MEANING AND THE SCOPE OF ORGANIZATIONAL PSYCHOLOGY

An effective organization is a living thing, because an organization is its people breathe life
and purpose into an organization. An organization has a manner, spirit, tempo, nature and
character. It has moods joys, fears, and sorrows. But most important of all, an effective
organization has purpose that is shared by all its members, to which they willingly commit
efforts. Organization can be formal or informal. Formal organizations are normally where
people work in consistent, predictable way with others in the organization, regardless of who
they are personally. Informal organizations are patterns of consistent relations among members
of organization, regardless of the position they occupy. Any analysis of a complex
organization must deal with both its formal and informal aspects.

When you hear the words ‘organizational psychology’ you may picture a psychiatrist stationed
in the office staff lounge. But organizational psychology is something different. Sometimes
called industrial-organizational psychology, business psychology, or simply ‘work
psychology’ – organizational psychology is the scientific study and application of
psychological principles to organizations and the workplace. It’s the science of how people
think and behave at work. If this is your first time hearing about organizational psychology,
you’re not alone. It’s a small field, but there are a number of reasons why you should care
about organizational psychology.

Organizational psychology is the second broad sub-discipline recognized with I–O

psychology. Topics traditionally considered within the domain of organizational psychology
include: (a) internal states of individuals related to jobs (e.g., work motivation, job satisfaction,
and organizational commitment); (b) determinants of effective interpersonal interactions
within organizations (e.g., leadership, group behavior, and team performance); and (c) the
design of work, organizational structures, and organizational systems that facilitate individual
and organizational effectiveness. As can be seen from this topic list, the potential impact of
organizational psychology is far broader than industrial psychology, ranging from values,
emotions, and cognitions within a person through the dynamics of interpersonal
communication (in groups, teams, or leader/member dyads) to system wide interventions such
as the creation of a continuous learning environment.

As a field of study, it is easy to relate the field of organizational psychology to the experiences
of most persons. Why does someone love or hate his or her job? Are satisfied workers better
job performers? How does job stress undermine job performance and does job stress spill over
into home life? What makes someone an effective leader? Why are some tasks intrinsically
interesting and others boring? How can some organizations consistently sustain employee
growth and firm performance? While the questions asked by organizational psychologists feel
familiar, it is harder to capture or describe the methods used by organizational psychologists to
improve organizational effectiveness. Very often, interventions are systemwide, their casual
impact on measurable outcomes are not readily apparent. For example an I–O psychologist
may conduct an attitude survey to study reasons for high turnover among entry-level workers,
then recommend an array of system changes including employee flextime, new compensation
plans, self-managed work teams, and additional communication training for managers. Given
seemingly random fluctuations in product demand, the overall economy, competitors'
strategies, and available labor pools, the relationship between the I–O intervention and reduced
turnover may be difficult to isolate.

One area of organizational research that has produced consistently positive findings (and
successful interventions) is the goal-setting theory of work motivation. While goal setting
cannot account for all motivated behavior, as first articulated by Locke (1968), goal-setting
theory simply states that employees work harder and perform better with a goal than without.
Moreover, more difficult and more specific goals result in higher motivation (and better
performance) than easier or less specific goals; thus social workers who set a goal of helping
50 clients per-month will perform better than if they had set a goal of 25 clients or simply
‘trying their best.’ Goal-setting theory has been supported by considerable field and lab
research, and holds valuable practical implications for managers. Managers can motivate
employees by helping them set specific goals and by gaining commitment to goal attainment.

While I–O psychologists have been able to provide valuable tools to managers and leaders
such as goal setting and group decision-making strategies, the determination of what makes
someone an effective leader has proven elusive. Researchers in the 1940s sought to define
physical, intellectual, or personality traits of successful leaders. After failing to come to
consensus on leader traits, researchers in the 1950s focused on what leaders did, seeking to
find a set of effective leader behaviors. Fiedler (1967) was the first researcher to advocate a
contingency approach—what leader behaviors were the most effective depended on the
situation (often defined in terms of task difficulty, characteristics of followers, and/or forms of
environmental uncertainty or strain). While most modern leadership theories can be
characterized as contingency models, there is little agreement as to what is the best approach.

As organizations move into the twenty-first century, the nature of work and characteristics of
the workforce appear to be changing rapidly and already are greatly affecting the research of
organizational psychologists. Consider the implementation of computers and technology. Not
only does the automation of work change worker requirements (e.g., telephone workers who
once carried bundles of wire up poles now program fiber optic relay changes on the computer),
but hold implications for where work is done (e.g., telecommuting), how information is shared
(e.g., the use of video conferencing and e-mail), and even who or what piece of equipment is
considered part of a team (e.g., should a robot be invited to an autoworker's retirement party?).

Demographic population shifts have resulted in a workforce that, compared to 30 years ago, is
older, more ethnically diverse, and more likely to be female. Not surprisingly, distinctions
between work and non work settings are blurring, and I–O psychologists are being asked to
help organizations manage the impact of diversity, work–life balance, and the introduction of
new technology on member satisfaction and productivity. Examples of this type of work
include evaluating the cost effectiveness of providing an onsite daycare or exercise facility,
training managers to interact effectively with members of diverse ethnic groups, or surveying
members for indicators of lower organizational commitment given perceived violations of
psychological contracts by the organization.

It is fair to criticize the overall impact of I–O research on the selection and management of
workers. For example, organizations in the USA use unstructured interviews for selection, and
organizations in some European countries routinely use handwriting analysis, despite
considerable evidence by I–O researchers that neither method is reliable or valid. However, I–
O psychologists are continually seeking new ways to reach and educate organizations
regarding effective management practices. As we have seen in this article, as new methods are
found for bridging the gap between science and practice, I–O psychologists are prepared with
generalized principles of human performance, and ever-expanding research on the dynamics of
the attitudes, cognitions, and behaviors of individuals in organizations.

Relationship between Organizational Psychology and other Discipline

As an applied behavioral science, organizational psychology grew out of industrial psychology
but has been influence by other fields of psychology, as well as economics, political science
and physical science.
It relies on social psychology when the study concerns contrasts in the way people’s behavior
and beliefs are exchanged.
From Educational psychology, it draws on the principles that communicate learning materials
to new member of an organization.
 To Engineering psychology, it employs the formal techniques and concepts to define and solve
the problems of designing equipment.
Clinical psychology offers knowledge about how people adjust to challenge and react to
conflict in organizational settings.
Psychometrics describes individual differences between people in organizations and
techniques for measuring their attitudes, aptitudes, opinions and beliefs.
Other disciplines like Economic provide a body of knowledge about the making of decisions
and offer a systematic account of the problem of labor management relation.
From sociology come theories about human social organization and the study of bureaucracy.
Political science and Anthropology offer a philosophy about formal organization. Then social
philosophy stems the study of organizational goals and values.
ORGANIZATIONAL THEORIES

Over time, various kinds of organizational theories emerged that explained and predicted
processes and patterns in workplace environments. There were three major schools of thought,
namely:

1. Classical Organizational Theory

2. Neo-classical Organizational Theory
3. Modern Organizational Theory

Success depends on the way you lead your employees and improve management practices.
Let’s look at these different types of organizational theories in detail and see how they
contribute to effective management and business success:

1. Classical Organization Theory

Classical theorists viewed organizations as machines and humans as an extension of that

machine. They believe that overall efficiency can be increased by making individuals more
efficient. Therefore, it’s the organization’s responsibility to make changes for better
performance.

Some recurring characteristics of the classical theory include:

1. Organizations are integrated and centralized systems where authority lies with the
central figure
2. The focus is on outputs or results rather than inputs provided by employees
3. Labor is standardized and isn’t subject to change; labor doesn’t depend on the role

While the classical theory helped standardize the management process and increase efficiency,
it met several criticisms. The theory didn’t apply to complex organizational structures and
doesn’t factor in social and psychological aspects of employees.

2. Neoclassical Organization Theory

The neoclassical theorists viewed organizations as a social system where human actions and
interactions have a direct impact or effect on performance. Therefore, humans are at the center
of this theory and social relationships and interactions are instrumental to organizational
efficiency.

A few common characteristics of the neoclassical school include:

1. Focus is on human behavior and their relationships with one another

 2. Teamwork is essential for the smooth functioning of organizations and it’s only
possible through effective communication and feedback
3. Employees have different needs and expectations, there are diverse factors motivating
them to perform better

Although the Neoclassical Theory moves away from traditionalist views where humans are
treated like machines, it has some limitations. It ignores the environment in which an
organization operates.

3. Modern Organization Theory

Modern organizational theory has attempted to overcome the shortcomings of previous

theories and was developed in the early 1960s. It integrates the classical model with behavioral
science and even considers the environment it’s in. Some essentials of this theory are:

1. An organization is an open system that interacts with its environments (internal and
external) to develop and grow in the market
2. It encompasses multiple aspects and levels of organizational environments—micro-
and macro-environment
3. An organization is a dynamic system that responds and adjusts to the changing
environment

While the modern theory solved several persisting challenges of the past, it was criticized for
the absence of unified knowledge. Nevertheless, these organizational theories hold relevance
in modern workplaces and are instrumental for influencing change.

POWER AND AUTHORITY IN ORGANIZATION

Power and authority are often confused. Some sees them as one and use them interchangeably
while other believed they are different words with varying meanings. The two concepts are
extremely important in understanding behavior in organizations. They are important because
the display of power and the widespread ways manipulative strategies usually reflects either an
infliction organization design or the presence of latent conflict among the organizational
members. This can also make working life painful and lonely for many organizational
members.
Power
Power has been defined as the ability one has to influence another. It is the potential ability of
a person or group to exercise control over another person or group. The extent of power is
determined in large part by the person being controlled. The people who strong motivation to
influence or central the behavior of other people is acid to be power motivated. Power plays a
central role in shaping relationship within the organization. The ultimate source of power is
the group, and a group in turn, is made up of people with consciousness and will, with emotion
and irrationality, with intense personal interests and tenaciously held values. Power is won and
not given. We talk of “power plays”, power hungry people, power interest, and power tactics.
All of these have implications, as they stand in contrast to virtues like fair play and merit, the
techniques and skills of wining power are the same methods of employing it as a medium of
contract. The manner and method in which power is acquired and used in organization,
determines the nature of relationship among organization members and their work efficiency.

There are three possible outcomes when a manager tries to implement the power. These
outcomes depend on the leader’s base of power, how the base is operationalized &
subordinate’s individual characteristics.

1. Commitments will result from an attempt to exercise power if the subordinate accepts
and identifies with the leader. Such an employee will be motivated by the requests that
seem important to the leader.
 2. Compliance refers that subordinates will do given task accordingly. Subordinates will
do nothing extra or go beyond expectation of the job. Subordinates will not do any
overtime.
3. Resistance: this occurs when subordinates do not follow the orders or commands of
the leaders. Here, subordinate fights or rejects leader’s wishes.

Bases of Power

Power has been group based on their sources as follows:

1. Legitimate Power is the power that is granted by virtue of one’s position in the
organization. Managers have legitimate power over their subordinates. He has the authority to
give orders to his subordinates to accomplish the given task. Subordinates follows manager’s
orders and they must follow what’s told by him. Legitimate power can be enhanced by
ensuring that the business has a clearly defined chain of command and organizational
structure.
2. Reward Power is a kind of motivation towards subordinates which forces them to work
more effectively. If a subordinate does a given task accordingly, the manager may honor him
with reward promotion. Mostly given reward in organization is pay, promotions or new work
assignments with special responsibilities.
3. Coercive Power is a special type of power in workplace. Coercive power exists when a
person has the authority to threaten or punish subordinates if the given task is not
accomplished or not done accordingly. Usually coercive power is not practiced much in
today’s time but it may be practiced when the organization is on crisis or threaten. Coercive
power can also be used effectively when attempting to make cuts in personnel as a result of
management shifts and transitions.
4. Expert Power stems from the perceived and demonstrated competence of a leader to do,
analyze, evaluate or understand, and control the task that the group performs. Expert power
has been achieved through experiences and training that have marked his/her business career.
5. Referent Power is gained by being admired by subordinates in an organization. Persons or
leaders with referent power have gained it through entrusting their subordinates with increased
responsibilities and how to perform their jobs. Referent power is mostly used in those
organizations where employee turnover is low and in an environment where personal
relationships can be improved.
6. Informational power: Is where a person possesses need or wanted information. It comes
from across to a control over information. This is a shorter term power that doesn’t necessarily
influence or build credibility.
7. Connection power: is where a person attains influence by gaining favour or simply
acquaintance with a powerful person. This power is all about networking. If I have a
connection with someone that you want to get to, that is going to give me power. People
employing this power build important coalitions with others.
8. Political power: Is power that comes from the support of a group. It arises from a leader’s
ability to work with people and social systems to gain their allegiance and support. It develops
in all the state-owned organizations, especially when a certain political party holds power and
their supporters show power in many aspects in the organizations. By using political power,
leaders can influence others and get some
Authority, Responsibility and Accountability

Authority is a form of formal power that can be formally changed or delegated. It is the right
way of commanding subordinates, issuing orders and instructions, and exacting obedience
from the team. It is also the right of the manager to make decisions. Also, to act or not to act
depends on how he perceives the objectives of the organization. Authority is power that enters
the two party relationships through the organization. It is an institutions mechanism that aims
to define which two members of a relationship A or B, will be the superior. It is potential extra
power given by a third party (the organization) to some of its members in order to guarantee
an unequal distribution of power. It makes some people leaders and ethers followers. It is a
mechanism for coordination and control in organization. Most often, it is used to restrict and
limit individual behavior and thereby, it blocks or frustrates people. Authority gives some
members of the organization the right to carry out policy and make decision, which others
have to abide to. This makes the organization a place where people are required to submit to
restricted rules and standards. Authority is what gives the manger the power to order his
subordinates and get them to comply. When there is a chain of superior-subordinate relations
in an organization, it is the authority which binds and provides a basis for responsibility. In
every form of organization, this supreme coordinating authority must rest somewhere, else
there would be no directive for any truly coordinated effort. Without authority, there will be no
relations between subordinates and superiors and the organization will be in chaos. The
authority that a manager enjoys due to his position is the official authority or authority of
position. Apart from the official authority, a manager might influence the behavior of other
people in the organization. This is the personal authority of the manager. A manager with both
official and personal authority is very effective. Authority is not unlimited power and consists
of specific rights and permissions to act for the organization in specified areas.

Responsibility

Responsibility has different meanings in management. The most common description is the
obligation on the manager to perform the task himself. The essence of responsibility is
‘obligation’. Anyone who accepts a task must be held responsible for its performance too. In
the context of hierarchical relations in an organization, responsibility is the obligation of a
subordinate to perform the tasks assigned. Therefore, responsibility is relative to the person.
Also, it emanates from the subordinate-superior relations in an organization. Hence, the
manager can get the assigned duty done by his subordinate. He also needs to ensure a proper
discharge of the duty. Therefore, in an organization, authority and responsibility move as
follows – authority flows downwards, whereas responsibility is exacted upwards. Sometimes,
informal leadership emerges in an organization. This can create problems in the clear
definition of responsibilities of the subordinates. However, the responsibility towards the
seniors does not change.

Accountability

Every employee is answerable to his superior for the accomplishment of the task assigned to
him. This is accountability. When a manager delegates a task, he assigns duties and delegates
the required authority so that his subordinates can accomplish the task. However, the process
is not complete unless the subordinate is answerable to the superior for his functioning.
Therefore, authority goes downward and makes everyone accountable for the duties assigned.

Authority and Power

In order to explain the limits to formal authority, many experts make a distinction between
authority and power. According to some theories, authority is the right to command in the
official hierarchical sense.

On the other hand, power is the capacity to influence the behavior of others. However, in the
real world, many managers also have the power to exact obedience from their subordinates.

The proportion in which they are divided can vary according to the role of the manager. While
the head of a division in the Army will have a more complete combination of authority and
power, as assistant manager of a call center might not be able to use power to that extent.

In an ideal scenario, authority and responsibility along with power and accountability are equal
to each other in every position of the organization. If the balance between them gets disturbed,
problems arise.
For example, if an employee is given authority but does not have enough power, he can’t do
his job effectively. This is because lacking power, he is unable to use punishments and
rewards for enforcing authority.

Even if he has equal power and authority, it is important to equate them with responsibility
and accountability. Else, he will pass the responsibility to some other employee the moment
problems start surfacing.

GROUPS IN ORGANIZATION
The word group has many meanings. For psychologists, group is an organized system of two
or more individuals who are interrelated so that the system performs some functions, has a
standard set of the role relationship among its members and has a set of the norms that
regulates the functions of the group and each of its members. In this sense, the relations among
the members are independent, each members behavior influences the behavior of each of the
others. Secondly, the members share on ideology a set of beliefs, values and norms which
regulate their mutual conduct. From the perspective of an organizational psychologist, work
groups are composed of two or more individuals, who exist to perform organization E.g
relevant tasks, share common goals, interact socially, exhibit task independently, maintain and
manage boundaries and embedded in an organization context that sets boundaries, constrains
the group, and influence exchange with other unit in the broader entity. Organizations are
made up of group, units and department that work in relation with each other to achieve the
organizational goals. Within the groups, units and department individual also work in relation
with each other to contribute their effort as a group towards achieving the goals of the
organization. Organizational psychologists study group and explores the control of the
individuals within the group setting.
Types of group
There are two major types of groups found in organization.
1. Formal group: there are types of work group created by the organization and have
designated work assignment and rooted tasks. The behavior of such groups is directed
towards achieving organizational goals. Command group which is a group consisting
of individuals who report directly to the manager. Interest group which is a group
formed by individuals working together to achieve a specific objective.
2. Informal groups: these groups are formed with friendship and common interests. This
means that the groups are formed in order to meet the social needs of the members. It
has two sub-groups. Tasks group are those working together to finish a job or task.
Friendship group are those brought together because of their shared interests.
Reasons for joining group
The following points help us understand the need of joining by individuals.
1. Security: by joining group, individual reduce insecurity challenge as they feel storage
and less threatened as a group.
2. Self-esteem: an individual can increase his/her feeling of self-esteem by joining a
highly valued group.
3. Affiliation: work groups significantly contribute to meet the need for friendships and
social relations.
4. Power: informal group provide options for individuals to practice power. What mostly
cannot be achieved individually becomes possible with group effort.
5. Achievement: sometimes it takes more than one person to accomplish a particular
task. People join group to help them achieve what individuals effort will not allow
them to do.
Stages of group development:
There are five stages of group development;
1. Forming is an orientation period when members get to know one another and share
expectation about the group. Sometime it is characterized by confusion and uncertain
what the expectation of the group is.
2. Storming is the stage where one can see the highest level of disagreement and conflict.
Members mainly voice their concern, and criticism at stage. People air their views and
disagree with each other. Settling and dealing with the disagreement at the stage helps
the group to establish clear goals.
3. Norming is characterized by the recognition of individual differences and shared
expectations. Responsibilities are divided among members and the group decides how
it will evaluate the group goals. At this stage work patterns are established and
expectations of one another are clearly articulated and accepted by members of the
group.
4. Performing occurs when the group has matured and attains a feeling of cohesiveness.
In the stage, members of the group make decisions through a rational process that is
focused on relevant goals rather than emotional issues. The group is focused on its
tasks, working effectively to accomplish its goals.
5. Adjoining indicates that members of the group often experience feelings of closure
and sadness as they prepare to leave. It is the final stage when the group, after
achieving the objective for which it was created, starts to gradually dissolve itself.
Group structure
It refers it the pattern of interrelationship that exists among group members and makes the
group functioning orderly. The important aspects of group structure are;
1. Role is the part played by an individual group member in accordance with the
expectations of other members from him/her.
2. Norms are the rules and mutual expectation that develop within the group. They have
profound effect on members behaviors it ensures conformity.
3. Status is the relative prestige or social position given to group or individuals by others.
4. Group cohesiveness refers to the degree of attraction to the group members for each
other and their feeling among the members. Without proper group structure, group
cannot function properly in any situation.
Group dynamics
It is how a group should be organized and conduct. That is how they form, their structure and
process and how they function and affect individual members, other group and the
organization as a whole. It is this relationship that interaction that a group has, determines
group is the effectiveness. An effectiveness work group is the one whose members function as
a team and participate fully in group discussion, whose goals are clearly developed, and whose
resources are adequately to accomplish its goals.
ORGANIZATIONAL CONFLICT AND MANAGEMENT
It is a state of discord caused by actual or perceived opposition of needs, values and interest
between people working together. Conflict is inevitable in organization because individuals
and groups due misunderstand each other as a result differing emotions and interest in the
cause as performing their formed and informed duties. There are disputes over how revenues
should be divided, how work should be done, and how long and hard people should work.
There are jurisdictional disagreement among individuals, groups, and between unions and
management. Where are subtitle forms of personality clashes, role definitions, and struggles
for power and favor. There is also conflict within individuals due to competing needs and
demands.
Types of conflict
1. Intra-personal conflict: this type occurs within an individual as a result of competing
needs and demands. It is psychologically and involves individuals thought
2. Inter-personal conflict: this type is between two individuals of the organization. It occurs
because of some differences in people. We have varied personalities which usually lead to
incompatible choice and opinion. This may involve conflict between two managers who are
competing for limited capital and manpower resources.
3. Intra-group conflict: this occurs among individuals within a team. These are conflicts that
typically involve more than one person with a group. It starts from interpersonal
disagreements which may lead to tension or differences in view and ideas.
4. Inter- group conflict: it occurs when a misunderstanding arises among different teams
within an organization. This is due to varied sets of goals and interest of these different
groups.
5. Inter- organizational conflict: this is the type of conflict that arises across different
organizations. It can occur among competing organization or organizations depending on
each other to achieve one goal or the other.
Causes of organizational conflict
1. Managerial expectations: this is when an employee or group misunderstands or fails to
meet targets given to him/her by his/her superior.
2. Communication disruption: this is when an employees or group fails to give proper and
clear information from the other.
3. Misunderstanding of information: this is when a employee or group misunderstands
information.
4. Lack of accountability: this is when an employee or group fail to account or take
responsibility of task given to them.
Consequences of conflict
Conflict can have negative or positive consequences. This is why we said that conflict in
organization is not totally a bad omen.
1. Negative or destructive consequences of conflict occur when the organization allows
conflicts to disrupt the goals and objective or even lead disintegration of the
organization. This mostly occurs when conflicts are poorly managed by the managers.
2. Positive or constructive consequences: good managers learn from conflicts and build
upon it. When conflict is well managed, it help the organization to consolidate on their
goals through better understanding. In this case, conflict helps the organization to learn
a better way to organize work.
Stages of conflicts
1. Latent stage: at this stage, people may be in conflict without being aware that they are in
conflict. This is because the conflict situation is still building up.
2. Preserved stage: this is when people become fully aware that they are in conflict.
3. Felt stage: this is when stress and anxiety are felt by one or more participants due to the
conflicts.
4. Manifest stage: this is when the conflict can be observed. At this stage it drains the energy
of the conflicting parties.
5. Aftermath: this is when there is some outcomes of the conflicts such as resolution to, or
dissolution of the problem.
Management of organizational conflict
Conflict management involves planning effective strategies to decrease the functions of
conflict and develop the constructive functions in order to enhance learning and effectiveness
of an organization.
Major approach to conflict management
1. Integrative approach: this is often employed to inspire management to fulfill the needs of
stakeholders in resolving conflict. It involves assessment and inquiry, design,
implementation and evaluation aimed at attaining valuable and objective conflict decision
in the workplace.
2. Collective bargaining: this strategy has been advocated as the approach for organizing
union management conflict. It involves a round table meeting between the conflict party to
negotiate way to resolve the issues that brought the conflict
3. Accommodation approach: this approach is the view that no amount of specific is too
much to allow peace to rain. It is a palliation approach which includes conciliation and
submission.
Steps in managing conflict
1. Identify the source of conflict
2. Look beyond the incident (finding the remote cause).
3. Request solution.
4. Identify solution both parties can support.
5. Reach agreement.
Leadership in Organization
Leadership is the ability to guide a group toward the achievement of goals. Leaders can be
formally recognized by the organization, or individuals can emerge as informal leaders within
work groups because they have some characteristic that the group members value. Although as
old as humans started living together, it is difficult to agree on a universally accepted
definition of leadership because each culture and age has several flawed assumptions about
leadership, reflecting the ethos of the time and place. I will define leadership as "the capability
to motivate ones' followers (or subordinates) to put in their best efforts for the achievement of
national (or corporate goals) by giving them a vision to look up to, a road map to follow and
serving as a role model.
Leadership is a process of influencing people to achieve a common goal. It is the ability to
motivate and inspire others to work towards a shared vision. Leadership involves setting
direction, creating an environment where people can work together effectively, and providing
the necessary resources and support for them to do so. Leadership is about taking
responsibility for the success or failure of an organization or team. Leadership functions are
the activities that leaders undertake in order to lead their teams and organizations. These
functions include setting direction, motivating and inspiring others, developing strategies,
managing resources, delegating tasks, monitoring progress, and evaluating performance.
Leaders must also be able to communicate effectively with their teams in order to ensure that
everyone is on the same cage and working towards the same goals.

The Benefits of Effective Leadership

1. Good leaders create an environment where employees feel valued and respected.
2. They foster collaboration among team members by encouraging open
communication and providing clear direction on tasks and goals.
3. Good leaders also help employees develop their skills by providing feedback on
their performance and offering guidance when needed.
4. Good leaders create an atmosphere of trust within their teams which leads to higher
levels of engagement and productivity.

Theories of Leadership

Early leadership theories focused on what qualities distinguished between leaders and
followers, while subsequent theories looked at other variables such as situational factors and
skill levels. While many different leadership theories have emerged, most can be classified as
one of eight major types.
1. Great Man Theories: Have you ever heard someone described as "born to lead?"
According to this point of view, great leaders are simply born with the necessary
internal characteristics such as charisma, confidence, intelligence, and social skills
that make them natural-born leaders. Great man theories assume that the capacity
for leadership is inherent—that great leaders are born not made. These theories
often portray great leaders as heroic, mythic, and destined to rise to leadership when
needed. The term "Great Man" was used because, at the time, leadership was
thought of primarily as a male quality, especially in terms of military leadership.
Such theories suggest that people cannot really learn how to become strong leaders.
It's either something you are born with or born without. It is very much a nature (as
opposed to nurture) approach to explaining leadership.

2. Trait Theories: Similar in some ways to Great Man theories, trait theories assume
that people inherit certain qualities and traits that make them better suited to
leadership. Trait theories often identify a particular personality or behavioral
characteristics shared by leaders. For example, traits like extroversion, self-
confidence, and courage are all traits that could potentially be linked to great
leaders. If particular traits are key features of leadership, then how do we explain
people who possess those qualities but are not leaders? This question is one of the
difficulties in using trait theories to explain leadership. There are plenty of people
who possess the personality traits associated with leadership, yet many of these
people never seek out positions of leadership. There are also people who lack some
of the key traits often associated with effective leadership yet still excels at leading
groups.

3. Contingency: Contingency theories of leadership focus on particular variables

related to the environment that might determine which particular style of leadership
is best suited for the situation. According to this theory, no leadership style is best in
all situations. Leadership researchers White and Hodgson suggest that truly
effective leadership is not just about the qualities of the leader, it is about striking
the right balance between behaviors, needs, and context. Good leaders are able to
assess the needs of their followers, take stock of the situation, and then adjust their
behaviors accordingly. Success depends on a number of variables including the
leadership style, qualities of the followers, and aspects of the situation.

4. Situational Theories: Situational theories propose that leaders choose the best
course of action based upon situational variables. Different styles of leadership may
be more appropriate for certain types of decision-making. For example, in a
situation where the leader is the most knowledgeable and experienced member of a
group an authoritarian style might be most appropriate. In other instances where
group members are skilled experts, a democratic style would be more effective.

5. Behavioral Theories: Behavioral theories of leadership are based upon the belief
that great leaders are made, not born. Consider it the flip-side of the Great Man
theories. Rooted in behaviorism, this leadership theory focuses on the actions of
leaders, not on mental qualities or internal states. According to this theory, people
can learn to become leaders through teaching and observation.
 6. Participative Theories: Participative leadership theories suggest that the ideal
leadership style is one that takes the input of others into account. These leaders
encourage participation and contributions from group members and help group
members feel more relevant and committed to the decision-making process. In
participative theories, however, the leader retains the right to allow the input of
others.

7. Management Theories: Management theories, also known as transactional

theories, focus on the role of supervision, organization, and group performance.
These theories base leadership on a system of rewards and punishments. Managerial
theories are often used in business; when employees are successful, they are
rewarded and when they fail, they are reprimanded or punished.

8. Relationship Theories: Relationship theories, also known as transformational

theories, focus upon the connections formed between leaders and followers.
Transformational leaders motivate and inspire people by helping group members
see the importance and higher good of the task. These leaders are focused on the
performance of group members, but also want every person to fulfill their potential.
Leaders with this style often have high ethical and moral standards

Importance of Leadership

Leadership is an essential aspect of any organization, and its importance cannot be overstated.
Here are some benefits and reasons why effective leadership is crucial:

1. Creates a Vision: Leaders paint a picture of a better future and inspire their team to
achieve it. They provide direction and set goals for their team while ensuring that
everyone is aligned with the organization’s strategic objectives.
2. Inspires and Motivates: Good leaders inspire, motivate, and empower their team
members to do their best work. They create a positive work environment, provide
support and recognition, and encourage innovation and creativity.
3. Builds Trust: Leaders who are transparent and consistent in their actions foster
trust and respect among their team members. Trust is a critical element of successful
teamwork, and it’s essential that leaders lead with integrity.
4. Encourages Accountability: Leaders set the tone for accountability by holding
themselves and their team members responsible for their actions. By holding people
accountable, leaders drive productivity and ensure that everyone is working towards
the same goals.
5. Develops Future Leaders: Good leaders nurture and develop their team members,
helping them grow in their careers and prepare for future leadership roles. They
provide opportunities for professional development and mentorship, creating a
pipeline of future leaders within the organization.
In conclusion, leadership is crucial for any organization to thrive, and effective leadership can
lead to higher productivity, employee satisfaction, and ultimately, increased profitability.

Qualities of Good Leadership

There are many qualities that define good leadership. Here are some of the most important
characteristics of effective leaders:

1. Visionary: Good leaders have a clear and compelling vision that inspires,
motivates, and guides their team towards success.
2. Integrity: Leaders with integrity have strong moral principles and are honest,
transparent, and ethical in their actions.
3. Communication: Leaders who communicate well clearly convey their message,
actively listen to their team, and provide feedback to ensure everyone is on the same
page.
 4. Empathy: Good leaders are empathetic towards their team members, understanding
their needs, concerns, and motivations and working towards finding solutions that
benefit everyone.
5. Delegation: Leaders who effectively delegate tasks can focus on strategic priorities,
empower their team, and increase productivity.
6. Adaptability: Leaders who are adaptable can quickly pivot their strategies in
response to changing circumstances or new information.
7. Coaching: Good leaders coach and mentor their team members, providing guidance
and support to help them develop professionally.
8. Humility: Leaders who are humble acknowledge their mistakes and take
responsibility for their actions.

Leadership Style
A leadership style is a leader’s characteristic behaviors when directing or managing groups of
people. A person’s default leadership style is the way they feel most comfortable leading
others to achieve their vision. Barchiesi and colleagues measured the effect that leadership
effectiveness had on the performance and attitudes of teams. The researchers found that, while
high leadership score indexes are not related to the past performance of a team, they are
associated both to a higher probability that the team’s performance will increase in the future
and a higher reputability of the organizations that these teams belong to.

1. Autocratic Leadership: This type of leadership involves making decision without

input from others. The leader has complete control over the team and makes all the
decision, which can be good in certain situations where quick and decisive action is
needed.
2. Democratic Leadership: This type of leadership involves involving team members
in the decision-making process. The leader encourages participation and seeks
opinions and feedback from the entire team before making a decision.
3. Laissez-Faire Leadership: This type of leadership involves giving the team
complete freedom to make decisions and complete projects on their own. The leader
provides guidance and resources but does not interfere with the team’s work.
4. Transformational Leadership: This type of leadership involves inspiring and
motivating the team to achieve a common goal. The leader leads by example and
encourages team members to be their best selves.
5. Servant Leadership: This type of leadership involves putting the needs of the team
members first. The leader focuses on developing and supporting the team, which in
turn leads to a more productive and successful organization.
6. Transactional Leadership: This type of leadership involves setting clear
expectations and offering rewards or punishments based on performance. This type
of leadership can be effective in certain situations but can also lead to a lack of
creativity and innovation.
These are just a few examples of different types of leadership styles. Effective leadership
depends on the situation and the needs of the team, so leaders may need to adapt their style to
meet the specific challenges they face.
ORGANIZATIONAL COMMUNICATION

Organizational communication can be defined as a method of conveying and sharing

information such as organizational goals, plans used to achieve those goals, policies,
rules & regulations, and other trivial details. Informally, communication in an
organization might take place in different ways, but, formally, each organization
follows a particular communication method to convey information. Organizational
communication is an integral part of every organization, and it plays an essential role in
building a successful business. Communication in an organization affects the way
people behave in the organization. Communication in an organization is a vital
managerial component because the role of management is to make plans and give
directions. Both managers and employees, who work at the front line, must be aware of
how to behave to create the best working environment in the organization.

Communication in an organization also shapes the way people behave in the

organization. The behavior of people in the organization affects the way people
motivates each other to achieve organizational goals. Organizational communication
plays an essential role in the way people interact with one another in meetings. On the
other hand, ineffective organizational communication results in misunderstanding, lack
of coordination, and incompetence in the organization. Therefore, it is essential to have
effective communication in the organization to execute plans effectively and contribute
to the organization’s success. Effective communication in an organization is so vital
that nowadays, even recruiters look for communication skills as one of the primary
skills in the people they want to hire. You will commonly find phrases such as business
communication, corporate communication, or organizational communication skills in
job advertisements.

The importance of communication in an organization

Communication promotes motivation by informing and clarifying the employees about
the task to be done, the manner they are performing the task, and how to improve their
performance if it is not up to the mark.
Communication is a source of information to the organizational members for decision-
making process as it helps identifying and assessing alternative course of actions.
Communication also plays a crucial role in altering individual’s attitudes, i.e., a well
informed individual will have better attitude than a less-informed individual.
Organizational magazines, journals, meetings and various other forms of oral and
written communication help in moulding employee’s attitudes.
Communication also helps in socializing. In today’s life the only presence of another
individual fosters communication. It is also said that one cannot survive without
communication.
As discussed earlier, communication also assists in controlling process. It helps
controlling organizational member’s behaviour in various ways. There are various
levels of hierarchy and certain principles and guidelines that employees must follow in
an organization. They must comply with organizational policies, perform their job role
efficiently and communicate any work problem and grievance to their superiors. Thus,
communication helps in controlling function of management.
An effective and efficient communication system requires managerial proficiency in
delivering and receiving messages. A manager must discover various barriers to
communication, analyze the reasons for their occurrence and take preventive steps to
avoid those barriers. Thus, the primary responsibility of a manager is to develop and
maintain an effective communication system in the organization.
Communication Flows in an Organization
In an organization, communication flows in 5 main directions-
Downward Flow of Communication: Communication that flows from a higher level
in an organization to a lower level is a downward communication. In other words,
communication from superiors to subordinates in a chain of command is a downward
communication. This communication flow is used by the managers to transmit work-
related information to the employees at lower levels. Employees require this
information for performing their jobs and for meeting the expectations of their
managers. Downward communication is used by the managers for the following
purposes -

Providing feedback on
employees performance

Giving job instructions

Providing a complete
understanding of the
employees’ job as well as
to communicate them how
their job is related to other
jobs in the organization.

Communicating the
organization’s mission
and vision to the
employees.

Highlighting the areas of

attention.
Upward Flow of Communication: Communication that flows to a higher level in an
organization is called upward communication. It provides feedback on how well the
organization is functioning. The subordinates use upward communication to convey
their problems and performances to their superiors.
The subordinates also use upward communication to tell how well they have understood
the downward communication. It can also be used by the employees to share their views
and ideas and to participate in the decision-making process.
Upward communication leads to a more committed and loyal workforce in an
organization because the employees are given a chance to raise and speak
dissatisfaction issues to the higher levels. The managers get to know about the
employees feelings towards their jobs, peers, supervisor and organization in general.
Managers can thus accordingly take actions for improving things.
Grievance Redressal System, Complaint and Suggestion Box, Job Satisfaction surveys
etc all help in improving upward communication. Other examples of Upward
Communication are -performance reports made by low level management for reviewing
by higher level management, employee attitude surveys, letters from employees,
employee-manager discussions etc.
Lateral / Horizontal Communication: Communication that takes place at same levels
of hierarchy in an organization is called lateral communication, i.e., communication
between peers, between managers at same levels or between any horizontally equivalent
organizational member. The advantages of horizontal communication are as follows:

It is time saving.

It facilitates co-
ordination of the task.

It facilitates co-
operation among team
members.

It provides emotional
and social assistance to
the organizational
members.

It helps in solving
various organizational
problems.

It is a means of
information sharing

It can also be used for

resolving conflicts of a
 department with other
department or conflicts
within a department.

Diagonal Communication: Communication that takes place between a manager and

employees of other workgroups is called diagonal communication. It generally does not
appear on organizational chart. For instance - To design a training module a training
manager interacts with Operations personnel to enquire about the way they perform
their task.
External Communication: Communication that takes place between a manager and
external groups such as - suppliers, vendors, banks, financial institutes etc. For instance
- To raise capital the Managing director would interact with the Bank Manager.