OB Full NOTES

ST.
MARTIN'S ENGINEERING COLLEGE

An Autonomous Institute
Dhulapally, Secunderabad-500 100
NBA & NAAC A+ Accredited
www.smec.ac.in
Unit-I
Introduction to OB
The study of Organizational Behavior (OB) is very interesting and challenging too. It is related
to individuals, group of people working together in teams. The study becomes more
challenging when situational factors interact. The study of organizational behavior relates to
the expected behavior of an individual in the organization.
No two individuals are likely to behave in the same manner in a particular work situation. It is
the predictability of a manager about the expected behavior of an individual. There are no
absolutes in human behavior. It is the human factor that is contributory to the productivity
hence the study of human behavior is important. Great importance therefore must be attached
to the study.
Researchers, management practitioners, psychologists, and social scientists must understand

the very credentials of an individual, his background, social framework, educational update,
impact of social groups and other situational factors on behavior.
Managers under whom an individual is working should be able to explain, predict, evaluate
and modify human behavior that will largely depend upon knowledge, skill and experience of
the manager in handling large group of people in diverse situations. Preemptive actions need to
be taken for human behavior forecasting.
The value system, emotional intelligence, organizational culture, job design and the work
environment are important causal agents in determining human behavior. Cause and effect
relationship plays an important role in how an individual is likely to behave in a particular
situation and its impact on productivity.
An appropriate organizational culture can modify individual behavior. Recent trends exist in
laying greater stress on organizational development and imbibing a favorable organizational
culture in each individual. It also involves fostering a team spirit and motivation so that the
organizational objectives are achieved.
There is a need for commitment on the part of the management that should be continuous and
incremental in nature.
Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

Organisational Behaviour – Meaning and Definitions: According to K Aswathappa,
Stephen P. Robbins, L. M. Prasad, Newstram and a Few Others
In words of K Aswathappa, “OB is the study of human behaviour in organisational setting, of

the interface between human behaviour and organisation and of the organisation itself.”
In words of Stephen P. Robbins, “OB is a field of study that investigates the impact that
individuals, groups and structures have on behaviour within organisations for the purpose of
applying such knowledge towards improving an organisation’s effectiveness.”
According to L. M. Prasad, “Organisational behaviour can be defined as the study and

application of knowledge about human behaviour related to other elements of an organisation
such as structure, technology and social systems.”
According to Davis and Newstram, “Organisational behaviour is the study and application of
knowledge about how people act within organisations.”
According to Fred Luthans, “Behaviour is directly concerned with the understanding,

prediction and control of human behaviour in organisations.”
In words of John Newstram and Keith Devis, “Organisational behaviour is the study and
application of knowledge about how people as individuals and as groups act within
organisations. It strives to identify ways in which people can act more effectively.”
OB is the study of individual behaviour in isolation, when in group and as a part of an

organisation. The study of individual behaviour only, would be incomplete because behaviour
is affected by the people surrounding us as well as by the organisation, in which we work.
Studying only individuals or only organisations would be of no use. It is essential to study both
simultaneously.
Personality, perception, learning, attitude, family background, training, motivation, job

satisfaction, performance appraisal, leadership effectiveness, norms, values and ethics are the
factors which affect the individual behaviour. Group dynamics, communication, organisational
environment, individual and organisational culture affect group behaviour. Organisational
structure, power & politics, status, relation with juniors & seniors, conflicts and culture affect
the individual behaviour in the organisation.
These various factors relate to different disciplines including psychology, sociology, social
psychology, political science, anthropology, etc.
Study about individual behaviour, group behaviour and organisations give the inferences about
how different people react to different situations. It guides regarding the motivation styles and
the leadership styles to be adopted for different persons. Due to the individual differences,
diverse leadership styles, incentive schemes, motivators, communication styles should be
applied.

Study of organisational behaviour helps in studying:
i. Why people behave in a particular way?
ii. Why one person is more effective than the other?
iii. Why one group is more effective than the other?
iv. Why one person is more effective in one organisation as compared to the other
organisations?
The study of above things gives sound knowledge about human behaviour and this knowledge
can be applied in shaping the behaviour and taking various decisions related to policy making
in human resource management.
Organisational Behaviour – Scope
The scope of the organizational behavior is as under:
Impact of personality on performance
Employee motivation
Leadership
How to create effective teams and groups
Study of different organizational structures
Individual behavior, attitude and learning
Perception
Design and development of effective organization
Job design
Impact of culture on organizational behavior
Management of change
Management of conflict and stress
Organizational development
Organizational culture
Transactional analysis
Group behavior, power and politics

Job design
Study of emotions
The field of the organizational behavior does not depend upon deductions based on gut feelings
but attempts to gather information regarding an issue in a scientific manner under controlled
conditions. It uses information and interprets the findings so that the behavior of an individual
and group can be canalized as desired.
Large number of psychologists, social scientists and academicians has carried out research on
various issues related to organization behavior. Employee performance and job satisfaction are
determinants of accomplishment of individual and organizational goals.
Organizations have been set up to fulfill needs of the people. In today’s competitive world, the
organizations have to be growth-oriented. This is possible when productivity is ensured with
respect to quantity of product to be produced with zero error quality. Employee absenteeism
and turnover has a negative impact on productivity.
Employee who absents frequently cannot contribute towards productivity and growth of the
organization. In the same manner, employee turnover causes increased cost of production. Job
satisfaction is a major factor to analyze performance of an individual towards his work.
Satisfied workers are productive workers who contribute towards building an appropriate work
culture in an organization.
Organizations are composed of number of individuals working independently or collectively in

teams, and number of such teams makes a department and number of such departments makes
an organization. It is a formal structure and all departments have to function in a coordinated
manner to achieve the organizational objective.
It is therefore important for all employees to possess a positive attitude towards work. They
need to function in congenial atmosphere and accomplish assigned goals. It is also important
for managers to develop an appropriate work culture. Use of authority, delegation of certain
powers to subordinates, division of labor, efficient communication.
Benchmarking, re-engineering, job re-design and empowerment are some of the important
factors so that an organization can function as well-oiled machine. This is not only applicable
to manufacturing organizations but also to service and social organizations.
Organisational Behaviour – Nature: A Separate Field of Study and Not a Discipline Only,
An Interdisciplinary Approach, An Applied Science and a Few Others
Organizational behaviour has emerged as a separate field of study.
The nature it has acquired is identified as follows:

1. A Separate Field of Study and Not a Discipline Only: By definition, a discipline is an
accepted science that is based on a theoretical foundation. But, O.B. has a multi-
interdisciplinary orientation and is, thus, not based on a specific theoretical background.
Therefore, it is better reasonable to call O.B. a separate field of study rather than a discipline
only.
2. An Interdisciplinary Approach: Organizational behaviour is essentially an interdisciplinary

approach to study human behaviour at work. It tries to integrate the relevant knowledge drawn
from related disciplines like psychology, sociology and anthropology to make them applicable
for studying and analysing organizational behaviour.
3. An Applied Science: The very nature of O.B. is applied. What O.B. basically does is the
application of various researches to solve the organizational problems related to human
behaviour. The basic line of difference between pure science and O.B. is that while the former
concentrates of fundamental researches, the latter concentrates on applied researches. O.B.
involves both applied research and its application in organizational analysis. Hence, O.B. can
be called both science as well as art.
4. A Normative Science: Organizational Behaviour is a normative science also. While the

positive science discusses only cause effect relationship, O.B. prescribes how the findings of
applied researches can be applied to socially accepted organizational goals. Thus, O.B. deals
with what is accepted by individuals and society engaged in an organization. Yes, it is not that
O.B. is not normative at all. In fact, O.B. is normative as well that is well underscored by the
proliferation of management theories.
5. A Humanistic and Optimistic Approach: Organizational Behaviour applies humanistic

approach towards people working in the organization. It, deals with the thinking and feeling of
human beings. O.B. is based on the belief that people have an innate desire to be independent,
creative and productive. It also realizes that people working in the organization can and will
actualise these potentials if they are given proper conditions and environment. Environment
affects performance or workers working in an organization.
6 A Total System Approach: The system approach is one that integrates all the variables,
affecting organizational functioning. The systems approach has been developed by the
behavioural scientists to analyse human behaviour in view of his/her socio-psychological
framework. Man’s socio- psychological framework makes man a complex one and the systems
approach tries to study his/her complexity and find solution to it.
Organisational Behaviour – Important Characteristics
According the Keith Davis, ‘Organisational behaviour is an academic discipline concerned

with understanding and describing human behaviour in an organisational environment’. It
seeks to shed light on the whole complex human factor in organisations by identifying causes
and effects of that behaviour.

Another definition provided by Joe Kelly states, ‘Organisational behaviour is the systematic
study of the nature of organisations, how they begin, grow, develop, and their effect on
individual members, constituent groups, other organisations and larger institutions’.
Modern organisational behaviour is characterised by the acceptance of a human resource

model. It takes a more positive view of human beings. People are accepted as they are and not
prejudged using stereotypes.
Some of the important characteristics of organisational behaviour are discussed as follows:
1. Organisational behaviour is a rational thinking, not an emotional feeling about people. The
major goals of organisational behaviour are to explain and predict human behavioural in
organisations. It is action-oriented and goal-directed.
2. Organisational behavioural seeks to balanced human and technical values at work. It seeks
to achieve productivity by building and maintaining employee’s dignity, growth and
satisfaction, rather than at the expense of these values.
3. Organisational behaviour integrates behavioural sciences. Many of its core concepts are
borrowed from others fields and discipline like social psychology, sociology, and
anthropology, etc.
4. Organisational behaviour is both a science and an art, the knowledge about human behaviour
in organisations leans towards being science. Modern organisational behaviour is, at once,
empirical, interpretative, and critical. It is an interpretative science in the pursuit of knowledge
and meaning.
The basic purpose is to make meaningful the facts of organisational life. Modern OB is an
optic perspective; a process for looking at events, a way of life. It has empirical facts, and
interesting interpretations and powerful paradigms.
However it is an inaccurate science to provide specific answers to specific organisational

problems. As such very little can be prescribed to consistently predict relationships between a
variable on broad scale. The skills in applying the knowledge clearly lean towards being art.
5. Organisational behaviour exists at multiple like levels. Behaviour occurs at the individual,
the group, and the organisational systems levels. Behaviour that is attributable to each of these
levels can be both identified and isolated but at the same time these three levels interact with
each other and OB-being affected by the behaviour of individuals, group level behaviour is
affected by the organisational level phenomena and so on.
6. Organisational behaviour does not exist in vacuum. Organisations are made up of both social
and technical components and therefore characterized as social-technical systems. The
operational implication of this is that any approach of looking at behaviour must also take into
account the technical component of organisation especially such issues as the nature of work
and the technology. Organisations at the same time, must take into account the constructs of
the working environment, for example, the extent to which the market and the product is
changing.
Organisational Behaviour – 3 Levels: Individual, Group and Organisational Level
OB can be defined as actions and behaviors of individuals and groups towards and their impact
on the organization’s overall functioning and performance. OB can be studied at various levels
within an organization, and each level has a unique set of roles, responsibilities, and goals.
Following points discuss the three levels briefly:
1. Individual Level – Deals with the concepts at the individual level. Examples of individual-
level concepts are perception, personality, learning, motivation, and attitude.
2. Group Level – Deals with the concepts at the group level. Examples of group-level concepts
are team, conflict, leadership, power, and politics. Group-level concepts may include how
groups are formed, how to make effective teams, how individually and collectively the group
activities can be improved, how to motivate employees, and which type of group would be
suitable for a particular assignment.
3. Organizational Level – Deals with the concepts at the organizational level. Examples of
organizational-level concepts are change management and organizational culture. Other topics
discussed at organizational level include the concept of organization, different organizational
models, and organizational change along with its impact and implementation. The working
conditions and stress management are also discussed at the organizational level.
Organisational Behaviour – Four Major Models: Autocratic, Custodial, Supportive and

Collegial
There are four major models or frameworks that organizations operate out of-
1. Autocratic,
2. Custodial,
3. Supportive, and
4. Collegial.
1. Autocratic: The basis of this model is power with a managerial orientation of authority. The
employees in turn are oriented towards obedience and dependence on the boss. The employee
need that is met is subsistence. The performance result is minimal.
2. Custodial: The basis of this model is economic resources with a managerial orientation of
money. The employees in turn are oriented towards security and benefits and dependence on
the organization. The employee need that is met is security. The performance result is passive
cooperation.
3. Supportive: The basis of this model is leadership with a managerial orientation of support.
The employees in turn are oriented towards job performance and participation. The employee
need that is met is status and recognition. The performance result is awakened drives.
4. Collegial: The basis of this model is partnership with a managerial orientation of teamwork.
The employees in turn are oriented towards responsible behavior and self-discipline. The
employee need that is met is self-actualization. The performance result is moderate enthusiasm.
Although there are four separate models, almost no organization operates exclusively in one.
There will usually be a predominate one, with one or more areas over-lapping in the other
models.
The first model, autocratic, has its roots in the industrial revolution. The managers of this type
of organization operate mostly out of McGregor’s Theory X. The next three models begin to
build on McGregor’s Theory Y. They have each evolved over a period of time and there is no
one best model. In addition, the collegial model should not be thought as the last or best model,
but the beginning of a new model or paradigm.
Organizational Environment
Organizational environment denotes internal and external environmental factors influencing

organizational activates and decision making.
Every organization, whether business or non-business, has its environment. The organizational
environment is always dynamic and ever-changing.
Changes today are so frequent and every change brings so many challenges that managers and
leaders of the organization need to be vigilant about the environmental changes. The
environment of an organization consists of its surroundings – anything that affects its
operations, favorably or unfavorably.
Environment embraces such abstract things as an organization’s image and such remote visible
issues as economic conditions of the country and political situations.
The environmental forces abstracts and visible need careful analysis. The systematic and
adequate analysis produces the information necessary for making judgments about what
strategy to pursue.
Managers cannot make appropriate and sound strategy simply based on their guesses and
instincts. They must use relevant information that directly flows from the analysis of their
organization’s environment.
Types of Organizational Environment
By the word “environment” we understand the surroundings or conditions in which a particular

activity is carried on.

And we know that organization is a social entity that has a hierarchical structure where all
necessary items are put together and they act within it to reach the collective goal.
Organizations or more specific business organizations, and their activates are always being
affected by the environment. In an organization, every action of the management body is
influenced by the environment.
Organizations have an external and internal environment;
Internal environment / Micro environment.
External environment / Macro Environment.
General environment.
Industry environment.
An organization’s operations are affected by both types of environments.

Therefore, the managers need to make an in-depth analysis of the elements of the environments
so that they can develop in themselves an understanding of the internal and external situations
of the organization.
Based on their understanding, they will be better able to establish the required objectives for
their organization and formulate appropriate strategies to achieve those objectives.
In this post, we will look at the elements of the organizations’ environment.
Internal Environment of Organization
Forces or conditions or surroundings within the boundary of the organization are the elements
of the internal environment of the organization.
The internal environment generally consists of those elements that exist within or inside the
organization such as physical resources, financial resources, human resources, information
resources, technological resources, organization’s goodwill, corporate culture and the like.
The internal environment includes everything within the boundaries of the organization.
Some of these are tangible, such as the physical facilities, the plant capacity technology,
proprietary technology or know-how; some are intangible, such as information processing and
communication capabilities, reward and task structure, performance expectations, power
structure management capability and dynamics of the organization’s culture.
Based on those resources, the organization can create and deliver value to the customer. This
value is fundamental to defining the organization’s purpose, and the premise on which it seeks
to be profitable.
Are we adding value by research and development or by customer service, or by prompt

delivery or by cutting any intermediary which reduces the customers’ costs?
Organizations build capabilities over a long time. They consistently invest in some areas so
that they can build strong competitive businesses based on the uniqueness they have created.
The manager’s response to the external environment would depend upon the availability and
the configuration of resource deployment within the organization.
The deployment of resources is a key managerial responsibility.
Top management is vested with the responsibility of allocating resources between the ongoing
operations/activities and also with future operations which are of strategic nature, that is they
might yield returns in some future time which require resources now to be nurtured and have
some associated risks. The top management has to balance the conflicting demands of both as
resources are always finite.

For example, General Electric is an aggressive innovator and marketer who has been ruthless
in its approach to changing proactively as well as reactively to sustain its competitive positions
in the respective industries. This implies that over the years General Electric has invested in
developing those capabilities, systems, and processes that enable it to respond.
Elements of internal environment are;
Owners and Shareholders.
Board of Directors.
Employees.
Organizational Culture.
Resources of the Organization.
Organization’s image/goodwill.
The internal environment consists mainly of the organization’s owners, the board of directors,
employees and culture.
Owners and Shareholders
Owners are people who invested in the company and have property rights and claims on the
organization. Owners can be an individual or group of persons who started the company; or
who bought a share of the company in the share market.
They have the right to change the company’s policy at any time.
Owners of an organization may be an individual in the case of sole proprietorship business,

partners in a partnership firm, shareholders or stockholders in a limited company or members
in a cooperative society. In public enterprises, the government of the country is the owner.
Whoever the owners, they are an integral part of the organization’s internal environment.
Owners play an important role in influencing the affairs of the business. Board of Directors
The board of directors is the governing body of the company who is elected by stockholders,
and they are given the responsibility for overseeing a firm’s top managers such as the general
manager.
Employees
Employees or the workforce, the most important element of an organization’s internal

environment, which performs the tasks of the administration. Individual employees and also
the labor unions they join are important parts of the internal environment.

If managed properly they can positively change the organization’s policy. But ill-management
of the workforce could lead to a catastrophic situation for the company.
Organizational Culture
Organizational culture is the collective behavior of members of an organization and the values,
visions, beliefs, habits that they attach to their actions.
An organization’s culture plays a major role in shaping its success because the culture is an
important determinant of how well their organization will perform.
As the foundation of the organization’s internal environment, it plays a major role in shaping
managerial behavior.
An organization’s culture is viewed as the foundation of its internal environment.

Organizational culture (or corporate culture) significantly influences employee behavior.
Culture is important to every employee including managers who work in the organization.
A strong culture helps a firm achieve its goals better than a firm having a weak culture. Culture
in an organization develops and ‘blossoms’ over many years, starting from the practices of the
founder(s).
Since culture is an important internal environmental concern for an organization, managers

need to understand its influence on organizational activities.
Resources of the Organization
An organization s resources can be discussed under five broad heads: physical resources,
human resources; financial resources, informational resources, and technological resources.
Physical resources include land and buildings, warehouses, all kinds of materials, equipment
and machinery.
Examples are office buildings, computers, furniture, fans, and air conditioners.
Human resources include all employees of the organization from the top level to the lowest
level of the organization.
Examples are teachers in a university, marketing executives in a manufacturing company, and

manual workers in a factory.
Financial resources include capital used for financing the operations of the organization
including working capital. Examples are investment by owners, profits, reserve funds, and
revenues received out of a sale. Informational resources encompass ‘usable data needed to
make effective decisions.
Examples are sales forecasts, price lists from suppliers, market-related data, employee profile,
and production reports.
Organization’s image/goodwill
The reputation of an organization is a very valuable intangible asset. High reputation or

goodwill develops a favorable image of the organization in the minds of the public (so to say,
in the minds of the customers).
‘No- reputation’ cannot create any positive image. A negative image destroys the
organization’s efforts to attract customers in a competitive world.
The internal environment of an organization consists of the conditions and forces that exist
within the organization.
Internal environment {sometimes called micro-environment) portrays an organization’s ‘in-

house’ situations.
An organization has full control over these situations. Unlike the external environment, firms
can directly control the internal environment.
Internal environment includes various internal factors of the organization such as resources,
owners/shareholders, a board of directors, employees and trade union, goodwill, and corporate
culture. These factors are detailed out below.
External Environment of Organization – Factors Outside of Organization’s Scope
Factors outside or organization are the elements of the external environment. The organization
has no control over how the external environment elements will shape up.
The external environment embraces all general environmental factors and an organization’s
specific industry-related factors. The general environmental factors include those factors that
are common ir\ nature and generally affect all organizations.
Because of their general nature, an individual organization alone may not be able to
substantially control their influence on its business operations.
Managers have to continuously read signals from the external environment to spot emerging
opportunities and threats. The external environment presents opportunities for growth
leadership, and market dominance, it also poses the threat of obsolescence for products,
technology, and markets.
While one section of an organization faces opportunities, another faces threats from a similar
environment, perhaps because there is differentiation in their respective resources, capabilities
and entrenched positions within the industry.
For example, the burgeoning mobile telephone market in India provides enormous
opportunities for different types of organizations from handset manufacturers, content
developers, application developers, mobile signal tower manufacturers, to service providers.

At the same time, it poses a threat to the fixed-line telephone business which for a long time,
has been the monopoly of public sector enterprises.
The increasing demand for telecommunication services in India post-deregulation was an

enormous opportunity for early entrants to enter the telecom services business and compete for
revenue with state-owned organizations.
At the same time, the growing demand for mobile services led to an expansion of industrial
capacity, price wars, lowering of call tariffs, acquisitions, and declining industry profits.
India has one of the lowest call rates in the world. As the industry matured and consolidation
took place, the old players had to alter their business models and strategies.
The external environment can be subdivided into 2 layers;
General Environment.
Task / Industry Environment.
General Environment of Organization – Common Factors that All company in the Economy
Faces
The general environment usually includes political, economic, sociocultural, technological,

legal, environmental (natural) and demographic factors in a particular country or region. The
general environment consists of factors that may have an immediate direct effect on operations
but influences the activities of the firm.

The factors of the general environment are broad and non-specific whereas the dimensions of
the task environment are composed of the specific organization.
The external environment consists of an organization’s external factors that affect its
businesses indirectly. The organization has no or little control over these factors; that means,
the external environment is generally non-controllable.
However, there may be exceptions. The external environmental factors reside outside the
organization, which can lead to opportunities or threats.
For the convenience of analysis, we can divide the external environment into two groups: (a)
general environment (or remote environment), and (b) industry environment (some call it
‘immediate operating environment’, ‘task environment or‘specific environment’).
The general environment consists of those factors in the external environment that indirectly
affect the business operations of firms.
The major factors that constitute the general environment include political situations, economic
conditions, social and cultural factors, technological advancements, legal/regulatory factors,
natural environment, and demographics in a particular country or region.
The industry environment consists of those factors in the external environment that exist in the
industry in which the organizations operate their business. The industry environmental factors
are generally more controllable by a firm than the general environmental factors.
Industry environment comprises those factors in the external environment that exists in tie
concerned industry of a firm in which it is operating its business.
For example, US Pharma is operating its business in the pharmaceutical industry.
Therefore, all factors that are likely to affect the business operations of Incepta
Pharmaceuticals Limited would be included in the ‘industry environment’ of the company.
There are mainly 6 factors in the industry environment such as suppliers, buyers & customers,
competitors & new entrants, substitute products, regulators, and strategic partners.
It may be noted that some industry environmental factors such as competitors and substitute
products may-exist even outside the concerned industry.
For example, a leasing company may emerge as a competitor of the companies in the banking
industry in terms of attracting deposits and providing loans to business houses.
Regarding the industry environment, the important issue to appreciate is that they reside in the
immediate competitive situations of a firm.
Also, they are very specific in the sense that they can be easily identified. For these reasons,
they are often regarded as ‘specific environment’ or ‘task environment’.
The strategy-makers must understand the challenges and complexities of both the general
environmental factors and the industry environmental factors. They need to appreciate that the
general environmental factors are largely non-controllable because of their distantly located
external nature.
When strategists take into cognizance of both the general (remote) and industry (operating)
environments, they are likely to become more proactive in strategic planning.
In the following discussions, you will find a broad description of the general environment.
Elements of the General External Environment
The general environment includes the; distant factors in-the external environment that is
general or common in nature. Its impact on the operations of the firm, its competitors and
customers make its analysis imperative.
We can use the PESTLE model for the identification and analysis of the factors in the general
environment. PESTLE Model covers political, economic, sociocultural, technological, legal,
and environmental (natural).
Political factors.
Economic factors.
Sociocultural factors.
Economical factors.
Legal factors.
(Natural) Environmental factors.
Along with these, we can add additional factors that suit the current modern business
atmosphere.
Demographic factors.
International factors.
The Impact of Information Technology on Organization
Introduction
A discussion of the impact of information technology on organization is largely a matter of
speculation, since we are just now beginning to perceive its effects. Speculation, though often
interesting and occasionally useful, presents some obvious hazards. One hazard, of course, is
that predictions may prove wrong. This is not as great a danger as one might suppose, however,
since the dramatic developments in the field of information technology make it likely that any
prediction, if it is sufficiently imaginative and glamorous, will eventually prove correct. In any
event, suitable hedging can minimize the probability of error, and faulty memories will reduce
the penalty of an error if the prognosticator is indiscrete enough to make it obvious.
A more serious and immediate pitfall is that the speculation may be trite and commonplace.
This hazard is particularly treacherous when dis-cussing information technology and
organization, since we already have been presented with such a rich abundance of speculation
on the subject. I do not claim that I have avoided this hazard altogether, but I have tried to
reduce the risk by confining my discussion to some of the less explored issues in-
volved. As I view the topic, information technology will affect organizational
structure primarily through the improvements it brings in the planning process.
The role of planning within the organization
An organization consists of a hierarchy of subunits pursuing a common set of objectives.

Consistent, purposeful behavior on the part of all subunits is achieved through planning. The
results of the planning are expressed in such forms as goals, plans, budgets, schedules,
policies, and procedures. Planning, like the organization itself, has a hierarchical structure.
The total process is "factored" into a hierarchy of subsidiary processes. Planning at one level
has as its purpose the achievement of plans formulated at the next higher level. Conversely,
high-level planning aims at imposing constraints that lead to "good" lower-level planning that,
in turn, eventually results in "good" organizational behavior. Higher-level planning thus affects
behavior only indirectly through lower-level planning. High-level planning generally deals
with aggregate variables extending over relatively long time spans. Lower-level planning
progressively adds greater detail within the constraints provided by the more aggregate plans.
For example, a quarterly plant-wide schedule might be amplified by lower-
level planning into weekly departmental schedules. Planning at a given organizational level is
constrained not only by current operating plans, but also by less ephemeral forms of higher-
level planning. The goal structure of the organization, for example, serves this purpose. Thus,
basic long-range "objectives" restrict the choice of medium- range "goals" that limit the choice
of short-term "plans." Similarly, policies and procedures defined at one level in the
organization provide constraints on lower- level planning (Granger, 1964) . All of these forms
of planning are, of course, designed to constrain lower-level planning in a way that will
bring about satisfactory organizational behavior.
Globalization
Globalization implies the integration of the world economies. It includes a rapid increase in the
movement of goods, services, and capital across national borders. Globalization is related to
the increase in the significance of individual businesses that operate in a range of countries.
Increasingly, these businesses see the world as a single market. One of the key drivers in
globalization is the role of transnational corporations (TNCs).

The United Nations defined TNC as ‘an association, which possesses and controls the means of
production of goods and services outside die country in which they were established’.
Activities are dispersed worldwide but specialize in locations that are best suited to these
particular activities. TNCs usually have their headquarters in one country, but have complex
networks servicing their worldwide activities. Examples include General Motors, Shell, Nestle,
and Sony.
It is difficult to isolate any single syndrome of globalization for an organization. A series of

structural changes in the markets and societies succeeds globalization.
Some of these are the behaviour and performance of firms that operate across several countries,
relationships between firms across national boundaries, the increasing ability of consumers to
access international suppliers, the international exploitation of intangible assets within firms,
also accessible to consumers, the decreasing importance of geography in the choices firms
make about where to carry out specific parts of their operations, how much of their operations
they choose to do themselves, and how they finance them, etc. Yip (1992) documented the
effect of globalization on the firm’s behaviour and strategy.
The investment strategy of the firms can be either horizontal or vertical. Organizations, which
follow horizontal investment strategy, reproduce their own business models in foreign
countries. Vertical investment strategy, on the other hand, requires an organization to create a
production chain even in foreign countries for getting the advantage of integration.
Outsourcing is the most visible outcome of globalization, which impacts industry structures,
and on wages and income distribution (Feenstra 1998). With globalization, it is now possible
for individual consumers to access international markets and make an informed choice.
Customers are now able to benchmark price, quality, and services internationally and then take
informed decisions. Globalization, thus, increases the incidence of international trade with
appropriate trade integration in a border less market, and accentuates cross-border transactions.
Inevitably, all these have impacts on organizational activities.
Organizational behavioural issues now require more emphasis on making people adaptable to
change by making them understand the competition. Partnering people in the change process
evokes a positive response from the workers. For many organizations, the labour cost is the
most significant component of the total cost.
With globalization, cost competitiveness is now pegged by the organizations through

outsourcing and relocating their manufacturing operations in low labour-cost countries. With
the lowering of inter-country trade barriers, now it is possible for organizations to source their
requirements internationally.
Role of Transnational Companies in Globalization:

Organizations such as BP and Coca-Cola provide the framework and motivation for
globalization. To maximize profits, these organizations locate their manufacturing activities in
low wage-cost countries and sell their products globally. This ensures their cost
competitiveness and wide market reach across the globe. Nike, for example, produces much of
its output in low-wage countries such as Indonesia, using contract labour.
Role of Global Consumers in Globalization:
Cultural differences have traditionally created a great variety of distinctive markets. Increased
interaction through travel, TV, and the Internet has reduced the preference for local products.
McDonalds, for example, is now able to market a reasonably uniform product in diverse places
such as Russia and China, and lately even in India.
Impact of Technology in Globalization:
Globalization has brought the world closer in terms of economic activities, thereby reducing
distances and time. All these have become possible due to revolutionary advancements in the
technologies of transport and communications. Technology has now extended the market
reach, ensuring free flow of goods and services. With die easy transferability of technology,
today even low-technology, third-world countries can reap the advantages of such tech-
nological advancements and make themselves globally competitive.
The Impact of Diversity
Diversity is a word that gets tossed around in society without any real explanation as to what it
is and what it can do for an environment. In short, diversity is defined as the different traits and
backgrounds of the people present in a group.4 This can apply to age, gender, educational
background, religion, language and culture, political beliefs, socioeconomic status, and
orientation. The diversity of a business' staff members will often depend on the business'
location, size, and industry.
Managing diversity is going to be dependent on any of those factors, which means that
businesses need to be able to handle things on a case by case basis. There are significant
benefits and challenges to diversity in the workplace, and management needs to be trained
properly in order to handle either.5 When properly addressed, diversity does present some
advantages for businesses:
Learning-Diversity in any situation is a chance for others to learn about people who are
different from themselves. In business, this can aid in the growth of individual employees and
for the business as a whole by exposing them to new ideas and perspectives.6 Interactions
between co-workers of different backgrounds can help reduce prejudice and make it easier for
them to work together.
Experience and Knowledge-The experiences a person has often are impacted by their
background and cultural traits, which allows each employee to bring a unique set of skills and

strengths into the business. Teams that have members with different skill sets tend to be able to
combine their strengths to offset any weaknesses that prevent them from being efficient.
Together, this can boost their productivity and make them adaptable to changes.
International Skills-With globalization become an integral part of business, it's more

important than ever for companies to be able to interact in the global market.7 The diversity in
a business may include employees who speak other languages and can work on customers and
business partners directly. Diversity can also help when a company has multiple branches
throughout the world, as the traits of an employee's cultural background can help them navigate
in those locations.
Reputation-Since the diversity of the workforce is increasing, job seekers want to know
that the businesses they are looking to work with can effectively handle issues of diversity.
Employers who have a reputation for being fair to workers from all walks of life and having no
tolerance for discrimination are far more appealing than employers who do not. It should be
noted that those are also traits that other companies look for when the want to collaborate with
another business, both locally and abroad.
Unfortunately, there can be some disadvantages for businesses when it comes to diversity:
Discrimination-Despite the business' best efforts, instances of discrimination can still

occur with diversity. They are often based in prejudices, stereotyping, and misinformation and
can have serious consequences for both those involved and the company itself.8 It is the
business' responsibility to establish what the policies are in regards to discrimination and to
ensure that they follow any and all anti-discrimination laws.
Poor Interaction-It is not unheard of for workers of different backgrounds to clash

culturally. A lack of understanding or misconceptions about a particular demographic can
generate a ton of issues between the affected employees and their interactions. It damages
communication and brings productivity and group cohesiveness down. In serious cases, it can
create a hostile environment that damages the workplace culture and the business'
organizational behavior regardless of if it's isolated to a few people.
Authority and Training-While it's a good that business take the initiate in training their
staff on diversity, it can be problematic if mishandled. There may be some resistance to
diversity from staffers and they may see training as forcing them to accept unnecessary (to
them) changes.9 This may result in backlash and a breakdown in the relationship between staff
and management. There's also no guarantee that those in places of authority will follow
through on what they learned in training-strong-held beliefs and prejudices can be difficult to
break through. As a result, diversity issues like discrimination can be left unresolved or
worsened by someone with authority abusing their power.
Encouraging Culture and Diversity in the Workplace

Culture and diversity is not something that simple springs up overnight. Yes you can have a
new employee who has a different cultural background than the rest of the office, but as
mentioned it's still a gradual development. Even then, there's no guarantee that it will have any
impact on the business if that bit of diversity that the person brings isn't encouraged. As with
other aspects of organizational behavior, culture and diversity cannot play a role in a business
if they're not actively participating.
Encouraging culture and diversity amongst the staff often falls to those in management, via
their policies and leadership. If you want to encourage diversity in your business amongst your
employees, then they need to know that in the first place as well as what, if any, restrictions or
limitations are in place per company policies. Making that information available through an
accessible source like the employee handbook or through the company's human resources
department is a good idea. You also can do some of the following:
Practicing Inclusion-Inclusion involves looking at individual needs and trying to make

sure that those needs are met, supported, and respected.10 This often means that businesses
need to make sure that they are offering the right resources for their staffers, taking into
account their backgrounds and capabilities. It allows for employees to know that they are
welcomed at work regardless of whatever differences they may have from their peers.
Practicing inclusion tends to put everyone on a level playing field, which can prevent delays in
production or inhibit group cohesion. Businesses that practice inclusion tend to need to look at
what they currently offer for their employees and figure out what can be improved. This may
mean that policies have to be updated or that new resources need to be made available. The
business will should also consider reevaluating themselves regularly to ensure that they are
continuing to meet the needs of their employees and customers.
Education-People may be unfamiliar with the culture of their peers at work and some
questions may be raised. As the diversity of a workplace increases, this may happen and it may
become an issue if there are misunderstandings. Opening up the pathways for education about
other cultures can be a great way to encourage cultural expression and diversity. Doing so can
ease some of the tension for those trying to avoid cultural faux pas, satisfy some curiosity, and
improve intrapersonal relations and teamwork. There is also the possibility that the business'
clients will also have a diverse background as well, with the same concerns applying during
interactions. This can help avoid any negative or harmful interactions that can reflect poorly on
the business. There should also be some means of educating staff on what policies there are
should a harmful or negative interaction relating to an aspect of someone's culture occur. Such
information, for example, should be made available via the employee handbook.
Communication-Regardless of its purpose or what it is being applied to, communication

is a necessary component for any kind of organization to function. In the matter of culture and
diversity, it's key for any kind of knowledge and understanding to spread throughout the staff
members. Diversity is a major component of today's society, so it's not uncommon for a
business to have staff and customers that come from a variety of different backgrounds. People

may be hesitant to express their culture even when they make adjustments for a work
environment, or there may be concerns that there may be a clash of cultural ideals with co-
workers of different backgrounds. To encourage culture and diversity in the workplace means
that the staff needs to communicate with each other about what's going on. Create a dialogue
that will encourage discussion and education between employees of different cultures. Be open
with what the rules are in regards to cultural expression and what avenues can be taken if there
are cases of clashing cultures or discrimination.
Ethics and Organizational Behavior:
An ethical organization can achieve better business results. This maxim is now making more
and more corporate leaders accept their social responsibilities and organizational ethics.
Organizations indulging in unethical business practices or even in unethical dealings with their
employees are now quickly identified and globally exposed in this era of technology intensive
communication systems.
Organizational activities require redesigning and updating, keeping pace with public
expectations and ever-rising standards. With the pattern of organizational behaviour (OB),
injustice, corporate dishonesty, exploitation, and negligence being more visible and attracting
public opinion and criticism, ethical violations are carefully avoided.
We all know City Toys’ case. City Toys used to manufacture toys using child labour in China
to offer as gift items to the customers of McDonald’s. It was subjected to criticism
internationally to such an extent that McDonald’s had to withdraw the practice. The Indian
carpet industry and the Bangladesh garment industry faced similar predicament in terms of
export restrictions for using child labour. Even suppressing facts on products and services
become an ethical violation from the customers’ point of view.
For organizations, ethical issues encompass every citizen of the world. The definition of
stakeholder is no longer limited to shareholders, investors, and partners. A stakeholder is any
group that has an interest in, involvement with, dependence on, contribution to, or is affected
by the organization. A stakeholder is any individual or group who could lose or gain something
because of the actions of the organization.
Unethical corporate practices can be classified into the immoral category, that is, a deliberate
violation of ethical issues to harm the stakeholders. This apart there may be unknowing
violations of ethics by the organization, which we can categorize into the amoral type.
Negative consequences of unethical corporate cultures in human resource management or OB

pervade selection and staffing, performance appraisal, compensation, and retention decisions.
Thus, human resource systems and ethical corporate cultures should be considered partners in
the process of creating competitive advantages for organizations.
Definitions and Concepts:

Ethics are moral principles (about what is good, defensible, and right). It is often treated as an
afterthought. Ethics and ethical reflection need to be integrated through all OB. A common
philosophical definition of ethics is the science of conduct or values of management.
Moral values such as respect, honesty, fairness, and responsibility are important constructs of
ethics. Application of such ethics is ensured by organizations by adopting some code of ethics.
Thus, ethics include the fundamental ground rules and organizations give an informed choice
to the employees to understand whether something is right or wrong and then take decisions
making the right choice.
Ethics therefore, is the framework of values for moral behaviour. It is a social glue to ensure
that an organized society prospers and everybody’s interest is served. The Ten Commandments
of the Christians or the teachings of the Bhagwad Gita for the Hindus are sources of directions
for ethical behaviour in life.
Today, we are concerned with the issue of ethics in two aspects of life, namely business and
profession. Business represents the entrepreneurs and profession represents those who are
employed in an organization or who work for an employer. In other words, ethics are equally
applicable for the employers and the employees. In India we find reference to ethics in the
Bhagwad Gita.
Our traditional guild systems laid down the ethics of business or profession. This sacred text
emphasizes the need for internalization of the ethical codes by the individuals, so that they can
reflect the same through their behaviour. Organizations can benefit in the best way, when they
make their people internalize the ethical codes and values.
However, now external forces also compel organizations to comply with ethical issues.
External forces always need not be the regulatory authorities alone, they could be even
stakeholders, whose changing expectations require organizations to step up their ethical
standards and conducts.
In the case of a profession, it could be the professional association or the guild and in the case
of a society where there is a government, it is the government agency, which ensures that the
laws are obeyed. In fact, in a secular society, it is the law that lays down what is acceptable
conduct and what is not. Acceptable conduct would be encouraged and unexpected conduct
would be considered illegal and punishment meted out
Organizational Culture
Organizational culture is the collection of values, expectations, and practices that guide and
inform the actions of all team members. Think of it as the collection of traits that make your
company what it is. A great culture exemplifies positive traits that lead to improved
performance, while a dysfunctional company culture brings out qualities that can hinder even
the most successful organizations.

Don’t confuse culture with organizational goals or a mission statement, although both can help
define it. Culture is created through consistent and authentic behaviors, not press releases or
policy documents. You can watch company culture in action when you see how a CEO
responds to a crisis, how a team adapts to new customer demands, or how a manager corrects
an employee who makes a mistake.
The importance of culture to your company
Organizational culture affects all aspects of your business, from punctuality and tone to
contract terms and employee benefits. When workplace culture aligns with your employees,
they’re more likely to feel more comfortable, supported, and valued. Companies that prioritize
culture can also weather difficult times and changes in the business environment and come out
stronger.
Culture is a key advantage when it comes to attracting talent and outperforming the
competition. 77 percent of workers consider a company’s culture before applying, and almost
half of employees would leave their current job for a lower-paying opportunity at an
organization with a better culture. The culture of an organization is also one of the top
indicators of employee satisfaction and one of the main reasons that almost two-thirds (65%)
of employees stay in their job.
Consider Microsoft and Salesforce. Both technology-based companies are world-class

performers and admired brands, and both owe this in part to prioritizing culture. Microsoft,
known for its cut-throat competitiveness under Steve Balmer, has been positively transformed
by Satya Nadella, who took over as CEO of the company in 2014. He embarked on a program
to refine the company culture, a process that upended competitiveness in favor of continuous
learning. Instead of proving themselves, employees were encouraged to improve themselves.
Today Microsoft’s market cap flirts with $1 trillion and it is again competing with Apple and
Amazon as one of the most valuable companies in the world.
Salesforce puts corporate culture front and center and has experienced incredible growth
throughout its history. Marc Benioff, Salesforce’s founder and CEO, established philanthropic
cultural norms that have guided the company over the past two decades. All new Salesforce
employees spend part of their first day volunteering and receive 56 hours of paid time to
volunteer a year. This focus on meaning and mission has made Salesforce one of the best
places to work in America according to Fortune, and it hasn’t compromised profits either:
Salesforce’s stock price has surged year after year at an average of over 26% annually to date.
Qualities of a great organizational culture
Every organization’s culture is different, and it’s important to retain what makes your company
unique. However, the cultures of high-performing organizations consistently reflect certain
qualities that you should seek to cultivate:

Alignment comes when the company’s objectives and its employees’ motivations are all
pulling in the same direction. Exceptional organizations work to build continuous alignment to
their vision, purpose, and goals.
Appreciation can take many forms: a public kudos, a note of thanks, or a promotion. A culture
of appreciation is one in which all team members frequently provide recognition and thanks for
the contributions of others.
Trust is vital to an organization. With a culture of trust, team members can express themselves
and rely on others to have their back when they try something new.
 Performance is key, as great companies create a culture that means business. In these
companies, talented employees motivate each other to excel, and, as shown above, greater
profitability and productivity are the results.
 Resilience is a key quality in highly dynamic environments where change is continuous. A

resilient culture will teach leaders to watch for and respond to change with ease.
 Teamwork encompasses collaboration, communication, and respect between team

members. When everyone on the team supports each other, employees will get more done and
feel happier while doing it.
 Integrity, like trust, is vital to all teams when they rely on each other to make decisions,
interpret results, and form partnerships. Honesty and transparency are critical components of
this aspect of culture.
 Innovation leads organizations to get the most out of available technologies, resources, and
markets. A culture of innovation means that you apply creative thinking to all aspects of your
business, even your own cultural initiatives.
 Psychological safety provides the support employees need to take risks and provide honest
feedback. Remember that psychological safety starts at the team level, not the individual level,
so managers need to take the lead in creating a safe environment where everyone feels
comfortable contributing.
Reward Systems
After a company has designed and implemented a systematic performance appraisal system
and provided adequate feedback to employees, the next step is to consider how to tie available
corporate rewards to the outcomes of the appraisal. Behavioral research consistently
demonstrates that performance levels are highest when rewards are contingent upon
performance. Thus, in this section, we will examine five aspects of reward systems in
organizations: (1) functions served by reward systems, (2) bases for reward distribution, (3)
intrinsic versus extrinsic rewards, (4) the relationship between money and motivation and,
finally, (5) pay secrecy.

Functions of Reward Systems
Reward systems in organizations are used for a variety of reasons. It is generally agreed that
reward systems influence the following:
Job effort and performance. Following expectancy theory, employees’ effort and performance
would be expected to increase when they felt that rewards were contingent upon good
performance. Hence, reward systems serve a very basic motivational function.
Attendance and retention. Reward systems have also been shown to influence an employee’s
decision to come to work or to remain with the organization. This was discussed in the
previous chapter.
Employee commitment to the organization. It has been found that reward systems in no small
way influence employee commitment to the organization, primarily through the exchange
process. That is, employees develop ties with organizations when they perceive that the
organization is interested in their welfare and willing to protect their interests. This exchange
process is shown in Exhibit 8.6. To the extent that employee needs and goals are met by the
company, we would expect commitment to increase.
Job satisfaction. Job satisfaction has also been shown to be related to rewards, as discussed in
the previous chapter. Edward E. Lawler, a well-known researcher on employee compensation,
has identified four conclusions concerning the relationship between rewards and satisfaction:
(1) satisfaction with a reward is a function of both how much is received and how much the
individual feels should have been received; (2) satisfaction is influenced by comparisons with
what happens to others, especially one’s coworkers; (3) people differ with respect to the
rewards they value; and (4) some rewards are satisfying because they lead to other rewards.
Occupational and organizational choice. Finally, the selection of an occupation by an

individual, as well as the decision to join a particular organization within that occupation, are
influenced by the rewards that are thought to be available in the occupation or organization. To
prove this, simply look at the classified section of your local newspaper and notice how many
jobs highlight beginning salaries.

Exhibit 8.6 The Exchange Process Between Employee and Organization (Attribution:
Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)
Reward systems in organizations have far-reaching consequences for both individual

satisfaction and organizational effectiveness. Unfortunately, cases can easily be cited where
reward systems have been distorted to punish good performance or inhibit creativity. Consider,
for example, the Greyhound Bus Company driver who was suspended for 10 days without pay
for breaking a company rule against using a CB radio on his bus. The bus driver had used the
radio to alert police that his bus, with 32 passengers on board, was being hijacked by an armed
man. The police arrested the hijacker, and the bus driver was suspended for breaking company
rules. Such incidents hardly encourage employees to focus their efforts on responsible
performance.
Bases for Reward Distribution
A common reality in many contemporary work organizations is the inequity that exists in the
distribution of available rewards. One often sees little correlation between those who perform
well and those who receive the greatest rewards. At the extreme, it is hard to understand how a
company could pay its president $10 to $20 million per year (as many large corporations do)
while it pays its secretaries and clerks less than $15,000. Each works approximately 40 hours
per week, and both are important for organizational performance. Is it really possible that the
president is 1,000 times more important than the secretary, as the salary differential suggests?
How do organizations decide on the distribution of available rewards? At least four

mechanisms can be identified. In more cases than we choose to admit, rewards go to those with
the greatest power (either market power or personal power). In many of the corporations whose
presidents earn eight-figure incomes, we find that these same people are either major
shareholders in the company or have certain abilities, connections, or status that the company
wants. Indeed, a threat of resignation from an important or high-performing executive often
leads to increased rewards.
A second possible basis for reward distribution is equality. Here, all individuals within one job
classification would receive the same, or at least similar, rewards. The most common example
here can be found among unionized workers, where pay rates are established and standardized
with little or no reference to actual performance level. Instead of ability or performance, these
systems usually recognize seniority as the key factor in pay raises or promotions.
Rewards Performance appraisals, whether team or individual, provide feedback to workers or

organizational teams. Traditionally, performance evaluations provide information to help
improve individual performance, increase efficiency and define management's expectations.
Performance appraisals compare work performed against measurable objectives that the
employee and supervisor agreed to at the beginning of the appraisal period. As work has
become more team oriented, performance appraisals now measure how a team of workers

perform rather than just how an individual performs his job. (Attribution; Deb Nystrom/ flickr/
Attribution 2.0 Generic (CC BY 2.0))
Organizational design
Organizational design is a step-by-step methodology which identifies dysfunctional aspects of

work flow, procedures, structures and systems, realigns them to fit current business
realities/goals and then develops plans to implement the new changes. The process focuses on
improving both the technical and people side of the business.
For most companies, the design process leads to a more effective organization design,
significantly improved results (profitability, customer service, internal operations), and
employees who are empowered and committed to the business. The hallmark of the design
process is a comprehensive and holistic approach to organizational improvement that touches
all aspects of organizational life, so you can achieve:
Excellent customer service
Increased profitability
Reduced operating costs
Improved efficiency and cycle time
A culture of committed and engaged employees
A clear strategy for managing and growing your business
By design we’re talking about the integration of people with core business processes,
technology and systems. A well-designed organization ensures that the form of the
organization matches its purpose or strategy, meets the challenges posed by business realities
and significantly increases the likelihood that the collective efforts of people will be successful.
As companies grow and the challenges in the external environment become more complex,
businesses processes, structures and systems that once worked become barriers to efficiency,
customer service, employee morale and financial profitability. Organizations that don’t
periodically renew themselves suffer from such symptoms as:
Inefficient workflow with breakdowns and non value-added steps
Redundancies in effort (“we don’t have time to do things right, but do have time to do them
over”)
Fragmented work with little regard for good of the whole (Production ships bad parts to meet
their quotas)
Lack of knowledge and focus on the customer

Silo mentality and turf battles
Lack of ownership (“It’s not my job”)
Cover up and blame rather than identifying and solving problems
Delays in decision-making
People don’t have information or authority to solve problems when and where they occur
Management, rather than the front line, is responsible for solving problems when things go
wrong
It takes a long time to get something done
Systems are ill-defined or reinforce wrong behaviors
Mistrust between workers and management
Cognitive Processes-1
What is perception?
Perception is the ability to capture, process, and actively make sense of the information that our
senses receive. It is the cognitive process that makes it possible to interpret our surroundings
with the stimuli that we receive throughout sensory organs. This important cognitive ability is
essential to our daily lives because it makes it possible to understand our surroundings. It's
possible to train and improve perception with cognitive stimulation. It is an active process and
requires that we process information with both "bottom-up" and "top-down" processing,
meaning that we are not only directed by the stimuli that we receive (passive, bottom-up
processing) but that we expect and anticipate certain stimuli that control perception (active,
top-up processing).
Meaning and Definition of Perception:
“Perception is the process through which the information from outside environment is selected,
received, organised and interpreted to make it meaningful to you. This input of meaningful
information results in decisions and actions.”
Perception may be defined as a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment.”
According to Joseph Reitz, “Perception includes all those processes by which an individual
receives information about his environment—seeing, hearing, feeling, tasting and smelling.
The study of these perpetual processes shows that their functioning is affected by three classes
of variables—the objects or events being perceived, the environment in which perception
occurs and the individual doing the perceiving.”

In simple words we can say that perception is the act of seeing what is there to be seen. But
what is seen is influenced by the perceiver, the object and its environment. The meaning of
perception emphasises all these three points.
Nature of Perception:
Perception refers to the interpretation of sensory data. In other words, sensation involves
detecting the presence of a stimulus whereas perception involves understanding what the
stimulus means. For example, when we see something, the visual stimulus is the light energy
reflected from the external world and the eye becomes the sensor. This visual image of the
external thing becomes perception when it is interpreted in the visual cortex of the brain. Thus,
visual perception refers to interpreting the image of the external world projected on the retina
of the eye and constructing a model of the three dimensional world.”
From the above explanation it becomes clear that perception is something more than sensation.
It correlates, integrates and comprehends diverse sensations and information from many organs
of the body by means of which a person identifies things and objects, the sensations refer to.
Perception is determined by both physiological and psychological characteristics of the human

being whereas sensation is conceived with only the physiological features. Thus, perception is
not just what one sees with the eyes it is a much more complex process by which an individual
selectively absorbs or assimilates the stimuli in the environment, cognitively organizes the
perceived information in a specific fashion and then interprets the information to make an
assessment about what is going on in one’s environment.
Perception is a subjective process, therefore, different people may perceive the same
environment differently based on what particular aspects of the situation they choose to
selectively absorb, how they organize this information and the manner in which they interpret
it to obtain a grasp of the situation.
Importance of Perception:
i) Perception is very important in understanding the human behaviour, because every person
perceives the world and approaches the life problems differently- Whatever we see or feel is
not necessarily the same as it really is. It is because what we hear is not what is really said, but
what we perceive as being said. When we buy something, it is not because it is the best, but
because we take it to be the best. Thus, it is because of perception, we can find out why one
individual finds a job satisfying while another one may not be satisfied with it.
(ii) If people behave on the basis of their perception, we can predict their behaviour in the
changed circumstances by understanding their present perception of the environment. One
person may be viewing the facts in one way which may be different from the facts as seen by
another viewer.

(iii) With the help of perception, the needs of various people can be determined, because
people’s perception is influenced by their needs. Like the mirrors at an amusement park, they
distort the world in relation to their tensions.
(iv) Perception is very important for the manager who wants to avoid making errors when
dealing with people and events in the work setting. This problem is made more complicated by
the fact that different people perceive the same situation differently. In order to deal with the
subordinates effectively, the managers must understand their perceptions properly.
Thus, for understanding the human behaviour, it is very important to understand their
perception, that is, how they perceive the different situations. People’s behaviour is based on
their perceptions of what reality is, not on reality itself. The world as it is perceived is the
world that is important for understanding the human behaviour.
Perceptual Selectivity In Organizational Behaviour
Perceptual Selectivity – Under the process of perception it has been pointed out that it is a
selective process. In everybody’s environment there are various stimuli. These stimuli are in
the form of objects, events and people. An individual cannot get attracted towards all these
stimuli. He is attracted towards only those stimuli which interest him. The stimuli towards
which he gets attracted are selected and the others get ignored.
For example, when we read a newspaper we get attracted towards only some of the news and
ignore the remaining news.
Now the question arises as to what are the factors which influence the perceptual selectivity.
There are various factors influencing it. For the convenience of study they can be divided into
the following two categories:
(A) External Factors
These factors are related to the external environment or stimuli. These factors are in reality the
characteristics of the stimuli. It is only these characteristics of the stimuli that attract a person
and he selects them, otherwise he overlooks them. The following are the chief external factors
that influence perceptual selectivity:
(1) Size: Size means the big or small size of the stimuli. Generally, it has been observed that
stimuli which have a large size attract people quickly. There is a greater possibility of the
perception of such stimuli being selected. For example, when we read a book, it has two types
of written words, e.g., headings which are printed in big letters while their explanation is
written in small letters. The moment we open a book our attention immediately goes towards
the headings and not the explanation that follows them. In the context of business we find big
sized advertisement attracting people quicker than the small-sized advertisement.
(2) Intensity: Intensity means that some stimuli are brighter, louder, stronger in odour and more
colourful than the others. Somebody gets attracted to a loud sound than a lower sound.
Similarly brighter stimuli attract people more. For example, bright packing in business, loud
advertisement, loud speaking by a supervisor- all these things are done so that the people get
attracted to them.
(3) Repetition: Repetition factor indicates that the repetition of a stimuli has a particular
attraction. It is on the basis of this principle that the businessmen display the advertisement of
their products repeatedly. When a particular stimulus repeatedly appears before us, it is natural
that we start taking interest in it. A person desirous of getting a job meets the personnel
manager time and again.In this case we find this factor of repetition at work.
(4) Motion: This factor tells us that people get attracted more to the moving stimuli instead of
The fixed stimuli. That is why there is a greater possibility of perception about the moving
stimuli and their selection. We usually find flashing neon sign boards displayed in the market,
at the cross-roads, etc. The advertising material remains in motion in these advertisements.
People moving about during the night get attracted towards them. This is an attractive medium
of advertisement.
(5) Contrast: Contrast means when a stimulus in its own group appears to be different. Every
stimulus is looked at in the context of its background. Here background means the group of
which the stimulus happens to be a part. If a member of a group appears to be different from
the other members, the perceiver will be attracted towards it.
For example, in the following two diagrams, the squares given in the centre are of the same
size but when we look at the central square in Fig. A it looks a little small and when the same
square in the Fig. B is looked at, it appears big. Therefore, it is clear that a stimulus (object,
event or person) appears different in a different background. The use of background is made in
order to make a stimulus attractive for the people.
(6) Novelty and Familiarity: The factor of novelty and familiarity plays an important role in the
selection of stimuli. Novelty means the presence of new stimuli in the existing environment.
For example, if a foreign lecturer is appointed to teach Management Concept and
Organisational Behaviour in a class, he will attract students’ attention towards him. This is an
example of creating novelty in an old environment in order to attract the attention of the
perceivers.
Similarly, if a well known or familiar author goes to different colleges/universities to teach the
same subject he will also attract students’attention. This is an example of attracting the
attention of the perceivers by sending a known or familiar person in a new environment.
(B) Internal Factors of Perceptual Selectivity
External factors influencing the perceptual selectivity are connected with the stimuli while
internal factors are connected with the perceivers. In fact, these factors are the characteristics
of the perceivers. These characteristics of the perceivers attract them towards some particular
stimulus. If a particular person gets attracted to some particular stimuli, he selects them,
otherwise he ignores them. The following are the internal factors influencing the perceptual
selectivity:
(1) Self-Concept: Self-concept of a person is the chief internal factor of perceptual selectivity
Self-concept means as to what extent we know ourselves and how confident we are for
ourselves. The of a person helps in formulating his concept about the stimuli. For example, if a
person self-concept doubts his ability, he will fear the stimuli (his outer world). On the
contrary, if he is confident about his self, he will accept the stimuli happily. In other words, the
more we understand ourselves, the more easily we understand others. Therefore, correct self-
concept influences accurate perception.
(2) Belief: A person’s belief in external environment/stimuli helps him in the selection of the
stimuli. A person thinks about a stimulus as per his belief in it and not what it actually is. In
other words, a person accepts facts after duly censoring them so that his present belief in them
remains intact.
(3) Needs: The selection of the stimuli available in the environment is influenced by our needs.
If a person wishes to attain some particular achievement he will get attracted towards only
those stimuli which fulfill his wish. Similarly, if a person wishes an increase in his affiliation
he will get attracted towards only those stimuli which help him in satisfying his wish for
greater affiliation.
(4) Expectation: We have an expectation of a particular behaviour from everybody. We select

them on the basis of our expectation (or the behaviour expected out of them). For example, if
we expect the use of a rough/foul language by a particular section of people, our relationship
with them will depend on that very expectation. Our expectation can be fully wrong or
absolutely right. Expectation can also undergo a change.
(5) Response Disposition: Response disposition means that a person gets attracted towards a
known rather than an unknown object/person. A person gets attracted quickly towards things
which he already knows, while he ignores other things about which he knows nothing. For
example, there are two lectures going on before a religious man.
In one of the lectures religion is being taught while the second lecture is about the economic
condition of the country, it is undoubted that the person will feel interested only in the religions
discourse because he is familiar with the vocabulary of the discourse and he will easily
understand everything. This happens only because of individual’s response disposition.
(6) Interest: Selection of stimuli available in the environment is influenced by the interest of
the perceiver. For example, a plastic surgeon and not a lecturer, will get attracted towards an
individual having an unusual nose. Similarly a lecturer will get attracted to the wrong
pronunciation of words during the course of a lecture and not a plastic surgeon. This happens
only because of a special interest of the individual in a particular thing. A plastic surgeon
rectifies the unusual looks or deformities of limbs. Therefore, he gets attracted to them. On the

other hand, a lecturer’s job is teaching and, therefore, he gets attracted towards the person
pronouncing words wrongly.
(7) Learning: Some learned experience influences the perception of an individual. On the basis
of learned experience whatever a person expects to see or hear, he sees or hears the same. Look
carefully and understand the given diagram. We will read the sentence written in the triangle as
Turn off the switch’ in the first instance while there is an extra The’ in the sentence. This
happens only because we usually make use of the sentence Turn off the Switch. It means that
we know it from our previous experience.
In other words, the attraction of a person towards some stimuli depends on his learned
experience. If we talk in the context of organisation, the learned experience of an employee
influences his perception. For example, the decision making by an employee is affected by his
specialisation.
Social Perception
Perception is the process through which people receive, organize, and interpret information
about their environment.1 Perceiving involves becoming aware of the world around us and
processing information about that world. Perception is the method by which we come to
understand ourselves, other people, situations, and events.
Social perception is the process by which we interpret information about another person or
other people. Our social perceptions help us form opinions and judgments about others. Social
perception is of interest to organizational behaviorists because so many managerial activities
are based on perceptions of employees. For instance, managers use social perceptions when
they recruit, hire, train, and evaluate employees. To arrive at an understanding of the factors
that influence social perception, we will consider the characteristics of the perceiver, the person
being perceived, and the situation.
Characteristics of the Perceiver
Five important personal characteristics of the perceiver that influence the way he or she
perceives others are familiarity of the culture of the person perceived, familiarity with the
person perceived, attitudes, mood, self-concept, and thinking pattern.
Familiarity with the Culture of Person Perceived
In the context of social perception, familiarity refers to the knowledge about the culture that the
person belongs to. The more the perceiver knows about the culture, the better he/she will be
able to understand and base his/her perceptions on. However, understanding a culture does not
necessarily mean you would be able to be accurate in your perceptions. For example, not all
Americans are individualistic and not all Chinese are entrepreneurial minded. One of the best
ways to understand culture is to live in that culture for a time to understand their social

perceptions in that environment. However, living in anther culture could be not only exciting
but sometimes also very challenging and stressful.
Familiarity with the Person Perceived
In the context of social perception, familiarity refers to the perceiver's knowledge about the
person being perceived. The more the perceiver knows about the person being perceived, the
greater the amount of information available to the perceiver on which to base his or her
perceptions. But just because we know a great deal about a person does not necessarily mean
that our perceptions will be accurate. For instance, sometimes we ignore information that is
inconsistent with our beliefs about a person. If we tend to ignore or justify the mistakes of our
close friends, it's because such faults are inconsistent with our beliefs about our friends. So
while familiarity influences our perceptions, it does not guarantee greater accuracy in
perceiving.
Attitudes
The perceiver's attitudes influence social perception. For instance, if you accept a stereotype
about a certain group of people, you will tend to perceive this characteristic in people from that
group whom you meet.
Mood
The mood we are in affects the way in which we perceive others. You are probably aware that
you think differently when you are happy than when you are sad. A person in a good mood
tends to perceive others more positively. Imagine being escorted into a job interview by a
receptionist who informs the interviewer that his car was just stolen from the parking lot!
Self-Concept
A person with a positive self-concept tends to perceive the positive characteristics of others.
Conversely, a person with a negative self-concept is likely to focus on negative characteristics.
The more accurate a person's self-concept, the more accurate his or her perceptions of others
will tend to be.
Thinking Pattern
Your thinking pattern influences your perceptions of others. For instance, some people
perceive physical traits such as height and weight more readily than they perceive personality
traits. Other people are able to perceive many characteristics of a person rather than noticing
just a few specific traits.
Characteristics of the Person Being Perceived
Three characteristics of the person perceived that influence the perceptual process are physical
appearance, verbal and nonverbal communication, and intentions.

Physical Appearance
Of the three characteristics of the person perceived, physical appearance has the greatest
impact on social perception. We instantly note unusual physical traits. We also tend to perceive
attractive people more positively; attractive people get more job offers and higher salaries. We
also tend to perceive people's origins based on how they look (e.g. even though a person may
look Japanese, he or she could have been born and raised in Switzerland!). In an international
environment, such misreading of physical appearances happens frequently.
Verbal and Nonverbal Communication
Both verbal and nonverbal communication influence how a person is perceived. In addition to
the things we say, our tone of voice and body language convey information to the perceiver.
For instance, a perceiver might interpret our ability to maintain eye contact as a sign of interest.
Non-verbal communication is perhaps one of the hardest things to read when working with
others as sometimes such are so enmeshed within a person's culture. In a multicultural setting,
sometimes even verbal communication is misunderstood. It is therefore always wise to restate
what was said to ensure that the message was heard correctly.
Intentions
How we interpret the intentions of others influences our perceptions of their personality. For
instance, if you assume that your professor is going to criticize your work, you may perceive
your instructor to be a negative and critical person.
Attribution theory
Attribution theory is intended to help a person understand the causes of human behavior, be it
their own or someone else's. The basis of attribution theory is that people want to know the
reasons for the actions that they and others take; they want to attribute causes to behaviors they
see rather than assuming that these behaviors are random. This allows people to assume some
feeling of control over their own behaviors and over situations. Psychologist Fritz Heider
(1896–1988) first developed attribution theory in his 1958 book The Psychology of
Interpersonal Relations. Heider proposed that what people perceived and believed about what
they saw dictated how they would act, even if their beliefs about what they perceived were
invalid.
Heider's proposed theory of attribution was further developed by psychologist Bernard Weiner
and colleagues in the 1970s and 1980s, and this new theoretical framework has been used
primarily in current attribution research. A final development to attribution theory was
provided by psychologist Harold Kelley, who examined how consistency, distinctiveness, and
consensus could be used by individuals to establish the validity of their perceptions.
Attributions are critical to management because perceived causes of behavior may influence
managers' and employees' judgments and actions. For instance, managers must often observe
employee performance and make related judgments. If a manager attributes an employee's poor
performance to a lack of effort, then the outcome is likely to be negative for that employee; he
or she may receive a poor performance appraisal rating or even be terminated from the job.
Conversely, if a manager perceives that an employee's poor performance is due to a lack of
skill, the manager may assign the employee to further training or provide more instruction or
coaching. Making an inaccurate judgment about the causes of poor performance can have
negative repercussions for the organization.
Attributions also may influence employee motivation. Employees who perceive the cause of
their success to be outside of their control may be reluctant to attempt new tasks and may lose
motivation to perform well in the workplace. Conversely, employees who attribute their
success to themselves are more likely to have high motivation for work. Thus, understanding
attributions that people make can have a strong effect on both employee performance and
managerial effectiveness.
Locus of control
Locus of control is the degree to which people believe that they, as opposed to external forces
(beyond their control), have control over the outcome of events in their lives. People with a
strong external locus of control tend to praise or blame external factors such as the teacher or
the exam.
Also, what is Locus of Control Example? Internal Locus of Control. By Renée Grinnell. The
belief that events in one's life, whether good or bad, are caused by controllable factors such as
one's attitude, preparation, and effort. Example: When the boy failed a test, he acknowledged
that he hadn't studied enough and didn't understand a few of its key questions
Similarly, how is locus of control related to behavior?
An internal locus of control is associated with achievement and success because of the
tendency to attribute both your successes and failures to your actions. It gives employees a
reason to study their actions and find out where they went wrong and take the necessary
actions to improve.
There are two types of locus of control, internal or external. An external locus of control
supports a belief that one is helpless, without blame, and not in control of one's successes and
failures. While a student with an internal locus of control will attribute their success and
failures to their own efforts.
Attribution Error
Reseacher have identified two types of errors in attribution. They are:
1.Fundamental attribution error refers to an individual's tendency to attribute another's

actions to their character or personality, while attributing their behavior to external situational
factors outside of their control. In other words, you tend to cut yourself a break while holding
others 100 percent accountable for their actions.

For instance, if you've ever chastised a "lazy employee" for being late to a meeting and then
proceeded to make an excuse for being late yourself that same day, you've made the
fundamental attribution error.
2. Self-serving Error: Self-serving error is the tendency to deny personal responsibility for
performance problems but to accept personal responsibility for performance success.
Impression Management
Impression management is a conscious or unconscious effort towards influencing the

perceptions, decisions and opinions of other people. In simpler words, it is a process of
controlling or managing impressions of others in social interactions. Let’s look at some of the
types and examples of impression management to understand the concept.
There are two primary types of impression management.
1. Constructive: One that helps in the formation of self-identity.We see the

success of constructive impression management in the advertising world. Take
Starbucks, for example. It’s considered ‘cool and hip’ when you purchase a chai tea
latte.
2. Strategic: One that helps in achieving interpersonal goals. We see maximum

instances of strategic impression management in our professional lives. Whether
you’re attending a job interview, interacting with a client or attending a conference
—you dress appropriately and regulate your tone and language accordingly.
Strategies Of Impression Management
No matter what anybody says, first impressions in business environments matter to a great
extent. Not only do impressions help you maintain professionalism but also contribute to
business growth and development. You’ll see two basic types of strategies of impression
management in workplaces:
1. Demotion-PreventiveIf someone is trying to stay out of trouble or lessen the

impact of a damaging event, they’ll use the demotion-preventive strategy. Many
will justify their action(s) or find excuses to prove themselves right. Many will
offer their apologies so that they can repair the damage to some extent.
2. Promotion-Enhancing If someone is trying to project an ideal version of

themselves, they’ll use a promotion-enhancing strategy. Some will work towards
identifying personal or professional obstacles that interrupt their career growth.
Some will work harder with stricter deadlines or more workload, therefore stepping
outside their comfort zone. Some will even voice their concern(s) about their
efforts not going.

Impression Management Techniques
Impression management is a valuable tool that helps you engage in strategic behavior, but it
can get tricky. Learn to differentiate between constructive and destructive impression
techniques before you engage with people. Here’s a list of seven common techniques that we
use in everyday life.
1. Conformity: It’s the act of matching your behavior with the group or environmental
norms and attitudes. For example, students need to conform to a set of rules while they’re
present on school grounds or in the classroom.
2. Excuses: They generally refer to an explanation that cushions the consequences of a

negative or unacceptable event. For example, we may make excuses when we’re late to
work.
3. Acclaim: It means to proudly and openly acknowledge somebody when they do their
work properly or correctly. For example, in team feedback sessions, managers give
employees who are doing a good job a pat on the back.
4. Flattery: To excessively compliment someone to appear likable or perceptive is to

flatter them. For example, if you want an extra serving of food, you may compliment and
flatter the chef.
5. Self-promotion:To emphasize your best characteristics or downplay your weaknesses

are some of the effective ways of promoting or advertising yourself. Social media
influencers are widely known for self-promotion.
6. Favors: To do something nice for others to receive approval or acceptance is to do a

favor. For example, you may take on some extra work so that your coworker can attend
their child’s school play.
7. Association: Sometimes we associate with certain people to protect or promote our

self-image. For example, people network at conferences so that they can reach out to more
people in the industry later.

UNIT-II
CONGNITIVE PROCESSES
Personality And Attitudes : Every organization is a mix of individuals with a variety of
personalities, values, and attitudes. Personality and characteristics determine an
employee’s behavior and ability to perform. Organizations hire people on the premise that
they have certain knowledge, skills, abilities, personalities, and values which they bring to
the workplace.
Role of Personality and Attitude in Organization
Personality contributes in part to workplace behavior because the way that people think,
feel, and behave affects many aspects of the workplace. Attitude is another major factor to
be considered here. People's personalities influence their behavior in groups, their
attitudes, and the way they make decisions.
Today, at the hiring stage itself many organizations are attempting to screen applicants
who are more likely to fit with their company culture. Organizations want to hire
individuals with positive traits and attitudes to create a healthy environment.
Importance of Personality
Personality is a set of distinctive individual characteristics, including motives, emotions,
values, interests, attitudes, and competencies. It is a stable set of characteristics
representing internal properties of an individual, which are reflected in behavioral
tendencies across a variety of situations.
It determines an employee’s fitment in terms of personality, attitude and general work
style. In managing the day-to-day challenges, it is the personality of the people involved
that affects the decisions taken in an organization. For example, a manager who cannot
motivate his staff positively risks the integrity of the team which directly impacts the
quality of service resulting in low productivity.
A manager’s personality greatly impacts motivation, leadership, performance, and
conflict. The more understanding a manager has on how personality in organizational
behavior works, the better equipped he will be to bring out the best in people and
situation.
Personality Traits
Organizations have greatly evolved over the years in the way organizations operate and
react to situations. Today they are leaner with fewer levels and more transparency.
Managers are more participative involving subordinates at all levels. The shift towards
more knowledge-oriented and customer-focused jobs have rendered more autonomy even
at fairly low levels within organizations.
The constant volatility of the environment affecting organizations have made them open
to changes and newness. All of these factors have contributed to personality being seen as
more important now than it was in the past.
Behavior patterns have been a constantly evolving field of study where psychologists
attempt to identify and measure individual personality characteristics, often
called personality traits which are assumed to be some enduring characteristics that are
relatively constant like dependable, trustworthy, friendly, cheerful, etc.
Modern personality theorists, Costa & McCrae, have researched and published their study
of a ‘5 trait’ model which is now widely accepted among psychologists. These 5 aspects
of personality are referred to as the 5-factors or sometimes just ‘the Big 5’.
The Big 5 Personality Traits
There are a number of traits on which persons can be ranked or measured. However, five
core personality traits called the five factor model have been found to be of value for use
in organizational situations.
Each of these 5 personality traits describes, relative to other people, the frequency or
intensity of a person's feelings, thoughts, or behaviors. Every individual possesses all 5 of
these traits, but in varying degree.
For example, we can describe two managers as ‘tolerant’. But there could be significant
variation in the degree to which they exercise their tolerance levels.
The model categorizes people as possessing the following traits in varying degrees of high
scope and low scope.
Conscientiousness
 High Score − Productive and disciplined, rigid and single tasking.
 Low Score − Less structured, less productive, more flexible, inventive, and capable of
multitasking.
 Agreeableness
 High Score − Co-operative, can be submissive, and empathetic to others.
 Low Score − Demanding, challenging and competitive, sometimes even
argumentative.
 Extraversion
 High Score − Energetic, Cooperative, talkative, enthusiastic and seek excitement.
 Low Score − Loners, not sympathetic, difficult to understand, even a bit eccentric.
 Openness to Experience
 High Score − Beginners, curious and sometimes unrealistic.
 Low Score − Grounded, practical and sometimes resist change.
 Neuroticism
 High Score − Calm, relaxed and rational. Sometimes can be perceived as being lazy
and incapable of taking things seriously.
 Low Score − Alert, anxious, sometimes unnecessarily worried.
The 5 personality traits exist on a continuum rather than as attributes that a person does or
does not have. Each of these 5 traits is made up individual aspects, which can be measured
independently.
The personality traits cannot be studied in isolation. Both positive and negative
associations that these traits imply should be considered. For example, conscientiousness
is necessary for achieving goals through dedication and focus. Conscientious people reach
their goals faster. Conversely, conscientiousness is not very helpful in situations that
require multi-tasking.
Other Personality Traits – Self Variables
In addition to the Big Five, researchers have proposed various other dimensions or traits
of personality. They are called self-variables. People's understanding about themselves is
called self-concept in personality theory and are important self-variables that have
application in organizational behavior. These include self-monitoring, self-esteem, self-
efficacy, etc.
 Self-esteem is the self-perceived competence and self-image. It is related to higher
levels of job satisfaction and performance levels on the job. People with low self-
esteem experience high levels of self-doubt and question their self-worth.
 Self-monitoring is the extent to which a person is capable of monitoring his or her
actions and appearance in social situations.
 Self-efficacy is the belief in one’s abilities that one can perform a specific task
successfully. A person may have high self-efficacy in being successful academically,
but low self-efficacy in relation to his/her ability to fix the car.
Personality thus impacts a person's performance in various dimensions in the workplace.
Not every personality is suited for every job position, so organizations need to carefully
consider personality traits and assign duties/roles accordingly. This can lead to increased
productivity and job satisfaction.
The Personality as a Continuum: is an integrative framework for the interdisciplinary
study of consumer behavior. It is divided into four qualitatively different levels of
personality development that are hierarchically arranged in descending order from highest
to lowest level:

The classification of a person into one of the four ranges of the Personality Continuum
connects the individual to a general pattern of human behavior, a pattern of shopping
behavior, and a pattern of the individual pursuit of self interest that vary qualitatively with
each level of personality development.
Meaning of personality
The word personality is derived from a Greek word “persona” which means “to speak
through.” Personality is the combination of characteristics or qualities that forms a
person’s unique identity. It signifies the role which a person plays in public. Every
individual has a unique, personal and major determinant of his behavior that defines
his/her personality.
Personality trait is basically influenced by two major features −
 Inherited characteristics
 Learned characteristics
Inherited Characteristics
The features an individual acquires from their parents or forefathers, in other words the
gifted features an individual possesses by birth is considered as inherited characteristics. It
consists of the following features −
 Color of a person’s eye
 Religion/Race of a person
 Shape of the nose
 Shape of earlobes
Learned Characteristics
Nobody learns everything by birth. First, our school is our home, then our society,
followed by educational institutes. The characteristics an individual acquires by
observing, practicing, and learning from others and the surroundings is known as learned
characteristics.
Learned characteristics includes the following features −
 Perception − Result of different senses like feeling, hearing etc.
 Values − Influences perception of a situation, decision making process.
 Personality − Patterns of thinking, feeling, understanding and behaving.
 Attitude − Positive or negative attitude like expressing one’s thought.
Traits of Personality
Personality traits are the enduring features that define an individual’s behavior. A
personality trait is a unique feature in an individual. Psychologists resolved that there are
five major personality traits and every individual can be categorized into at least one of
them. These five personality traits are −
 Extrovert
 Neurotic
 Open
 Agreeable
 Conscientious
Major Personality Attributes
Following are the five major personality attributes that influence OB −
Locus of Control
Locus of control is the center of control of an individual’s code of conduct. People can be
grouped into two categories i.e., internals and externals respectively.
People who consider themselves as the masters of their own fates are known as internals,
while, those who affirm that their lives are controlled by outside forces known as
externals.
Before making any decision, internals actively search for information, they are
achievement driven, and want to command their environment. Thus, internals do well on
jobs that craves complex information processing, taking initiative and independent action.
Externals, on the other hand, are more compliant, more willing to follow instructions, so,
they do well in structured, routine jobs.
Machiavellianism
Machiavellianism is being practical, emotionally distant, and believing that ends justify
means.
Machiavellians are always wanting to win and are great persuaders. Here are the
significant features of a high-mach individuals −
 High-Machs prefer precise interactions rather than beating about the bush.
 High-Machs tend to improvise; they do not necessarily abide by rules and regulations
all the time.
 High-Machs get distracted by emotional details that are irrelevant to the outcome of a
project.
Self-esteem
It is the extent up to which people either like or dislike themselves. Self-Esteem is directly
related to the expectations of success and on-the-job satisfaction.
Individuals with high self-esteem think that they have what it takes to succeed. So, they
take more challenges while selecting a job.

On the other hand, individuals with low self-esteem are more susceptible to external
distractions. So, they are more likely to seek the approval of others and to adapt the beliefs
and behaviors of those they respect.
Self-monitoring
Self-monitoring is the capability of regulating one’s behavior according to social
situations. Individuals with high self-monitoring skill easily adjust their behavior
according to external, situational factors. Their impulsive talents allow them to present
public personae which are completely different from their private personalities.
However, people with low self-monitoring skills cannot cover themselves. Regardless of
any situation, they are always themselves. They have an attitude of, “what you see is what
you get.”
Risk taking
Generally, managers are reluctant on taking risks. However, individual risk-taking
inclination affects the bulk of information required by the managers and how long it takes
them to make decisions.
Thus, it is very important to recognize these differences and align risk-taking propensity
with precise job demands that can make sense.
The Johari Window is a framework for understanding conscious and unconscious bias
that can help increase self-awareness and our understanding of others. It is the creation of
two psychologists, Joseph Luft and Harrington Ingham, who named the model by
combining their first names. It is composed of four quadrants in which people using the
framework can identify what they know about themselves and what other people know
about them. This results in four areas of understanding:
Generally, it is believed that we have in a group based on our perception of others. And that is
why to improve communication in a group it is important to develop the perception of an
individual in the group.
Johari window model is based upon two things – to acquire the trust of others by revealing
your information to them and by learning about yourself through feedback by others.
The Johari Window is a model that helps us understand our relationships with ourselves
and others as we interact with them.
In the 1950s, the model was put forward by two American psychologists Joseph Luft and
Harry Ingram, to describe the various stages of awareness that exist while communication
occurs. It’s easy to remember the model’s name since the term “Johari” is a combination
of their two first names.
The Johari Window model diagram literally looks like a window with four quadrants. The
terms used in the diagram go along with the “pane” of window which they represent.

There are four assumptions that we must make when using this diagram:
1. There is information that is known to only me.
2. There is information that is known to only you (or, whoever you’re communicating
with).
3. There is information that is known to you and me.
4. There is information that neither of us know.
Note that the sizes of the window panes can change based on where the information is at
any given point depending on how well you know yourself, and how well others know
you.
1. Arena or Open Area
While you speak with someone, there are things that both you and the person you’re
talking to are aware of. Communication coach Alex Lyon describes this as the “I know,
You know” open area pane.
This includes information about the person such as their attitudes, behaviour, emotions,
feelings, skills and views that are known by the communicator and the person or people
they are talking to.
If you are giving a speech, a panellist introduces your name, title, qualifications, how long
you’ll be speaking for and the subject matter to the crowd. Now each person in the room
(including yourself) is aware of each of these items. These facts are in the open area arena
in the Johari window model.
Feelings and desires can also be collectively known by yourself and others. For example,
if you are sitting in an audience after watching four hours of lectures, everyone in the room
probably knows that lunch is about to be served and there is little attention being paid to
the speaker.
This is the main open area where communication incurs. The larger the open area arena is,
the more effective the communication is; this leads to deeper and more authentic
relationships.
2. Facade
The next panel is the facade or hidden area – items that are known to you but not to others.
Things in this quadrant are attributes and personal details that you know about yourself
that are not known to others.
Depending on the situation, it might be better to reveal things about yourself from the
hidden area to build trust and move the communication window closer to the “open” arena.

To use the example of a speaking engagement, in the introductory remarks of your speech,
you might want to describe something memorable about yourself to build rapport with the
audience. Mentioning a fun fact or talking about a personal hobby that’s related to the
subject of the speech might be a good ice-breaker according to the Johari window model.
Communication coach Alex Lyon says that letting people know you can break down
communication barriers and build stronger relationships, whether that be with an audience
or with a close friend.
By telling the audience about yourself, the Open Arena pane grows, and becomes bigger
than the Facade pane as shown in the image:
Communication coach Alex Lyon says that letting people know you can break down
communication barriers and build stronger relationships, whether that be with an audience
or with a close friend is important in the Johari window model.
3. Blind Spot
The third quadrant of the Johari Window model is the blind spot – things that you are not
aware of but other people can see or understand, this is a barrier to self awareness.
In the example of public speaking, you may develop some physical and unconscious
habits. Things like rubbing your hands through your hair or averting eye contact with the
audience are physiological responses to being nervous. You probably don’t know that
you’re doing these things, meaning you’re in the blind area to them despite that the people
in the crowd can observe you doing them.
One way to correct these unconscious behaviours, in terms of public speaking, is to ask a
colleague or a coach for feedback that helps your own self awareness.
If you have ever travelled to another country, you may have experienced the blind area
firsthand. Living or working in a different cultural setting brings out your blind spot
because it forces you to recognize your everyday habits and expectations. For example, a
businesswoman from New York might not realize how inherently impatient she is until she
travels to Spain, where life is more relaxed and less rushed, this helps people reduce the
size of the blind area.
By understanding yourself better, the Open Arena in the Johari window model will be
wider, as shown in the image:

This happens in everyday conversation. In all of your relationships, people notice things
about your blind area that you probably do not know about yourself. You can use this to
figure out what others think about you, and being open to that feedback can help you
grow. To help reduce your blind spot and improve communication outside of work, you
can ask your friends and family about the characteristics they see in you. Maybe even
make it a game to get them to open up and show them this post about the Johari window
model.
It is important to note that these things can be positive too. If you give a really great
introduction to your presentation, then knowing that is a strength can help you capitalize
on it in the future. Likewise, if a friend tells you that she thinks you’re a very
conscientious worker, then own it and use it to your advantage.
Learning more about yourself helps people to become a more well-rounded person.
4. The Unknown area
The last panel of the Johari Window model occurs when there are things that both you and
others aren’t aware of while you’re speaking to one another.
How do we know this even exists?
Well, information is always waiting to be discovered. We know this because there is
always new information to be learned about ourselves, others, and the world.
For example, two coworkers Eleanor and Jack are talking about where they want to eat
lunch. Eleanor asks, “Jack, do you like Nando’s?” Jack has never eaten at Nando’s, so he
does not know if he likes Nando’s. Nobody knows if Jack likes Nando’s, until Jack
actually tries it.
The key to this is that new experiences teach us things about ourselves and others that
would not have been known otherwise. Breaking into the Unknown area pane of the Johari
Window model can help us get out of our comfort zone and understand the world a bit
better.
It can be a challenge to bring awareness to the emotions, stresses, feelings and thoughts
that exist in the Johari Window unknown quadrant, but it’s not impossible. We’ll look at
some techniques below, using the Johari Window, to promote open communication for
any situation you might find yourself in.
Transactional Analysis
The International Transactional Analysis Association defines TA as, “Transactional
Analysis is a theory of personality and a systematic psychotherapy for personal
growth and personal change.”
Now, before you get flustered with the definition, we’ll simplify the meaning of
Transactional Analysis for you. This is a theory of personality which gives you in-depth

information of why people behave the way they do. Ask yourself, “How many times have
I repeated my behaviors which were not helping me?” For example, shouting at people in
traffic or sulking during an argument. It could also be positive such as being able to face
adversities with greater strength at every point in life. TA thus brings your attention to self
- how you communicate with the world while being aware of how others communicate
with you.
Transactional Analysis includes concepts of the Ego-State Model (Parent-Adult-Child
model), Life Scripts, Strokes, Time Structuring, and more. You understand how you replay
certain patterns as you grow-up to create results you may or may not approve of. You learn
to move away from undesirable behavior.
Key Concepts of Transactional Analysis
Transactional Analysis has its base on the Ego States or the Parent-Adult-Child (PAC)
model.
1. Ego State or the Parent-Adult-Child (PAC) Model
Let’s understand the situation. Emily is married and is often demanding in her relationship.
She is also known to throw a tantrum when things don’t go her way. Emily’s partner
cannot understand her behavior and has quietly put up with her tantrums. Over time, their
relationship turns strained.
Emily here does not operate her thinking as an Adult, displays behaviors learned in her
childhood to make things go her way. Let’s understand the complexity of human behavior
by knowing the PAC model.
a) Parent Ego State
There are moments when you behave in your current state just the way your Parents would
do. The Parent Ego-State is about the behaviors and feelings that were copied from
your parents or from your early caregivers.
In the case of Emily, she would probably be copying her dominant behavior and using it
without consideration towards her partner.
Parents, when in their role, are quite critical in their behavior towards the child. They give
us a set of instructions which may often sound like -
“Don’t do this…”
“Always do this…”
“Be this…”
“Stop doing this…”
Their non-verbal communication may tend to be protective (gestures) or nurturing (hugs).
A person in this Ego-State as an adult may tend to be highly critical, judgmental, often
deciding for others, protective, nurturing, etc.
Transactional Analysis is also useful in the treatment of psychological disorders, is an
important part of counseling, and coaching
b) Adult Ego-State
When a person is in the Adult Ego-State, he/she displays behaviors that are directly
related to the here-and-now situation. The individual is free to choose their response
without being influenced by any other Ego-State. He/she will look for solutions in the
most effective and rational manner without being too emotional about a situation. A
person in the Adult Ego-State is often straightforward in their approach, is interested
in the conversation without being judgmental, and will know how to use logic in
conflicting situations.

A person in this Ego-State tends to question different sides to a situation such as the what
and why, where, and know what he/she sees versus what opinions they hold.
c) Child Ego-State
A person in this Ego-State displays behaviors, feelings or may think about situations while
being influenced by their thoughts as replayed in childhood. Emily’s sulking would be
influenced by her Child Ego-State wherein her reaction is influenced by emotions that are
driven through past behavior. If you had to ask Emily, “Does this situation resonate with
something in your childhood?” Emily would have answered, “Yes, every time I wanted
my mother’s attention, I used to throw my toys and sulk.”
A person in this Ego-State may display rebellion, delight, whining, sulking, panic, fear, or
even a lot of laughter.
A person is never consciously aware of their Ego-States. Every person re-experiences a
part of the Parent Ego-State or the Child Ego-State to base their communication in the
present situation.
Had Emily to use her Adult Ego-State, she could have thought, “Oh! I must not get angry
but work on finding a solution. What is truly making me angry though?”
Eric Berne outlines the presence of each Ego-State in daily life. A person will always find
the use of traffic rules for instance as highly beneficial in life. These are derived from the
Parent Ego-State. The Child Ego-State is beneficial to keep one’s creativity and intuitive
skills active. An Adult Ego-State helps one to make decisions based in the present moment
to resolve problems with greater accuracy without displaying any influenced behaviors
from other Ego States.
Definition of Ego-States by Eric Berne:
A consistent pattern of feeling and experience directly related to a corresponding
consistent pattern of behavior.
2. Life Positions
Eric Berne highlighted that a person’s life and its results are pre-decided based on the first
5 years of a person’s life. You may wonder how can a person base their life story on
something that happened way back in growing-up years?
Life Positions is thus an interesting theory that brings attention to our psychological
patterns of thinking, feeling, and behaving. Our decisions are based on the responses we
receive from parents or parental figures. These form convictions about the self and the
world. A child tends to make this decision early on based on messages which may be
verbal on non-verbal that are received during the early years. However, Life Positions are
not permanent and can be altered through counseling or therapy, helping a person
free themselves from self-limiting beliefs to embrace a new life story for themselves.
The Life Convictions formed are as follows:
1. I am OK
2. I’m not OK
3. You’re OK
4. You’re not OK
Berne combined thes et of form 4 Life Positions as follows:
a) I’m Ok, you’re Ok
This is often defined as a winning Life Script. Here, a child is comfortable with self and
the world. He/she knows they are lovable and will grow up to trust others, have long-
lasting meaningful relationships. They have a good attitude and give and receive trust.
b) I’m not Ok, you’re Ok

A child here often considers themselves on the losing end. They firmly believe in this and
create life stories that bring more misery. An individual feels the need to please others
while feeling victimized. They often show more support to other people’s strength instead
of their own.
c) I’m Ok, you’re not Ok
An infant grows up thinking he/she is above the others. Such a child becomes an adult
focused on his own ‘wants’ while stepping over others. This adult may tend to project their
problems on others, and play the blame-game. A person like this always makes others feel
inferior while feeling ‘okay’ about themselves.
d) I’m not OK, you’re not OK
When a child decides this Life Position, the child has an internal struggle with self and the
world as well. They end up creating a life of misery while not believing in self and taking
decisions that put them in the spot of being a victim. A person feels frustrated and
hopeless. Such a person may withdraw or even injure themselves.
These positions represent a specific stance taken by an individual that is all about how
he/she perceives self and others.
The Philosophy of Transactional Analysis mentions:
People are OK.
Everyone has the capacity to think.
People decide their own destiny, and these decisions can be changed.
3) Life Scripts
Transactional Analysis outlines each person has already written their life story or a script
based on many things such as the Life Positions. Berne highlights that this begins from the
day one is born. Every individual has a beginning, a middle and an end - just the script
you’d notice in a movie. Here, you are the Director and the scriptwriter and you define
your ending without your conscious knowledge.
First developed by Eric Berne and then worked upon by Claude Steiner, a Life Script
is a plan that is influenced by the people one grows up with. A child observes and
prepares this Life Plan based on external influences as well as what happens internally. A
parent gives messages to a child such as, “The world is not safe.” A child grows up
thinking, “ I shouldn’t trust anybody.” It’s important to note how two children may
interpret the same messages through their own understanding.
An infant or a child interprets certain parental messages in their own way. Being ignored
by a mother in the early age may lead to the infant growing up to distrust women or people
in general. A person may decide, “I am a loser” after being put down frequently by his
class teacher.
Learning Transactional Analysis works to change your core limiting beliefs to modify and
create a winning Life Script.
4) Transactions and Strokes
Eric Berne referred to transactions as the ‘basic unit of social discourse.’
Transactions are of many types.
For example, you greet a colleague with a ‘hello’ and get a ‘how are you’ as a response.
When you continue a conversation, you receive a series of transactions. Transactions can
be complementary, crossed, ulterior, and angular ulterior. They can occur between
different Ego-states.
An individual can observe their communication which includes verbal, non-verbal gestures
and body language to identify problems in their transactions. A Transactional Analyst is

able to rectify and modify a client’s approach to communication to create better results in
life.
Berne defined Strokes as a ‘unit of recognition.’ You exchange a stroke when you say a
friendly greeting and receive one in response. However, a person who does not receive a
stroke in return may feel deprived as mentioned by Berne. A person’s hunger for Strokes
begins at an early age. For example, a baby longs to be held and in physical contact with
their parents. However, a baby deprived of the same will grow up to experience emotional
difficulties and problems.
Attitude: Definition, Nature and Characteristics
An attitude is a positive, negative, or mixed evaluation of an object expressed at some
level of intensity. It is an expression of a favorable or unfavorable evaluation of a person,
place, thing, or event. These are fundamental determinants of our perceptions of and
actions toward all aspects of our social environment. Attitudes involve a complex
organization of evaluative beliefs, feelings, and tendencies toward certain actions.
How much we like or dislike something that determines our behavior towards that thing.
We tend to approach, seek out, or be associated with things we like; we avoid, shun, or
reject things we do not like.
Some examples of attitudes are- he has a positive attitude about the changes, she is
friendly and has a good attitude, he was showing some attitude during practice today, so
the coach benched him, I like my friends that means I am expressing my attitudes towards
my friends, etc.
Definition of Attitude
Attitude is the manner, disposition, feeling, and position about a person or thing, tendency,
or orientation, especially in mind.
According to Gordon Allport, “An attitude is a mental and neural state of readiness,
organized through experience, exerting a directive or dynamic influence upon the
individual’s response to all objects and situations with which it is related.”
Frank Freeman said, “An attitude is a dispositional readiness to respond to certain
institutions, persons or objects in a consistent manner which has been learned and has
become one’s typical mode of response.”
Thurstone said, “An attitude denotes the total of man’s inclinations and feelings, prejudice
or bias, preconceived notions, ideas, fears, threats, and other any specific topic.”
Anastasi defined attitude as “A tendency to react favorably or unfavorably towards a
designated class of stimuli, such as a national or racial group, a custom or an institution.”
According to N.L. Munn, “Attitudes are learned predispositions towards aspects of our
environment. They may be positively or negatively directed towards certain people,
service, or institution.”
“Attitudes are an ‘individual’s enduring favorable or unfavorable evaluations, emotional
feelings, and action tendencies toward some object or idea.” — David Krech, Richard S.
Crutchfield, and Egerton L. Ballackey.
“Attitude can be described as a learned predisposition to respond in a consistently
favorable or unfavorable manner for a given object.” — Martin Fishbein and Icek Ajzen.
“An attitude is a relatively enduring organization of beliefs around an object or situation
predisposing one to respond in some preferential manner.” — Milton Rokeach.
Characteristics of Attitude
Attitude can be described as a tendency to react positively or negatively to a person or
circumstances.

Thus the two main elements of attitude are this tendency or predisposition and the
direction of this predisposition.
It has been defined as a mental state of readiness, organized through experience, which
exerts a directive or dynamic influence on the responses.
These can also be explicit and implicit.
Explicit attitudes are those that we are consciously aware of and that clearly influences our
behaviors and beliefs. Implicit attitudes are unconscious but still affect our beliefs and
behaviors.
Psychologists Thomas, which imposes limits as a level attitude trend, is positive and
negative, associated with psychology.
Object psychology here includes symbols, words, slogans, people, institutions, ideas, etc.
Characteristics of Attitude are;
1. Attitudes are the complex combination of things we call personality, beliefs, values,
behaviors, and motivations.
2. It can fall anywhere along a continuum from very favorable to very unfavorable.
3. All people, irrespective of their status or intelligence, hold attitudes.
4. An attitude exists in every person’s mind. It helps to define our identity, guide our
actions, and influence how we judge people.
5. Although the feeling and belief components of attitude are internal to a person, we can
view a person’s attitude from their resulting behavior.
6. Attitude helps us define how we see situations and define how we behave toward the
situation or object.
7. It provides us with internal cognitions or beliefs and thoughts about people and objects.
8. It can also be explicit and implicit. Explicit attitude is those that we are consciously
aware of an implicit attitude is unconscious, but still, affect our behaviors.
9. Attitudes cause us to behave in a particular way toward an object or person.
10. An attitude is a summary of a person’s experience; thus, an attitude is grounded in
direct experience predicts future behavior more accurately.
11. It includes certain aspects of personality as interests, appreciation, and social conduct.
12. It indicates the total of a man’s inclinations and feelings.
13. An attitude is a point of view, substantiated or otherwise, true or false, which one holds
towards an idea, object, or person.
14. It has aspects such as direction, intensity, generality, or specificity.
15. It refers to one’s readiness for doing Work.
16. It may be positive or negative and may be affected by age, position, and education.
Attitude may be defined as a feeling or disposition to favor or be against objects, persons,
and situations.
It is a well-defined object of reference. It may be defined as ‘an enduring predisposition or
readiness to react or behave in a particular manner to a given object or situation, idea,
material, or person.’
It describes and evaluates an object or a situation, with each belief having a cognitive
effect and behavioral components.
Each of these beliefs is a predisposition that results in some preferential response towards
the object or the situation.
Actually, it is frequently used in describing people and explaining their behavior.
For example:-
“I like her attitude,” “He has a good attitude,” etc. Actually, it is characterized by the
tendency to feel and behave in a particular way toward some object.
Components of Attitude
Attitudes are simply expressions of much we like or dislike various things. Attitudes
represent our evaluations, preferences, or rejections based on the information we receive.
By attitudes, we mean the beliefs, feelings, and action tendencies of individuals or
individuals towards objects, ideas, and people.
Attitudes involve some knowledge of a situation.
However, the essential aspect of the attitude is found in the fact that some characteristic
feeling or emotion is experienced and, as we would accordingly expect, some definite
tendency to action is associated.
Subjectively, then, the important factor is the feeling or emotion.
Many different factors can influence how and why attitudes form. These are-
 Social Factors.
 Direct Instruction.
 Family.
 Prejudices.
 Personal Experience.
 Media.
 Educational and Religious Institutions.
 Physical Factors.
 Economic Status and Occupations.
Types of Attitudes
Attitude is something that lies between emotions and thinks processing. It may be positive
or negative.
In organizational behavior; 3 types of attitudes are;
1. Job Satisfaction,
2. Job Involvement and
3. Organizational Commitment.
Functions of Attitudes
The most important function of an attitude can only be ascertained by considering it
concerning the person who holds it and the environment in which they operate.
Dimensions Of Attitude:
1. Strength Of Attitude
Some Attitudes Are Strong While Some Attitudes Are Weak. The Strength With
Which An Attitude Is Held Is Often A Good Predictor Of Behavior. The Stronger
The Attitude The More Likely It Should Affect Behavior.For Example, Consider
That Muthu From Tamil Nadu As Well As Rahul From Uttar Pradesh Like The
Tamil Film Actor Rajnikanth. However, The Strength Of The Positive Attitude
Of Muthu May Be Very High (10/10 If Rated On A Scale). Rahul, Even Though
Likes Rajnikanth, His Positive Attitude’s Strength May Not Match The Strength
Of The Attitude Of Muthu (6/10, If Rated On A Scale).
The Very Strong Attitude Of Muthu May Get Directly Expressed In His Behavior
In The Form Of Hero-Worship, Intolerance Of Any Negative Comments, An
Extreme Expression Of Emotions Etc. However, Even Though Rahul Has A
Positive Attitude Towards The Film Actor, As His Attitude Is Not As Strong As
Muthu, He May Not Exhibit Strong Behavior As Muthu.

2. Accessibility Of AttitudeThe Accessibility Of An Attitude Refers To The Ease
With Which It Comes To Mind. In General, Highly Accessible Attitudes Tend To
Be Stronger.
3. Attitude Ambivalence
The Ambivalence Of An Attitude Refers To The Ratio Of Positive And Negative
Evaluations That Make Up That Attitude. The Ambivalence Of An Attitude
Increases As The Positive And Negative Evaluations Get More And More Equal.
The One-Dimensional View – It Postulates That The Positive And Negative
Elements Are Stored At Opposite Ends Of A Single Dimension. According To
This One-Dimensional Perspective, The Positive And Negative Elements Are At
Opposite Ends Of A Single Dimension, And People Tend To Experience Either
End Of The Dimension Or A Location In Between.
The Two-Dimensional View – It Postulates That Positive And Negative Elements
Are Stored Along Two Separate Dimensions. If This View Is Correct, Then
People
Job Satisfaction or employee satisfaction is a measure of workers' contentedness with
their job, whether they like the job or individual aspects or facets of jobs, such as nature of
work or supervision.[1] Job satisfaction can be measured in cognitive (evaluative), affective
(or emotional), and behavioral components. [2] Researchers have also noted that job
satisfaction measures vary in the extent to which they measure feelings about the job
(affective job satisfaction).[3] or cognitions about the job (cognitive job satisfaction).[4]
One of the most widely used definitions in organizational research is that of Edwin A.
Locke (1976), who defines job satisfaction as "a pleasurable or positive emotional state
resulting from the appraisal of one's job or job experiences" (p. 1304).[5] Others have
defined it as simply how content an individual is with his or her job; whether he or she
likes the job.[6]
It is assessed at both the global level (whether the individual is satisfied with the job
overall), or at the facet level (whether the individual is satisfied with different aspects of
the job).[1] Spector (1997)[1] lists 14 common facets: appreciation, communication,
coworkers, fringe benefits, Job conditions, nature of the work, organization, personal
growth, policies and procedures, promotion opportunities, recognition, security, and
supervision.
Definition of Job Satisfaction
Due to the popularity of job satisfaction within the field of occupational and organizational
psychology, various researchers and practitioners have provided their definitions of what
job satisfaction is.
E. A. Locke describe job satisfaction as, “the pleasurable emotional state resulting from
the appraisal of one’s job as achieving or facilitating the achievement of one’s job values”
According to P. E. Spector, “Job satisfaction is the extent to which people like or dislike
their jobs”.
De Nobile defined job satisfaction as “the extent to which a staff member has favorable or
positive feelings about work or the work environment.”

Davis, Newstrom, and Dessler describe job satisfaction as “a set of favorable or
unfavorable feelings for the employees to perceive their work and that determine the
possibility of a major disposition to achieve higher performance”.
According to S.P. Robbins, “Job satisfaction refers to an individual’s general attitude

toward his or her job.”
Job satisfaction may be defined in many different ways.
Some believe it is simply how content an individual is with his or her job, in other words,
whether or not they like the job or individual aspects or facets of jobs, such as the nature of
work or supervision.
Importance of Job Satisfaction
Job satisfaction has been linked to many variables, including productivity, absenteeism,
turnover, etc. It is significant because a person’s attitude and beliefs may affect his or her
behavior.
High job satisfaction may lead to improving productivity, decreased turnover, and improve
attendance, reduce accidents, less job stress and less unionization.
If employees feel that their jobs are fun and interesting, they will be more willing to give
extra effort to work.
Factors Affecting Job Satisfaction Level
No doubt, job satisfaction is a big factor in employee engagement and the level of
discretionary effort team members are likely to make.
Job satisfaction depends on several different factors such as satisfaction with pay,
promotion opportunities, fringe benefits, job security, relationship with co-workers and
supervisors, etc.
Organizational Commitment
Organizational Commitment Is Defined As A View Of An Organization’s Member’s

Psychology Towards His/Her Attachment To The Organization That He/She Is Working
For. Organizational Commitment Plays A Pivotal Role In Determining Whether An
Employee Will Stay With The Organization For A Longer Period Of Time And Work
Passionately Towards Achieving The Organization’s Goal.
If An Organizational Commitment Is Determined It Helps Predict Employee

Satisfaction, Employee Engagement, Distribution Of Leadership, Job Performance, Job
Insecurity, And Similar Such Attributes. An Employee’s Level Of Commitment Towards
His/Her Work Is Important To Know From A Management’s Point Of View To Be Able
To Know Their Dedication To The Tasks Assigned To Them On A Daily Basis.
Theory of organizational commitment
A distinguished theory in organizational commitment is the Three-Component Model

(TCM). According to this theory, there are three distinct components of organizational
commitment:
1. Affective commitment: This is the emotional attachment an employee has towards the
organization. This part of TCM says that an employee has a high level of active
commitment, then the chances of an employee staying with the organization for long are
high. Active commitment also means, an employee is not only happy but also engaged in
the organizational activities like, participation in discussions and meetings, giving valuable
inputs or suggestions that will help the organization, proactive work ethics, etc.
2. Continuance commitment: This is the level of commitment where an employee would
think that leaving an organization would be costly. When an employee has a continuance
in commitment level, they want to stay in the organization for a longer period of time
because they feel they must stay because they have already invested enough energy and
feel attached to the organization – attachment that is both mental and emotional. For
example, a person over a period of time tends to develop an attachment to his/her
workplace and this may be one of the reasons why an employee wouldn’t want to quit
because they are emotionally invested.
3. Normative commitment: This is the level of commitment where an employee feels
obligated to stay in the organization, where they feel, staying in the organization is the
right thing to do. What are the factors that lead up to this type of commitment? Is it a
moral obligation where they want to stay because someone else believes in them? Or is it
that they feel that they have been treated fairly here and that they do not wish to take the
chance of leaving the organization and finding themselves in between the devil and the
deep sea? This is a situation where they believe they ought to stay.
Key benefits and advantages of organizational commitment
Since organizational commitment determines how long employees will stay with your
organization, committed employees are any and every organization’s assets. Some of the
key benefits and advantages of organizational commitment are as follows:
1. High employee productivity

Committed employees are highly productive. They believe in the organization, its goals,
vision, mission, and the leadership team. These employees not only demonstrate high
levels of productivity, but they also ensure their colleagues and team members too display
the same.
2. Reduced absenteeism
A committed and motivated staff will report much lesser absenteeism than their peers.
Committed employees look forward to going to work, completing their work, helping out
projects, and contributing toward organizational goals.

3. Excellent team players
Since dedicated employees are heavily invested in the organization, and it’s success, they
are great at collaborating with, and working in teams. They contribute significantly to
boosting the team’s productivity.
4. Strong advocates
Dedicated and committed employees believe in their organization, and hence, are effective
and positive advocates of their employers. They are strong believers and supporters of
their employer’s products, services, and policies.
How to improve organizational commitment?
High levels of organizational commitments are related to superior business performance,

increased profitability, improved productivity, employee retention, customer satisfaction
metrics, reduced customer churn, and above all improving the workplace culture. That’s
the level of commitment an organization would expect from its employees. But how do we
get there?
Here are some tips to improve organizational commitment:
1. Create a strong teamwork culture

Building a strong teamwork culture facilitates a healthy work environment. No two
employees in an organization can be exactly the same. When people come from different
backgrounds, there will be differences in the way they see and perceive things and the
same holds true when people work in a team. However, if an organization promotes a
culture of team building, employees will be motivated to work together and achieve more.
This will help boost their commitment levels and create a long-term work culture
harmony.
2. Communicate clear goals and expectation to the employees

Most employees want to be a part of an irresistible future, they want to know what is most
important in their job and how can they achieve excellence in their job. For objectives to
have meaning and be effective, employees should be communicated clearly the goals and
expectations of the management. Employees, when they feel a sense of ownership tend to
stay longer with an organization.
3. Be transparent and encourage open communication

Let employees be participative in what is happening within the organization, as well as
how they can contribute more towards the development of the organization. When an
organization is transparent with its employees and shares numbers and figures with them,
they are greater chances that employees feel valued and increased sense of belonging.
Thus, improving the performance of employees through transparency.

4. Maintain work ethics
Employees would want to feel good about the organization they are working with. Having
high standards of work ethics makes employees feel motivated and respectful towards the
organization. When employees know that an organization has high morals, they stay
associated with the organization. Good work ethics assures any employee, that they have
an equal playing field in the organization to perform and to grow their careers.
5. Foster a positive work culture

Positive work culture is where employees feel happy to be a part of the organization,
where they feel motivated and encouraged to share new ideas and facilitate
communication with the management without having the fear of being misunderstood.
Encourage employees to find a personal fit with the organization’s culture.
6. Develop trust
When employees start developing trust among themselves as well as leadership, it is a
positive sign of organizational development. Employees constantly watch the
organization’s leadership for motivation and example, learn decision-making skills, and
how it helps strategic changes within the organization and if their behavior reflects what
they say.
7. Encourage innovation
Innovation is one of the bests ways of encouraging employees. When an employee has an
idea of doing things differently and in a better way, do not discourage them, on the
contrary, motivate them to come up with more good ideas.
8. Provide constructive feedback and not criticism

Employees should be provided with constructive feedback whenever needed. They should
be appreciated for what they are doing good which will help them raise their morale. Tell
employees when they are wrong, but do more- tell them why it’s wrong and above all-
how to do better. There is a difference between criticism and constructive feedback.
Criticism only tells what’s wrong, constructive feedback tells you what is wrong, why is it
wrong, and how to get it right!
9. Efficiently delegate tasks

An organization that functions efficiently knows the art of delegating tasks. One should
understand not all work can be done by one single person, there are dedicated resources in
an organization to carry out particular tasks. When the work has efficiently distributed no
one, in particular, is burdened.
10. Offer incentives

When an employee performs exceptionally well, organizations need to value his/her
contribution. In such cases, it is a good idea to offer incentives to the employee to
recognize his/her good work and dedication. If the organization wants employees to have
sufficient work commitments it is essential that management rewards them appropriately
as different things motivate different people.
Satisfied and engaged employees are an asset to any organization. It is important to value
people who show dedication and commitment to the organization. Organizations need to
dig deeper and find the root cause of issues faced by their employees and take timely
actions to reduce employee turnover.
Motivation is a complex phenomenon. Several theories attempt to explain how motivation

works. In management circles, probably the most popular explanations of motivation are
based on the needs of the individual.
The basic needs model, referred to as content theory of motivation, highlights the specific
factors that motivate an individual. Although these factors are found within an individual,
things outside the individual can affect him or her as well.
In short, all people have needs that they want satisfied. Some are primary needs, such as
those for food, sleep, and water—needs that deal with the physical aspects of behavior and
are considered unlearned. These needs are biological in nature and relatively stable. Their
influences on behavior are usually obvious and hence easy to identify.
Secondary needs, on the other hand, are psychological, which means that they are learned
primarily through experience. These needs vary significantly by culture and by individual.
Secondary needs consist of internal states, such as the desire for power, achievement, and
love. Identifying and interpreting these needs is more difficult because they are
demonstrated in a variety of ways. Secondary needs are responsible for most of the
behavior that a supervisor is concerned with and for the rewards a person seeks in an
organization.
Abraham Maslow's hierarchy of needs theory

Several theorists, including Abraham Maslow, Frederick Herzberg, David McClelland,
and Clayton Alderfer, have provided theories to help explain needs as a source of
motivation.
Abraham Maslow defined need as a physiological or psychological deficiency that a

person feels the compulsion to satisfy. This need can create tensions that can influence a
person's work attitudes and behaviors. Maslow formed a theory based on his definition of
need that proposes that humans are motivated by multiple needs and that these needs exist
in a hierarchical order. His premise is that only an unsatisfied need can influence behavior;
a satisfied need is not a motivator.
Maslow's theory is based on the following two principles:
 Deficit principle: A satisfied need no longer motivates behavior because people act to
satisfy deprived needs.
 Progression principle: The five needs he identified exist in a hierarchy, which means
that a need at any level only comes into play after a lower ‐level need has been
satisfied.
Motivation Process in Management and Organizational Behavior
The motivation process progresses through a series of discrete steps. Needs/motives are
the starting point of motivation.

An unsatisfied need creates tension that stimulates drives within the individual.
These drives generate a search behavior to achieve particular goals that will satisfy the
need and lead to a reduction of tension.
The action taken by the individual will lead to the reward/goal which satisfies the need and
reduces tension.
No matter which theory of motivation the manager is following, the process is always
similar.
The motivation process is presented in the following diagram;
Employee motivation is of crucial concern to management; mainly because of the role

that
employee motivation plays in performance.
5 Steps of Motivation Process
1. Identify Unsatisfied Needs and Motives.

2. Tension.
3. Action to satisfy needs and motives.
4. Goal accomplishment.
5. Feedback.
Steps of motivation process explained below;
1. Identify Unsatisfied Needs and Motives
The first process of motivation involves unsatisfied needs and motives. Unsatisfied needs
activated by internal stimuli such as hunger and thirst.
They can also be activated by external stimuli such as advertisement and window display.
2. Tension
Unsatisfied needs to create tension in the individual. Such tension can be physical,
psychological, and sociological. In this situation, people try to develop objects that will
satisfy their needs.
3. Action to satisfy needs and motives
Such tension creates a strong internal stimulus that calls for action. The individual engages
in activities to satisfy needs and motives for tension reduction.

For this purpose, alternatives are searches and choice are made, the action can be hard
work for earning more money.
4. Goal accomplishment
Action to satisfy needs and motives accomplishes goals. It can be achieved through reward
and punishment. When actions are carried out as per the tensions, then people are
rewarded others are punished. Ultimately goals are accomplished.
5. Feedback
Feedback provides information for revision or improvement or modification of needs as

needed. Depending on how well the goal is accomplished their needs and motives are
modified.
Drastic changes in environment necessitate the revision and modification of needs.

Usually, performance is determined by;
1. ability,
2. environment and
3. motivation.
If any of these three factors is missing or deficient, effective performance is impossible.
A manager may have the most highly qualified employees under him and provide them
with the best possible environment, but effective performance will not result unless the
subordinates are motivated to perform well.
Therefore, management can do its job effectively only through motivating employees to
work for the accomplishment of organizational objectives.
Perception
A person's mental image of the world. What you think IS (as opposed to "should be
The Perceptual Process
Two key elements: attention and organization
Attention
In any situation we only pay attention to a few things. Your mind unconsciously filters out
most of what is going on around you. At some level, you mind is probably aware of a lot
of things. Think about the people sitting next to you in a class. What are they wearing?
What movements are they making (are they breathing?)? What do all the chairs look like?
What's on the walls? What sounds are coming from outside? You're not really aware of all
those things. Consider your own body. Are you aware of your pulse, breathing, feel of the
chair under you, the feeling of your clothes on your body?
How come my dog doesn't wake up if I start petting her while she's asleep, but if a car
drives into the driveway she goes from sleeping to barking in less than a second? Her mind
is filtering things.
So what does grab your attention?
 loud sounds: That's the principle behind fire alarms and telephones and alarm clocks
 bright lights and colors
 movement

 What else determines what you will attend to?
 context: at meal time, every one of my movements triggers a huge reaction in the dogs
 training:
o police trained to spot certain things in cars or in people's behavior
o psychologists wait for certain comments, or signs of certain problems
o doctors run through whole laundry list of deviations from health state
Organization
Even when you do become aware of these things, there is considerable pre-processing that
is done by brain before it reaches your consciousness. If you are watching a professor in
class, do you see him or her raising and lowering his arm in front of the blackboard, or do
you see him writing on the blackboard? We see the world in terms of meaningful,
functional units, not simple movements. When my mouth is moving and sounds are
coming out, I am speaking.
Animal perception is not like computer/machine perception. There is filtering and meaning
all the way down to the simplest level. It is not like the eye is a video camera, and the
brain then makes sense of the images. Instead, even the eye filters things.
Perception is affected by knowledge -- by what the brain already knows. Knowledge is

itself organized. For example, similar things are stored together.
The mind also creates schemas, frames and scripts. After going to enough restaurants, you
learn the pattern of how things go:
1. stop just the door and wait for someone to greet you
2. you tell them how many in your party
3. may be asked if smoking or non-smoking
4. follow person to table
5. if fancy restaurant allow waiter to pull out seat for your, push it back in, lay napkin on
lap . Etc.
All situations have behavioral norms that get internalized by participants so that they know
what to expect. This is turn determines what they find to be unusual or special. For
example, a person screaming and rolling on the floor is not a big deal in a mental ward, but
it would be highly noticeable in a classroom.
It's not just behavior its presence and absence of features: types of clothing, such as
uniforms on waitresses in cocktail bars, color of walls in schools, size of hallways, sliding
doors to porches, swinging doors for kitchens etc.
Some schemas are cultural -- you learn them from others, from books, TV, institutions.
Others are experiential -- from mundane, what happens at restaurants, to how to have a
romantic relationship.

Perceptual Distortions
The fact that mind stores information in schemas which in turn are built from experience
means that you can comprehend and recall situations extremely well. For example, one
glance at a new restaurant and you understand the whole layout, because you understand
restaurants in general. Another example is language acquisition by children.
But schemas are also a source of errors, in particular false recalls of usual events and
omission of unusual ones. Two interesting papers you can read:
 Freeman, Romney and Freeman. 1987. "Cognitive Structure and Informant

Accuracy." American Anthropologist 89:310-325.
 Shweder, R.A. and R.G. D'Andrade. 1980. "The Systematic Distortion
Hypothesis." New Directions for Methodology of Social and Behavioral Sciences.
4:37-58.
Schemas also facilitate and hinder learning. For example, experiments show that people
have trouble memorizing who is friends with whom in a group unless the friendships are
transitive: that is, if A is friends with B, and B is friends with C, then it is also true that A
is friends with C.
Stereotypes are a kind of schema that often have problematic consequences in terms of
justice. In the past women were seen as too flighty and flaky to be entrusted with voting,
so they were not allowed to vote. Blacks are often seen as dumb, violent and lazy. Men are
often seen as aggressive, competitive and sexual predators. The consequences of these
stereotypes, besides the obvious, is that stories about individuals are often judged as true
simply because they fit preconceptions about the class. For example, it is easy for people
to believe that a crime was caused by a black man. Similarly, accusations of sexual
harassment tend to stick even without evidence because people believe that "men are like
that".
Another interesting phenomenon is the halo effect. This is where one characteristic of
something or someone affects perception of all the other characteristics. For example, if
medical doctors are often asked their opinion about financial matters. Consumers often
buy a product because it is by a company that makes other products they like.
A curious characteristic of human thinking processes is projection. This is where you

perceive others in ways that really reflect yourself. For example, dishonest people tend to
see dishonesty in others.
Attribution
Attribution refers to how people in situations like the workplace construct explanations of
other people's behavior. People are not exactly rocket scientists: these explanations can be
highly simplified and strongly biased. What is interesting and helpful is that people's
biases tend to be systematic and predictable.

For example, people tend to overestimate personal/individual causes (abilities, motives,
morals) and tend to underestimate situational causes, like nature of the job, compensation
system, the economy, luck, the percentage of the population who are young. For example,
people attribute the state of the economy to the President. But scientific work on the topic
suggests that Presidents have little effect on the economies during their tenure (but can
have big effects on the economy years later).
Another kind of bias occurs with the nature of a person's participation in a situation, and
how it comes out. For example, if a student gets an A on a test, the student thinks it was
because he or she is so smart. But if they get an F, it's because the teacher is a jerk, or the
book is lousy, or some other reason. In general, people seem to think this way:
 if my outcome is good (I become president of company), I'm responsible for it (my

hard work, my brains)
 if my outcome is bad (I'm homeless), it's society's fault: I'm just a victim
Another basic principle is that people tend to attribute motives to people's behavior. So
when people don't behave as you expect them to, you think they are doing it on purpose
(usually, just to annoy you). In other words, people tend to assume a common
understanding of a situation, but different motives and interests. They also tend to assume
that other people do everything consciously: no oversight is truly an oversight, no
inconsiderate action was just thoughtless.
Work Motivation
In an attempt to understand the concept of motivation and highlight its complexity, several
definitions have been offered. Atkinson (1964) defines motivation as “the contemporary
(immediate) influence on direction, vigour, and persistence of action”, while Vroom
(1964) defines it as “a process governing choice made by persons among alternative forms
of voluntary activity”. Campbell and Pritchard (1976) suggest that “motivation has to do
with a set of independent/ dependent variable relationships that explain the direction,
amplitude, and persistence of an individual’s behaviour, holding constant the effects of
aptitude, skill, and understanding of the task, and the constraints operating in the
environment”. Kanfer (1990) describes motivation as “a set of psychological processes
involved with the arousal, direction, intensity, and persistence of voluntary actions that are
goal directed”.
All definitions appear to have four common denominators which may be said to characterise the
phenomenon of motivation. That is, when we discuss motivation, we are primarily
concerned with:
1) Activation of behaviour – It has to do with the drive or energy behind our actions and is
demonstrated by the arousal of goal-directed behaviour.
2) Direction of behaviour – It is concerned with the paths people choose toward meeting their
goals and is seen by the regulation of behaviour toward specific goals.
3) Activation of behaviour – It has to do with the drive or energy behind our actions and is
demonstrated by the arousal of goal-directed behaviour.
4) Direction of behaviour – It is concerned with the paths people choose toward meetingtheir
goals and is seen by the regulation of behaviour toward specific goals.
Characteristics of Work Motivation
From a review of motivational definitions, several characteristics of work motivation can be
identified:
1) Motivation is an individual psychological phenomenon that allows for a person’s
uniqueness to be demonstrated at the workplace.
2) It is assumed to be under the person’s control. Behaviours that are influenced by
motivation, such as effort expended, are seen as purposive rather than random.
3) The direction of a person’s behaviour toward organisational goals is determined by
work motivation.
4) It describes concerted effort often in the face of obstacles until the goal is accomplished.
5) It leads individuals to invest greater cognitive effort to enhance both the quality and
quantity of work performance.
6) It is distinct from performance; other factors besides motivation (e.g., ability and task
difficulty) influence performance.
7) It is multifaceted. People may have several different motives operating at once.
Sometimes, these motives may conflict with one another.
Process of Motivation
Motivation as a process starts with a physiological or psychological deficiency or need that
activates behaviour or a drive that is aimed at a goal or incentive. Thus motivation
consists of three interacting and interdependent elements:
1) Needs – Needs are created whenever there is a physiological or psychological imbalance.
For example, a need exists when cells in the body are deprived of food and water or when
a person is deprived of friends and other companions. Although psychological needs may
be based on a deficiency, sometimes they are not. For example, an individual with a
strong need to get ahead may have a history of consistent success.
2) Drives – Drives are set up to alleviate needs. They are action-oriented and provide an
energising thrust toward achieving a certain goal or accomplishing a certain task. Needs for
food and water are translated into the hunger and thirst drives, and the need for friends
becomes a drive for affiliation.
3) Incentives – Incentive is anything that can mitigate a need and decrease the intensity of
the drive. Thus attaining an incentive tends to restore physiological or psychological
balance and reduces the drive. Eating food, drinking water and obtaining friends will tend
to restore the balance and reduce the corresponding drives. Food, water and friends are the
incentives in these examples.
What you’ll learn to do: Describe various theories of motivation
We talked a little bit about what motivation is and what it looks like within an
organization. To do that, we used Victor Vroom’s expectancy framework, a model that
attempts to dissect and explain employee performance by distilling it down to its most
basic level.
The expectancy framework is just one of many models that have been developed over the
years. Since the industrial age, scientists have been examining what motivates people to
perform in employment situations. None of them have it all wrong, but none of them have
it all right. They’ll continue to try, we’re sure, because a lot is at stake for organizations,
and situations change every day.
In this unit, we’re going to take a look back at how we got to where we are now, and how
we can apply that today, domestically and abroad.
The Hawthorne Effect
During the 1920s, a series of studies that marked a change in the direction of motivational
and managerial theory was conducted by Elton Mayo on workers at the Hawthorne plant
of the Western Electric Company in Illinois. Previous studies, in particular Frederick
Taylor’s work, took a “man as machine” view and focused on ways of improving
individual performance. Hawthorne, however, set the individual in a social context,
arguing that employees’ performance is influenced by work surroundings and coworkers
as much as by employee ability and skill. The Hawthorne studies are credited with
focusing managerial strategy on the socio-psychological aspects of human behavior in
organizations.
The following video from the AT&T archives contains interviews with individuals who
participated in these studies. It provides insight into the way the studies were conducted
and how they changed employers’ views on worker motivation.
The studies originally looked into the effects of physical conditions on productivity and
whether workers were more responsive and worked more efficiently under certain
environmental conditions, such as improved lighting. The results were surprising: Mayo
found that workers were more responsive to social factors—such as their manager and
coworkers—than the factors (lighting, etc.) the researchers set out to investigate. In fact,
worker productivity improved when the lights were dimmed again and when everything
had been returned to the way it was before the experiment began, productivity at the
factory was at its highest level and absenteeism had plummeted.
What happened was Mayo discovered that workers were highly responsive to additional
attention from their managers and the feeling that their managers actually cared about and
were interested in their work. The studies also found that although financial incentives are
important drivers of worker productivity, social factors are equally important.
Practice Question
https://assessments.lumenlearning.com/assessments/13691
There were a number of other experiments conducted in the Hawthorne studies, including
one in which two women were chosen as test subjects and were then asked to choose four
other workers to join the test group. Together, the women worked assembling telephone
relays in a separate room over the course of five years (1927–1932). Their output was
measured during this time—at first, in secret. It started two weeks before moving the
women to an experiment room and continued throughout the study. In the experiment
room, they were assigned to a supervisor who discussed changes with them and, at times,
used the women’s suggestions. The researchers then spent five years measuring how
different variables affected both the group’s and the individuals’ productivity. Some of the
variables included giving two five-minute breaks (after a discussion with the group on the
best length of time), and then changing to two ten-minute breaks (not the preference of the
group).
Changing a variable usually increased productivity, even if the variable was just a change
back to the original condition. Researchers concluded that the employees worked harder
because they thought they were being monitored individually. Researchers hypothesized
that choosing one’s own coworkers, working as a group, being treated as special (as
evidenced by working in a separate room), and having a sympathetic supervisor were the
real reasons for the productivity increase.
The Hawthorne studies showed that people’s work performance is dependent on social
issues and job satisfaction. The studies concluded that tangible motivators such as
monetary incentives and good working conditions are generally less important in
improving employee productivity than intangible motivators such as meeting individuals’
desire to belong to a group and be included in decision making and work.
Practice Question
Need-Based Theories
Maslow’s Hierarchy of Needs
Human motivation can be defined as the fulfillment of various needs. These needs can
encompass a range of human desires, from basic, tangible needs of survival to complex,
emotional needs surrounding an individual’s psychological well-being.
Abraham Maslow was a social psychologist who was interested in a broad spectrum
of human psychological needs rather than on individual psychological problems. He is best
known for his hierarchy-of-needs theory. Depicted in a pyramid (shown in Figure 1), the
theory organizes the different levels of human psychological and physical needs in order
of importance.
Figure 1. Maslow’s hierarchy of needs is illustrated here. In some versions of the pyramid,
cognitive and aesthetic needs are also included between esteem and self-actualization.
Others include another tier at the top of the pyramid for self-transcendence.
The needs in Maslow’s hierarchy include physiological needs (food and clothing), safety
needs (job security), social needs (friendship), self-esteem, and self-actualization. This
hierarchy can be used by managers to better understand employees’ needs and motivation
and address them in ways that lead to high productivity and job satisfaction.
At the bottom of the pyramid are the physiological (or basic) human needs that are
required for survival: food, shelter, water, sleep, etc. If these requirements are not met, the
body cannot continue to function. Faced with a lack of food, love, and safety, most people
would probably consider food to be their most urgent need.
Once physical needs are satisfied, security (sometimes referred to as individual safety)
takes precedence. Security and safety needs include personal security, financial security,
and health and well-being. These first two levels are important to the physical survival of
the person. Once individuals have basic nutrition, shelter, and safety, they seek to fulfill
higher-level needs.
The third level of need is social, which includes love and belonging; when individuals
have taken care of themselves physically, they can address their need to share and connect
with others. Deficiencies at this level, on account of neglect, shunning, ostracism, etc., can
impact an individual’s ability to form and maintain emotionally significant relationships.
Humans need to feel a sense of belonging and acceptance, whether it comes from a large
social group or a small network of family and friends. Other sources of social
connection may be professional organizations, clubs, religious groups, social media sites,
and so forth. Humans need to love and be loved (sexually and non-sexually) by others.
Without these attachments, people can be vulnerable to psychological difficulties such as
loneliness, social anxiety, and depression. These conditions, when severe, can impair a
person’s ability to address basic physiological needs such as eating and sleeping.
The fourth level is esteem, which represents the normal human desire to be valued and
validated by others, through, for example, the recognition of success or status. This level
also includes self-esteem, which refers to the regard and acceptance one has for oneself.
Imbalances at this level can result in low self-esteem or an inferiority complex. People
suffering from low self-esteem may find that external validation by others—through fame,
glory, accolades, etc.—only partially or temporarily fulfills their needs at this level.
At the top of the pyramid is self-actualization. At this stage, people feel that they have
reached their full potential and are doing everything they’re capable of. Self-actualization
is rarely a permanent feeling or state. Rather, it refers to the ongoing need for personal
growth and discovery that people have throughout their lives. Self-actualization may occur
after reaching an important goal or overcoming a particular challenge, and it may be
marked by a new sense of self-confidence or contentment.
Practice Question
Clayton Paul Alderfer is an American psychologist who developed Maslow’s hierarchy of
needs into a theory of his own. Alderfer’s ERG theory suggests that there are three
groups of core needs: existence (E), relatedness (R), and growth (G)—hence the
acronym ERG. These groups align with Maslow’s levels of physiological needs, social
needs, and self-actualization needs, respectively.
Existence needs concern our basic material requirements for living. These include what
Maslow categorized as physiological needs (such as air, food, water, and shelter) and
safety-related needs (such as health, secure employment, and property).
Relatedness needs have to do with the importance of maintaining interpersonal
relationships. These needs are based in social interactions with others and align with
Maslow’s levels of love/belonging-related needs (such as friendship, family, and sexual
intimacy) and esteem-related needs (gaining the respect of others).
Finally, growth needs to describe our intrinsic desire for personal development. These
needs align with the other portion of Maslow’s esteem-related needs (self-esteem, self-
confidence, and achievement) and self-actualization needs (such as morality, creativity,
problem-solving, and discovery).
Alderfer proposed that when a certain category of needs isn’t being met, people will
redouble their efforts to fulfill needs in a lower category. For example, if someone’s self-
esteem is suffering, he or she will invest more effort in the relatedness category of needs.
McClelland’s Acquired Needs Theory
Psychologist David McClelland’s acquired-needs theory splits the needs of employees
into three categories rather than the two we discussed in Herzberg’s theory. These three
categories are achievement, affiliation, and power.
Employees who are strongly achievement-motivated are driven by the desire for mastery.
They prefer working on tasks of moderate difficulty in which outcomes are the result of
their effort rather than luck. They value receiving feedback on their work.
Employees who are strongly affiliation-motivated are driven by the desire to create and
maintain social relationships. They enjoy belonging to a group and want to feel loved and
accepted. They may not make effective managers because they may worry too much about
how others will feel about them.
Employees who are strongly power-motivated are driven by the desire to influence, teach,
or encourage others. They enjoy work and place a high value on discipline. However, they
may take a zero-sum approach to group work—for one person to win, or succeed, another
must lose, or fail. If channeled appropriately, though, this approach can positively support
group goals and help others in the group feel competent.
The acquired-needs theory doesn’t claim that people can be neatly categorized into one of
three types. Rather, it asserts that all people are motivated by all of these needs in varying
degrees and proportions. An individual’s balance of these needs forms a kind of profile
that can be useful in creating a tailored motivational paradigm for her. It is important to
note that needs do not necessarily correlate with competencies; it is possible for an
employee to be strongly affiliation-motivated, for example, but still be successful in a
situation in which her affiliation needs are not met.
McClelland proposes that those in top management positions generally have a high need
for power and a low need for affiliation. He also believes that although individuals with a
need for achievement can make good managers, they are not generally suited to being in
top management positions.
McGregor’s Theory X and Theory Y
The idea that a manager’s attitude has an impact on employee motivation was originally
proposed by Douglas McGregor, a management professor at the Massachusetts Institute
of Technology during the 1950s and 1960s. In his 1960 book, The Human Side of
Enterprise, McGregor proposed two theories by which managers perceive and address
employee motivation. He referred to these opposing motivational methods as Theory X
and Theory Y management. Each assumes that the manager’s role is to organize resources,
including people, to best benefit the company. However, beyond this commonality,
the attitudes and assumptions they embody are quite different.
Theory X
According to McGregor, Theory X management assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid work
whenever possible.
 Most people are not ambitious, have little desire for responsibility, and prefer to be
directed.
 Most people have little aptitude for creativity in solving organizational problems.
 Motivation occurs only at the physiological and security levels of Maslow’s hierarchy
of needs.
 Most people are self-centered. As a result, they must be closely controlled and often
coerced to achieve organizational objectives.

 Most people resist change.
 Most people are gullible and unintelligent.
Essentially, Theory X assumes that the primary source of employee motivation is

monetary, with security as a strong second. Under Theory X, one can take a hard or soft
approach to getting results.
The hard approach to motivation relies on coercion, implicit threats, micromanagement,
and tight controls— essentially an environment of command and control. The soft
approach, however, is to be permissive and seek harmony in the hopes that, in return,
employees will cooperate when asked. However, neither of these extremes is optimal. The
hard approach results in hostility, purposely low output, and extreme union demands. The
soft approach results in a growing desire for greater reward in exchange for diminished
work output.
It might seem that the optimal approach to human resource management would lie
somewhere between these extremes. However, McGregor asserts that neither approach is
appropriate, since the basic assumptions of Theory X are incorrect.
Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once satisfied, no
longer motivates. The company uses monetary rewards and benefits to satisfy employees’
lower-level needs. Once those needs have been satisfied, the motivation disappears.
Theory X management hinders the satisfaction of higher-level needs because it doesn’t
acknowledge that those needs are relevant in the workplace. As a result, the only way that
employees can attempt to meet higher-level needs at work is to seek more compensation,
so, predictably, they focus on monetary rewards. While money may not be the most
effective way to self-fulfillment, it may be the only way available. People will use work to
satisfy their lower needs and seek to satisfy their higher needs during their leisure time.
However, employees can be most productive when their work goals align with their
higher-level needs.
McGregor makes the point that a command-and-control environment is not effective
because it relies on lower needs for motivation, but in modern society those needs are
mostly satisfied and thus are no longer motivating. In this situation, one would expect
employees to dislike their work, avoid responsibility, have no interest in organizational
goals, resist change, etc.—creating, in effect, a self-fulfilling prophecy. To McGregor, a
steady supply of motivation seemed more likely to occur under Theory Y management.
Theory Y
The higher-level needs of esteem and self-actualization are ongoing needs that, for most
people, are never completely satisfied. As such, it is these higher-level needs through
which employees can best be motivated.
In strong contrast to Theory X, Theory Y management makes the following assumptions:
 Work can be as natural as play if the conditions are favorable.
 People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.
 People will be committed to their quality and productivity objectives if rewards are in
place that address higher needs such as self-fulfillment.
 The capacity for creativity spreads throughout organizations.
 Most people can handle responsibility because creativity and ingenuity are common in
the population.
 Under these conditions, people will seek responsibility.
Under these assumptions, there is an opportunity to align personal goals with
organizational goals by using the employee’s own need for fulfillment as the motivator.
McGregor stressed that Theory Y management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity
assumed by Theory Y and may initially need tighter controls that can be relaxed as the
employee develops.
If Theory Y holds true, an organization can apply the following principles of scientific
management to improve employee motivation:
 Decentralization and delegation: If firms decentralize control and reduce the number
of levels of management, managers will have more subordinates and consequently need to
delegate some responsibility and decision making to them.
 Job enlargement: Broadening the scope of an employee’s job adds variety and
opportunities to satisfy ego needs.
 Participative management: Consulting employees in the decision-making process taps
their creative capacity and provides them with some control over their work environment.
 Performance appraisals: Having the employee set objectives and participate in the
process of self-evaluation increases engagement and dedication.
If properly implemented, such an environment can increase and continually

fuel motivation as employees work to satisfy their higher-level personal needs through
their jobs.
Herzberg’s Two-Factor Theory
American psychologist Frederick Herzberg is regarded as one of the great original

thinkers in management and motivational theory. Herzberg set out to determine the effect
of attitude on motivation, by simply asking people to describe the times when they felt
really good, and really bad, about their jobs. What he found was that people who felt good
about their jobs gave very different responses from the people who felt bad.
The results from this inquiry form the basis of Herzberg’s Motivation-Hygiene Theory
(sometimes known as Herzberg’s “Two Factor Theory”). Published in his famous article,
“One More Time: How do You Motivate Employees,” the conclusions he drew were
extraordinarily influential, and still form the bedrock of good motivational practice nearly
half a century later. He’s especially recognized for his two-factor theory, which
hypothesized that are two different sets of factors governing job satisfaction and job
dissatisfaction: “hygiene factors,” or extrinsic motivators and “motivation factors,” or
intrinsic motivators.
Hygiene factors, or extrinsic motivators, tend to represent more tangible, basic needs—
i.e., the kinds of needs included in the existence category of needs in the ERG theory or in
the lower levels of Maslow’s hierarchy of needs. Extrinsic motivators include status, job
security, salary, and fringe benefits. It’s important for managers to realize that not
providing the appropriate and expected extrinsic motivators will sow dissatisfaction and
decrease motivation among employees.
Motivation factors, or intrinsic motivators, tend to represent less tangible, more
emotional needs—i.e., the kinds of needs identified in the “relatedness” and “growth”
categories of needs in the ERG theory and in the higher levels of Maslow’s hierarchy of
needs. Intrinsic motivators include challenging work, recognition, relationships, and
growth potential. Managers need to recognize that while these needs may fall outside the

more traditional scope of what a workplace ought to provide, they can be critical to strong
individual and team performance.
The factor that differentiates two-factor theory from the others we’ve discussed is the
role of employee expectations. According to Herzberg, intrinsic motivators and extrinsic
motivators have an inverse relationship. That is, intrinsic motivators tend to
increase motivation when they are present, while extrinsic motivators tend to reduce
motivation when they are absent. This is due to employees’ expectations. Extrinsic
motivators (e.g., salary, benefits) are expected, so they won’t increase motivation when
they are in place, but they will cause dissatisfaction when they are missing. Intrinsic
motivators (e.g., challenging work, growth potential), on the other hand, can be a source of
additional motivation when they are available.
If management wants to increase employees’ job satisfaction, they should be concerned

with the nature of the work itself—the opportunities it presents employees for gaining
status, assuming responsibility, and achieving self-realization. If, on the other hand,
management wishes to reduce dissatisfaction, then it must focus on the job environment—
policies, procedures, supervision, and working conditions. To ensure a satisfied and
productive workforce, managers must pay attention to both sets of job factors.
Motivation across cultures
the theories you’ve read about have been developed by american psychologists and
scientists for the american workplace, and the behaviors suggested are dictated by the
american culture. managers working for international companies who have remote
international teams may find it difficult to apply the suggestions of these theories to
everyone on their team.
for instance, maslow’s theory, which suggests that humans follow a needs path from
physiological needs to needs of safety, love and belonging, esteem and self-actualization,
is a typically american point of view. greece and mexico, countries with cultures that look
for a significant set of rules and guidelines in their lives, might have safety at the top of
their pyramids, while scandinavian countries, well known for their nurturing
characteristics, might have social needs at the top of theirs. if these differences are well
understood, managers can adapt accordingly, and understand that group work is more
important for their scandinavian workers, and so on.
what other theories fall short when you stand them up against other cultures? well, the
need to achieve and a concern for performance is found in the us, uk and canada, but in
countries like chile and portugal, it’s almost non-existent. the equity theory, which we
talked about in the first section of this module, is embraced in the us, but in the former
socialist countries of central and eastern europe, workers expect their rewards to reflect
their personal needs as well as their performance. it stands to reason that us pay practices
might be perceived as unfair in these countries.
geert hofstede, a dutch social psychologist, professor at maastricht university in the

netherlands and a former ibm employee, conducted some pioneering research on cross-
cultural groups in organizations, which led to his cultural dimensions theory.
in this theory, hofstede defines culture as the unique way in which people are collectively
taught in their environments. he looks to compare and understand the collective mindset of
these groups of people and how they differ. his conclusions were that cultural differences
showed themselves in six significant buckets. hofstede created an “index” for each
category to show where individual cultures fell along the spectrum:
 Power distance: this is an index that describes the extent to which the less powerful
members of organizations accept and expect that power is distributed unequally. a higher
index number suggests that hierarchy is clearly established and executed in society, while
a lower index would indicate that people question authority in that culture. (latin, asian,
and arab countries score on the high side, while anglo and germanic countries score low.
the us is in the middle.)
 Individualism: this measures the degree to which people in a society are integrated
into groups. the united states scores very high in this category.
 uncertainty avoidance: this is defined as a “society’s tolerance for ambiguity.”
cultures scoring high in this area opt for very defined codes of behavior and laws, while
cultures scoring lower are more accepting of different thoughts and ideas. belgium and
germany score high while countries like sweden and denmark score lower.
 Masculinity vs femininity: in more masculine societies, women and men are more
competitive, while in feminine societies, they share caring views equally with men. anglo
countries like the uk and the us tend to lean toward masculinity in their cultures, while
scandinavian countries tend toward femininity.
 Long-term orientation vs. short-term orientation: this measures the degree to which
a society honors tradition. a lower score indicates traditions are kept, while a higher score
indicates the society views adaptation and problem-solving as a necessary component of
their culture. asian cultures have strong long-term orientation, while anglo countries, africa
and latin america have shorter-term orientation.
 Indulgence vs. restraint: this is a measurement of happiness if simple joys are
fulfilled. indulgent societies believe themselves to be in control of their lives, while
restrained societies believe that external forces dictate their lives. there is less data about
this particular dimension, but we do know that latin america, the anglo countries and
nordic europe score high on indulgence, while muslim countries and east asia tend to score
high on restraint.
When you compare hofstede’s cultural dimensions theory to maslow’s hierarchy of needs,
as we briefly did above, you can see where cultural differences shift the order of needs on
the pyramid. we mentioned above that belgium and germany score high on the uncertainty
avoidance dimension—they don’t like social ambiguity, they want to be able to control
their futures and feel threatened by the unknown. so it would make sense that, while
“safety” is the second rung of the pyramid here in the united states, it’s a more significant
need to satisfy in german culture.
hofstede’s cultural dimension highlight the importance cultures place on different needs.
these dimensions can be used to determine differences in individual needs based on their
cultural teachings and beliefs.
now that we’ve discussed this in some detail, it’s important to understand that not all
motivational drivers are culture-bound. for example, the desire for interesting work
appears to be important to all workers everywhere. growth, achievement and responsibility
were also highly rated across various cultures. the manager of an international team
doesn’t have to approach everything differently. but keeping in mind that cultural
differences drive individuals’ needs will help a manager create motivating circumstance
for all his workers.
Positive Organizational Behavior

Positive organizational behavior (POB) is
“the study and application of positively oriented human resource strengths and
psychological capacities that can be measured, developed, and effectively managed for
performance improvement in today’s workplace.”
Luthans, 2002, p. 59
This definition’s reference to strengths and capacities points to several foci relevant to
positive psychologists, including attitudes, motivation, and talents. Additionally, the
definition orients POB as a scientific discipline characterized by theory and empirical rigor
(Luthans, 2002).
Finally, the definition incorporates the notion of development, highlighting POB’s focus
on malleable, state-like constructs that can be changed, such as emotions and behavioral
intentions in the workplace (Luthans, 2002).
Later, Wright (2003) counterbalanced the above definition of POB, emphasizing the
importance of employee happiness and health as essential goals for POB instead of simply
utilitarian objectives like performance.
Positive organizational scholarship

Underpinning the application of POB in practice is a growing body of research known as
positive organizational scholarship (POS).
While often overlapping with POB, POS mainly concerns positive features of
organizations that allow employees to thrive (Bakker & Schaufeli, 2008).
In particular, the field centers on
“that which is positive, flourishing, and life-giving in organizations.”
Cameron & Caza, 2004, p. 731
POS rigorously seeks to understand the drivers of optimal individual psychological states
in organizations that facilitate performance, healing, strength development, and
resilience, using many of the same methods as those in the broader fields of psychology
and business (Cameron & Spreitzer, 2012).
3 Positive Organizational Psychology Theories

Many theories drawn from the field of psychology have been adapted and applied to
strengthen our understanding of positive behavior at work, including those
on psychological capital, self-efficacy, and motivation.
To illustrate, consider these three emerging theories that offer a broad sweep of the field.
1. Positive leadership theory

A positive leader typically spearheads the application of positive psychology principles
in the workplace. Definitions of positive leadership have been integrated and defined as
follows:
“an approach towards leadership that is characterized by the demonstration of leadership
traits such as optimism… as well as leadership behaviors that entail the creation of a
positive working environment, the development of positive relationships, a focus on
results, and positive communication with employees.”
Malinga, Stander, & Nell, 2019, p. 214
Although an elusive concept, positive leadership has three basic components (Blanch,
Gil, Antino, & Rodríguez-Muñoz, 2016):
1. It focuses on people’s strengths and abilities, reaffirming their human potential.
2. It emphasizes results and facilitates above-average individual and organizational
performance.
3. Its targets for action center on essential virtues of the human condition.
It is believed that all leaders lie somewhere on a continuum, depending on the extent to
which they demonstrate behaviors that align with these components (Wooten & Cameron,
2010).
To significantly enhance performance, leaders with skills aligned toward the more positive
end of this continuum effectively give employees the resources they need, such as
feedback, well-designed work, and learning opportunities (Abdullah, 2009).
2. Job crafting theory

Job crafting is
“the physical and cognitive changes individuals make in the task or relational boundaries
of their work.”
Wrzesniewski & Dutton, 2001, p. 179
An example of job crafting would be if a barista were to adjust the placement of the
ingredients and equipment around the coffee machine to make preparing each drink a little
quicker and easier.
Another example would be a city sanitation worker who cognitively interprets their role as
one that involves beautifying the local parks and helping to preserve nature rather than
simply picking up waste.
Through job crafting, employees are empowered to make their work more meaningful,
better use their skills, and minimize strain. Consequently, these employees tend to exhibit

greater motivation, are more engaged, and are less likely to resign (Zhang & Parker,
2019).
3. Work as calling theory

A third theory falling within the scope of POB is work as calling theory (WCT). This
theory suggests that for some, working may be one way to live out a true calling in life.
Stemming from the field of transpersonal psychology, WCT suggests that callings have
three characteristics (Duffy, Douglass, Gensmer, England, & Kim, 2019):
1. A sense of individual meaning and overall purpose
2. Opportunities to help others or contribute to the common good
3. A sense of being compelled (internally or externally) toward that work
When workers feel called to their line of work, perceive few obstacles to pursuing that
calling, and fit well with their environment, positive work and individual outcomes tend to
result (Duffy et al., 2019).
These include reduced turnover intention, greater work engagement, and greater life
satisfaction (Duffy & Dik, 2013).
To better understand how the related field of positive organizational psychology fits into
positive organizational behavior, be sure to check out our dedicated article.
5 Real-Life Examples of POB

Here are five real-life examples of actions taken by organizations whose human resource
(HR) departments used POB approaches to manage their people (Geiman, 2016):
1. Rather than relying on lengthy policy manuals, POB organizations may use guidelines and
core principles rooted in an organization’s values to guide the behavior of employees.
2. POB organizations are committed to identifying and hiring employees whose natural
strengths and talents align with their work.
3. As soon as layoffs become a possibility, employees are immediately made aware, and
leadership remains in close communication with the workforce.
4. Employees in POB organizations are fairly compensated for participation in company-

wide meetings, huddles, and development activities (i.e., activities peripheral to the core
work role).
5. POB organizations set clear expectations during performance reviews, regularly coach
staff, and provide feedback on a quarterly or monthly basis, rather than annually.
6. Being successful in business is about more than simply having a great idea and a good
business model. It’s also about nurturing your own character so that you, yourself, can be
successful in whatever you do. This is especially important when you’re a small or
medium-sized business, where you often find that the directors and founders wear multiple
‘hats’, performing a range of job functions within the business.
7. There’s a reason why so many successful businessmen and women seem somewhat
similar to one another: confident, outgoing, and forward-thinking. There are certain
character traits that just lend themselves to good business acumen, and topping the list
should be optimism. Here are six reasons why optimism is a trait every entrepreneur
should seek to possess.
Optimism
Optimism can be developed in the workplace through training and measured by how well
employees meet company goals. Teaching positive organizational behavior leads to better
job satisfaction, work happiness, and commitment to the company
Increases Productivity
Research has shown that optimistic people work harder, probably because they can more
clearly see the goal they’re working towards. Maintaining a positive outlook is proven to
increase productivity and therefore make you better at business.
Optimism Begets Optimism
A good mood is contagious, and optimism is largely the same; business is usually people-
centric, and when you’re constantly surrounded by clients, colleagues, and staff, the last
thing you want to do is put them off with your dreary personality. People around you will
enjoy your optimism and probably become more optimistic themselves because of it.
Optimism Doesn’t Accept Failure
Failure is normal; not every business venture succeeds. Those entrepreneurs who succeed
overall are the ones who can take failures and get back up again with determination in
their eyes. Pessimists fall at the first hurdle; optimists stay in the race. In times of hardship,
which in business you will undoubtedly face, the ability to dust off and get back up is
essential. The Coronavirus Pandemic, which floored businesses and the economy as a
whole, could be viewed as the end, or as an opportunity, lesson or rebirth. How you
perceive setback and how you respond to them will have a direct impact on the resilience
of your business.
Optimism Is Healthier
Whether you’re in business or not, it’s a good idea to nurture your own sense of optimism
if only for your health. A study conducted by the University of Illinois found that
optimistic participants were 76% more likely to have an ‘ideal’ health score.
Optimism Means Growth
Optimists are more likely than pessimists to venture outside of their comfort zones and try
something new. In business, nothing is more important than this. The old adage rings true:
nothing risked, nothing gained. Business is all about innovation, and how can we innovate
if we’re afraid to try something new?
Optimism Just… Makes Sense
At the end of the day, pessimism is just not going to get you very far. If you don’t believe
in what you’re doing, why are you doing it? You might as well just quit, right? When you
realise that optimism really is the only sensible attitude you can have when it comes to
business, you’ll realise how important it is to practice thinking positively – even when the
chips are down.
For advice and assistance with business strategy and marketing – or even just a friendly
pep talk in entrepreneurial optimism – don’t hesitate to get in touch.
Emotional intelligence (EI) is the capability to comprehend and facilitate emotions, and
is an important skill for the workplace, particularly for managers. Learn more about the
definition and meaning of emotional intelligence at work, the elements of EI, how EI
shapes the workplace, and how to improve EI skills for business. Updated: 08/29/2021
Emotional Intelligence at Work

Successful companies are multi-dimensional. There are many factors that make a company
stand out above the competition and perform well. One element is having management
with good emotional intelligence, or EI for short. It is sometimes called EQ, to contrast
with IQ or intellectual skill.
EI is the ability to understand and facilitate emotion. Bosses with good EI skills know how
to display the correct type of emotions to their employees. They treat their employees
fairly and behave maturely and responsibly.
A manager with poor EI may be intelligent and have the technical skills for the job, but he
or she often makes poor decisions because of difficulty regulating their emotions.
Managers with emotional intelligence are compassionate, empathetic, and excellent
motivators. They do not overreact to issues, and they are calm in the face of turmoil.
Management with good EI skills have an influence throughout their workplace. They
attract employees who also have good emotional intelligence, who in turn interact well
with each other, with customers, and with other businesses they have to deal with in the
course of work.
Elements of Emotional Intelligence

What exactly is EI? Most thinkers on the subject note these factors:
 Empathy, the ability to note and respond to other people's motivations and needs
 Self-awareness, the recognition of one's own strengths and weaknesses
 Self-regulation, the ability to manage emotion and express it appropriately and

usefully
 Motivation, being driven internally, rather than just working for a paycheck
 People skills, the ability to win others' respect and build rapport
Self-efficacy: referred to as social learning theory, relates to the perceived belief that an
individual has about whether he or she has capability to perform a task.
The theory is based on the work of psychologist Albert Bandura. Bandura defined self-
efficacy Opens in new window as “one’s self-perceived ability at a task”.
Self-efficacy, a concept originally proposed by the psychologist Albert Bandura, refers to

an individual's belief in their capacity to execute behaviors necessary to produce specific
performance attainments.
Self-efficacy affects every area of human endeavor. By determining the beliefs a person
holds regarding their power to affect situations, self-efficacy strongly influences both the
power a person actually has to face challenges competently and the choices a person is
most likely to make. These effects are particularly apparent, and compelling, with regard
to investment behaviors such as in health,education,] and agriculture.
A strong sense of self-efficacy promotes human accomplishment and personal well-being.
A person with high self-efficacy views challenges as things that are supposed to be
mastered rather than threats to avoid. These people are able to recover from failure faster
and are more likely to attribute failure to a lack of effort. They approach threatening
situations with the belief that they can control them. These things have been linked to
lower levels of stress and a lower vulnerability to depression.
In contrast, people with a low sense of self-efficacy view difficult tasks as personal threats
and shy away from them. Difficult tasks lead them to look at the skills they lack rather
than the ones they have. It is easy for them to lose faith in their own abilities after a failure.
Low self-efficacy can be linked to higher levels of stress and depression
THEORIES OF SELF EFFICACY

Social cognitive theory
Psychologist Albert Bandura has defined self-efficacy as one's belief in one's ability to
succeed in specific situations or accomplish a task. One's sense of self-efficacy can play a
major role in how one approaches goals, tasks, and challenges. [2] The theory of self-
efficacy lies at the center of Bandura's social cognitive theory, which emphasizes the role
of observational learning and social experience in the development of personality. The
main concept in social cognitive theory is that an individual's actions and reactions,
including social behaviors and cognitive processes, in almost every situation are
influenced by the actions that individual has observed in others. Because self-efficacy is
developed from external experiences and self-perception and is influential in determining
the outcome of many events, it is an important aspect of social cognitive theory. Self-
efficacy represents the personal perception of external social factors.According to
Bandura's theory, people with high self-efficacy—that is, those who believe they can
perform well—are more likely to view difficult tasks as something to be mastered rather
than something to be avoided.
Social learning theory[
Social learning theory describes the acquisition of skills that are developed exclusively or
primarily within a social group. Social learning depends on how individuals either succeed
or fail at dynamic interactions within groups, and promotes the development of individual
emotional and practical skills as well as accurate perception of self and acceptance of
others. According to this theory, people learn from one another through observation,
imitation, and modeling. Self-efficacy reflects an individual's understanding of what skills
he/she can offer in a group setting.[10]
Self-concept theory
Self-concept theory seeks to explain how people perceive and interpret their own existence
from clues they receive from external sources, focusing on how these impressions are
organized and how they are active throughout life. Successes and failures are closely
related to the ways in which people have learned to view themselves and their
relationships with others. This theory describes self-concept as learned (i.e., not present at
birth); organized (in the way it is applied to the self); and dynamic (i.e., ever-changing,
and not fixed at a certain age).
Attribution theory

Attribution theory focuses on how people attribute events and how those beliefs interact
with self-perception. Attribution theory defines three major elements of cause:
Locus is the location of the perceived cause. If the locus is internal (dispositional), feelings
of self-esteem and self-efficacy will be enhanced by success and diminished by failure.
Stability describes whether the cause is perceived as static or dynamic over time. It is
closely related to expectations and goals, in that when people attribute their failures to
stable factors such as the difficulty of a task, they will expect to fail in that task in the
future.
UNIT-III
Communication is vital to organizations—it’s how we coordinate actions and achieve goals. It

is defined in Webster’s dictionary as a process by which information is exchanged between
individuals through a common system of symbols, signs, or behavior. Communication fulfills
three main functions within an organization, including coordination, transmission of
information, and sharing emotions and feelings. All these functions are vital to a successful
organization
Communication is the sending and receiving of information and can be one-on-one or between
groups of people, and can be face-to-face or through communication devices.
Components of communication:
Sender: This is the person that is delivering a message to a recipient. Message: This refers to
the information that the sender is relaying to the receiver
Channel: This refers to the information that the sender is relaying to the receiver
Decoding: This is the interpretation of the message. Decoding is performed by the receiver
Receiver: is the person who is going to receive message
Feedback: In some instances, the receiver might have feedback or a response for the sender.
Importance of Communication:
Communication is an indispensable part of the process of management. The success of an

enterprise depends upon the effective of communication. Every manager must communicate in
order to get things done through others. A good communication system offers the following
benefits:

Basis of Decision-Making and Planning: Communication is essential for decision-making
and planning. It enables the management to secure information without which it may be
possible to take any decision. The quality of managerial decisions depends upon the quality of
communication. Further, the decisions and plans of the management need to be communicated
to the subordinates.
Smooth and Efficient Working: Communication makes possible the smooth and efficient
working of an enterprise. It is only through communication that the management changes
and regulates the actions of the subordinates in the desired direction.
Facilitates Co-ordination: Management is the art of getting things done through others and
this objective of management cannot be achieved unless there is unity of purpose and harmony
of effort. Communication through exchange of ideas and information helps to bring about unity
of action in the pursuit of common purpose. It binds the people together and facilitates co-
ordination.
Increases Managerial Efficiency: Effective communication increases managerial efficiency.

It is rightly said that nothing happens in management until communication takes place. The
efficiency of a manager depends upon his ability to communicate effectively with the members
of his organization. It is only through communication that management conveys its goals and
desires, issues instructions and orders, allocates jobs and responsibility and evaluates
performance of subordinates.
Sound Industrial Relations: Effective communication creates mutual understanding and trust
among the members of the organization. It promotes co-operation between the employer and
the employees. Without communication, there cannot be sound industrial relations and
industrial peace. It is only through communication that workers can put in their grievances,
problems and suggestions to the management.
Effective Control: Communication acts as a tool of effective control. The plans have to be
communicated to the subordinates, the actual performance has to be measured and
communicated to the top management and a corrective action has to be taken or communicated
so as to achieve the desired goals. All this may not be possible without an efficient system of
communication.
TYPES OF COMMUNICATION:
The four main categories of communication are
 Verbal – It is a method that uses speech in the form of speaking to convey a

message or information. It is the most popular and effective mode of communication,
usually practiced

during video conferences, phone calls, presentations, one-on-one conversations, and
meetings. It supports both nonverbal and written communication.
 Nonverbal – It is basically a practice of gestures, facial expressions, and body language

to send information. It can be implemented intentionally and unintentionally when
communicating. For instance, a person can smile unintentionally when they hear an
interesting piece of information or a pleasant idea.
 Written – It is all about typing, printing symbols, numbers, letters, and writing to send
a piece of information. Sometimes used to record information for evidence or reference
purpose. In general, the written style of communication is used in books, blogs,
pamphlets, memos, and letters to share and spread information. In the workplace, e-
mail is a common example of written communication.
 Visual – It uses art, photographs, sketches, graphs, charts, and drawings, to pass on the
information. It is used especially during presentations to present to give a visual effect
and support written or verbal communication.
There are two main types of communication in every organization – formal & informal
communication.
Formal Communication: Formal communication refers to official communication which

takes place through a chain of commands. It flows in formally established channels & is
concerned with work related matters. Members of the enterprise and expected to
communication with one another strictly as per channels laid down in the structure. The formal
communication may be divided into three categories which are given as follows:
a) Downward Communication: Under this system, the flow of communication from the top
management downward to be operating level. It may also be called a communication from a
superior to a subordinate. It follows the line of authority from the top to the bottom of the

organization
hierarchy. Downward communication consists of plans & policies, orders and instructions,
procedures & rules etc.
b) Upward Communication: It means the flow of information from the lower levels of the
organization to the higher level of authority. It passes from subordinate to superior as that from
worker to foreman, foreman to manager. From manager to general manager & so on. This
communication includes opinions, ideas, suggestions, complaints, grievances, appeals, reports
etc. It is very important as it serves as the feedback on the effectiveness of downward
communication.
c) Horizontal Communication: The transmission of information and understanding between

people on the same level of organization hierarchy is called the horizontal communication.
This type of communication is also known as lateral or sideward or crosswise communication.
Usually, it pertains to inter departmental managers working at the same level of organization or
among subordinates working under one boss. Horizontal communication speeds up information
and promotes mutual understanding. It enables the managers working at the same level to
exchange information and co-ordinate their activities without referring all matters to the higher
level of management.
Informal Communication: There is also a great deal of informal communication in an

organization. This communication flows through informal channels and may or may not be
work related. Informal communication cuts through the formal organizational structure. Most
of us are familiar with the term ‘grapevine’ used to describe a network of informal
communication. Grapevines are present in all organizations. In fact, in large organizations,
there are many grapevines moving up, down and across departments.
People who know each other in the organization talk together informally. One thing they have
in common is the organization they work for, so they talk about the happenings in the
organization. Grapevines carry two types of information: work related and people related.
Employees want to know what is going on in the organization. When they are not kept
informed through formal channels, they seek information from the grapevine. Employees get to
know plans, promotions, punishments, etc., much before they are formally announced.
Informality however, reduces uniformity of communication and sometimes false or distorted
news is circulated.
Barriers to effective communication:

Physical communication barriers: this type of barrier is the most easily recognizable one and
can also be easily resolved. Examples of physical barriers are; noise, faulty communication
tools or equipment, distance between the two communicators, closed doors etc.
Culture and language communication barrier: in communication, the fact that certain
information is provided for the people of a particular or diverse culture must be taken into
account and such a communication must be made as such that it is considered culturally
appropriate language wise, it is a popular saying that every interpreter is a betrayer. Linguistic
barrier is very lethal to effective communication as language is the most common
communication tool and it is a problem because various regions in the world have their own
dialect which the sender may not be able to use effectively.
Emotional communication barrier: emotions go a long way in communication, whether

positively or negatively. An emotionally mature person will be able to control his feeling or
temper despite several situations, go ahead to engage in communication as intended and make
an effective communication but for an emotional person, he may allow anger, fear, anxiety,
frustration and others to affect his speech or other communication mediums and hence make
his communication ineffective.
Mindset or personal communication barrier: preconceived notion on any subject matter or

mindset and also other factors like difference in judgment, social values, inferiority complex,
bias, attitude, pressure of time, inability to communicate, etc. Are personal factors which
caused ineffective communication.
Hierarchy or status communication barrier: This usually occurs between persons who are
superiors and their subordinates, where the superior because of their status may not want to
listen or understand any new and important piece of information from the subordinate.
Organizational structure communication barrier: for an organization with a serious and

high hierarchy, information may get distorted as it has to pass from top to bottom and this is a
serious communication barrier as the information will not be accurate and ineffective hence
making the work of the employees at the bottom to be inefficient.
Other barriers include:

 Inadequate attention
 Information overload
 Physiological communication barrier
 Attitudinal communication barrier
Solutions to communication barriers
Some solutions to communication barriers are as follows:
1. Research on the causes of communication barriers and application of the result of such
research to tackle the communication problems.
2. Use of appropriate communication channels at all times
3. Adoption of better communication technology.
Decision making:
Decision-making has great importance for success of organization in contemporary

management system. Managers have to take critical decisions at every stage. Decision-making
pervades through all managerial functions such as planning, organizing, staffing, directing and
control.
Longman (2000) describes that "decision as a choice or judgment that you make after a period
of discussion or thought".
Decision Making Process:
A decision is reasonable if it is suitable for organization that means choose best alternative to
accomplish goals. There are various steps in rational decision making:
1. Recognizing the problem.
2. Deciding priorities among the problems.
3. Diagnosing the problem.
4. Developing alternative solutions or courses of activities.
5. Evaluating alternatives.
6. Converting the decision into effective action and follow up of action.
Participative decision-making (PDM) is the extent to which employers allow or

encourage employees to share or participate in organizational decision-making. According
to Cotton et al., the format of PDM could be formal or informal. In addition, the degree of
participation could range from zero to 100% in different participative management (PM)
stages.
PDM is one of many ways in which an organization can make decisions. The leader must think
of the best possible way that will allow the organization to achieve the best results. According
to Abraham Maslow, workers need to feel a sense of belonging to an organization.
here are four types of participative decision-making with democratic (or participative)
leadership being only one of them. All of these styles are somewhat similar and have similar
advantages and disadvantages. They are,
 collective
 democratic
 autocratic
 consensus
Collective decision-making is a form of leadership style where all decisions are taken by the
group, and the responsibility for these decisions are also entirely on the group. One of the
characteristics of collective leadership is that during the decision-making process the group
must develop clear lines of authority that define the responsibilities of each member.
Democratic or participative leadership encourages participation of all members, but the final
decision is taken by the leader. Once the decision is taken, the leader has to communicate it
back to the group and resolve possible objections if any.
Autocratic participative decision-making implies that while possible solutions are
brainstormed collectively, the responsibility of taking the final decision is still on the leader
alone. Autocratic leadership style allows the organization to benefit from the collective input
provided by all employees while making decisions reasonably fast.
Autocratic participative decision-making implies that while possible solutions are
brainstormed collectively, the responsibility of taking the final decision is still on the leader
alone. Autocratic leadership style allows the organization to benefit from the collective input
provided by all employees while making decisions reasonably fast.
Process of participative decision making:
 the leader facilitates the conversation;

 the leader openly shares information and knowledge necessary for decision-making;
 the leader encourages people to share their ideas;
 the leader synthesizes all the available information and solutions suggested by the team;
 the leader comes up with the best possible solution and communicates it back to the
group
Group decision-making
Group decision-making commonly known as collaborative decision-making is a

situation faced when individuals collectively make a choice from the alternatives
before them. The decisions made by groups are mostly different from those made by
individuals. For example, groups tend to make decisions that are more extreme than
those made by individual members, as individuals tend to be biased. The decision is
then no longer attributable to any individual group member as all the individuals and
social group processes like social influence contribute to the decision outcome
Group Decision-Making Techniques
In order to eliminate group, think and group shift from a group, we can use four different
techniques that will help us make a collaborative decision that is best for the group. These
techniques are −
 Brainstorming
 Nominal group thinking
 Didactic technique
 Delphi technique
Brainstorming
This technique includes a group of people, mostly between five and ten in number, sitting
around a table, producing ideas in the form of free association. The main focus is on
generation of ideas and not on evaluation of these ideas.
If more ideas can be originated, then it is likely that there will be a unique and creative idea
among them. All these ideas are written on the blackboard with a piece of chalk so that all the
team members can see every idea and try to improvise these ideas.
Brainstorming technique is very effective when the problem is comparatively precise and can
be simply defined. A complex problem can be divided into parts and each part can be dealt
with separately at a time.
Nominal Group Thinking
This technique is similar to brainstorming except that this approach is more structured. It
motivates individual creativity. Members form the group for namesake and operate
independently, originate ideas for solving the problem on their own, in silence and in writing.
Members do not communicate well with each other so that strong personality domination is
evaded.
The group coordinator either collects the written ideas or writes them on a large blackboard so
that each member of the group can see what the ideas are. These ideas are further discussed
one by one in turn and each participant is motivated to comment on these ideas in order to
clarify and improve them. After all these ideas have been discussed, they are evaluated for
their merits and drawbacks and each actively participating member is needed to vote on each
idea and allot it a rank on the basis of priority of each alternative solution.
Didactic Interaction
This technique is applicable only in certain situations, but is an excellent method when a
situation actually demands it. The type of problem should be such that it generates output in
the form of yes or no. Say for example, a decision is to be made whether to buy or not to buy
a product, to merge or not to merge, to expand or not to expand and so on. These types of
decision requires an extensive and exhaustive discussion and investigation since a wrong
decision can have serious consequences.
There are many advantages as well as disadvantages of this type of situation. The group that
makes the decision is divided into two sub-groups, one in favor of the “go” decision and the
opposing in favor of “no go” decision.
The first group enlists all the “pros” of the problem solution and the second group lists all the
“cons”. These groups meet and discuss their discoveries and their reasons.
After tiring discussions, the groups switch sides and try to find weaknesses in their own
original standpoints. This interchange of ideas and understanding of various viewpoints
results in mutual acceptance of the facts as they exist so that a solution can be put together
around these facts and ultimately a final decision is reached.
Delphi Technique
This technique is the improvised version of the nominal group technique, except that it
involves obtaining the opinions of experts physically distant from each other and unknown to
each other.
This isolates group members from the undue influence of others. Basically, the types of
problems sorted by this technique are not specific in nature or related to a particular situation
at a given time.
For example, the technique could be used to explain the problems that could be created in the
event of a war. The Delphi technique includes the following steps −
 The problem is first identified and a panel of experts are selected. These experts are
asked to provide potential solutions through a series of thoughtfully designed
questionnaires.
 Each expert concludes and returns the initial questionnaire.
 The results of the questionnaire are composed at a central location and the central
coordinator prepares a second set of questionnaires based on the previous answers.
 Each member receives a copy of the results accompanied by the second questionnaire.
 Members are required to review the results and respond to the second questionnaire.
The results typically trigger new solutions or motivate changes in the original ideas.
 The process is repeated until a general agreement is obtained.
Stress:
In Human Resource Management, Stress is defined as a state of mental and emotional
pressure or strain, caused by challenging or unfavorable circumstances. It is an outside force
that rules an individual’s feelings and behavior.
It is a person’s response to an external factor (stimulus, known as the stressor) in the
environment and the outcome of such reaction. The stressor can be unreasonable or extreme
pressure, placed on the employees, which can be a disturbing one.

Some of the factors that commonly cause work-related stress include:
Long hours
Heavy workload
Changes within the organization
Tight deadlines
Changes to duties
Job insecurity
Lack of autonomy
Boring work
Insufficient skills for the job
Over-supervision
Inadequate working environment
Lack of proper resources
Lack of equipment
Few promotional opportunities
Harassment
Discrimination
Poor relationships with colleagues or bosses
Crisis incidents, such as an armed hold-up or workplace death.
The Four Common Types of Stress
Dr Karl Albrecht, a management consultant and conference speaker based in California, is a

pioneer in the development of stress-reduction training for businesspeople. He defined four
common types of stress in his 1979 book, "Stress and the Manager."
Albrecht's four common types of stress are:
 Time stress.
 Anticipatory stress.
 Situational stress.
 Encounter stress.
1. Time Stress
You experience time stress when you worry about not doing things at the right time, or running
out of time to complete all your tasks. Time stress can quickly make you feel unhappy, trapped,
or even hopeless.
Common examples of time stress include worrying about key deadlines, rushing to avoid being
late for a meeting, or looking at a list of jobs that's unmanageable in the time you've got.
2. Anticipatory Stress
Anticipatory stress describes stress that you experience concerning the future. Sometimes this
stress can be focused on a specific event, such as an upcoming presentation. However,
anticipatory stress can also be vague and undefined, such as an overall sense of dread about the
future, or a worry that "something will go wrong."
3. Situational Stress
You experience situational stress when you're in a difficult situation that you have no control
over. This could be an emergency. However, it's more commonly a situation that involves
conflict, or a loss of status or acceptance in the eyes of your group. Getting laid off or making a
major mistake in front of your team are examples of events that can cause situational stress.
4. Encounter Stress
Encounter stress revolves around people. You experience encounter stress when you worry
about interacting with a certain person or group of people. You may not like them, find them
difficult to communicate with, or worry that they're unpredictable.
Encounter stress can also occur if your role involves a lot of personal interactions with
customers or clients, especially if those groups are in distress. For instance, physicians and
social workers are particularly likely to experience encounter stress, because the people they
work with routinely don't feel well, or are deeply upset.
This type of stress also occurs from "contact overload": when you feel overwhelmed or drained
from interacting with too many people.
Conflict:
A conflict is a struggle and a clash of interest, opinion, or even principles. Conflict will
always be found in society; as the basis of conflict may vary to be
personal, racial, class, caste, political and international. Conflict may also be
emotional, intellectual, and theoretical, in which case academic recognition may, or

may not be, a significant motive. Intellectual conflict is a subclass of cultural conflict, a
conflict that tends to grow over time due to different cultural values and beliefs.
Types of conflict:
1. Intra-individual/Intra-personal Conflict.
2. Interpersonal conflict.
3. Intra-group Conflict.
4. Inter-group conflict.
1. Intra-individual/Intra-personal Conflict
Conflict can be intra-personal, where an individual’s objective and vision differ from his/her
company’s overall vision. This refers to a conflict within an individual. intra-individual
conflict arises from frustration, numerous roles that demand equal attention but is riot always
possible to devote, and goals having both negative and positive aspects.
3 types of Intra-individual/Intra-personal Conflict are;
1. Goal conflict,
2. Conflict from frustration, and
3. Role conflict.
Goal conflict
Another common source of conflict for an individual is a goal that has both positive and
negative features or two or more competing goals. Goal conflict is more complex than conflict
from frustration. Goal conflict occurs when the attainment of one goal excludes the possibility
of attaining another.

3 major forms of goal conflict may be distinguished:
 Approach-approach conflict, where the individual is motivated to approach two or

more positive but mutually exclusive goals.
 Approach-avoidance conflict, Where the individual is motivated to
 two or more negative but mutually exclusive goals.
Conflict from frustration
frustration occurs when a motivated drive is blocked before a person reaches the desired goal.
The following figure illustrates the way frustration occurs:
he following figure illustrates the way frustration occurs:
Role conflict:
Role conflict happens when there are contradictions between different roles that a person takes
on or plays in their everyday life. In some cases, the conflict is a result of opposing obligations
which results in a conflict of interest, in others, when a person has roles that have different
statuses, and it also occurs when people disagree about what the responsibilities for a particular
role should be, whether in the personal or professional realms.
Interpersonal conflict:
is conflict that occurs between two or more individuals that work together in groups or teams.
This is a conflict that occurs between two or more individuals. Many individual differences
lead to interpersonal conflict, including personalities, culture, attitudes, values, perceptions,
and the other differences. Conflict arises due to a variety of factors. Individual differences in
goals, expectations, values, proposed courses of action, and suggestions about how to best
handle a situation are unavoidable. Moreover, identifying the factors which cause conflict in
any organization is considered the main stage in the process of conflict management.
4 primary sources of interpersonal conflict are.
1. Personal Differences,
2. Lack of Information,
3. Role in Compatibility, and
4. Environmental Stress.
4. Intra-group Conflict
Intragroup conflict refers to a specific kind of conflict that occurs between members
of a group that shares common goals, interests or other identifying characteristics.
Intragroup conflict can be small-scale, such as within a workplace or large-scale,
such as between members of a specific population group. Though conflict is
generally regarded as a problem, intragroup conflict can also serve as a valuable tool
in some contexts. 4. Inter-group Conflict
4.Intergroup conflict:
Intergroup conflict is when conflict between groups inside and outside an organization disagree
on various issues. Conflict can also arise between two groups within the same organization,
and that also would be considered intergroup conflict.
Within those types of conflict, one can experience horizontal conflict, which is conflict with
others that are at the same peer level as you, or vertical conflict, which is conflict with a
manager or a subordinate. When the conflict is inter-group, two teams are involved in a
deadlock, endangering the successful completion of a project due to differences in group
dynamics.
 Competition for Resources.

 Task Interdependence.
 Jurisdictional Ambiguity.
 Status Struggles.
Mental Health Concerns

Conflict within an organization can cause members to become frustrated if they feel as if
there’s no solution in sight, or if they feel that their opinions go unrecognized by other group
members. As a result, members become stressed, which adversely affects their professional
and personal lives
Decrease in Productivity
When an organization spends much of its time dealing with conflict, members take time away
from focusing on the core goals they are tasked with achieving. Conflict causes members to
focus less on the project at hand and more on gossiping about conflict or venting about
frustrations. As a result, organizations can lose money, donors and access to essential
resources.
Employee Turnover Impacts
Organization members who are increasingly frustrated with the level of conflict within an
organization may decide to end their membership. This is especially detrimental when
members are a part of the executive board or heads of committees. Once members begin to
leave, the organization has to recruit new members and appoint acting board members. In
extreme cases, where several members leave or an executive board step down, organizations
risk dissolution.
Strategies to avoid conflict:
Here are 5 suggestions to help avoid or minimize workplace conflicts:
1. Communicate
Disputes often occur due to poor communication or no communication. Employees need clear
direction and when this has not been effectively communicated to them, conflicts often arise.
Employees want to know what their responsibilities are or what their job entails and how they
are expected to perform their job. Communication between those in a position of authority,
such as a manager or supervisor and employees must be clear, and concise. This is sure to help
reduce conflicts and anxiety within the workplace. Additionally setting a standard of good
communication will have a positive impact on the way employees communicate with each
other. Many conflicts can be avoided by employees being on the same page about what they
are doing.
2. Don’t Ignore It
The worst thing that can be done is to ignore that there is any sort of conflict. Even if there
hasn’t been a dispute, in most cases tension can be felt. Conflict like this usually does not go
away on its own. Left unaddressed conflict often intensifies. Once you notice that there is
tension, avoid the possibility of it becoming worse by addressing it head-on. Although it will
likely be uncomfortable, it would be more uncomfortable attempting to deal with the conflict
once things have escalated.
3. Make It Easy to File A Formal Complaint
You should make it easy for employees to file a formal complaint, if necessary. There should
be a process for them to follow so that they are comfortable making a complaint. The process
should be as simple as them filling out a complaint form and submitting it to the HR Manager
so that they can determine what further action is needed. This will prevent resentment from
building and possible complaints from getting out of hand.
4. Create Team Engagement

Creating an atmosphere where employees are encouraged to work together promotes employee
engagement. This will lead to employees learning to rely on each other and get to know each
other’s strengths and weaknesses. Engagement will help employees become more at ease with
co-workers.
5. Treat Every Employee Fairly

You wouldn’t think that this would have to be mentioned but unfortunately, without knowing
it, some employers may show favoritism. Employers, managers, and supervisors must remain
neutral and treat employees fairly to avoid workplace conflicts.
Manage Expectations
It would be unrealistic to assume that conflicts in the workplace will never occur, but knowing
how to avoid conflicts is helpful in preventing and minimizing the number of conflicts that
occur. Most employers understand how disruptive conflicts can be to their business and will do
what they can to reduce them. This article has provided some simple steps to get started. In
most cases, some of these steps are already being implemented. Why not try also incorporate
the things that you are not currently implementing to see if you can further reduce the number
of conflicts that you are experiencing? There is little to lose and everything to gain if the
suggestions work to the advantage of everyone involved.
 Strategies for Managing Stress

 Stress experienced by the employees in their job has negative impact on their health,
performance and their behaviors in the organization. Thus, stress needs to be managed
effectively so as to set off these harmful consequences. Strategies for managing stress
are as follows-
 Organizational strategies for managing stress
 Encouraging more of organizational communication with the employees so that there is
no role ambiguity/conflict. Effective communication can also change employee views.
Managers can use better signs and symbols which are not misinterpreted by the
employees.
 Encourage employees’ participation in decision-making. This will reduce role stress.
 Grant the employees greater independence, meaningful and timely feedback, and
greater responsibility.
 The organizational goals should be realistic, stimulating and particular. The employees
must be given feedback on how well they are heading towards these goals.
 Encourage decentralization.
 Have a fair and just distribution of incentives and salary structure.
 Promote job rotation and job enrichment.
 Create a just and safe working environment.
 Have effective hiring and orientation procedure.
 Appreciate the employees on accomplishing and over-exceeding their targets

UNIT-IV
Group Dynamics: Types, Formation of Groups and Group Cohesiveness
Power is the ability to influence other people. It refers to the capacity to affect the behaviour of
the subordinate with the control of resources. It is an exchange relationship that occurs in
transactions between an agent and a target. The agent is the person who uses the power and
target is the receipt of the attempt to use power.
Distinction between Power, Authority and Influence
Power is the ability to influence someone else. Influence is the process of affecting the
thoughts, behavior and feelings of another person. Authority is the right to influence another
person. Authority is a legitimate right to influence others.
(1) Authority is right to influence others but power is ability to influence people.
(2) Authority is legitimate while power is not.
(3) Authority confers legitimacy to power but power itself need not be legitimate
Types of power:
According to French and Raven, a manager drives power from five sources : Reward,
Coercive, Legitimate, Referent and Expert power.
Reward Power
It is based on the agent's/manager's ability to control rewards the target/employee wants. The
common, e.g., of it are managers control rewards of salary increases, bonuses and promotions.
This power is based on old saying that 'wealth is power'.
Coercive Power
It is opposite of reward power. It is based on a manager's ability to cause an unpleasant
experience for its people. In organizational situation, it may be in the form of action for or
threat for dismissal, suspension, or demotion, for the people working in organization.
Legitimate Power
It is based on position and mutual agreement. Both the agent and target agree that the agent has
the right to influence the employees. It is in the form of authority which is delegated to the
positions of organizational members.
Referent Power
It is an elusive power that is based on interpersonal attraction. Charismatic individuals are
often thought to have referent power. Here, people take somebody as ideal and behave
accordingly upto a certain stage.
Expert Power
It exists when the agent has information or knowledge that the target needs. It is based on the
proverb, "knowledge in power". Three conditions to be fulfilled are :
(1) The target must trust that the information given by the agent is accurate and correct.
(2) The information should be relevant and useful to the target.
(3) The target must consider the agent as an expert.
Meaning of Organizational Politics
It means the use of power and influences in organizations. Actions not officially sanctioned or
acceptable by an organization that are taken to influence others in order to meet personal goals
refer to politics.
Reasons for Organizational Politics
There are many reasons that contribute to political behaviour in organizations. Some of them
are
1. Clear Goals: Organizations are human groups work for achieving certain goals. The more
unclear and complex the goals are, the more politics will be.
2. Discretionary Authority: Organizations provide position with discretionary authority that
is used based on individual judgement.
3. Autocratic Decisions: The leader dictates the decisions or orders and the subordinates have
no right to disobey. This leads to low employee morale and doubts about what the manger-
leader decides. Therefore, in order to safeguard their interests, workers involved in politics by
forming coalitions and associations.
Meaning of Organizational Politics

It means the use of power and influences in organizations. Actions not officially sanctioned or
acceptable by an organization that are taken to influence others in order to meet personal goals
refer to politics.
Reasons for Organizational Politics
There are many reasons that contribute to political behaviour in organizations. Some of them
are
1. Clear Goals: Organizations are human groups work for achieving certain goals. The more
unclear and complex the goals are, the more politics will be.
2. Discretionary Authority: Organizations provide position with discretionary authority that is
used based on individual judgement.
3. Autocratic Decisions: The leader dictates the decisions
Empowerment
Empowerment is the sharing of power in such a way that individuals learn to believe in their
ability to do the job. Empowerment has four dimensions:
1. Meaning: A fit between the work role and the employees’ values and beliefs.
2. Competence: A belief that one has the ability to do the job well.
3. Self-determination: Having control over the way one does one's work.
4. Impact: The belief that one's job makes a difference within the organization.
Empowerment:
Empowerment is the process of giving employees in the organization the power, authority,
responsibility, resources, freedom to take decisions and solve work related problems. In order
to take such initiatives and decisions, they are given adequate authority and resources.
Empowerment is the process of shifting authority and responsibility to other in the
organizational setting. Empowerment takes place when higher management transfers the
power, authority, and responsibility to lower-level employees. Shifting of authority and
responsibility to the workers is made to take over the charge of the work they do
The need for employee’s empowerment arises because of the following factors:
• Increasing pace of change, turbulence of environment and the changing expectations of
customers requires a speedy and flexible response which is incompatible with the old-style
command and control model of organizational functioning.
• Organizations require cross-functional working and greater integration in their processes if
they are to meet the customers’ needs. Such co¬operation can be achieved through
empowerment
• Employees now have greater awareness and are more concerned with the satisfaction of
higher-level needs. Empowerment can be used to satisfy such needs of employees and thus
motivate them.
• Empowerment can provide opportunities to the employees at lower levels to develop their
competencies. Thus, it can be used as a source of managerial talent for the organization.
A group is a collective of mutually independent individuals with separate goals who are
brought together by common interests and experience. Even though everyone shares
information and resources with other group members, each member is responsible for their
own work.
There are two types of groups:
 formal group, created by the management to perform a particular task
 informal group, formed naturally by employees for different reasons
A team is an interdependent group of individuals who share responsibility and are focused on a
common goal. People in a team have a mutual understanding with other members. By working
together, they tend to maximize each other’s strengths and minimize weaknesses. Unlike a
group, where each member is expected to contribute separately, the most important
characteristic of a team is synergy: the whole is greater than the sum of its parts.
Here’s the table with differences between groups and teams:

BASIS GROUP TEAM
Meaning A group is made when A team is that group of

independent individuals, having interdependent individuals, who join
something in common, come hands for the realization of a specific
together. goal.
Accountability Individual Individual and mutual
Decision-Making Group members Team leader

Authority
Individual Growth Proper training but limited Skill development and application
application
Focus On Individual goals Team goals
Dependency Independent members Interdependent members
Specific Roles No Yes

Assigned to
Individuals
Interpersonal Not necessary Compulsory

Understanding
Leadership Unstructured Structured
Level of Trust Low High
Level of Low High

Commitment

BASIS GROUP TEAM
Conflict Weak Strong

Management
Synergy Neutral or negative Positive
A group may be defined as set of people who have the same interests or objectives and who
organize themselves to work together and strive towards a common goal.
According to Shaw, “Group is defined as two or more persons who are interacting with each
other in such a manner that each person influences and is influenced by each other.”
A group is characterized by the following features:
i. a common motive or goal and shared attitudes
ii. a hierarchical group structure i.e., clearly defined role for each member
iii. standard norms of behavior
iv. Influence of interaction with each other.
Groups exist in every organization and it is believed that “an organization will function best
when its personnel function not as individuals but as members of highly effective work groups
with high performance goals.”
As groups are essential for organizational functioning, they are either created by the
organization itself in order to facilitate division of labor for achieving its sub-goals and
ultimately its ultimate goal or groups are created automatically, as a result of the socio-
psychological factors at the workplace. The study of group dynamics provides understanding
of groups.
The term ‘group dynamics’ is formed by the combination of the two words ‘group’ and
‘dynamics.’ While ‘group’ refers to two or more individuals sharing an explicit socio-
psychological relationship, ‘dynamics’ refers to the forces within the group that shape the
patterns of interaction between group members i.e., the power or capacity of a group member
to change or influence change in other members according to changed circumstances.
There are 3 views about group dynamics:
1. First view describes how a group should be organized and conducted, stressing more on
democratic leadership and members’ participation.
2. Second view describes the techniques used in group dynamics, for instance, role playing,
leaderless groups, brainstorming, group therapy, transactional analysis etc.
3. Third view describes group dynamics from the perspective of internal nature of groups; the
structure, processes, reasons and methods of their formation, their influence within the group,
with other groups and with the organization.
The three views can be summarized by describing group dynamics as a study of the nature and
development of groups.
Types of Groups:
There are two types of groups in every organization:
Formal groups and Informal groups
1. Formal Groups:
An organization creates and maintains formal groups to fulfill needs or tasks that are included
in its mission or organizational goals. In order to achieve its ultimate goal, an organization
creates sub-goals which it assigns to different units or departments. These formal groups
created by the organization itself are regulated by the organizational rules and regulations.
Life of the formal groups may be permanent or temporary depending upon the specific
objectives to be fulfilled. Examples of permanent formal groups are board of directors,
managing committees etc. and temporary formal groups are exemplified by task force or
temporary committees created to fulfill certain specified objectives.
2. Informal Groups:
Informal groups are created voluntarily and spontaneously due to the socio- psychological
forces operating in the workplace. Individuals working together often develop liking for each
other and socialize with each other to overcome the psychological fatigue, boredom and
monotony associated with their work.
Informal groups are formed as they satisfy the social needs of individuals while at work. As
they are not created by the organization, the working of informal groups is not regulated by
organizational rules and regulations.
As informal groups are smaller in size as compared to formal groups group-cohesiveness is

easy to maintain. In-spite of this, informal groups are not very stable. The instability is
primarily due to the personality differences between the members of the informal group.
An individual having the capacity to fulfill maximum needs of group members emerges as the
informal leader and remains till the members think him capable of it. They are neither formed
nor abolished by the management, rather if the management ever tries to abolish informal

groups, then it may lead to alienation of employees as a protest against the management’s
actions.
Jeff Lane was at his wits end. As a newly appointed production manager, he had tried virtually
everything to get his workers to achieve the production targets. The equipment was operating
properly, and the group had the training and experience to meet expectations, yet it was not
performing well. What was wrong? And what could he do to correct the situation?
Managers and supervisors frequently face such a dilemma. What Jeff Lane and other
managers/supervisors sometimes fail to realize is that within every organization there are often
informal group pressures that influence and regulate individual behavior.
Informal groups formulate an unspoken set of standards establishing acceptable behaviour In

Jeff’s department, the informal group may have established a norm below that set by the
organization. They were working to reach the target set by their group as they had decided that
the targets set by their managers was not acceptable to their group members.
Dynamics of informal Groups:
Informal groups almost always arise if opportunities exist. If management prescribes

production norms that the group considers unfair, the group’s recourse is to adopt less
demanding norms and to use its ingenuity to discover ways in which it can sabotage
management’s imposed standards. Thus they counteract the tendency of the organization to get
more output from the workers.
Informal groups have a powerful influence on the effectiveness of an organization. But the
informal group’s role is not limited to resistance. The impact of the informal group upon the
larger formal group depends on the norms that the informal group sets. So the informal group
can make the formal organization more effective, too.
A norm is an implied agreement among the group’s membership regarding how members in
the group should behave. From the perspective of the formal group, norms generally fall into
three categories-positive, negative, and neutral,’ In other words, norms either support, obstruct,
or have no effect on the aims of the larger organization.
For example, if the informal group in Jeff’s shop set a norm supporting high; output, that norm
would have been more powerful than any attempt by Jeff to force compliance with the
standard. The reason is simple, yet profound.
The norm is of the group members own choice, and is not one imposed upon them, There is a
big motivational difference between being told what to do and being anxious to do it.
If Jeff had been aware of group dynamics, he might have realized that informal groups can be
either his best friend or his worst enemy. He should’ have been sensitive to the informal groups
within his area and he should have cultivated their goodwill and cooperation and made use of
the informal group leadership.
That is, he should have wooed the leadership of the informal group and enlisted the support of
its membership to achieve the formal organization’s aims.
For harnessing the power of informal groups one should have:
1. An understanding of group dynamics and,
2. An ability to bring about changes in informal group norms that positively reinforce the
formal organization’s goals.
Formation of Informal Work Groups:
Individuals are employed by an organization to perform specific functions. The organization is

only concerned with the job done by an individual-the output. Because people have needs that
extend beyond the work itself, informal groups develop to fill certain emotional, social, and
psychological needs. The degree to which a group satisfies its members’ needs, determines the
limits within which individual members of the group will allow their behavior to be controlled
by the group.
Sense of Belonging:
Several major functions are served by informal groups. For example, the group serves as a
means of satisfying the affiliation needs of its members for friendship and support. People need
to belong, to be liked, to feel a part of something. Because the informal group can withhold this
attractive reward, it earns the power to exploit group members to comply with its norms.
Identity and self esteem:
Groups also provide a means of developing, enhancing, and confirming a person’s sense of
identity and self-esteem. Although many organizations attempt to recognize these higher needs,
the nature of some jobs-their technology and environment-precludes this from happening. The
long assembly line or endless rows of desks reinforce a feeling of depersonalization.
Stress Reduction:
By developing a consensus about their feelings, group members are able to reduce the anxiety
associated with their jobs. For instance, several individuals may share the feeling that their
supervisor is a slave driver or that their working conditions are inadequate.
All for One, One for All:
Joining forces in a small group makes the members feel stronger, less anxious, and less
insecure in the face of a perceived threat. As long as needs exist that are not served by the
formal organization, informal groups will form to fill the gap. Since the group fills many
important needs for its members, it influences member behavior.
Leadership of Informal Work Groups:

Informal groups possess certain characteristics that can be used to advantage. While many of
these characteristics are similar to those of formal organizations, others are unique. One
attribute of informal groups is rotational leadership.
The informal leader emerges as the individual possessing qualities that the other members
perceive as critical to the satisfaction of their specific needs at the moment; as the needs
change so does the leader. Only rarely does a single individual possess all of the leadership
characteristics needed to fill the various needs of the group.
Unlike the formally appointed leader who has a defined position from which to influence
others, the informal leader does not possess formal power. If the informal leader fails to meet
the group’s expectations, he or she is deposed and replaced by another.
The supervisor can use several strategies to affect the leadership and harness the power of
informal groups. One quick and sure method of changing a group is to cause the leader to
change one or more of his or her characteristics. Another is to replace the leader with another
person.
One common ploy is to systematically rotate out of the group its leaders and its key members.
Considering the rotational nature of leadership, a leader may emerge who has aims similar to
the formal goals of the organization.
The supervisor can attempt to ‘co-opt’ informal leaders by absorbing them into the leadership
or the decision-making structure of the formal group and thereby make the formal
organizations more stable. However, a leader may lose favor with the group because of this
association with management, and group members will most likely select another leader.
Five Dysfunctions of a Team
The Five Dysfunctions of a Team outlines the root causes of politics and dysfunction on the
teams where you work, and the keys to overcoming them. Counter to conventional wisdom, the
causes of dysfunction are both identifiable and curable. However, they don't die easily. Making
a team functional and cohesive requires levels of courage and discipline that many groups
cannot seem to muster.
1. Absence of Trust
The fear of being vulnerable with team members prevents the building of trust within the team.
This occurs when team members are reluctant to be vulnerable with one another and are
unwilling to admit their mistakes, weaknesses or needs for help. Without a certain comfort
level among team members, a foundation of trust is impossible.
The Role of the Leader here is to Go First!
2. Fear of Conflict

The desire to preserve artificial harmony stifles the occurrence of productive, ideological
conflict.
Teams that are lacking on trust are incapable of engaging in unfiltered, passionate debate about
key issues, causing situations where team conflict can easily turn into veiled discussions and
back channel comments. In a work setting where team members do not openly air their
opinions, inferior decisions are the result.
The Role of the Leader here is to Mine for Conflict.
3. Lack of Commitment
The lack of clarity or buy-in prevents team members from making decisions they will stick to.
Without conflict, it is difficult for team members to commit to decisions, creating an

environment where ambiguity prevails. Lack of direction and commitment can make
employees, particularly star employees, disgruntled.
The Role of the Leader here is to Force Clarity and Closure.
4. Avoidance of Accountability
The need to avoid interpersonal discomfort prevents team members from holding one another
accountable for their behaviors and performance.
When teams don't commit to a clear plan of action, even the most focused and driven
individuals hesitate to call their peers on actions and behaviors that may seem
counterproductive to the overall good of the team.
The Role of the Leader here is to Confront Difficult Issues.
5. Inattention to Results
The pursuit of individual goals and personal status erodes the focus on collective success.
Team members naturally tend to put their own needs (ego, career development, recognition,
etc.) ahead of the collective goals of the team when individuals aren't held accountable. If a
team has lost sight of the need for achievement, the business ultimately suffers.
The Role of the Leader here is to Focus on Collective Outcomes.
Addressing the Dysfunctions
Like it or not, all teams are potentially dysfunctional. This is inevitable because they are made
up of fallible, imperfect human beings. However, facing dysfunction and focusing on
teamwork is particularly critical at the top of an organization because the executive team sets
the tone for how all employees work with one another.
Counter to conventional wisdom, the causes of dysfunction are both identifiable and curable.
However, they don't die easily. Making a team functional and cohesive requires levels of
courage and discipline that many groups cannot seem to muster.
To begin improving your team and to better understand the level of dysfunction you are facing,
ask yourself these simple questions:
 Do team members openly and readily disclose their opinions?
 Are team meetings compelling and productive?
 Does the team come to decisions quickly and avoid getting bogged down by consensus?
 Do team members confront one another about their shortcomings?
 Do team members sacrifice their own interests for the good of the team?
Although no team is perfect and even the best teams sometimes struggle with one or more of
these issues, the finest organizations constantly work to ensure that their answers are "yes." If
you answered "no" to many of these questions, your team may need some work.
The first step toward reducing politics and confusion within your team is to understand that
there are five dysfunctions to contend with, and address each that applies, one by one.
The Rewards
Striving to create a functional, cohesive team is one of the few remaining competitive
advantages available to any organization looking for a powerful point of differentiation.
Functional teams avoid wasting time talking about the wrong issues and revisiting the same
topics over and over again because of lack of buy-in. Functional teams also make higher
quality decisions and accomplish more in less time and with less distraction and frustration.
Successful teamwork is not about mastering subtle, sophisticated theories, but rather about
embracing common sense with uncommon levels of discipline and persistence. Ironically,
teams succeed because they are exceedingly human. By acknowledging the imperfections of
their humanity, members of functional teams overcome the natural tendencies that make
teamwork so elusive.
Exercises
To build trust in your team, you may like to use the personal histories exercise. Click here to
access it.
You may also like to complete the team effectiveness exercise. The purpose of this exercise is
to give team members a forum for providing one another with focused, direct and actionable
feedback about how their individual behavior can improve the performance of the team. Click
here to access it.
Teamwork in the Workplace
1. What is a team, and what makes a team effective?

Teamwork has never been more important in organizations than it is today. Whether you work
in a manufacturing environment and utilize self-directed work teams, or if you work in the
“knowledge economy” and derive benefits from collaboration within a team structure, you are
harnessing the power of a team.
A team, according to Katzenbach and Smith in their Harvard Business Review (HBR) article
“The Discipline of Teams,” is defined as “people organized to function cooperatively as a
group”.
Katzenbach and Smith, “The Discipline of Teams”, Harvard Business Review, July 2005.
The five elements that make teams function are:
 Common commitment and purpose
 Specific performance goals
 Complementary skills
 Commitment to how the work gets done
 Mutual accountability
A team has a specific purpose that it delivers on, has shared leadership roles, and has both
individual and mutual accountabilities. Teams discuss, make decisions, and perform real work
together, and they measure their performance by assessing their collective work products.
Wisdom of Teams reference. This is very different from the classic working group in an
organization (usually organized by functional area) in which there is a focused leader,
individual accountabilities and work products, and a group purpose that is the same as the
broader organizational mission. Think of the finance organization or a particular business unit
in your company—these are, in effect, larger working groups that take on a piece of the
broader organizational mission. They are organized under a leader, and their effectiveness is
measured by its influence on others within the business (e.g., financial performance of the
business.)
Finance Working Group
Smart managers understand that not all of a company’s influential relationships appear as part
of the organization chart. Consider a publishing company that might have a lead finance head
for each group, such as adult fiction, nonfiction, young adult, and children’s book divisions. A
finance team working group would help spread best practices and lead to more cohesive
operations for the entire organization. (Credit: thetaxhaven /flickr / Attribution 2.0 Generic
(CC BY 2.0))

So, what makes a team truly effective? According to Katzenbach and Smith’s “Discipline of
Teams,” there are several practices that the authors have observed in successful teams. These
practices include:
Establish urgency, demanding performance standards, and direction. Teams work best when
they have a compelling reason for being, and it is thus more likely that the teams will be
successful and live up to performance expectations. We’ve all seen the teams that are brought
together to address an “important initiative” for the company, but without clear direction and a
truly compelling reason to exist, the team will lose momentum and wither.
Select members for their skill and skill potential, not for their personality. This is not always as
easy as it sounds for several reasons. First, most people would prefer to have those with good
personalities and positive attitudes on their team in order to promote a pleasant work
environment. This is fine, but make sure that those individuals have the skill sets needed (or
the potential to acquire/learn) for their piece of the project. The second caveat here is that you
don’t always know what skills you need on a project until you really dig in and see what’s
going on. Spend some time up front thinking about the purpose of the project and the
anticipated deliverables you will be producing, and think through the specific types of skills
you’ll need on the team.
Pay particular attention to first meetings and actions. This is one way of saying that first
impressions mean a lot—and it is just as important for teams as for individuals. Teams will
interact with everyone from functional subject-matter experts all the way to senior leadership,
and the team must look competent and be perceived as competent. Keeping an eye on your
team’s level of emotional intelligence is very important and will enhance your team’s
reputation and ability to navigate stakeholders within the organization.
Set some clear rules of behavior. I have been through many meetings and team situations in
which we have rushed through “ground rules” because it felt like they were obvious—and
everyone always came up with the same list. It is so critical that the team takes the time up
front to capture their own rules of the road in order to keep the team in check. Rules that
address areas such as attendance, discussion, confidentiality, project approach, and conflict are
key to keeping team members aligned and engaged appropriately.
Set and seize upon a few immediate performance-oriented tasks and goals. What does this
mean? Have some quick wins that make the team feel that they’re really accomplishing
something and working together well. This is very important to the team’s confidence, as well
as just getting into the practices of working as a team. Success in the larger tasks will come
soon enough, as the larger tasks are really just a group of smaller tasks that fit together to
produce a larger deliverable.
Challenge the group regularly with fresh facts and information. That is, continue to research
and gather information to confirm or challenge what you know about your project. Don’t
assume that all the facts are static and that you received them at the beginning of the project.
Often, you don’t know what you don’t know until you dig in. I think that the pace of change is
so great in the world today that new information is always presenting itself and must be
considered in the overall context of the project.
Spend lots of time together. Here’s an obvious one that is often overlooked. People are so busy
that they forget that an important part of the team process is to spend time together, think
together, and bond. Time in person, time on the phone, time in meetings—all of it counts and
helps to build camaraderie and trust.
Exploit the power of positive feedback, recognition, and reward. Positive reinforcement is a
motivator that will help the members of the team feel more comfortable contributing. It will
also reinforce the behaviors and expectations that you’re driving within the team. Although
there are many extrinsic rewards that can serve as motivators, a successful team begins to feel
that its own success and performance is the most rewarding.
Collaboration is another key concept and method by which teams can work together very
successfully. Bringing together a team of experts from across the business would seem to be a
best practice in any situation. However, Gratton and Erickson, in their article Eight Ways to
Build Collaborative Teams, found that collaboration seems to decrease sharply when a team is
working on complex project initiatives. In their study, they examined 55 larger teams and
identified those with strong collaboration skills, despite the level of complexity. There were
eight success factors for having strong collaboration skills:
 “Signature” relationship practices
 Role models of collaboration among executives
 Establishment of “gift” culture, in which managers mentor employees
 Training in relationship skills
 A sense of community
 Ambidextrous leaders—good at task and people leadership
 Good use of heritage relationships
 Role clarity and talk ambiguity
As teams grow in size and complexity, the standard practices that worked well with small
teams don’t work anymore. Organizations need to think about how to make collaboration
work, and they should leverage the above best practices to build relationships and trust.
1. What is the definition of a team?
2. Name some practices that can make a team more successful.
1. What is a team, and what makes teams effective?

A team is defined as “people organized to function cooperatively as a group.” Some of the
characteristics of a team are that it has a common commitment and purpose, specific
performance goals, complementary skills, commitment to how the work gets done, and mutual
accountability.
Some of the practices that make a team effective are that they have a sense of urgency and
direction; they set clear rules of behavior; they spend lots of time together; and they utilize
feedback, recognition, and reward.
UNIT- V
LEADING HIGH PERFORMANCE

High-performance teams (HPTs) is a concept within organization development referring to
teams, organizations, or virtual groups that are highly focused on their goals and that achieve
superior business results. High-performance teams outperform all other similar teams and they
outperform expectations given their composition.
A high-performance team can be defined as a group of people with specific roles and
complementary talents and skills, aligned with and committed to a common purpose, who
consistently show high levels of collaboration and innovation, produce superior results, and
extinguish radical or extreme opinions that could be damaging. The high-performance team is
regarded as tight-knit, focused on their goal and have supportive processes that will enable any
team member to surmount any barriers in achieving the team's goals.
Within the high-performance team, people are highly skilled and are able to interchange their
roles. Also, leadership within the team is not vested in a single individual. Instead the
leadership role is taken up by various team members, according to the need at that moment in
time. High-performance teams have robust methods of resolving conflict efficiently, so that
conflict does not become a roadblock to achieving the team's goals. There is a sense of clear
focus and intense energy within a high-performance team. Collectively, the team has its own
consciousness, indicating shared norms and values within the team. The team feels a strong
sense of accountability for achieving their goals. Team members display high levels of mutual
trust towards each other.[2]
To support team effectiveness within high-performance teams, understanding of individual

working styles is important. This can be done by applying Belbin High Performing
Teams, DISC assessment, the Myers-Briggs Type Indicator and the Herrmann Brain
Dominance Instrument to understand behavior, personalities and thinking styles of team
members.

Using Tuckman's stages of group development as a basis, a HPT moves through the stages of
forming, storming, norming and performing, as with other teams. However, the HPT uses
the storming and norming phase effectively to define who they are and what their overall goal
is, and how to interact together and resolve conflicts. Therefore, when the HPT reaches the
performing phase, they have highly effective behaviours that allow them to overachieve in
comparison to regular teams. Later, leadership strategies (coordinating, coaching, empowering,
and supporting) were connected to each stage to help facilitate teams to high performance.
Characteristics
Different characteristics have been used to describe high-performance teams. Despite varying
approaches to describing high-performance teams there is a set of common characteristics that
are recognised to lead to success
Participative leadership – using a democratic leadership style that involves and engages team
members
Effective decision-making – using a blend of rational and intuitive decision making methods,
depending on that nature of the decision task
Open and clear communication – ensuring that the team mutually constructs shared meaning,
using effective communication methods and channels
Valued diversity – valuing a diversity of experience and background in team, contributing to a

diversity of viewpoints, leading to better decision making and solutions
Mutual trust – trusting in other team members and trusting in the team as an entity
Managing conflict – dealing with conflict openly and transparently and not allowing grudges to
build up and destroy team morale
Clear goals – goals that are developed using SMART criteria; also each goal must have personal
meaning and resonance for each team member, building commitment and engagement
Defined roles and responsibilities – each team member understands what they must do (and
what they must not do) to demonstrate their commitment to the team and to support team
success
Coordinative relationship – the bonds between the team members allow them to seamlessly
coordinate their work to achieve both efficiency and effectiveness
Positive atmosphere – an overall team culture that is open, transparent, positive, future-focused
and able to deliver success
There are many types of teams in organizations as well. The most traditional type of team is
the manager-led team. Within this team, a manager fits the role of the team leader and is
responsible for defining the team goals, methods, and functions. The remaining team members
are responsible for carrying out their assigned work under the monitoring of the manager. Self-
managing or self-regulating teams operate when the “manager” position determines the overall
purpose or goal for the team and the remainder of the team are at liberty to manage the
methods by which are needed to achieve the intended goal. Self-directing or self-designing
teams determine their own team goals and the different methods needed in order to achieve the
end goal. This offers opportunities for innovation, enhance goal commitment and motivation.
Finally, self-governing teams are designed with high control and responsibility to execute a
task or manage processes. Board of directors is a prime example of self-governing team.
Given the importance of team-based work in today's economy, much focus has been brought in
recent years to use evidence-based organizational research to pinpoint more accurately to the
defining attributes of high-performance teams. The team at MIT's Human Dynamics
Laboratory investigated explicitly observable communication patterns and
found energy, engagement, and exploration to be surprisingly powerful predictive indicators
for a team's ability to perform.
Other researchers focus on what supports group intelligence and allows a team to be smarter
than their smartest individuals. A group at MIT's Center for Collective Intelligence, e.g., found
that teams with more women and teams where team members share "airtime" equally showed
higher group intelligence scores.
The Fundamental Interpersonal Relations Orientation – Behavior (FIRO-B) questionnaire is a

resource that could help the individual help identify their personal orientation. In other words,
the behavioral tendency a person in different environments, with different people. The theory
of personal orientation was initially shared by Schultz (1958) who claimed personal orientation
consists of three fundamental human needs: need for inclusion, need for control, and the need
for affection. The FIRO-B test helps an individual identify their interpersonal compatibilities
with these needs which can be directly correlated to their performance in a high-performance
team.
Historical development of concept
First described in detail by the Tavistock Institute, UK, in the 1950s, HPTs gained popular
acceptance in the US by the 1980s, with adoption by organizations such as General
Electric, Boeing, Digital Equipment Corporation (now HP), and others. In each of these cases, major
change was created through the shifting of organizational culture, merging the business goals of
the organization with the social needs of the individuals. Often in less than a year, HPTs
achieved a quantum leap in business results in all key success dimensions, including customer,
employee, shareholder and operational value-added dimensions.
Due to its initial success, many organizations attempted to copy HPTs. However, without
understanding the underlying dynamics that created them, and without adequate time and
resources to develop them, most of these attempts failed. With this failure, HPTs fell out of

general favor by 1995, and the term high-performance began to be used in a promotional
context, rather than a performance-based one.
Recently, some private sector and government sector organizations have placed new focus on
HPTs, as new studies and understandings have identified the key processes and team dynamics
necessary to create all-around quantum performance improvements. With these new tools,
organizations such as Kraft Foods, General Electric, Exelon, and the US government have focused
new attention on high-performance teams.
In Great Britain, high-performance workplaces are defined as being those organizations where
workers are actively communicated with and involved in the decisions directly affecting the
workers. By regulation of the UK Department of Trade and Industry, these workplaces will be
required in most organizations by 2008.
Job design and Goal setting for High performance
Job design follows job analysis i.e. it is the next step after job analysis. It aims at outlining and
organising tasks, duties and responsibilities into a single unit of work for the achievement of
certain objectives. It also outlines the methods and relationships that are essential for the
success of a certain job. In simpler terms it refers to the what, how much, how many and the
order of the tasks for a job/s.
Job design essentially involves integrating job responsibilities or content and certain
qualifications that are required to perform the same. It outlines the job responsibilities very
clearly and also helps in attracting the right candidates to the right job. Further it also makes
the job look interesting and specialised.
There are various steps involved in job design that follow a logical sequence, those that were
mentioned earlier on. The sequence is as follows:
The whole process of job design is aimed to address various problems within the organisational
setup, those that pertain to ones description of a job and the associated relationships. More
specifically the following areas are fine tuned:
Checking the work overload.
Checking upon the work under load.
Ensuring tasks are not repetitive in nature.
Ensuring that employees don not remain isolated.
Defining working hours clearly.
Defining the work processes clearly.

The above mentioned are factors that if not taken care of result into building stress within the
employees.
Benefits of Job Design
The following are the benefits of a good job design:
1. Employee Input: A good job design enables a good job feedback. Employees have the
option to vary tasks as per their personal and social needs, habits and circumstances in
the workplace.
2. Employee Training: Training is an integral part of job design. Contrary to the

philosophy of “leave them alone’ job design lays due emphasis on training people so
that are well aware of what their job demands and how it is to be done.
3. Work / Rest Schedules: Job design offers good work and rest schedule by clearly
defining the number of hours an individual has to spend in his/her job.
4. Adjustments: A good job designs allows for adjustments for physically demanding jobs
by minimising the energy spent doing the job and by aligning the manpower
requirements for the same.
Job design is a continuous and ever evolving process that is aimed at helping employees make
adjustments with the changes in the workplace. The end goal is reducing dissatisfaction,
enhancing motivation and employee engagement at the workplace.
Quality of Work Life

The term Quality of Work Life (QWL) aims at changing the entire organizational climate by
humanizing work, individualizing organizations and changing the structural and managerial
systems. It takes into consideration the socio-psychological needs of the employees. It seeks to
create such a culture of work commitment in the organizations which will ensure higher
productivity and greater job satisfaction for the employees.
Quality of work life refers to the favorableness or unfavorableness of the job environment of an
organization for its employees. It is generic term which covers a person’s feelings about every
dimension of his work e.g. economic incentives and rewards, job security, working conditions,
organizational and interpersonal relationships etc. The term QWL has different meanings for
different people. A few important definitions of Quality of Work Life (QWL) are as follows:
 According to Harrison: “Quality of Work Life is the degree to which work in an

organization contributes to material and psychological well being of its members.”
 According to D.S.Cohan “Quality of Work Life is a process of joint decision making,
collaborations and building mutual respect between management and employees.”
 According to the American Society of Training and Development “Quality of Work
Life is a process of work organization which enables its members at all levels to
participate actively and effectively in shaping the organizations’ environment, methods
and outcomes. It is a value based process which is aimed towards meeting the twin
goals of enhanced effectiveness of the organization and improved quality of life at work
for the employees”.
Quality of Work Life influences the productivity of the employees. Researchers have proved
that good QWL leads to psychologically and physically healthier employees with positive
feelings.
Richard E. Walton explains quality of work life in terms of eight broad conditions of
employment that constitute desirable quality of work life. He proposed the same criteria for
measuring QWL. Those criteria include:
1. Adequate and Fair Compensation: There are different opinions about adequate
compensation. The committee on Fair Wages defined fair wage as” . . . the wage which
is above the minimum wage, but below the living wage.”
2. Safe and Healthy Working Conditions: Most of the organizations provide safe and
healthy working conditions due to humanitarian requirements and/or legal
requirements. In fact , these conditions are a matter or enlightened self interest.
3. Opportunity to Use and Develop Human Capacities: Contrary to the traditional
assumptions, QWL is improved… “to the extent that the worker can exercise more
control over his or her work, and the degree to which the job embraces and entire
meaningful task” … but not a part of it. Further, QWL provides for opportunities like
autonomy in work and participation in planning in order to use human capabilities.
4. Opportunity for Career Growth: Opportunities for promotions are limited in case of all
categories of employees either due to educational barriers or due to limited openings at
the higher level. QWL provides future opportunity for continued growth and security
by expanding one’s capabilities, knowledge and qualifications.
5. Social Integration in the Work Force: Social integration in the work force can be
established by creating freedom from prejudice, supporting primary work groups, a
sense of community and inter-personnel openness, legalitarianism and upward mobility.
6. Constitutionalism in the Work Organization: QWL provides constitutional protection to
the employees only to the level of desirability as it hampers workers. It happens
because the management’s action is challenged in every action and bureaucratic
procedures need to be followed lat that level. Constitutional protection is provided to
employees on such matters as privacy, free speech, equity and due process.
7. Work and Quality of Life: QWL provides for the balanced relationship among work,
non-work and family aspects of life. In other words family life and social life should
not be strained by working hours including overtime work, work during inconvenient
hours, business travel, transfers, vacations etc.
8. Social Relevance of Work: QWL is concerned about the establishment of social
relevance to work in a socially beneficial manner. The workers’ self esteem would be
high if his work is useful to the society and the vice versa is also true.

To summarize, Quality of Work Life is the degree to which employees of an organization are
able to satisfy their personal needs through experience in the organization. It main aim is to
create a work environment where employees work in cooperation with each other and
contribute to organizational objectives.
Scope of Quality of Work Life
Quality of work life is a multi dimensional aspect. The workers expect the following needs to
be fulfilled by the organizations:
5. Compensation: The reward for work should be above a minimum standard for life and
should also be equitable. There should be a just an equitable balance between the effort
and the reward.
6. Health and Safety: The working environment should be free from all hazards
detrimental to the health and safety of the employees. The main elements of a good
physical environment for work should be reasonable hours of work, cleanliness,
pollution free atmosphere, risk free work etc.
7. Job Security: The organization should offer security of employment. Employees should
not have to work under a constant concern for their future stability of work and income.
8. Job Design: The design of jobs should be such which is capable of meeting the needs of
the organization for production and the individual for satisfying and interesting work.
Quality of work life can be improved if the job allows sufficient autonomy and control,
provides timely feed back on performance and uses a wide range of skills.
9. Social Integration: The workers should be able to feel a sense of identity with the
organization and develop a feeling of self esteem. This includes the elimination of
discrimination and individualism, whilst encouraging teams and social groups to form.
10. Social Relevance of Work: Work should not only be a source of material and
psychological satisfaction, but also a means of social welfare. An organization that has
greater concern for social causes can improve the quality of work life.
11. Scope for Better Career Opportunities: The management should provide facilities to the
employees for improving their skills both academic and otherwise. The management
should always think of utilizing human resources for expansion and development of the
organizations.
Principles of Quality of Work Life
According to N.Q.Herrick and M.Maccoby there are four basic principles, which will
humanize work and improve the Quality of Work Life:

1. The Principle of Security: Quality of work cannot be improved until employees are
relieved of the anxiety, fear and loss of future employment. The working conditions
must be safe and fear of economic want should be eliminated. Job security and safety
against occupational hazards is an essential precondition of humanization of work.
2. The Principle of Equity: There should be a direct and positive relation between effort
and reward. All types of discrimination between people doing similar work and with
same level of performance must be eliminated. Equity also requires sharing the profits
of the organization.
3. The Principle of individualism: Employees differ in terms of their attitudes, skills,
potentials etc. Therefore, every individual should be provided the opportunities for
development of his personality and potential. Humanization of work requires that
employees are able to decide their own pace of activities and design of work operations.
4. The Principle of Democracy: This means greater authority and responsibility to
employees. Meaningful participation in decision making process improves the quality
of work life.
Techniques for Improving Quality of Work Life
The quality of work life movement is of recent origin and has a long way to go. Individual as
well as organized efforts are required to improve the quality of work life for millions of
workers in the country. Some of the techniques used to improve the QWL are as given below:
1. Flexible Work Schedules: There should be flexibility in the work schedules of the
employees. Alternative work schedules for the employees can be flexi time, staggered
hours, compressed work week etc. Flexi time is a system of flexible working hours,
staggered hours schedule means that different groups of employees begin and end work
a different intervals. Compressed work week involves longer hours of work per day for
fewer days per week.
2. Job Redesign: Job redesigning or job enrichment improves the quality of the jobs. It
attempts to provide a person with exciting, interesting, stimulating and challenging
work. It helps to satisfy the higher level needs of the employees.
3. Opportunity for Development: Career development is very important for ambitious and
achievement oriented employees. If the employees are provided with opportunities for
their advancement and growth, they will be highly motivated and their commitment to
the organization will increase.
4. Autonomous Work Groups: Autonomous work groups are also called self managed
work teams. In such groups the employees are given freedom of decision making. They
are themselves responsible for planning, organizing and controlling the activities of
their groups. The groups are also responsible for their success or failures.
5. Employee’s Participation in Management: People in the organization should be allowed
to participate in the management decisions affecting their lives. Quality circles,
Management by objectives, suggestion system and other forms of employee’s
participation in management help to improve the Quality of Work Life.

6. Job Security: Employees want stability of employment. Adequate job security provided
to the employees will improve the Quality of Work Life to a large extent.
7. Equitable Justice: The principle of equitable administrative justice should be applied in
disciplinary actions, grievance procedures, promotions, transfers, work assignments etc.
Partiality and biasness at any stage can discourage the workers and affect the Quality of
Work Life.
Close attention to Quality of Work Life (QWL) provides a more humanized work
environment. It attempts to serve the higher-order needs of workers as well as their more basic
needs. It seeks to employ the higher skills of workers and to provide an environment that
encourages them to improve their skills. The idea is that human resources should be developed
and not simply used. Further, the work should not have excessively negative conditions. It
should not put workers under undue stress. It should not damage or degrade their humanness. It
should not be threatening or unduly dangerous. Finally, it should contribute to, or at least leave
unimpaired, worker’s abilities to perform in other life roles, such as citizen, spouse, and parent.
That is, work should contribute to general social advancement.
Socio technical Design and High-performance work practices

Sociotechnical systems (STS) in organizational development is an approach to complex
organizational work design that recognizes the interaction
between people and technology in workplaces. The term also refers to the interaction between
society's complex infrastructures and human behaviour. In this sense, society itself, and most
of its substructures, are complex sociotechnical systems.
The term sociotechnical systems was coined by Eric Trist, Ken Bamforth and Fred Emery, in the
World War II era, based on their work with workers in English coal mines at the Tavistock
Institute in London. Sociotechnical systems pertains to theory regarding the social aspects
of people and society and technical aspects of organizational structure and processes. Here,
technical does not necessarily imply material technology. The focus is on procedures and
related knowledge, i.e. it refers to the ancient Greek term techne. "Technical" is a term used to
refer to structure and a broader sense of technicalities. Sociotechnical refers to the
interrelatedness of social and technical aspects of an organization or the society as a whole.
Sociotechnical theory is about joint optimization, with a shared emphasis on achievement of

both excellence in technical performance and quality in people's work lives. Sociotechnical
theory, as distinct from sociotechnical systems, proposes a number of different ways of
achieving joint optimisation. They are usually based on designing different kinds of
organisation, ones in which the relationships between socio and technical elements lead to the
emergence of productivity and wellbeing
Sociotechnical refers to the interrelatedness of social and technical aspects of an organization.

Sociotechnical theory is founded on two main principles:

 One is that the interaction of social and technical factors creates the conditions for
successful (or unsuccessful) organizational performance. This interaction consists
partly of linear "cause and effect" relationships (the relationships that are normally
"designed") and partly from "non-linear", complex, even unpredictable
relationships (the good or bad relationships that are often unexpected). Whether
designed or not, both types of interaction occur when socio and technical elements
are put to work.
 The corollary of this, and the second of the two main principles, is that optimization
of each aspect alone (socio or technical) tends to increase not only the quantity of
unpredictable, "un-designed" relationships, but those relationships that are injurious
to the system's performance.
Therefore, sociotechnical theory is about joint optimization, that is, designing the social system
and technical system in tandem so that they work smoothly together. Sociotechnical theory, as
distinct from sociotechnical systems, proposes a number of different ways of achieving joint
optimization. They are usually based on designing different kinds of organization, ones in
which the relationships between socio and technical elements lead to the emergence of
productivity and wellbeing, rather than the all too often case of new technology failing to meet
the expectations of designers and users alike.
The scientific literature shows terms like sociotechnical all one word, or socio-technical with a
hyphen, sociotechnical theory, sociotechnical system and sociotechnical systems theory. All of
these terms appear ubiquitously but their actual meanings often remain unclear. The key term
"sociotechnical" is something of a buzzword and its varied usage can be unpicked. What can be
said about it, though, is that it is most often used to simply, and quite correctly, describe any
kind of organization that is composed of people and technology.
The key elements of the STS approach include combining the human elements and the
technical systems together to enable new possibilities for work and pave the way for
technological change (Trist, 1981). The involvement of human elements in negotiations may
cause a larger workload initially, but it is crucial that requirements can be determined and
accommodated for prior to implementation as it is central to the systems success. Due to its
mutual causality (Davis, 1977), the STS approach has become widely linked with autonomy,
completeness and job satisfaction as both systems can work together to achieving a goal.
Enid Mumford (1983) defines the socio-technical approach to recognise technology and people
to ensure work systems are highly efficient and contain better characteristics which leads to
higher job satisfaction for employees, resulting in a sense of fulfilment to improving quality of
work and exceeding expectations. Mumford concludes that the development of information
systems is not a technical issue, but a business organisation issue which is concerned with the
process of change.
ETHICs (Effective Technical & Human Implementation of Computer-based Systems)

methodology was developed by Mumford with the goal of creating better work systems and a
more equitable workplace. This method uses action research to help make radical
improvements in work design. There is also a consensus approach which includes consultative
participation. It allows work colleagues to become more motivated to expressing ideas. The
method allows employees to get involved with the design process, meaning they have
involvement in designing a job system and resolving conflicts. This method doesn’t provide a
straightforward approach for successful change, but does involve employees making an ethical
and more supportive system design.
Principles
Some of the central principles of sociotechnical theory were elaborated in a seminal paper
by Eric Trist and Ken Bamforth in 1951. This is an interesting case study which, like most of the
work in sociotechnical theory, is focused on a form of 'production system' expressive of the era
and the contemporary technological systems it contained. The study was based on the
paradoxical observation that despite improved technology, productivity was falling, and that
despite better pay and amenities, absenteeism was increasing. This particular rational
organisation had become irrational. The cause of the problem was hypothesized to be the
adoption of a new form of production technology which had created the need for a bureaucratic
form of organization (rather like classic command-and-control). In this specific example,
technology brought with it a retrograde step in organizational design terms. The analysis that
followed introduced the terms "socio" and "technical" and elaborated on many of the core
principles that sociotechnical theory subsequently became.
“The key elements of the STS approach include combining the human elements and the
technical systems together to enable new possibilities for work and pave the way for
technological change. Due to its mutual causality, the STS approach has become widely linked
with autonomy, completeness and job satisfaction as both systems can work together to
achieving a goal.”
Responsible autonomy
Sociotechnical theory was pioneering for its shift in emphasis, a shift towards considering
teams or groups as the primary unit of analysis and not the individual. Sociotechnical theory
pays particular attention to internal supervision and leadership at the level of the "group" and
refers to it as "responsible autonomy".The overriding point seems to be that having the simple
ability of individual team members being able to perform their function is not the only
predictor of group effectiveness. There are a range of issues in team cohesion research, for
example, that are answered by having the regulation and leadership internal to a group or team.
These, and other factors, play an integral and parallel role in ensuring successful teamwork
which sociotechnical theory exploits. The idea of semi-autonomous groups conveys a number
of further advantages. Not least among these, especially in hazardous environments, is the
often felt need on the part of people in the organisation for a role in a small primary group. It is
argued that such a need arises in cases where the means for effective communication are often
somewhat limited. As Carvalho states, this is because "...operators use verbal exchanges to
produce continuous, redundant and recursive interactions to successfully construct and

maintain individual and mutual awareness...". The immediacy and proximity of trusted team
members makes it possible for this to occur. The coevolution of technology and organizations
brings with it an expanding array of new possibilities for novel interaction. Responsible
autonomy could become more distributed along with the team(s) themselves.
The key to responsible autonomy seems to be to design an organization possessing the

characteristics of small groups whilst preventing the "silo-thinking" and "stovepipe"
neologisms of contemporary management theory. In order to preserve "...intact the loyalties on
which the small group [depend]...the system as a whole [needs to contain] its bad in a way that
[does] not destroy its good". In practice, this requires groups to be responsible for their own
internal regulation and supervision, with the primary task of relating the group to the wider
system falling explicitly to a group leader. This principle, therefore, describes a strategy for
removing more traditional command hierarchies.
Adaptability
Carvajal states that "the rate at which uncertainty overwhelms an organisation is related more
to its internal structure than to the amount of environmental uncertainty". [14] Sitter in 1997
offered two solutions for organisations confronted, like the military, with an environment of
increased (and increasing) complexity: "The first option is to restore the fit with the external
complexity by an increasing internal complexity. ...This usually means the creation of more
staff functions or the enlargement of staff-functions and/or the investment in vertical
information systems". Vertical information systems are often confused for "network enabled
capability" systems (NEC) but an important distinction needs to be made, which Sitter et al.
propose as their second option: "...the organisation tries to deal with the external complexity by
'reducing' the internal control and coordination needs. ...This option might be called the
strategy of 'simple organisations and complex jobs'". This all contributes to a number of unique
advantages. Firstly is the issue of "human redundancy" in which "groups of this kind were free
to set their own targets, so that aspiration levels with respect to production could be adjusted to
the age and stamina of the individuals concerned".Human redundancy speaks towards the
flexibility, ubiquity and pervasiveness of resources within NEC.
The second issue is that of complexity. Complexity lies at the heart of many organisational
contexts (there are numerous organizational paradigms that struggle to cope with it). Trist and
Bamforth (1951) could have been writing about these with the following passage: "A very
large variety of unfavourable and changing environmental conditions is encountered ... many
of which are impossible to predict. Others, though predictable, are impossible to alter."
Many type of organisations are clearly motivated by the appealing "industrial age", rational
principles of "factory production", a particular approach to dealing with complexity: "In the
factory a comparatively high degree of control can be exercised over the complex and moving
"figure" of a production sequence, since it is possible to maintain the "ground" in a
comparatively passive and constant state".On the other hand, many activities are constantly
faced with the possibility of "untoward activity in the 'ground'" of the 'figure-ground'
relationship" The central problem, one that appears to be at the nub of many problems that
"classic" organisations have with complexity, is that "The instability of the 'ground' limits the
applicability ... of methods derived from the factory".
In Classic organisations, problems with the moving "figure" and moving "ground" often
become magnified through a much larger social space, one in which there is a far greater extent
of hierarchical task interdependence. For this reason, the semi-autonomous group, and its
ability to make a much more fine grained response to the "ground" situation, can be regarded
as "agile". Added to which, local problems that do arise need not propagate throughout the
entire system (to affect the workload and quality of work of many others) because a complex
organization doing simple tasks has been replaced by a simpler organization doing more
complex tasks. The agility and internal regulation of the group allows problems to be solved
locally without propagation through a larger social space, thus increasing tempo.
Whole tasks
Another concept in sociotechnical theory is the "whole task". A whole task "has the advantage
of placing responsibility for the ... task squarely on the shoulders of a single, small, face-to-
face group which experiences the entire cycle of operations within the compass of its
membership." The Sociotechnical embodiment of this principle is the notion of minimal
critical specification. This principle states that, "While it may be necessary to be quite precise
about what has to be done, it is rarely necessary to be precise about how it is done". This is no
more illustrated by the antithetical example of "working to rule" and the virtual collapse of any
system that is subject to the intentional withdrawal of human adaptation to situations and
contexts.
The key factor in minimally critically specifying tasks is the responsible autonomy of the
group to decide, based on local conditions, how best to undertake the task in a flexible adaptive
manner. This principle is isomorphic with ideas like effects-based operations (EBO). EBO asks
the question of what goal is it that we want to achieve, what objective is it that we need to
reach rather than what tasks have to be undertaken, when and how. The EBO concept enables
the managers to "...manipulate and decompose high level effects. They must then assign lesser
effects as objectives for subordinates to achieve. The intention is that subordinates' actions will
cumulatively achieve the overall effects desired".In other words, the focus shifts from being a
scriptwriter for tasks to instead being a designer of behaviours. In some cases, this can make
the task of the manager significantly less arduous.
Meaningfulness of tasks
Effects-based operations and the notion of a "whole task", combined with adaptability and
responsible autonomy, have additional advantages for those at work in the organization. This is
because "for each participant the task has total significance and dynamic closure" [10] as well as
the requirement to deploy a multiplicity of skills and to have the responsible autonomy in order
to select when and how to do so. This is clearly hinting at a relaxation of the myriad of control
mechanisms found in more classically designed organizations.

Greater interdependence (through diffuse processes such as globalisation) also bring with them
an issue of size, in which "the scale of a task transcends the limits of simple spatio-temporal
structure. By this is meant conditions under which those concerned can complete a job in one
place at one time, i.e., the situation of the face-to-face, or singular group". In other words, in
classic organisations the "wholeness" of a task is often diminished by multiple group
integration and spatiotemporal disintegration.[10] The group based form of organization design
proposed by sociotechnical theory combined with new technological possibilities (such as the
internet) provide a response to this often forgotten issue, one that contributes significantly to
joint optimisation.
Behavioural performance management

The behavioral approach to the performance management system rests on the idea that you can
get the right level of performance from employees based on a demonstration of desirable
behaviors. This system contrasts with the outcome approach in which the results of employee
work efforts are emphasized. Employees must receive direct explanation of expected behaviors
at the beginning of their employment.
Focus on Process
A focus on desirable employee behaviors is really scrutiny of the process that employees use to
accomplish their work objectives. One way an organization can ensure that employees perform
their jobs is through the development of internal policies and procedures. The more specific the
procedures, such as flowcharts that indicate decisions employees should make in the scope of
their work, the more that employees can be expected to execute the routines in their work
processes correctly.
Behavioral Statements
A performance management system consists of a form that a manager uses to evaluate
employees in their specific position. Each employee's evaluation form includes statements that
describe general behaviors, such as completing work assignments by the deadline, or specific
behaviors, such as drafting letters of correspondence with fewer than three errors in grammar,
punctuation and spelling. No matter what kinds of statements are included on the forms, these
statements will describe the most essential criteria that employees need to perform well to help
their business department achieve its goals.
Competencies
Some organizations choose to link their descriptions of desirable behaviors into competency
statements, while others focus on statements reflecting how employees embody the core values
of the organization. Both types of statements outline a minimum level of competency so
workers know what kind of behaviors to use in the workplace. Behaviors must always link to
desired results for the organization to achieve in the business environment.

Link to Recruitment and Selection
An organization that wants to make the most use of its performance management system will
link behavioral competencies to the recruitment and selection process. The desired behaviors in
a new hire will be included in the job announcement in some form, perhaps under job criteria,
and included in essay questions, interview questions and other applicant screening instruments.
Hiring managers will look for these behaviors during every interaction with applicants. When
an employee gets a new job with the organization, she will know at the start how the
organizational culture values certain behaviors over others.
Reinforcement And Punishment As Principles Of Learning

Reinforcement has played a central role in learning. Most learning experts agree that
reinforcement is the single most important principle of learning. Yet, there is much controversy
over its theoretical explanation. The first major theoretical treatment given to reinforcement in
learning is Thorn dike's classic law of effect. According to Thorndike, "of several responses
made to the same situation, those which are accompanied or closely followed by satisfaction
(reinforcement) will be more likely to recur; those which are accompanied or closely followed
by discomfort (punishment).
Will be less likely to occur". From a strictly empirical standpoint, most behavioural scientists,
generally accept the validity of this law. Therefore, reinforcement is the attempt to develop or
strengthen desirable behaviour by either bestowing positive consequences or with holding
negative consequences.
Reinforcement is the process by which certain types of behaviours are strengthened. It is the
attempt to develop or strengthen desirable behaviour by either bestowing positive
consequences or with holding negative consequences. Thus, a "reinforcer" is any stimulus that
causes certain behaviour to be repeated or inhibited. By introducing some rein forcers, the
organizations can maintain or increase the probability of such behaviours as quality oriented
performance, decision-making, high level of attendance and punctuality and so on. There are
four basic reinforcement strategies:
1. Positive reinforcement
2. Negative reinforcement
3. Extinction
4. Punishment
Positive Reinforcement
A positive reinforcement is a reward for a desired behaviour. The reward should be sufficiently
powerful and durable so that it increases the probability of occurrence of desirable behaviour.
Positive reinforcement results from the application of a positive consequence following a
desirable behaviour.
For example

i. Bonuses paid at the end of a successful business year are an example of positive
reinforcement
ii. Employees will work hard for a raise or a promotion
iii. Salesmen will increase their efforts to get rewards and bonuses
iv. Students will study to get good grades and
v. Children will throw temper tantrums to get candy or ice creams.
In these examples, the rises, promotions, awards, bonuses, good grades candy and ice cream
are positive reinforcers.
Negative Reinforcers: Negative reinforcement also known as "escape conditioning" or
"avoidance learning" it is also a method of strengthening desired behaviour. Negative
reinforcement results from with holding a threatened negative consequence when a desired
behaviour occurs.
For example students study hard, write term papers and do their homework on time to avoid
the consequences of failure in the examination.
Just as people engage in behaviours in order to get positive reinforcers, they also engage in
behaviours to avoid or escape unpleasant conditions. Terminating an unpleasant stimulus in
order to strengthen or increase the probability of a response is called negative reinforcement. If
people find that a response successfully ends an aversive condition, they are likely to repeat it.
For example, Heroin addicts will do almost anything to obtain heroin to terminate their painful
withdrawal symptoms.
Responses that end discomfort and those that are followed by rewards are likely to be
strengthened or repeated because both lead to a more desirable outcome. Some behaviour is
influenced by a combination of positive and negative reinforcement. For example, if you eat a
plateful of rather disgusting leftovers to relieve intense hunger then you are eating solely to
remove hunger, a negative reinforcer. But if your hunger is relieved by dinner at a fine
restaurant, both positive and negative reinforcement will have played a role.
Extinction
(with holding reinforcers) - We have seen that responses followed by reinforcers tend to be
repeated and that responses no longer followed by reinforcers will occur less and less
frequently and eventually die out. In humans, extinction can lead to frustration or even rage.
Consider a child having a temper tantrum. If whining and loud demands do not bring the
reinforcer, the child may progress to kicking and screaming. It is what we expect and don't get
that makes us angry.
An alternative to punishing undesirable behaviour is extension - the attempt to weaken

behaviour by attaching no consequences (either positive or negative) to it. It is equivalent to
ignoring the behaviour. The rationale for using extinction is that a behaviour not followed by
any consequence is weakened. However, some patience and time may be needed for it to be
effective.
This type of reinforcement is applied to reduce undesirable behaviour, especially when

suchbehaviours were previously rewarded. This means that if rewards were removed from
behaviours that were previously reinforced, then such behaviours would become less frequent
and eventually die out. For example, if a student in the class is highly mischievous and disturbs
the class, he is probably asking for attention. If the attention is given to him, he will continue to
exhibit that behaviour. However, if he is continuously ignored and not recognised, then such
undesirable behaviour will vanish over a period of time.
Punishment
Punishment is the opposite of reinforcement. Punishment tends to lower the probability of a

response by following it with an aversive or unpleasant consequence. And punishment can be
accomplished either adding an unpleasant stimulus or removing a pleasant stimulus.
The added unpleasant stimulus might take the form of criticism, a scolding, a disapproving 244
Principles of Management and Organisational Behaviour look, a fine, or a prison sentence. The
removal of a pleasant stimulus might consist of with holding affection and attention,
suspending a driver's license, or taking away a privilege such as watching television.
We often confuse negative reinforcement and punishment. Unlike punishment, negative

reinforcement increases the probability of a desired response by removing an unpleasant
stimulus when the correct response is made.
Punishment is the attempt to eliminate or weaken undesirable behaviour. It is used in two

ways. One way to punish a person is through the application of a negative consequence
following an undesirable behaviour. The other way to punish a person is through the with
holding a positive consequence following an undesirable behaviour.
Punishment is the most controversial method of behaviour modification and involves

delivering an unpleasant consequence contingent upon the occurrence of an undesirable
behaviour.
The punishment process consists of "application" of an undesirable consequence or

"withdrawal" of a desirable consequence for an undesirable behaviour, which has never been
associated with reward before.
According to B. F. Skinner, punishment is still the most common technique of behaviour

control in today's life. When a child misbehaves, he is spanked. If a person does not behave as
the society or law wants him to behave, he is punished by arrest and jail.
Certain undesirable behaviours must be punished; otherwise, they will have far reaching
effects. Accordingly, in situations where punishment is desirable as a means of behaviour
modification, certain guidelines would make it more effective thus minimizing its disfunctional
consequences.
a. Praise in public; punish in private.
b. Apply punishment before the undesirable behaviour has been strongly reinforced.
Thus, the punishment should immediately follow the undesirable behaviour.
c. The punishment should focus on the behaviour and not on the person. One problem
with punishment is that it may have unintended results. Because punishment is
discomforting to the individual being punished, the experience of punishment may
result in negative psychological, emotional, performance or behavioural
consequences. For example, the person being punished may become angry, hostile,
depressed or despondent.
From an organizational standpoint, this result becomes important when the punished person
translates negative emotional and psychological responses into negative actions.
Reinforcement and Punishment Strategies
These four reinforcement strategies are illustrated below with the help of an example when a
superior advises his employee to come to work on time
Reinforcement Strategies

Schedules of Reinforcement
Any analysis of reinforcement shows that it is not provided in a consistent manner. The various
ways by which the reinforcement can be administered can be categorized into two groups.
These are continuous and partial reinforcement schedules.
1. Continuous reinforcement Schedule: A continuous schedule is that one in which the
desirable behaviour is reinforced every time it occurs and the reinforcement is
immediate.
This results in fast acquisition of the desired response and the learning is rapid.
Continuous reinforcement strategy is not always feasible in the organizational
environment where continuous observation of behaviour is not possible due to time
constraints imposed upon management. Reinforcing every correct response is known
as continuous reinforcement. It is the most efficient way to condition a new
response. However, after a response has been conditioned, partial or intermittent
reinforcement is more effective in maintaining or increasing the rate of response.
2. Partial Reinforcement Schedule: A partial reinforcement schedule rewards desirable
behaviour at specific intervals. It is believed that "behaviour tends to be persistent
when it is learned under conditions of partial and delayed reinforcement.
There are four kinds of partial reinforcement schedule. These are:
a. Fixed Interval Schedule: In this type of schedule, a response is reinforced at fixed
intervals of time. Fixed-interval schedules produce an uneven pattern of responses.
The highest rate of response occurs fairly close to the time when reinforcement
occurs. For example, if there are two tests announced at fixed intervals in a
semester, you will see that the students will study harder as the time of the test
approaches because the test itself is a reinforcer and the studying behaviour is
reinforced by the opportunity to demonstrate your knowledge and earn a good grade.
b. Variable Interval Schedule: In this type of schedule, the reinforcement is
administered at random times that cannot be predicted by the employee. For
example: "Surprise Quizzes" in the classroom is one of the examples of variable
interval schedules.
c. Fixed Ratio Schedules: In a fixed ratio schedule, the reinforcement is administered
only upon the completion of a given number of desirable responses. Reward is
consistently tied to the output. The individual soon determines that reinforcement is
based upon the number of responses and performs the responses as quickly as
possible in order to receive the reward. For example, a professor may receive a
promotion after a certain number of research articles have been published.
d. Variable Ratio Schedules: It is similar to fixed ratio schedule except that the number
of responses required before reinforcement is determined, are not fixed but vary
from situation to situation. The variable ratio schedule elicits a rapid rate of
response. The value of the reward and its unpredictability keeps the behaviour at
high-level desirability.
Reinforcement Schedules Compared
Process of Behavioural modification

Behavior modification is defined as "the alteration of behavioral patterns through the use of
such learning techniques as biofeedback and positive or negative reinforcement." More simply,
you can modify your child's behavior with positive consequences and negative consequences.
Behavior modification is based on the idea that good behavior should lead to positive
consequences and bad behavior should lead to negative consequences.
Behavior modification is the process which involves making specific behavior occur more or
less often by systematically managing its cues and consequences. It is simply we can say
application of reinforcement concepts to individuals in the work settings for the proper

functioning of the organizational goals by decreasing unwanted behavior and help employees
to show suitable workplace behavior.
1. Identification of Critical Behavior
This is the first step involved in Organizational Behaviour Modification process. In this step
managers need to identify which behaviors are highly desirable in organization and which are
undesirable in organization.The managers need to specify which behavior is wanted or need to
be changed for the sake of the organization. If the behaviors can be seen and measured then
only second step is applied otherwise it cannot be applied. for e.g Absenteeism , tardiness or
promptness , complaints or constructive criticism ,etc are the beahviors that should be modified
and if such behaviors are modified then good results can be obtained.
2. Measurement Of Behavior
This is the second step involved in Organizational Behaviour Modification process. In this step
managers need to collect and analyze the performance data before, during and after the
Organizational Behaviour Modification program from records. The baseline data is collected
( ie; the data collected before the beginning of change process) and on the basis of this ,the
success and failure of the Organizational Behaviour Modification program is evaluated. The
measurement of behaviour will also help the managers in determining the success in changing
the employees’ behaviour.
3. IDENTIFY BEHAVIOUR CONSEQUENSES
This is the third step involved in Organizational Behaviour Modification process. This step
consists of a detail examination of present behaviors being shown by employees to determine
what consequences each produce and what conditions lead to their occurence, etc. This
analysis will determine what circumstances lead to a particular type of behaviour, what are the
consequences of such behaviour etc. Contingent consequences of behavior should be identified
because these consequences have impact on subsequent behaviour. Behaviour Modification
recognizes that behavior is influenced by two environmental contingencies ie;
Antecedent(input factors or events that proceed or cause the behavior to occur so it should be
well communicated to employees) , Behavior , Consequences (events following a particular
behavior that influences its future occurance).The main objective of this step is identifying the
consequences of the behavior. For. eq. If any employee in an organization work hard then does
he/she get reward or not, or just gets tired.
4. Develop and apply intervention strategy
This is the fourth step involved in Organizational Behaviour Modification process. Once the
critical behaviors have been identified and the circumstances which cause such behaviors have
been determined, the next step will be to develop an effective intervention strategy. In this step

managers need to design intervention strategies to strengthen desirable critical behaviors and
weaken undesirable critical behaviors through positive or negative reinforcement, extinction or
punishment. Using a particular strategy depends upon the type of situation faced. After
developing and implementing a particular strategy, the frequency of resulting behavior is
measured. If a behavior change has occurred in the right direction, the manager will select a
reinforcement schedule that will maintain the desired behavior.
5. Evaluate performance
This is the Last step or final step involved in Organizational Behavior Modification process.
The main focus of this step is identifying the success or failure of Organizational Behaviour
Modification program. In this step manager evaluate whether the intervention strategies are
working properly or not which will show whether the undesirable behaviors have been
substituted by desirable behavior or not. If there has been a change in behavior, whether it is
permanent or just temporary. Further, the evaluation will also show whether there is
improvement in the performance or not. If there is a positive change, it suggests that the
interventions are successful.
Leadership theories
Before diving into the theories, let's see what leadership theories are all about. Later, we'll talk
about some of the most famous leadership theories that will sharpen your leadership skills and
help you perform better as a manager, including:
1. Contingency Theory
This theory proposes that no one way or style of leadership may be applicable to all situations.
In other words, it recognizes that there might be variables influencing any particular situation,
and a leader must choose the right course of action, taking into account those variables.
In this regard, leadership researchers White and Hodgson state, "Effective leadership is about
striking the right balance between needs, context, and behavior." The best leaders have not
only the right traits but also the ability to assess the needs of their followers, analyze the
situation at hand, and act accordingly.
2. Situational Leadership Theory
Like the Contingency Theory, the Situational Theory stresses the importance of situational
variables and doesn't consider anyone's leadership style to be better than the others.
Put forward by US professor, Paul Hersey and leadership guru, Ken Blanchard, the situational
theory is a combination of two factors — the leadership style and the maturity levels of the
followers. According to this theory, different situations demand different styles of leadership
and decision-making. Leaders must act by judging the situation they are facing.

3. Transformational Leadership Theory
The Transformational Leadership theory, also known as Relationship theories, focuses on the
relationship between the leaders and followers. This theory talks about the kind of leader who
is inspirational and charismatic, encouraging their followers to transform and become better at
a task.
Transformational leaders typically motivated by their ability to show their followers the
significance of the task and the higher good involved in performing it. These leaders are not
only focused on the team's performance but also give individual team members the required
push to reach his or her potential. These leadership theories will help you to sharp your Skill.
4. Transactional Theories
Transactional Theories, also referred to as Management theories or exchange leadership

theories, revolve around the role of supervision, organization, and teamwork. These leadership
theories consider rewards and punishments as the basis for leadership actions. This is one of
the oft-used theories in business, and the proponents of this leadership style use rewards and
punishments to motivate employees.
5. Behavioral Theory
In the Behavioral Theory, the emphasis shifts from the traits or qualities of leaders to their
behaviors and actions. In sharp contrast to the Great Man Theory and the trait approach to
leadership, this theory considers effective leadership to be the result of many learned or
acquired skills. It proposes that an individual can learn to become a good leader. This is one of
the best leadership theories.
6. Great Man Theory of Leadership
This is one of the earliest leadership theories and is based on the assumption that leadership is
an inborn phenomenon and that leaders are "born" rather than "made." According to this
theory, a person capable of leading has the personality traits of a leader — charm, confidence,
intellect, communication skills, and social aptitude — from birth, which set them apart. This
theory emphasizes leadership as a quality that you either possess or you don't; it isn't
something that you can learn.
While the theory sounds pretty discouraging to those wanting to learn the ropes of leadership,
you might take heart in the fact that most modern theorists dismiss it and even by some leaders
themselves. It's still an interesting take on leadership and one that highlights the qualities of
great leaders, which have more or less remained unchanged over time.
7. Trait Theory of Leadership
This theory walks in the footsteps of the Great Man theory in assuming that leaders are born
with traits that make them more suitable for the role of a leader than others who lack those
natural-born traits. As such, the theory pinpoints certain qualities such as intelligence,
accountability, sense of responsibility, and creativity, among others, that lets an individual
excel at leadership.
One major flaw in the trait approach to leadership is that it doesn't offer a conclusive list of
leadership traits. However, the credibility of the theory lies in the fact that the significance of
personality traits in leadership is well supported by research. Trait Theory of Leadership will
help you to improve your leadership theories.
Leadership Styles in Management
A leader is a person who influences a group of people towards the achievement of a goal while
leadership is the art of motivating a group of people to act towards achieving a common goal.
Different leadership styles will result in different impact to organization. The leader has to
choose the most effective approach of leadership style depending on situation because
leadership style is crucial for a team success. By understanding these leadership styles and their
impact, everyone can become a more flexible and better leader.
1. Transactional Leadership
Transactional leadership is a term used to classify a group of leadership theories that inquire
the interactions between leaders and followers. This style of leadership starts with the premise
that team members agree to obey their leader totally when they take a job on. The “transaction”
is usually that the organization pays the team members, in return for their effort and
compliance. As such, the leader has the right to “punish” team members if their work doesn’t
meet the pre-determined standard. Team members can do little to improve their job satisfaction
under transactional leadership. The leader could give team members some control of their
income/reward by using incentives that encourage even higher standards or greater
productivity. Alternatively a transactional leader could practice “management by exception”,
whereby, rather than rewarding better work, he or she would take corrective action if the
required standards were not met.
Transactional leadership is really just a way of managing rather a true leadership style, as the
focus is on short-term tasks. It has serious limitations for knowledge-based or creative work,
but remains a common style in many organizations.
2. Autocratic Leadership
Under the autocratic leadership styles, all decision-making powers are centralized in the leader
as shown such leaders are dictators. Autocratic leadership is an extreme form of transactional
leadership, where a leader exerts high levels of power over his or her employees or team
members. People within the team are given few opportunities for making suggestions, even if
these would be in the team’s or organization’s interest.

Autocratic leadership style is often considered the classical approach. It is one in which the
manager retains as much power and decision-making authority as possible. The manager does
not consult employees, nor are they allowed to give any input. Employees are expected to obey
orders without receiving any explanations. The motivation environment is produced by
creating a structured set of rewards and punishments. Autocratic leaders make decisions
without consulting their teams. This is considered appropriate when decisions genuinely need
to be taken quickly, when there’s no need for input, and when team agreement isn’t necessary
for a successful outcome.
Many people resent being treated like this. Because of this, autocratic leadership often leads to
high levels of absenteeism and staff turnover. Also, the team’s output does not benefit from the
creativity and experience of all team members, so many of the benefits of teamwork are lost.
For some routine and unskilled jobs, however, this style can remain effective, where the
advantages of control outweigh the disadvantages.
3. Transformational Leadership
Transformational leadership is a leadership style that is defined as leadership that creates

valuable and positive change in the followers. A transformational leader focuses on
“transforming” others to help each other, to look out for each other, to be encouraging and
harmonious, and to look out for the organization as a whole. In this leadership, the leader
enhances the motivation, morale and performance of his follower group. A person with this
leadership style is a true leader who inspires his or her team with a shared vision of the future.
Transformational leaders are highly visible, and spend a lot of time communicating. They don’t
necessarily lead from the front, as they tend to delegate responsibility amongst their teams.
While their enthusiasm is often infectious, they can need to be supported by “detail people”.
In many organizations, both transactional and transformational leadership are needed. The
transactional leaders (or managers) ensure that routine work is done reliably, while the
transformational leaders look after initiatives that add new value.
4. Servant Leadership
This term, coined by Robert Greenleaf in the 1970s, describes a leader who is often not
formally recognized as such. When someone, at any level within an organization, leads simply
by virtue of meeting the needs of his or her team, he or she is described as a “servant leader”.
Servant Leadership’s focus was on the leader as a servant, with his or her key role being in
developing, enabling and supporting team members, helping them fully develop their potential
and deliver their best. In many ways, servant leadership is a form of democratic leadership, as
the whole team tends to be involved in decision-making.
Supporters of the servant leadership model suggest it is an important way ahead in a world
where values are increasingly important, and in which servant leaders achieve power on the
basis of their values and ideals. Others believe that in competitive leadership situations, people
practicing servant leadership can find themselves “left behind” by leaders using other
leadership styles. Followers may like the idea of servant leadership so there’s something
immediately attractive about the idea of having a boss who’s a servant leader. People without
responsibility for results may like it for its obviously democratic and consensual approach.
5. Charismatic Leadership
The Charismatic Leader and the Transformational Leader can have many similarities, in that
the Transformational Leader may well be charismatic. Their main difference is in their basic
focus. Whereas the Transformational Leader has a basic focus of transforming the organization
and, quite possibly, their followers, the Charismatic Leader may not want to change anything.
A charismatic leadership style can appear similar to a transformational leadership style, in that
the leader injects huge doses of enthusiasm into his or her team, and is very energetic in
driving others forward.
However, charismatic leaders can tend to believe more in themselves than in their teams. This
can create a risk that a project, or even an entire organization, might collapse if the leader were
to leave because in the eyes of their followers, success is tied up with the presence of the
charismatic leader. As such, charismatic leadership carries great responsibility, and needs long-
term commitment from the leader.
6. Democratic Leadership or Participative Leadership
Although a democratic leader will make the final decision, he or she invites other members of
the team to contribute to the decision-making process. This not only increases job satisfaction
by involving employees or team members in what’s going on, but it also helps to develop
people’s skills. Employees and team members feel in control of their own destiny, and so are
motivated to work hard by more than just a financial reward. Democratic leadership can
produce high quantity work for long periods of time. Many employees like the trust they
receive and respond with cooperation, team spirit, and high morale.
As participation takes time, this style can lead to things happening more slowly than an
autocratic approach, but often the end result is better. It can be most suitable where team
working is essential, and where quality is more important than speed to market or productivity.
7. Laissez-Faire Leadership
The laissez-faire leadership style is also known as the “hands-off ¨ style. It is one in which the
manager provides little or no direction and gives employees as much freedom as possible. All
authority or power is given to the employees and they must determine goals, make decisions,
and resolve problems on their own.
This French phrase means “leave it be” and is used to describe a leader who leaves his or her
colleagues to get on with their work. It can be effective if the leader monitors what is being
achieved and communicates this back to his or her team regularly. Most often, laissez-faire
leadership works for teams in which the individuals are very experienced and skilled self-
starters. Unfortunately, it can also refer to situations where managers are not exerting sufficient
control. The advantage of this kind of style is positive only in the case when the employees are
very responsible and in case of creative jobs where a person is guided by his own aspirations.
In these cases, less direction is required so this style can be good. This style has more
disadvantages because usually it is the result of the lack of interest of the leader that leads to
his adopting this style. It proves poor management and makes the employees lose their sense of
direction and focus. The disinterest of the management and leadership causes the employees to
become less interested in their job and their dissatisfaction increases.
8. Bureaucratic Leadership
This is style of leadership that emphasizes procedures and historical methods regardless of
their usefulness in changing environments. Bureaucratic leaders attempt to solve problems by
adding layers of control, and their power comes from controlling the flow of information.
Bureaucratic leaders work “by the book”, ensuring that their staff follow procedures exactly.
This is a very appropriate style for work involving serious safety risks such as working with
machinery, with toxic substances, at heights or where large sums of money are involved such
as cash-handling.
In other situations, the inflexibility and high levels of control exerted can demoralize staff, and
can diminish the organization’s ability to react to changing external circumstances.
The different leadership styles discussed above proves that leadership styles are the
characteristics that critically define the leaders in organizations. They’re a mix-and-match of
various traits, and goes a long way influence the culture of the whole company and or
organization.
Activities and skills of Great leaders
Top 10 Leadership Soft Skills:
1. Communication:
As a leader, you need to be able to clearly and succinctly explain to your employees everything
from organizational goals to specific tasks. Leaders must master all forms of communication,
including one-on-one, departmental, and full-staff conversations, as well as communication via
the phone, email, and social media.
A large part of communication involves listening. Therefore, leaders should establish a steady
flow of communication between themselves and their staff or team members, either through an
open-door policy or regular conversations with workers. Leaders should make themselves
regularly available to discuss issues and concerns with employees. Other skills related to
communication include:
1. Active listening
2. Articulating
3. Business storytelling
4. Clarity
5. Concision
6. Correspondence
7. Editing
8. Explaining
9. Expression
10. Facilitating group conversations
11. Nonverbal communication
12. Presentation
13. Public speaking
14. Reading body language
15. Reducing ambiguity
16. Verbal communication
17. Written communication
2. Motivation
Leaders need to inspire their workers to go the extra mile for their organizations; just paying a
fair salary to employees is typically not enough inspiration (although it is important too). There
are a number of ways to motivate your workers: you may build employee self-esteem through
recognition and rewards, or by giving employees new responsibilities to increase their
investment in the company.
Leaders must learn what motivators work best for their employees or team members to
encourage productivity and passion. Skills related to effective motivation include:
1. Allowing employee autonomy

2. Asking for input
3. Assessing interests of staff
4. Convincing
5. Mentoring
6. Open to employee concerns
7. Persuasive
8. Providing productive and challenging work
9. Providing rewards
10. Recognizing others
11. Setting effective goals
12. Team-building
13. Thanking staff
14. Understanding employee differences
3. Delegating:
Leaders who try to take on too many tasks by themselves will struggle to get anything done.
These leaders often fear that delegating tasks is a sign of weakness, when in fact it is a sign of a
strong leader.
Therefore, you need to identify the skills of each of your employees, and assign duties to each
employee based on his or her skill set. By delegating tasks to staff members, you can focus on
other important tasks. Some skills that make a good delegator include:
1. Accepting feedback from employees

2. Allotting resources for employees
3. Assessing employee strengths and weaknesses
4. Defining expectations
5. Evaluating employee performance
6. Identifying measurable outcomes
7. Matching the task to the right employee
8. Prioritizing tasks
9. Setting expectations
10. Teamwork
11. Time management
12. Training
13. Trust in employees
4. Positivity
A positive attitude can go a long way in an office. You should be able to laugh at yourself
when something doesn't go quite as planned; this helps create a happy and healthy work
environment, even during busy, stressful periods. Simple acts like asking employees about
their vacation plans will develop a positive atmosphere in the office, and raise morale among
staff members. If employees feel that they work in a positive environment, they will be more
likely to want to be at work, and will therefore be more willing to put in the long hours when
needed.
Some skills that help make for a positive atmosphere in the workplace include:
1. Caring
2. Conflict management
3. Developing rapport
4. Diplomacy
5. Encouraging
6. Empathetic
7. Friendliness
8. Helping others
9. Humor
10. Interpersonal
11. Positive reinforcement
12. Respect
13. Social
5. Trustworthiness:
Employees need to be able to feel comfortable coming to their manager or leader with
questions and concerns. It is important for you to demonstrate your integrity – employees will
only trust leaders they respect.
By being open and honest, you will encourage the same sort of honesty in your employees.
Here are some skills and qualities that will help you convey your trustworthiness as a leader:
1. Ability to apologize
2. Accountability
3. Business ethics
4. Confidentiality
5. Conscientious
6. Consistent in behavior towards employees
7. Credibility
8. Emotional intelligence
9. Empathy
10. Honesty
11. Integrity
12. Moral compass
13. Reliability
14. Respectfulness
15. Standing up for what is right
16. Thoughtful
6. Creativity:
As a leader, you have to make a number of decisions that do not have a clear answer; you
therefore need to be able to think outside of the box.
Learning to try nontraditional solutions, or approaching problems in nontraditional ways, will

help you to solve an otherwise unsolvable problem. Most employees will also be impressed
and inspired by a leader who doesn't always choose the safe, conventional path. Here are some
skills related to creative thinking:
a) Analytical
b) Cognitive flexibility
c) Conceptualization
d) Critical thinking
e) Curiosity
f) Embracing different cultural perspectives
g) Foresight
h) Identifying patterns
i) Imaginative
j) Innovative
k) Listening to others’ ideas
l) Making abstract connections
m) Observation
n) Open-mindedness
o) Problem solving
p) Sound judgment
q) Synthesizing
r) Visionary
7. Feedback:
Leaders should constantly look for opportunities to deliver useful information to team
members about their performance. However, there is a fine line between offering employees
advice and assistance, and micromanaging. By teaching employees how to improve their work
and make their own decisions, you will feel more confident delegating tasks to your staff.
Employees will also respect a leader who provides feedback in a clear but empathetic way.
Some skills for giving clear feedback include:
a) Being open to receiving feedback

b) Building confidence in employees
c) Clarity
d) Clearly laying out expectations
e) Coaching
f) Following up
g) Frequent feedback
h) Listening to employees’ responses
i) Mentoring
j) Positive reinforcement
k) Providing specific advice
l) Respectful
8. Responsibility:
A leader is responsible for both the successes and failures of his or her team. Therefore, you
need to be willing to accept blame when something does not go correctly.
If your employees see their leader pointing fingers and blaming others, they will lose respect
for you. Accept mistakes and failures, and then devise clear solutions for improvement. Here
are some skills and qualities that help leaders convey their responsibility:

a) Acknowledging mistakes
b) Being open to customer feedback
c) Evaluating best solutions
d) Forecasting
e) Learning from past mistakes
f) Listening to feedback from employees and managers
g) Project planning
h) Reflectiveness
i) Resolving problems
j) Transparency
k) Trouble shooting
9. Commitment:
It is important for leaders to follow through with what they agree to do. You should be willing
to put in the extra hours to complete an assignment; employees will see this commitment and
follow your example.
Similarly, when you promise your staff a reward, such as an office party, you should always
follow through. A leader cannot expect employees to commit to their jobs and their tasks if he
or she cannot do the same. Some skills related to commitment in the workplace include:
 Applying feedback
 Commitment to company objectives
 Determination
 Embracing professional development

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ST.

MARTIN'S ENGINEERING COLLEGE

Researchers, management practitioners, psychologists, and social scientists must understand

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

In words of K Aswathappa, “OB is the study of human behaviour in organisational setting, of

According to L. M. Prasad, “Organisational behaviour can be defined as the study and

According to Fred Luthans, “Behaviour is directly concerned with the understanding,

OB is the study of individual behaviour in isolation, when in group and as a part of an

Personality, perception, learning, attitude, family background, training, motivation, job

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

i. Why people behave in a particular way?

ii. Why one person is more effective than the other?

iii. Why one group is more effective than the other?

Organisational Behaviour – Scope

The scope of the organizational behavior is as under:

Impact of personality on performance

How to create effective teams and groups

Study of different organizational structures

Individual behavior, attitude and learning

Design and development of effective organization

Impact of culture on organizational behavior

Management of conflict and stress

Group behavior, power and politics

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

Organizations are composed of number of individuals working independently or collectively in

Organizational behaviour has emerged as a separate field of study.

The nature it has acquired is identified as follows:

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

2. An Interdisciplinary Approach: Organizational behaviour is essentially an interdisciplinary

4. A Normative Science: Organizational Behaviour is a normative science also. While the

5. A Humanistic and Optimistic Approach: Organizational Behaviour applies humanistic

Organisational Behaviour – Important Characteristics

According the Keith Davis, ‘Organisational behaviour is an academic discipline concerned

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

Modern organisational behaviour is characterised by the acceptance of a human resource

Some of the important characteristics of organisational behaviour are discussed as follows:

However it is an inaccurate science to provide specific answers to specific organisational

Organisational Behaviour – 3 Levels: Individual, Group and Organisational Level

Following points discuss the three levels briefly:

Organisational Behaviour – Four Major Models: Autocratic, Custodial, Supportive and

Organizational environment denotes internal and external environmental factors influencing

Types of Organizational Environment

By the word “environment” we understand the surroundings or conditions in which a particular

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

Organizations have an external and internal environment;

Internal environment / Micro environment.

External environment / Macro Environment.

An organization’s operations are affected by both types of environments.

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

In this post, we will look at the elements of the organizations’ environment.

Internal Environment of Organization

Are we adding value by research and development or by customer service, or by prompt

The deployment of resources is a key managerial responsibility.

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

Elements of internal environment are;

Owners and Shareholders.

Resources of the Organization.

Owners and Shareholders

Owners of an organization may be an individual in the case of sole proprietorship business,

Employees or the workforce, the most important element of an organization’s internal

Department of CSE SM801MS- ORGANIZATIONAL BEHAVIOUR

An organization’s culture is viewed as the foundation of its internal environment.