FUNDAMENTALS OF

ORGANISATION BEHAVIOR
UNIT- III
By: Dr. Saima
 Leadership

• Leadership can be defined as a process in which a person tries to influence a

set of individuals in the pursuit of achieving individual, group, and
organizational objectives.
• Effective leaders help groups of people to define their goals and find ways to
achieve them.
• The act of influencing a group toward the achievement of a vision or set of
goals.
 What kind of
boss/leader would
you want to work
with?
 Leadership and Management
• Leadership has more to do with the interpersonal aspects of the job, while management is more
concerned with planning, organizing, and controlling.

• Management is more scientific and formal than leadership. It is based on explicit set of tools and
techniques that are used in different situations. On the contrary, leadership involves having a vision of
where to take the organization from its present state and influence members to live up to that vision.

• Leadership requires voluntary cooperation and teamwork by means of influence, persuasion, and
charisma. Management relies on control as a mechanism to influence people.

• Leadership may produce a dramatic change such as bringing out an innovative product; management
is more likely to produce a predictable change.
• Leadership may result in transforming an organization. Management only maintains the status quo.

• In the light of the above differences, it can be concluded that a leader is an inspirational figure and the
manager is a bureaucrat caught up in his status quo.
 Trait Perspective of Leadership

• The term trait refers to a variety of individual attributes, including aspects of

personality, temperament, needs, motives, and values. Personality traits are relatively
stable disposition to behave in a particular way. Examples include self-confidence,
emotional maturity, emotional stability, energy level, and stress tolerance.
• Trait Theories consider personal qualities and characteristics that differentiate leaders
from non-leaders.
• The trait model of leadership is based on the characteristics of many leaders - both
successful and unsuccessful - and is used to predict leadership effectiveness. The
resulting lists of traits are then compared to those of potential leaders to assess their
likelihood of success or failure.
 Leadership Traits and Effectiveness

Some personality traits that are consistently associated with leadership are discussed here:
• Adaptability and flexibility: Effective leaders don't get stuck in a rut. They are able to think outside of the
box and adapt quickly to changing situations.
• Assertiveness: A great leader is able to be direct and assertive without coming off as overly pushy or
aggressive.
• Capacity to motivate people: A great leader knows how to inspire others and motivate them to do their
best.
• Courage and resolution: The best leaders are brave and committed to the goals of the group. They do not
hide from challenges.
• Creativity: Perhaps most importantly, great leaders not only possess their own creativity, but they are also
able to foster creativity among members of the group.5
• Decisiveness: A great leader is capable of making a decision and is confident in his or her choices.
• Eagerness to accept responsibility: Strong leaders take on responsibility and don't pass the blame on to
others. They stand by their success and take ownership of their mistakes.
• Emotional stability: In addition to being dependable overall, strong leaders are able to control their
emotions and avoid overreactions.
• Intelligence and action-oriented judgment: Great leaders and smart and make choices that move
the group forward.
• Need for achievement: Strong leaders have a need to succeed and help the group achieve goals.
They genuinely care about the success of the group and are committed to helping the group reach
these milestones.
• People skills: Excellent interpersonal skills are essential for leading effectively. Great leaders know
how to interact well with other leaders as well as with team members.
• Perseverance: Strong leaders stick with it, even when things get difficult or the group faces
significant obstacles.
• Self-confidence: Many of the best leaders are extremely self-assured. Because they are confident in
themselves, followers often begin to share this self-belief.
• Task competence: A great leader is skilled and capable. Members of the group are able to look to
the leader for an example of how things should be done.
• Trustworthiness: Group members need to be able to depend upon and trust the person leading
them.
• Understanding their followers and their needs: Effective leaders pay attention to group members
and genuinely care about helping them succeed. They want each person in the group to succeed and
play a role in moving the entire group forward.
 BIG FIVE TRAITS
• In examining personality traits, researchers have consistently found extraversion to be
important for several leadership outcomes. Despite being the strongest predictor of leader
emergence, extraversion also predicts several leadership behaviors or styles. For example,
extraverted leaders are more likely to use transformational leadership styles and
consideration behaviors. As such, they are likely to be considered more effective leaders,
although it is the agentic, bold, or assertive aspects of extraversion that account for this, not
necessarily the warm, sociable, affiliative aspects. So although extraversion can predict
effective leadership, the relationship may be due to unique facets of the trait.
• Although agreeableness and emotional stability are important to some aspects of
leadership (e.g., they predict follower satisfaction with the leader), openness to experience
appears to be less important as a trait, despite being a modest predictor of leader
effectiveness.
• Conscientiousness, on the other hand, appears to be important for several leadership
behaviors and outcomes. For example, conscientiousness predicts initiating structure
behaviors as well as consideration behaviors. Conscientiousness is also a moderate predictor
of leader effectiveness and the strongest leader trait predictor of group performance.
 Leadership Styles
1. Autocratic Style: Autocratic, or task-directed, leaders initiate structure,
provide the information, determine what is to be done, issue the rules,
promise rewards for competence, and threaten punishments for
disobedience.
2. Democratic Style: Democratic leaders solicit advice, opinions, information
from their followers, and share decision making with their followers.
3. Laissez-faire Style: Laissez-faire leaders give group members complete
freedom of action, provide them with material, and refrain from
participating except to answer questions when asked.
Pros and cons of autocratic leadership:
• Pros:
• Facilitates a clearly defined work structure.
• Quick decisions can be made.
• Right for inexperienced employees.
• Suitable for small-sized business organizations.

• Cons:
• No option for employee career development.
• Less employee motivation and morale.
• Chance of high turnover.
Pros and cons of democratic leadership:
• Pros:
• More accurate decisions can be made.
• Useful to solve complex problems.
• Facilitates innovation and creativity.
• Facilitates the option of succession planning.

• Cons:
• Potential of conflict.
• Decision-making can be time-consuming.
Pros and cons of laissez-faire leadership:
• Pros:
• Higher job satisfaction.
• Option for career advancement.
• Relief to the top manager.
• Suitable leadership style for highly educated and experienced employees.

• Cons:
• Potential of conflict.
• The potential of indiscipline among subordinates.
• The potential of lack of integration between individual goals and organizational goals.
• Misuse of authority.
 Basis Authoritative Style Democratic Style Laissez-Faire Style
Decision- Leader centralizes decision-making Leader consults with subordinates in
Leader delegates the entire
authority of decision-making to
making power. the decision-making process.
subordinates.
Full delegation of authority, allowing
Delegation of Little or no delegation of authority.
Moderate delegation of authority,
involving subordinates in the
subordinates to take all decisions
Authority decision-making process. independently without direction
from the leader.
Degree of Close supervision. Moderate supervision. Little or no supervision.
Supervision
Employees’ Low employee morale, as
subordinates have limited
High employee morale due to their Employee morale varies, but it may
participation and sense of ownership be low due to the lack of guidance
Morale involvement in decision-making. in decisions. and involvement from the leader.
Effective in both short and long-run The effectiveness may vary,
Effectiveness Effective in short-run decisions. decisions, fostering engagement and depending on the competency and
creativity within the team. autonomy of the team.

Approach to The leader makes use of a negative The leader makes use of a positive
approach (like penalties) to get work approach (like rewards) to get work The leader neither uses positive nor
Work done. done.
negative methods.

Suitable when subordinates are

Suitable when there is little or no Suitable when subordinates are highly competent, skilled, and
time for group decision-making or competent and experienced and can
Suitability when subordinates are incompetent participate in decision-making under
expert, capable of making decisions
independently without much
and inexperienced. the guidance of their leader.
direction from the leader.
Transactional and Transformational Leadership
• Transactional leadership is a leadership style focused on maintaining the existing
structures and processes within an organization. It operates on a system of rewards and
punishments, where leaders establish clear expectations and provide rewards or
corrective actions based on performance. Transactional leaders primarily use contingent
rewards, such as bonuses or recognition, to motivate employees and ensure task
completion. This leadership style is often effective in stable environments or situations
that require specific tasks to be accomplished efficiently.
• Transformational leadership is a leadership style that inspires and motivates followers to
achieve extraordinary results. It focuses on creating a shared vision, fostering trust, and
empowering employees to reach their full potential. Transformational leaders inspire
and influence their followers through charisma, emotional intelligence, and by
challenging existing norms. They encourage innovation, promote personal growth, and
create a positive organizational culture.
 Leadership Skills
A skill is an acquired talent that a person develops related to a specific task. Skills
change with training and experience and from one task to another. Leaders cannot be
trained to develop an ability or aptitude, but they can be trained for a new leadership
skill.
1. Administrative Skills: A good leader has the skill to organize work more effectively
and to make high-quality decisions.
2. Communication Skills: Leaders possessing good communication skills are able to
reach out to their subordinates with great ease.
3. Interpersonal Skills: They are also called “social skills” and include knowledge about
human behaviour and group processes; ability to understand the feelings, attitudes,
and motives of others; and ability to communicate clearly and persuasively.
4. Conceptual Skills: Conceptual, or cognitive, skills include inductive and deductive
reasoning, analytical ability, and logical thinking.
 Behavioral theories of leadership
• According to trait theory leadership is inherited but according to behavior
theory leadership can be learned.
• Behavioral theories of leadership imply we can train people to be leaders.
• The two most common theories regarding Behavioral Leadership Theories
are Michigan Leadership Studies and Ohio State Leadership Studies.
 Fiedler’s Contingency Model

• Fred Fiedler developed the first comprehensive contingency model for

leadership. The Fiedler contingency model proposes that group
performance depends on the proper match between the leader’s style and
the degree to which the situation gives the leader control.
• With the model, the individual’s leadership style is assumed to be
permanent.
• As a first step, the least preferred coworker (LPC) questionnaire identifies whether a
person is task or relationship oriented by asking respondents to think of all the coworkers
they ever had and describe the one they least enjoyed working with. If you describe this
person in favorable terms (a high LPC score), you are relationship oriented. If you see your
least-preferred coworker in unfavorable terms (a low LPC score), you are primarily
interested in productivity and are task oriented. After finding a score, a fit must be found
between the organizational situation and the leader’s style for leadership effectiveness to
be predicted.
• Three factors work together to determine how favorable a situation is to a leader. In order
of importance, they are
(1) leader-member relations—the degree of the group’s acceptance of the leader, their ability
to work well together, and members’ level of loyalty to the leader;
(2) task structure—the degree to which the task specifies a detailed, unambiguous goal and
how to achieve it; and
(3) position power—a leader’s direct ability to influence group members.
• The situation is most favorable for a leader when the relationship between the leader and
group members is good, when the task is highly structured, and when the leader’s position
power is strong (cell 1 in Exhibit 13.10). The least-favorable situation occurs under poor
leader-member relations, an unstructured task, and weak position power (cell 8).
 To read

• https://openstax.org/books/principles-management/pages/13-4-the-trait-ap
proach-to-leadership
• https://openstax.org/books/principles-management/pages/13-5-behavioral-
approaches-to-leadership
• https://openstax.org/books/principles-management/pages/13-6-situational-
contingency-approaches-to-leadership
 Group

• A group can be defined as a collection of two or more people who meet

regularly and influence one another over a period of time, perceive
themselves as a distinct entity distinguishable from others, share common
values, and strive for common objectives.
• Th e membership to some groups is mandatory whereas others are
undertaken voluntarily. Work groups become the major channel for
achieving organizational goals. Groups also satisfy personal needs for
friendship, self-esteem, and identity.
 Types of Groups
• The major classification is in the form of formal groups and informal groups.
1. Formal Groups A formal group is established by management and is expected to perform well-
defined tasks to achieve organizational objectives. At the organizational level, formal groups help
to accomplish complex, interdependent tasks and to create new ideas. In formal groups, the
behaviors members should engage in are stipulated by and directed toward organizational goals.
Formal groups are further classified into task groups and command groups.
a. Task group: It is a temporary formal group that is established to solve specific issues. The
example of a task group would include a curriculum revision committee in the university and a
disciplinary committee constituted to look into specific disciplinary issues in the organization.
Th e members of task groups do not have a reporting relationship, and the group comprises of
people from different departments who possess complementary skills in the area of expertise
required. As soon as the task is complete, the members disintegrate and revert to their original
groups or organizations.
b. Command group: It is a permanent group in the organization dictated by the structure of the
organization. A typical command group comprises of a supervisor exercising his authority over
a set of subordinates. Different departments like finance, sales, and human resources are
examples of command groups. Most organizational objectives are accomplished by command
groups.
2. Informal Groups: Informal groups grow out of the need for friendship, affiliation,
companionship, and communication between people. The membership of this group is not
defined by the organization, but it is dependent upon the common values and interests
shared by the employees . Three employees from different departments who regularly have
lunch or coffee together are an informal group. These types of interactions among
individuals, though informal, deeply affect their behavior and performance. At the
organizational level, informal groups aid in solidifying common social values and provide
guidelines for right behaviour. They also help to provide a sense of identity and access to
information. At the individual level, they satisfy the social and affiliation needs and may lead
to enhanced feelings of self-esteem and status. Some examples of informal groups found in
organizations are friendship groups and interest groups.
a. Friendship groups: Friendship groups are based on common characteristics such as age,
common values, and college affiliations. Effective managers try to maintain good
relationship with these groups as they have tremendous influence on their members.
b. Interest groups: These groups comprise of individuals who share a mutual interest and
group together to try to achieve their objectives. These groups may not have any
relationship with the formal task groups of the organization. For example, individuals
who come together to fight for a common cause such as smoking or alcoholism form an
interest group.
 Functions of a Group
• Task Functions Groups carry out certain task functions to achieve organizational goals.
These are:
• Handling complex tasks: When the task is too complex for an individual to perform alone,
perhaps because it requires competence and expertise from different areas, it requires the help
of a number of individuals working together.
• Liaison or coordinating function: Groups also serve to act as coordinating mechanism among
the members of their own group as well as with groups outside.
• Implementation of complex decisions: Implementation of complex decisions requires the
understanding and contribution of a large number of employees of the organization. A group
acts as a catalyst to implement such decisions.
• Generating new and creative ideas: Th e interaction between group members results in the
generation of a large number of new and creative ideas.
• Vehicle for training new employees: In a group context, it becomes easier for the new
member to get socialized and understand the norms of the group and the organization. As jobs
in organizations have become complex and interdependent, the role of groups cannot be
underestimated.
• Maintenance Functions: These functions are performed to take care of the
personal needs and expectations of the individual members. They include:
• Fulfilling the need for social interaction: Individuals have an innate need for
care, friendship, affiliation, and support. Groups help them fulfil these needs.
• Providing a sense of identity and self-esteem: If the group that one belongs
to in an organization has a high status, the individual members derive a sense
of identify and self-esteem from their membership.
• Solving personal problems: Group provide emotional support and help
individuals confront personal problems and crisis.
• Reducing anxiety and uncertainty: Groups help people to reduce their
anxiety and uncertainty by allowing individuals to share and discuss their
concerns with other members.
 Stages of Group Development
• Tuckman’s Model of Group Development
• A permanent group in its evolution has to pass through five distinct stages (Tuckman
1965). Each of these stages is identified with dominant task-related and maintenance
issues. In a temporary group, a fifth phase is also added. These phases are:
• 1. Forming: The first stage in group formation is the inclusion of members in a group for a
definite objective. Th e primary consideration during this stage is to focus on the task in
hand and the utilization of resources to complete it. Members are just trying to know each
other, to develop rapport. Most people are very cautious at this stage and each one is
looking for guidance about how to go ahead. Th e search for the powercentre or leader
also may begin at this stage.
• 2. Storming: As members receive clarity about the techniques of doing the job, there may
be disagreements about the process involved, the way resources are being used, and their
own lack of skills and abilities to do the job. Among the members themselves, there may
be personality clashes, ego hassles, friction in the interpersonal relationship, inability to
accept the leader’s power, thereby creating some degree of dissonance among the group
members. Members try to assert their own personal needs and requirements instead of
accepting group influence.
• 3. Norming: As the differences begin to resolve, members develop mutual understanding
and clarity with respect to the task in hand. Th ere is an open invitation to exchange feelings
and ideas which results in the acceptance of each other’s opinions. Cohesion also develops
at the social level. Members develop their own set of formal and informal norms (through
consensus) and try to abide by these norms. Th ere is an emphasis on harmony and mutual
support. They start identifying with their group and make a conscious eff ort to avoid or
handle conflict-producing situations.
• 4. Performing: As members develop norms for work and interpersonal relationship,
solutions to the problems begin to emerge and constructive attempts are made to
complete the job. Members relate with each other while performing the tasks with
flexibility. Since interpersonal differences have been handled well, the energy of the group
gets channelized in a positive direction, leading to effective and efficient performance.
• 5. Adjourning: Th is stage is more apparent in temporary groups, where the members have
to abandon their membership in the group once the tasks have been completed. Th is stage
creates a lot of mixed feelings in terms of excitement for being able to complete the task
effectively and melancholy for terminating the existence of membership in the group.
 Punctuated Equilibrium Model
• Another approach to group development has been given by Romanelli and
Tushman (1994). Th is model is characterized by the following stages:
• 1. Stage of activity: At this stage, there is a flurry of activity with the beginning of
deliberations. There is an attempt to change old practices and introduce new
ones.
• 2. Stage of inertia: Th e first stage is followed by a substantial period of inertia as
the group is trying to put into action the plans that were made in the earlier stage.
• 3. Stage of termination: The last stage of development is aimed at finishing the
tasks assigned, and this stage is again full of activities but in a defined direction.
This model combines the stages of forming and norming of Tuckman’s model.
Then there is a stage of low performance followed by storming leading to high
performance. The group formation finally ends at adjournment.
1. The first meeting sets the group’s direction.
2. The first phase of group activity is one of inertia and thus makes slower progress.
3. A transition takes place when the group has used up half its allotted time.
4. This transition initiates major changes.
5. A second phase of inertia follows the transition.
6. The group’s last meeting is characterized by markedly accelerated activity.
 Group Processes

• There are certain inherent processes existing within each group. After a group
has progressed through the stages of development, it is assumed that certain
stable patterns of relationships exist among its members. Bonds of intimacy
and interpersonal attractions have emerged and influential members have been
identified. Appropriate behaviours for individual members have been
established, and these result in creating a definite structure for the group with
certain important processes which also characterize the “dynamics” within
groups. Some of the important dynamics of the group are discussed in this
section:
 Group Norms

• Groups develop common expectations called norms to reinforce the behaviour of people
and prevent dysfunctional behaviours. Social norms regulate the relationship between
individuals in groups; in fact, they are a guide to behaviour on a number of issues ranging
from how tasks are done and level of output to appropriate level of tardiness.
• Norms are defined as a set of expectations about appropriate individual and group
behaviour commonly agreed on by its members.
• They are established over time for behaviours that have significant impact on a group,
like facilitating its survival, increasing predictability of member behaviours, ensuring
member satisfaction, expressing values important to the group’s identity, and
preventing embarrassing interpersonal problem.
 Types of norms

• Formal Norms: Formal norms exist as written rules and procedures for all
employees to adhere to.
• Informal Norms: Informal norms develop as a result of the members’ own
behaviours and experiences which help or hinder their performance and
satisfaction.
 Characteristics of Norms
• They are acceptable to the majority of the members of the group.
• The focal point of the norm is the group behaviour as compared to the feelings and
attention of individual members.
• The tolerance of deviation from the norms varies to a great degree among the members of
the group.
• The norms facilitate the process of management of the group.
• Th e process of evolution of norms is rather slow and gradual and the same is true about
changing the norms.
• Sometimes, the conformity to norms is dependent upon the individual’s status within the
group. Some members of the group who have a higher status when compared to the other
members of the group are given the leverage to deviate.
• Compliance with the norms results in an accepted level of rewards; similarly,
noncompliance results in punishment.
 Functions of Norms

• Norms provide a reflection of the nature of the group and also its central
values to outsiders.
• Norms make the expected behaviour of the members more explicit, therefore,
leading to the anticipation of members’ behaviours. This results in a high level of
clarity and smoother functioning of the group.
• Norms help groups to survive especially in instances of deviancy. When the
group rejects the deviant behaviour of some members, it may make other
members come closer to each other to sustain and support each other.
 Group Roles

• Each member plays a particular role in a group, and the way employees perceive
and perform their role in a group has an influence on how the group functions.
• A role is defined as a set of recurring behaviour that is expected from a member
by others in a group. Some roles performed by group members are functional as
they guide and propel the group towards achieving their objectives.
• Some roles which are derived out of the personal needs of individuals are
dysfunctional in nature and block the group from achieving its efficiency and
effectiveness
 Different roles

• Task Roles: Task roles directly help the group to achieve its goals and objectives and are
focused towards that.
• Maintenance Roles: Maintenance roles are geared towards establishing and maintaining
good interpersonal relations.
• Personal Roles: Personal roles are based on individual needs and are generally detrimental to
group effectiveness.
• Expected Role: This is an unwritten agreement that exists between the employer and the
employees, and it expresses itself in terms of what management expects from the staff and
vice versa.
• Perceived Role: Perceived role includes the activities that the role incumbent believes are
necessary to fulfil the expected role.
• Enacted Role: This is a representation of how a person actually behaves in a given situation.
 Issues with roles
• Role ambiguity: When people are uncertain about their duties, responsibilities, and authority, it
causes role ambiguity. It may be because of unclear directions about the expected role, inability to
obtain clarity about the perceived role or difficulty in converting the ideas into real actions. In all
these situations, the result is conflict, confusion, and lowered levels of performance.
• Role conflict: Role conflict arises when an individual’s performance of one role is made difficult by
the performance of another role. For example, an individual may experience role conflict when his
role as senior executive affects his role as a spouse or parent. Th ere are different types of role
conflict including:
• Person–role conflict: Th is conflict arises when there is a conflict between the personal values and
beliefs of the person and the demands of the organization. For example, if an individual believes in
maintaining his integrity at all cost but the organization or the group expects him to compromise on
some of his values, it creates intrarole conflict.
a. Interrole conflict: This conflict is because of the incompatible expectations of the two roles that
the individual is expected to play. For example, a clash between his role as a manager and his role
as a friend of an individual in the organization.
b. Intrasender conflict: This results because of contradictory messages sent by the source to reach
the receiver.
c. Role overload: Role overload arises when an individual is overloaded with job responsibilities that
she is not capable of performing. In such cases, it is important to prioritize the various activities in
order to handle them at the acceptable level
 Group Cohesiveness

• The commitment of members to a group and the strength of their desire to remain in the
group constitutes a group’s cohesiveness. Group cohesion is the “interpersonal glue” that
makes the members of a group stick together. Group cohesion can enhance job satisfaction
for members and improve organisational productivity. Highly cohesive groups at work may
not have many interpersonal exchanges away from the workplace. However, they are able to
control and manage their membership better than work groups low in cohesion. This is due
to the strong motivation in highly cohesive groups to maintain good, close relationships with
other members.
• In situations of high levels of agreement among group members with regard to values and
beliefs, cohesiveness is likely to exist in the group.
 Sources of Group Cohesiveness
• Similarity in attitude and goals: People with similar attitudes and goals are assumed
to find each other’s company comfortable.
• Successful attainment of the goal: This results in generating positive feelings among
members.
• Size: Smaller groups tend to create conditions for advancement of cohesiveness.
• Charismatic leader: If the group has a leader who is charismatic, cohesiveness is likely
to be high.
• Threats: The cohesiveness of the group is expected to improve in situations of
external competition or threats.
• Membership to highstatus group: Membership to high-status groups are valued by
the members and increases cohesiveness.
• Rewards: Incentives based on group performance cultivate a group-centred
perspective.
• Gender: Women are thought to be more cooperative and less competitive with
people whom they see as friends or team mates.
 Factors Affecting Cohesiveness:

Individuals tend to consider a group attractive if it meets the following conditions:

1. The group’s goals are clear and compatible with members’ goals.
2. The group has a charismatic leader.
3. The group has a reputation for successfully accomplishing its task.
4. The group is small enough that members can air their opinions and have them
evaluated.
5. The members support one another and help each other overcome barriers to
growth and development.
 Consequences of Group Cohesiveness

• • Group cohesiveness and productivity: Highly cohesive groups are more

effective in meeting their objectives than groups low in cohesion.
• • Group cohesiveness and satisfaction: Cohesive groups generally have a
higher reputation in the eyes of their members because of the high
premium they place on the successful completion of the task.
• • Group cohesiveness and growth: In a highly cohesive group, members
learn from each other and they take pride in the success of the group.