MODULE 1

What is Personality Theory?

Personality theories have been used throughout history to address what makes up the personality of an
individual. A personality is how a person thinks, feels, and behaves. This influences how the person interacts
with their environment.
Personality is generally stable, although it can be influenced by environmental factors. An individual's
personality causes them to react to certain scenarios and people.
The four personality theories are:

• psychoanalytic
• humanistic
• trait perspective
• behaviorist theory

Personality theories study how an individual develops their personality and can be utilized in studying
personality disorders. These theories address whether personality is a biological trait or one that is developed
through a person's interaction with their environment.
Personality theories address the origins of personality as well as the traits that define a personality. These
theories look to understand why people develop different character traits and respond to external and internal
stimuli differently.

Psychoanalytic Personality Theory Definition

The psychoanalytic personality theory was developed by famed psychoanalyst Sigmund Freud. Freud believed
that an individual's personality was a summation of their innate instincts and their parental influences. He
thought that these two forces, nature, and nurture, worked together to form a complete personality.
Freud believed that personality was made up of the following components:

• instincts that drive behavior such as sex, hunger, and thirst

• unconscious thought processes that the person is unaware of
• childhood events, particularly parental influence and nurturing events

He believed that the events of the first five years of life developed the personality of adults. The instincts and
the environment of a child during these crucial years would affect his personality development.
Freud also believed that personality was defined by three components:

• The id controls the instinctual urges of a person.

• The ego moderates the urges of the id and superego and keeps them in check with reality.
• The superego is responsible for the development of a person's morals.
Freud hypothesized that children developed their personalities by progressing through a succession of stages
that focused on particular regions of the body. If a child progressed through the stages without incidence, they
would be well-developed in that area. If not, they may develop an infatuation later in life. For example, if a
child does not successfully pass the oral stage in life, they may develop an eating disorder later in life or may
become a chronic thumb-sucker.

Humanistic Personality Theory Definition

The humanistic personality theory was developed by Katherine Cook Briggs and Isabel Briggs Myers, a mother
and daughter. Humanistic personality theory highlights the importance of self-growth to develop healthy
personality traits. The researchers developed the test to understand the differences in personalities.
They developed the Myers-Briggs Type Indicator, a questionnaire created in 1975 to help people understand
their personality type. This test is used in clinical settings as well as research settings and has been translated
into thirty languages.
These test results split the individuals into 16 different personality groups. The goal is to place these people into
careers where they are happiest and to provide them with a better understanding of themselves.
The test helps the individual understand four components of personality:

• Introversion or extraversion refers to whether the person receives gratification from an outside stimulus,
extraversion, or internal stimulus, introversion.
• Sensing or intuition refers to if the person pays more attention to hands-on experiences, sensing, or
imaginative scenarios, intuition.
• Thinking or feeling measures if a person makes decisions based on facts, thinking, or emotion, feelings.
• Judging or perceiving measures if a person prefers structure, judging, or if they are more adaptable,
perceiving.

The Trait Perspective Personality Theory Definition

The trait personality theory emphasizes the characteristics of the personality and is less concerned with the
development of the personality. This theory concentrates on the descriptive terms used to detail an individual.
This theory believes that these descriptive terms, such as happy, outgoing, and angry, make up a personality.
This personality theory focuses on the differences between individuals that formulate their personalities. The
combination of these traits or descriptive terms works together to create the entire personality.
The character traits this theory focuses on are called the Big Five Personality Dimensions:

• Openness measures a person's adaptability, abstract thinking, and creativity.

• Conscientiousness focuses on an individual's ability to meet goals, pay attention to details, and prepare
for tasks.
• Extraversion measures if a person is excitable, easy to talk to, assertive, and conversational.
• Agreeableness measures the person's trust, empathy, affection, and kindness with others.
• Neuroticism focuses on whether a person is moody, stressed, sad, depressed, or is dramatic.

What Is Behavioral Personality Theory?

Behavioral personality theory, also known as behaviorism, is the study of human behavior as it correlates to
one's environment. Proponents of this school of thought believe that all behaviors are learned and that changes
in behavior are related to the people, situations, and places in which they occur. Behaviorists believe that people
learn behaviors based on systems of reward and punishment and that a person's behavioral development is due
to external forces. This reward system is called conditioning, and it defines human behavior as a response to
one's environment and not a product of the unconscious or unobservable mind.
John Watson developed behavioral personality theory in 1913. He believed that one could predict and even
control human behavior based on the behavior patterns observed in his patients and society. He believed that the
mind was a tabula rasa, or a "blank slate." Watson believed that the environment was the only force shaping
personality and behavior. He is best remembered for his "little Albert" experiment, in which he conditioned a
child to fear a mouse and various other objects. This process would later be known as conditioning and would
be more fully explored through the work of B.F. Skinner.

Organisational Beliefs
The most basic dimension of organisational behaviour, a belief is your assumed truth, ie a psychological state in
which an individual holds a proposition or premise to be true.
A deep moral or positional view that grounds our identity, beliefs are generated through experience,
experimentation, reflection or generalisation. One’s beliefs can also be influenced by external agents who are
authorities that hold a canon in specific areas.
Beliefs are fundamental positions rooted deep within our being. They influence our entire world view and shape
everything else that we do. As such, changing one’s beliefs do require considerable work.

Organisational Values
Our values spring from our beliefs. They can be defined as broad global principles that govern appropriate
courses of action or outcomes. Shaped by your moral compass, they govern what’s right or wrong in specific
contexts, determining your attitudes and behaviours.
In many organisations, you’ve probably heard of the term “shared values“. These can be explicitly highlighted
or implicit in the way certain things are done. Collectively, values decide how employees respond to a particular
activity or situation.
Universally, there are several values commonly adopted across different companies. They include integrity,
creativity, competitiveness, diligence, resilience, and esprit de corps, amongst others.

Organisational Attitudes
Finally, an attitude is a hypothetical construct that is formed from your beliefs and values. It represents an
individual or group’s affinity and perspective.
Attitudes can be positive or negative. They are often related to a specific entity, activity or object – ie a person,
place, thing, or event. As you’d imagine, the manifestation of your colleague, boss, or subordinate’s actions are
dependent on their attitudes.

Three Components of Attitudes

Attitudes in general comprise three components:

1. Cognitive, ie the stuff that you believe and think about;
2. Affective, ie the stuff that affects your feelings and emotions; and
3. Behavioural, ie the associations that are learned through doing.
1. Cognitive Consistency Theories:

Research has generally concluded that people seek consistency among their attitudes and between their attitudes

and their behaviour. This means that people seek to reconcile divergent attitudes and align their attitudes and

behaviour so that they appear rational and consistent. When there is an inconsistency, forces are initiated to

return the individual to an equilibrium state where attitudes and behaviour are again consistent. This can be

done by either altering the attitude or the behaviour or by developing a rationalization for the discrepancy.

The cognitive consistency theories are concerned with inconsistencies that arise between related beliefs, bits of

knowledge and evaluation about an object or an issue. Though various consistency theories differ in several

respects, all of them have a common object that is reducing the inconsistency and returning the individual to the

equilibrium state.

2. Functional Theory:

The functional theory considers how attitudes and efforts are related to the motivational structure of the

individual.

This theory focuses on two things:

(i) The meaning of the influence situation in terms of both the kinds of motives that it arouses and

(ii) The individual’s method of coping and achieving his goals.

An understanding of the functions served by attitudes is important for attitude change procedures since a

particular method may produce change in individuals whose attitudes serve one particular function, but may

produce no change in individuals for whom the attitudes serve a different function.

The most prominent person who visualized functional theory is Katz and he suggested four functions of

attitudes. However, Katz functional theory has not stimulated much research except for the work on changing

ego defensive attitudes.

Kelman has given another approach about the functional approach of attitudes.

He has distinguished three processes of attitude formation and change:

(i) Compliance
(ii) Identification and

(iii) Internalisation.

3. Social Judgment Theory:

The social judgment theory was originally formulated by Sherif and Hoveland. This theory attempts to explain

how existing attitudes produce distortions of attitude related objects and how these judgments mediate attitude

change. Thus, a person’s initial attitude towards an issue, serves as an anchor for the judgment of attitude

related stimuli. The person’s initial attitude on an issue provides a point of reference against which he evaluates

other opinions.

These views can be considered in terms of attitudinal continuum and can be considered as comprised of

latitudes. The latitude of acceptance, which is the range of opinions the individual finds acceptable,

encompasses the opinion that best characterises his own stand. The attitude of rejection, which is the range of

opinions the individual finds objectionable, encompasses the opinion he finds most objectionable. The attitude

of non-commitment is the range of opinions that the person finds neither acceptable nor unacceptable.

PERCEPTION

SELF PERCEPTION THEORY

Self-perception theory (SPT) is an account of attitude formation developed by psychologist Daryl Bem.[1][2] It
asserts that people develop their attitudes (when there is no previous attitude due to a lack of experience, etc.—

and the emotional response is ambiguous) by observing their own behavior and concluding what attitudes must

have caused it. The theory is counterintuitive in nature, as the conventional wisdom is that attitudes determine

behaviors. Furthermore, the theory suggests that people induce attitudes without accessing internal cognition

and mood states.[3] The person interprets their own overt behaviors rationally in the same way they attempt to

explain others' behaviors.

COGNITIVE DISSONANCE THEORY

Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or behaviors. This produces a
feeling of mental discomfort leading to an alteration in one of the attitudes, beliefs or behaviors to reduce the
discomfort and restore balance.
Cognitive dissonance theory suggests that we have an inner drive to hold all our attitudes and behavior in
harmony and avoid disharmony (or dissonance). This is known as the principle of cognitive consistency.
When there is an inconsistency between attitudes or behaviors (dissonance), something must change to
eliminate the dissonance.
Notice that dissonance theory does not state that these modes of dissonance reduction will actually work, only
that individuals who are in a state of cognitive dissonance will take steps to reduce the extent of their
dissonance.
The theory of cognitive dissonance has been widely researched in a number of situations to develop the basic
idea in more detail, and various factors that have been identified which may be important in attitude change.

What Causes Cognitive Dissonance?

1. Forced Compliance Behavior,
2. Decision Making,
3. Effort.

ATTRIBUTION
Attribution theory, proposed by Fritz Heider (1958), is a social psychology theory that deals with how
individuals relate and make sense of the social world. More specifically, it is concerned with how people
translate events around them and how their translations affect their thinking and behavior. The Attribution
Theory is concerned with how individuals perceive the information they receive, interpret events, and how these
form causal judgements.

No individual would take an action or decision without attributing it to a cause or factor.

According to Heider, this is aimed at assessing the explanation that people give to certain behaviors, it considers
how individuals interpret their behaviors.

Heider says that all behavior is considered to be determined by either internal or by external factors:

• External Attribution (Situational Attribution): Causality is assigned to an outside factor, agent or

force. Outside factors fall outside your control. You perceive you have no choice. So your behavior is
influenced, limited or even completely determined by influences outside your control. Therefore you
feel not responsible. A generic example is the weather.

• Internal Attribution (Dispositional Attribution): Causality is assigned to an inside factor, agent or

force. Inside factors fall inside your own control. You can choose to behave in a particular way or not.
So your behavior is not influenced, limited or even completely determined by influences outside your
control. Therefore you feel responsible. A typical example is your own intelligence.
There is a three-stage process underlying attribution:

1. Perception. Observe. The person must perceive or observe the behavior.

2. Judgment. Determine deliberateness. The person must believe that the behavior was intentionally
performed.

3. Attribute. The person must determine if he believes the other person was forced to perform the
behavior (in which case the cause is attributed to the situation) or not (in which case the cause is
attributed to the other person).

THEORIES OF ATTRIBUTION

➢ Dispositional attribution

Dispositional attribution assigns the cause of behavior to some internal characteristic of a person, rather than to
outside forces. When we explain the behavior of others we look for enduring internal attributions, such as
personality traits. This is known as the fundamental attribution error. For example, we attribute the behavior of
a person to their personality, motives or beliefs.

➢ Situational Attribution

The process of assigning the cause of behavior to some situation or event outside a person's control rather than
to some internal characteristic. When we try to explain our own behavior we tend to make external attributions,
such as situational or environment features.

MODULE 2 INDIVIDUAL BEHAVIOUR

MOTIVATION

Motivation theory is the study of understanding what drives a person to work towards a particular goal or outcome.
It’s relevant to all of society but is especially important to business and management.

That’s because a motivated employee is more productive, and a more productive employee is more profitableThere
are many different forces that guide and direct our motivations. It is important to ensure that every team
member in an organization is motivated and meets the best project management course bottom line.

THEORIES OF MOTIVATION

1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his needs are fulfilled. People do not
work for security or money, but they work to contribute and to use their skills. He demonstrated this by creating
a pyramid to show how people are motivated and mentioned that ONE CANNOT ASCEND TO THE NEXT
LEVEL UNLESS LOWER-LEVEL NEEDS ARE FULFILLED. The lowest level needs in the pyramid are
basic needs and unless these lower-level needs are satisfied people do not look at working toward satisfying the
upper-level needs.

Below is the hierarchy of needs:

• Physiological needs: are basic needs for survival such as air, sleep, food, water, clothing, sex, and
shelter.
• Safety needs: Protection from threats, deprivation, and other dangers (e.g., health, secure employment,
and property)
• Social (belongingness and love) needs: The need for association, affiliation, friendship, and so on.
• Self-esteem needs: The need for respect and recognition.
• Self-actualization needs: The opportunity for personal development, learning, and
fun/creative/challenging work. Self-actualization is the highest-level need to which a human being can
aspire.

2. Hertzberg’s two-factor Theory

The Herzburg two-factor theory, also known as the Herzburg's Hygiene Theory, posits that job satisfaction and
dissatisfaction are not opposites. The research underpinning this theory identifies characteristics of jobs that
related to job satisfaction - while a different set of job factors lead to dissatisfaction. Thus, eliminating
dissatisfaction will not necessarily create satisfaction and vice versa.
• Hygiene Factors - Dissatisfying factors are labeled as hygiene factors - as they are part of the context in
which the job was performed (rather than functions of the job itself). Common hygiene factors include:
work conditions, company policies, supervisions, salary, safety, and security.
• Motivators - Satisfying factors were labeled as motivators. Motivators, in contrast to hygiene factors,
are factors are intrinsic to the job. Common hygiene factors include: personal recognition, achievement,
engaging work, meaningful responsibilities, career advancement, and personal growth opportunities.
3. McClelland’s Theory of Needs

McClelland affirms that we all have three motivating drivers, which do not depend on our gender or age. One of
these drives will be dominant in our behavior. The dominant drive depends on our life experiences.

The three motivators are:

• Achievement: a need to accomplish and demonstrate own competence. People with a high need for
achievement prefer tasks that provide for personal responsibility and results based on their own efforts.
They also prefer quick acknowledgment of their progress.
• Affiliation: a need for love, belonging and social acceptance. People with a high need for affiliation are
motivated by being liked and accepted by others. They tend to participate in social gatherings and may
be uncomfortable with conflict.
• Power: a need for controlling own work or the work of others. People with a high need for power desire
situations in which they exercise power and influence over others. They aspire for positions with status
and authority and tend to be more concerned about their level of influence than about effective work
performance.

4. Vroom’s Theory of Expectancy

Vroom’s expectancy theory of motivation says that an individual’s motivation is affected by their expectations
about the future. In his view, an individual’s motivation is affected by –

• Expectancy: Here the belief is that increased effort will lead to increased performance i.e., if I work
harder then it will be better. This is affected by things such as:
o Having the appropriate resources available (e.g., raw materials, time)
o Having the appropriate management skills to do the job
o Having the required support to get the job done (e.g., supervisor support, or correct information
on the job)
• Instrumentality: Here the belief is that if you perform well, then the outcome will be a valuable one for
me. i.e., if I do a good job, there is something in it for me. This is affected by things such as:
o A clear understanding of the relationship between performance and outcomes – e.g., the rules of
the reward ‘game’
o Trust in the people who will take the decisions on who gets what outcome
o Transparency in the process decides who gets what outcome
 • Valence: is how much importance the individual places upon the expected outcome. For example, if
someone is motivated by money, he or she might not value offers of additional time off.

5. McGregor’s Theory X and Theory Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of Enterprise," and
they refer to two styles of management – authoritarian (Theory X) and participative (Theory Y).

Theory X: Managers who accept this theory believe that if you feel that your team members dislike their work,
have little motivation, need to be watched every minute, and are incapable of being accountable for their work,
avoid responsibility and avoid work whenever possible, then you are likely to use an authoritarian style of
management. According to McGregor, this approach is very "hands-on" and usually involves micromanaging
people's work to ensure that it gets done properly.

Theory Y: Managers who accept this theory believe that if people are willing to work without supervision, take
pride in their work, see it as a challenge, and want to achieve more, they can direct their own efforts, take
ownership of their work and do it effectively by themselves. These managers use a decentralized, participative
management style.

6. Alderfer’s ERG Theory

C. P. Alderfer, an American psychologist, developed Maslow’s hierarchy of needs into a theory of his own.

His theory suggests that there are three groups of core needs: existence (E), relatedness (R), and growth (G).
These groups are aligned with Maslow’s levels of physiological needs, social needs, and self-actualization
needs, respectively.

Existence needs concern our basic material requirements for living, which include what Maslow categorized as
physiological needs such as air, sleep, food, water, clothing, sex 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 on social interactions with others and are aligned with Maslow’s levels of love/belonging-related needs
such as friendship, family, and sexual intimacy and esteem-related needs such as gaining the respect of others.

Growth needs describe our intrinsic desire for personal development. These needs are aligned with the other
part of Maslow’s esteem-related needs such as self-esteem, self-confidence, and achievement, and self-
actualization needs such as morality, creativity, problem-solving, and discovery.
QWL
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.”

Criterias for measuring QWL.

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 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.
4. 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.
5. 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.

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:

1. Compensation
2. Health and Safety
3. Job Security
4. Job Design
5. Social Integration
6. Social Relevance of Work
7. Scope for Better Career Opportunities
JOB ENLARGEMENT
The definition of job enlargement is adding additional activities within the same level to an existing role. This
means that a person will do more, different activities in their current job. For example, an employee who will now
also manage her own planning where this was formerly done by her manager. Job enlargement is a key technique
in job redesign, along with job enrichment, job rotation, and job simplification.Job enlargement is often confused
with job enrichment. However, there is a distinct difference. Job enlargement aims at broadening one’s job in
order to make the job more motivating. Job enrichment is the process of adding motivators to existing jobs. This
means that job enlargement is a way to do job enrichment but not all job enrichment activities are also considered
job enlargement. We will explain this in more depth later.

Job enlargement advantages

1. Creating a wider range of activities

2. Reduces monotony

3. Teaches a variety of skills and helping career growth

4. Earn a higher wage

5. Gives more autonomy, accountability, and responsibility

JOB ENRICHMENT

Job enrichment is a process that is characterized by adding dimensions to existing jobs to make them more

motivating. Examples of job enrichment include adding extra tasks (also called job enlargement), increasing

skill variety, adding meaning to jobs, creating autonomy, and giving feedback. The goal of job enrichment is to

create a motivating job. This can be done, for example, by taking a regular, ‘boring’ job and adding extra

responsibilities that make the job more meaningful for the worker. Job enrichment is, therefore, part of job

design and job redesign. The biggest reason to invest in job enrichment is that it leads to motivation. This makes

job enrichment especially relevant for highly skilled, white-collar service jobs.
According to Fein (1986), job enrichment is less important for blue-collar workers. Here their primary concern

is pay, job security, and the rules of the workplace. Job enrichment is less effective in this context because it

does not address these problems. To conclude with a job enrichment definition: Job enrichment is the process of

adding motivators to existing roles in order to increase satisfaction and productivity for the employee.

Advantages of job enrichment

As mentioned in our definition, the main goal of job enrichment is to create motivation, higher satisfaction, and

work quality improvements for employees. The results of job enrichment can be categorized in psychological

states and personal and work outcomes. Examples of psychological states are meaningfulness, responsibility for

the outcomes of the work, and knowledge of the actual results and impact of the work. Examples of work

outcomes are motivation, high-quality work performance, higher work satisfaction, better employee experience,

and lower absence and employee turnover.

JOB ROTATION
Job Rotation is a management approach where employees are shifted between two or more assignments or jobs
at regular intervals of time in order to expose them to all verticals of an organization. It is a pre-planned
approach with an objective to test the employee skills and competencies in order to place him or her at the right
place. In addition to it, it reduces the monotony of the job and gives them a wider experience and helps them
gain more insights. Job rotation is a well-planned practice to reduce the boredom of doing same type of job
everyday and explore the hidden potential of an employee. The process serves the purpose of both the
management and the employees. It helps management in discovering the talent of employees and determining
what he or she is best at. On the other hand, it gives an individual a chance to explore his or her own interests
and gain experience in different fields or operations.

Job Rotation Objectives

▪ Reducing Monotony of the Job: The first and foremost objective of job rotation is to reduce the
monotony and repetitiveness involved in a job. It allows employees to experience different type of jobs
and motivates them to perform well at each stage of job replacement.
▪ Succession Planning: The concept of succession planning is ‘Who will replace whom’. Its main
function of job rotation is to develop a pool of employees who can be placed at a senior level when
 someone gets retired or leaves the organization. The idea is to create an immediate replacement of a
high-worth employee from within the organization.
▪ Creating Right-Employee Job Fit: The success of an organization depends on the on-job productivity
of its employees. If they’re rightly placed, they will be able to give the maximum output. In case, they
are not assigned the job that they are good at, it creates a real big problem for both employee as well as
organization. Therefore, fitting a right person in right vacancy is one of the main objectives of job
rotation.
▪ Exposing Workers to All Verticals of the Company: Another main function of job rotation process is
to exposing workers to all verticals or operations of the organization in order to make them aware how
company operates and how tasks are performed. It gives them a chance to understand the working of the
organization and different issues that crop up while working.
▪ Testing Employee Skills and Competencies: Testing and analyzing employee skills and competencies
and then assigning them the work that they excel at is one of the major functions of job rotation process.
It is done by moving them to different jobs and assignments and determining their proficiency and
aptitude. Placing them what they are best at increases their on-job productivity.
▪ Developing a Wider Range of Work Experience: Employees, usually don’t want to change their area
of operations. Once they start performing a specific task, they don’t want to shift from their comfort
zone. Through job rotation, managers prepare them in advance to have a wider range of work experience
and develop different skills and competencies. It is necessary for an overall development of an
individual. Along with this, they understand the problems of various departments and try to adjust or
adapt accordingly.

JOB RE-ENGINEERING

Reengineering of a job is done considering the job nature, individual features and experiences of employees, job
performances and satisfaction. The form of reengineering depends on different levels and the nature of the job.
Achievement and autonomy are needed for proper performances. Job reengineering varies from person to person,
job to job and company to company. For example, high performers and enthusiastic persons are needed for
salesmanship, technically trained and experienced workers are required for production purposes. Job re-
engineering is needed to suit different requirements of employees. Different levels of employees need to be
satisfied with the reengineering of the job. Reengineering should satisfy individual and organizational objectives
through the proper reallocation of jobs and satisfying individual needs. Many employees prefer out of job
work.They should be assigned jobs according to their interests.
Reengineering of jobs enrich jobs, as employees preferring routine jobs are given routine jobs. Low skilled
employees are given low skilled jobs. Job preferences depend on numerous factors such as the nature of jobs,
pay, complexities, working conditions and attitudes of management, nearness to home, job security, and physical
functions and so on.

While reengineering jobs, all these factors are thoroughly considered. Scientific management for specialization,
job enrichment for vertical movement, and job enlargement for horizontal expansion has also been considered
under job reengineering. Under job reengineering, a higher order of needs is to be fulfilled, as many employees
prefer higher standards of living. Redesigned jobs should be worthwhile and meaningful to employees. A job is
meaningful when an employee considers that the accomplishment is the result of his personal effort. He is
assigned responsibility for the success and failure of the performance.

Job Satisfaction
Job satisfaction is defined as the extent to which an employee feels self-motivated, content & satisfied with
his/her job. Job satisfaction happens when an employee feels that he/she is having job stability, career growth
and a comfortable work life balance. This implies that the employee is having satisfaction at job as the work
meets the expectations of the individual.

There are a lot of factors which go together to ensure high job satisfaction rates in a company. The measurement
or perception of job satisfaction may be different from IT sector when compared to manufacturing sector.

Importance of Job Satisfaction

A satisfied employee is always important for an organization as he/she aims to deliver the best of their
capability. Every employee wants a strong career growth and work life balance at workplace. If an employee
feels happy with their company & work, they look to give back to the company with all their efforts.

Importance of job satisfaction can be seen from two perspectives:

For Employees

Job satisfaction from an employee perspective is to earn a good gross salary, have job stability, have a steady
career growth, get rewards & recognition and constantly have new opportunities.

For Employers

For an employer, job satisfaction for an employee is an important aspect to get the best out of them. A satisfied
employee always contributes more to the company, helps control attrition & helps the company grow.
Employers needs to ensure a good job description to attract employees and constantly give opportunities to
individuals to learn and grow.
 MODULE 3 INDIVIDUAL BEHAVIOUR

Leadership can be defined as the ability of the management to make sound decisions and inspire others to perform
well. It is the process of directing the behavior of others towards achieving a common goal. In short, leadership
is getting things done through others. Leadership is very important in a firm as it leads to higher performance by
the team members, it improves motivation and morale within the members, and helps to respond to change.
Leadership facilitates organizational success by creating responsibility and accountability among the members of
the organization. In short, it increases value in an organization.

THEORIES OF LEADERSHIP

• Fred Fiedler’s Contingency Theory of Leadership

Fred Fiedler proposed a situation based or contingency theory for leadership effectiveness.

Fiedler developed what he called a contingency model of leadership effectiveness. This model contained the
relationship between leadership style and the favorableness of the situation. Fiedler described situational
favourableness in terms of three empirically derived dimensions:
1. The leader member relationship, which is the most critical variable in determining the situation’s
favourableness.
2. The degree of task structure, which is the second most important input into the favourableness of the
situation.
3. The leader’s position power obtained through formal authority, which is the third most critical
dimension of the situation.

Situations are favourable to the leader if all three of the above dimensions are high. In other words, if the leader
is generally accepted by followers; if the task is very structured and everything is “spelled out” and if a great
deal of authority and power is formally attributed to the leader’s position (high third dimension). If the opposite
exists the situation will be very unfavourable for the leader. Fiedler was convinced that the favourableness of
the situation in combination with the leadership style determines effectiveness. Through the analysis of research
findings, Fiedler was able to discover that under very favourable and very unfavourable situations, the task-
directed, autocratic type of leader was most effective. However, when the situation was only moderately
favourable or unfavourable (the intermediate range of favourableness), the human relations, or lenient, type of
leader was most effective.

• Path-Goal Leadership Theory

Robert House of the University of Toronto initially developed this theory, and House and Mitchell later refined
it. It is called ‘path-goal approach’ because its primary concern is the leaders ‘influence on his followers’
perception of their work goals, personal goals and paths to achievement of these goals. It is based on the notion
that a leader behaviour motivates and satisfies his followers to such an extent that it promotes the attainment of
the followers’ goals and clears the path to attainment of these goals. It uses expectancy framework from
motivation theory of Vroom. Leadership, according to this path-goal theory is closely related to motivation on
the one hand, and the power, on the other. In essence, the theory attempts to explain the impact that leader
behaviour has on followers’ motivation, satisfaction and performance. According to the authors of the theory
there are four basic or major styles of leadership behaviour.

They are:
1. Directive Leadership: Here the subordinates know exactly what is expected of them and the leader
gives specific directions. There is no participation by the subordinates. When the demands of task on
hand are ambiguous or when organisational procedures, rules and policies are not clear, a directive
leader may complement the task by providing the necessary guidance and psychological structure for
his followers. When the demands of the task are clear to the followers, high level of directive
leadership may impede effective performance.

2. Supportive Leadership: The leader is friendly and approachable and shows a genuine interest for
subordinates. This style of leadership has its most positive effect on the satisfaction of followers who
perform tasks that are full of stress, and are frustrating and unsatisfactory or unsatisfying.

3. Participative Leadership: The leader asks for and uses suggestions from subordinates but takes the
decision by himself.

4. Achievement-oriented Leadership: The leader sets challenging goals for subordinates and shows
confidence in them to attain these goals and perform well. For followers performing ambiguous, non-
repetitive tasks the higher the achievement orientation of the leader the more confident they would be
that their efforts would pay-off in effective performance. Contrary would be the case, when followers
perform unambiguous and repetitive tasks.
The path goal theory suggests that these various styles can be and actually are used by the same leader
depending on the characteristics of the subordinates and the environmental pressures.

• The Situational Theory of Leadership

Situational theories of leadership work on the assumption that the most effective style of leadership changes
from situation to situation. To be most effective and successful, a leader must be able to adapt his style and
approach to diverse circumstances. For example, some employees function better under a leader who is more
autocratic and directive. For others, success will be more likely if the leader can step back and trust his team to
make decisions and carry out plans without the leader’s direct involvement. On a similar note, not all types of
industries and business settings require the same skills and leadership traits in equal measure. Some fields
demand a large measure of innovation, whereas in others, personal charisma and relational connection with
clients are far more important.

The theory identifies four main leadership approaches:

 • Telling: Directive and authoritative approach. The leader makes decisions and tells employees
what to do.
• Selling: The leader is still the decision maker, but he communicates and works to persuade the
employees rather than simply directing them.
• Participating: The leader works with the team members to make decisions together. He supports
and encourages them and is more democratic.
• Delegating: The leader assigns decision-making responsibility to team members but oversees
their work.

In addition to these four approaches to leadership, there are also four levels of follower maturity:

• Level M1: Followers have low competence and low commitment.

• Level M2: Followers have low competence, but high commitment.
• Level M3: Followers have high competence, but low commitment and confidence.
• Level M4: Followers have high competence and high commitment and confidence.

• Leadership Participation Model

Participative leadership theory is a leadership style that seeks input from every member of the organization.
Generally, the leader asks for thoughts and ideas from their team members before making decisions or
establishing new processes and procedures. In most cases, participative leadership follows this process:

1.The leader facilitates a meeting with the team.

2.The leader shares any necessary information and knowledge about the project or problem to solve.

3.Team members share their ideas and thoughts with the group.

4.The group processes all the ideas and information.

5.The group or group leader makes a decision.

6.The leader communicates the decision to other stakeholders as needed.

7.The group proceeds with the project.

LEADER VS MANAGER
A leader is someone whom people follow or someone who guides or directs others. A manager is someone who
is responsible for directing and controlling the work and staff in an organization, or of a department within it.
The main difference between the two is that a leader works by example, while a manager dictates expectations.
If a manager goes against the rules, that will tarnish his position as a manager. If a leader goes against the example
he or she is trying to set, that will be seen as a setback. Following are a few subtle differences between the two −
• A leader is an innovator and creator whereas a manager is a commander.
• A leader can’t be a manager but the opposite is possible, a manager is more than a leader.
• A leader does what is right, while the manager makes things right.
• A leader deals with change whereas a manager plans for a change.
• A leader gives direction to do something whereas the manager plans for everything that is to be done.
• A leader encourages people whereas the manager controls people.
 • A leader handles communication, credibility, and empowerment whereas a manager deals with organizing
and staffing.

LEADERSHIP STYLES

Different leadership styles exist in work environments. The culture and goal of an organization determine which
leadership style fits best. Some organizations offer different leadership styles within an organization, depending
on the necessary tasks to complete and departmental needs.
We find five different leadership styles in the corporate world. They are as follows −
• Laissez-Faire
A laissez-faire leader does not directly supervise employees and fails to provide regular updates to those under
his supervision. Highly experienced and trained employees with minimal requirement of supervision fall under
the laissez-faire leadership style.
But, not all employees possess these features. This leadership style blocks the production of employees needing
supervision. The laissez-faire style implements no leadership or supervision efforts from managers, which can
lead to poor production, lack of control and increasing costs.
• Autocratic
The autocratic leadership style permits managers to make decisions alone without the input of others. Managers
access total authority and impose their will on employees. No one opposes the decisions of autocratic leaders.
Countries like Cuba and North Korea operate under the autocratic leadership style.
This leadership style benefits those who require direct supervision. Creative employees who participate in group
functions detest this leadership style.
• Participative
This is also known as the democratic leadership style. It values the input of team members and peers, but the
responsibility of making the final decision rests with the participative leader. Participative leadership motivates
employee morale because employees make contributions to the decision-making process. It accounts to a feeling
that their opinions matter.
When an organization needs to make changes within itself, that is internally, the participative leadership style
helps employees accept changes easily as they play a role in the process. This leadership style meets challenges
when companies need to make a decision in a short period of time.
• Transactional
Transactional leadership style is formed by the concept of reward and punishment. Transactional leaders believe
that the employee's performance is completely dependent on these two factors. When there is an encouragement,
the workers put in their best effort and the bonus is in monetary terms in most of the cases. In case they fail to
achieve the set target they are given a negative appraisal.
Transactional leaders pay more attention to physical and security requirements of the employees.
• Transformational
Transformational leadership has the ability to affect employee's perceptions through the returns that organization
gets in the form of human capital benefits. These leaders have the ability to reap higher benefits by introducing
knowledge management processes, encouraging interpersonal communication among employees and creating
healthy organizational culture.
It helps in flourishing organizational innovation by creating a participative environment or culture. It promotes a
culture where the employees have autonomy to speak about their experiences and share knowledge.
It has been seen that transformational leaders are more innovative than transactional and laisse-faire leaders.

LEADERSHIP EFFECTIVENESS
“The successful exercise of personal influence by an individual, which results in accomplishing one or several
goals as a result of the coordinated efforts of those who are led.”

Leadership effectiveness used to be measured in terms of a leader’s ability to influence, coordinate and control
others on a top-down basis. While some of these factors surely still play a part, leadership effectiveness has
evolved with the times, especially in the context of global leadership.

As we move away from an authoritarian style of leadership, global leaders can no longer rely strictly on the
authority of their position. Team members and employees have an evolved expectation of what effective
leadership entails. They expect leaders who are

• accountable,
• able to inspire change, and
• hold to values that are worthy of respect.

Add to that the fact that being “close” to your team and remaining an active part of their development as their
global leader, who is often not situated in the same location, and it becomes clear that leadership effectiveness
for global leaders adds another level of skill sets that must be met.

BEHAVIOURAL LEADERSHIP

The behavioural leadership theory is a management theory that evaluates leaders according to their
behaviours, actions and management style. This philosophy proposes that all you require to become an
influential leader is to adopt a specific set of behaviours. If you are looking to become a better leader or
implement a new leadership style, you can benefit from learning about this theory and the different types of
leadership it defines. In this article, we describe the behavioural theory of leadership, explain its various
types and discuss the behaviours associated with each style.

➢ PEOPLE ORIENTED LEADER

People-oriented leaders inculcate behaviours that allow them to meet the requirements of the people
they interact with, such as their clients, supervisors and employees. Effective interpersonal
communication and networking drive these leaders to build lasting relationships with those around
them and inspire their teams to perform.

➢ TASK ORIENTED LEADERS

Task-oriented leaders usually focus on setting up goals and achieving organisational objectives as
their primary focus is on task execution rather than people management. These leaders often display
authoritative behaviour and usually excel in well-structured and organised environments.

➢ PARTICIPATIVE LEADERS
Participative leaders ensure the active participation of all their team members in the decision-making
processes. These leaders focus on functional communication, collaboration and feedback to enhance
the workflow and productivity of their projects.
 ➢ STATUS – QUO LEADERS
Status-quo leaders focus both on increasing company productivity and employee satisfaction. These
leaders follow a balanced approach to execute all timely tasks while also providing support and
constant encouragement to their fellow team members.

SITUATIONAL LEADERSHIP

Situational Leadership is a style of leadership where leaders consider the readiness level of the team members
they serve and the uniqueness of every situation. Paul Hersey and Ken Blanchard developed the Situational
Leadership model in 1969 while working on Management of Organizational Behavior. The Situational
Leadership approach can help you develop relationships with your team members because you’ll customize
your style of leadership to their development level. Each team member requires a unique level of hands-on and
communication-based leadership. It’s up to you to assess your team members’ skills, confidence, and
motivation, and determine what type of leadership style to use.

TYPES OF SITUATIONAL LEADERS

➢ DIRECTING

Directing Situational Leadership style, also known as guiding or telling. When directing, the level of
directive behavior is high, while the level of supportive behavior is low. This leadership style is most
effective when the team member requires close supervision by you as the leader, either because they’re
inexperienced or because they have low commitment to the task at hand.

➢ COACHING

Coaching Situational Leadership style, also known as selling or explaining. When coaching, the level of
directive behavior is high and so is the level of supportive behavior. This Situational Leadership style is
most effective for the enthusiastic beginner, because you can observe and support them without close
supervision.

➢ SUPPORTING

Supporting Situational Leadership style, also known as participating or facilitating. This style differs
from Styles 1 and 2, because it is high on supportive behavior and low on directive behavior, making it
team member driven. Use this leadership style if your team member has the skills necessary to complete
the task at hand but lacks the confidence or motivation to do it successfully.
 ➢ DELEGATING

Delegating Situational Leadership style, also known as empowering or monitoring. This style involves
low directive behavior and low supportive behavior because it’s a team member driven leadership style.
When team members are self-reliant achievers, they may need you to take a back seat in your leadership
role. This style promotes freedom for team members and fosters trust among teams.

POWER

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.

Power is a person’s capacity or ability to exert their will over someone else. Every employee,
including managers, exerts a form of power in their places of work. Different types of power are useful in
different situations. Power can be earned through an educational background or by gaining experience in
the field. Or it may be bestowed upon an employee by a company’s management, executives, owners, or
shareholders.

AUTHORITY

Authority is the formal and often legal right that a person holds to make decisions and give commands to
others. Economist and sociologist Max Weber identified three types of authority. These are traditional
authority, charismatic authority (not to be confused with charismatic leadership), and legal-rational
authority.

In the workplace, authority gives someone the power to enact organizational changes to a workplace. High
executives, owners, and officials tend to have authority in order to achieve a business’s key objectives.

DIFFERENCE BETWEEN POWER AND AUTHORITY

1. Meaning

Power is the capacity of a person to influence others and alter their actions, beliefs, and behaviors.
However, it’s important to note that there is a difference between power vs. influence.

Authority is the legitimate power that a person or group is granted to practice over others within an
organization.

2. Source

The source of power depends on the type of power.

Some people see power as something they receive from an external source. This could be an assigned title
or position that gives someone control. For example, a police officer would have legitimate power. His
power comes from his position. Some people see power as a personal trait that is derived from
status, charisma, and even financial and social standing. It is an acquired ability that often stems from
superior knowledge and expertise.In this case, power is the self-granted right to control the decisions and
actions of others.

Position and office determine a person’s authority in a specific situation. Authority is attached to a
position it is conferred to. This means that whichever person holds the position is also granted the
authority attached to it. The higher that person’s ranking or position, the high er their authority will be.

3. Hierarchy

The hierarchy of power vs. authority is very different.

Power does not follow a specific hierarchy. It can instead flow in any direction. This could be from
superior to subordinate, subordinate to superior, or junior to senior. Or it could be between people working
on similar levels but different departments.

4. Ability to be lost

You can lose both power and authority. But power is easier to lose than authority.Power is lost quickly
through mistakes, as well as poor actions and behaviors. However, it’s important to note that people often
become more powerful the longer they work in a given industry. Because power is built on expertise and
experience, a person who makes repeated mistakes in business can lose their credibility — even if they
were very powerful before.

Authority is more technical and static in nature. It’s only lost when a person in a position of authority
loses the position associated with the authority. An organization can take authority away from someone by
removing them from their positions. Or by removing responsibilities from that position that formerly gave
them a certain amount of authority.

5. Formality

Power is more informal. It may be obtained through illegitimate or informal means, such as nepotism and
corruption or organizational networks.

Authority, on the other hand, is both legitimate and formal. It needs to be granted by a person or entity in
a superior position and can get revoked under specified circumstances or misuses.

6. Legitimacy

People can acquire power through illegitimate means. Power may also be abused. Because of this, it tends
to have less legitimacy than authority. This is particularly true in a workplace setting.

Employees are generally more likely to respect a superior’s authority than power exerted from someone of
the same rank. The legality behind authority also provides added legitimacy in some cases.
BASES OF POWER

• FORMAL POWER

➢ Coersive Power

The coersive power base depends on the target’s fear of negative results fro m failing to
comply.

➢ Reward Power

The opposite of coersive power is reward power, with which people comply because it
produces positive benefits.

➢ Legitimate Power

It represents the formal authority to control and use organizational resources based on the
person’s structural position in the organization. Legitimate power is broader than the power
to coerce and reward.

• INFORMAL POWER

➢ Personal Power – Individual’s unique characteristics.

➢ Expert Power

Expert power is influence wielded as a result of expertise, special skills or knowledge. As

jobs become more specialized, we become dependent on experts to achieve goals.

➢ Referent Power

It is based on identification with a person who has desirable resource or personal traits. If I
like, respect, and admire you, you can exercise power on me because I want to please you.

DEPENDENCE: THE KEY TO POWER

The greater B’s dependence on A, the more power A has over B. when you possess anything others
require that you alone control, you make them dependent on you, and therefore you given power over
them. The more you can expand your own options, the less power you place in the hands of others.

WHAT CREATES DEPENDENSE?

• IMPORTANCE

Many degrees of importance, from needing the resource for survival to wenting a resource that is in
fashion or adds to convenience.

• SCARCITY
 Where the supply of labour is low relative to demand, workers can negotiate compensation and
benefits packages for a more attractive than those in occupations with an abundance of candidates.

• NON-SUBSTITUTABILITY

The fewer viable substitutes for a resource, the more power or person controlling that resource has .

MODULE 4 GROUP BEHAVIOUR

Group behavior in organizations tends to follow the organizational norms and rules wherein the employees are
expected to be disciplined, follow orders, and work to the requirements of the organization rather than their own
whims and fancies. Indeed, the extreme form of groups conforming to the common codes of behavior is the
armed forces wherein all members at whatever level they are in are expected to follow the orders of their
superiors.

Types of Groups

There are two types of groups individuals form. They are formal groups and informal groups. Let us know about
these groups.
Formal Groups
These are the type of work groups created by the organization and have designated work assignments and rooted
tasks. The behavior of such groups is directed toward achieving organizational goals.
Formal groups can be further classified into two sub-groups −
• Command Group − It is a group consisting of individuals who report directly to the manager.
• Interest Group − It is a group formed by individuals working together to achieve a specific
objective.
Informal Groups
These groups are formed with friendships and common interests.
These can be further classified into two sub-groups −
• Task group − Those working together to finish a job or task is known as a task group.
• Friendship group − Those brought together because of their shared interests or common
characteristics is known as friendship group.

SOCIAL IDENTITY THEORY

Social identity is the part of an individual’s self-image that is determined by the groups to which an individual
belongs. Social Identity Theory was formulated by social psychologists Henri Tajfel and John Turner in 1979.
The theory examines the circumstances under which social identity is more important than the identity of an
individual. In addition, it describes the different ways in which social identity can influence group behavior.
This is also called social psychology of intergroup behavior.

An individual doesn’t just have a personal self, but multiple identities associated with their groups they’re
connected to. A person can behave differently in different social contexts depending on the group to which
someone belongs. Social Identity Theory stems from earlier work by Henri Tajfel. In it he investigated the way
in which perceptual processes lead to stereotypes and prejudices. Eventually, this led him to do a series of
studies referred to as minimal-group studies.

In these studies, the different participants were randomly assigned to groups. Their membership was basically
pointless, yet the participants preferred the group they were assigned to.

This shows that group membership is so powerful that simply dividing people into groups is enough to make
them think of themselves in terms of this particular group membership.

It was also found that categorizing people in such a way led to favoritism and discrimination towards members
of other groups. This confirms that conflict between groups also occurs when there is no competition between
groups.

NORM

Group norms are the informal rules that groups adopt to regulate and regularize group members' behavior.
Although these norms are infrequently written down or openly discussed, they often have a powerful, and
consistent, influence on group members' behavior.

Group norms are the informal guidelines of behavior and a code of conduct that provides some order and
conformity to group activities and operations. These rules are expected to be followed by all the group
members. These norms and rules usually develop gradually and informally as group members learn as to what
behaviors are necessary for the group to function effectively. These norms may include a code of dress for
meetings or being on time for the meetings and behaving in a predictable manner both within and outside
the group meetings.

CONFORMITY

The process whereby people change their beliefs, attitudes, actions, or perceptions to more closely match those
held by groups to which they belong or want to belong or by groups whose approval they desire. Conformity
helps to unify the organization into behaving as one entity working towards a shared objective. In order to do
this, companies need to have regulations and guidelines in place to help streamline and regulate output
standards in order to maintain brand integrity. It may be argued that conformity strangles creativity and it does
to a certain extent.

However, allowing employees to come to work without any defined work flow is not conducive to running a
successful business. Conformity arrests this issue, but outlining company standards and expectations of
employees. It enables organizations to have a degree of uniformity which better ensures that everyone is
working towards a common goal.

COHESIVENESS

Group cohesiveness arises when bonds link members of a social group to one another and to the group as a
whole. Although cohesion is a multi-faceted process, it can be broken down into four main components: social
relations, task relations, perceived unity, and emotions.
GROUP FORMATION

A group refers to two or more individuals who have come together with a common objective. The members of a
group interact and are interdependent on each other with the view of achieving a particular objective. Groups are of 2
broad categories: formal group and informal group.

An organizational structure defines the formal groups with establishing a set of tasks and jobs. The main purpose of
forming formal groups is to help the organization achieve certain objectives. Examples of formal groups are
departmental teams, project groups who work as a group until the completion of the project, etc.

Informal groups are those groups that do not get their definition and formation by an organization. Informal groups
are neither formal structures or have an organizational determination.

STAGES OF GROUP FORMATION

Forming

This is a beginning stage and lasts only a few days (or weeks). Members begin by planning their work and their
new roles. Moreover, the emotions here are positive. The groups should begin by learning about team processes in
preparation for the rough times ahead.

Storming

There exists a considerable amount of fights and arguments in this stage. People begin to feel the stress of
frustration, resentment, and anger. Moreover, as the problem festers, the job remains undone.

Norming

In the norming stage, the group works through individual and social issues. The group establishes its own norms of
behaviour and begin to trust each other. Moreover, as the group develops interpersonal skills, it becomes all the
more skilled.

Performing

In this stage, the group is ready to begin performing its respective task and assigned jobs. In this stage, the group
has become well acquainted with one another and has clarity with regard to what needs to and has to be done. The
performing stage begins when the group is comfortable to work and ends when the job is completed.

Adjourning

Post the performing stage, the group is adjourned. The adjourning stage ends the process of group formation.
Because the group is adjourned once the task that is assigned to the group is completed.
GROUP DYNAMICS

Group dynamics studies the nature, formation and reasons for forming the groups. It studies how
groups affect the behaviour and attitude of members and the organisation. It is a process by which
people interact with each other. If groups are effectively managed, they contribute a lot to
organisational goals. Group dynamics deals with the attitudes and behavioral patterns of a group. It can be used as
a means for problem-solving, teamwork, and to become more innovative and productive as an organization. The
concept of group dynamics will also provide you with the strengths, success factors and measures along with other
professional tools.

TEAM BUILDING

Team building is the process of creating a team that cohesively works together towards a common goal. The
importance and main purpose of team building is to create a strong team through forming bonds and
connections. Creating these bonds through team building is very beneficial to businesses and organizations. The
benefits of team building include increased communication, planning skills, employee motivation, and
employee collaboration.

Team building is not a one-time act. It is a step by step process which aims at bringing a desirable change in the
organization. Teams are usually formed for a particular task or project and are mostly for the short term.
GROUP STRUCTURE

Group structure is defined as the layout of a group. It is a combination of group roles, norms, conformity,
workplace behavior, status, reference groups, status, social loafing, cohorts, group demography and
cohesiveness.

• Group Roles − The different roles a person plays as a part of the group.
• Norms − The typical standard set by the group collaboratively that every member has to follow.
• Conformity − The decisions or stand taken by majority in the group.
• Workplace behavior − The ethics that one needs to follow while working with an organization.
• Status − The designation of members in the group.
• Social Loafing − The phenomena where group members put less effort towards achieving a goal
than they would have while working alone.
• Cohorts − Sharing common behavior in the group.
• Reference Groups − Other groups to which a group is compared to.
• Group Demography − Extent of sharing same behavior.
• Cohesiveness − Extent of belongingness towards each other in the group.

GROUP DECISION TECHNIQUES

Group decision-making is a process where a group of individuals collectively make a decision. The decision is
usually reached through discussion and consensus. This type of decision-making is often used in business
settings, as it allows for multiple perspectives to be considered before a final decision is made.

GROUP DECISION MAKING TECHNIQUES

There are a large variety of group decision-making techniques that can be used. The most important part of
using any technique is to ensure that all members of the group are comfortable with the technique and that it is
appropriate for the decision that needs to be made. Some commonly used techniques include the nominal group
technique, the Delphi technique, and brainstorming.

• Nominal Group Technique

The nominal group technique is a structured way of collecting ideas from a group of people. As with other
group decision-making techniques, it is often used when a group needs to generate new ideas or when there is a
need to reach a consensus on an issue. The nominal group technique involves group members generating and
submitting their ideas in a written form, followed by a step of discussion and clarification, and finally a vote.
This technique can be beneficial as it allows all members of the group to have their say without the pressure of
speaking in front of others. It can also be helpful in reducing conflict in case of situations where just a few
individuals dominate the discussion.

• Delphi Technique

The Delphi technique involves the use of surveys to collect information from a group of experts. The experts
are typically asked to provide their opinions on various questions or an overall topic anonymously. These
answers are then compiled and shared with the group. After this, the process may be repeated with the experts
being asked to consider the answers that were given and revise their own opinions. This process is repeated
until there is a consensus amongst the experts.

• Brainstorming

Brainstorming is a technique that is often used to generate many new ideas quickly. It can be used when a group
needs to come up with an extensive list of ideas or when there is a need to find a creative solution to a problem.
Brainstorming can be an effective tool as it allows all members of the group to share their ideas in an open and
non-judgmental setting.

FUNDAMENTAL INTERPERSONAL RELATIONS ORIENTATION-

BEHAVIOR ( FIRO- B)

The FIRO-B® (Fundamental Interpersonal Relations Orientation-Behavior™) instrument helps individuals

understand their behavior and the behavior of others. With the insights of an individual’s interpersonal needs it
can help improve workplace interactions.
The FIRO-B assessment is used in a wide variety of applications including:
• Leadership development
• Team building
• Individual interpersonal effectiveness
• Retention
The FIRO-B instrument measures behaviors driven by interpersonal needs in three areas—Inclusion, Control,
and Affection. The FIRO-B instrument measures the extent to which each of these interpersonal needs is
expressed or wanted (Schnell & Hammer, 1993). Expressed needs refer to behaviors individuals demonstrate
toward others, whereas wanted needs refer to behaviors individuals prefer to have exhibited toward them by
others.

MODULE 5 ORGANISATIONAL ASPECTS

CREATING AND SUSTAINING ORGANISATIONAL CULTURE

An organization’s culture is shaped as the organization faces external and internal challenges and
learns how to deal with them. When the organization’s way of doing business provides a successful
adaptation to environmental challenges and ensures success, those values are retained. These values
and ways of doing business are taught to new members as the way to do business.
A company’s culture, particularly during its early years, is inevitably tied to the personality,
background, and values of its founder or founders, as well as their vision for the future of the
organization. When entrepreneurs establish their own businesses, the way they want to do business
determines the organization’s rules, the structure set up in the company, and the people they hire to
work with them.
As a company matures, its cultural values are refined and strengthened. The early values of a
company’s culture exert influence over its future values. It is possible to think of organizational
culture as an organism that protects itself from external forces. Organizational culture determines
what types of people are hired by an organization and what types of people are left out. Moreover,
once new employees are hired, the company assimilates new employees and teaches them the way
things are done in the organization. We call these processes attraction-selection-
attrition and onboarding processes. We will also examine the role of leaders and reward systems in
shaping and maintaining an organization’s culture.

CHANGE MANAGEMENT

Change management is a systematic approach to dealing with the transition or transformation of an

organization's goals, processes or technologies. The purpose of change management is to implement strategies
for effecting change, controlling change and helping people to adapt to change. To be effective, the change
management strategy must take into consideration how an adjustment or replacement will impact processes,
systems and employees within the organization. There must be a process for planning and testing
change, communicating change, scheduling and implementing change, documenting change and evaluating its
effects. Documentation is a critical component of change management -- not only to maintain an audit trail
should a rollback become necessary, but also to ensure compliance with internal and external controls,
including regulatory compliance.

WORK STRESS

Work-related stress is a growing problem around the world that affects not only the health and well-being of
employees, but also the productivity of organisations. Work-related stress arises where work demands of
various types and combinations exceed the person’s capacity and capability to cope.

All the following issues have been identified as potential stressors at workplaces. A risk management approach
will identify which ones exist in your own workplace and what causes them. They include:

• Organisation culture
• Bad management practices
• Job content and demands
• Physical work environment
• Relationships at work
• Change management
• Lack of support
• Role conflict
• Trauma.

Causes of work-related stress

Some of the factors that commonly cause work-related stress include:

• Long hours
• Heavy workload
• Changes within the organisation
• 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.
CONFLICT

Organizational conflict is an internal misunderstanding or disagreement that can occur between colleagues or
leaders. These kinds of disagreements can lead to a lack of cohesion and collaboration in the workplace. When
employees are at odds with one another, it can make it challenging to get everyone aligned with the company's
goals. Causes of organizational conflicts are :

• Lack of communication
• Different personality types
• Unclear responsibilities
• Unfair distribution of resources

EMOTIONAL INTELLIGENCE

Emotional intelligence (otherwise known as emotional quotient or EQ) is the ability to understand, use, and
manage your own emotions in positive ways to relieve stress, communicate effectively, empathize with others,
overcome challenges and defuse conflict. Emotional intelligence helps you build stronger relationships, succeed
at school and work, and achieve your career and personal goals. It can also help you to connect with your
feelings, turn intention into action, and make informed decisions about what matters most to you.

Emotional intelligence is commonly defined by four attributes:

1. Self-management – You're able to control impulsive feelings and behaviors, manage your emotions
in healthy ways, take initiative, follow through on commitments, and adapt to changing
circumstances.
2. Self-awareness – You recognize your own emotions and how they affect your thoughts and behavior.
You know your strengths and weaknesses, and have self-confidence.
3. Social awareness – You have empathy. You can understand the emotions, needs, and concerns of
other people, pick up on emotional cues, feel comfortable socially, and recognize the power dynamics
in a group or organization.
4. Relationship management – You know how to develop and maintain good relationships,
communicate clearly, inspire and influence others, work well in a team, and manage conflict.

ORGANISATIONAL CLIMATE

Organizational climate refers to an employee’s long-lasting perception of the working environment and culture

of the business they work for. You can think of climate as similar to personality: every person has a unique

personality, and every organization has a unique climate. This is reflected as a set of characteristics and features

perceived by employees. These influence employees’ behavior at work across various dimensions such as
relationships, autonomy, and organizational structure. Businesses can use organizational climate to gauge how

employees feel about their policies, practices, and culture and ensure these align with their overall vision, long-

term goals, and strategy. This is key to creating a workplace environment that your employees love and thrive

in. The happier they are, the more productive they will be, and the stronger their results.

Different dimensions comprise organizational climate.

• Structural dimensions – Referring to organizational structure

• Interactive dimensions – How members of an organization interact with each other

• Perceptual dimensions – How individuals perceive the climate within an organization