Handout Ft106c - Organization Behaviour - All Units

GRADUATE SCHOOL OF BUSINESS
MBA – I sem
HANDOUT FT106C- Organization Behavior
Unit I
Introduction
Organizational Behavior (OB) can be defined as the understanding, prediction and
management of human behavior both individually or in a group that occur within an
organization.
Internal and external perspectives are the two theories of how organizational behavior
can be viewed from an organization’s point of view. In this tutorial, we will be
learning in detail about both the theories.
Importance of OB
While working in an organization, it is very important to understand others behavior
as well as make others understand ours. In order to maintain a healthy working
environment, we need to adapt to the environment and understand the goals we need
to achieve. This can be done easily if we understand the importance of OB.
Following points bring out the importance of OB −
 It helps in explaining the interpersonal relationships employees share with each
other as well as with their higher and lower subordinates.
 The prediction of individual behavior can be explained.
 It balances the cordial relationship in an enterprise by maintaining effective
communication.
 It assists in marketing.
 It helps managers to encourage their sub-ordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behavior & their application to achieve
organizational goals.
Compiled by Prof. ( Dr.) Shikha Agrawal
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 It helps in making the organization more effective.
Thus studying organizational behavior helps in recognizing the patterns of human
behavior and in turn throw light on how these patterns profoundly influence the
performance of an organization.
There are three major factors that affect OB. The working environment being the base
for all three factors, they are also known as the determinants of OB. The three
determinants are −
 People
 Structure
 Technology
People
An organization consists of people with different traits, personality, skills, qualities,

interests, background, beliefs, values and intelligence. In order to maintain a healthy
environment, all the employees should be treated equally and be judged according to
their work and other aspects that affects the firm.
Example − A company offers campus placement to trainees from different states like

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Orissa, Haryana, Arunachal Pradesh and many more. However, during and after
training, all trainees are examined only on the basis of their performance in the tasks
assigned.
Organizational Structure
Structure is the layout design of an organization. It is the construction and
arrangement of relationships, strategies according to the organizational goal.
Example − Organizational structure defines the relation of a manager with employees
and co-workers.
Technology
Technology can be defined as the implementation of scientific knowledge for practical
usage. It also provides the resources required by the people that affect their work and
task performance in the right direction.
Example − Introduction of SAP, big data and other software in the market determines
individual and organizational performance.
Environment
All companies function within a given internal and external environment. Internal
environment can be defined as the conditions, factors, and elements within an
enterprise that influences the activities, choices made by the firm, and especially the
behavior of the employees. While external environment can be defined as outside
factors that affect the company's ability to operate. Some of them can be manipulated
by the company’s marketing, while others require the company to make adjustments.
Some examples of internal environment include employee morale, culture changes,
financial changes or issues, and some examples of external environment include
political factors, changes to the economy and the company itself
The concept of OB is based on two key elements namely −

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 Nature of people
 Nature of the organization
Nature of People
In simple words, nature of people is the basic qualities of a person, or the character
that personifies an individual they can be similar or unique. Talking at the
organizational level, some major factors affecting the nature of people have been
highlighted. They are −
 Individual Difference − It is the managerial approach towards each employee
individually, that is one-on-one approach and not the statistical approach, that
is, avoidance of single rule. Example− Manager should not be biased towards
any particular employee rather should treat them equally and try not to judge
anyone on any other factor apart from their work.
 Perception − It is a unique ability to observe, listen and conclude something. It
is believing in our senses. In short, the way we interpret things and have our
point of view is our perception. Example − Aman thinks late night parties spoil
youth while Anamika thinks late night parties are a way of making new friends.
Here we see both Aman and Anamika have different perception about the same
thing.
 A whole person − As we all know that a person’s skill or brain cannot be
employed we have to employee a whole person. Skill comes from background
and knowledge. Our personal life cannot be totally separated from our work
life, just like emotional conditions are not separable from physical conditions.
So, people function is the functioning of a total human being not a specific
feature of human being.
 Motivated behavior − It is the behavior implanted or caused by some
motivation from some person, group or even a situation. In an organization, we
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can see two different types of motivated employees −
o Positive motivation − Encouraging others to change their behavior or
say complete a task by luring them with promotions or any other profits.
Example − “If you complete this, you will gain this.”
o Negative motivation − Forcing or warning others to change their
behavior else there can be serious consequences. Example − “If you don’t
complete this, you will be deprived from the office.”
 Value of person − Employees want to be valued and appreciated for their skills
and abilities followed by opportunities which help them develop themselves.
Nature of Organization
Nature of organization states the motive of the firm. It is the opportunities it provides
in the global market. It also defines the employees’ standard; in short, it defines the
character of the company by acting as a mirror reflection of the company. We can
understand the nature of any firm with its social system, the mutual interest it shares
and the work ethics.
Let us take a quick look at all these factors −
 Social system − Every organization socializes with other firms, their customers,
or simply the outer world, and all of its employees - their own social roles and
status. Their behavior is mainly influenced by their group as well as individual
drives. Social system are of two types namely −
o Formal − Groups formed by people working together in a firm or people
that belong to the same club is considered as formal social
system. Example − A success party after getting a project.
o Informal − A group of friends, people socializing with others freely,
enjoying, partying or chilling. Example − Birthday party.
 Mutual interest − Every organization needs people and people need
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organizations to survive and prosper. Basically it’s a mutual understanding
between the organization and the employees that helps both reach their
respective objectives. Example − We deposit our money in the bank, in return
the bank gives us loan, interest, etc.
 Ethics − They are the moral principles of an individual, group, and
organization. In order to attract and keep valuable employees, ethical treatment
is necessary and some moral standards need to be set. In fact, companies are
now establishing code of ethics training reward for notable ethical behavior.
In a very broad sense, the scope of OB is the extent to which it can govern or
influence the operations of an organization. The scope of OB integrates 3 concepts
respectively −
Individual Behavior
It is the study of individual’s personality, learning, attitudes, motivation, and job
satisfaction. In this study, we interact with others in order to study about them and
make our perception about them.
Example − The personal interview round is conducted to interact with candidates
to check their skills, apart from those mentioned in the resume.
Inter-individual Behavior
It is the study conducted through communication between the employees among
themselves as well as their subordinates, understanding people’s leadership
qualities, group dynamics, group conflicts, power and politics.
Example − A meeting to decide list of new board members.

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Group Behavior
Group behavior studies the formation of organization, structure of organization and
effectiveness of organization. The group efforts made towards the achievement of
organization’s goal is group behavior. In short, it is the way how a group behaves.
Example − Strike, rally etc
Organizational behavior reflects the behavior of the people and management all
together, it is considered as field study not just a discipline. A discipline is an
accepted science that is based upon theoretical foundation, whereas OB is an inter-
disciplinary approach where knowledge from different disciplines like psychology,
sociology, anthropology, etc. are included. It is used to solve organizational
problems, especially those related to human beings.
There are four different types of models in OB. We will throw some light on each
of these four models.
Autocratic Model
The root level of this model is power with a managerial orientation of authority.
The employees in this model are oriented towards obedience and discipline. They
are dependent on their boss. The employee requirement that is met is subsistence.
The performance result is less.
The major drawbacks of this model are people are easily frustrated, insecurity,
dependency on the superiors, minimum performance because of minimum wage.
Custodial Model
The root level of this model is economic resources with a managerial
orientation of money. The employees in this model are oriented towards security
and benefits provided to them. They are dependent on the organization. The
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employee requirement that is met is security.
This model is adapted by firms having high resources as the name suggest. It is
dependent on economic resources. This approach directs to depend on firm rather
than on manager or boss. They give passive cooperation as they are satisfied but
not strongly encouraged.
Supportive Model
The root level of this model is leadership with a managerial orientation of support.
The employees in this model are oriented towards their job performance and
participation. The employee requirement that is met is status and recognition. The
performance result is awakened drives.
This model is dependent on leadership strive. It gives a climate to help employees
grow and accomplish the job in the interest of the organization. Management job is
to assist the employee’s job performance. Employees feel a sense of participation.
Collegial Model
The root level of this model is partnership with a managerial orientation of
teamwork. The employees in this model are oriented towards responsible behavior
and self-discipline. The employee requirement that is met is self-actualization. The
performance result is moderate zeal.
This is an extension of supportive model. The team work approach is adapted for
this model. Self-discipline is maintained. Workers feel an obligation to uphold
quality standard for the better image of the company. A sense of “accept” and
“respect” is seen.

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Learning
Learning can be defined as the permanent change in behavior due to direct and
indirect experience. It means change in behavior, attitude due to education and
training, practice and experience. It is completed by acquisition of knowledge and
skills, which are relatively permanent.
Nature of Learning
Nature of learning means the characteristic features of learning. Learning involves
change; it may or may not guarantee improvement. It should be permanent in nature,
that is learning is for lifelong.
The change in behavior is the result of experience, practice and training. Learning is
reflected through behavior.

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Factors Affecting Learning

Learning is based upon some key factors that decide what changes will be caused by
this experience. The key elements or the major factors that affect learning are
motivation, practice, environment, and mental group.
Coming back to these factors let us have a look on these factors −
 Motivation − The encouragement, the support one gets to complete a task, to
achieve a goal is known as motivation. It is a very important aspect of learning
as it acts gives us a positive energy to complete a task. Example − The coach
motivated the players to win the match.
 Practice − We all know that ”Practice makes us perfect”. In order to be a
perfectionist or at least complete the task, it is very important to practice what
we have learnt. Example − We can be a programmer only when we execute the
codes we have written.
 Environment − We learn from our surroundings, we learn from the people
around us. They are of two types of environment – internal and
external. Example − A child when at home learns from the family which is an
internal environment, but when sent to school it is an external environment.
 Mental group − It describes our thinking by the group of people we chose to
hang out with. In simple words, we make a group of those people with whom
we connect. It can be for a social cause where people with the same mentality
work in the same direction. Example − A group of readers, travelers, etc.
These are the main factors that influence what a person learns, these are the root level
for our behavior and everything we do is connected to what we learn.

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How Learning Occurs?
Learning can be understood clearly with the help of some theories that will explain
our behavior. Some of the remarkable theories are −
 Classical Conditioning Theory
 Operant Conditioning Theory
 Social Learning Theory
 Cognitive Learning Theory
Classical Conditioning Theory

The classical conditioning occurs when a conditioned stimulus is coupled with an
unconditioned stimulus. Usually, the conditioned stimulus (CS) is an impartial
stimulus like the sound of a tuning fork, the unconditioned stimulus (US) is
biologically effective like the taste of food and the unconditioned response (UR) to the
unconditioned stimulus is an unlearned reflex response like salivation or sweating.
After this coupling process is repeated (for example, some learning may already occur
after a single coupling), an individual shows a conditioned response (CR) to the
conditioned stimulus, when the conditioned stimulus is presented alone. The
conditioned response is mostly similar to the unconditioned response, but unlike the
unconditioned response, it must be acquired through experience and is nearly
impermanent.

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Operant Conditioning Theory

Operant conditioning theory is also known as instrumental conditioning. This theory
is a learning process in which behavior is sensitive to, or controlled by its outcomes.
Let’s take an example of a child. A child may learn to open a box to get the candy
inside, or learn to avoid touching a hot stove. In comparison, the classical
conditioning develops a relationship between a stimulus and a behavior. The example
can be further elaborated as the child may learn to salivate at the sight of candy, or to
tremble at the sight of an angry parent.
In the 20th century, the study of animal learning was commanded by the analysis of
these two sorts of learning, and they are still at the core of behavior analysis.

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Social Learning Theory

The key assumptions of social learning theory are as follows −
 Learning is not exactly behavioral, instead it is a cognitive process that takes
place in a social context.
 Learning can occur by observing a behavior and by observing the outcomes of
the behavior (known as vicarious reinforcement).
 Learning includes observation, extraction of information from those
observations, and making decisions regarding the performance of the behavior
(known as observational learning or modeling). Thus, learning can occur
beyond an observable change in behavior.
 Reinforcement plays an important role in learning but is not completely
responsible for learning.
 The learner is not a passive receiver of information. Understanding,
environment, and behavior all mutually influence each other.

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Cognitive Learning Theory

Cognition defines a person’s ideas, thoughts, knowledge, interpretation, understanding
about himself and environment.
This theory considers learning as the outcome of deliberate thinking on a problem or
situation based upon known facts and responding in an objective and more oriented
manner. It perceives that a person learns the meaning of various objects and events
and also learns the response depending upon the meaning assigned to the stimuli.
This theory debates that the learner forms a cognitive structure in memory which
stores organized information about the various events that occurs.
Learning & Organizational Behavior
An individual’s behavior in an organization is directly or indirectly affected by
learning.
Example − Employee skill, manager’s attitude are all learned.
Behavior can be improved by following the listed tips −
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 Reducing absenteeism by rewarding employees for their fair attendance.
 Improving employee discipline by dealing with employee’s undesirable
behavior, drinking at workplace, stealing, coming late, etc. by taking
appropriate actions like oral reprimands, written warnings and suspension.
 Developing training programs more often so as to grab the trainees’ attention,
provide required motivational properties etc.
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
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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 −

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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.

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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.

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Perception
Perception is an intellectual process of transforming sensory stimuli to meaningful
information. It is the process of interpreting something that we see or hear in our mind
and use it later to judge and give a verdict on a situation, person, group etc.
It can be divided into six types −
 Of sound − The ability to receive sound by identifying vibrations.
 Of speech − The competence of interpreting and understanding the sounds of
language heard.
 Touch − Identifying objects through patterns of its surface by touching it.
 Taste − The ability to receive flavor of substances by tasting it through sensory
organs known as taste buds.
 Other senses − They approve perception through body, like balance,
acceleration, pain, time, sensation felt in throat and lungs etc.
 Of the social world − It permits people to understand other individuals and
groups of their social world. Example − Priya goes to a restaurant and likes
their customer service, so she will perceive that it is a good place to hang out
and will recommend it to her friends, who may or may not like it. Priya’s
perception about the restaurant is good.

Perceptual Process
Perceptual process are the different stages of perception we go through. The different
stages are −
 Receiving
 Selecting
 Organizing
 Interpreting
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Receiving
Receiving is the first and most important stage in the process of perception. It is the
initial stage in which a person collects all information and receives the information
through the sense organs.
Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data
randomly but selectively. A person selects some information out of all in accordance
with his interest or needs. The selection of data is dominated by various external and
internal factors.
 External factors − The factors that influence the perception of an individual
externally are intensity, size, contrast, movement, repetition, familiarity, and
novelty.
 Internal factors − The factors that influence the perception of an individual
internally are psychological requirements, learning, background, experience,
self-acceptance, and interest.
Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make
sense of the data received, it is important to organize them.
We can organize the data by −
 Grouping them on the basis of their similarity, proximity, closure, continuity.
 Establishing a figure ground is the basic process in perception. Here by figure
we mean what is kept as main focus and by ground we mean background
stimuli, which are not given attention.
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 Perceptual constancy that is the tendency to stabilize perception so that
contextual changes don’t affect them.
Interpreting
Finally, we have the process of interpreting which means forming an idea about a
particular object depending upon the need or interest. Interpretation means that the
information we have sensed and organized, is finally given a meaning by turning it
into something that can be categorized. It includes stereotyping, halo effect etc.
Importance of Perception in OB
We need to understand what the role of perception in an organization is. It is very
important in establishing different role of perceptions like −
 Understanding the tasks to be performed.
 Understanding associated importance of tasks allotted.
 Understanding preferred behavior to complete respective tasks.
 Clarifying role perceptions.
For example, every member in a group has to be clear regarding the role allotted to
them. Programmer writes the code, tester checks it, etc.
Our management style is firmly influenced by our beliefs and assumptions about what
encourages members of our team like: If we believe that our team members dislike
work, then we tend towards an authoritarian style of management. However, if we
assume that employees take pride in doing a good job, we tend to adopt a more
participative style.
Douglas McGregor, the eminent social psychologist, divides management style into
two contrasting theories −
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 Theory X
 Theory Y
Theory X
This theory believes that employees are naturally unmotivated and dislike working,
and this encourages an authoritarian style of management. According to this theory,
management must firmly intervene to get things done. This style of management
concludes that workers −
 Disfavor working.
 Abstain responsibility and the need to be directed.
 Need to be controlled, forced, and warned to deliver what's needed.
 Demand to be supervised at each and every step, with controls put in place.
 Require to be attracted to produce results, else they have no ambition or
incentive to work.
McGregor observed that X-type workers are in fact mostly in minority, and yet in
mass organizations, such as large scale production environment, X Theory
management may be needed and can be unavoidable.
Theory Y
This theory explains a participative style of management, that is, distributive in nature.
It concludes that employees are happy to work, are self-motivated and creative, and
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enjoy working with greater responsibility. It estimates that workers −
 Take responsibility willingly and are encouraged to fulfill the goals they are
given.
 Explore and accept responsibility and do not need much guidance.
 Assume work as a natural part of life and solve work issues imaginatively.
In Y-type organizations, people at lower levels are engaged in decision making and
have more responsibility.
Comparing Theory X & Theory Y

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Unit II Motivation
Motivation can be described as the internal force that impacts the direction, intensity,
and endurance of a person’s voluntary choice of behavior. It consists of −
 Direction − focused by goals.
 Intensity − bulk of effort allocated.
 Persistence − amount of time taken for the effort to be exerted.
Example − A team leader encourages team members to work efficiently.
Features of Motivation
Motivation is an internal feeling, that is, it defines the psychological state of a person.
It is a continuous process and we should make sure that it is not disturbed. A person
should be encouraged completely.
Motivation consists of three interacting and dependent elements −
 Needs − The requirements or deficiency which is created whenever there is
physiological imbalance.
 Drives − The various camps or events organized to motivate the employees and
give them new opportunities.
 Incentives − Employees need to be rewarded for their nice work in order to
keep them encouraged.
Importance of Motivation
We need to motivate employees because of the following reasons −
 Motivated employee are more quality oriented.
 Highly motivated employees are more productive as compared to other
employees.

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 It helps in achieving three behavior dimension of human resource namely
o Candidates must be attracted not only to join but also remain in the firm.
o Employees must perform task in a dependable manner.
o Employees should be creative, spontaneous and innovative at work.
Maslow’s Hierarchy of Needs Theory
This theory was produced in order to answer the question “What motivates an
individual”. Every second need comes to force when the first need is satisfied
completely. Maslow explained the hierarchy of needs by grouping them into two:
deficiency needs and growth needs.
Physiological Needs
Every individual needs to take care of the basic requirements required to sustain.
These requirements include food to eat, clothing to wear and shelter to live in. These
necessities are relatively independent of each other but are finite.
Safety Needs
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Everybody wants to stay in a protected environment with minimal danger so that they
can have a peaceful life. Safety needs basically includes protection from physiological
danger like accident and having economic security like bank accounts, health
insurance
In an enterprise, it includes job security, salary increment, etc. The managerial
practice to satisfy this involves offering pension scheme, provident fund, gratuity etc.
Social Needs
We have all heard that man is a social animal, we want to be there with those people
where we are loved and we are accepted as we are; nobody wants to be judged. This is
a common requirement every human desires.
This theory helps managers to think about encouraging their employees by identifying
employee needs. In short, it presents motivation as constantly changing force,
expressing itself to the constant need for fulfilment of new and higher levels of needs.
Esteem
Esteem means the typical human desire to be accepted and valued by others. People
often involve in a profession or hobby to gain recognition, earn fame and respect.
According to Maslow, the needs of humans have strict guidelines - the hierarchies
rather than being sharply separated, are interrelated. This means that esteem and the
consequent levels are not strictly separated but are closely related.

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Self-Actualization
Self-actualization means realizing one’s full potential. Maslow describes this as a
desire to complete everything that one can, to become the most that one can be.
Alderfer's ERG theory

Alderfer classifies needs into three categories, also ordered hierarchically:
 growth needs (development of competence and realization of potential)
 relatedness needs (satisfactory relations with others)
 existence needs (physical well-being)
This is very similar to Maslow -- can be seen as just collapsing into three tiers. But
maybe a bit more rational. For example, in Alderfer's model, sex does not need to be
in the bottom category as it is in Maslow's model, since it is not crucial to (the
individual's) existence. (Remember, this about individual motivation, not species'
survival.) So by moving sex, this theory does not predict that people have to have sex
before they can think about going to school, like Maslow's theory does.
Alderfer believed that as you start satisfying higher needs, they become more intense
(e.g., the power you get the more you want power), like an addiction.
Do any of these theories have anything useful to say for managing businesses? Well,
if true, they suggest that
 Not everyone is motivated by the same things. It depends where you are in the
hierarchy (think of it as a kind of personal development scale)
 The needs hierarchy probably mirrors the organizational hierarchy to a certain
extent: top managers are more likely to motivated by self-actualization/growth
needs than existence needs. (but try telling Bill Clinton that top executives are
not motivated by sex and cheeseburgers...)
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Acquired Needs Theory (mcclellan)

Some needs are acquired as a result of life experiences
 need for achievement, accomplish something difficult. as kids encouraged to do
things for themselves.
 need for affiliation, form close personal relationships. as kids rewarded for
making friends.
 need for power, control others. as kids, able to get what they want through
controlling others.
Again similar to maslow and alderfer.
These needs can be measured using the TAT (thematic apperception test), which is a
projection-style test based on interpreting stories that people tell about a set of
pictures.
Cognitive Evaluation Theory
This theory suggests that there are actually two motivation systems: intrinsic and
extrinsic that correspond to two kinds of motivators:
 intrinsic motivators: Achievement, responsibility and competence. motivators
that come from the actual performance of the task or job -- the intrinsic interest
of the work.
 extrinsic: pay, promotion, feedback, working conditions -- things that come
from a person's environment, controlled by others.
One or the other of these may be a more powerful motivator for a given individual.
Intrinsically motivated individuals perform for their own achievement and
satisfaction. If they come to believe that they are doing some job because of the pay or
the working conditions or some other extrinsic reason, they begin to lose motivation.
The belief is that the presence of powerful extrinsic motivators can actually reduce a
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person's intrinsic motivation, particularly if the extrinsic motivators are perceived by
the person to be controlled by people. In other words, a boss who is always dangling
this reward or that stick will turn off the intrinsically motivated people.
Note that the intrinsic motivators tend to be higher on the Maslow hierarchy.
Two Factor theory (Herzberg)

According to Herzberg, two kinds of factors affect motivation, and they do it in
different ways:
 hygiene factors. These are factors whose absence motivates, but whose
presence has no perceived effect. They are things that when you take them
away, people become dissatisfied and act to get them back. A very good
example is heroin to a heroin addict. Long term addicts do not shoot up to get
high; they shoot up to stop being sick -- to get normal. Other examples include
decent working conditions, security, pay, benefits (like health insurance),
company policies, interpersonal relationships. In general, these are extrinsic
items low in the Maslow/Alderfer hierarchy.
 motivators. These are factors whose presence motivates. Their absence does
not cause any particular dissatisfaction, it just fails to motivate. Examples are
all the things at the top of the Maslow hierarchy, and the intrinsic motivators.
So hygiene factors determine dissatisfaction, and motivators determine satisfaction.
The two scales are independent, and you can be high on both.
If you think back to the class discussion on power, we talked about a baseline point on
the well-being scale. Power involved a threat to reduce your well-being, causing
dissatisfaction. Hence, power basically works by threatening to withhold hygiene
factors. Influence was said to fundamentally be about promising improvements in
well-being -- when you are influenced to do something, it is because you want to, not
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because you were threatened. Influence basically works by offering to provide
motivators (in Herzberg's terms).
Equity Theory
Suppose employee A gets a 20% raise and employee B gets a 10% raise. Will both be
motivated as a result? Will A be twice as motivated? Will be B be negatively
motivated?
Equity theory says that it is not the actual reward that motivates, but the perception,
and the perception is based not on the reward in isolation, but in comparison with the
efforts that went into getting it, and the rewards and efforts of others. If everyone got a
5% raise, B is likely to feel quite pleased with her raise, even if she worked harder
than everyone else. But if A got an even higher raise, B perceives that she worked just
as hard as A, she will be unhappy.
In other words, people's motivation results from a ratio of ratios: a person compares
the ratio of reward to effort with the comparable ratio of reward to effort that they
think others are getting.
Of course, in terms of actually predicting how a person will react to a given motivator,
this will get pretty complicated:
1. People do not have complete information about how others are rewarded. So
they are going on perceptions, rumors, inferences.
2. Some people are more sensitive to equity issues than others
3. Some people are willing to ignore short-term inequities as long as they expect
things to work out in the long-term.
Expectancy Theory (Vroom)

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This theory is meant to bring together many of the elements of previous theories. It
combines the perceptual aspects of equity theory with the behavioral aspects of the
other theories. Basically, it comes down to this "equation":
M = E*I*V
or
motivation = expectancy * instrumentality * valence
M (motivation) is the amount a person will be motivated by the situation they find
themselves in. It is a function of the following.
E (expectancy) = The person's perception that effort will result in performance. In

other words, the person's assessment of the degree to which effort actually correlates
with performance.
I (instrumentality) = The person's perception that performance will be

rewarded/punished. I.e., the person's assessment of how well the amount of reward
correlates with the quality of performance. (Note here that the model is phrased in
terms of extrinsic motivation, in that it asks 'what are the chances I'm going to get
rewarded if I do good job?'. But for intrinsic situations, we can think of this as asking
'how good will I feel if I can pull this off?').
V(valence) = The perceived strength of the reward or punishment that will result from
the performance. If the reward is small, the motivation will be small, even if
expectancy and instrumentality are both perfect (high).

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UNIT III
Foundations of Group Behavior
A group consists of a number of individuals working together for a common
objective. Groups have significant influence on an organization and are inseparable
from an organization. They are useful for the organization as they form foundation of
human resources.
Groups or work teams are the primary tools used by managers. Managers need groups
to co-ordinate individual behavior in order to reach the organizational goals. Groups
can make a manager's job easier because by forming a group, he need not explain the
task to each and every individual. A manager can easily coordinate with the work of
an individual by giving the group a task and allow them to co-ordinate with each
other. But for a group to work effectively, the interactions between its members
should be productive. Therefore, managers must pay attention to the needs of
individuals.
Need and importance for a Group

The reasons for the need, of groups are as follows:
 Management of modern organizations makes mutual efforts to introduce
industrial democracy at workplace. They use project teams and work
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committees where workers get due recognition. They willingly participate in
decision-making.
 The tasks in modern industries are becoming more complex, tedious arid of
repetitive nature. Work committees, work groups and teams are formed to
monitor the work. They also make the environment at workplace livelier.
 Groups help in making participative management more effective.
 Groups of all kinds and types help by cooperating in all the matters related to
production and human relations to work effectively in the organization.
 An individual cannot perform each and every task. Group efforts are required
for its completion. For example, building a ship, making of a movie,
construction of a fly-over, etc. All these require coordinated and unified efforts
of many individuals, working in a group.
 A group can judge in a better way as compared to an individual.
Types of Groups
In an organization, there are three types of groups, which are as follows:
Functional or formal groups
Functional groups are the groups formed by the organization to accomplish different
organizational purposes. According to A L Stencombe, "a formal group is said to be
any social arrangement in which the activities of some persons are planned by others
to achieve a common purpose". These groups are permanent in nature. They have to
follow rules, regulations and policy of the organization. A formal organizational group
includes departments such as the personnel department, the advertising department,
the quality control department and the public relations department.
Task group

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Tasks groups are the groups formed by an organization to accomplish a narrow range
of purposes within a specified time. These groups are temporary in nature. They also
develop a solution to a problem or complete its purpose. Informal committees, task
forces and work teams are included in task groups. The organization after specifying a
group membership, assigns a narrow set of purposes such as developing a new
product, evaluating a proposed grievance procedure, etc.
Informal group
Informal groups are the groups formed for the purposes other than the organizational
goals. Informal groups form when individuals are drawn together by friendship, by
mutual interests or both. These groups are spontaneous. According to Keith David,
"the network of persons and social relations which is not established or required forms
an informal organization". These are the groups formed by the employees themselves
at the workplace while working together. The organization does not take any active
interest in their formation.
Informal groups are very effective and powerful. These groups work as an informal
communication network forming a part of the grapevine to the organizations. They are
also like a powerful force, which an organization cannot avoid. Some managers
consider them to be harmful to the interest of an organization. They suspect their
integrity and consider as a virtual threat. Some managers do not consider them as
threat and seek the help of group members in getting the organizational task
accomplished. Informal groups are of following types:
Interest group: Interest groups are the groups formed to attain a common purpose.
Employees coming together for payment of bonus, increase in salary, medical benefit
and other facilities are the examples of interest groups.
Membership group: Membership groups are the groups of individuals' belonging to
the same profession and knowing each other. For example, teachers of the same
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faculty in a university.
Friendship group: Friendship groups are the groups of individuals belonging to same
age group, having similar views, tastes and opinions. These groups can also be formed
outside the plant or office and can be in the form of clubs and associations.
Reference group: Reference groups are the group where individuals shape their
ideas, beliefs, values etc. They want support from the group.
Stages of development of group

Members of new group are unfamiliar with one another's personalities and: hesitant in
their interactions. The new group must pass s of development, which are depicted in
the figure following:
• Mutual Acceptance
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The very first stage of a group development is called "Mutual Acceptance".
During this stage, the members of the group get familiar with one another and
check, which inter-personal behavior is acceptable and which is unacceptable by
the other members of the group. This helps all the members of a group to know
each other better and helps the group to move to the next stage easily.
• Communication and Decision-making
The second stage of group development is "Communication and Decision-
making''. During this stage, group members share their opinions and formulate
the group's goals. Through communication and decision-making, the structure
becomes clear and the group moves to the third stage.
• Motivation and Productivity
The third stage is "Motivation and Productivity", which is characterized by a
shared acceptance among members of what the group is trying to do. Each
person recognizes and accepts his role as well as to accept and to understand the
roles to others. Members also become more comfortable with each other and
develop a sense of group identity and unity.
• Control and Organization

The fourth stage is "Control and Organization", in which the members perform
the roles they have accepted and direct their group efforts toward goal
attainment. In reality, this developmental sequence varies from group to group,
depending on the time, personal characteristics of group members and
frequency of interaction.
Stages of Group Formation

Forming
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In this stage, most team members are positive and polite. Some are anxious, as they
haven't fully understood what work the team will do. Others are simply excited about
the task ahead.
As leader, you play a dominant role at this stage, because team members' roles and
responsibilities aren't clear.
This stage can last for some time, as people start to work together, and as they make
an effort to get to know their new colleagues.
Storming
Next, the team moves into the storming phase, where people start to push against the
boundaries established in the forming stage. This is the stage where many teams fail.
Storming often starts where there is a conflict between team members' natural
working styles. People may work in different ways for all sorts of reasons but, if
differing working styles cause unforeseen problems, they may become frustrated.
Storming can also happen in other situations. For example, team members may
challenge your authority, or jockey for position as their roles are clarified. Or, if you
haven't defined clearly how the team will work, people may feel overwhelmed by
their workload, or they could be uncomfortable with the approach you're using.
Some may question the worth of the team's goal, and they may resist taking on tasks.
Team members who stick with the task at hand may experience stress, particularly as
they don't have the support of established processes or strong relationships with their
colleagues.
Norming
Gradually, the team moves into the norming stage. This is when people start to resolve
their differences, appreciate colleagues' strengths, and respect your authority as a
leader.
Now that your team members know one another better, they may socialize together,
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and they are able to ask one another for help and provide constructive feedback.
People develop a stronger commitment to the team goal, and you start to see good
progress towards it.
There is often a prolonged overlap between storming and norming, because, as new
tasks come up, the team may lapse back into behavior from the storming stage.
Performing
The team reaches the performing stage, when hard work leads, without friction, to the
achievement of the team's goal. The structures and processes that you have set up
support this well.
As leader, you can delegate much of your work, and you can concentrate on
developing team members.
It feels easy to be part of the team at this stage, and people who join or leave won't
disrupt performance.
Adjourning
Many teams will reach this stage eventually. For example, project teams exist for only
a fixed period, and even permanent teams may be disbanded through organizational
restructuring.
Team members who like routine, or who have developed close working relationships
with colleagues, may find this stage difficult, particularly if their future now looks
uncertain.

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Differences between Work Groups and Teams

Work Group: A group interacts primarily to share information and to make decision to
help each group member perform within his or her area of responsibility.
Work Team: A group whose individual efforts result in perfor mance that is greater
than the sum of the individual inputs.
Characteristics of Effective Work Teams
1. Commitment and inspiring goals
2. Role Clarity
3. Self- disclosure (incl.confronta tion)
4. Openness to feedback
5. Competence
6. Creativity with constructive confrontation
7. Collaboration /Support/Trust
8. Congruence between individual and group goals
9. Supportive leadership
10. Management of power Team Functioning

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CONFLICT
Conflict can be defined as a mental struggle resulting from incompatible or opposing

needs, drives, wishes, and external or internal demands. Where there are people, there
is conflict.
They are usually taken in a negative association. However, this is inaccurate as
conflicts are necessary for healthy relationships. It all depends on the approach we use
to resolve the conflict.
Classification of Conflict
Conflict process in organization: Conflict is a vibrant process. In contemporary
organization some conflict can be helpful to enhance organizational effectiveness.
Tosi, Rizzo and Carroll (1986) described the stages involved in the conflict process,
from inception to end, as sequential in nature, namely:

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Nature and Sources of Conflicts

Conflict can arise from a variety of sources. They can be classified into two broad
categories: Structural factors, which stem from the nature of the organization and the
way in which work is organized and Personal factors, which arise from differences
among individuals. The causes/ sources of conflict can be summarized with two
categories.
1. Structural Factors
 Specialization: When jobs are highly specialized, employees become experts at
certain tasks. For example in case of a software company, while there is one
specialist for databases, another for statistical packages, and yet another for
expert systems. As the highly specialized people have little awareness of the
tasks that others perform, such a case leads to conflict among the specialists.
 Interdependence: Interdependence occurs when two or more groups depend on
each other to accomplish their tasks. Depending on other people to work done is
good when the process works smoothly. However, when problem arise, it
becomes easy to blame other party, and as such, conflict escalates. The potential
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of conflict increases as the degree of interdependence increases.
 Goal Differences: Sometimes different work groups having different goals
have incompatible goals. For example, in a cable television company, the sales
person's goal was to sell as many new installations as possible. This created
problem for the service department, because its goal was timely installations.
 Jurisdictional Ambiguities: It refers to the presence of unclear lines of
responsibility within an organization. Recall, we have contacted our own
college administration for some problem and we have been asked to go to
different people and departments? This happens because of the jurisdictional
ambiguities among the departments.
2. Personal Factors
 Skills and Abilities: Work force in an organization/ department is composed of
people with varying levels of skills and abilities. Such diversity in skills and
abilities leads to conflict, especially when jobs are interdependent. Workers
may find it difficult to work with a new boss, fresh from University knowing a
lot about managing people but unfamiliar with the technology they are
working.
 Personalities: Personality also causes individual differences. It is differences in
personality that neither the manager likes all of his co-managers and
subordinates nor all of them like the manager. This creates conflict among
them. Research studies report that usually an abrasive personality is rejected by
others. An abrasive person is one who ignores the interpersonal aspects of work
and feelings of colleagues.
 Perception: Like personality, differences in perceptions can also lead to
conflict. One are in which perceptions can, for example, differ may be the
perception of what motivates employees. Managers, for example, usually
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provide what they think employees want rather than what employees really
want.
 Values and Ethics: People also hold different beliefs and adhere to different
value system. Older workers, for example, value company loyalty and probably
would not take a sick day when they were not really sick/ ill. But, the younger
workers, valuing mobility, may be taken a sick day to get away from work.
 Emotion: The moods of the people can also be a source of conflict in the work
place. Problems of home often spill over into the work arena, and the related
moods can be hard for others to deal with.
 Communication barriers: Communication barriers such as physical separation
and language can create distortions in messages, and these, in turn, can lead to
conflict. Value judgment also sometimes serves as barrier.
Nature or Characteristics of Conflicts

Conflict is a disagreement among two or more individuals, groups, or organizations.
This disagreement may be relatively superficial or very strong. The nature or
characteristics of organizational conflict are as follows:
 Conflict arises out of two perceptions. If 'X' perceives his goals to be
incompatible with those of 'Y' and 'X' has no opportunity to frustrate the goal
attainment of 'Y', there is no conflict.
 Conflict can either exist at the latent or overt level, but generally speaking,
conflict is a term that is limited to overt acts.
 Conflict refers to deliberate behavior. 'X' deliberately tries to prevent 'Y' from
attaining his (X's) goals. If interference is accidental, there is no conflict.
 Conflict occurs when two or more parties pursue mutually exclusive goals,
values or events. It is based on the assumption that there are two or more parties
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whose interests or goals appear to be incompatible.
 Conflict is different from competition. In conflict, one side sees an opportunity
to interfere with the other's opportunity to acquire resource or perform
activities. In competition, both sides try to win, but neither side actively
interferes with the other.
When we think of the different types of conflict, we might instantly think of the ones
referred to in literature, especially in fiction. They can be applied to real life, of
course. However, in contemporary times, types of conflict which are easily
identifiable are classified into four different types −
 Intrapersonal
 Intragroup
 Interpersonal
 Intergroup

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Intrapersonal Conflict
Intrapersonal conflict takes place within an individual. The person experiences it in
his own mind. Thus, it is a type of conflict that is psychological involving the
individual’s thoughts, values, principles and emotions. Intrapersonal conflict may
come in different forms, from the simple mundane ones like deciding whether or not
to go vegan for lunch to ones that can affect major decisions such as choosing a career
path.
However, this type of conflict can be quite difficult to handle, if you find it hard to
decipher your inner struggles. It results in restlessness and uneasiness, or can even
cause depression. On such occasions, it is advised to seek a way to let go of the
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anxiety by communicating with other people. Eventually, when the person finds
himself/herself out of the situation, he/she can become more empowered as a person.
Thus, the experience invokes a positive change which helps in personal growth.
Intragroup Conflict
Intragroup conflict occurs among individuals within a team. The incompatibilities and
misunderstandings between team members leads to intragroup conflict. It starts from
interpersonal disagreements like team members have different personalities which
may lead to tension or differences in views and ideas. Say for example, during a
presentation, members of the team might find the notions presented by the one
presiding to be erroneous due to their differences in opinion.
Within a team, conflict can be helpful in coming up with decisions, which will
eventually allow them to achieve their objectives as a team. But, if the degree of
conflict disrupts harmony among the members, then some serious guidance from a
different party will be needed for it to be settled.
Interpersonal Conflict
Interpersonal conflict means a conflict between two individuals. Basically, this occurs
because of some differences in people. We have varied personalities which usually
lead to incompatible choices and opinions. So, it is a natural occurrence which can
eventually help in personal growth or developing our relationships with others.
In addition, adjustments are necessary for managing this type of conflict. However,
when interpersonal conflict becomes too destructive, calling in a mediator helps so as
to have the issue resolved.
Intergroup Conflict
Intergroup conflict occurs when a misunderstanding arises among different teams
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within an organization. For example, the marketing department of an organization can
come in conflict with the customer support department. This is because of the varied
sets of goals and interests of these different groups. In addition to this, competition
also contributes to intergroup conflict. There are other factors which increase this type
of conflict. Some of these factors may include a rivalry in resources or the boundaries
set by a group to others which forms their own identity as a team.
Conflict should not always be perceived as a problem rather at times it is a chance for
growth and can be an effective means of opening up among groups or individuals.
However, when conflict begins to suppress or disrupt productivity and gives way to
more conflicts, then conflict management is what is needed for problem resolution.
Transitions In Conflict Thought

It is entirely appropriate to say that there has been a conflict over the role of conflict
itself in groups and organizations. One school of thought argues that conflict must be
avoided—that it indicates a malfunctioning within the group .This is the traditional
view. Another school of thought, the human relations view, argues that conflict is a
natural and inevitable outcome in any group and that it is not necessarily evil, but
rather has the potential to be a positive force in determining group performance. The
third, and most recent perspective proposes that not only can conflict act as a positive
force in a group but that some conflict is absolutely necessary for a group to perform
effectively. We label this third school the interactionist approach. Let’s take a closer
look at each of these views.
THE TRADITIONAL VIEW

The earliest approach to conflict assumed that all conflict was bad. Conflict was
viewed negatively, and it was used synonymously with such terms as violence,
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destruction, and irrationality to reinforce its negative connotation. Conflict, by
definition, was harmful and was to be avoided. The American syndicate’s
management and the yacht’s team members essentially subscribed to this view of
conflict.
The traditional view was consistent with the attitudes that prevailed about group
behavior in the 1930s and 1940s.Conflict was seen as a dysfunctional outcome
resulting from poor communication, a lack of openness and trust between people, and
the failure of managers to be responsive to the needs and aspirations of their
employees.
The view that all conflict is bad certainly offers a simple approach to looking at the
behavior of people who create conflict .Since all conflict is to be avoided, we need
merely direct our attention to the causes of conflict and correct the malfunctionings in
order to improve group and organizational performance. Although research studies
now provide strong evidence to dispute that this approach to conflict reduction results
in high group performance ,many of us still evaluate conflict situations using this
outmoded standard. As well as many senior executives and board of directors.
THE HUMAN RELATIONS VIEW

The human relations position argued that conflict was a natural occurrence in all
groups and organizations. Since conflict was inevitable, the human relations school
advocated acceptance of conflict. Proponents rationalized its existence: It cannot be
eliminated, and there are even times when conflict may benefit a group’s performance.
The human relations view dominated conflict theory from the late 1940s through the
mid-1970s.
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THE INTERACTIONIST VIEW

While the human relations approach accepted conflict, the interactionist approach
encourages conflict on the grounds that a harmonious peaceful, tranquil, and
cooperative group is prone to becoming static, apathetic, and non responsive to
change and innovation .The major contribution of the interactionist approach,
therefore, is to encourage group leaders to maintain an on going minimum level of
conflict—enough to keep the group viable, self-critical and creative.
Functional and Dysfunctional Conflicts

Functional conflicts and dysfunctional conflicts are the two dimensions or the
outcomes of the conflicts. Functional conflict has positive effects on the conflicts
whereas dysfunctional conflict has negative effects. Both can be discussed with the
help of following points:

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1. Functional Conflict: Positive Effects

Functional conflict is also known as constructive conflict. Such conflict will have
positive effects on individuals, groups and organizations. Such conflict is useful in
order to solve problems related to individuals and groups. Functional conflict is
important for effective performance due to the following reasons:
It ventilates tension from the organization.
It increases individual's efforts at work.
It helps thinking analytically.
It provides foundation for organizational change and development.
It provides an individual a chance to think again, undertake self introspection and
have a second look at the existing things, like procedures, policies, equipment,
behaviors etc.
It leads to innovation and at times to new direction. It is, therefore, even necessary for
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the survival and growth organizations.
It helps to seek classification and generate search behavior.
When conflict is developed, attention is immediately drawn to the malfunctioning
parts of a system. It is an indication that the situation calls for improvement. Conflict
is, therefore, an essential portion of a cybernetic system.
At times, it is also used as a means to certain ends and to create confusion or set
subordinates against each other in order to maintain the interested parties own
position. It may not be a positive outcome in the strict sense of the term from the
organizational point of view, but it is certainly a management strategy toward of
problems temporarily. It may be viewed as an unavoidable cost of the pursuit of one's
aspirations.
Long standing problems, which continue to agitate people's mind in surface, they are
able to release their tensions and unburden themselves. They display creativity in
identifying solutions and dealing with problems.
It serves as a cementing force in a group and incredible unity is witnessed even in a
heterogeneous group at times of tension.
It energizes people, leads to mild stimulation and one is at one's best in times of crisis.
It helps them test their capacities.
2. Dysfunctional Conflict: Negative Effects

Dysfunctional conflict is also known as destructive conflict. Many times conflict may
be detrimental and disastrous. Such conflict has negative effect on individuals, groups
and the organizational levels. The effects might be diverting energies, hurting group
cohesion, promoting interpersonal hostilities and creating negative working
environment. Due to the dysfunctional conflict and its negative effects, employees
become dissatisfied with the working environment and as a result, absenteeism will
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increase and productivity will decline. A few dysfunctional effects of rising conflict
include:
Increasing conflict will result in delays in meeting schedules, decrease in the quality
of goods and services and finally will increase customer complaints.
It is undesirable if it creates a climate of distrust and suspicion among people, if some
people feel are defeated and demanded and it develops antagonism instead of spirit of
cooperation.
In the absence of smooth communication at the workplace, there will be problems in
coordinating activities.
With the increasing conflict in the organization, people start to divert themselves from
the real work schedule and keep less interest and show less energy, and this will
ultimately affect the achievement of organizational goals.
The increasing negative emotions at the workplace can be quite stressful.
When conflict does not lead to solution of a problem, it is unproductive and
investment of time and effort goes waste.
As a consequence of conflict, there may be intensification of internalization of sub-
unit goals which may result in the neglect of overall organizational goals.
It is seriously harmful if it distracts attention from basic organizational objectives and
makes people work for their defeat.
When management loses objectivity and treats disagreement as equivalent to
disloyalty and rebellion, an opportunity for creativity should be deemed to have been
lost. It may even pour oil over troubled waters, exploit differences to strengthen itself
and weakens others, and accept resolutions capable of different interpretation.
Conflict-Handling Styles
Individuals vary in the way that they handle conflicts. There are five common styles
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of handling conflicts. These styles can be mapped onto a grid that shows the varying
degree of cooperation and assertiveness each style entails. Let us look at each in turn.
Figure 10.6 Conflict-Handling Styles
Avoidance
The avoiding style is uncooperative and unassertive. People exhibiting this style seek
to avoid conflict altogether by denying that it is there. They are prone to postponing
any decisions in which a conflict may arise. People using this style may say things
such as, “I don’t really care if we work this out,” or “I don’t think there’s any
problem. I feel fine about how things are.” Conflict avoidance may be habitual to
some people because of personality traits such as the need for affiliation. While
conflict avoidance may not be a significant problem if the issue at hand is trivial, it
becomes a problem when individuals avoid confronting important issues because of a
dislike for conflict or a perceived inability to handle the other party’s reactions.
Accommodation
The accommodating style is cooperative and unassertive. In this style, the person
gives in to what the other side wants, even if it means giving up one’s personal goals.
People who use this style may fear speaking up for themselves or they may place a
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higher value on the relationship, believing that disagreeing with an idea might be
hurtful to the other person. They will say things such as, “Let’s do it your way” or “If
it’s important to you, I can go along with it.” Accommodation may be an effective
strategy if the issue at hand is more important to others compared to oneself.
However, if a person perpetually uses this style, that individual may start to see that
personal interests and well-being are neglected.
Compromise
The compromising style is a middle-ground style, in which individuals have some
desire to express their own concerns and get their way but still respect the other
person’s goals. The compromiser may say things such as, “Perhaps I ought to
reconsider my initial position” or “Maybe we can both agree to give in a little.” In a
compromise, each person sacrifices something valuable to them. For example, in 2005
the luxurious Lanesborough Hotel in London advertised incorrect nightly rates for
£35, as opposed to £350. When the hotel received a large number of online bookings
at this rate, the initial reaction was to insist that customers cancel their reservations
and book at the correct rate. The situation was about to lead to a public relations crisis.
As a result, they agreed to book the rooms at the advertised price for a maximum of
three nights, thereby limiting the damage to the hotel’s bottom line as well as its
reputation (Horowitz et al., 2006).
Competition
People exhibiting a competing style want to reach their goal or get their solution
adopted regardless of what others say or how they feel. They are more interested in
getting the outcome they want as opposed to keeping the other party happy, and they
push for the deal they are interested in making. Competition may lead to poor
relationships with others if one is always seeking to maximize their own outcomes at
the expense of others’ well-being. This approach may be effective if one has strong
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moral objections to the alternatives or if the alternatives one is opposing are unethical
or harmful.
Collaboration
The collaborating style is high on both assertiveness and cooperation. This is a
strategy to use for achieving the best outcome from conflict—both sides argue for
their position, supporting it with facts and rationale while listening attentively to the
other side. The objective is to find a win–win solution to the problem in which both
parties get what they want. They’ll challenge points but not each other. They’ll
emphasize problem solving and integration of each other’s goals. For example, an
employee who wants to complete an MBA program may have a conflict with
management when he wants to reduce his work hours. Instead of taking opposing
positions in which the employee defends his need to pursue his career goals while the
manager emphasizes the company’s need for the employee, both parties may review
alternatives to find an integrative solution. In the end, the employee may decide to
pursue the degree while taking online classes, and the company may realize that
paying for the employee’s tuition is a worthwhile investment. This may be a win–win
solution to the problem in which no one gives up what is personally important, and
every party gains something from the exchange.
What is negotiation?
Negotiation is a technique of discussing issues among one selves and reaching to a
conclusion benefiting all involved in the discussion. It is one of the most effective
ways to avoid conflicts and tensions. When individuals do not agree with each other,
they sit together, discuss issues on an open forum, negotiate with each other and come
to an alternative which satisfies all. In a layman’s language it is also termed as
bargaining.
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Negotiator
An individual representing an organization or a position who listens to all the parties
carefully and comes to a conclusion which is willingly acceptable to all is called the
negotiator.
Skills of a negotiator
A negotiator ideally should be impartial and neutral and should not favour any one.
He needs to understand the situation and the parties well and decide something which
will benefit all. It is not always that people will easily accept the negotiator’s decision;
they may counter it if they feel their personal interests are not satisfied. In such a
situation, where the negotiator is left with no choice, he must use his power to impose
his ideas on all, after all one can’t please everyone.
A negotiator has to be a little tactful and smart enough to handle all situations and
reach to a conclusion.
Preparation and Planning

In the preparation and planning stage, you (as a party in the negotiation) need to
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determine and clarify your own goals in the negotiation. This is a time when you take
a moment to define and truly understand the terms and conditions of the exchange and
the nature of the conflict.
This is a time to develop a strategy for the negotiation. We’ll talk more about
strategies in the next section.
Definition of Ground Rules
After the planning and strategy development stage is complete, it’s time to work with
the other party to define the ground rules and procedures for the negotiation. This is
the time when you and the other party will come to agreement on questions like
 Who will do the negotiating—will we do it personally or invite a third party?
 Where will the negotiation take place?
 Will there be time constraints placed on this negotiation process?
 Will there be any limits to the negotiation?
 If an agreement can’t be reached, will there be any specific process to handle
that?
Usually it’s during this phase that the parties exchange their initial positions.
Once initial positions have been exchanged, the clarification and justification stage
can begin. Both you and the other party will explain, clarify, bolster and justify your
original position or demands. For you, this is an opportunity to educate the other side
on your position, and gain further understanding about the other party and how they
feel about their side. You might each take the opportunity to explain how you arrived
at your current position, and include any supporting documentation. Each party might
take this opportunity to review the strategy they planned for the negotiation to
determine if it’s still an appropriate approach.
This doesn’t need to be—and should not be—confrontational, though in some
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negotiations that’s hard to avoid. But if tempers are high moving into this portion of
the negotiation process, then those emotions will start to come to a head here. It’s
important for you to manage those emotions so serious bargaining can begin.
Models of Negotiation
Negotiation is defined as a discussion among individuals to reach to a conclusion
acceptable to one and all. It is a process where people rather than fighting among
themselves sit together, evaluate the pros and cons and then come out with an
alternative which would be a win win situation for all.
Sam wanted to purchase a mobile handset, he tried his level best to buy it at the lowest
possible rate and the shopkeeper also ensured that he could earn his profits as well.
Thus the negotiation benefited Sam who didn’t have to shell out loads of money and
the shopkeeper was also satisfied because even he earned his profits.
Negotiation helps in reducing conflicts and disputes among each other. Negotiation is
essential in every walk of life for a peaceful and stress free living.
Let us go through various models of negotiation:
Win Win Model - In this model, each and every individual involved in negotiation
wins. No body is at loss in this model and every one is benefited out of the
negotiation. This is the most accepted model of negotiation.
Let us understand it with the help of an example:
Daniel wanted to buy a laptop but it was an expensive model. He went to the outlet
and negotiated with the shopkeeper to lower the price. Initially the shopkeeper was
reluctant but after several rounds of discussions and persuasion, he quoted a price best
suited to him as well as Daniel. Daniel was extremely satisfied as he could now
purchase the laptop without burning a hole in his pocket. The negotiation also
benefited the store owner as he could earn his profits and also gained a loyal customer
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who would come again in future.
Win Lose Model - In this model one party wins and the other party loses. In such a
model, after several rounds of discussions and negotiations, one party benefits while
the party remains dissatisfied.
Please refer to the above example once again where Daniel wanted to buy a laptop. In
this example, both Daniel and the store owner were benefited out of the deal. Let us
suppose Daniel could not even afford the price quoted by the storeowner and requests
him to further lower the price. If the store owner further lowers the price, he would not
be able to earn his profits but Daniel would be very happy. Thus after the negotiation,
Daniel would be satisfied but the shopkeeper wouldn’t. In a win lose model, both the
two parties are not satisfied, only one of the two walks away with the benefit.
Lose Lose Model - As the name suggests, in this model, the outcome of negotiation is
zero. No party is benefited out of this model.
Had Daniel not purchased the laptop after several rounds of negotiation, neither he nor
the store owner would have got anything out of the deal. Daniel would return empty
handed and the store owner would obviously not earn anything.
In this model, generally the two parties are not willing to accept each other’s views
and are reluctant to compromise. No discussions help.
Let us understand the above three models with an example from the corporate world.
Mike got selected with a multinational firm of repute. He was called to negotiate his
salary with Sara- the HR Head of the organization.
Case 1 - Sara quoted a salary to Mike, but Mike was not too pleased with the figure.
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He insisted Sara to raise his salary to the best extent possible. After discussions Sara
came out with a figure acceptable to Mike and she immediately released his offer
letter. Mike got his dream job and Sara could manage to offer Mike a salary well
within the company’s budgets - A Win win Situation (Both the parties gained)
Case 2 - Sara with her excellent negotiation skills managed to convince Mike at a little
lower salary than he quoted. Mike also wanted to grab the opportunity as it was his
dream job and he was eyeing it for quite some time now. He had to accept the offer at
a little lower salary than expected. Thus in this negotiation, Mike was not completely
satisfied but Sara was - A win lose negotiation
Case 3 - Mike declined the offer as the salary quoted by Sara did not meet his
expectations. Sara tried her level best to negotiate with Mike, but of no use.-A lose
lose model of negotiation. No body neither Mike nor Sara gained anything out of this
negotiation.
RADPAC Model of Negotiation

RADPAC Model of Negotiation is a widely used model of negotiation in corporates.
Let us understand it in detail
Every alphabet in this model signifies something:
R - Rapport
A - Analysis
D - Debate
P - Propose
A - Agreement
C - Close
R - Rapport: As the name suggests, it signifies the relation between parties involved
in negotiation. The parties involved in negotiation ideally should be comfortable with
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each other and share a good rapport with each other.
A - Analysis: One party must understand the second party well. It is important that the
individual understand each other’s needs and interest. The shopkeeper must
understand the customer’s needs and pocket, in the same way the customer mustn’t
ignore the shopkeeper’s profits as well. People must listen to each other attentively.
D - Debate: Nothing can be achieved without discussions. This round includes
discussing issues among the parties involved in negotiation. The pros and cons of an
idea are evaluated in this round. People debate with each other and each one tries to
convince the other. One must not lose his temper in this round but remain calm and
composed.
P - Propose: Each individual proposes his best idea in this round. Each one tries his
level best to come up with the best possible idea and reach to a conclusion acceptable
by all.
A - Agreement: Individuals come to a conclusion at this stage and agree to the best
possible alternative.
C - Close: The negotiation is complete and individuals return back satisfied.
Let us again consider Mike and Sara’s example to understand RADPAC Model
R - Rapport between Mike and Sara. They must be comfortable with each other and
should not start the negotiation right away. They must first break the ice. The
discussions must start with a warm smile and greetings.
A - Both Mike and Sara would try their level best to understand each other’s needs.
Mike’s need is to grab the opportunity while Sara wants to hire an employee for the
organization.
D - The various rounds of discussions between Mike and Sara. Mike and Sara would
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debate with each other trying to get what they want.
P - Mike would propose the best possible salary he can work on while Sara would also
discuss the maximum salary her company can offer.
A - Both Mike and Sara would agree to each other, where both of them would
compromise to their best possible extent.
C - The negotiation is complete and probably the next course of action is decided, like
in this case the next step would be generation of the offer letter and its acceptance.
Bargaining Strategies
The four bargaining strategies needed for resolving industrial dispute are as follows:
1. Distributive Bargaining 2. Integrative Bargaining 3. Attitudinal Bargaining 4. Intra-
organizational Bargaining.
1. Distributive Bargaining:
Distributive bargaining, perhaps the most common form of bargaining, takes place
when labour and management are in disagreement over the issues in the proposed
contract, such as wages, bonus, benefits, work rules, and so on. It involves haggling
over the distribution of surplus.
In it, the gains of one party are achieved at the expense of the other. So to say, a wage
increase won by labour may be considered a loss suffered by management as
reduction is profits. Therefore, this form of bargaining is sometimes referred to as
win-lose bargaining. Under it, each party is preoccupied with narrow sectorial gain of
grabbing the bigger share of the cake. It, thus, lacks holistic approach.
2. Integrative Bargaining:
The purpose of integrative bargaining is to create a cooperative negotiating
relationship that benefits both parties. In such bargaining, both labour and
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management win or gain or at least neither party loses. The issues of bargaining
involved in such strategy may be such as better job evaluation process, better training
programmes, better working conditions, etc.
Such negotiations result in increase in the size of cake and, in turn, larger share for
each party. This is considered the best bargaining strategy. Although integrative
bargaining is not nearly as common as the distributive process, signs seem to indicate
a steadily growing trend toward this cooperative form of bargaining.
3. Attitudinal Structuring:
Such a bargaining involves shaping and reshaping of attitudes to positive and
cooperative. Examples of attitudinal structuring and shaping may be from hostile to
friendly, from non-cooperative to cooperative, from un-trust to trust, and so on. The
need for attitudinal structuring or shaping is understood by the fact that any backlog of
bitterness between the parties leads to bargaining impasse by erupting and destroying
negotiations. Therefore, attitudinal structuring is required to maintain smooth and
harmonious industrial relations. The attitudinal structuring helps achieve ‘good-faith
bargaining’.
4. Intra-organisational Bargaining:
In practice, there are different groups in an organisation by department-wise and level
-wise. At times, different groups may perceive the outcomes of collective bargaining
process differently. For example, the unskilled workers may feel that they are
neglected or women workers may feel that their interests are not taken into
consideration. Not only that, there may be differences even within the management.
While personnel manager may support increase in wages, the finance manager may
oppose the same on the ground that it will disturb the company’s financial position.
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Given such situation, intra-organisational consensus is required for the smooth
acceptance of the agreements arrived at collective bargaining. Thus, intra-
organisational bargaining involves manoeuvring to achieve consensus with the
workers and management.
***************************************

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Unit IV
LEADERSHIP
Leadership is an integral part of management and plays a vital role in managerial
operations. It provides direction, guidance, and confidence to the employees and helps
in the attainment of goals in much easier way. In business and industrial
organizations, managers play the role of leader and acquire leadership of subordinates,
their efforts towards the achievement of organizational goals and activate the
individuals of an organization to make them work. Leadership influences behavior of
the individuals. It has an ability to attract others and potential to make them follow the
instructions. Individuals can be induced to contribute their optimum towards the
attainment of organizational goals through effective leadership. Leadership acquires
dominance and the followers accept the directives and control of a leader. Leadership
provides direction and vision for future to an organization.
Definition
Leadership is the art of influencing and inspiring subordinates to perform their duties
willingly, competently and enthusiastically for achievement of group’s objectives.
Leadership is a function of the leader, the followers and other situational variables:
L=F (l, f, s)
According to Terry, “Leadership is the ability of influencing people to strive willingly
for mutual objectives”
According to Keith Davis, “Leadership is the process of encouraging and helping
others to work enthusiastically towards objectives”.
Thus, leaders are people who are able to influence the behavior of others without
recourse to threats or other forms of force towards the individuals. Leaders are the
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people who are accepted by the other individuals, as a superior person to them.
Features of leadership
The features of leadership are as follows:
Leadership is the process of influencing behavior of individuals of an
organization.
Leadership uses non-coercive methods to direct and coordinate the activities of
the individuals of an organization.
Leadership directs the individuals to attain the tasks assigned to them by
following the instructions of their leaders.
A leader possesses qualities to influence others.

Leadership gives the individuals, a vision for future.
Leadership is a group activity. Leader influences his followers and followers
also exercise influence over his leader.
Importance of Leadership
The following points can analyze the need and importance of leadership:
• A leader should act as a friend of the people whom he is leading.
• A leader must have the capacity to recognize the potentials of the individuals
and transform them into realities.
• A leader should have the confidence of the individuals of the organization.
• A leader must be able to unite the people as a team and build up team spirit.
• A leader should be able to maintain discipline among his group and develop a
sense of responsibility.
• A leader must be able to build up a high morale among the individuals of the
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organization.
• A leader should motivate his people to achieve goals.
• A leader should try to raise the morale of the individuals and should maintain
ethical standards among the individuals.
• A leader should act as a link between the work groups and the forces outside the
organization.
Difference between Leadership and Management

Leading and managing go together but some differences exist between the two. The
following are the differences between the leadership and the management:
• Management takes rational and logical decisions while leadership takes decision
on expectations of the followers. Leadership has an emotional appeal while
management acts on rationality.
• The management establishes relationship through a lawful authority while
leadership establishes relationship through power.
• Managers have formal authority but the leaders have no such authority.
• All leaders are not managers and all managers are leaders.
• Management is a process of planning, organizing, directing and controlling the
activities of others to attain the organizational objectives. Leadership on the
other hand, is a process of influencing the behavior of the people to attain their
assigned tasks. A successful manager must possess both the managerial and
leadership qualities.
TYPES OF LEADERSHIP
Following are the main types of leadership:
Autocratic or Authoritarian
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In this type of leadership, there is a complete centralization of authority in the leader,
i.e., authority is centered in the leader himself. He has all the powers to make
decisions. He uses coercive measures and adopts, negative method of motivation. He
wants immediate obedience of his orders and instructions. Any negligence on the part
of subordinates results in punishment. There is no participation from the subordinates
in decision- making. A leader thinks that he is the only competent person in the
organization. According to Edwin B. Filippo, there are following three types of
leaders in autocratic:
1. Hard Boiled or Strict Autocrat: Leader, under such type uses negative
influence and expects that the employees should obey his orders immediately.
Non-compliance of his orders results in punishment. He makes all decisions
and does not disclose anything to anyone. He is quite rigid on performance.
2. Benevolent Autocrat: Benevolent autocrat leader uses positive influences and
develops effective human relations. He is known as paternalistic leader. He
praises his employees if they follow his orders and invites them to get the
solutions of the problems from him. He feels happy in controlling all the
actions of his subordinates.
3. Manipulative Autocrat: Leader, under such type is manipulative in nature. He
creates a feeling in the minds of his subordinates and workers that they are
participating in decision-making processes. But he makes all decisions by
himself. Non-compliance of his orders also results jn punishment.
Democratic or Participative
Democratic or Participative leadership is also known as group centered or consultative
leadership. In this type of leadership, leaders consult their groups and consider their
opinion in the decision-making process. Leaders encourage discussion among the
group members on the problem under consideration and arrive at a decision depending
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on their consent. Participation or involvement of the employees in the decision-
making process is also rewarded. Exchange of ideas among subordinates and with the
leader is given encouragement. Leaders give more freedom to their group members,
who feel that, their opinions arc honored and they are given importance. It develops a
sense of confidence among subordinates and they derive job satisfaction. It improves
quality of decision as it is taken after due consideration of valued opinions of the
talented group members.
The demerit of this type of leadership is that it takes more time to arrive at a decision,
as a lot of time is wasted while taking the views from the employee. It is, therefore,
very time consuming.
Laissez-faire or Free Rein

In this type of leadership, there is virtual absence of direct leadership. It is, therefore,
known as "no leadership at all". There is complete delegation of authority to
subordinates so that they can make decisions by themselves. Absence of leadership
may have both positive and negative effects. Free rein leadership may be effective if
members of the group are highly committed to their work. The negative aspect shows
that the leader is not competent enough to lead his group effectively. Members may
feel insecure and develop frustration for lack of decision-making authority.
Bureaucratic
This type of leadership emphasizes the rules and regulations of an organization. The
behavior of a leader is determined by the rules, regulations and procedure to be
followed under his leadership. The leader and the subordinates both follow these rules
and regulations. Therefore, there is no difference between the management and the
administration in this type of leadership. The employees, themselves cannot do
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anything in this regard. It is the rules that determine their performance.
Manipulative
This type of leadership manipulates the employees to attain their assigned tasks. A
manipulative leader is quite selfish and exploits the aspirations of the employees for
his gains. He knows very well the needs and desires of the employees but he does very
little to fulfill them. Due to such attitude, he has to face the hatred of the employees at
times.
Paternalistic
The paternalistic leadership believes in the concept that the happy employees work
better and harder. It maintains that the fatherly altitude is the right one for better
relationship between the manager and the employees. Everyone within the
organization should work together like a family.
Expert Leadership
The expert leadership emerged as a result of complex structure of modern
organizations. This type of leadership is based on the ability, knowledge and
competence of the leaders. He handles the situation skillfully with his talent. The
employees feel relieved as they are working under a person who is expert and can
handle the situation without any problem. In modern organizations, human resources
vary in terms of skill, knowledge and competences. They differ in quality,
determination and their attitude towards the organization. They exhibit different
behaviors as they differ in attitude and outlook also. The leader must understand their
behavior and accordingly can make use of the various types leadership.

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Leadership Skills
There is now recognition in both leadership theory and practice of the importance of
skills, how leaders should behave and perform effectively. Although there are many
skills, such as cultural flexibility, communication, HRD, creativity, and self-
management of learning, the research-based skills identified by Whetten and
Cameron seem to be most valuable. Their personal skills model, involving developing
self-awareness, managing stress and solving problems creatively; the interpersonal
skills model, involving communicating supportively, gaining power and influence,
motivating others and managing conflict, are especially comprehensive and useful.
Finally, the widely recognized organizational behavior .techniques such as, training,
job design and leaders can also effectively use behavioral management.
Qualities of successful leader-

Qualities required for a successful leader are:
1. Intelligence
2. Maturity
3. Sound physic
4. Self confidence
5. Objectivity
6. Empathy
7. Foresightedness and Vision
8. Decisiveness
9. Human relation Approach.
10. Responsibility
Theories of leadership
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Leadership is the process of influencing others towards the accomplishment of goals.
Recent efforts by behaviorists have shown a trend towards integrating the numerous
theories of leadership. A number of theories and approaches to study leadership have
been developed. There are broadly three theories of leadership.
• Trait Theory
• Behavior Theory
• Contingency Theory
(a) Trait Theory
This theory of studying leadership is taken into consideration to analyze the personal,
psychological and physical traits of strong leaders. The assumption made in this
theory was that some basic traits or set of traits differentiates leaders from non-
leaders. For example, the leadership traits might include intelligence, assertiveness,
above average height, self -confidence, initiative and understanding of interpersonal
human relations. The existence of these traits determines the importance of leadership.
Possession of these traits helps the individuals to gain possession of leadership. Since
all individuals do not have these qualities, only those who have them would be
considered potential leaders.
Some of the weakness of this theory is:
• All the traits are not identical with regard to essential characteristics of a leader.
• Some traits may not be inherited, but can only be acquired by training.
• It does not identify the traits that are most important and that are least important
for a successful leader.
• It does not explain the leadership failures, in spite of the required traits.
• It has been found that many traits exhibited by leaders are also found among
followers without explaining as to why followers could not become leaders.
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• It is difficult to define traits in absolute terms.
• Thus, the trait theory has been criticized for lack of conclusiveness and
predictability.
(b) Behavior Theory

The behavioral theory assumed that effective leaders behaved differently from
ineffective leaders. It also identified the need of consistency of behavior of good
leaders. This theory can be more clearly understood with the help of following case
studies.
• The Michigan Studies: Researchers at the University of. Michigan, led by Rensis
Likert, began studying leadership in the late 1940s. Depending on broad
discussions with both the managers and sub-ordinates, the Michigan studies
identified two forms of leadership behavior. They are discussed as below:
Job-centered leadership behavior : The first was called job-centered leadership
behavior, which focuses on performances and efficient completion of the assigned
tasks. A job-centered leader interacts with group members to explain task
procedures and oversee their work.
Employee centered leadership behavior: The second behavior was identified as
employee centered leader behavior, which focuses on, high performance standards
to be accomplished. This can be done by developing a cohesive work group and
ensuring that employees are satisfied with their jobs. Thus, the leader's primary
concern is the welfare of the ordinates. The Michigan researchers thought a leader
could show signs of one kind of behavior, but not both.

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• The Ohio State Studies: At about the same time, a group of researchers at Ohio
State also began studying leadership. The Ohio State leadership studies also
identified two major kinds of leadership behaviors or styles, which are as follows:
o Initiating-structure behavior: In initiating-structure behavior, the leader
clearly defines the leader-subordinate roles so that everyone knows what
is expected. The leader also establishes formal lines of communication
and determines how tasks will be performed.
p Consideration behavior: In consideration behavior, the leader shows
concern for subordinates feelings' and ideas. He attempts to establish a
warm, friendly and supportive.

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The most obvious difference between Michigan and Ohio State studies is that the
Ohio State researchers did not position their two forms of leader behavior at opposite
ends of a single continuum. Rather, they assumed the behaviors to be independent
variables, which means that a leader could exhibit varying degrees of initiating
structure and consideration at the same time i.e. a particular leader could have higher
ratings on both measures, low ratings on both or high ratings on one and low on the
other.
The Ohio State researchers found that a leader’s behavior remains consistent over a
period of time, if the situation also remains same. But the researchers could not come
up with one best combination of behavior suitable to all the situations. The researchers
used to believe that the leaders in possession of both types of behavior are most
effective. However, their studies at International Harvester found that leaders rated
highly on initiating structure behavior have higher performing but dissatisfied sub-
ordinates, whereas leaders rated highly on consideration structure had lower-
performing sub-ordinates who showed signs of higher satisfaction.
Most experts now agree that no single set of traits or behaviors appears to be common
to all good leaders. The universal approaches to leadership can help managers
examine their own leadership characteristics and match them against the traits most
commonly identified with good leaders. In order to understand the full complexity of
leadership, contingency theory is to be studied.

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Fiedler’s Contingency Theory of Leadership

Contingency theory is a general theory which says that there is no one singular best
way to structure your organization and lead your team.
Instead, the best way to do this will be contingent on the situation. So, contingency
theories examine how best to run your team or organization given different situations.
Another way to say this is that the best leadership style will be contingent on the
situation.
Fiedler’s Contingency Theory, just like all contingency theories, states that there is no
one best way to lead your team. The best way to lead your team will instead be
determined by the situation. It is important to realize that in Fiedler’s Contingency
Theory your leadership style is fixed. You cannot change your style to suit the
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situation. Instead, you must put leaders into situations that match their style. This puts
the theory at odds with more modern contingency theories such as situational
leadership.
There are two important factors in Fiedler’s Contingency Theory: leadership style and
situational favorableness.
1. Leadership Style
The first step in using the model is to determine your natural leadership style. To do
this, Fiedler developed a scale called the Least Preferred Coworker (LPC). To score
yourself on this scale you have to describe the coworker with whom you least prefer
to work.
What do you think about those people you least prefer working with?
Well, according to the model, the more favorably you rated the person you least prefer
to work with the more relationship oriented you are. The less favorably you rated the
person you least like working with the more task-oriented you are. So, in a nutshell:
High LPC = Relationship-oriented leader.
Low LPC = Task-oriented leader.
Task-oriented leaders tend to be good at organizing teams and projects and gettings
things done. Relationship-oriented leaders tend to be good at building good
relationships and managing conflict to get things done.

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Individuals who have a high LPC score, relationship-oriented leaders, are able to
separate the coworker’s personality from poor work performance; that is, they believe
someone can perform poorly at work and still have good personality traits. They:
Are more concerned with establishing good interpersonal relations;
Are somewhat more considerate;
Tend to be lower in anxiety;
Get along better with one another;
Are more satisfied to be in a group;
Derive satisfaction from successful interpersonal relationships and enjoy groups
regardless of task success; and
Gain self-esteem through recognition by others.
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If a relationship-oriented leader’s needs are threatened, these leaders “will increase
[their] interpersonal interaction in order to cement [their] relations with other group
members.” Therefore, a relationship-oriented leader will increase focus on the task “in
order to have successful interpersonal rations.”
Individuals who have a low LPC score, task-oriented leaders, link a coworker’s
personality characteristics to their poor work performance; that is, they believe
someone who performs poorly has negative underlying personality traits. They:
 Are more concerned with the task;
 Are more punitive toward poor coworkers;
 Are more efficient and goal-oriented;
Derive satisfaction from task performance and enjoy groups to a greater degree when
they are successful; and
Gain self-esteem through successful performance of the task.
If a task-oriented leader’s needs are threatened, these leaders will interact in a way
that will ensure task success. Thus, a task-oriented leader will increase focus on
interpersonal relations “in order to achieve task success.”
Assessing the Situation

In order to assess the situation, Fiedler states that there are three variables that should
be considered. The three variables can be described as follows:
The leader’s position power: “The potential power which the organization provides
for the leader’s use”;
The structure of the task, including:
 “The degree to which the correctness of the solution or decision can be

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demonstrated” (i.e. decision verifiability),
 “The degree to which the requirements of the task are clearly stated or known”
(i.e. goal clarity),
 “The degree to which the task can be solved by a variety of procedures (i.e. goal
path multiplicity), and
 “The degree to which there is more than one correct solution (i.e. solution
specificity); and
The interpersonal relationship between the leader and group members, including the
leader’s:
 Affective relations with group members,
 Ability to obtain acceptance, and
 Ability to engender loyalty.
Based on these variables, five types of group situations come into existence. They
include:
 Informal groups with structured tasks (i.e. structured, weak position power);
 Groups with structured tasks and powerful leader positions;
 Groups within organizations in which leadership is distributed over at least two
levels of management (varying conditions);
 Creative groups with unstructured tasks and weak leader position power; and
 Groups with unstructured tasks and powerful leaders.
Matching the Group Situation with the Leadership Style

Fiedler found that “the appropriateness of the leadership style for maximizing group
performance is contingent upon the favorableness of the group-task situation.” More
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specifically, he found that the aforementioned group situations are best matched to the
following leadership styles.
Hersey Blanchard Model

According to this model, the leader has to match the leadership style according to the
readiness of subordinates which moves in stage and has a cycle. Therefore, this theory
is also known as the life-cycle theory of leadership.
The theory, developed by Paul Hersey and Kenneth Blanchard, is based on the
’readiness’ level of the people the leader is attempting to influence. Readiness is the
extent to which followers have the ability and willingness to accomplish a specific
task. Ability is the knowledge, experience, and skill that an individual possesses to do
the job and is called job readiness. Willingness is the motivation and commitment
required to accomplish a given task. The style of leadership depends on the level of
readiness of the followers.
The readiness(R) is divided into a continuum of four levels which are:

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R1 - low follower readiness - refers to low ability and low willingness of followers i.e. those
who are unable and insecure
R2 - low to moderate follower readiness - refers to low ability and high willingness of
followers i.e. those who are unable but confident
R3 - moderate to high follower readiness - refers to high ability and low willingness of
followers i.e. those who are able but insecure
R4 - high follower readiness - refers to high ability and high willingness of followers i.e.
those who are both able and confident
The direction is provided by the leader at the lower levels of readiness. Therefore, the
decisions are leader directed. On the other hand, the direction is provided by the
followers at the higher levels of readiness. Therefore, the decisions in this case are
follower directed. When the followers move from low levels to high levels of
readiness, the combinations of task and relationship behaviors appropriate to the
situation begin to change.
For each of the four levels of readiness, the leadership style used may be a
combination of task and relationship behavior.
Task behavior: Extent to which the leader spells out the duties and responsibilities of a
follower which includes providing them direction, setting goals, and defining roles for
them. Usually a one-way communication exists which is meant to provide the
direction to the followers.
Relationship behavior: Extent to which the leader listens to the followers, and
provides encouragement to them. Here, a two-way communication exists between the
leader and the follower.
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By combining the task and the relationship behavior, we arrive at the following four
different styles of leadership which correspond with the different levels of readiness as
shown in the Figure.
S1 - Telling: This style is most appropriate for low follower readiness (R1). It emphasizes high
task behavior and limited relationship behavior.
S2 - Selling: This style is most appropriate for low to moderate follower readiness (R2). It
emphasizes high amounts of both task and relationship behavior.
S3 - Participating: This style is most appropriate for moderate to high follower readiness (R3). It
emphasizes high amount of relationship behavior but low amount of task behavior.
S4 - Delegating: This style is most appropriate for high follower readiness (R4). It emphasizes
low levels of both task and relationship behavior.
House’s Path Goal Theory

The theory was developed by Robert House and has its roots in the expectancy theory
of motivation. The theory is based on the premise that an employee’s perception of
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expectancies between his effort and performance is greatly affected by a leader’s
behavior. The leaders help group members in attaining rewards by clarifying the paths
to goals and removing obstacles to performance. They do so by providing the
information, support, and other resources which are required by employees to
complete the task.
House’s theory advocates servant leadership. As per servant leadership theory,
leadership is not viewed as a position of power. Rather, leaders act as coaches and
facilitators to their subordinates. According to House’s path-goal theory, a leader’s
effectiveness depends on several employee and environmental contingent factors and
certain leadership styles. All these are explained in the figure 1 below:
Leadership Styles
The four leadership styles are:
Directive: Here the leader provides guidelines, lets subordinates know what is
expected of them, sets performance standards for them, and controls behavior when
performance standards are not met. He makes judicious use of rewards and
disciplinary action. The style is the same as task-oriented one.
Supportive: The leader is friendly towards subordinates and displays personal concern
for their needs, welfare, and well-being. This style is the same as people-oriented
leadership.
Participative: The leader believes in group decision-making and shares information
with subordinates. He consults his subordinates on important decisions related to
work, task goals, and paths to resolve goals.
Achievement-oriented: The leader sets challenging goals and encourages employees
to reach their peak performance. The leader believes that employees are responsible
enough to accomplish challenging goals. This is the same as goal-setting theory.
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According to the theory, these leadership styles are not mutually excusive and leaders
are capable of selecting more than one kind of a style suited for a particular situation.
Contingencies
The theory states that each of these styles will be effective in some situations but not
in others. It further states that the relationship between a leader’s style and
effectiveness is dependent on the following variables:
Employee characteristics: These include factors such as employees’ needs, locus of
control, experience, perceived ability, satisfaction, willingness to leave the
organization, and anxiety. For example, if followers are high inability, a directive
style of leadership may be unnecessary; instead a supportive approach may be
preferable.
Characteristics of work environment: These include factors such as task structure and
team dynamics that are outside the control of the employee. For example, for
employees performing simple and routine tasks, a supportive style is much effective
than a directive one. Similarly, the participative style works much better for non-
routine tasks than routine ones.
When team cohesiveness is low, a supportive leadership style must be used whereas in
a situation where performance-oriented team norms exist, a directive style or possibly
an achievement-oriented style works better. Leaders should apply directive style to
counteract team norms that oppose the team’s formal objectives.
The theory has been subjected to empirical testing in several studies and has received
considerable research support. This theory consistently reminds the leaders that their
main role as a leader is to assist the subordinates in defining their goals and then to
assist them in accomplishing those goals in the most efficient and effective manner.
This theory gives a guide map to the leaders about how to increase subordinates
satisfaction and performance level.
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Transformational leadership
The transformational leadership approach encourages, inspires, and motivates
employees to innovate and create the change necessary to shape the future success of
the company. This is accomplished by setting an example at the executive level
through authenticity, a strong sense of corporate culture, employee ownership, and
independence in the workplace. Transformational leaders are change agents in the
business, who can identify innovative and shifting trends in technology, and then help
the organization embrace that change.
Transformational leadership model
Four main elements define the transformational leadership model and style. These

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factors were developed by Bass in 1985 to help define what transformational
leadership looks like and how to be successful as this type of leader:
Idealized influence: The most important thing you can do as a transformational
leader is to lead by example. Employees will look to you as a role model for behavior
in all areas of the workplace. If you lead with authenticity, employees will pick up on
that behavior and feel inspired to maintain that high standard for performance. It’s not
about manipulating employees into working hard, it’s about leading by example and
positively influencing others through a commitment to trust, transparency, and
respect.
Intellectual stimulation: To help create change, it’s important to challenge long-
standing beliefs in the company and push the status quo by encouraging innovation,
creativity, critical thinking, and problem-solving. Transformative leaders should help
employees feel comfortable exploring new ideas and opportunities that can inject
innovation into the organization. You want to establish an environment that welcomes
growth and gets everyone excited about digital transformation and other important
initiatives in the organization.
Inspirational motivation: As a transformational leader, you will need to encourage
your team to feel attached and committed to the vision of the organization. You want
to ensure employees feel as committed to these goals as you do as a leader by giving
employees a strong sense purpose, rather than attempting to motivate them through
fear.
Individual consideration: Employees need to feel a sense of independence and
ownership in the overall business goals. As a transformational leader, it’s important to
understand every employee is a unique person within the company and will have
specific needs, mentorship styles, and their own contributions to the company. These
leaders will tailor their coaching and mentorship styles to the employee and help them
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reach goals both inside and outside of the organization.
According to Bass’ model, transformational leaders set themselves apart from other
types of leaders by doing the following:
Encouraging the motivation and positive development of followers
Exemplifying moral standards within the organization and encouraging the same of
others
Fostering an ethical work environment with clear values, priorities, and standards
Building company culture by encouraging employees to move from an attitude of self-
interest to a mindset where they are working for the common good
Holding an emphasis on authenticity, cooperation, and open communication
Providing coaching and mentoring but allowing employees to make decisions and take
ownership of tasks.

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Difference in leadership styles in different countries

Gobalization has allowed different cultures to understand one another, showing that
there can be mutual understanding despite differences in business leadership. What is
more important when conducting international business is that the people, especially
leaders, should have enough flexibility to adapt their own business leadership style to
the cultural context of their country.
The way people show respect to authority is inherent in their culture. The deference
shown to elders and other persons of authority is learned at a young age, from parents,
siblings and teachers. The same ideas on how to show respect is carried into
adulthood, and can be seen by how people view the standard relationship with their
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subordinates and their boss. Thus, for someone who was raised in a culture where
deference to authority is high, it is difficult to lead a team whose culture is egalitarian.
There is a definite distance between the boss and the subordinates, so it can be a
dilemma when you are from a different culture. Will you be following the office
hierarchy and how you can show your subordinates that you are their boss, their
leader, their manager or their superior?
Types Of Corporate Business Leadership
Now that you know the general qualities of business leaders in different countries,
let’s look at the different types of business leadership in various parts of the globe.
Generally, the leadership style is heavily influenced by their culture. You can surmise
that a template for a global business leader will be very difficult to achieve, as it is
hard to separate a people from their culture. But being flexible and willing to adapt are
essential for success.
1. Germany
In a German organization, the chain of command for each company department is
clearly defined. Instructions and information come from the top and disseminated to
subordinates. The management structure is vertical but they also gather consensus. For
the Germans, the leader should be vigilant in seeing that the order is carried out
through continuous monitoring of a project’s progress.
Managers provide motivation to their staff by being one with them in following the
given task. They are fair and show solidary with their staff by working long hours and
obeying the regulations as well. The employees are comfortable with the scrutiny of
their superiors because they know what they are supposed to do.
2. France

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French managers are more autocratic. They are more roving compared to German
managers and consult with technical staff, idle managers and rank and file employees
although the decisions are made by senior executive. Orders come from the top and
handed down to employees. In France, some management blunders are tolerated and
highly qualified business leaders are confident that they are difficult to replace. The
structure in French company involves interdependence, teamwork, faith in their leader
and mutual tolerance.
3. Japan
Japan used to follow Confucianism so company executives typically conform to the
hierarchy. The top executives are rarely involved in the company’s daily activities.
There will be instances when the top executives hand down orders and policies are the
given to middle managers for dissemination to the workers. In Japan, ideas often come
from the lower level of employees who feel the company’s pulse. Signatures of
middle managers and workers are collected to support the ideas, inventions and
suggestions, to be given to the top executives. If the approval is sufficient, the top
management gives the approval.
4. Spain
Business leaders in Spain are autocratic, just like in France. However, they rely more
on intuition instead of logic. They display charisma and proud of their personal
influence on all the members of the team. They are skilled in providing inspiration and
know the act of persuasion. For them, it is not possible to reverse their decision.
5. Sweden

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Swedish business leaders are typically democratic and decentralized. They believe
that when employees are well informed, their motivation is higher which equates to
better performance. The hierarchy has fewer levels than their counterparts in Germany
or France. Swedish managers are very accessible to their team. They are always
willing to discuss. It is part of their culture and it is affirmed by a law which specifies
that all important decisions should be discussed with all the company’s employees
before implementation, which can delay the final decision.
6. United States
American business leaders are given the full authority and responsibility to manage
their department. They are responsible for getting everything done, utilizing short cuts
to realize revenues and in return, make themselves, their company and their
shareholders prosperous. They are often optimistic, confident, action and goal
oriented, aggressive and assertive. They are always thinking of their personal success.
The managers are able to display corporate spirit and teamwork but are also after their
individual freedom. They are expected to act according to the responsibilities given to
them and they act accordingly because they know they could be immediately fired if
they commit mistakes.
7. United Kingdom
In the United Kingdom, business managers are usually willing to compromise. They
are often helpful, casual and diplomatic and try to be fair. However, if called for, they
can be quite ruthless. They are usually traditionalists, so they can completely
misunderstand that the values of other people are different.
8. Australia
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Australian business leaders are often one with their mates. The system is more
circular, which gives the feeling that no one is going to pull rank. Australian business
managers are capable of making quick decisions. They are quick thinkers as well.
9. South Korea
Conglomerates in South Korea are often owned by families. Nepotism in South
Korean companies is common, with the key positions, held by the owners’ sons,
brothers, sons-in law, nephews and several male members of the extended family.
10. China
Chinese business leaders follow the directive of the people in higher position than
them. They are expected to give the instructions to their direct subordinates who
should disseminate the instructions down the company hierarchy as needed. The
subordinates are not expected to questions the instructions and decisions made by top
management because doing so means being disrespectful. Loss of face is very
important to the Chinese so everyone is concerned that everything should be favorable
and in order.
**********************************************

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UNIT 5
ORGANISATIONAL CULTURE AND CLIMATE
CULTURE : “A system of shared meaning held by members that distinguishes the

organisation from other organisations”. (Set of values and key
characteristics) .Organisational culture is the set of assumptions, beliefs, values,
norms that are shared by an organisation s members. Organisational Assumptions,
values, norms which are known as abstract elements of the culture. Externally
oriented characteristics like products, dresses, buildings etch, are called material
Element.
ORGANISATIONAL CULTURE:
A set of attributes specific to an organisation that may be inducing from the way the
organisation deals with its members. It is current situation in an organisation and
linkage among individuals, work groups and work performance.
CHARACTERISTICS
 Innovation Degree to which employees are encouraged to be innovative and
task risk.
 Attention to details Degree to which employee are expected to exhibit to
precision analysis and attention to detail.
 Outcome orientation: Degree to which management focuses on results/
outcomes rather than on the techniques and processes used to achieve those
outcomes
 People orientation : The Degree to which ma nagement decisions take into
consideration the effect of outcomes on people within the organisation.

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 Team Orientation: The degree to which work activities are organised around tea
ms rather than individuals.
 Aggressiveness: The Degree to which peoples are aggressive and competitive
rather than easygoing.
 Stability: The degrees to which organisational activities are emphasize
maintaining the status quo in contrast to growth. Based on these characteristics,
organisation culture should be identified
 Based on anthropology and sociology Study of climate base on psychology.
Culture is a mea ns through which members learn Climate does not deal with
values and norms it is and communicate what is accepted and concerned with
the current atmosphere in the unaccepted in an organisation on the light of its
organization values and norms .Culture is more difficult to change in short
period Climate is subject to manipulation by managerial of time actions even in
short-term.
CULTURE IS A DESCRIPTIVE TERM

Organisational culture is concerned with how employees perceive the characteristics
of organisation. It is a descriptive term, it is important because differentiate the
concept of job satisfaction. Job satisfaction seeks to measure of affective response to
work environment. It concern with how employees feel about the organisation’s
expectation, rewards, policies and etc...
Many organisation have dominant culture and many number of sub culture.
DOMINANT CULTURE: It expresses the core values that are shared by a majority of
the organisation s members. Macro view of culture that gives an organisation its
distinct personality.
SUB-CULTURE This is mini culture within an organisation, typically defined by
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department designations and geographical separation. It includes core values of
dominant culture plus additional values unique to members or the concerned
department.
STRONG Vs WEAK CULTURE Strong culture impact on employee behaviour and
or more directly related to r educed turnover. Primary and dominant values that are
accepted throughout the organisation. It influence on the behaviour of its members
because the high degree of sharedness and intensity creates an internal climate of high
behavioural control. Builds cohesiveness loyalty and commitment less opportunity to
leave organisation.
CULTURE Vs FORMALIZATION Cultures increase behavioural consistency. Strong
culture can act as a substitute for formalization. Formalization refers to the degree to
which the organisations are standardized. Both are two different roads but common
designation Strong organisational culture less management need to concern rate on
rules and
regulations to guide employee s behaviours
ORGANISATIONAL CULTURE Vs NATIONAL CULTURE: National culture is
greater impact on employees than organisational culture .National culture strongly
shaped this company s organisational culture.
Boundary defining roles: it relates distinction between one organisations from another.
Represent a sense of identity for organisation culture: culture facilitate the generation
of commitment of something larger than one s self-interest. It enhance the stability of
social system: culture is the social glue that helps the organisation together by
providing appropriate stds for what employees should say and do. Serve as sense-
making and control mechanism that guides and shapes attitude and behaviour of
employees. For example: Disney theme park- attractive, clean wholesome looking
with smile face. Image of
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Disney Strong culture support by formal rules and regulations that Disney theme park
employees will act in uniform and predictable way.
CULTURE AS A LIABILITY: Culture should match with environment. In many
organisations with strong culture practice that led to previous success can lead to
failure when those practices no longer match up well with environment
needs .consistency of behaviour is an asset to an organisation.
CREATING AND SUSTAINING CULTURE: Origin of a culture: Organisation
current customs traditional and formal way of doing things. Characteristics of
founder: personality aggressive, competitive, highly discipline traits, personality,
values, attitudes, past work experience, good bad experience from his own life, family
culture and customs, learning s from varies personalities and situations.
Establishing Creating Operationalizing Socialization of values vision values and
vision employees
Establishing Values: Define values- value is define as what is right and what is wrong
what is desirable and what is undesirable and so on. It depends upon the founders and
other key personnel s values. Bajaj auto limited is an example. He is Gandhi ideology.
More opportunity in business he selected trading in auto parts. Expect liquor and mill
cloth. Values also determine how organisational activities will be ca rried out.
CREATING VISION: Vision represents imagination of future event and prepares the
organisation for the same. Visionary companies hold distinct set of values. Vision
derived from values. A good vision helps several ways to organisational member It
inspires and exhilarates them. It helps in the creation of a common identity and a
shared sense of purpose. It creates competitiveness originality uniqueness. It fosters
risk-taking and experimentation. It fosters long term thinking.
Operational sing values & vision:- These are not put into action. For putting values &
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vision in action, the organisation can unfertile full activities. Organisation prepares a
written statement containing its value & vision & communicates these two
organisation members land books. Take care should be takes while selecting an
employees, that their values match organisational values. Reward system put enough
provisions in the reward system.
Socialization process:- Pre-Arrival:- Before join the organisation he understands what
is organisation from kerning friend & family. At the recruitment stage most of the org
give job previews which help the prospective employees to learn more about the job
& the organisation.
Encounter:- Expectation true with realities he adopt org culture quickly. Expectation
& realities is different Expectation abt the person her boss, co-workers. The new
employee must undergo socialization tha t will detach him from her previous
assumptions & replace them with another set that org deems desirable. A new member
become totally disillusioned with the actualities (disappointed) of her job. Proper
selection should significantly reduce the probability of latter encounter or occurrence.
Metamorphosis stage:- New employee adjusts to his/her work groups values & norm
Methods of socialization with organisation
Stories:- Learning org norms & values through stories include circulation of informal
& oral narration of events about the organisation.
Rituals:- Rituals repetitive sequence of activities that express & re-in force the key
values of the organisation. What goal is most important who is important?
Corporation rituals. May – Kay cosmetics annual award meeting. Miss American
pageants wear. This show act as a motivator by publicly recognising outstanding sales
performance. In convey to sales persons that reaching their quote is important & that
through hard work & encouragement they too can achieve success.
Material symbols:- Various materials symbols used by org convey specific means
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high status people can be distribution the bases of various facilities provided to him
equality.
Language:- Many organizations & units within organization use language as a way to
identify members of a culture or sub culture by learning these language members at
least to their acceptance of the culture & in so doing help to preserve it. It acts as
common denominator that unties members of an organizational culture.
Changing the org culture:-
Predict the current culture set unique goals. Recruit personnel with previous
experience so that they are able to interact well. Make changes from top to bottom so
that consistent message is delivered Include employees in this process of change when
making changes in rules & policies. Stay the course of being persistent.
ORGANISATIONAL CHANGES
Change refers to alternation in the total work environment. People should adopt
themselves to the changing situations. i.e. the change towards the growing trend.
Forces to Lead Organizational Change

Change is a law of nature; we live in a dynamic world where nothing remains static.
Everything around us keeps on changing.
Organization change refers to the alteration of structural relationships and role of the
people in the organization. It is largely structural in nature. These changes may be
pressurized by internal or external forces, may affect only one or all the levels and
departments or may be related to the organizational structure (hierarchy), people,
technology, working or social environment. The change in task and other component
sometimes change in organizational structured too. Organization change is required
due to dynamism of external variables. To make an adjustment
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with external environment, organizational changes takes place.
Organization has to survive and operate in an environment. Environment is dynamic
and changing fast. Both the external and internal environment forces encourage
organization to change. External forces are located outside the organization. They are
not control by top management. They bring opportunities and threats to the
organization. Generally, the pressure for organizational change may be created by
internal and external factors which are described below.
I. External Forces
External forces are those that emerge from the sources external to the environment i.e.
the macro environment. These forces directly and indirectly affect the working of an
organization. These forces are for beyond the control of an organization. Hence, an
organization is bound to change itself as warranted by these forces. Such forces are as
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follows:
1. Market forces of change
Market conditions are constantly changing. Consumer tastes and preferences are
changing. Changes in it may include changes in the nature and extent of demand
caused by varying consumer needs, goals and preferences; changes in nature and
volume of supply caused by the entry of new suppliers, new products and substitutes
and new competitors; changes in the factors of production and changes in other
market conditions relating to prices, quality, transport, packaging, warehousing,
financing, etc. These changes call for necessary adjustments, alteration, expansion or
contraction in the organizations.
2. Socio-culture forces of change

Social values, customs, traditions, living patterns, food habits, clothing patterns,
conditions of women etc. are constantly changing. Such changes have a great bearing
on the organizations relations and system. Political philosophy (capitalism, socialism
or communism) move for social injustice and equality, upliftment of the downtrodden
and many other such social factors would influence organizations systems of
recruitment and selection, technology and structural relationships. It also influences
such as in delayed marriage, people's attitude, norms and value toward society.
3. Technological forces of change

Technology is changing at a very rapid speed. Technological changes have even
affected the social conditions of work. Mechanization, computerization and
automation have greatly affected the functioning of the modern organizations. New
processes and methods have become imperative for promoting organizations
efficiency, economy, safety and welfare. Similarly, sophisticated information
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technology, robotics, faster and cheaper computers, innovation and experimentation
have reshaped the jobs arising from new developments in technology.
4. Political forces of change

Change in political and legal factors also required change in organizations. The
political system, philosophy of the political party in power, the working of judiciary
etc. affect the business system. Similarly, changes in labor, corporate and taxation
laws; economic policies relating to industry, business, agriculture and
export import controls and regulations and incentives and concessions, all of which
have a great bearing on the organizations and compel the organizations to change
itself accordingly. The change in political forces as changing world political such as
SOVIET UNION, reunification of GERMANY, collapse Saddam Hussein regime in
IRAQ. The increase in the activities of pressure groups also lead organizational
change.
5. Economic forces of change

The economic condition of a country may cause changes in organizations. State of
inflation, deflation, recession, boom, saving rate, rate of investment, availability of
resources (raw-materials, energy etc.) infrastructure facilities etc. decide the economic
condition of a country.
Similarly, the economic policy plays a major role in shaping the pattern of change.
The industrial and licensing policy, import-export policy, monetary policy, taxation
policy, policy of globalization and liberalization, backward area development policy
etc. are the major factors that may cause change in many business organizations.

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II. Internal Forces

Internal forces or causes arise from the internal or micro environment of the
organization. These forces can largely be controlled by the management but they do
cause certain changes in the organization. Such forces include the following:
1. Change in Organizational Goal

The goals of employees change; organizational goals also experience succession and
displacement. Sometimes, organizational goals or objectives are changed. The
organization may like to change its business or add more and new lines of product,
diversify product, start new business and so on. In such a situation, change in
organization is inevitable.
2. Existing Organizations Deficiencies

In organizations, certain deficiencies and adjustments become apparent in due course
of time. There are some of the common organizational deficiencies which obviously
call for their removal and hence, necessitate changes in the existing organizations
pattern:
 Unnecessary lengthy chain of command
 Unmanageable span of control
 Lack of coordination between the departments
 Barriers in communication
 Disparity in authority and responsibility
 Multiplicity of unnecessary committees
 Lack of uniformity in policies
 Lack of cooperation between line and staff
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3. Change in Policies
The organizational policies including production, marketing, personnel and financial
policies are changing with needs of the environment. Hence, change in organization
becomes inevitable.
4. Sequential change
Every organizational change requires re-adjustments, sequential changes and
supportive changes. For example, creation of a new department may cause the
appointment of some new managerial positions, which in turn may necessitate
reallocation of authority, responsibility and duties of the concerned departments.
Other departments might have to realign their structure, tasks, objectives and staffing.
It is, therefore, necessary that before any significant change is made, the
possible consignment of the change must be identified and evaluated and the problem
of change should be examined in its total perspective.
5. Changes in Top Management

Change in top management in the organizations may take place on account of new
appointments, transfers, promotions or may be caused by expansion and technological
changes. Change in the top level managers invariably involves certain organizational
changes. Top management introduces sweeping changes in the organizations to suit
his style of working.
6. Change in Personnel
The personnel in an organization change very often. It may be due to promotions,
transfers, resignations, retirement and so on.
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7. Employee Pressure
Every increasing demand of the employees for better job security and job satisfaction,
better safety and welfare, congenial working environment, higher wages and
incentives, participation in managerial process and more authority and power also
appreciate changes in the organizational structure and pattern.
Effect of Change:
Change touches a sequence of related and supporting changes. It is known as Domino

Effect. For example: organisation is not able to face competition in the market
because of old techniques of production and competitors. New technique only
alternative is to only change. If Organisation acquiring new technology change job
content, it completely the recruitment new employee or training given to existing
employee.
Environment constrain – job structure change, internal relationship change
Reactive and Proactive changes: Reactive change is undertaken when it is
pressed by some factors. Either internal or external to the organisation most of
organisation believe in traditional pattern of working often go for reactive
changes. Organisation introduces certain methods or systems when they are
forced for that. For example: population control devices they did when they are
forced by government. Proactive change is brought out of the likely behaviour
of the forces having impact on the organisation.
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Organisation known as prospectors which constantly interact with their
environment to identify new opportunity and threats. Regularly basis changes in
order to avoid developing inertia of inflexible. Planned Changes - Planned
changes are change activities that are intentional and goal oriented. - Planned
change aims to prepare the total organisation or a major portion of it to adapt to
significant changes in the organisation s goals and direction
- Implementation of a structural innovation a new policy or goal or a change in
operating philosophy climate or style.
First order change: said to be continuous that ther e will be no fundamental shift
in the assumptions regarding the improvement to be made in the functioning of the
orga nisation.(moderate changes/ adjustments. It can easily reversible) Second order
change/ fundamental / quantum. It is sa id to be a discontinuous one that the a
ssumptions are to be reframed by the organisation.(completely different nature from
old state )
RESISTANCE to CHANGE:
Whenever an idea is proposed, i. e to make some changes in the organisation, there
will be resistance to a dapt those changes. When there is resistance, then the merits
and demerits of that idea will be discussed and it is good for organisation. The
resistance may fall under 4 types. They are Overt (explicit ) Implicit (covert)
Immediate Deferred Explicit a nd immediate resistance that occurs after
implementation of a certain changes initiative is rather easier to ma nage than implicit
or deferred resistance. Implicit and deferred are more complicated. When resistanc e is
not open, the management does not even have inkling of the resistance of its actions
by employees.

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INDIVIDUAL RESISTANCE It is related to human characteristics. They are Habit.

The habits developed by an individual are difficult to change. Security. Individual
resist change if this likely to decrease their income or sources of earning. Economic
factors. People tend to resist change that threatens their safety and security. Fear of the
unknown. People fear the unknown and uncertainty associated with it and hence
resists change. Selective information processing. Individuals process information
selectively to make it compatible with their perceptions.
ORGANISATIONAL RESISTANCE:
Limited focus of change. Group inertia Threat to expertise Threat to established power
relationship Threat to established resource allocations.
HOW TO OVERCOME RESISTANCE TO CHANGE

Employees should be educated on the logic of changes by explaining the full facts
and all doubts must be cleared in order to reduce the resistance.
 Participation. It becomes difficult for the individuals to resist a change decision
in which they take active participation.
 Facilitation and support. Change agents can offer a range of supportive efforts
like counselling, training, paid leave, etc.
 Use of group force. Group can exert more pressure on attitude, values and
behaviour. By identifying strong cohesive groups and ma king them involve a
nd participate in the decision making process, the resistance is reduced.

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 Leadership for change. A strong leader /manager can use personal reasons for
change without resistance. He brings a climate for psychological support from
the subordinates.
 Negotiation. A few powerful individual can be offered a specific reward

package and negotiated.
 Manipulation. Twisting information, creation of false rumours, with-holding
undesirable information are some of the tactics of manipulation to decrease the
intensity of resistance to change.
 Coercion. This is the application of force or direct threats of transfers, loss of
promotions, negative performance evaluation. Here the change agents
credibility will be zero.
APPROACHES: LEWIN’s Three steps Model:

REFREEZING MOVEMENT UNFREEZING
Unfreezing: Employees are educated about external and internal factors that make
change important. Movement of changes: Employees convinced on pr epared for
change, the actual cha nge proc ess begins doing a way of practices and adopting new
methods. Job duties are redefined. Refreezing: It is an implemented stage. Reforming
changes so that organisation does not revert to old state of things. New skills are
adopted with the help of training and management ask to demonstrate new skills like
Role

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Approaches to organizational change

As organizational change is a complex process, therefore managers must approach it
systematically and logically. Some organizational changes are planned whereas other
changes are reactive. Planned change is designed and implemented by an organization
in an orderly and timely fashion in the anticipation of future change.
Reactive change results from a reaction of an organization to unexpected events. In

contrast to planned change, it is a piece-meal response to circumstances as they
develop. External forces that the organization has failed to anticipate or interpret
always bring about reactive change. Since reactive change may have to be carried out
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hastily, it increases the likelihood of a poorly conceived and poorly executed Program.
Planned change is always preferable to reactive change. Managers who sit back and
respond to change only when they can no longer avoid it are likely to waste a lot of
time and money trying to patch together a last-minute solution. The more effective
approach is to anticipate the significant forces for change working in an organization
and plan ways to address them. To accomplish this, managers must understand the
steps needed for effective change.
A comprehensive model of change

The comprehensive model of change shown in the following figure shows seven steps
that can lead to effective change. This model is useful for both planned and reactive
change.
The seven steps of comprehensive model of change are as follows:

Recognize need for change
The first step in this model is recognizing need for change. For marketing managers
who anticipate needed. Change, recognition is likely to come much earlier, as a result
of marketing forecasts indicating new market potential, expert indications about
impending socio-economic change or a perceived opportunity to capitalize on a key
technological breakthrough. These managers tend to ‘initiate change because they
expect it to be necessary in the near future in any case’.
Establish goals for change

The manager must then set goals for the proposed change. It is important for the
manager to specify goals that the change is supposed to accomplish. The goals can be
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set to maintain or increase the market standing, to enter new markets, to restore
employee morale, to reduce turnover, to settle a strike and to identify good investment
opportunities.
Diagnose relevant variables
An important next step is diagnosing organizational variables that have brought about
the need for change. Turnover, for example, may be caused by a variety of factors
such as low pay, poor working conditions, poor supervision, better alternatives in the
job market or employee job dissatisfaction etc. Thus, if turnover is the recognized
stimulus for change, the manager must understand what has caused it in a particular
situation in order to make the right changes. To carry out this diagnosis, the manager
may discuss the situation with employees and other managers.
Select change intervention

After the manager has developed an understanding of the problem and its causes then
he must select a change intervention that will accomplish the intended goal. An
intervention is a specific change induced in an organization with the intention of
solving a particular problem or accomplishing a specific objective. For example, if
turnover is caused by low pay, then a new reward system is required and if the cause
is poor supervision then interpersonal skills and training for supervisors is required.
Plan implementation of change

The manager must then carefully plan the implementation of change. Planning the
implementation of change involves consideration of the cost of the change, how the
change will affect other areas of the organization and the degree to which employees
should participate in bringing about the change. Hastily implemented change can
result in more harm than benefit. For example, if the change involves the use of new
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equipment, the manager should not make any changes that rely on the use of new
equipment until it has arrived and been installed and workers know how to use it.
Moreover, if change is thrust upon them too quickly, their resistance may stiffen.
Implement change
A systematically implemented change is more likely to proceed smoothly and to
encounter fewer obstacles than is a change that is implemented too quickly and
without adequate preparation.
Evaluate implementation
Finally, after the change has been implemented, the manager should verify that it has
accomplished its intended goals. A change may fail to bring about the intended
results. This may be due to inappropriate goals or inaccurate diagnosis of the situation
or wrong selection of intervention.
Development and testing after a long period of time. Second, the goals of different
functional groups vary to a large extent. The goals of manufacturing groups are more
specific and clear-cut than the goals of R&D groups.
 Conflicting reward systems: Sometimes the ways in which reward systems in
organizations arc designed create a situation in which one group can only.
Accomplish its goal at the expense of other groups. For example, staff
departments may be rewarded for cutting costs and personnel while line
departments are rewarded for increasing the amount of products sold or services
provided. To increase the amount of products sold, the line group may have to
depend even more heavily on staff groups such as advertising. However the
staff groups are being rewarded for cutting costs and personnel provided the
types of services asked for by line groups can prevent them from meeting their
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own goals. Conflicting reward systems inevitably result in poor inter-group
relations.
 Different perceptions and attitudes: The attitudes, values and perceptions of
members of various groups towards each other can be a cause and a
consequence of the nature of their relationship. If the group relations begin with
the attitudes of distrust, competitiveness, secrecy and closed communications,
there is a possibility of conflicts, disagreements in their views and among
themselves. This can affect the success of a group to accomplish their work in
an effective manner.
UNIT 6
TIME MANAGEMENT AND STRESS MANAGEMENT
STRESS
Stress is a state of discomfort experienced by an individual. Loss of emotional
stability is the general expression of stress. It is generally apparent when the
individual experiences a biological disorder. Stress has a positive association with the
age, life styles, time constraints and the nature of occupation. Certain occupations are
more prone to the stress than the others. For instance, drivers of vehicles, doctors,
lawyers and managers are more likely to get stress than teacher, bankers and operating
personnel. Individuals feel stress when the needs or desires are not accomplished in
the normal expected ways. This is because of the natural constraints operated on the
individuals.
The more the intensity of the desire and greater is the uncertainty associated with the
achievement of the goal, the greater is the degree of stress. Employees are working for
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longer hours, taking on the work once done by laid-off colleagues, meeting tighter
deadlines and cutting back on expenses are some of the causes of stress. Combined to
this with the double-income family demands of monthly mortgages, childcare issues
and aging parents, and the result for many is anxiety, sleeplessness, irritability, and
physical and mental deterioration. Perhaps these are the potential reasons for stress in
the employees.
In the words of Fred Luthans, stress is defined as an adaptive response to an external
situation that results in physical, psychological, and/or behavioural deviations for
organisational participants. Ivancevich and Matteson define stress as the interaction of
the individual with the environment. It is an adaptive response, mediated by individual
characteristics and/or psychological processes that are consequence of any external
action, situation or event that places special physical and / or psychological demands
upon a person. Schuler defines stress as a dynamic condition in which an individual is
confronted with an opportunity, constraint, or demand related to what he or she
desires and for which the outcome is perceived to be both uncertain and important.
The following are the features of stress.
• Stress is both psychological and physical aspect.
• It is common to both the genders.
• It results from the deviation of expectations from actual situation.
• It is symptomatic. Potential stress appears with the symptoms. If the potential stress
is ignored it leads to actual stress.
• Stress is treated to be negative. Nevertheless, it has positive consequences. This is
called as eustress.
• Stress is an interactive concept. It does not spring from the internal organs of the
individual. It comes from the interaction of the human being with the environment.
Thus, environment has a profound influence on the stress.
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• Stress is generic term. If it is applied to the context of organisation, it is known as
work stress or job stress.
• Stress occurs only when the human being feels mediation of the internal or external
factors. • Stress is related to the attitude of the person. Stress does not occur when the
person is having an indifferent attitude to the opportunity.
• Stress is associated with certain common biological disorders such as heart attack,
stroke, diabetic, blood pressure, neurological disorders etc.
The stress is caused when a person has needs, desires, wishes and expectations and
certain forces prevent the person from doing the desired activities. Stress and anxiety
are not similar concepts. Anxiety occurs as a result of emotions caused by the
interactions of environmental stimuli. Thus, it is confined to the psychological
disturbance. On the other hand, stress is originated by the psychological tensions and
slowly leads to physical or biological breakdown. While stress is accompanied by
anxiety, the latter need not always lead to stress. Similarly, stress and burnout are
different concepts. Prolonged stress leads to burnout. It is a state of mind. It results
from a continuous feeling of emotional stress. An individual feels physical, mental
and emotional exhaustion. Job burnout is characterised by emotional exhaustion,
depersonalisation, and diminished personal accomplishment. Burnout is also closely
associated with the so-called helping professions such as nursing, education, and
social work.
CAUSES OF STRESS
Stress is a psychological state of imbalance coupled with biological disorder.
Individual experiences deviation in his biological system which is called potential
stress. Potential stress moderated by individual, organisational and environmental
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variable leads to actual stress. The variables that convert potential stress into actual
stress are known as stressors. Thus, stressors can be intra- organisational and extra
organisational. Intra-organisational stress arises out of individual, group, and
organisational factors. Extra organisational factors relate to environment of the
organisation. The intra organisational factors causing stress are divided into individual
factors and organisational factors.
Intra Organisational Factors
Individual Factors: Individual factors, which cause stress include: personality and
individual differences, family problems, economic problems, life styles and role
demands. i) Personality and individual differences: Individual basic dispositions are
the main reason for potential stress. Introversion, extroversion, masculinity, rigidity,
locus of control, personal life, demographic differences such as age, health, education
and occupation are some of the reasons causing stress in individuals. It is found that
type A personality is prone to more stress than type B personality. Type A personality
is characterised by emotion and sensitivity to organisation goals, competitive spirit
and achievement oriented behaviour. This leads to frustration even for small
deviations from the expectations, thus feeling of more stress. Type B personality is
typically relaxed, carefree, patient and less serious in achieving objectives. Thus, he
never feels stress.
 Some propositions of personality and individual stress are:
• Age is positively related to stress. When a person grows older, his expectations
also go up. If he is unable to find avenues for realising expectations, he feels
stress.
• Sound health enables a person to cope up stress better than unsound health.
• Education and health are related positively and negatively. Better education
provides an opportunity to understand things in a better manner. Even the level
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of maturity increases with better education. So better educated persons are less
prone to stress. Poorly educated people in relation to the jobs are likely to feel
more stress due to the poor adaptability on the jobs.
• The nature of the occupation and stress are related. Certain occupations are
inherently stressful than the other occupations. For instance, doctors, lawyers,
politicians etc. At the same time occupation also gives enough stress tolerance
ability. Politicians are found to posses more stress tolerance ability.
• Strong urge for satisfaction of needs compel people to over work and may lead
to stress. • Greater degree of locus of control leads to stress. A person is less
likely to feel stress as he believes that he can exercise control over external
factors.
• Self-efficacy and stress are negatively related. Higher degree of self-efficacy
elevates motivation levels. Therefore people with greater self-efficacy remain
calm and effectively face stressful situation. Perception of capacity to bring
changes provides greater ability to withstand stress.
• Another personal disposition related to stress is psychological hardiness.
Hardiness is the ability to withstand provocation from others. People with
greater psychological hardiness are able to survive and withstand stressful
environment. For instance, people who remain calm even at the provocation of
others and ignore the esteem are less likely to feel stress. Individual differences
in perception, job experiences, social support, hostility etc., are some of the
reasons that cause stress.
• Perception helps in understanding the environment. Person possessing a
positive perception understands reality and appraises the events objectively.
Thus, he feels less stress.
• Job experience and stress are negatively related. As one gains experience he
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develops adaptability to various job and organisational demands. He realises the
job expectations. He develops a mechanism to deal with stress situations.
Therefore more experienced people remains cool, calm, and ignore stressors
than young and inexperienced employees.
• Hostility and aggressive behaviour is positively related to stress. A person who
becomes aggressive and gets quick anger is cynical and does not trust others.
He feels more stress than others who are cool and calm
Family Problems: Family issues influence the personal life of individuals. Sound
marital relationships, marital discipline, early and healthy children may lead to happy
personal life. They enjoy the life and become positive in their attitudes. So they do not
tend to greater stress. On the other hand, poor marital relationships, nagging wife,
family separations, extra marital relationships, disturbing children, poor settlement of
family members, aging parents, dual working couple, death of spouse or other close
family member are some of the reasons for greater stress in the individuals.
Economic Problems: Economic difficulties are the main cause of stress. Poor
management of personal finances, heavy family expenditure, and constant demand for
money, poor incoming earning capacity and slow financial growth in the job are some
of the economic reasons responsible for greater stress. For instance, an increasing
family expenditure, increased expenditure on children education and health create
heavy demand for income. This creates greater stress in the individuals. iv) Life
Styles: Life Styles of individuals can cause stress.
The following situations of life style cause stress:
• Sedentary life styles cause greater stress.
• Individuals experiencing certain unique situations may be compelled to alter
their attitude, emotions and behaviour. These are known as life trauma. Life
trauma is potential reason for stress.
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• Faster career changes bring more responsibilities to the individuals. Persons
occupying higher positions in the younger age are likely to get heart attacks due
to greater stress. This is because of inability to adapt to the new carrier
responsibilities.
Role Demands: Individuals play multiple roles in their personal life and
organisations. In their personal life, they play the roles of family head, husband,
father, brother and son. In social life they play the roles of club members, informal
community group members, members of recreation groups, religious groups and a
number of other social groups. Similarly in organisations, employees play the role of
superior, subordinate, co-worker, union leader, informal group leaders etc.
Incidentally, all these roles are performed simultaneously. Thus, they cause anxiety
and emotion. Another potential reason is role conflict. It arises because of poor role
perception, role ambiguity, role overload and role overlapping. Role ambiguity and
stress are positively related. The greater the role conflict, individual experiences more
stress.
Organisational Factors: An organisation is a combination of resources, goals,
strategies, and policies. In order to make people to work, organisations create
structure, process and working conditions. In modern organisations, number of factors
create an environment of stress. The changing environmental dynamics, globalisation,
organisational adjustments like mergers and acquisitions lead to stress among
employees. In addition, a number of internal organisational factors cause employee
stress. Some of them are poor working conditions, strained labour management
relations, disputed resource allocations, co-employee behaviour, organisational design
and policies, unpleasant leadership styles of the boss, misunderstandings in
organisational communication, bureaucratic controls, improper motivation, job
dissatisfaction, and less attention to merit and seniority.
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Let us learn the organisational stressors in detail.
i) Working Conditions: Working conditions and stress are inversely related.
Employees working with poor working conditions are subject to greater
stress. The factors that lead to more stress are crowded work areas, dust,
heat, noise, polluted air, strong odour due to toxic chemicals, radiation, poor
ventilation, unsafe and dangerous conditions, lack of privacy etc.
ii) Organisational Tasks: Organisational tasks are designed to meet the
objectives and goals. Poorly designed tasks lead to greater stress. Task
autonomy, task inter-dependency, task demands, task overload are some of
the potential reasons for stress in organisations. For instance greater the task
interdependence, greater is the coordination required. This requires
employees to adjust themselves to coworkers, superiors, and subordinates,
irrespective of their willingness. They are expected to communicate,
coordinate, exchange views, with other people irrespective of caste, creed,
gender, religion and political differences. Lack of adjustment and poor
tolerance to others lead to greater degree of stress.
iii) Administrative Policies and Strategies: Employee’s stress is related to
certain administrative strategies followed by the organisations. Down sizing,
competing pressure, unfair pay structures, rigidity in rules, job rotation and
ambiguous policies are some of the reasons for stress in organisations.
iv) Organisational Structure and Design: As pointed out earlier
organisational structure is designed to facilitate individual’s interaction in
the realisation of organisational goals. Certain aspects of design like
specialisation, centralisation, line and staff relationships, span of control,
and organisational communication can severely create stress in
organisations. For example, wider span of management compels the
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executive to manage large number of subordinates. This may create greater
stress. Similarly, frequent line and staff conflict lead to obstacles in the work
performance. Inability to resolve the conflicts lead to stress.
v) Organisation Process and Styles: A number of organisational processes are
designed for meeting organisational goals. Communication process, control
process, decision making process, promotion process, performance appraisal
process, etc. are designed for realising organisational objectives. These
processes limit the scope of functioning of employees. Improper design of
various organisational processes leads to strained relationships among the
employees. They may also cause de-motivation and job dissatisfaction.
Consequently, employee feels stress in adapting to the processes.
vi) Organisational Leaderships: Top management is responsible for creation
of a sound organisation climate and culture by appropriate managerial style.
The climate provided should be free of tensions, fear, and anxiety.
Authoritarian leadership style creates a directive environment in which
employees are pressurised to attain targets. They work under impersonal
relationships and tight controls. This creates greater work stress to
employees. On the other hand, a climate of warm and friendliness, scope for
participation in decision making, non financial motivation and flexibility are
encouraged under democratic leadership style. This relieves stress in the
employees. Therefore, employees working under authoritarian leadership
styles experience stress than employees working under democratic
leadership style.
vii) Organisational Life Cycle: Every organisation moves through four phases
of organisational life cycle. They are birth, growth, maturity and decline. In
each of these stages the structure and the design of organisation undergoes
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frequent changes. In addition, human beings are subject to metamorphosis to
adapt to the stages in the life cycle. In this process, employees are subject to
job stress. For instance in the initial stages of organisational birth, stress is
caused because of ambiguous policies and designs. In the growth stage,
employees experience stress due to failure to meet conflicting demands. At
the time of decline, stress is caused due to down sizing, retrenchment and
loss of financial rewards and changing organisational systems.
viii) Group Dynamics: Groups are omni present in organisations. Groups arise
out of inherent desire of human beings and spontaneous reactions of people.
In organisations both formal groups and informal groups exist. A formal
group exist in the form of committees, informal group exit among different
levels of organisation. Groups have a number of functional and
dysfunctional consequences. They provide social support and satisfaction,
which is helpful in relieving stress. At the same time, they become the
source of stress also. Lack of cohesiveness, lack of social support, lack of
recognition by the group and incompatible goals cause stress. Thus a number
of organisational factors cause stress in the individuals. Now let us learn
about the extra organisational factors.
TECHNIQUES OF MANAGING STRESS

Individual Management
Individuals assume automatic responsibility and look for ways and means of dealing
with their stress. Individuals are more concerned about their health. There is an
increasing rate of health clinics and health consciousness observed in recent times.
Following are some of the techniques which individuals can adopt for reducing stress :

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1) Time Management : Time management and stress are inversely related.
Improper and poor management of time are the root cause of a greater degree of
stress. Improper and inadequate utilisation of time cause anxiety.
The following principles of time management can help in combating stress.
• Identifying and listing of daily activities in a logical order.
• Arranging the activities of the day based on importance and urgency.
• Preparing logical schedule of activities.
• Analysing and understanding the daily cycle and nature of the job.
• Allocating time properly to various activities based on time demands.
• Delegating minor tasks to the subordinates in order to make use of the time
in a better manner.
• Discouraging unwanted visitors.
• Setting unfinished tasks on the top of list for tomorrow.
2) Physical Management : Management of stress relates to understanding one’s

own biological and body conditions. Examining hereditary characteristics habits
like smoking and drinking, life styles and body conditions help in
understanding one’s physiological conditions. Overcoming stress is possible
with managing physiological relaxation. Physical exercises greatly help in
relieving tension and stress. When body is conditioned with physical exercise,
oxygen is inhaled properly and blood circulation increases. This promotes
healthy secretions from glands and the supply of blood to all the parts of the
body keeps every organ active. Consequently, immunity to withstand stress
increases. Physical exercises could be reactive or proactive. Non competitive
physical exercises like walking, jogging, swimming, riding, aerobics and
playing games considerably increases heart capacity, provide mental diversion
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from work pressures and increases heart capacity to withstand stressful
situations. The chances of heart attack, adverse blood pressure and diabetics
reduce.
3) Psychological Management : Most of the stresses arise because of

psychological tensions. Therefore, it is suggested that managing psychological
activities lead to effective management of stress. The following are some of the
psychological management techniques.
i) Relaxation : Relaxation of mind through meditation, hypnosis and

biofeedback can effectively reduce mental tensions. Meditation
involves silently sitting on the ground taking deep inhalation and
chanting mantra. This takes the mind into deep relaxation. This
technique relaxes muscles and mind. It also brings significant changes
in heart rate, blood pressure, lung capacity and other biological organs
of the body. Transcendental Meditation, Soul management, Atma
yoga, Anthahakarana, Silence sitting posture, Shavasana, Bhavathetha
meditation and praying the God are some of the relaxation techniques
practiced for reducing stress.
ii) Behavioural Self-control: Stress also results from behavioural
disorders. Exercising proper control over behaviour in dealing with
others can bring down the chance of stress. Self-introspection brings
self-awareness of the individual. Similarly knowing the antecedents
and consequences of own behaviour enables behavioural self-control.
Stress can be relaxed by developing proper perception, practicing
good listening, maintaining calm and tension free mind empathy and
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positive attitude are some of the behavioural self control techniques.
iii) Cognitive Therapy: It is a technique of clinical psychology.

Cognitive therapy involves knowing ones’ own emotions to release
anxiety and tension. In this technique, people are made to understand
the reasons causing stress in them by the process of self-observation.
For example, if an employee develops a feeling that he is incompetent
to handle a new job, counselling is provided to develop a confidence
of competence to handle all the new jobs. Thus, with the help of
cognitive therapy, a positive impact is created for the mental
satisfaction. Cognitive therapy enables people to exercise self- control
for relaxing stress.
iv) Yogic Management : In recent times, yoga is an effective technique

of relieving stress. Yoga practice involves Asana, Pranayama, Mudra
and Kriya. Practicing a number of yogasana relaxes muscels, reduces
blood pressure, controls asthma, relieves neurological problems,
improves lung capacity, enhances proper flow of blood and helps
relax tensions and strains. Certain asanas which help stress relaxation
are pada hasthasana, vajra asana, sashanka asana, camel asana, lotus
asana, crocodile asana, sarvanga asana, shava asana .
v) Social Management: Developing good social networks involves

grouping of people who are good listeners and confidence builders.
This increases social support to individuals. Encouraging informal
groups to share information without inhibitions, developing free

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exchange of ideas, views and distasteful experiences, promoting
confidence of social support decrease tensions and stress. Social
clubs, recreation clubs, friendship clubs, informal gatherings, birthday
parties, and family are some of the social networks that increase social
support and reduce stress.
vi) Self-awareness Management: Self-awareness is similar to self-audit

or personal audit. Managers are required to understand themselves in
a free and fair manner. They should encourage open communication
and willing to listen to others especially on their deficiencies. Being
aware of self is a difficult task, as individuals are unprepared to accept
their defects. Self-awareness management involves three stages.
• Stage – I: Identify, understand and analyse one’s own skills, capacities,

limitations and defects.
• Stage – II: Encourage feed back from others viz., subordinates, peers,
superiors, friends, family members and other social associations. This
requires patient hearing without inhibitions.
• Stage -III: Develop self program to improve the skills, capacities to
overcome the limitations in a scientific way. Attend self-management-
training programs to develop the personality for all round development of
self.
6) Inter Personal Management: One of the most successful techniques of

stress management is developing inter personal understanding. Inter- personal
communication, inter personal attraction and inter personal knowledge improve
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understanding of others behaviour. Most of the organisational stresses are
created due to misunderstanding, organisational politics, setting one self-aloof
from others and encouraging unreliable comments. Thus, maintaining openness
of communication and valuing proper comment enable development of inter
personal understanding. Transactional Analysis, Johari Window and Grid
techniques help in the development of inter personal understanding and
consequent relief from stress.
 Organisational Management
In modern organisations, human resources are vital resources. Most of
the organisational stresses are caused by the structure and design of the
organisation, policies, programs and procedure of the administration and
due to managerial styles and strategies. Thus organisations are interested
in finding out the organisational stressors and remove them as far as
possible. Organisations adapt the following techniques of stress
management.
1) Selection and Placement Policy: Stress and personality characteristics of
employees are closely related. Thus selecting the employees by a proper
personality fit suitable to jobs minimise the chance of stress in the
individuals. For instance a sales person jobs requires extensive travelling
rather than experience. If a person having a poor attitude of travelling is
selected, he is likely to experience more stress in performing the job.
Therefore, proper recruitment and selection policy should be followed by
the organisation to reduce stress.
2) Goal Setting: Goal ambiguity, lack of proper perception of goals,
challenging goal and unattainable goals cause stress in individuals.
Therefore, organisations should follow a strategy of participation in goal
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setting to provide motivation, reduce frustration and ambiguity of goals.
Management by Objectives (MBO) is an appropriate technique of goal
setting which reduces stress.
3) Job Enrichment and Job Design: Job enrichment provides motivation to
the employees. It enriches job factors such as responsibility, recognition,
and opportunity for advancement, growth and self- esteem. Routine,
unstructured and poorly designed jobs cause greater stress in individuals.
Job redesign provides more responsibility, more meaningful work, more
autonomy and increased feed back. This provides greater control over
work activities and reduces dependence on others. Therefore, job
enrichment and job redesign provide an effective way of reducing stress.
4) Role Clarity: Organisational stress is associated with role ambiguity, role
overlap, lack of role clarity and role conflict. Proper role definition helps
employees understand their role in organisation and appraise
interpersonal roles. This reduces the chance of role conflict and increases
role compatibility. This eliminates stress in the individuals. Wherever
role conflict arises, counselling and negotiation can be used to resolve
interpersonal role conflict to avoid stressful situations.
5) Communication and Counselling: Barriers in communication are
potential moderators of organisational stress. In organisations formal
communication creates a number of problems of inter personal
misunderstandings. Thus redesigning the formal communication channels
can improve understanding and consequently reduce stress caused by
communication bottlenecks. Counselling is exchange of ideas and views
in a free and fair manner. It is intended to share problems of employees
and cope up with the stressful situation. Counselling consists of advice,
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reassurance, communication, and release of emotional tensions, clarified
thinking and reorientation. The techniques of counselling are non-
directive, participative and directive.
6) Carrier Planning and Development: Employees in general are free to
plan their careers. However, organisations also aim at employee
development. The employee development is aimed at the enrichment of
skills and the development of personality for undertaking future
managerial jobs. Stress is caused when employees’ expectations of their
career in organisation are not fulfilled and when employees get
promotion without the development of corresponding skills.
Organisations take less interest in career planning of the employees.
Designing appropriate career plans, education programs, development
programs and organisation development considerably reduce employee’s
stress.
7) Democratic Leadership: Democratic leaders create confidence in the
subordinates and allow participation in the decision making process.
They create an atmosphere of warmth, friendship, and supportive climate.
Under such climate employees feel satisfied, motivated and
psychologically committed to the achievement of objectives. In addition,
communication is open, conflicts are avoided and coordination improved.
This enables employees to relieve stress and promote healthy work.
8) Organisation Climate: Organisation design is the basic reason for job
stress. Bureaucratic, directive and ambiguous administration and poor
organisational climate leads to greater stress. A sound organisation
climate and culture characterised by sound administrative policy, good
organisational communication, participative culture and supportive
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climate ensure reduction of stress.
9) Wellness Programmes: Programmes that focus on employee’s physical
and mental condition organised by the management are known as
wellness programmes. As part of these programmes, workshops,
seminars and counselling sessions are conducted to help the employees
understand the dangers of smoking, alcoholism and drug abuse. They
promote a positive attitude for eating better stuff, fighting obesity, doing
regular physical exercise and developing positive personality. However,
these programmes are successful only when the employee himself takes
personal interest in his physical and mental health. Organisations act as
only a catalyst to promote programmes that facilitate reduction of stress.
10) Quality of Work Life: The concept has been increasingly recognised in
the recent years. This technique involves improving the working
conditions and other internal and external aspects of work life. In
addition, providing good housing facilities, living conditions, social and
recreational facilities, training and development of employees for overall
development of human resources in the organisation will develop quality
of work life. Stress is a multi-faceted phenomenon. The cause and effect
relationship in stress is difficult to obtain because it is a qualitative
psychological phenomenon. Moreover, individuals overlook the
symptoms of stress until they experience physiological break down.
Otherwise, they resort to a number of uncongenial life habits and addict
to them. Changing their attitudes and addiction is not an easy task.
Moreover, in large organisations functioning in a competitive and
dynamic environment, organisational redesign, job redesign and
administrative reorientation are more theoretical than practical. Even
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personal strategies sound theoretically good, but lack implementation.
Hence, stress management programmes must be implemented carefully
for the reduction of stress.
TIME MANAGEMENT
Time Management - Meaning and its Importance
It is rightly said “Time and Tide wait for none”. An individual should
understand the value of time for him to succeed in all aspects of life.
People who waste time are the ones who fail to create an identity of their
own.
What is Time Management ?
 Time Management refers to managing time effectively so that the right
time is allocated to the right activity.
 Effective time management allows individuals to assign specific time
slots to activities as per their importance.
 Time Management refers to making the best use of time as time is always
limited.
Ask yourself which activity is more important and how much time should be
allocated to the same? Know which work should be done earlier and
which can be done a little later.
Time Management plays a very important role not only in organizations but also in
our personal lives.
Time Management includes:
1) Effective Planning
2) Setting goals and objectives
3) Setting deadlines
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4) Delegation of responsibilities
5) Prioritizing activities as per their importance
6) Spending the right time on the right activity
 Effective Planning
Plan your day well in advance. Prepare a To Do List or a “TASK PLAN”.
Jot down the important activities that need to be done in a single day
against the time that should be allocated to each activity.
High Priority work should come on top followed by those which do not need
much of your importance at the moment. Complete pending tasks one by
one. Do not begin fresh work unless you have finished your previous
task. Tick the ones you have already completed. Ensure you finish the
tasks within the stipulated time frame.
 Setting Goals and Objectives
Working without goals and targets in an organization would be similar to a
situation where the captain of the ship loses his way in the sea. Yes, you
would be lost. Set targets for yourself and make sure they are realistic
ones and achievable.
 Setting Deadlines
Set deadlines for yourself and strive hard to complete tasks ahead of the
deadlines. Do not wait for your superiors to ask you everytime. Learn to
take ownership of work. One person who can best set the deadlines is you
yourself. Ask yourself how much time needs to be devoted to a particular
task and for how many days. Use a planner to mark the important dates
against the set deadlines.
 Delegation of Responsibilities
Learn to say “NO” at workplace. Don’t do everything on your own. There
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are other people as well. One should not accept something which he
knows is difficult for him.
The roles and responsibilities must be delegated as per interest and
specialization of employees for them to finish tasks within deadlines. A
person who does not have knowledge about something needs more time
than someone who knows the work well.
 Prioritizing Tasks
Prioritize the tasks as per their importance and urgency. Know the difference
between important and urgent work. Identify which tasks should be done
within a day, which all should be done within a month and so on. Tasks
which are most important should be done earlier.
 Spending the right time on right activity
Develop the habit of doing the right thing at the right time. Work done at the
wrong time is not of much use. Don’t waste a complete day on something
which can be done in an hour or so. Also keep some time separate for
your personal calls or checking updates on Facebook or Twitter. After all
human being is not a machine.
For Effective Time Management one needs to be:
Organized - Avoid keeping stacks of file and heaps of paper at your
workstation. Throw what all you don’t need. Put important documents in
folders. Keep the files in their respective drawers with labels on top of
each file. It saves time which goes on unnecessary searching.
Don’t misuse time - Do not kill time by loitering or gossiping around.
Concentrate on your work and finish assignments on time. Remember
your organization is not paying you for playing games on computer or
peeping into other’s cubicles. First complete your work and then do
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whatever you feel like doing. Don’t wait till the last moment.
Be Focussed - One needs to be focused for effective time management.
Develop the habit of using planners, organizers, table top calendars for better
time management. Set reminders on phones or your personal computers.
Time Management Techniques

Time management refers to the judicious use of time for achieving success in life.
Time Management helps an individual to make the best possible use of time. It is
essential for individuals to value time and allocate the right time to the right activity.
Set your Priorities. Know what all needs to be done on an urgent basis. Prepare a “TO
DO” List or a “Task Plan” to jot down tasks you need to complete against the time
slot assigned to each activity. High Priority Tasks must be written on top followed by
tasks which can be done a little later. Make sure you stick to your Task List.
Make sure you finish your assignments within the stipulated time frame. Tick the
tasks you have already finished. Treat yourself with a chocolate if you finish your
assignments ahead of deadlines.
Understand the difference between urgent and important work. Manage your work
well. Do not begin your day with something which is not so important and can be
done a little later. First finish off what all is urgent and important. Do not wait for
your Boss’s reminders.
Stay focused. Do not leave your work station if some urgent work needs to be done.
Going for strolls in the middle of an urgent work breaks continuity and an individual
tends to loose his focus. Individuals who kill time at work find it difficult to survive
workplace stress.
Do include time for your tea breaks, net surfing, personal calls and so on in your daily
schedule. It is important. Human being is not a machine who can work at a stretch for
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eight to nine hours. Assign half an hour to fourty five minutes to check updates on
social networking sites, call your friends or family or go for smoke breaks etc.
Set realistic and achievable targets for yourself. Know what you need to achieve and
in what duration? Do not lie to yourself. Assigning one hour to a task which you
yourself know would require much more time does not make sense.
Do not overburden yourself. Say a firm no to your boss if you feel you would not be
able to complete a certain assignment within the assigned deadline. Don’t worry, he
will not feel bad. Probably he can assign the same to any of your fellow workers.
Accept tasks which you are really confident about.
Be disciplined and punctual. Avoid taking unnecessary leaves from work unless there
is an emergency. Reach work on time as it helps you to plan your day better.
Keep things at their proper places. Files must be kept at their respective drawers.
Staple important documents and put them in a proper folder. Learn to be a little more
organized. It will save your time which goes on unnecessary searching.
Do not treat your organization as a mere source of money. Change your attitude.
Avoid playing games on computer or cell phones during office hours. It is
unprofessional. Do not work only when your boss is around. Taking ownership of
work pays you in the long run.
Develop the habit of using an organizer. It helps you plan things better. Keep a
notepad and a pen handy. Do not write contact numbers or email ids on loose papers.
You will waste half of your time searching them. Manage your emails. Create separate
folders for each client. Do not clutter your desktop.

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BARRIERS TO EFFECTIVE TIME MANAGEMENT

Time-management problems are the challenges people encounter when trying to
maximize their effectiveness in their career and personal life. Many people commonly
feel as if the time available for certain personal and professional tasks is somewhat
limited or that the demands on that time exceed what is available.
They might also experience a wide array of perceived obstacles to the effective use of
that limited time. Fortunately, it is possible to identify and address time-management
challenges to can help optimize your career experience.
Time-management challenges
If time management is an area of growth for you, it can be comforting to know that
other people have faced similar challenges as well. It can also help to learn how others
addressed those issues. To inspire your time-management development, here are some
common time-management issues and how to fix them:
1. Low motivation
Sometimes, finding the motivation to complete important tasks can be the first
obstacle to good time management. For example, you might have experienced a
situation when you have plenty of time to complete a particular task but you don't feel
MBA – I sem
like doing so, and so it's left undone. The effort may seem to exceed your energy level
on a given day, perhaps, or it might have to do with your enthusiasm level for a
specific task.
How to fix it: Finding motivation is a common challenge, and thankfully it is possible
to overcome this time-management challenge. Try identifying something about the
task you feel unmotivated about that does interest you, and focus on that part of the
project.
You might also identify ways your task will help you reach a different, yet related,
goal that is important to you. For example, if you must relocate many shelves of files
to make room for new ones, consider the exciting new projects that will be housed in
that newly-open space.
2. Procrastination habits
Procrastination is the common experience of putting a task off until there is little time
remaining before a deadline. People may procrastinate for a variety of reasons
including habit, perfectionism and unclear goals. The good news is, it is possible to
conquer procrastination and accomplish your goals effectively.
How to fix it: One way to address procrastination is to set a timer for a short period of
time and begin working, telling yourself that you can stop at the end of that time if
you no longer feel like working.
Many people find that their momentum continues long after that initial work period
and that they typically do not wish to procrastinate that task further. Breaking your
objectives down into a detailed schedule can help, as well, by providing intermittent
deadlines before the final one.
3. Too little time
Some people face the time-management challenge of too little time to complete their
goals. This may be the result of a multitude of necessary objectives, and those tasks
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may be equally important. This feeling may also have to do with a large quantity of
less-important and overwhelming tasks.
How to fix it: If you feel as if you have too many tasks to accomplish and too little
time to finish them, you might try prioritizing your to-do list and eliminating tasks that
don't have any real consequences if left undone. You may also try delegating tasks to
other individuals on your team who you trust.
4. Attempted multitasking
Multitasking can sometimes feel like an effective way to manage time. Often,
however, multitasking can make those tasks take longer than they normally would.
This is because multitasking involves switching between tasks rapidly, which can
overwhelm a person's decision-making processes. Multitasking can sometimes also
affect work quality because one task never gets your undivided attention.
How to fix it: If possible, try concentrating on one objective at a time. You may find
that this makes your work more effective and efficient, as well as higher quality. If
you are working in a situation that does not allow for single-tasking, such as serving
in a restaurant, try using lists or taking occasional breaks to relieve some of the mental
stress.
5. Overbooking
Taking on too many tasks can be a challenge for time management. Although it is
often easy to accept new tasks with enthusiasm, sometimes the reality of the time
needed to accomplish them exceeds the time available.
How to fix it: Try carefully considering your current workload before taking on new
optional assignments and tasks. You might ask for an estimate of the time required to
complete a job if it is on a freelance basis, for example, or evaluate how much time
you think it will take. If you are already overbooked, consider trying another time-
management strategy such as delegating or collaboration.
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6. Not enough rest
Sometimes, hard-working individuals sleep fewer hours per day or choose to avoid
breaks in hopes of having extra time to be more productive. Reducing or eliminating
time off may feel productive in the short term but it usually makes you less effective
due to the lack of rest. Productivity often increases with well-rested energy.
How to fix it: If you can, rest when you need to and are able. Try establishing a
consistent sleep schedule to ensure adequate rest at night, and be sure to consult with a
professional if you suspect sleep challenges that are medical in nature. Consider
building breaks into your day to refresh your energy.
7. Forgetting to delegate
Another time-management challenge you might face is knowing when to delegate.
Many professionals like to accomplish tasks independently. Sometimes, however, this
can become an issue with time management when there are too many tasks and not
enough time to complete them.
How to fix it: Consider delegating tasks to team members you trust. If there are
individuals who have more time in their schedule and are capable of completing the
work that needs to be done, you may find that asking them to step in can free you up
to accomplish fewer tasks with greater success.
If you're in a team member position, rather than one that can directly delegate,
consider collaborating with colleagues to enhance effective time management across
your team.
8. Lack of organization
Many people also find that messiness can impede their time management and
productivity. Staying organized is often an important element of good time
management because it helps you spend more of your time accomplishing objectives,
and less time switching between tasks or searching for items.
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How to fix it: Try keeping a to-do list to organize your tasks, or using a physical or
digital planner to organize your agenda. Consider reorganizing your physical space to
streamline your workflow. Clutter can sometimes impede productive time
management, so you may wish to spend some time each day tidying your workspace.
9. Multiple distractions
Distractions such as too much socialization, electronic devices and less-important
tasks can sometimes get in the way of strong time management in the workplace.
Many of these kinds of distractions are common enough that they are easily
overlooked, and it's possible to not even notice that they are detracting from your
productivity.
How to fix it: To increase focus and decrease distractions, try tailoring your
workspace to your own preferred mode of focus. Distraction-proof your workspace by
using indicators that you are working, such as a set of headphones or even closing
your door if it is appropriate for your company culture.
Consider placing your phone or other electronic devices across the room, silencing it
or turning it off completely if you have another way to receive essential information.
Try building structured breaks for these activities into your day.
10. Rigid planning
Over-rigid planning can sometimes be as much of a time-management challenge as
disorganization. Interruptions will likely arise throughout the day, even with the best
planning in place. This is a normal experience, and it is also common for it to provide
a time-management challenge.
How to fix it: Try being mindful of the value of flexibility when unavoidable
interruptions arise. Consider ways that you might be able to build those added tasks or
side projects into your overall objectives for the day.
For example, if you have a business luncheon across town and you are also tasked
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with dropping blueprints off with a contractor, consider exercising flexibility by
combining those tasks into one trip out of the office.
11. Trouble prioritizing
Knowing which tasks are most important and urgent can be a crucial time-
management skill. Different stakeholders may have expectations that differ from your
own understanding of how to prioritize tasks at work, and a full to-do list can
complicate this time-management challenge as well.
How to fix it: If prioritization is one of your time-management challenges, try using a
visual prioritization tool like a graphic organizer or chart. You might also try to
collaborate with a colleague or even refer to a trusted mentor to help decide which
tasks are most important for a given period of time.
12. Perfectionism
Attention to detail can be a valuable asset in the workplace. When prioritized out of
the bounds of moderation, however, perfectionism can interfere with productive time
management. This is because this habit can cause you to spend more time than
necessary on details that might not have a significant impact on the overall outcome of
your work.
How to fix it: If you find that perfectionism is interfering with your time management,
try integrating success measures into your to-do list. This way, you will have a
reminder of your intended outcomes that can help you remember to move on to the
next task when necessary.

Handout Ft106c - Organization Behaviour - All Units

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GRADUATE SCHOOL OF BUSINESS

An organization consists of people with different traits, personality, skills, qualities,

Compiled by Prof. ( Dr.) Shikha Agrawal

The concept of OB is based on two key elements namely −

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Factors Affecting Learning

Compiled by Prof. ( Dr.) Shikha Agrawal

Classical Conditioning Theory

Compiled by Prof. ( Dr.) Shikha Agrawal

Operant Conditioning Theory

Compiled by Prof. ( Dr.) Shikha Agrawal

Social Learning Theory

Compiled by Prof. ( Dr.) Shikha Agrawal

Cognitive Learning Theory

Personality trait is basically influenced by two major features −

Major Personality Attributes

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Alderfer's ERG theory

Acquired Needs Theory (mcclellan)

Two Factor theory (Herzberg)

Expectancy Theory (Vroom)

E (expectancy) = The person's perception that effort will result in performance. In

I (instrumentality) = The person's perception that performance will be

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Compiled by Prof. ( Dr.) Shikha Agrawal

Need and importance for a Group

Compiled by Prof. ( Dr.) Shikha Agrawal

Stages of development of group

• Control and Organization

Stages of Group Formation

Compiled by Prof. ( Dr.) Shikha Agrawal

Differences between Work Groups and Teams

Compiled by Prof. ( Dr.) Shikha Agrawal

Conflict can be defined as a mental struggle resulting from incompatible or opposing

Compiled by Prof. ( Dr.) Shikha Agrawal

Nature and Sources of Conflicts

Nature or Characteristics of Conflicts

Compiled by Prof. ( Dr.) Shikha Agrawal

Transitions In Conflict Thought

THE TRADITIONAL VIEW

THE HUMAN RELATIONS VIEW

THE INTERACTIONIST VIEW

Functional and Dysfunctional Conflicts

Compiled by Prof. ( Dr.) Shikha Agrawal

1. Functional Conflict: Positive Effects

2. Dysfunctional Conflict: Negative Effects

Preparation and Planning

RADPAC Model of Negotiation

Compiled by Prof. ( Dr.) Shikha Agrawal

 A leader possesses qualities to influence others.

Difference between Leadership and Management

Laissez-faire or Free Rein

Compiled by Prof. ( Dr.) Shikha Agrawal

Qualities of successful leader-

(b) Behavior Theory

A leader possesses qualities to influence others.