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MB0038 - Management Process and Organization Behavior: Master of Business Administration-MBA Semester 1
MB0038 - Management Process and Organization Behavior: Master of Business Administration-MBA Semester 1
The most common form of group decision-making takes place in face-to-face interacting
groups. Interacting groups often censor themselves and pressure individual members
toward conformity of opinion. Once a manager has determined that a group decision
approach should be used, he or she can determine the technique best suited to the
decision situation. Seven techniques are summarized below:
2. Nominal Group Technique (NGT): The nominal group technique restricts discussion
or interpersonal communication during the decision-making process, hence the term
'nominal'. Group members are all physically present, as in a traditional committee
meeting, but members operate independently. NGT has the following discrete steps:
i) Individuals silently list their ideas.
ii) Ideas are written on a chart one at a time until all ideas are listed.
iii) Discussion is permitted, but only to clarify the ideas. No criticism is allowed.
iv) A vote is taken by ballot or other recordable means.
NGT is a good technique to use in a situation where group members fear criticism from
others. The chief advantage of the NGT method is that it permits the group to meet
formally but does not restrict independent thinking, as does an interacting group.
3. Delphi Technique: The Delphi technique originated at the Rand Corporation to
gather the judgements of experts for use in decision-making. The Delphi method is
similar to the nominal group technique except that it does not require the physical
presence of the group's members. Experts at remote locations respond to a
questionnaire. A co-ordinator summarizes the responses to the questionnaire, and the
summary is sent back to the experts. The experts then rate the various alternatives
generated, and the co-ordinator tabulates the results. The following steps characterize
the Delphi technique.
i) The problem is identified and members are asked to provide potential solutions
through a series of carefully designed questionnaires.
ii) Each member anonymously and independently completes the questionnaire.
iii) Results of the questionnaire are compiled at a central location, transcribed, and
reproduced.
iv) Each member receives a copy of the results.
v) After viewing the results, members are again asked for their solutions.
4. Electronic Meetings: This method blends the nominal group technique with
sophisticated computer technology. Issues are presented to participants and they type
their responses onto their computer screen. Individual comments, as well as aggregate
votes, are displayed on a projection screen.
5. Devil's Advocacy: In this method, an individual or a group is given the role of critic.
This person(s) (called Devil's Advocate) has (have) the task of coming up with the
potential problems related to a proposed decision. This helps organizations avoid costly
mistakes in decision making by identifying potential pitfalls in advance.
6. Quality Circles and Quality Teams: Quality circles are small groups that voluntarily
meet to provide input for solving quality or production problems. Quality circles are often
generated from the bottom up; that is, they provide advice to managers, who still retain
decision-making authority. As such, quality circles are not empowered to implement their
own recommendations. They operate in parallel, 'dotted-line' linkages to the
organization's structure, and they rely on voluntary participation.
Quality teams, in contrast, are included in total quality management and other quality
improvement efforts as part of a change in the organization's structure. Quality teams
are generated from the top down and are empowered to act on their own
recommendations.
Quality Circles and quality teams are methods for using groups in the decision-making
process. The next method, self-managed teams take the concept of participation one
step further.
7. Self-managed Teams: Self-managed teams make many of the decisions that were
once reserved for managers, such as work scheduling, job assignments and staffing.
Unlike quality circles, whose role is an advisory one, self- managed teams are delegated
authority in the organization's decision-making process.
Before choosing a group decision-making technique, the manager carefully evaluates
the group members and the decision situation. Then the best method for accomplishing
the objectives of the group decision-making process can be selected. For example:
a) The need for expert input would be best facilitated by the Delphi Technique.
b) Decisions that concern quality or production would benefit from the advice of quality
circles.
c) If group members were reluctant to contribute ideas, the nominal group technique
would be appropriate.
d) A manager who wants to provide total empowerment to a group should consider the
possibility of allowing it to self-manage itself.
There are several types of intrapersonal conflict, including inter-role, intra-role and
person - role conflicts.
Inter-role Conflict: Occurs when a person experiences conflict among the multiple roles
in his or her life. One inter-role conflict that many employees experience is work/home
conflict, in which their role as worker clashes with their role as spouse or parent.
Intra-role Conflict: Is conflict within a single role. It often arises when a person receives
conflicting message from role senders (the individuals who place expectations on the
person) about how to perform a certain role.
Person-role Conflict: Occurs when an individual in a particular role is expected to
perform behaviours that clash with his or her values. For example, salespeople may be
officially required to offer the most expensive item in the sales line first to the customer,
even when it is apparent that the customer does not want or cannot afford the item. This
may conflict with the salesman's values or past experience, and he may experience
person-role conflict.
Analyzing this type of conflict is difficult because "inner states" of the individual must be
assessed.
2. Inter-individual Conflict: When two individuals disagree about issues, actions, or
goals and where joint outcomes become important, there is inter-individual conflict.
Research on this type of conflict (e.g., marriage counselling) often focuses on
personality differences and why individuals feel obliged to block the goal attainment of
the other person. Inter-individual or interpersonal conflict often arises from differences in
individuals' status, perceptions and orientations. Such conflict may motivate individuals
to reveal additional relevant issues or it may prevent any further communication. To
further complicate matters, some individuals are more likely to engage in conflict than
others.
The second case of individual-group conflict is one in which subordinates of one boss
collectively disagree with a course of action the boss wants to take. A conflict exists here
because the subordinates are blocking the goal achievement plans of the boss. Although
the boss can exercise formal authority to suppress this type of conflict, this is generally
an unwise course, since subordinates often find a way to retaliate.
2. Inter-group Conflict: This involves conflict between groups of people, irrespective of
the size of the group. Included in this category, therefore, is interdepartmental conflict
within organizations. Inter-group conflict
exists between or among groups. Such conflicts can be traced to competing goals,
competition for limited resources, cultural differences, power discrepancies and attempts
to preserve the groups' separate identities.
3. Organizational Level Conflict: Conflict can also exist between organizations. The
amount of conflict may depend on the extent the organizations create uncertain
conditions for competitors, suppliers, or customers; attempt to access or control the
same resources; encourage communication; attempt to balance power in the
marketplace; and develop procedures for resolving existing conflict. Recent attempts to
manage such conflict and ensure that it has a positive impact on organizational
performance have emphasized the formation of strategic alliances and partnerships.
The above diagram shows the course of the General Adaptation Syndrome (GAS) and
describes the psychological and physical response to stress – that is, the way a person
tries to adapt to a stressor. The syndrome is called "general" because the stress
response occurs in several areas of the body. GAS has 3 stages.
1. Alarm Stage: According to this model, the general adaptation syndrome begins when
a person encounters a stressor and enters the alarm stage. A person in this stage
wonders how to cope and feels anxiety, even panic. The person breathes faster, blood
pressure rises, pupils dilate and muscles tense. At this stage, the person is coping
ineffectively.
2. Resistance: Assuming the person can summon the resources to cope with the
stressor, he or she begins to feel more confident and to think of how to respond. During
the second stage of the general adaptation syndrome, "resistance", the person channels
his or her energy and uses it to resist the stressor's negative effects. The person tackles
the problem, delegates the challenge, or adjusts to the change. Resistance to the
stressor is high, but the person's resistance to other stressors may be low because the
body's resources are being used up. Evidence shows that a person's immune system
function tends to decline during periods of stress.
3. Exhaustion: Many stressors are short term - the person manages to solve the
problem, or the situation ends on its own. In such cases, the general adaptation
syndrome ends during resistance stage. But occasionally, a stressor persists. In
situations where stressors persist, the person may enter the third stage: exhaustion. In
this stage, the symptoms of the alarm stage return and the person eventually uses up
his or her adaptive energy.
• Reason – Use of facts and data to make a logical or rational presentation of ideas
- Friendliness – Use of flattery, creation of goodwill, acting humble, and being friendly
- Coalition – Getting the support of other people in the organization to back up the
request
- Bargaining – Use of negotiation through the exchange of benefits or favors
- Assertiveness – Use of a direct and forceful approach such as demanding compliance
- Higher authority – Gaining the support of higher levels in the organization to back up
requests
- Sanctions – Use of organizationally derived rewards and punishments
Employees rely on the seven tactics variably. Depending on the situational factors,
individuals tend to use the above strategies accordingly to the suitability and the
likelihood of the success to be achieved by employing the same. The manager’s relative
power impacts the selection of tactics in two ways.
- First, managers who control resources that are valued by others, or who are perceived
to be in positions of dominance, use a greater variety of tactics than do those with less
power.
- Second, managers with power use assertiveness with greater frequency than do those
with less power.
- Resistance leads to managers using more directive strategies.
The manager’s objectives for wanting to influence causes them to vary their power
tactics. The objectives may be as follows:
- When seeking benefits from a superior, they use friendliness.
- When they are in need to make superiors accept new ideas, they usually rely on
reason.
- Managers use reason to sell ideas to employees and friendliness to obtain favors.
Research evidence also supports the following with regard to use of tactics and the
choice used by managers with regard to power:
Sikkim Manipal University Page No. 224 The manager’s expectation of the target person’s
willingness to comply is an important factor. When past experience indicates a high
probability of success, managers use simple requests to gain compliance. Where
success is less predictable, managers are more likely to use assertiveness and
sanctions to achieve their objectives. The organization’s culture also plays an important
role in deciding the use of power tactics. The organizational culture in which a manager
works, will have a significant bearing on defining which tactics are considered
appropriate. The organization itself will influence which subset of power tactics is viewed
as acceptable for use by managers. People in different countries tend to prefer different
power tactics. For example in US people prefer use of reason in contrast to China where
coalition as a tactic is preferred. Differences are consistent with values among
countries–reason is consistent with American’s preference for direct confrontation and
coalition is consistent with the Chinese preference for using indirect approaches.
There are eight basic types of influence tactics. They are listed and described in the
table below:
Power tactics
Tactics Description Examples
Pressure The person uses If you don't do this,
demands, threats, or you're fired. You have
intimidation to convince until 5:00 to change
you to comply with a your mind, or I'm going
request or to support a without you.
proposal.
Upward appeals The person seeks to I'm reporting you to my
persuade you that the boss. My boss
request is approved by supports this idea.
higher management, or
appeals to higher
management for
assistance in gaining
your compliance with
the request.
3. Long-range Change: OD efforts are not meant for solving short-term; temporary, or
isolated problems. Rather, OD focuses on the elevation of an organization to a higher
level of functioning by improving the performance and satisfaction.
4. Dynamic Process: OD is a dynamic process and includes the efforts to guide and
direct changes as well as to cope with or adapt changes imposed. It recognizes that
organizational goals change, so the methods of attaining these goals should also
change. Thus, OD efforts are not one-shot actions; rather, they are ongoing, interactive,
and cyclic processes.
7. Normative Educational Process: OD is based on the principle that „norms form the
basis for behaviour and change is a re-educative process of replacing old norms by new
ones‟. This is done to arrive at certain desirable outcomes that may be in the form of increased
effectiveness, problem-solving, and adaptability for the organization as a whole. At the individual
level, OD attempts to provide opportunities to be „human‟ and to increase awareness,
participation, and integrate individual and organizational goals