Expectancy theory and Equity theory.
3. Reinforcement Theories. These theories are based on the concept of operant

conditioning propounded by B.R Skinner. These theories are based on the fact that
the responses of an individual to a particular stimulus and the subsequent outcomes
can motivate a person to repeat or not to repeat a particular behavior. Under this,
the individuals having learned from the past, develop patterns of behavior to control
future consequences. According to this theory an individual learn what to do or what
not to do either to gain rewards or to avoid unpleasant consequences. The theory of
reinforcement is discussed in detail in section of Learning in this SSM.
Content Theories of Motivation

Maslow’s Hierarchy of Needs
Maslow was one of the first behavioral scientists to make management people
aware of the complexity of human needs and their effect on motivation. During
1940s he acknowledged that people really have a great many needs & these needs
influence the level of motivation. According to him no a set of diverse needs determine
the behavior of a person. These needs can be classified in to groups and can be
arranged in to hierarchy, according to him the at least partial fulfillment of lower level
needs is necessary to initiate motivation through the higher level needs. In other words
the higher level needs can’t be a motivating factor until lower level needs is unmet.
According to Maslow once the lower level needs are fulfilled they do not act as a
motivator, its only the non fulfillment of particular need which becomes a motivator.
The higher order needs can be fulfilled through a variety of ways as compared to
fulfillment of lower order needs.

8
Notes
Maslow felt that mankind’s diverse needs could be condensed within the following
five basic categories:
1. Physiological needs are the essentials of survival. They include food, clothing,
water, shelter, rest, and sex.
2. Safety and security needs include the needs for protection against physical and
psychological threats in the environment and confidence that physiological needs
will be met in the future. Buying an insurance policy or seeking a secure job with a
good pension plan is manifestations of security needs.
3. Social needs, sometimes called the need for affiliation, include a feeling of
belonging, of being accepted by others, of interacting socially, and of receiving
affection and support.
4. Esteem needs include self-respect, achievement, competence, respect of others,

and recognition.
5. Self-actualisation needs include fulfillment of one’s potential and growth as a

person.
The need hierarchy implies that lower-level needs require satisfaction and
thereby affect behavior before higher level needs have an effect on motivation. That
is, according to Maslow, an individual will be motivated to satisfy the need that is
proponent, or most powerful for him or her, at a specific time. Before the next level need
becomes the most powerful determinant of behavior, the lower-level need must first be
satisfied. “When the needs that have the greatest potency and priority are satisfied, the
next needs in the hierarchy emerge and press for satisfaction. When these needs are
satisfied another step up the ladder of motives is taken.”
Maslow suggested that needs at various levels are interdependent and overlapping.
Each higher level need emerges before the lower level needs have been completely
satisfied. Even though a need is satisfied, it will influence behaviour because of
interdependent and overlapping characteristic of needs.
One’s potential expands as one grows as a person, the need for self-actualization
can never really be fully satisfied. Therefore, the process of needs motivating behaviour
never ends. For example, a starving person will first be motivated to find food, and only
after eating will attempt to build a shelter. Once comfortable and secure, a person will
be primarily motivated by the need for social contact, and then will actively seek the
respect of others. Only after the individual feels inwardly content and respected will he
or she be primarily motivated by the need to grow to full potential.

According to Maslow a need can also be partially fulfilled to move above in the
hierarchy as the motivation is not discrete. Notes
Appraisal of Maslow’s Theory

 Maslow’s theory was the first corner stone in developing the theories and ideas of
motivation but it is being criticized on following grounds
 Considered to be oversimplification of human needs and motivation.
 The needs and motivation can’t be stated to follow a specific sequence or hierarchy.
 Needs of person can’t be defined and classified in too rigid manner.
 In real life situations, satisfaction of one need may not automatically activate the
next level need.
 The order of needs of people may be altogether different as stated by Maslow, for
example, in case of creative people like singers, painters, etc., self-actualization
need may become a dominant motivating force even before the lower order needs
are satisfied.
 Similarly need priorities of the same individual may change over time. So a same
person might be motivated more by lower level needs even when his higher needs
are being satisfied, e.g. a person after becoming manager satisfied his self esteem
needs now he is motivated by enjoying food and drinks.
 Maslow focused only on the needs which are not the only determinant of behavior.
There are other motivating factors like expectations, experience, etc.
Mcclelland’s Theory
McClelland Theory of motivation is based on the concept of acquired needs of
person which asserted that a person’s needs are influenced by experience, cultural
background and time. His theory is based on a classification of three needs, the needs
for affiliation, achievement or power. A person’s motivation and effectiveness can be
increased through an environment, which provides them with their ideal mix of each of
the three needs. These are discussed below :
(i) Need for Power (nPow)

The need for power is expressed as a desire to influence, control others. It also
means the desire to lead and make an impression. Individuals having a need of
power tend to exhibit behaviors such as out-spoken, forceful, willing to engage in
confrontation, and a tendency to stand by their original position. They often are
persuasive speakers and demand a great deal from others. If we compare this need
in relation to Maslow’s hierarchy, power would fall somewhere between the needs for
esteem and self-actualization.
(ii) Need for Achievement (nAch)

The need to achieve, excel and succeed can be fulfilled by achieving a challenging
goals which require person’s ability and effort, persons having achievement as a need
will try to set goals that are challenging but realistic, so that the person can feel a sense
of achievement. However the goals also have to be realistic as the person believes that
when a goal is unrealistic, its achievement is dependant on chance rather than personal
skill or contribution. Such individuals prefer to work alone or with other high achievers.
They do not need praise or recognition, achievement of the task is their reward.

McClelland points out, “No matter how high a person’s need to achieve maybe, he
Notes cannot succeed if he has no opportunities, if the organisation keeps him from taking
initiative, or does not reward him if he does. Thus, if management wishes to motivate
individuals operating on the achievement level, it should assign them tasks that
involve a moderate degree of risk of failure, delegate to them enough authority, to take
initiative in completing their tasks, and give them periodic, specific feedback on their
performance.
Need for Affiliation (nAff)

This need can be defined as the desire to form friendly relations and human
interactions. The person is concerned with forming friendly relations with others, desire
for companionship, and the desire to help others. People dominated by the affiliative
need would be attracted to jobs that allow considerable social interactions like customer
service, hospitality etc. They love to work in team and perform best in cooperative
environment, at the same time this need as motivator can cause dilution of manager’s
role as he will try to go for decisions which will increase his popularity rather than
completion of organisational tasks.
Appraisal of Achievement Motivation Theory

 The result of McClelland’s theory and research can be beneficial for manager, as if
the motives of employees can be accurately measured; management can improve
the selection and placement processes to suit the job with the right person.
 Persons with high need for achievement expect similar results from others.
 As a result, they may lack human skill and patience for being effective managers.
 The research evidence in support of the achievement motivation theory is

fragmentary and doubtful.
 The theory does not deal fully with the process of motivation and how it really takes place.
Herzberg’s Two-Factor Theory

During the late 1950s, Frederick Herzberg and his associates developed another
need-based model of motivation. Herzberg’s two factors was based on their research
on 200 engineers and accountants, of a large paint company, who were asked to
respond to the questions like “Can you describe, in detail, when you felt exceptionally
good about your job “ and “Can you describe, in detail, when you felt exceptionally bad
about your job?”
Herzberg’s Two Factor Theory

Hygiene Factor Motivators
Wages Recognition
Fringe Benefits Accomplishment
Physical condition Achievement
Overall company Policies Opportunity of advancement
Administration Potential for personal growth
Responsibility
Challenging work
Herzberg found that the responses could be grouped within two general categories,
which he called hygiene factors and motivators.

Hygienic factors include wages, fringe benefits, physical conditions and overall
company policies, administration, etc. The presence of these factors at a satisfactory Notes
level prevents job dissatisfaction, but does not provide motivation to the employees.
So they are considered as hygiene or maintenance factors. Motivational factors, on the
other hand, are essential for increasing the productivity of the employees. They are also
known as satisfiers and include such factors as recognition, feeling of accomplishment
and achievement, opportunity of advancement and potential for personal growth,
responsibility and sense of job and individual importance, new experience and
challenging work, etc.
The hygiene factors are primarily related to the environment in which work is
performed whereas the motivators are primarily related to the nature of the work
itself. According to Herzberg, hygiene factors result in dissatisfaction if they are not
present or are inadequate. If they are adequate, they do not induce motivation or give
satisfaction. In contrast, if the motivators are absent or inadequate, they do not result
in dissatisfaction. If adequate, however, the motivators are the factors responsible for
motivating workers and assuring job satisfaction.
Mcgregor’s Theories
Douglas McGregor set forth his theory of motivation in his 1960 book “ The Human
Side of Enterprise” the theory was named Theory X and Theory Y and is based on the
management role and motivation
Theory X
McGregor stated that management is responsible for organising the elements of
productive enterprise—money, materials, equipment and people in the interest of
economic ends. According to Theory X it’s the role of management to direct, motivate
and control the actions of people and modify behavior to fit the needs of organisation.
Without this active intervention by management, people would be passive, even
resistant to organisational needs. They must, therefore, be persuaded, rewarded,
punished, controlled and their activities must be directed. It is management’s task to
get things done from workers. Theory X makes the following assumptions about the
employees:
 The average human being has an inherent dislike of work and will avoid it, if he can.
 Because of this human characteristic of dislike of work, most people must be

directed and threatened with punishment to get them to put forth adequate
efforts towards the achievement of organisational objectives.
 The average human being prefers to be directed, wishes to avoid responsibility,

has relatively little ambition and wants security above all.
Douglas Mc Groger
Theory-X Theory-Y
Essentially negative view of the people Positive view of the people
Assumes workers are lazy. Assumes workers are active
Have little ambition, dislike work ,want to Have high ambition, like work,
avoid the responsibility. like responsibilities
According to McGregor, this is a traditional theory of what workers are like and what
management should do to manage them. It advocates carrot and stick approach to
motivation of workers. Workers have to be persuaded and pushed into performance.
This is the management’s task. Management does the thinking, the employees obey

the orders. If the workers obey the orders, they will get wages; otherwise they will
Notes be pushed out of the job. But McGregor himself says. “The conventional approach
of Theory ‘X’ is based on mistaken notions of what is cause, and what is effect.” The
assumptions contained In Theory ‘X’ do not reveal the true nature of human beings in
practice. According to Theory X the management try to motivate people by fulfilling their
lower order needs which include physiological needs, security and safety needs and
social needs.
Theory Y
McGregor propounded Theory Y which, he said, would better represent the human
behavior. The assumptions under this theory are as follows
 The expenditure of physical and mental effort in work is as natural as play or

rest. The average human being does not inherently dislike work; depending
upon controllable conditions, work may be a source of satisfaction or a source of
punishment.
 External control and threat of punishment are not the only means for bringing about
efforts towards organisational objectives. Man will exercise self-direction and self-
control in the service of objectives to which he is committed.
 Commitment to objectives is a function of the rewards associated with their

achievement. The most significant of such rewards, e.g., the satisfaction of ego
and self-actualization needs, can be direct products of efforts directed towards
organisational objective.
 The average human being learns under proper conditions not only to accept
but also to seek responsibility. Avoidance of responsibility, lack of ambition and
emphasis on security are generally the consequences of experience, not inherent in
human characteristics.
 The capacity to exercise a relatively high degree of imagination, ingenuity and

creativity in the solution of organisational problems is widely, not narrowly,
distributed in the population.
Theory Y assumes that goals of the individual and organisation can be aligned
by using employee’s desire to fulfill his needs. The employee’s commitment towards
work is directly related to the level of fulfillment of his individual needs. It assumes that
workers exercise self-direction and self-control in the realization of the goals to which
they feel themselves committed. Because of these reasons, Theory Y is realistic and
frequently used at different levels in most of the organisations.
In support of the assumptions embodied in Theory Y, McGregor has cited a few

practices wherein the subordinates are given freedom to direct their activities, to
assume responsibility, and importantly to satisfy their egoistic needs. These practices
include decentralization and delegation, job enlargement, participation and consultative
management and management by objectives.
The major criticism of the theory is based on the fact that theory is developed on the
assumption and no research, secondly it only provides about the two extremes of the
situation.
Process Theories of motivation

1. Needs-Goal Theory – Motivation begins with an individual feeling a need. This need
is then transformed into behavior directed at supporting, or allowing, the performance

of goal behavior to reduce that felt need. Theoretically, goal supportive behavior and
goal behavior itself continue until the felt need has been significantly reduced. Notes
2. Vroom Expectancy Theory – Vroom’s Expectancy Theory is one of the most
successful process theory of motivation and try to explain why individuals select
certain courses of action in organisations, particularly in decision-making and
leadership. The Expectancy theory state that the level of motivation depends on the
perceived value of the result of performing a behavior and the perceived probability
that the behavior performed will cause the result to materialize. As both of these
factors increase, so does motivation strength, or the desire to perform the behavior.
People tend to perform the behaviors that maximize their rewards over the long term.
Valence
Valence is the preferred outcome which an individual desire to achieve, the valence
will be positive if the outcome of the performance is preferred by him, it will be zero if
the individual is indifferent or doesn’t consider it to be of value. So when an employee
opts for a certain course of action from different available alternatives, the theory states
that the selection will be dependent on the strength of the valence.
Instrumentality
Instrumentality refers to the individual’s believe, that the accomplishment of a given
task or behaving in a particular manner, will result in the attainment of some valued
reward. If instrumentality is high it means that individual believes that certain actions will
result in the preferred outcome will also result in attainment of the valued rewards.
Expectancy
Expectancy relates to the confidence that individuals may have in themselves
in accomplishing a certain task or assignment satisfactorily. If the individual does not
regard himself as competent enough to do a certain job, the individual will not see it as
feasible to get the desired rewards, and hence de-motivate the employee.
According to Vroom, the strength of an individual’s motivation to perform a certain

task can be calculated using this formula:
Motivation = Valence × Expectancy x Instrumentality.
Adam’s Equity Theory –

The Adams’ Equity Theory is stated by John Stacey Adams, a workplace and
behavioral psychologist, who developed this job motivation theory in 1963. This is
also a process theory which acknowledges that subtle and variable factors affect an
employee’s assessment and perception of their relationship with their work and their
employer. The core of the equity theory is the principle of balance or equity. It states
that an individual’s motivation level is correlated to his perception of equity, fairness
and justice practiced by the management & is measured in terms of input imparted and
output realized by the person. The theory assumes that the individuals are motivated by
their desire to be treated equally.
The theory states that an employee provides his inputs in form of his hard work,
consistency, effort and performance etc & expects certain outputs like salary, incentives,
increments and promotion etc, in an equitable manner with other and self as well, and
will try to readjust their inputs or outputs to maintain or restore equity if there is any
disparity.

According to this theory an individual calculates ratio of the inputs to the outputs
Notes and compare it with the other and if it is equal then he remains satisfied, e.g. if
there are two employee A & B both having same kind of experience, professional &
educational qualification and similar job profile but A is being given less salary package
as compared to B then this will create a feeling of inequity in the mind of A.
The moment individual perceives inequity he comes under tension this tension lead
to desire of reducing the tension by taking some corrective action which can be one of
the follows
 Modifying inputs or outputs e.g. employee improving or reducing the level of

performance.
 Distorting inputs and outcomes cognitively.
 Selecting a different referent
 Leave the field or quit the job
 Try to change his own perception
 Try to change other’s perception
An example of Equity Theory Model is given below
Adam’s Equity Theory

When the individual perceives any inequity he comes under tension these tension
can be of two type negative tension and positive tension.
J.Stacy Adams called negative tension state which motivates him to do something
right to relieve this tension e.g. in the above case where the A is being paid lower salary
package, A is under negative tension and will try to perform better so as to ease of this
inequity by getting an increment.
Similarly if the input to output ratio of the individual is perceived to be better in

comparison to others this will yield of positive tension, he will also take certain actions
to reduce this tension by increasing his inputs so as to justify his outcomes.
The individual while making comparisons of the input to outcome ratios he can
use four different comparisons which have been termed as “referents”. According to
Goodman, the referent chosen is a significant variable in equity theory. These referents
are as follows:
 Self-inside: An employee’s experience in a different position inside his present

organisation
 Self-outside: An employee’s experience in a situation outside the present

organisation.
 Other-inside: Another employee or group of employees inside the employee’s

present organisation

 Other-outside: Another employee or employees outside the employee’s present
organisation Notes
An employee might compare himself with his peer within the present job in the
current organisation or with his friend/peer working in some other organisation or
with the past jobs held by him with others. An employee’s choice of the referent will
be influenced by the appeal of the referent and the employee’s knowledge about the
referent.
Porter-Lawler Theory – The Porter-Lawler Theory is based on Vroom’s expectancy

theory and state that it’s the felt needs cause human behavior and that the effort
expended to accomplish a task is determined by the perceived value of rewards that
will result from finishing the task and the probability that those rewards will materialize.
Porter Lawler Theory can be considered the most complete theory of workplace
motivation. It is an integrated approach that includes elements of nearly all the other
motivation theories. This is important as it helps explain why each of the various
theories has a contribution to make but also serious limitations.
The model thus suggests that using individual theories won’t work. A more integrated
approach is needed. It also differs from content theories, particularly ‘two factor’ theory,
in suggesting that performance leads to job satisfaction, rather than job satisfaction
leading to performance.
Co-ordination
Coordination
Coordination is process of integrating the efforts And Activities of the different
section of the organisation to achieve the organisation objectives. Coordination helps
the organisation to streamline its different functions so that all its efforts are directed
towards achieving its organisational goals. The significance of coordination can be
understood by the fact that all the different efforts of the organisation are inter related
& inter dependent on each other, the performance of each department or activity is
dependent on other so if the arrangement of the efforts & activities are done in such a
manner that no activity or task is unduly effected by other process it is coordination.
Coordination is used as a tool of establishing unity of action in the pursuit of

common goal. Coordination is one of the necessary functions of the management with
the help of better coordination function even a small organisation can compete with
large organisation. Coordination synchronizes the efforts of individuals & groups in
order to ensure smooth flow of work in a systematic manner.

Deliberate actions from the management can only bring coordination between the
Notes efforts & activities of the organisation. The Management has to develop the system in
such a manner to establish coordination at all levels of the organisation.
Coordination is a group effort, we can only establish coordination if there are more
than one person, we can coordinate the effort of single isolated person, coordination
emphasize on unity of action & efforts.
Coordination can only be established if the efforts or activities have some

interdependence or interrelation direct or indirect, if the effort or activity has no
connection then coordination is not possible.
Coordination is a continuous activity; it is required from the beginning to the last

activity or effort done in the organisation. It is a never ending cycle which keeps the
organisations functioning smoothly.
Why coordination is required?

The coordination is required because of the following reasons
 Complexities of the work:- The coordination function is required as the complexities

to perform the work is increasing. The work flows from different processes each
requiring different efforts & input. e.g. manufacturing an automobile may require
more than 10000 components to be assembled & may pass through 30 processes
& 10 departments before it can be sent out of the assembly line & if there is no
coordination then work can’t be performed as desired & organisation will not be able
to achieve there targets.
 Size of the organisation:- With the increasing size of organisation the number
of individuals & groups working in the organisation also increases, which require
a mechanism to control & direct the work as per the requirement. Secondly with
the increase in the size there are problems related to communication within the
organisation, coordination helps in smoothening the communication between
the different levels of the organisation & avoiding any conflicts or confusion in the
organisation.
 Specialization in the organisational level:- In the organisation the work is

divided within different departments this division of work leads to specialization,
which means each department by performing same task become specialized. The
extensive departmentalizing leads to the narrowing of the view of the departments.
The departments become more interested in improving their own performance &
influence in the organisation, they forget the organisation goals, but with the help of
coordination the departments were reminded of their role in the organisation & the
efforts required to achieve organisational goals.
 To avoid conflict of interests:- The people working in the organisation try to

achieve their personal goals with the help of organisation, where as organisation
try to reach their targets with help of the employees. Due to different interests of
so many employees & the interests of the organisation coordination is the only tool
to bring harmony between these conflicting interests. By coordination a healthy
balance is reached where the conflicting interests were achieved.
 To bring harmony in the working:- In the organisation each individual,

group or department has a different approach towards the situations & style
of dealing. They also have different orientation towards the goals e.g. for
production department the good quality of the end product is the key to
success , for marketing it’s the good advertisement campaign, this may lead

to confusion, with the help of coordination these differences in attitude, speeds
& efficiency, orientation etc can be eliminated to achieve harmony in working & Notes
unity of action in all levels of organisation.
 To build better relationship among departments & groups:- In the organisation

the different departments are interdependent & interrelated with each other. The
output of one becomes the input of the other & the performance of one depends
on the performance of other. This leads to conflicts as departments or groups
blames each other in case of failure of performance. Secondly the department or
groups try to hide their inefficiencies by passing the responsibilities to other. But if
there is coordination then each group or department clearly knows what they were
expected to do & their role in the overall work. Coordination also helps in fixing the
responsibilities of each so that no conflicts arise during working.
Benefits of coordination
 Integration of activities & improvement in efficiency:- With coordination the
different functions & activities of the organisation can be integrated as one, the
human & non human resources are also integrated in one network. Activities
follow specific direction, there is elimination of wasteful motions, and duplication
of efforts, the resource utilization is improved along with improvement of quality &
performance of work.
 Better interpersonal relationship:- With the help of coordination there is

unity of action & direction, when there is clarity in the roles, interdependences &
responsibility the trust & cooperation improves among people. This result better
interpersonal relationship between employees. With the help of proper arrangement
in work brought by coordination the people are able to understand the consideration
& limitation of the other departments & groups.
 Interdepartmental harmony:- With the help of better coordination the

activities of different departments can be brought in harmony, because when
every department understand how it effects & get effected by the performance
of other then only they give their full commitment to their job & this retaliation
brings harmony in them.
The interdependence can be classified into--
Sequential interdependence:- In this kind of interdependence the output of one

department or group becomes the input of other in a sequential manner. Sometimes this
is in chain form where the product will pass through multiple processes in a sequence
the performance of each process will be affected by the performance of the out put of
the prior process the best example can be from the assembly line of the car.
Pooled interdependence:- In this kind of interdependence the efforts or activities

of departments are independent but they contribute to the achievement of a common
goal e.g. the sales achieved by sales supervisors of a territory will contribute in the
achievement of the regional target of the company.
Reciprocal interdependence:- In this kind of interdependence the work flows both

ways between different departments or groups. e.g. the project based organisations
which require resources from different departments & work flows from one department
to another in not a sequential manner like the construction business or turnkey project
of setting industries.

Coordination
Notes Coordination is the key to success of management functions: - Without
coordination no management functions like planning, organising directing & controlling
can be performed because coordination can bring order & relation into such
management function.
Principles of coordination
Direct contact & better communication: - Coordination requires direct contact
and better communication between the responsible people usually the process owner
or manager or supervisors. With the direct contact between there is no chance of
confusion or conflict, the understanding is improved. Better communication means
clear & timely communication so that flow of information is maintained. Direct
contact also helps in bringing agreements on methods, actions & objectives.
Example if the marketing manager & production manager meet on regular basis
then the production manger will be able to product items which has higher demand
similarly the marketing people will be able to liquidate any item for which production
has high inventory.
Coordination should be established at an early stage:- The mechanism of setting

coordination should start with the beginning of planning process. The goals & roles
of coordination should be defined at the time of defining of mission & policies of the
organisation. While formulating coordination the departmental heads or process owners
should also be involved this participation in the goal setting will bring in the points of
consideration which may cause any work related problems or conflicts & will also get
better commitments & cooperation from the departments & groups for the system of
coordination.
Reciprocal relationship:- The coordination requires that every department or

group should be aware & understand the fact that they can’t perform their work in
isolation. They work in an environment where they share a reciprocal relationship
with other departments. They should understand that they effect & is affected by the
performance of others & this phenomenon is spread all across the entire organisation.
So the organisation is network of such reciprocal relationship spread at all levels of the
organisation.
Coordination is continuous phenomenon:- The coordination is continuous process

& not a one shot deal, so while establishing coordination it should be understood that it
should be for all the time all the functions of management.
Self coordination:- This principle states that if the coordination is established

in such a manner that the modification of one activity or function affects the other
dependent activity or function in favorable manner self coordination is achieved. e.g. if
the schedule of maintenance is drawn in such manner that the plant is serviced when
it is idling this will lead to improvement in productivity by two ways one the plant is not
required to be stopped for servicing & the break downs will be less as during idling the
plant is fully available for the service. The conflict between objectives of maintenance &
production will also be minimal.
Factors which help in coordination

Coordination in the organisation can be best achieved when following are present.
 Clear definition & understanding of the objectives:- Coordination will only work
when every person, group & department understands what is their objectives, role &

what is expected from them. If they fail to understand the unity of the purpose there
will be no unity of action also. Notes
 Proper division of work:- The work should be divided & assigned to individuals,
departments or groups. This division should be clearly understood to all concerned
e.g. the employee should know clearly what he is supposed to do in what manner
& after completion of the task where his work will flow. Knowing the requirements of
the other department will help him work to the satisfaction of it, this result in better
quality of work.
 Sound leadership:- The sound leadership will provide conducive environment,

proper allocation of work, appropriate incentives of better performance, guidance
& removal of hindrance in achievement of target. Effective leadership also ensures
that the management functions were done with the necessary consideration to
coordination system.
 Good organisation structure:- The organisation structure should be such that

work flow, communication flow & division of work is precise.
 Clear lines of authority– The delegation of authority should be clear &

communicated to all concerned so that every individual & group should know
whom to report & receive instructions from, this will also help in making people
accountable for their work.
 System of timely & regular contact: - The company should have a system of
timely & regular contact between concerned departments. It can be done by the
mechanism of reporting, recording & monitoring which will require communications
between them on timely basis & recording of such communication will entrust
accountability.
Types of coordination
We can describe the coordination as internal & external coordination, any
coordination which involves the internal efforts, activities of the organisation is known as
internal organisation whereas when coordination is between the external components
like vendor, distributors, investors, financiers etc & organisation is known as external
coordination.
We can also define coordination as vertical & horizontal coordination, coordination

mechanism which is implemented by top management through delegation of
responsibilities & authority & is spread across different levels of organisation is known
as vertical coordination where as horizontal coordination involves the same level
employees in the organisation, e.g. supervisors of store, maintenance, production etc.
Communication
Communication is the process by which we share our ideas, thoughts, feelings &
emotions with other people. The effective communication is when these ideas, thoughts,
feelings & emotions are understood by the people in the same manner as we want to.
Components of Communication process

 Sender:- Person who wants to convey or share an information, idea or feeling with other.
 Encoding:- it is a process of converting information, idea or feeling in to verbal or

non verbal symbols, this encoding process convert the information in to a message,
which will be sent to the receiver.

 Message- The coded data which is sent by the sender. Message can be verbal or
Notes non verbal.
 Channel:- The carrier of the message, e.g. telephone, computer, face to face etc.
 Receiver:- The person for whom the message is intended for.
 Decoding:- The process by which the receiver convert the message in to a

meaningful information. Decoding is the process of reconstruction of ideas,
information or feeling.
 Feedback:- It is the response given by the receiver through encoding a message

for the sender, feedback helps to ensure whether the intended message is being
understood by the receiver in the same manner or not.
 Noise:- Any interference in the communication process which can alter the
transferring process or meaning of communication.
The Essential of Communication

Clarity: - It means that the sender should be clear about the following things
 Objective of the communication:- What the sender want to convey and in what
sense.
 Receiver:- The sender should know clearly the receiver and the characteristics of
the receiver.
 Channel:- The appropriate channel through which the communication will be most
effective.
Completeness- The communication should be complete, which means it should

have all the relevant information required by the receiver to interpret the message
and respond or act in the same way as the sender expected him to. When the
communication is incomplete then it will result in confusion and the response from the
receiver will also be affected. The performance of any organisational activity will depend
on the completeness of the communication.
Conciseness- A reader’s time is valuable. Don’t make him feel that he is wasting his
time in going through your unnecessarily lengthy letter. Be as brief as possible. Brevity
in expression effectively wins the attention of the reader. However, brevity should not be
affected at the cost of appropriateness, clarity, correctness, completeness or courtesy.
In fact, there is no hard and fast rule for the length of the letter. A letter should be as
long or as short as is necessary to tell the story effectively. A two-page letter may seem
short, while a ten-line letter may seem all too long.
Consideration- We know that we are primarily interested in ourselves. Naturally,

every other person is interested more in himself than in a third party. This can be done
in the following ways:
 Adopt you-attitude. Everybody is primarily interested in himself. It follows, therefore,

that when we write letters to others, they are effective and the readers respond to our

letters well only when we write from their point of view. So to make our letter more
effective, we must avoid I and we and have as many you as possible. Notes
 Avoid gender bias. Now that the business world is no longer dominated by men, it
is extremely important to avoid gender bias. Using “he” when a message is going to
a lady will certainly cause offence.
a) Use words free from gender bias: Like instead of using chairman, use
chairperson.
b) Use a slash to include both the alternatives: Dear Sir/ Madam, Gentlemen/
Ladies
c) Use plural forms inclusive of both the genders.
Don’t write: Each member caste his vote.
Write: All members cast their votes.
 Emphasize positive, pleasant facts. On many occasions you may have to

refuse, say ‘no’, regret, disagree, complain or say ‘sorry’. To say this in plain
words and a straightforward style is not difficult, but their effects on the reader’s
mind on the firm are bad and far-reaching. We swallow sugar coated pill without
any grumble. Similarly in a business letter, the reader accepts calmly and coolly
all the no’s, regrets, and sorry’s if they are expressed in a positive manner. A
negative approach or a connotation irritates the reader and makes him feel
that you lack business manners and gentlemanliness. A positive approach, on
the other hand, convinces the reader of your helplessness, or your genuine
difficulties, etc. In other words, a positive and pleasant approach says ‘no’ but
retains the customer’s goodwill.
 Impart integrity to your message:- Showing integrity is perhaps the best way
of showing consideration. Integrity involves the observance of ethical principles-
sincerity and fair treatment. Nothing will impress the receiver of your message
more than these two simple virtues.
Courtesy- In business we must create friendliness with all those to whom we write.
Friendliness is inseparable from courtesy. And courtesy demands a considerate and
friendly behavior towards others. The following principles help to promote courtesy:
 Answer the letters promptly. In business it is general practice to answer a

letter the same day it is received. Sometimes you might need a back reference,
or may have to refer to different departments for clarification of certain points, or
may need the consent of higher authorities.
 Omit irritating expressions. Some words and expressions are negative

in connotation and irritate the reader. Particularly, when used with ‘you’,
they become provocative. Expressions like ‘you forgot’, ‘you failed’, ‘your
irresponsible approach’ are bound to irritate or hurt the reader.
 Apologize sincerely for an omission/ thank generously for a favor. If you

have overlooked or failed to do something, express your regrets promptly and
sincerely and make up for the omission at the earliest. If omission is on the part
of someone else and he regrets it, promptly tell him that you do not mind and a
sort of normalcy of situation has been restored.

Correctness
Notes  Give correct facts.- Business communication often leads to expensive operations.
So you should be sure that you are transmitting correct facts in correct language.
In fact, you should not transmit any message unless you are absolutely sure
of its correctness. If you aren’t, you should immediately verify it from office file, a
colleague, a dictionary, or even a grammar book.
 Send your message at the correct time: All messages must be transmitted and
responded to at the most appropriate time. Outdated information is useless. In fact,
since communication is an expensive process, transmitting outdated information
involves wastage of time, money and human resources. The principle of correct
timing also stipulates that you communicate your message at a time when it is likely
to prove the most effective.
 Send your message in a correct style- This may also be described as the
principle of adaptability. You must adapt your message to the needs of the receiver.
You must keep before you his educational background, the width of his vocabulary,
specialized knowledge of the subject, the depth of the information required, his
psychological make-up, his relationship to you or your organisation, etc.
Barriers to Effective Communication

There exist several barriers in communication. They generate confusion, conflict and
misunderstanding in the organisation by creating bottlenecks, delays and distortions of
information. Several organisational problems relating to smooth working and human
relations exist today in the enterprises because of these barriers. Some of these
barriers are given below:
 Physical Barriers to communication:- The barriers of communication caused by

the physical characteristics of the individuals and the surroundings e.g. the shop
floor manager is not able to listen to the instructions due to noise of the machinery
or due to more distance between the sender & the receiver the communication is
not effective.
 Language or Semantic Barrier:- Language used in the message can also act as
the barrier, especially when the receiver doesn’t know the language used by the
sender. Similarly the difference in the level of understanding of a language will also
act as barrier. The problem also lies when the same word can be interpreted with
different meanings. Using ambiguous wording will also increase the possibilities of
failure of communication.
 Perceptual Barriers:- These are due to differences between individual’s

perceptions to organize, analyze and understand their environment. Differences
in perception arise from different job experiences, educational backgrounds, value
systems, and so on. Accordingly, a person receiving a message may interpret it
in the light of his own background. If there is openness in relationship, everything
that is communicated will be readily believed. Not so, however, if there is a
mutual distrust or misunderstanding between the sender and the receiver of the
message.
 Cultural Barriers:- The differences in cultural background of people also act as

the barriers to communication. For example people from Asian countries depend
on high context communication which means people rely more upon the non
verbal and subtle part of communication where as countries like Germany, USA
the depend on low context which means the rely more upon what is stated rather

than the non verbal attachments to the communication e.g. an instruction “ Machine
operators are suggested to wear protective gear” will be understood by a Japanese Notes
that it is required to wear protective gear while working but a German may interpret
it as an optional, until it is being stated as “ Machine operator must wear protective
gear”
 Structural Barriers:- These may be due to a faulty designing of various jobs or

the existence of inadequate policies, procedures and rules. Thus if there are no
prescribed channels for the persons working in the organisation to communicate
with one another, or if there are no opportunities for people to interact with one
another, there are bound to be barriers to effective communication.
External Barriers
Noise:- Noise is quite often a barrier to communication. In factories, oral
communication is rendered difficult by the loud noise of machines. Electronic noise
like blaring often interferes in communication by telephone or loudspeaker system.
The word ‘noise’ is also used to refer to all kinds of physical interference like illegible
handwriting, smudged copies of duplicated typescript, poor telephone connections, etc.
Time and distance. Time and distance also act as barriers to the smooth flow of
communication. The use of telephone along with computer technology has made
communication very fast and has, to a large extent, overcome the space barrier.
However, sometimes mechanical breakdowns render these facilities ineffective. In such
cases, the distance between the transmitter and the receiver becomes a mighty barrier.
Organisational Barriers
Interpretation of words- Most of the communication is carried on through words,
whether spoken or written. But words are capable of communicating a variety of
meanings. It is quite possible that the receiver of a message does not assign the same
meaning to a word as the transmitter had intended.
Bypassed instructions-Bypassing is said to have occurred if the sender and the

receiver of the message attribute different meanings to the same word or use different
words for the same meaning.
Denotations and connotations- Words have two types of meanings: denotative

and connotative. The literal meaning of a word is called its denotative meaning. It just
informs and names objects without indicating any positive or negative qualities.
 Status Barriers. Status of an organisational member is determined by the

position he holds in the organisation. This fact is quite apparent as subordinate
is communicating with his superior. Obstacle in communication occurs when the
psychological distance between the two is created because of status symbols of the
superior. Status symbols include high quality furniture, separate room, facilities, etc.
A sense of inferiority complex in the mind of the subordinate does not allow him to
seek clarifications from the superior.
 Filtering of Information. Sometimes, the sender intentionally screens the

information for passing only such information which will look favorable to the
receiver. This is because of the simple reason that no one likes to show his
mistakes to someone else, especially to his boss. The boss, on the other hand,
wants to obtain information about what is actually going on, especially those actions
that need his attention. The remedies for filtering are a well-designed feedback
system, development of rapport with subordinates, listening to subordinates with an
understanding attitude and reducing the fear of failure.

Filtering is often a deliberate process. It occurs when a person consciously

Notes decides to let others have only that information he wants them to have. This deliberate
filtration frequently takes place in upward communication. Subordinates pass on only
that information to their supervisors which will project them in a favorable light, cover up
their blind spot, and which the superior wants to hear. This distortion of communication
becomes more severe when an employee is due for promotion or wage increase, and also
when the superior-subordinate relationship is characterized by distrust and suspicion.
 Unclear Assumptions:- The information contained in communication or message

is generally backed up by certain assumptions. The sender may have been quite
clear about the assumptions but unless they are shared with the receiver, there is
likely to be a case of incomplete communication, leading to different interpretations.
Hence it is necessary for the communicator to clarify the assumptions underlying
his message.
 Resistance to Change. People find it convenient and safe to do the things

according to old and customary patterns and methods. For reasons of convenience
and safety, they have a tendency to resist change. The result is that any information
and communication that seeks to introduce a change is likely to be opposed and
overlooked, and hence become ineffective.
 Closed Mind. One of the assumptions implicit in the communication process is that
both the receiver and the sender have open minds, which enable them to process
information in an uninhibited manner. If people limit their ‘agenda’ to their own
narrow goals and views, no effective communication is possible because closed
minds regard all information as unnecessary ‘overload’.
 Inattention. Communication has no impact on those who are unable or unwilling to

listen. This may be a matter of motivation. If people do not pay the required degree
of attention to listening and understanding the messages they are supposed to
receive, communication will lose its purpose. Also, some people are too quick in
commenting on information as it is being received from the sender, without waiting
for full information. This may drive the sender to frustration and into a sense of
futility. The sender may then learn to be diffident in transmitting messages to such
pre-mature evaluators.
 Inconsistencies in verbal and non verbal symbols:- if there is inconsistencies in

verbal and non verbal content we are unable to make out the actual meaning of the
communication, so if an individual is saying something but his facial expressions
or body language is different, we will not be able to understand the actual meaning
hence a communication breakdown will happen.
 Pressure of Time. Executives, particularly those at higher levels, work under great
pressure of time. They cannot afford to interact and communicate frequently with
their subordinates. This causes communication gap between the higher and lower
echelons of management.
 Miscellaneous Barriers. Sometimes, sheer fear and distrust mar effective

communication. The sender may fear that the consequences of transmitting a
particular message may destabilize his own position or the position of the receiver,
even though it is in the larger interest of the organisation to communicate. Some
managers also lose credibility if they are indecisive, inconsistent and indiscreet
in transmitting and receiving information. People who receive from and transmit
information to them seldom attach much importance to the content. Also, personality
clashes among individuals clog the communication channels. Emotions, jealousy,
hatred, conflicting values and interests also interfere with the communication process.

Organisational Communication
The organisational success very much depends on the communication within and Notes
outside. The success of communication depends on what, when, where, how and to
whom a particular information is required to be submitted.
Internal Communication
The communication which takes places within the organisation setup is known as
internal communication. The objectives of internal communication are
 Establishing of the goals of an enterprise.
 Developing plans for their achievement.
 Organising human and other resources in the most effective and efficient way.
 Selecting, developing and appraising members of the organisation.
 Controlling performance.
 Leading, directing, motivating and creating a climate in which people want to

contribute their best.
 Feedback and feed forward.
External Communication
Communication which takes place from the organisation and its external
environment is known as external communication, through external communication the
organisation try to achieve following objectives.
 To know the voice of customers and to collect customer’s feedback.
 To know availability of suppliers and distribution networks.
 To communicate with the stakeholders
 To Market their product and services through advertisements etc.
 To communicate with governmental agencies etc.
1. Government agencies and departments: - Business organisations are required

to deal with licensing authorities, foreign trade offices, customs authorities, banks
and other financial institutions, income tax and sales-tax offices, post offices,
transporters, etc.
2. Distributors, retailers, individual customers, etc: - Modern business is a highly

competitive phenomenon. Marketing research has revealed that the organisations
that can communicate better can also sell better. Sales are promoted through
persuasion and persuasion is another aspect of communication.
Upward Communication and Downward Communication

Upward Communication
The communication which flows upward in the line of authority, with the objective
to receive information continuously emanating from levels below them & ensure the

instructions are being executed as desired is known as upward communication. The

Notes communication channel which pushes the flow of information upward is known as the
upward channel of communication.
Importance of upward communication

 Providing Feedback. Upward communication provides the management
with necessary feedback. The management is able to ascertain whether
the directives issued to the lower staff have been properly understood and
followed. It also gets valuable information on what the employees think of the
organisation and its policies.
 Constructive suggestions. Often employees offer constructive suggestions

to promote the welfare of the organisation. Some of these suggestions, when
implemented, definitely prove beneficial.
 Easier introduction of new schemes. Since the employees feel themselves

to be a party to the decision-making process, it helps the organisation to
introduce new schemes without unduly antagonizing the employees.
 Greater harmony and cohesion. Upward communication acts as a kind

of lubricant. It makes the atmosphere in the company congenial and creates
greater harmony and cohesion between management and the employees.
 Grievance- with the help of upward communication the management can know
the grievances of the lower level and sort out any problems at hand.
Methods of upward communication

 Open-door policy. The employees are given a feeling that the manager’s doors
are always open to them. Whenever they like they can walk into his room, without
any hesitation whatsoever, and talk to him about their problems.
 Complaints and suggestions boxes. At some convenient places in the office or

the factory, complaints-and-suggestions boxes are installed. The employees are
encouraged to drop their complaints or suggestions, if any, into these boxes.
 Social gatherings. Social gatherings are frequently arranged in different

departments. These gatherings offer a very informal atmosphere in which the
employees shed their inhibitions and feel free to talk about their problems.
 Direct correspondence. Sometimes the manager may directly write to an

employee and ask him to communicate with him.
 Reports. Employees may be required to submit reports about the progress of their
work at regular intervals.
 Counseling. In some organisations, workers are encouraged to seek the counsel

of their superiors on their personal problems. What they think to be their personal
problems are often of domestic and official problems. Counseling helps the
employees to solve their problems; information provided by them is utilized by the
managers to give a better shape to their future policies.
Downward Communication
Downward communication flows from a superior to a subordinate or downwards
in the line of authority. The Managing Director communicating with the departmental

heads, a manager giving a directive to an assistant manager or a supervisor, a foreman
instructing a worker, are all engaged in the process of downward communication. Notes
Orders, individual instructions, policy statements, job sheets, circulars, etc., fall under
downward communication.
Downward communication is eminently suited to an organisation in which the line

of authority runs distinctly downwards, with each rank clearly below another, to which
it is directly related. But in the complex structure of large-sized modern organisations,
where a number of executives like the production manager, the sales manager,
the purchase officer, etc., enjoy the equal rank, it is difficult to depend purely on the
downward flow of communication. It continues to hold a prominent place even there, but
it has to be supplemented by other channels of communication.
Main objectives of downward communication
 Give specific directives about the job being entrusted to a subordinate.
 To explain policies and organisational procedures
 To apprise the subordinates of their performance
 To give the subordinates information about the rationale of their job so that they
understand the significance of their job in relation with the organisational goals.
Media for downward communication

Downward communication may be both oral and written. Important directives to
initiate actions may be communicated through letters, policies and procedures may be
announced through circulars, house organs, manuals, bulletins, etc. But the downward
flow of communication is dominated by oral means. It is more natural for the foreman to
issue oral instructions to his workers.
Essentials of effective downward communication
 Managers should keep themselves well informed of the objectives, activities

and achievements of their organisation. If they are themselves in possession
of adequate information, they will be able to transmit information to their
subordinates in an effective manner.
 Managers must work according to a communication plan. They must decide

beforehand how much information is to be communicated and at what
time. This will ensure that there is neither a communication gap, nor over-
communication or under-communication.
 There should not be over-concentration of authority at the higher level. If an

organisation is so structured that orders and instructions can originate at
various levels, the lines of communication will be shortened.
 Information must be passed on to the correct person in the hierarchy. If the

Managing Director by-passes the departmental heads to communicate directly
with the lower staff, he is subverting the organisational structure and creating
future problems for the smooth flow of downward communication.
Lateral or horizontal communication and diagonal communication

Communication than takes place on the same level of the hierarchy for coordination
for work between same or different department is known as lateral or horizontal

communication, where as the diagonal communication take place when there is upward
Notes or downward communication among different departments, e.g. marketing manager
communicating with executive director finance or General manager HR.
Main objectives of horizontal and diagonal communication

 Coordinating activities, among same levels of the department, e.g. assembly line
supervisors communicating with each other.
 Coordinating interdepartmental activities for achievement of organisational goals,

the manager marketing and manager production discussing aggregated demand of
a particular product.
 To strengthen team building.
 To take feed back from the juniors.
 To pass on instructions etc
Grapevine Communication
An informal way of communication which is beyond official network of organisation
communication system, it is developed by the spontaneous interactions among people
in the organisation. It is one of the fastest way of communication but with less reliability
it has its own functional and dysfunctional role in the organisation.
Advantages of Grapevine Communication

 Grapevine helps in creating better cohesion and social bonding among employees,
people talk among each other their personal problems about work or family, or they
talk about general things like politics or ideologies etc this create stronger bonding
among themselves.
 Grapevine communication also helps in filling the gaps or spreading the

explanations that is left in the organisational formal communication.
 Grapevine also helps in managing the frustrations and grudges of the people which
can become a problem, with the help of grapevine the employees can vent out the
pressure, stress or frustrations in a better way resulting in to calmness.
 The grapevine communication carries information very rapidly hence can be used
to know the preliminary reactions of people about a major change planned by the
organisation. This will help in knowing how much support or resistance they will
have to face if they bring the changes in the organisation. Through formal channels
of communication it is very difficult.
 Grapevine can be used as a supplementary mode of communication for such issues

which is for creating awareness or of more general nature.
Disadvantages of Grapevine Communication

1. The grapevine carries partial information at times as it is more based on
rumors. Thus, it does not clearly depict the complete state of affairs.
2. The grapevine is not trustworthy always as it does not follows official path of
communication and is spread more by gossips and unconfirmed report.
3. The productivity of employees may be hampered as they spend more time

talking rather than working.

4. The grapevine leads to making hostility against the executives.
Notes
5. The grapevine may hamper the goodwill of the organisation as it may carry
false negative information about the high level people of the organisation.
6. Grapevine is also dangerous as the information spread through it cant be

verified and is spread in very short time.
7. Can spread rumors which tend to effect the organisation or people’s

reputations, careers etc.
Communication Network
It is a pattern in which the individuals communicate within the group, researchers of
group dynamics define following types of communication networks
 Wheel:- The leader communicate to all the members
 Y pattern:- First the closer person gets to know the information then they spread the
communication to other.
 Chain:- The communication flows from one person to another in a sequential manner.
 Circle:- Here one person can communicate with two adjacent persons.
 Star:- A decentralized way of communication where free flow of communication

among members is possible.
Types of communication
Verbal Communication:- Communication in which the means of communication is
a language, it is known as verbal communication. Following are the examples of verbal
communication
Face to face interaction:- when two or more people communicate with each other
orally or spoken language.
Advantages and disadvantages

It’s an easy of communication, direct contact between sender and receiver helps
in preventing misunderstanding, feedback is immediate and in case the receiver
is not clear he can clarify it in no time. But it also has some disadvantages like
misinterpretation is possible; require a person to record it formally.
Written communication: - Letters, notices, office orders or memos etc are examples
of written communication; here communication is through writing the message.
Advantages & disadvantages

More formal way of communication, economical if sender and receiver are
distantly located, chances of misunderstanding is limited, can reach larger number,
automatically record the communication hence provide proof of communication, give
sufficient time to receiver to understand and act on the communication. It also has
certain disadvantages like expensive, feed back of such communications require more
time and if misunderstood instant clarification is not quite possible. Slower method of
communication lacks security.

Telephonic communication:- Oral method of communication where

Notes telecommunication network is used,
Advantages & disadvantages

Economical and easy way of communication and provide similar benefits like of face
to face interaction as instant feed back and clarifications are possible, the disadvantages
include filter the non verbal symbols which is decisive in understanding the message
that is restricted in telephonic communication.
Electronic Communication:- The communication which is done through electronic

transfer of data e.g. internet, email, mobile etc.
Advantages and disadvantages

Instant and real time communication, the message can be sent to many in one
single step, economical and message can also be sent across the globe instantly, can
handle written or spoken communication simultaneously. The disadvantages include
the access should be available and uncertainty whether the receiver has checked the
communication or not.
Non Verbal Communication

Communication which takes place without any language but through actions or
behaviors is known as non verbal communication. Non verbal communication includes
following ways
Expressions:- Human face is considered as the mirror of the person and facial
expressions act as medium of communication, we communicate a lot through our
facial expressions. It is very significant as even in verbal communication if the signs
from facial expression don’t compliment the verbal message the meaning would not be
understood by the receiver. Frowning, brightening of eyes, smiles etc are the examples
of expressions.
Gestures:- The signs and symbols made by hands are defined as gestures, by using
the gestures we can communicate a lot of things e.g. waving of hands is done to gain
attention or saying bye.
Eye Contact:- The eye contact between individuals show the signs of confidence
and interests, so if a person is maintaining eye contact it reflects that the listener is
paying attention or he has confidence in what he is speaking, but if he try to avoid eye
contact it reflect the opposite i.e. the person is trying to avoid communication or is not
interested.
Posture:- How you stand or walk etc also the way of communication e.g. drooping
shoulder show lack of confidence, opening the arms is indicator of liking, folding arms
across the chest shows insecurity etc
Dress:- The way a person dress also communicate a lot, a well fit suit worn by a
person will communicate something different if the suit is misfit or worn in a shabby
manner.
Distance:- Physical proximity is also a method of communication; you feel happy to

come closer to your friends etc and try to maintain sufficient distance from strangers.

Handshake:- The way you shake hands also communicate, a firm hand shake
shows sign of interest where as a cold hand shake like a dead fish shows disinterest. Notes
Tone of voice:- A firm, clear and slow voice shows authority and confidence, at the
same time firm clear but high pitch sound show lack of confidence and insecurity.
Decision Making.
Decision making is an intellectual process of selecting a suitable alternative from the
available alternatives to achieve a desired result in the best manner. Our professional
and personal life depends on the quality of our decisions. The quality of decision is
depends on the outcome or results of our decisions. Secondly the decision making
process is based on the subjective and objective analysis done by the decision maker.
The accuracy level and results of decisions can’t be predicted with much confidence
as the subjective calculations will have personal biases and if we talk about rational
analysis it will depend upon the quantity and quality of information collected for decision
or available for decision making. Secondly in both the cases the decision making
environment if dynamic will reflect its effect so we can only say that decision making is
very significant and critical for the success of an individual or organisation & to make
right decisions is very difficult.
To understand the decision making we should first start with the characteristics of
the decision making.
 Decisions are required whenever there is a situation of uncertainty i.e. until

there is no impending situation, decisions are not made.
 Decisions can only be taken when alternative course of actions are available.
In other words if there is no choice of alternatives there can be no decision,
even if a situation of “to be or not to be” can be considered as decision making
situation as it provide two course of actions.
 Decision making is more of an intellectual process where we integrate the

rational (Quantitative analysis) and subjective (Qualitative analysis) analysis to
select a particular course of actions.
 Decision making process is always a goal oriented process, if we don’t have

anything to achieve we don’t make decisions.
 Decision making is a continuous process, we are always engaged in decision

making throughout our personal and professional life.
 The future of organisation and individual depends upon the outcome of

decisions.
 Decisions made by us can have a series of direct and indirect effects on others
as well.
 Decisions usually implies commitments of resources like time, money etc which
can be short or long term. Once the decision is taken the organisation moves in
a specific direction.
 Outcomes of decisions can’t be predicted with much accuracy hence risk is

always attached with the decision.

Decision Making Process.

Notes Identification of Situation or Problem
The decision making process will begin with identification of a situation of
uncertainty or problem, here the situation arises usually due to disparity between
the expected and the actual or where we foresee a happening which can result in to
something which is not desired by us. In organisation the problems can be of various
sorts like high turnover of employees, decrease in sales or profit, loss of productivity
etc. The decision making will start when the manager considers it and identify it as a
situation or problem.
Defining of situation or Problem

Once the situation is being identified we proceed to define it. Defining problem
involves following.
 To analyze whether the problem or situation is real or imaginary, sometimes the

situation or problems are non existent but individuals or groups project it as a
serious problems.
 To find out actual problem or situation which requires intervention, we should

not seek symptomatic solution but we have to find out actual problems and
reason behind it.
 To find out the extent to which the situation will result in to an adversity. i.e. we
have to work on the nature of problem.
 Finally we can define the problem stating the situation in a specific manner and
its implications.
Identifying and formulating alternatives

Once the problem is defined half of the decision making process ends as defining
the problem will also direct in devising the right solution and effective decisions. Now
we have to formulate the alternatives which can be implemented to achieve the desired
goals. We can formulate different alternatives depending on the factors like information
we have, the impact of situation, the time available, the authority, the constraints etc.
The number and efficacy of alternatives will also depend on the creativity and
innovative skills of the decision maker.
Evaluating alternatives
This is very crucial stage of the decision making process. This is the stage where
you have to analyze each alternative you have come up with. The alternatives are
evaluated by the commitments required, the constraints, the probable outcomes and

probability of realizing them, the effects of decision in terms of its advantages and
disadvantages, limitations of our analysis etc. Notes
Select the best suitable alternatives
After the evaluation it is not at all necessary we can come up with one best solution
or decision, each alternative may give a different set of inputs and projected outcomes.
The final selection will be a intellectual process which will choose the one alternative
from other.
Implement the decision

Once the decision is being made we have to put it into action, which will involve
what to do, when to do, whom to be done etc. Implementation will also require removal
of hindrance, allocation of resources and communication to all those who are directly or
indirectly related with the decision.
Monitor the implementation and outcomes of decisions

We have to monitor the implementation to ensure that implementation of decision is
done in right perspective, to find out any problems which are coming in implementation;
the preliminary out comes of the decision, the feed back from the persons who are
effected by your decision. All this helps in finding whether the decision implemented will
give the desired outcome, secondly modification if required can be done without delays
and any corrective action to fill the gaps between expected and actual.
Verify the decisions

Finally we verify the results actually coming from our decisions; the decisions can
bring results as expected, below expectations or beyond expectations. This verification
of decisions will let us know the reason of such outcome. We can critically appraise our
decisions and our knowledge will be enhanced which will improvise our decision making
process.
Types of Decision
Routine Decisions:- Situations or problems for which there is predetermined

alternatives exist only the execution of the decision is required, these decisions have to
be taken on routine basis as the emergence of such situation is normal and expected.
The result of such decisions will be minor in terms of organisational effect and have
short term impact, such decision are usually taken by middle or lower level of manager
e.g. the works manager marking a worker absent as per the policy of company because
he had not taken a leave with prior information.
Basic Decisions:- Decisions which are not routine and are taken for entirely new
situation or problems at hand, require inventiveness and different approach, such
decisions require more information and extensive analysis to formulate and execute.
They have long term impact and require more commitments in terms of resource and
time allocation. The impacts of such decisions are very significant for the organisation
and manager’s future.
Strategic Decision:- These decisions are taken by top management to formulate

the long term targets of the company, the method to be adopted to achieve them and

policy and procedures which will govern the entire functioning of the organisation. It
Notes involves the decisions pertaining to survival and existence of the organisation. Such
decisions are fundamental in nature and require long term commitments, enormous
resources and have high degree or risk and uncertainty. Such decision include defining
the vision and mission statement, formulating policy and procedures, creation of
different strategic business units etc.
Tactical Decisions:- Tactical decisions are those decisions which are taken to
counter sudden realization of a situation, these decisions are for short term and require
immediate attention and have minor implications on organisation performance. They
are more of routine decisions.
Decision making as a rational process

It is very difficult to state that the decision making is completely rational process
where the decision maker is trying to achieve the optimum solution, if the decision
making is thoroughly rational process then following conditions should be there, firstly
the decision maker has complete clear cut idea of the objective to be achieved & he
exactly know the problem.
Secondly all the alternative choices are known to the decision maker along with
the outcomes of each alternative. At the same time these outcomes are certain.
The decision maker is assumed to be aware of the relation of each outcome to the
achievement of the goal which makes him capable to rank each alternative in the best
possible manner. Decision maker will select the best alternative from the available
alternative so as to optimize goal achievement.
The above theory is ideal state of decision making or a normative theory as the
assumption considered here are far from reality because of the following
 The identification of real problem & clear definition of it is unpredictable the certainty
that decision maker will be able to identify and define the problem is limited.
 There are chances that the actual problem will not be identified by the decision
maker.
 It is vague to assume that the decision maker has complete knowledge. We

have to accept the limitation that every person have limited knowledge towards
problem, available alternatives and skills to evaluate and select the best
alternatives.
 We have to make our decisions in various constraints of time and resources,

along with it; we have to consider the work pressure and stress under which we
have to make our choices.
 Some times the decision maker has to take decision due to constraints of
political behavior of self or others which means either the decision maker will
take a decision which will not be best for the problem but for some political
benefit or he has to manipulate a decision so as to get maximum advantage
from the situation.
 Lastly we have to keep in mind the limitation of our cognitive skills, we can’t
assume that every decision maker is having the same kind of knowledge and
analytical skill to foresee and predict things and take the best decision.

Summary
Learning can be defined as a relatively permanent change in the cognition, which is Notes
reflected by the change in the action or behavior of the individual. Sometimes learning
brings subtle changes in the cognition and only slightly changes the behavior as the
changes happen only internally. According to this social learning theory of Bandura,
people learn through observing behavior, attitudes, and outcomes of those behaviors
of others and are influenced by factors like attention, retention, reproduction and
motivation. Ivan Pavlov added shown how relationship between stimulus to response
can be used for learning, his studies were known as classical conditional learning, later
B F Skinner propounded the theory of Reinforcement which was based on the fact that
people tend to modify behavior if the outcome of such behavior is according to their
benefits, and explained concept like positive and negative reinforcement, extinction and
punishment.
David Kolb given the Experiential Learning Theory the main concept of the theory
is the Cycle of Learning which shown the learning as four stage cycle of learning begin
with ‘immediate or concrete experiences’ which provide a basis for ‘observations and
reflections, which are assimilated and distilled into ‘abstract concepts’ producing new
implications for action which can be ‘actively tested’ in turn creating new experiences.
Perception can be defined as an intellectual process of receiving data from the

environment, organising it & interpreting it in to meaningful information. Perception is
a way to understand things around us and define our world. Perception is influenced
by three factors: Characteristics of perceived, Characteristics of perceiver and situation.
Perception is a process in which the individual receive data through his senses and this
data is being analyzed on the cognition and he make out an understanding of the entire
situation. Selection of data received depends on nature, size, color, novelty or similarity
or such factors, along with the individual’s internal framework of needs, learning and
interests, based on the data collected through selection it is organized within the mind
to make an assessment of the environment, this organisation of data is influenced
due to factors like figure ground principle, ambiguity of data, perceptual grouping etc,
based on organisation the interpretation of the situation is done, Interpretation is the
process of making out some meaningful out of the situation and understanding of it.
Interpretation is effected by factors like perceptual set, attributions, stereotyping, horns
or halo effects etc, Harold Kelly has given Attribution Theory where he defined the
various factors on the basis of which make an understanding of the behaviors of others.
Personality can be defined by the relatively permanent set of psychological and

physical behavioral attributes that makes a person distinctive from others. In other
words personality is the mind set, perception and actions of a person which makes one
person different from others. Personality of a person depends on various factors like
heredity or cognitive factors, social learning, education, experience etc. many experts
tried to define various personality types e.g. Carl Jung defined the introvert and extrovert
personality, Dr. William Sheldon defined personality as endomorph, mesomorph and
ectomorph. Gordan Allport defined the concept of personality in terms of traits through
his trait theory of personality; Sigmund Freud defined the personality in ego, super ego
and Id. The ideas of Machiavelli are being converted in to personality theory where the
individual’s personality is being defined as High Mach and low Machs. Later Meyer
Friedman and Ray Rosenman two cardiologists while trying to identify characteristics of
individuals susceptible to cardiovascular diseases found that people represent two types
of behaviors Type A and Type B, according to them people having Type A behavior are
more prone to heart diseases as compared to Type B behaviors. These behaviors can
also be analyzed to throw some light on the personality of a person.
Transactional Analysis (T/A) is one of the tools developed by behavioral scientists

which is used for “analysis of transactions” or understanding of communications that

occur between people. It is a rational approach to understanding behavior and is

Notes based on the assumption that any person can learn to trust himself or herself, think
rationally, make independent decisions, and express feelings. In transactional analysis
the egos of individuals are defined as parent ego, child ego or adult ego and it explains
the behaviors of individuals in terms of which ego state the people are present when
interacts with others. Conflict can be defined as a difference of opinion or as complex
as a lengthy battle over matters of significant importance. Conflict usually occurs when
two or more individuals or groups have contradicting opinion or approach towards the
same situation. The conflict can be because of individual reasons like difference in
personality or culture or value system or egos and professional reasons like constraints
in resources, work stress, competition etc. conflict in limits is beneficial as it improves
healthy completion and stimulates people to be more innovative and creative, conflict
also helps in eliminating mistakes and errors. But if conflict increases it become
dysfunctional and can be disastrous. Conflict can occur due limited resource availability,
communication gaps, individual or departmental differences, role ambiguity etc, the
conflict can be of various types like intrapersonal (within an individual), interpersonal
(between individuals), intragroup (within a group), intergroup (between groups), and
intraorganisational (within organisations). Conflicts can be resolved through different
strategies like ignoring, smoothing, compromising, forcing and problem solving.
Motivation can be defined as that particular reason/s which prompts a person to

behave in a particular manner in his personal and professional life, motivation is the
driving force behind individual to behave in a particular manner, motivation decide the
level of effort and performance shown by the person. Process of motivation is being
explained differently by authors and expert and can be classified as content theory
where motivation focus on human needs or desires which directs individual’s behavior.
Content theorists study the needs which direct an individual to behave in a particular
manner. The second is the process theory motivation is based on the description of
what are the needs of person and the process which they follow to achieve it. Content
theories include Maslow’s Hierarchy of needs theory, McClelland theory, Herzberg two
factor theory, McGregor’s theory X and theory Y. Process theories include need goal
theory, Vroom’s expectancy theory, Adams’ Equity Theory, Porter-Lawler Theory.
Coordination is process of integrating the efforts And Activities of the different

section of the organisation to achieve the organisation objectives. Coordination helps
the organisation to streamline its different functions so that all its efforts are directed
towards achieving its organisational goals. The significance of coordination can be
understood by the fact that all the different efforts of the organisation are inter related
& inter dependent on each other, the performance of each department or activity is
dependent on other so if the arrangement of the efforts & activities are done in such a
manner that no activity or task is unduly effected by other process it is coordination.
Communication is the process by which we share our ideas, thoughts, feelings &
emotions with other people. The effective communication is when these ideas, thoughts,
feelings & emotions are understood by the people in the same manner as we want to.
Different component of communication process are sender, receiver, message,

coding, decoding, medium, barriers and noise. Basic requirement of communication
is that it should be clear, concise and complete and is done with proper consideration
and courtesy. There exist several barriers in communication. They generate confusion,
conflict and misunderstanding in the organisation by creating bottlenecks, delays
and distortions of information. Several organisational problems relating to smooth
working and human relations exist today in the enterprises because of these barriers.
Some of these barriers are physical barrier, language or semantic barrier, perceptual
barriers, cultural Barriers, structural barriers, external barriers like noise, distance and
organisational barriers etc. organisational communication can be classified as internal

and external, horizontal, vertical and diagonal communications. Within organisation
Grapevine communication a informal communication mechanism has a very important Notes
role as it can be used for constructive or destructive purpose. Decision making is an
intellectual process of selecting a suitable alternative from the available alternatives to
achieve a desired result in the best manner. Our professional and personal life depends
on the quality of our decisions, the quality of decision is depends on the outcome or
results of our decisions. The process of decision making begin with a situation which
require us to take up a decision, then individual find out alternative course of action, in
case there is only one alternative then there is no decision making. If there are number
of alternatives then on the basis of analysis of each alternative and its probability of
success we select the most suitable alternative this process of selecting the best
alternative is decision making, decisions can be of different types like strategic decision,
tactical decision, routine decisions etc.
Check Your Progress

1. The reinforcement theory of learning is given by--
a) B F Skinner
b) Likert
c) Bandura
d) None of the above
2. The Social Learning theory of learning is given by--
a) B F Skinner
b) Bandura
c) Ivan pavlov
d) Maslow
3. Expectancy theory of motivation is given by--
a) Maslow
b) Herzberg
c) Vroom
d) Adam
4. Transactional Analysis is developed by--
a) Renis likert
b) Mintzberg
c) Eric Berne
d) None of the above

5. The Grapevine communication means--

Notes
a) Supervisor giving instructions to juniors
b) It is not the formal channel of communication and has not clear pattern of
communication.
c) A method of non verbal communication
d) A method of communicating grievances in organisation
6. Tactical decision is a decision--
a) For long term planning of the organisation
b) A regular decision taken when subjected to day to day problems
c) Decision taken when some particular situation arise.
d) Decision which is taken by a committee.
Questions and exercise

1. Explain the different ways of learning.
2. What are the factors which effects the perception of an individual?
3. Explain the various theories of personality?
4. Explain different types of conflict? Explain different strategies to resolve

conflict?
5. Explain the Vrooms expectancy theory and Alderfer ERG theory?
6. Define the essentials for effective communication.
7. Decision making is a complex subjective process and rationalizing of decision

making is a useless activity. Comment on the above statement and give
justification with your response
For Further Readings

1. Human Relations and Organisational Behaviour, Mr. R.S. Dwivedi
2. Organisational Behaviour, Mr. Sanjay Srivastav
3. Essentials of Management, H. Koontz
4. Principles and Practices of Management : Bakshi
5. Barat, N. 1998, Emerging issues in Management, Excel Books, India.
6. 12.Greenberg, J. & Baron, R.A. 1993, Behaviors in Organisations, Allyn and

Bacon, Boston

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Management Functions & Behaviour 77

Unit - III : Individual

The learning through observation learning is influenced by following factors

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 Retention — It is the amount of memorizing or retaining the observation in your mind

 Reproduction — It is the process of performing or repeating the observed behavior

According to Bandura this theory defines the concept of “reciprocal determinism”,

2. Classical Conditioning (Ivan Pavlov)

In technical terms, the meat powder is considered an unconditioned stimulus (UCS)

3. Reinforcement Theory ( B.F. Skinner )

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Reinforcement theory is the process of shaping behavior by controlling the

Background and Development of Reinforcement Theory

Reinforcement, Punishment, and Extinction

 Negative reinforcement:- Results when an undesirable behavioral consequence

 Punishment:- When an undesirable action or behavior is subjected to undesirable

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to modify the behavior is a punishment. Here coming on duty in drunken condition

 Extinction:- It is a process of withholding a desirable or favorable consequence as

 Continuous reinforcement:- It is a schedule of reinforcement where a behavior

 Intermittent reinforcement: - It is a schedule of reinforcement where each instance

 Fixed interval schedules of reinforcement:- When desired behaviors are

 Fixed ratio schedule of reinforcement:- When reinforcement is done after a set

 Variable interval reinforcement schedules:- When desired behaviors are

 Variable ratio reinforcement schedule:- When the reinforcement is done after a

Reinforcement Theory Applied to Organisational Settings

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 Providing behavioral consequences that reinforce desired behavior.

 Determining the effectiveness of the program by systematically assessing

Reinforcement theory is an important explanation of how people learn behavior. It

Cognitive theory of learning

The learning is through two processes accommodation and assimilation, where

Experiential Learning Theory (David Kolb)

According to Kolb a learner will go through a cycle of experiencing, reflecting,

Kolb’s model therefore works on two levels - a four-stage cycle:

 Reflective Observation - (RO)

 Abstract Conceptualization - (AC)

 Active Experimentation - (AE)

Based on the above Kolb had defined four styles of learning

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According to experiential learning if we know the orientation of learner then we can

Here are brief descriptions of the four Kolb learning styles:

 Assimilating (watching and thinking - AC/RO) - The Assimilating learning

 Converging (doing and thinking - AC/AE) - People with a Converging learning

 Accommodating (doing and feeling - CE/AE) - The Accommodating learning

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Perception is influenced by three factors: Characteristics of perceived,

The flowchart of perception can be represented as follows.

Stimuli: - it can be defined as changes in the environment; these changes can be

Receiving:- the changes in our environment is detected by receiving data through

Perceptual Selection or Attention:- when there are changes in our environment,

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External factors which influence perceptual selection

Internal factors that influence perceptual selection

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Perceptual Organisation: - It is a mental process to organize the stimulus received

Perceptual Grouping:- It is the phenomenon to group objects, individual and events

 Principle of similarity:- We tend to see similar things as one group, so employees