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Organisational Behaviour

This book is a part of the course by Jaipur National University, Jaipur.This book contains the course content for Organisational Behaviour.

JNU, JaipurFirst Edition 2013

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JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the content whenever the need arises, and to vary it at any time without prior notice.

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Index

I. Content .................................................................... II

II. List of Figures ..................................................... VII

III. List of Tables ................................................... VIII

IV. Abbreviations .......................................................IX

V. Case Study ............................................................. 97

VI. Bibliography ...................................................... 100

VII. Self Assessment Answers ................................ 103

Book at a Glance

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Contents

Chapter I ....................................................................................................................................................... 1Organisational Behaviour ........................................................................................................................... 1Aim ................................................................................................................................................................ 1Objectives ...................................................................................................................................................... 1Learning outcome .......................................................................................................................................... 11.1 Introduction .............................................................................................................................................. 2 1.1.1 Classifications of Organisations .............................................................................................. 2 1.1.2 Factors Influencing an Organisation ........................................................................................ 21.2 Organisational Behaviour ........................................................................................................................ 2 1.2.1 Fundamental Concepts in Organisational Behaviour .............................................................. 31.3 Importance of Organisational Behaviour for Managers .......................................................................... 31.4 Behaviour Model for Organisational Efficiency ...................................................................................... 41.5 Organisational Components that Need to be Managed People ................................................................ 41.6 Contemporary Organisational Behaviour ................................................................................................ 6 1.6.1 Characteristics of the Field ...................................................................................................... 6 1.6.2 An Interdisciplinary Focus ....................................................................................................... 6 1.6.3 A Descriptive Nature ................................................................................................................ 71.7 Contextual Perspectives on Organisational Behaviour ............................................................................ 7 1.7.1 Systems and Contingency Perspectives ................................................................................... 7 1.7.2 The Systems Perspective ......................................................................................................... 7 1.7.3 The Contingency Perspective ................................................................................................. 81.8 Interactionalism ........................................................................................................................................ 8Summary ....................................................................................................................................................... 9References ..................................................................................................................................................... 9Recommended Reading ............................................................................................................................... 9Self Assessment ........................................................................................................................................... 10

Chapter II ................................................................................................................................................... 12Approaches and Models of Organisational Behaviour ........................................................................... 12Aim .............................................................................................................................................................. 12Objectives .................................................................................................................................................... 12Learning outcome ........................................................................................................................................ 122.1 Introduction ............................................................................................................................................ 132.2 Some of the Important Approaches ........................................................................................................ 13 2.2.1The Inter-Disciplinary Approach ............................................................................................ 13 2.2.2 The Human Resources Approach........................................................................................... 13 2.2.3 The Systems Approach .......................................................................................................... 13 2.2.4 The Contingency Approach ................................................................................................... 132.3 Models of Organisational Behaviour ..................................................................................................... 13 2.3.1 Two Sources of Model of Organisational Behaviour ............................................................. 15 2.3.2 Goals ...................................................................................................................................... 152.4 Managerial Functions ............................................................................................................................. 152.5 Inter-Relationship between Personal Life and Work Life ...................................................................... 15 2.5.1 Managerial Roles ................................................................................................................... 15 2.5.2 Managing for Effectiveness ................................................................................................... 162.6 Group and Team-Level Outcomes ......................................................................................................... 172.7 Organisation-Level Outcomes ............................................................................................................... 17Summary ..................................................................................................................................................... 18References ................................................................................................................................................... 18Recommended Reading ............................................................................................................................. 18Self Assessment ........................................................................................................................................... 19

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Chapter III .................................................................................................................................................. 21Organisational Design and Culture .......................................................................................................... 21Aim .............................................................................................................................................................. 21Objectives .................................................................................................................................................... 21Learning outcome ........................................................................................................................................ 213.1 Introduction ............................................................................................................................................ 223.2 Organisational Design ............................................................................................................................ 23 3.2.1 Dimensions of Organisational Design ................................................................................... 23 3.2.2 Determinants of Organisational Design ................................................................................. 23 3.2.3 Elements of Organisational Design ....................................................................................... 233.3 Centralisation v/s Decentralisation ........................................................................................................ 24 3.3.1 Factors Influencing Organisational Redesign ........................................................................ 243.4 Organisational Structure ........................................................................................................................ 24 3.4.1 Structural Dimensions of Organisations ................................................................................ 24 3.4.2 Types of Organisational Structure .......................................................................................... 253.5 Organisational Culture ........................................................................................................................... 27 3.5.1 Definitions ............................................................................................................................. 27 3.5.2 Indicators of Organisational Culture ...................................................................................... 27 3.5.3 Projection of Organisational Culture ..................................................................................... 28 3.5.4 Characteristics of Organisational Culture .............................................................................. 28 3.5.5 Factors Affecting Organisational Culture .............................................................................. 28 3.5.6 Assessing Organisational Culture .......................................................................................... 29 3.5.7 Changing Organisational Culture .......................................................................................... 293.6 Organisational Design: Combining the Structural Elements of Organisations ...................................... 293.7 Strategic Alliances: A Continuum of Inter-organisational Relationships .............................................. 30Summary ..................................................................................................................................................... 32References ................................................................................................................................................... 32Recommended Reading ............................................................................................................................. 32Self Assessment ........................................................................................................................................... 33

Chapter IV .................................................................................................................................................. 35Perceptions, Values and Attitudes ............................................................................................................ 35Aim .............................................................................................................................................................. 35Objectives .................................................................................................................................................... 35Learning outcome ........................................................................................................................................ 354.1 Introduction ............................................................................................................................................ 36 4.1.1 Process of Perception ............................................................................................................. 37 4.1.2 Factors Affecting Perception.................................................................................................. 37 4.1.3 Developing Perceptual Skills: Suggestions for developing perceptual skills ........................ 38 4.1.4 Rules of Perception and Personality ...................................................................................... 394.2 Value....................................................................................................................................................... 39 4.2.1 Sources of Values ................................................................................................................... 39 4.2.2 Manifestations of Values ........................................................................................................ 39 4.2.3 Types of Values ...................................................................................................................... 40 4.2.4 Classifications of Values ........................................................................................................ 414.3 Attitude ................................................................................................................................................... 41 4.3.1 Theories of Attitude ............................................................................................................... 41 4.3.2 Components of Attitude ......................................................................................................... 42 4.3.3 Significance of Attitude ......................................................................................................... 42Summary ..................................................................................................................................................... 44References ................................................................................................................................................... 44Recommended Reading ............................................................................................................................. 44Self Assessment ........................................................................................................................................... 45

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Chapter V .................................................................................................................................................... 47Personality, Morale and Motivation ......................................................................................................... 47Aim .............................................................................................................................................................. 47Objectives .................................................................................................................................................... 47Learning outcome ........................................................................................................................................ 475.1 Introduction ............................................................................................................................................ 485.2 Determinants of Personality ................................................................................................................... 48 5.2.1 Personality Traits (Cattell’s Traits Test) ................................................................................. 49 5.2.2 Types of Personality ............................................................................................................... 50 5.2.3 Personality and Organisational Behaviour............................................................................. 505.3 Morale and Motivation .......................................................................................................................... 515.4 Motivation .............................................................................................................................................. 51 5.4.1 Mechanism of Motivation ...................................................................................................... 52 5.4.2 Motivation and Frustration .................................................................................................... 52 5.4.3 Basic Theories of Motivation................................................................................................. 52 5.4.3.1 Abraham Maslow’s Theory ..................................................................................... 53 5.4.3.2 Fredrick Herzberg’s Two Factor Theory ................................................................. 53 5.4.3.3 David McClelland’s Theory .................................................................................... 55 5.4.3.4 Douglas McGregor’s Theory................................................................................... 555.5 Co-operation: Providing Mutual Assistance .......................................................................................... 565.6 Co-operation within Organisations ........................................................................................................ 56 5.6.1 The Reciprocity Principle ...................................................................................................... 56 5.6.2 Trust: Believing in Others ...................................................................................................... 56 5.6.3 Personal Orientation .............................................................................................................. 575.7 Organisational Reward Systems ............................................................................................................ 575.8 Co-operation between Organisations ..................................................................................................... 57Summary ..................................................................................................................................................... 58References ................................................................................................................................................... 58Recommended Reading ............................................................................................................................. 58Self Assessment ........................................................................................................................................... 59

Chapter VI .................................................................................................................................................. 61Group Dynamics and Conflict Management ........................................................................................... 61Aim .............................................................................................................................................................. 61Objectives .................................................................................................................................................... 61Learning outcome ........................................................................................................................................ 616.1 Interpersonal Relationships .................................................................................................................... 62 6.1.1 Approaches to Inter-Personal Relationships .......................................................................... 62 6.1.2 Factors Influencing Inter-Personal Relationships .................................................................. 626.2 Group ..................................................................................................................................................... 63 6.2.1 Reasons for Joining a Group, Characteristics of a Group, Functions of Groups ................... 63 6.2.2 Advantages and Disadvantages of Groups ............................................................................. 63 6.2.3 Stages of Group Development ............................................................................................... 646.3 Group Dynamics .................................................................................................................................... 64 6.3.1 Factors of Group Dynamics ................................................................................................... 646.4 Conflict Management ............................................................................................................................. 64 6.4.1 Sources of Conflict, Factors Involved in Conflict, Types of Conflicts .................................. 65 6.4.2 Two Views of Conflict ........................................................................................................... 65 6.4.3 Functional Conflict (wanted/constructive) ............................................................................ 65 6.4.4 Dysfunctional Conflict (unwanted/destructive) ..................................................................... 66 6.4.5 Conflict Management ............................................................................................................ 66 6.4.6 Resolving Conflicts ................................................................................................................ 66 6.4.7 Conflict Resolving Outcomes ................................................................................................ 67

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6.5 Group Development over Time: The Five-Stage Model ....................................................................... 686.6 Social Loafing: “Free Riding” When Working with Others .................................................................. 68Summary ..................................................................................................................................................... 69References ................................................................................................................................................... 69Recommended Reading ............................................................................................................................. 69Self Assessment ........................................................................................................................................... 70

Chapter VII ............................................................................................................................................... 72Leadership .................................................................................................................................................. 72Aim .............................................................................................................................................................. 72Objectives .................................................................................................................................................... 72Learning outcome ........................................................................................................................................ 727.1 Leadership .............................................................................................................................................. 73 7.1.1 Leadership in Business Organisations ................................................................................... 73 7.1.2 Evolution of Leadership ......................................................................................................... 737.2 Theories of Leadership........................................................................................................................... 74 7.2.1 Traits Theory (Ordway Tead and Chester Bernard) ............................................................... 74 7.2.2 Behavioural Theories ............................................................................................................. 74 7.2.3 Rensis Likert’s 4- system Approach ...................................................................................... 76 7.2.4 The Situational Theory .......................................................................................................... 77 7.2.5 Contingency Theories ............................................................................................................ 777.3 Styles of Leadership ............................................................................................................................... 77 7.3.1 Autocratic Leadership ............................................................................................................ 78 7.3.2 Democratic Leadership .......................................................................................................... 78 7.3.3 Laissez- Faire Leadership ...................................................................................................... 797.4 Functions of Leaderships ....................................................................................................................... 797.5 Team Building ........................................................................................................................................ 80 7.5.1 Team Building ........................................................................................................................ 80 7.5.2 The Process of Team Building following steps are the part of team building ....................... 80 7.5.3 Characteristics, Values and Suggestions for Effective Team ................................................. 817.6 Path-Goal Theory: Leaders as Guides to Valued Goals ......................................................................... 817.7 Charismatic Leaders: That “Something Special”................................................................................... 82Summary ..................................................................................................................................................... 83References ................................................................................................................................................... 83Recommended Reading ............................................................................................................................. 83Self Assessment ........................................................................................................................................... 84

Chapter VIII ............................................................................................................................................... 86Stress Management .................................................................................................................................... 86Aim .............................................................................................................................................................. 86Objectives .................................................................................................................................................... 86Learning outcome ........................................................................................................................................ 868.1 Introduction ............................................................................................................................................ 878.2 Manifestations of Stress ......................................................................................................................... 87 8.2.1 Positive Manifestations .......................................................................................................... 87 8.2.2 Negative Manifestations ........................................................................................................ 878.3 Causes of Stress ..................................................................................................................................... 87 8.3.1 External Demands / Expectations .......................................................................................... 87 8.3.2 Personal Capacities ................................................................................................................ 888.4 Sources of Stress .................................................................................................................................... 888.5 Consequences of Stress .......................................................................................................................... 89 8.5.1 Physiological Consequences .................................................................................................. 898.6 Stress Management ................................................................................................................................ 90 8.6.1 Process of Stress Management .............................................................................................. 91 8.6.2 Strategies for Coping with Stress ........................................................................................... 91

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8.7 Innovation Management ........................................................................................................................ 92Summary ..................................................................................................................................................... 94References ................................................................................................................................................... 94Recommended Reading ............................................................................................................................. 94Self Assessment ........................................................................................................................................... 95

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List of Figures

Fig. 1.1 Universal versus contingency approaches ........................................................................................ 8Fig. 1.2 The interactionist perspective on behaviour in organisations ........................................................... 8Fig. 2.1 Elements of organisational behaviour ............................................................................................ 16Fig. 3.1 Line organisational structure .......................................................................................................... 25Fig. 3.2 Functional organisational structure................................................................................................. 26Fig. 3.3 Line and staff organisational structure ........................................................................................... 26Fig. 3.4 Matrix Organisational structure ...................................................................................................... 27Fig. 3.5 Continuum of inter-organisational relationships ............................................................................ 30Fig. 4.1 Diagrammatic representation of perception ................................................................................... 36Fig. 4.2 Sources of values ............................................................................................................................ 39Fig. 4.3 Types of values ............................................................................................................................... 40Fig. 4.4 Components of Attitude .................................................................................................................. 42Fig. 5.1 Determinants of personality- biological factors ............................................................................. 48Fig. 5.2 Determinants of personality-family factors .................................................................................... 49Fig. 5.3 Indicators, determinants and suggestions for morale ..................................................................... 51Fig. 5.4 Mechanism of motivation ............................................................................................................... 52Fig. 5.5 Maslow’s hierarchy of needs .......................................................................................................... 53Fig. 5.6 David McClelland’s theory ............................................................................................................. 55Fig. 6.1 Factors influencing inter-personal relationships ............................................................................. 62Fig. 6.2 Reasons for joining a group, characteristics of a group, functions of groups ................................ 63Fig. 6.3 Stages of group development ......................................................................................................... 64Fig. 6.4 Sources of conflict, factors involved in conflict, types of conflicts ............................................... 65Fig. 6.5 Johari window................................................................................................................................. 67Fig. 7.1 Leadership evolution ...................................................................................................................... 73Fig. 7.2 Features, strengths, weaknesses of Trait’s theory ........................................................................... 74Fig. 7.3 Two dimensional model .................................................................................................................. 75Fig. 7.4 Rensis Likert’s 4-systems approach ............................................................................................... 76Fig. 7.5 Situational theory ............................................................................................................................ 77Fig. 7.6 Contingency theories ...................................................................................................................... 77Fig. 7.7 Sub classifications, merits, demerits of autocratic leadership ........................................................ 78Fig. 7.8 Functions of leaderships ................................................................................................................. 79Fig. 7.9 Objectives, pre-requisites for team building ................................................................................... 80Fig. 7.10 Process of team building ............................................................................................................... 80Fig. 7.11 Characteristics, values and suggestions for effective team ........................................................... 81Fig. 8.1 Sources of stress ............................................................................................................................. 88Fig. 8.2 Physiological consequences of stress ............................................................................................. 89Fig. 8.3 Psychological consequences of stress ............................................................................................. 90Fig. 8.4 Process of stress management ........................................................................................................ 91Fig. 8.5 Individual strategies ........................................................................................................................ 91Fig. 8.6 Organisational strategies ................................................................................................................. 92

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List of Tables

Table 2.1 Tabular representation of models ................................................................................................. 14Table 3.1 Centralisation v/s Decentralisation .............................................................................................. 24Table 4.1 Internal factors ............................................................................................................................. 38Table 4.2 External factors ............................................................................................................................ 38Table 4.3 Theories of attitude ...................................................................................................................... 41Table 5.1 Two types of personalities, Type A and Type B ........................................................................... 50Table 5.2 Motivating factors and maintenance factors ................................................................................ 54Table 5.3 Differences between Maslow’s and Herzberg’s theory ............................................................... 54Table 5.4 Theory X and Y ............................................................................................................................ 56Table 6.1 Advantages and disadvantages of groups ..................................................................................... 63Table 6.2 Views on conflict .......................................................................................................................... 65Table 7.1 Merits and demerits of democratic leadership ............................................................................. 78Table 7.2 Merits and demerits of Laissez- Faire Leadership ....................................................................... 79

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Abbreviations

CEO - ChiefExecutiveOfficerMRI - Magnetic Resonance ImagingOCB - Organisational Citizenship BehaviornAch - Need for AchievementnAff - NeedforAffiliationnPow - Need for Power

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Chapter I


Aim

The aim of this chapter is to:

definetheconceptoforganisation•

introduce the basics of organisational behaviour•

explain the importance of organisational behaviour•

Objectives

The objectives of this chapter are to:

classify organisation•

describethefactorsinfluencinganorganisation•

explain the fundamental concepts of organisational behaviour•

Learning outcome

At the end of this chapter, you will be able to:

defineorganisationalbehaviour•

identify the concepts of organisational behaviour•

understand the importance of organisational culture•


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1.1 IntroductionAn organisation is a man made system. A large group of people traveling in a bus, or watching a movie do not form an organisation. An organisation requires people with purpose, goals and objectives. An organisation is a group of people working together to achieve the common organisational goal (viz., production of goods or service) with the help of people, machines and materials. Examples of an organisation are family, university, bank, Municipal Corporation, government, army, etc.

1.1.1 Classifications of Organisations

Industrial sector v/s Agricultural sector•Public Sector v/s Private Sector•Joint Sector v/s Co-operative Sector•Capital intensive•Labour intensive•Public limited•Private limited•Manufacturing sector•Service Sector•Large Scale•Small-Scale etc•

1.1.2 Factors Influencing an Organisation

People•Size•Technology•Environment•Management•

1.2 Organisational BehaviourStudy shows that an individual spends maximum time of his life in the organisation than the time he spends on other activities.

The subject of organisational behaviour deals with that part of life, which is spent working. It is also called ‘on-the- job’ life. Interestingly our ‘off-the-job’ life is inter related and inter dependent on “on-the-job’ life and vice-versa.

DefinitionsKeith Davis: • A study of human behaviour at work.Fred Luthans: • An understanding, prediction and control of human behaviour in the organisation.Stephen Robbins: • A study that investigates the impact, individuals, groups and structures have on human behaviour within the organisation.S. K. Kapur: • As a systematic study of actions and reactions of people working in an organisation in order to improve the overall organisational performance.Talya Bauer: • As the systematic study and application of knowledge about how individuals and groups act within the organisations where they work.

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1.2.1 Fundamental Concepts in Organisational BehaviourAsperdefinitions,studyofhumanbehaviourisaveryimportantpartoforganisationalbehaviour.Itisessentialfor modern managers to understand and predict human psychology in terms of behaviour. Thus, it is essential to understand the organisational culture, which is formed by the organisational behaviour of the people over a long period of time.

When new employees enter organisations, their stable or transient characteristics affect how they behave and perform. Therefore, it is important to understand individual characteristics that matter for employee behaviours at work. Important concepts of organisational behaviour are as follows:Every individual is differentEvery person is unique. Therefore, each person should be treated separately while managing people. A uniform management style will not be applicable to all employees.

Every individual is a complete personEach individual has his/her own likes-dislikes, opinions, views, attitude, knowledge, etc. Since the employee spends more time in the organisations they work, they are expected to be happy on-the –job as well as off-the–job.

Human behaviour has cause-effect relationshipIt is necessary for managers to understand the beliefs and faiths of the people and also the cause-effect relationship behind the behaviour, if they want to be effective managers.

Every individual has self – esteemPeople are different from machines and materials. They have self-respect and prestige. They expect their due respect in day-today activities.

An organisation is a social systemThe organisational behaviour of people depends upon their social status, social roles and social groups. As a result, withineveryformalorganisation,thereexistsaninformalorganisation,whichinfluencestheformalorganisationto a large extent.

Mutual interests are inter-dependentAs organisation needs people, people too need the organisation to achieve their respective goals. There is interdependence of interests. It is necessary that these are ‘complementary’ and not ‘contradictory’.

A total view of organisationWhen all the above aspects of organisational behaviour are taken in to consideration we can have a total view of the organisation. This helps the managers understand human behaviour in the organisation, which results in the necessary co-ordination between organisation, management and employees.

1.3 Importance of Organisational Behaviour for ManagersIn the modern world, organisations are becoming increasingly complex with rapidly changing technology. As a result, organisations are demanding more from their employees. Employees are called ‘Human Resources’ because they are not commodities. Managements have become aware that they have to treat their employees as human beings and not as machines or materials. Therefore understanding the ‘Organisational Behaviour’ of their employees is extremely important for the managers of tomorrow.

Although the importance of organisational behaviour may be clear, we should still take a few moments to emphasise certain points. People are born and educated in organisations, acquire most of their material possessions from organisations, and die as members of organisations.

Many of our activities are regulated by organisations called governments. And most adults spend the better part of theirlivesworkinginorganisations.Becauseorganisationsinfluenceourlivessopowerfully,wehaveeveryreasonto be concerned about how and why those organisations function. In our relationships with organisations, we may adopt any one of several roles or identities.


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1.4 Behaviour Model for Organisational EfficiencyOrganisational behaviour is a study and application of managerial skills and knowledge to people in the organisation toinvestigateindividualandgroupbehaviour.Variousconceptsandmodelsinthefieldoforganisationalbehaviourattempt to identify, not only the human behaviour but also modify their attitude and promote skills so that they can actmoreeffectively.Thisisdonescientifically;therefore,organisationalbehaviourfieldisascientificdiscipline.The knowledge and models are practically applied to workers, groups and organisational structure that provide tools forimprovedbehaviouranddynamicsofrelationship.Thefieldoforganisationalbehaviouralsoprovidesvarioussystems and models for international relationship that are applied to organisations.

Leaders must look for indicators (effects) of individual behaviour and of groups in any organisation. Indicators have a root cause beneath. As a leader, it is that symptom, which must be evaluated, and cause of human behaviour established so that if the behaviour is good, the manager can establish the norms of behaviour. If the behaviour is not conducive to achieve the organisational objective then suitable alternative model can be applied to channelise individualbehaviourtowardsanappropriateorganisationalvaluesystemandthusindividualbehaviourmodified.An organisation has three basic elements namely, people, structure, and technology. An organisation must have suitable organisational structure, with appropriate number of tier and reporting system properly explained. Principle of unity of command, delegation of authority and responsibility, formulation of objectives and its allotment to various groups is very important so that workers achieve a required level of job satisfaction. They must be trained to handle sophisticated machines and equipment. It is the people, their value system, and faith in the leadership that make an organisation. Leader must be able to describe, understand, predict and control individual behaviour in the organisation.

Describe: Studyoforganisationalbehaviourisbasedonscientificmethods,whichhavebeenappliedonhumanbeings. It is a science, that analyses as to how people behave in different situations in the organisation. A manager should be able describe the behaviour of each of the individuals under his command, identify attitude, and be able to pinpoint his behaviour so that the situation in the organisation is under control.

Understand: Leaders must understand human behaviour as to why people behave in particular manner and try to identify reasons so that corrective actions can be taken.

Predict: By frequent closer interaction, a leader is in a position to identify the nature of workers. Some are more productive while the others are tardy and disruptive. In such situation, a leader should be able to handle each individual differently so that his or her actions can be channelised to higher productivity.

Control: Managersintheorganisationsshouldtraintheirsubordinatescontinuously;aimbeingdevelopmentofskills, promotion of productivity and improvement of individual behaviour. It is a continuous process on the part of manager. He must lay down control measures so that the energy of workers is diverted towards organisational objectives. Communication should be used to ensure that the behaviour of individual is controlled. Environment has a great impact on human behaviour.

Appropriate internal environment would help organisations to built favourable work environment that will help individuals and groups within organisations to work effectively towards higher productivity.

1.5 Organisational Components that Need to be Managed PeoplePeople are the main component of any organisation that has to be managed. Every individual has a personal goal to beachieved.Organisationsmustidentifytheneedspectrumofindividualsandtakesuitablestepsforitsfulfilmentto enable them to perform effectively so that they complete their allotted task in time. Relationship between the workers, with subordinates and superiors should be established based on full understanding and complete faith based on mutual trust so that it is easy to communicate and understand each other’s views. Work teams and Groups play avitalroleintheorganisation.Individualmayhavetokeephispersonalinterestasideifitconflictswithteamorgroup goals. It is the team goals, accomplishment of which contributes towards achieving organisational goals.

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StructureTherearetwotypesoforganisations,formalandinformal.Informalorganisationsdonothaveaspecifiedstructure.Formal organisations are building based upon the objective set for it. Organisational structure in such organisation ishierarchicalinnature,withpeopleateachlevelhavingtheirownobjectives,whichcontributestowardsfulfilmentof overall organisational objectives. In such organisations people at lower level report to higher level managers. The tier system has the principle of unity of command inbuilt in it. The organisation structure may depend upon the size, number of products/services produced, skill and experience of the employees, managerial staff and geographical locationoftheorganisation.Anorganisationmayhaveseverallevelsandpyramidlikeorganisationalstructureorflatstructure.Theefficiencyoftheorganisationwilldependuponthefreeflowoftheinformation,efficientcommunicationsystemprevailingintheorganisation,well-definedauthorityandresponsibilitysupportedbydetailedpolicies,rulesand regulations. The organisation must have well laid out systems, which are understood by workers, supervisors and managers. The leader must keep open mind while dealing with subordinates and exercise full control over various systems, levels and ensure planned productivity and achieve high level of job satisfaction.

TechnologyManaging technology is an important job of any management. It is an important element of any unit. Selection of technology, procurement, installation, operation and maintenance is important and no compromise should be made in procuring latest or advanced technology. Various systems and sub- systems should support technology that exists in an organisation. Based on the technology, an organisation should formulate job structure and resultant procurement of human resource so that they are complimentary to each other. Adequate attention is also being paid to service industry. For example an appropriate drill, procedures are installed in hospital industry to ensure that the patients’ record is maintained properly. On line operations of all systems relating to admission record, past treatment, drugs, availability of beds, schedule of operations maintained so that the level of patients satisfaction is raised. In minimum number of days, maximum numbers of patients should be treated. Various processes required to regulate these functions form the important part of service industry.

JobsJob is an assignment assigned to an individual. It encompasses various tasks within it. For example, Personnel managerwantstofilluptwelvevacanciesinproductiondepartmentwithinthreemonths.Jobwillhavevarioustasksinbuiltinitlikedesigningofjobspecification,selectionofmedia,advertisingvacancies,schedulingofselectionand recruiting process. Manager, therefore have to manage various tasks to accomplish a particular job. This may form a part of managerial functions.

ProcessesManagement of processes and its inter-dependence is very crucial to high productivity and higher job satisfaction. What is important for a manager is to ensure high morale of the work force. To ensure this, he must identify various managerial dictums. Select appropriate subordinates to carry out a job based on aptitude, personality traits, mental build up and attitude. He should also involve himself and lead subordinates by personal example. In defence services, it is the quality of leadership that motivates troops to achieve near impossible task where everything appears to be going wrong. Various role models assist leaders in identifying as to which process, method or approach would be suitable to mould subordinates in suitable frame that may be required by any organisation. Nothing motivates workers better if you give them their entitlements in full and train them to take up higher jobs. By doing so, manager must develop and build an organisational culture that will bind employees to a common cultural bond. During day-to-day functions, managers must be transparent and maintain a high degree of value system and display ethical behaviour. There are no short cuts to this and will pay rich dividends in times to come.

External EnvironmentWhat we have so far discussed is various components of an organisation that should be managed properly. External environment also plays an important role in managing the points discussed above. When we talk about managingpeopleintheorganisation,whatwehavetostudyandmanageistheinfluenceofcultureanditsimpacton the individual. A manager should examine as to how he is going to cope up with the changes. Study of external environment is very wide and encompasses economic, cultural, social, government rules and regulations, legal aspects, political climate, demographics and its impact. If one scans the external environment that is prevailing


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inIndiancontext,onewillfindthatindividualsareracingtocatchuptheupperclass as it relates to standards of living, material possession, higher education, attempt to copy western culture, food habits, dressing pattern and the like. Beauty parlours, pubs and cyber cafes around each corner are an ample evidence of the impact of external environment. This trend has an impact on what products or services are on priority in the society and indicates the behaviour of an individual. If the above factors are evaluated appropriately, a manager will be able to examine and predict human behaviour in the organisation. It is therefore important to evaluate market situation, competitors, and availability of raw material, technology, availability of skilled, semi skilled and non-skilled personnel. In addition, evaluate prevailing culture and how individuals are likely to respond to the call of the organisation. Some factors like government rules, and political stability keep changing, the organisations must cater for such contingencies. Manager must therefore keep in mind the internal and external factors and make the best amalgam and work to achieve organisational effectiveness.

1.6 Contemporary Organisational BehaviourContemporary organisational behaviour has two fundamental characteristics that warrant special discussion. It also generallyacceptsasetofconceptstodefineitsdomain.

1.6.1 Characteristics of the FieldResearchers and managers who use concepts and ideas from organisational behaviour must recognise that it has an interdisciplinaryfocusandadescriptivenature;thatis,itdrawsfromavarietyoffieldsandattemptstodescribebehaviour (as opposed to prescribing how behaviour can be changed in consistent and predictable ways).

1.6.2 An Interdisciplinary FocusInmanyways,organisationalbehavioursynthesisesseveralotherfieldsofstudy.Psychology,especiallyorganisationalpsychology,isperhapsthegreatestcontributortothefieldoforganisationalbehaviour.Psychologistsstudyhumanbehaviour,whereas organisational psychologists specifically address the behaviour of people in organisationalsettings. Many of the concepts that interest psychologists, such as individual differences and motivation, are also central to studying of organisational behaviour.

Sociologyalsohashadamajorimpactonthefieldoforganisationalbehaviour.Sociologistsstudysocialsystemssuch as families, occupational classes, and organisations. Because a major concern of organisational behaviour is thestudyoforganisationstructures,thefieldclearlyoverlapswithareasofsociologythatfocusontheorganisationas a social system.

Anthropology is concerned with the interactions between people and their environments, especially their cultural environment.Cultureismajorinfluenceonthestructureoforganisationsaswellasonthebehaviourofindividualpeople within organisations.

Political science also interests organisational behaviourists. We usually think of political science as the study of political systems such as governments. But themes of interest to political scientists include how and why people acquirepower,politicalbehaviour,decisionmakingconflict,thebehaviourofinterestgroups,andcoalitionformation.These are also major areas of interest in organisational behaviour.

Economists study the production, distribution, and consumption of goods and services.

Organisational behaviourists share the economist’s interest of topics such as labour market dynamics, productivity, humanresourceplanningandforecasting,andcost-benefitanalysis.Engineeringhasalsoinfluencedthefieldoforganisational behaviour. Industrial engineering in particular has long been concerned with work measurement, productivitymeasurement,workflowanalysisanddesign,jobdesign,andlabourrelations.Obviouslytheseareasare also relevant to organisational behaviour.

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Mostrecently,medicinehasinfluencedorganisationalbehaviourinconnectionwithstudyofhumanbehaviouratwork,specificallyintheareaofstress.Increasingresearchisshowingthatcontrollingthecausesandconsequencesof stress in and out of organisational settings is important for the well-being of the individual as well as that of the organisation.

1.6.3 A Descriptive NatureA primary goal of organisational behaviour is to describe relationships between two or more behavioural variables. The theoriesandconceptsofthefield,forexample,cannotpredictwithcertaintythatchangingaspecificsetofworkplacevariables will improve an individual employee’s performance by a certain amount. At best, theories can suggest that certain general concepts or variables tend to be related to one another in particular settings. For instance, research might indicate that in one organisation, employee satisfaction and individual perceptions of working conditions correlate positively. Nevertheless, we may not know if better working conditions lead to more satisfaction, if more satisfiedpeopleseetheirjobsdifferentlyfromunsatisfiedpeople,orifbothsatisfactionandperceptionsofworkingconditions are actually related through other variables. Also, the observed relationship between satisfaction and perceptions of working conditions may be considerably stronger, weaker, or nonexistent in other settings.

Organisationalbehaviourisdescriptiveforseveralreasons:theimmaturityofthefield,thecomplexitiesinherentinstudyinghumanbehaviour,andthelackofvalid,reliable,andaccepteddefinitionsandmeasures.Whetherthefieldwilleverbeabletomakedefinitivepredictionsandprescriptionsisstillanopenquestion.Butthevalueofstudyingorganisationalbehaviournonethelessisfirmlyestablished.Becausebehaviouralprocessespervademostmanagerial functions and roles, and because the work of organisations is done primarily by people, the knowledge andunderstandinggainedfromthefieldcanhelpmanagersinsignificantways.

1.7 Contextual Perspectives on Organisational BehaviourSeveralcontextualperspectiveshaveincreasinglyinfluencedorganisationalbehaviour:thesystemsapproachandcontingency perspectives, the interactional view, and the popular-press perspectives. Many of the concepts and theorieswediscussinthechaptersthatfollowreflecttheseperspectives;theyrepresentbasicpointsofviewthatinfluencemuchofourcontemporarythinkingaboutbehaviourinorganisations.

1.7.1 Systems and Contingency PerspectivesThe systems and contingency perspectives take related viewpoints on organisations and how they function. Each is concerned with interrelationship among organisational elements and between organisational and environmental elements.

1.7.2 The Systems Perspective Thesystemsperspective,orthetheoryofsystems,wasfirstdevelopedinthephysicalsciences,butithasbeenextended to other areas, such as management. A system is an interrelated set of elements that function as a whole. Anorganisational system receives four kinds of inputs form its environment:material, human,financial, andinformational. The organisation then combines and transforms the inputs and returns them to the environment in theformofproductsorservices,profitsorlosses,employeebehaviours,andadditionalinformation.Finally,thesystem receives feedback from the environment regarding these outputs.

As an example, we can apply systems theory to an oil company. Material input includes pipelines, crude oil, and the machineryusedtorefinepetroleum.Financialinputincludesthemoneyreceivedfromoilandgassales,stockholderinvestment,andsoforth.Humaninputincludestheeffortputforthbyoilfieldworkers,refineryworkers,officestaff,and other people employed by the company. Finally, the company receives information input from forecasts about future oil supplies, geological surveys on potential drilling sites, sales projections, and similar analyses.

Throughcomplexrefiningandotherprocesses,theseinputsarecombinedandtransformedtocreateproductssuchasgasolineandmotoroil.Asoutputs,theseproductsaresoldtotheconsumingpublic.Profitsfromoperationsarefedbackintotheenvironmentthroughtaxes,investments,anddividends;losses,whentheyoccur,hittheenvironmentbyreducing stockholders’ incomes. In addition to having on-the-job contacts with customers and suppliers, employees


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live in the community and participate in a variety of activities away from the workplace. In varying degrees, at least somepartofthisbehaviourisinfluencedbytheirexperiencesasworkers.Finally,informationaboutthecompanyand its operations is also released into the environment.

1.7.3 The Contingency Perspective Another useful viewpoint for understanding behaviour in organisations comes from the contingency perspective. In the early days of management studies, managers searched for universal answers to organisational questions. They sought prescriptions that could be applied to any organisation under any conditions. For example, early leadership researchers tried to discover forms of leadership behaviour that would always increase employee satisfaction and effort. Eventually, however, researchers realised that the complexities of human behaviour and organisational settings make universal conclusions virtually impossible. They discovered that in organisations, most situations and outcomes arecontingent;thatis,therelationshipbetweenanytwovariablesislikelytobeinfluencedbyothervariables.

Universal Approach Organizational problems or situations determine…

The one best way of responding.

Contingency Approach Organizational problems or situations must be evaluated in terms of …

Elements of the situation, which then suggest…

Contingent ways of responding.

Fig. 1.1 Universal versus contingency approaches

1.8 InteractionalismInteractionalism is a relatively new approach to understanding behaviour in organisational settings. First presented in terms of interactional psychology, this view assumes that individual behaviour results from a continuous and multidirectionalinteractionbetweenthecharacteristicsofapersonandcharacteristicsofasituation.Morespecifically,interactionalism attempts to explain how people select, interpret, and change various situations. This interaction is what determines the individual’s behaviour.

The interactional view implies that simple cause-and-effect descriptions of organisational phenomena are not enough. For example, one set of research studies may suggest that job changes will lead to improved employee attitudes. Anothersetofstudiesmayproposethatattitudesinfluencehowpeopleperceivetheirjobsinthefirstplace.Bothpositionsareprobablyincomplete:employeeattitudesmayinfluencejobperception,buttheseperceptionsmayinturninfluencefutureattitudes.Becauseinteractionalismisafairlyrecentcontributiontothefield,itislessprominentin the chapters that follow than the systems and contingency theories. Nonetheless, the interactional view appears tooffermanypromisingideasforfuturedevelopmentinthefield.

Individual

Behavior

Situation

Fig. 1.2 The interactionist perspective on behaviour in organisations

While some of the evidence provided by current research is open to a variety of different interpretations, they have focused popular attention on many of the important issues and problems confronting business today. As a result, managers of the 1990s better appreciate both their problems and their prospects in working toward more effective organisational practices in the years to come.

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SummaryOrganisational behaviour deals with that part of life, which is spent working. It is also called ‘on-the-job’ •life.Employees are called ‘Human Resources’ because they are not commodities. Managements have become aware •that they have to treat their employees as human beings and not as machines or materials.The organisational behaviour of people depends upon their social status, social roles and social groups. As a •result,withinevery formalorganisation, thereexistsan informalorganisation,which influencesthe formalorganisation to a large extent.Despite the advancement in technology, the importance of people in an organisation cannot be undermined.•Organisational behaviour is a study and application of managerial skills and knowledge to people in the •organisation to investigate individual and group behaviour.Studyoforganisationalbehaviourisbasedonscientificmethods,whichhavebeenappliedonhumanbeings.•Organisationsmustidentifytheneedspectrumofindividualsandtakesuitablestepsforitsfulfilmenttoenable•them to perform effectively so that they complete their allotted task in time.Contemporary organisational behaviour has two fundamental characteristics that warrant special discussion.•The interactional view implies that simple cause-and-effect descriptions of organisational phenomena are not •enough.

ReferencesBauer, Erdogan, T. & Berrin, 2010. • Understanding Organisational Behaviour. In: Bauer, Talya and Erdogan, Berrin. Organisational Behaviour.Hitt, M. A., Miller, C.C. & Collela, A., 2009. • Organisational Behaviour, 2nd ed., John Wiley & Sons, Inc.Organisational Behaviour, • [Online]Available at: <http://www.flatworldknowledge.com/pub/organisational-behavior-v1.1/141353#web-141351> [Accessed 5 October 2010].Davis, • Leadership and organisational behaviour, [Online] Available at: <http://www.nwlink.com/~donclark/leader/leadob.html> [Accessed 14 August 2012].Lepelley, D., 2012, • Organisational behaviour in business Part 1, [Video online] Available at: <http://www.youtube.com/watch?v=SS8GSPdej-k> [Accessed 14 August 2012].Dr. Wicker, D., • Organisational behaviour, [Video online] Available at: <http://www.youtube.com/watch?v=0dAATdGxSGk> [Accessed 14 August 2012].

Recommended ReadingColquitt, LePine, J., Wesson, M., 2010. • Organisational Behaviour: Improving Performance and Commitment in the Workplace. 2nd ed., McGraw-Hill/Irwin.Schermerhorn, J.R., Dr. Hunt, J.G. & Dr. Osborn, R. N., 2010. • Organisational Behaviour 11th ed., Wiley.Kreitner, R. & Kinicki, A., 2009. • Organisational Behaviour, 9th ed., McGraw-Hill/Irwin.


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Self AssessmentWhich of the following statements is false?1.

An organisation requires people with purpose, goals and objectivesa. Organisations are not demanding more from their employeesb. Understanding the ‘Organisational Behaviour’ of their employees is extremely importantc. An organisation is a group of people working together to achieve the common organisational d. goal

Match the following.2.

1. Keith Davis A As the systematic study and application of knowledge about how individuals and groups act within the organisations where they work.

2. Fred Luthans B As a systematic study of actions and reactions of people working in an organisation in order to improve the overall organisational performance.

3. Stephen Robbins

C As a study that investigates the impact, individuals, groups and structure have on human behaviour within the organisation

4. S.K.Kapur D As understanding, prediction and control of human behaviour in the organisation.

5. Talya Bauer E As a study of human behaviour at work.

1-E,2-D,3-C,4-B,5-Aa. 1-B,2-A,3-D,4-C,5-E b. 1-C,2-D,3-E,4-A,5-Bc. 1-C,2-D,3-A,4-B,5-Ed.

Which of the following concepts result in the necessary co-ordination between organisation, management and 3. employees?

An organisation is a social systema. A total view of organisationb. Mutual interests are inter-dependentc. All behaviour has cause-effect relationshipd.

Management of _____________ and its inter-dependence is very crucial to high productivity and higher job 4. satisfaction.

Processes a. Financeb. Technologyc. Environmentd.

Which of the following is a type of organisation?5. Capital intensivea. People intensiveb. Technology sector c. Management sectord.

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Which of the following is not an example of an organisation?6. Universitya. Book b. Armyc. Movie theatred.

Study of ______________ is a very important part of organisational behaviour.7. human behavioura. human psychology b. human strengthc. human physiologyd.

Employees are called 8. because they are not commodities.Human resources a. Human liabilities b. Human Capitalc. Human assetd.

______________ is concerned with the interactions between people and their environments.9. Anthropologya. Interactionalismb. Contingencyc. Organisational behaviourd.

___________ must have suitable organisational structure, with appropriate number of tier and reporting system 10. properly explained.

Managera. Organisationb. Psychologistsc. Systemd.


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Chapter II

Approaches and Models of Organisational Behaviour

Aim


explain various approaches to organisational behaviour•

describe the models of organisational behaviour•

elucidate the importance of personal and work life relationship•

Objectives


enlist four approaches to organisational behaviour•

explainfivedifferentmodelsoforganisationalbehaviour•

elucidate the interdependence of personal-life and work-life•

Learning outcome


identify approaches to organisational behaviour•

enlistfivedifferentmodelsoforganisationalbehaviour•

understand the relationship between personal life and work-life•

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2.1 IntroductionOrganisational behaviour of people can be studied from various angels. These angels are called the approaches to organisational behaviour. Virtually all organisations have managers with titles like marketing manager, director of public relations, vice president for human resources, and plant manager. But probably no organisation has a position called organisational behaviour manager. The reason for this is simple: organisational behaviour is not an organisational function or area. Instead, it is best described as a perspective or set of tools that all managers can use to carry out their jobs more effectively.

By understanding organisational behaviour concepts, managers can better understand and appreciate the behaviour of those around them. For example, most managers in an organisation are directly responsible for the work-related behaviours of a set of other people—their immediate subordinates. Typical managerial activities in this area include motivatingemployeestoworkharder,ensuringthattheirjobsareproperlydesigned,resolvingconflicts,evaluatingtheirperformance,andhelpingthemsetgoalstoachieverewards.Thefieldoforganisationalbehaviouraboundswith theory and research regarding each of these functions. Unless they happen to be CEOs, managers also report to others in the organisation (even the CEO reports to the board of directors). In working with these individuals, understanding basic issues associated with leadership, power and political behaviour, decision making, organisation structureanddesign,andorganisationculturecanalsobeextremelybeneficial.

Again,thefieldoforganisationalbehaviourprovidesnumerousvaluableinsightsintotheseprocesses.

Managerscanalsousetheirknowledgefromthefieldoforganisationalbehaviourtobetterunderstandtheirownbehaviours and feelings. For example, understanding personal needs and motives, how to improve decision-making capabilities, how to respond to and control stress, how to better communicate with others, and the way in which careerdynamicsunfoldcanallbeofenormousbenefittoindividualmanagers.Organisationalbehaviouronceagainprovides useful insights into these concepts and processes.

2.2 Some of the Important ApproachesFollowing are the important approaches of organisational behaviour

2.2.1The Inter-Disciplinary ApproachThis approach states that in order to study the organisational behaviour, it is necessary to understand the interactions and interdependence between the various aspects of human life.

2.2.2 The Human Resources ApproachThis approach states that the management of an organisation should support training and development of employees, since it yields better results. This leads to employee and organisation growth.

2.2.3 The Systems ApproachThis approach looks upon the management as a ‘System’ with various sub-systems. The attention should be given to overall effectiveness of the system rather than effectiveness of any sub-system in isolation.

2.2.4 The Contingency ApproachThis approach states that each situation should be dealt uniquely, with special thinking and decision making. The various approaches to the study of organisational behaviour have given rise to different models.

2.3 Models of Organisational BehaviourFollowing are various models of organisational Behaviour

The autocratic modelThis model assumes that authority of superiors and obedience is central to results. Obedience of subordinates is due to two reasons: respect for knowledge and fear of punishment in case of disobedience.


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The custodian modelThis model assumes that organisational behaviour depends upon economic resources. Employees work for money and job security. The management takes the role of guardian and custodian of their employees and their wealth.

The supportive modelThis model assumes that management plays role of supportive leadership. Employees show an initiative and drive for performance through their involvement and participation in the organisational activities. Employees need support, status and recognition for their performance.

The collegial modelThe model is based on the assumption that the main need of employees is self actualisation and they exhibit responsible behaviour. The management must build teams and encourage participation in decision making.

The SOBC modelIt is based on the philosophy that ‘human behaviour is caused and follows the cause-effect relationship’. SOBC stands for Stimulus, Organism, Behaviour, Consequences.

Stimulus: • Is the causeOrganism: • Can be an individual or group.Behaviour: • Is expressed in terms of action or response.Consequences: • Are results.

Stimulus>Organism>Behaviour>Consequences

Parameter basis Autocratic Custodial Supportive Collegial

Managerial orientation Authority Money Support Teamwork

Employee orientation Obedience Job security Performance Responsibility

Employee psychology Dependence on boss

Dependence on organisation Participation Self discipline

Employee needs Survival Maintenance Self esteem& recognition Self actualisation

Performance results Minimum Passive co-operation Efficient Effective

Level of morale Compliance Satisfaction Motivation Commitment

Table 2.1 Tabular representation of models

The philosophy (model) of organisational behaviour held by management consists and integrated set of assumptions and beliefs about the way things are, the purpose for these activities, and the way they should be.

These philosophies are sometimes explicit, and occasionally implicit, in the minds of manager.•Five major organisational behaviour philosophies includes autocratic, custodial, supportive, collegial and •system.

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2.3.1 Two Sources of Model of Organisational BehaviourFact premise are acquired through direct and indirect lifelong learning and are very useful in guiding our behaviour.

Value premise represent our views of the desirability of certain goals and activities.•Value premises are variable beliefs we hold and are therefore under our control.•

2.3.2 GoalsGoals are relatively concrete formulations of achievements the organisation is aiming for within set periods of time, suchasonetofiveyears.

Goal setting is a complex process, for top management’s goals need to be merged with those of employees, who bring their psychological, social, and economic needs with them to an organisation.

2.4 Managerial FunctionsThe four basic managerial functions in organisations are planning, organising, leading, and controlling. By applying thesefunctionstothevariousorganisationalresourceshuman,financial,physical,andinformationaltheorganisationachievesdifferentlevelsofeffectivenessandefficiency.

Planning: The managerial function of planning is the process of determining the organisation’s desired future position and deciding how best to get there. The planning process at Sears, Roebuck, for example, includes scanning the environment, deciding on appropriate goals, outlining strategies for achieving those goals, and developing tactics to execute the strategies. Behavioural processes and characteristics pervade each of these activities. Perception, for instance,playsamajorroleinenvironmentalscanning,andcreativityandmotivationinfluencehowmanagerssetgoals, strategies, and tactics for their organisation.

Organising: The managerial function of organising is the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of jobs. This process designs the basic structure, or framework, of the organisation. For large organisations like Sears, the structure can be expensive and complicated. As noted earlier, the processes and characteristics of the organisation itself are a major theme of organisational behaviour.

Leading: Leading is the process of motivating members of the organisation to work together toward the organisation’s goals. A manger must hire and train employees. Major components of leading include motivating employees, managing group dynamics, and leadership per se, all of which are closely related to major areas of organisational behaviour.

Controlling: Afinalmanagerialfunction,controlling,istheprocessofmonitoringandcorrectingtheactionsofthe organisation and its people to keep them headed toward their goals. A manger has to control costs, inventory, and so on. Again, behavioural processes and characteristics play an important role in carrying out this function. Performance evaluation and reward systems for example, are all aspects of controlling.

2.5 Inter-Relationship between Personal Life and Work LifeResearch has revealed that organisational behaviour of an employee is a result of a constant interaction between personal life and work life. Employee happy with the work-life tends to be happy with the personal-life. The reverse may not be always true.

2.5.1 Managerial RolesIn an organisation, as in a play or a movie, a role is the part a person plays in a given situation.

Managers often play a number of different roles. Much of our knowledge about managerial roles comes from the workofHenryMintsberg.Mintzbergidentifiedtenbasicmanagerialrolesclusteredintothreegeneralcategories.


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Management’sPhilosophy•Values•Vision•Mission•Goals

Formal Organisation

Leadership•Communication•GroupDynamics

Organisational Culture

Quality of Work Life (QWL)

Outcomes•Performance•Employeesatisfaction•Personalgrowthanddevelopment

Motivation

Social Environment

Informal Organisation

Fig. 2.1 Elements of organisational behaviour

Interpersonal roles Mintzberg’sinterpersonalrolesareprimarilysocialinnature;thatis,theyarerolesinwhichthemanger’smaintaskistorelatetootherpeopleincertainways.Themanagersometimesmanyserveasafigureheadfortheorganisation.Takingvisitorstodinnerandattendingribbon-cuttingceremoniesarepartof thefigureheadrole.Intheroleofleader, the manager works to hire, train, and motivate employees. Finally, the liaison role consists of relating to others outside the group or organisation. For example, a manger at Intel might be responsible for handling all price negotiations with a major supplier of electronic circuit boards. Obviously, each of these interpersonal roles involves behavioural processes.

Informational roles Mintsberg’s three informational roles involve some aspects of information processing. The monitor actively seeks informationthatmightbeofvaluetotheorganisationingeneralortospecificmanagers.Themanagerwhotransmitsthis information to others is carrying out the role of disseminator. The spokesperson speaks for the organisation to outsiders. For example, the manager chosen by Apple Computer to appear at a press conference announcing a merger or other major deal, such as a recent decision to undertake a joint venture with Microsoft, would be serving in this role. Again, behavioural processes are part of these roles because information is almost always exchanged between people.

Decision-making rolesFinally,Mintsberg identifiedfourdecision-makingroles.Theentrepreneurvoluntarily initiateschange,suchasinnovations or new strategies, in the organisation. The disturbance handler helps settle disputes between various parties, such as other mangers and their subordinates. The resource allocator decides who will get what—how resources in the organisation will be distributed among various individuals and groups. The negotiator represents the organisation in reaching agreements with other organisations, such as contracts between management and labor unions. Again, behavioural processes are clearly crucial in each of these decisional roles.

2.5.2 Managing for EffectivenessAfinalsetofissuesweaddressinthischapterrelatestotheconsequencesofmanagement.Morespecifically,whatare the outcomes of different types of and approaches to management? Three basic levels of outcomes determine organisational effectiveness: individual-, group-, and organisation-level outcomes. Developing management skills provides some additional perspectives on the importance of these outcomes.

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Individual-level outcomesSeveral different outcomes at the individual level are important tomanagers.Given the focus of thefield oforganisational behaviour, it should not be surprising that most of these outcomes are directly or indirectly addressed by various theories and models.

Individual behavioursFirst, several individual behaviours result from a person’s participation in an organisation. One important behaviour isproductivity.Productivity,asdefinedintermsofanindividual,isanindicatorofanemployee’sefficiencyandis measured in terms of the products or services (or both) created per unit of input. For example, if Bill makes 100 units of a product in a day and Sara makes only 90 units in a day, then, assuming that the units are of the same quality and Bill and Sara make the same wages, Bill is more productive than Sara. Performance, another important individual-level outcome variable, is a somewhat broader concept. It is made up of all work-related behaviours. For example, even though Bill is highly productive, he may also refuse to work overtime, express negative opinions about the organisation at every opportunity, and do nothing unless it falls precisely within the boundaries of his job. Sara, on the other hand, may always be willing to work overtime, is a positive representative of the organisation, and goes out of her way to make as many contributions to the organisation as possible. Bases on the full array of behaviours, then, we might conclude that Sara actually is the better performer.

Individual attitudes Anothersetofindividual-leveloutcomesinfluencedbymanagersconsistsofindividualattitudes.Levelsofjobsatisfaction or dissatisfaction, organisational commitment, and organisational involvement are all important in organisational behaviour.

Stress Stress is another important individual-level outcome variable. Given its costs, both personal and organisational, it should not be surprising that stress is becoming an increasingly important topic for both researchers in organisational behaviour and practicing managers.

2.6 Group and Team-Level OutcomesAnother set of outcomes exists at the group and team level. In general, some of these outcomes parallel the individual-level outcomes just discussed. For example, if an organisation makes extensive use of work teams, team productivity and performance are important outcome variables. On the other hand, even if all the people in a group or team have the same or similar attitudes toward their jobs, the attitudes themselves are individual-level phenomena. Individuals, not groups, have attitudes.

2.7 Organisation-Level OutcomesFinally, a set of outcome variables exists at the organisation level. As before, some of these outcomes parallel those at the individual and group levels, but others are unique. For example, we can measure and compare organisational productivity.Wecanalsodeveloporganisationlevelindicatorsofabsenteeismandturnover.Butfinancialperformanceis generally assessed only at the organisation level.

Intermsoffinancialperformance,organisationsarecommonlyassessedonstockprice,returnoninvestment,growthrates, and the like. They are also evaluated in terms of their ability to survive and the extent to which they satisfy important constituents such as investors, government regulators, employees, and unions.


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SummaryFive major organisational behaviour philosophies includes autocratic, custodial, supportive, collegial and •system.The managerial function of planning is the process of determining the organisation’s desired future position •and deciding how best to get there.Stress is another important individual-level outcome variable. Given its costs, both personal and organisational, •it should not be surprising that stress is becoming an increasingly important topic for both researchers in organisational behaviour and practicing managers.A manger has to control costs, inventory, and so on. Again, behavioural processes and characteristics play an •important role in carrying out this function.The interrelationship between personal life and work life cannot be overlooked. Hence it is extremely important •for mangers to understand various aspects of organisational behaviour in the light of various approaches and models discussed in this chapter.Financialperformanceisgenerallyassessedonlyattheorganisationlevel.Intermsoffinancialperformance,•organisations are commonly assessed on stock price, return on investment, growth rates, and the like

ReferencesZachary, W. B., Kuzuhara, L.W., William, B. & Loren, W., 2004• . Organisational Behaviour: Integrated Models and Applications, 1st ed., South-Western College Pub.Ivancevich, J., Konopaske, R. & Matteson, M., 2007• . Organisational Behaviour and Management, 8th ed., McGraw-Hill/Irwin.Dr. Wicker, 2008, • Organisational behaviour, [Video online] Available at: <http://www.youtube.com/watch?v=Xkmt6yuze14> [Accessed 18 August 2012].Dr. Wicker, D., 2008, • Organisational behaviour lecture 3, [Video online] Available at: <http://www.youtube.com/watch?v=eKJ3lyUMCzc> [Accessed 18 August 2012].Chen, X., • Organisational behaviour and human processes, [Online] Available at: <http://www.journals.elsevier.com/organizational-behaviour-and-human-decision-processes/> [Accessed 18 August 2012].Sarab, • Models of Organisational behaviour, [Online] Available at: <http://beepyoumba.com/BEEP/?p=28> [Accessed 18 August 2012].

Recommended ReadingGeorge J. & Jones G., 2007. • Understanding and Managing Organisational Behaviour, 5th ed., Prentice Hall.Slocum, J.W., 2010. • Organisational Behaviour, 13th ed., South-Western College PubRobbins, J., 2009. • Organisational Behaviour, 13th ed., Pearson International.

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Self AssessmentMatch the following.1.

1 Autocratic A Support

2 Custodial B Authority

3 Supportive C Teamwork

4 Collegial D Money

5 SOBC E cause-effect1-A, 2-B, 3-C, 4-D, 5-E a. 1-B, 2-D, 3-A, 4-C, 5-E b. 1-D, 2-C, 3-A, 4-E, 5-Bc. 1-D, 2-C, 3-E, 4-A, 5-Bd.

To study organisational behaviour, the inter-disciplinary approach emphasises the importance 2. of____________.

employeea. authorityb. human-lifec. moneyd.

The Human Resources approach states that the management of an organisation should support ________3. and________of employees.

training and developmenta. training and decision making b. compliance and development c. training and authorityd.

In systems approach the most important component is________________.4. decision-makinga. complianceb. trainingc. systemd.

The contingency approach states that each situation should be dealt with_______________.5. authoritatively a. uniquelyb. systematically c. passivelyd.

___________ is the process of motivating members of the organisation to work together toward the organisation’s 6. goals.

Controllinga. Behaviourb. Leadingc. Presentationd.


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Which of the following statements is false?7. Thefieldoforganisationalbehaviourprovidesnumerousvaluableinsightsintotheseprocesses.a. Managerscanneverusetheirknowledgefromthefieldoforganisationalbehaviourtobetterunderstandingb. of their own behaviours and feelings.A manager has to control costs, inventory, and so on. c. Behavioural processes and characteristics play an important role in carrying out this function.d.

Which of the following statements is false?8. Value premise represent our views of the desirability of certain goals and activities.a. Value premises are variable beliefs we hold and are therefore under our control.b. Goals are relatively concrete formulations of achievements the organisation is aiming for within set periods c. oftime,suchasonetofiveyears.Goal setting is a simple process, for top management’s goals need to be merged with those of employees, d. who bring their psychological, social, and economic needs with them to an organisation.

The __________ speaks for the organisation to outsiders.\9. ownera. employeeb. spokespersonc. human resource managerd.

The managerial function of _________ is the process of determining the organisation’s desired future position 10. and deciding how best to get there.

planninga. executionb. stress managementc. team workd.

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Chapter III

Organisational Design and Culture

Aim


explain the concept of organisational design•

elucidate the aspects of organisational design•

explicate the concept of organisational structure and organisational culture•

Objectives


explain the dimensions, determinants, and elements of organisational design•

enlistthefactorsinfluencingorganisationalredesign•

enlist the characteristics of organisational culture•

Learning outcome


describe various types of organisational design•

understand dimensions, determinants, and elements of organisational design•

identify the basis of assessing organisational culture•


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3.1 IntroductionOrganisations develop from small to large units by moving through four stages of a life cycle: birth stage, youth stage, middle stage, and maturity stage. This process of development is accompanied by corresponding changes in the organisational design.

Birth stage: This is the stage when the organisation is created. At this initial stage, the organisation’s decision making is highly centralised. The organisation is informal. There are usually few rules and regulations, no professional staff and no internal system for planning.

Youth stage: During this stage, additional employees are employed as the sales for the company’s products and services increase. Although authority is fairly centralised, a few trusted employees are involved in decision making process. Some informal rules and procedures are involved. There are now a few professionals and administrative personnel in the organisation. The division of labour begins to occur as the newly formed departments are assigned tasks.

Middle stage: By the time the organisation reaches this stage, it has become somewhat successful and grown in size. Its structure is similar to that of a formal bureaucracy with formalized departments, supporting staff departments and many professional and clerical staffs. A large set of rules and procedures have been introduced. Authority has been effectively decentralised. The division of labour has become extensive.

Maturity stage: During this stage the organisation becomes very large and mechanistic. A set of bureaucratic rules, regulationsandpoliciesprevail.Decisionmakingiscentralised.Thedivisionoflabourishighlyrefined.Asaresultof the rigid virtual hierarchy, the organisation is on the brink of stagnation. At this stage, the organisation attempts tobecomeinnovativeandflexible.Assuch,itdecentralisesauthoritywithinthelateralstructuressuchasliaisonpersonnel, task forces, and project teams. Thus, it is clear that an organisation’s structural characteristics undergo different stages of organisation’s life cycle. To fully appreciate organisational culture we have to understand its basic nature. With this in mind, we will now examine three key aspects of culture:

Its basic characteristics, •Whether there is generally only one or more than one culture within organisations, and •The role that culture plays in organisational functioning.•

Organisational culture: A definition and core characteristicsAlthoughwehavebeen talking about organisational culture in general terms, a specificdefinition is in order.Accordingly,wedefineorganisationalcultureasacognitiveframeworkconsistingofattitudes,values,behaviouralnorms, and expectations shared by organisation members. At the root of any organisation’s culture is a set of core characteristics that are collectively valued by members of an organisation. Several such characteristics are especially important. Organisations may be distinguished with respect to their basic values, such as the very fundamental ones summarised here.

Sensitivity to needs of customers and employees•Freedom to initiate new ideas•Willingness to tolerate taking risks•Openness to communication options•

First, organisations differ with respect to their sensitivity to the needs of customers and employees. For example, severalyearsago,thecultureatUPSwasrelativelyrigidandinflexiblewithrespecttocustomers’needs.Today,however, its new culture places a high value on customer service and satisfaction.

Second, organisations differ with respect to their interest in having employees generate new ideas. Walt Disney Co. employees—or, “cast members,” as they are called—undergo lengthy orientation programs to ensure that they know exactly what to say and how to behave toward guests. In contrast, people working at GE are encouraged to be unique, and to bring fresh ideas to their work.

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Third, companies also differ with respect to the value placed on taking risks. The fourth value has to do with the openness of available communication options. In some companies, such as DuPont, employees are expected to make decisions freely and to communicate with whoever is needed to get the job done. At IBM, however, the tradition has been to work within the proper communication channels and to vest power in the hands of only a few key individuals (although this appears to be changing).

3.2 Organisational DesignOrganisational designing is very important in shaping the organisational behaviour and organisation culture. According to Stephen Robbins, organisational design is a process of determining as to how tasks are divided, grouped and coordinated for the successful achievement of the organisational goals.

Itisextremelydifficulttodesignandredesigntheorganisationstructure,withanoldorganisation.However,modernOrganisations review the design once every 5 years to cope with changing situations.

3.2.1 Dimensions of Organisational Design

The vertical dimension relating to the hierarchy of the managerial levels of superiors and subordinates•The horizontal dimension relating to decentralisation, divisionalisation, departmentalisation, sectionalisation•

3.2.2 Determinants of Organisational DesignFollowing are the determinants of organisational design

Ownership (public, private, joint, co-operative)•Size (small medium, large etc.)•Technology (old, new, automation, modernisation)•Strategy (goals, objectives, evaluation of alternatives)•Environment (internal, external)•

3.2.3 Elements of Organisational DesignFollowing are the elements of organisational design

Work specialisationDivision of labour based on work specialisation helps to improve the efficiency and effectiveness of the organisation.

DepartmentalisationIt is a process of dividing the various activities into different departments for proper administration of the organisation.

Advantages of Departmentalisation:It permits utilisation of expertise of people•It creates a feeling of autonomy and job satisfaction among employees•Ithelpsfixingtheauthority-responsibilityrelationshipofthemanagers•It facilitates performance appraisals by managers•It helps the training, development and job rotations of managers•

Chain of commandOrganisationalcommunicationrequiresachainofcommandstoflowdownwards/upwards/lateral.Organisationalbehaviour becomes more complex in the absence of a proper chain of commands.


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Span of controlItisthenumberofsubordinatesthatcanbeefficientlymanagedbythesuperiorfortheoptimumperformanceofthe work team.

3.3 Centralisation v/s DecentralisationFollowing table shows the difference between the centralisation and decentralisation

Centralisation Decentralisation

It is a systematic and consistent reservation of authority and decision making at a central point in the organisation.

Centralised authority and decision-making policy work well for a small organisation. For a growing large scale organisation activities should be decentralised to cope withchangingdemandsforefficiency.

It is a process of dividing organisational activities into different autonomous divisions, physically and functionally

Table 3.1 Centralisation v/s Decentralisation

3.3.1 Factors Influencing Organisational RedesignThere are certain aspects wherein an organisation has to change in:

Knowledge requirements•Technology and skill requirement•Knowledge of human behaviour•Emphasis from command control to consensus self control•

Also an organisation has to change from:Centralised to decentralised structures•Verticalandtalltohorizontalandflatorganisations•Instability to mechanistic systems•Generalisation to specialisation•Product orientation to function orientation•Mechanistic approach to humanistic approach•

3.4 Organisational StructureAn organisation can be depicted by a line diagram, which is called as organisation chart. The organisation chart shows the organisational structure. It shows various positions of the people, their status etc.

3.4.1 Structural Dimensions of OrganisationsThink about how a simple house is constructed. It is composed of a wooden frame positioned atop a concrete slab covered by a roof and siding materials. Within this basic structure are separate systems operating to provide electricity, water, and telephone services. Similarly, the structure of the human body is composed of a skeleton surrounded by various systems of organs, muscle, and tissue serving bodily functions such as respiration, digestion, and the like. It is also possible to extend these analogies to the structure of organisations.

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Hierarchy of authorityOrganisation charts provide information about who reports to whom – what is known as hierarchy of authority. Such diagrams reveal which particular lower-level employees are required to report to which particular individuals immediately above them in the organisational hierarchy.

As we trace these reporting relationships, we work our way up the organisation’s hierarchy. In this case, the organisation has six levels. Organisations may have many levels, in which case their structure is considered tall, or onlyafew,inwhichcasetheirstructureisconsideredflat.

Inrecentyears,agreatdealhasappearedinthenewsaboutorganisationsrestructuringtheirworkforcesbyflatteningthem out. Although it has not been uncommon for large companies to lay off people in low-level jobs, in recent years, middle managers and executives, who long felt secure in their positions, found they unemployed as their companies “downsize,” “right size,” “de-layer,” or “retrench” by eliminating entire layers of organisational structure. Even the U.S. Army has downsized by 30 percent in recent years. The underlying assumption behind these changes is that fewer layers reduce waste and enable people to make better decisions (by moving them closer to the problems at hand),therebyleadingtogreaterprofitability.Managementexpertsclaimthatalthoughsomelayersofhierarchyare necessary, too many can be needlessly expensive. Moreover, as technology advances, fewer people are needed to carry out traditional management roles.

3.4.2 Types of Organisational StructureEach of the organisational structures is shown below with the help of diagrams.

Line organisational structure•

Board of Directors

General Manager

Purchase Manager Production Manager

Foreman Superintendent

Financial ManagerSales Manager

Supervisor

Workers Workers Workers

Purchase Assistants

Workers

Fig. 3.1 Line organisational structure


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Functional organisational structure•

Project Mgr.

Financial Business General Manuf’s Technical

Top

Fig. 3.2 Functional organisational structure

Line and staff organisational structure•

Economist Legal Advisor

ChiefExecutiveOfficer

Marketing Manager Production Manager Finance Manager

Foreman Foreman Foreman

Worker Worker Worker

Fig. 3.3 Line and staff organisational structure

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Matrix organisational structure•

FunctionalManager

FunctionalManager

FunctionalManager

Manager ofProject Managers

ChiefExecutive

Project Managers

Project Managers

Staff Staff

StaffStaff

Staff

Staff

Staff

Staff Staff Project Managers

Fig. 3.4 Matrix Organisational structure

3.5 Organisational CultureOrganisational culture is an abstract concept that varies from one organisation to other. It helps in organisational image building, goodwill and reputation.

3.5.1 DefinitionsEdgar Schiene: As the sum total of the knowledge, beliefs, values, perceptions, attitudes, traditions, customs that are shared by the groups and resulting into individual and group behaviour of the people working in the organisation over a period of time.

Schneider and Snyder: As a process of manifestation of the perceptions, values and attitudes of the members of the organisation.

3.5.2 Indicators of Organisational CultureMore bureaucratic culture: lack of knowledge

Lack of skills•Negative attitudes•Resentful service•Lack of compatibility•Red tapism•Bureaucracy•Lack of discipline•Lack of cleanliness•Poor quality and quantity of organisational culture•


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Less bureaucratic culture: adequate knowledgeAdequate skills•Positive attitudes•Cheerful service•Accountability•Responsibility•Better discipline•Better cleanliness•Efficiencyandeffectiveness•Better quality and quantity•

3.5.3 Projection of Organisational CultureAccording to Edgar Schiene, organisational culture is projected at three levels

Level 1: Logo, trade mark, dress code, values, etc•Level 2: Shared values and beliefs among employees•Level 3: Common assumptions of the management about the employees•

3.5.4 Characteristics of Organisational CultureFollowing are the characteristics of organisational culture

Pragmatic policies•Strategic planning•Decentralisation and delegation•Individual autonomy•Participation in decision making•Risk tolerance•Integration with the organisational goals•Management support•Innovation and creativity•Self- esteem and identity•Control systems•Communication systems•Conflictmanagement•Reward system•

3.5.5 Factors Affecting Organisational CultureFollowing are the factors affecting organisational culture

Organisational context•Organisational structure•Organisational processes•Physical environment•Values, norms, systems•

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3.5.6 Assessing Organisational CultureAccording to Rensis Likert, organisational culture can be accessed on the basis of the following 7-point scale.

Leadership style•Morale and motivation•Organisational communication•Interaction-influenceprocess•Decision making•Goal setting•Control•

3.5.7 Changing Organisational CultureSome factors that can bring about a change in organisational culture:

Treat employees as individuals•Respect individual identity and self-esteem•Improve organisational communication•Give training and development inputs at all levels•Review systems and procedures•Improve leadership and team building•Give rewards and incentives in due recognition and appreciation•Delegate to improve autonomy•Change from autocratic to participative style of management•Develop a positive attitude towards the organisational goals•

3.6 Organisational Design: Combining the Structural Elements of OrganisationsWe began this chapter by likening the structure of an organisation to the structure of a house. Now we are prepared to extend that analogy for purposes of introducing the concept of organisational design. Just as a house is designed in a particular fashion by combining its structural elements in various ways, so too can an organisation be designed by combining its basic elements in certain ways. Accordingly, organisational design refers to the process of coordinating the structural elements of organisations in the most appropriate manner.

Classical and neoclassical approaches: The quest for the one best designIt is not difficult to realize that for organisations to function effectively, their designsmust not be static, butdynamic—changing in response to various conditions (e.g., governmental regulations, competition, and so on.). As obvious as this may be to us today, the earliest theorists interested in organisational design paid little attention to theneedfororganisationstobeflexible.Instead,theyapproachedthetaskofdesigningorganisationsasasearchfor “the one best way,” seeking to establish the ideal form for all organisations under all conditions – the universal design. Previously, we described the efforts of organisational scholars such as Max Weber and Frederick Taylor. These theorists believed that effective organisations were ones that had a formal hierarchy, a clear set of rules, specialisation of labour, highly routine tasks, and a highly impersonal working environment. You may recall that Weber referred to this organisational form as a bureaucracy. This classical organisational theory has fallen into disfavor because it is insensitive to human needs and is not suited to a changing environment.

Unfortunately, the “ideal” form of an organisation, according to Weber, did not take into account the realities of the world within which it operates. Apparently, what is ideal is not necessarily what is realistic.


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In response to critics, and with inspiration from the Hawthorne studies, the classical approach to organisation theory soon gave way to more attention on human relations. Several organisational theorists attempted to improve upon the classical model, which is why their approach is labeled the neoclassical organisational theory. This approach recognises that economic effectiveness is not the only goal of an industrial organisation, but also employee satisfaction. The key to effectiveness, they argued, was not rigidly controlling people’s actions, but actively promoting their feelings of self-worth and their importance to the organisation. The neoclassical approaches called for organisations to be designedwithflathierarchicalstructures(minimizingmanagerialcontroloversubordinates)andahighdegreeofdecentralisation (encouraging employees to make their own decisions). Indeed, such design features may well serve the underlying neoclassical philosophy.

Like the classical approach, the neoclassical approach also may be faulted on the grounds that it promoted a single bestapproachtoorganisationaldesign.Althoughtheremaybemanybenefitstoflat,decentraliseddesigns,toclaimthat this represents the universal or ideal form for all organisations would be naive. In response to this criticism, more contemporaryapproachestoorganisationaldesignhavegivenuponfindingtheonebestwaytodesignorganisationsin favour of identifying different designs that are appropriate for the different circumstances and contexts within which organisations operate.

3.7 Strategic Alliances: A Continuum of Inter-organisational RelationshipsThethreetypesofstrategicalliancesidentifiedheremaybedistinguishedwithrespecttotheirlocationalongacontinuum ranging, at one end, from weak and distant, to strong and close, at the other end.

Mutual Service Consortia

(similar companies pool resource to sharejointbenefit; e.g.: hospital share

expenses to build and operate an MRI unit)

Joint Ventures

(different companies work togethertofulfillthe

same opportunity, each requiring the other)

Value Chain Partnership

(different companies that rely on each other for theirbusiness;e.g.: customer supplier

relationship)

Closeness of RelationshipWeak and

distant

Strong and

close

Fig. 3.5 Continuum of inter-organisational relationships

Mutual service consortiaAt the weak end of the scale are strategic alliances known as mutual service consortia. These are arrangements betweentwosimilarcompaniesfromthesameorsimilarindustriestopooltheirresourcestoreceiveabenefitthatwouldbetoodifficultorexpensiveforeithertoobtainalone.Often,thefocusissomehigh-techcapacity,suchasan expensive piece of diagnostic equipment that might be shared by two or more local hospitals (e.g., magnetic-resonance imaging, or MRI unit).

Value-chain partnershipsAt the opposite end of the scale is the strongest and closest type of collabouration, referred to as a value-chain partnership. These are alliances between companies in different industries that have complementary capabilities. Customer-supplier relationships are a prime example. In such arrangements one company buys necessary goods

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and services from another so that it can do business. Because each company greatly depends on the other, each party’s commitment to their mutual relationship is high. As noted earlier, Toyota has a network of 230 suppliers with whom it regularly does business. The relationship between Toyota and these various companies represent value-chain partnerships.

Joint venturesBetweenthesetwoextremesarejointventures.Thesearearrangementsinwhichcompaniesworktogethertofulfilopportunities that require the capabilities of the other. For example, two companies might enter into a joint venture if one has a valuable technology and the other has the marketing knowledge to help transform that technology into a viable commercial product.

Thereareclearbenefitstobederivedfromformingjointventures.Theseprimarilycomeintheformofimprovedtechnology, widened markets, and greater economies of scale (e.g. sharing functional operations across organisations). However,asyoumightimagine,forthesebenefitstoberealised,ahighdegreeofcoordinationandfitmustexistbetween the parties, each delivering on its promise to the other.


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SummaryEvery organisation has a culture which is different from its structure. The structure can be seen on paper, but •culture can only be experienced.There are several factors working at several levels which project the culture of an organisation, which need to •beanalysedforbetterefficiencyofanorganisation.As the sum total of the knowledge, beliefs, values, perceptions, attitudes, traditions, customs that are shared by •the groups and resulting into individual and group behaviour of the people working in the organisation over a period of time is known as Edgar Schiene.Organisation charts provide information about who reports to whom – what is known as hierarchy of •authority.Thethreetypesofstrategicalliancesidentifiedheremaybedistinguishedwithrespecttotheirlocationalonga•continuum ranging, at one end, from weak and distant, to strong and close, at the other end.Organisations may have many levels, in which case their structure is considered tall, or only a few, in which •casetheirstructureisconsideredflat.

ReferencesBlock-2 Organisational Design• . [Pdf] Available at: <http://www.egyankosh.ac.in/bitstream/123456789/646/1/Unit-4.pdf> [Accessed 6 October 2010].Cox, T., 1993. • Cultural Diversity in Organisations: Theory, Research, and Practice. 1st ed., Berrett-Koehler Publishers.Roberts, J., • The Modern Firm: Organisational Design for Performance and Growth, Oxford University Press, USA. Parsons, B., 2012, • Aligning strategy, structure and organisational culture, [Video online] Available at: <http://www.youtube.com/watch?v=2_5JlmmQk20> [Accessed 21 August 2012].2011, • Organisation Structure presentation, [Video online] Available at: <http://www.youtube.com/watch?v=BF2H40sIrUw&feature=related> [Accessed 21 August 2012].Roy, H., • What is Organisational design?, [Online] Available at: <http://www.inovus.com/organisa.htm> [Accessed 21 August 2012].

Recommended ReadingJones, G. R., 2009. • Organisational Theory, Design, and Change. 6th ed., Prentice Hall.Daft, R. L., 2009. • Organisation Theory and Design, 10th ed., South-Western College Pub.Burton, R. M., 2006. • Organisational Design: A Step-by-Step Approach, Cambridge University Press.

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Self AssessmentDivision of labour begins to occur at ____________ of an organisation.1.

birth stage a. youth stageb. middle stagec. maturity staged.

Which of the following is not a determinant of organisational design?2. Sizea. Technologyb. Strategyc. Peopled.

Which of the following statements is false?3. Departmentalisation permits utilisation of expertise of people.a. Departmentalisation creates a feeling of authority and job appraisal among employees.b. Departmentalisationhelpsfixtheauthority-responsibilityrelationshipofthemanagers.c. Departmentalisation facilitates performance appraisals by managers.d.

An organisation can be depicted by a line diagram, which is called ____________4. organisation charta. organisational culture b. mechanistic systemsc. organisational systemd.

Organisational __________ is very important in shaping the organisational behaviour and organisation 5. culture.

knowledge requirements a. technologyb. instabilityc. designingd.

The matrix organisation combines two forms of departmentalisation _________and ___________.6. line and staffa. authority and responsibilityb. function and productc. knowledge and technologyd.


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Match the three levels of organisational culture:7. Level 11. valuesa. Level 22. Assumptions of employeesb. Level 33. Trademarkc. Level 44. Companyd.

1-c, 2-a, 3-b, 4-da. 1-d, 2-b, 3-a, 4-c b. 1-b, 2-d, 3-a, 4-c c. 1-c, 2-b, 3-a, 4-dd.

Which of the following is a characteristic of organisational culture?8. Organisational context a. Physical environmentb. Communication systemsc. Responsibilityd.

An important factor affecting the organisational culture is_______________.9. reward systema. values, norms and systems b. pragmatic policiesc. conflictmanagementd.

7- point scale for assessment of organisational climate has been devised by10. .Edgar Schienea. Stephen Robbinsb. Schneider and Snyder c. Rensis Likertd.

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Chapter IV

Perceptions, Values and Attitudes

Aim


elucidate importance of perception and values in relation with organisational behaviour•

explain perceptual skills•

explicatethesignificanceofattitudeinorganisationalbehaviour•

Objectives


examine the processes and factors affecting perception•

classify types of values•

explain the co relation between perception and personality•

Learning outcome

At the end of this chapter, the students will be able to:

enlist the factors affecting perception•

understand the sources of value and types of values•

understand theories, components, functions, factors, characteristics, manifestations of attitude•


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4.1 IntroductionWe process and interpret the incoming raw data in the light of our experiences, in terms of our current needs and interests, in terms of our knowledge, expectations, beliefs and motives. Our behaviour is not only a function of our personality, values, and preferences, but also of the situation.

Perception is how we make sense of our environment in response to environmental stimuli. Understanding the perception process gives us clues to understand human behaviour. Perception is:

The way you look at people/objects/situations in the world•A process of receiving, selecting, organising, interpreting, checking, and reacting to the sensory stimuli or data •so as to form a meaningful and coherent picture of the worldAn active psychological process by which individuals receive, organise and interpret their sensory impressions •in order to give meaning to their environment

Which of the circle in the middle is bigger?

Fig. 4.1 Diagrammatic representation of perception

Atthefirstglance,theoneoftheleftmayappearbigger,buttheyareinfactthesamesize.Wecomparethemiddlecircle on the left to its surrounding circles, whereas the middle circle on the right is compared to the bigger circles surrounding it.

What is an attitude? Asnotedabove,weallholddefiniteviewsaboutthingsandpeople—feelingsreferredtoasattitudes.Formally,wedefineanattitudeasarelativelystableclusteroffeelings,beliefs,andbehavioralpredisposition(i.e.,intentions)towardsomespecifictarget.Attitudesconsistofthreemajorcomponents:anevaluativecomponent,acognitive component, and a behavioural component.

The evaluative componentThe most obvious component of attitudes is how we feel about something. This aspect of an attitude, its evaluative component, refers to our liking or disliking of any particular target—be it a person, thing, or event (what might be called the attitude object, the focus of the attitude). You may, for example, feel positively or negatively toward your boss, your co-workers, or the company logo. In fact, anything can be an attitude object.

Ourdefinition refers to “relatively stable” feelings toward attitudeobjects.Temporary shifts in feelings aboutsomethingmaynotreflectchangesinattitudes.Rather,attitudesaremoreenduring.So,forexample,althoughpeoplesometimeschangetheirmembershipinpoliticalparties,theirbeliefaboutaspecificissuethatmaybeendorsedbya particular political party is generally consistent over time. Hence, the attitude toward it is stable.

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The cognitive componentAttitudes involve more than feelings, however, they also involve knowledge things you know about an attitude object. For example, you might believe that your company just lost an important contract, or that a co-worker doesn’t really know what he is doing. These beliefs may be completely accurate or inaccurate, but they still comprise the personal knowledge that contributes to your attitude. Such beliefs are referred to as the cognitive component of attitudes.

The behavioural componentNaturally,whatyoubelieveaboutsomethingandthewayyoufeelaboutitwillinfluencethewayyouarepredisposedto behave. For example, if you believe that your boss is a crook, and you dislike this, you may be inclined to report him to the authorities and to begin looking for a new job. What we are saying is that attitudes have a behavioural component—a predisposition to act in a certain way. It is very important to caution that a predisposition may not perfectly predict one’s behaviour. In our example, although you may dislike your unethical boss, you might not take action against him for fear of retaliation, and you might not take a new position if a better one isn’t available. Hence, your intention to act a certain way may or may not dictate how you actually will behave. Indeed, as we shall see, attitudes are not perfect predictors of behaviour.

4.1.1 Process of PerceptionFollowing is the process of perception:

Confrontation with stimulus: • The individual comes face to face with another individual/group/situation/ problem.Registration: • Individual registers the stimulus and its gravity. Observation: • The individual registers the stimulus and its gravity. Perceptual Selection: • Individual selects data.Perceptual Organisation: • Incoming information is organised and patterned in a systematic manner.Perceptual Grouping: • Certainaspectsofthedataarefiltered.Interpretation: • Individual tries to understand the real meaning of the situation and interpret it for effects.Evaluation and Feedback: • Individual evaluates the strengths and weaknesses in a situation and gives a quick feedback to the sensory and motor mechanics for the next step.Response: • A positive, negative or neutral response in terms of reaction.

4.1.2 Factors Affecting PerceptionThere are two types of factors affecting perception as mentioned below.

Internal factorsThe below mentioned table discusses details of internal factors.

Factors Importance

1. Family background Good family background cultivates good perception

2. Educational background Good educational background cultivates good , rational perception

3. Work experience Interactions at all levels at work affect perception.

4. Social needs Satisfaction or dissatisfaction of social needs affects perception

5. Psychological needs Satisfaction or dissatisfaction of psychological needs affects perception


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6. Interests Individual’s interest in people/situation affects perception favorably or unfavourably.

7. Expectations Fulfilmentorun-fulfilmentofexpectationsaffectsperceptionfavorablyorUnfavorably.

8. Learning Higher learning experiences result in better perception

9. Values Good values cultivates good perception

10. Personality Good personality cultivates good perception

Table 4.1 Internal factors

External factorsThe below mentioned table discusses details of external factors.

Factors Importance

1. Familiarity Familiarity with other person/object/situation helps positive perception, and vice-versa.

2. Status High status in organisation/society are perceived with respect

3. Appearance Good appearance and body language give a positive perception

4. Intensity The intensity of the stimulus determines the attention and perception of the individual.

5. Size The size of the stimulus (person or object) attracts attention and affects perception.

6. Contrast A contrast between the person/object affects perception

7. Motion The person /object that are moving or changing attract more attention and affect perception.

8. Repetition A stimulus that is repeated gets more attention and perceived better.

9. Novelty An unusual sight is noticed and perceived quickly.

Table 4.2 External factors

4.1.3 Developing Perceptual Skills: Suggestions for developing perceptual skillsFollowing are the points for developing perceptual skills

Make accurate self-perception•Enhance self-esteem•Be empathetic•Avoid perceptual errors•Encourage free communication•Have positive attitude•Practice good impression management•

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4.1.4 Rules of Perception and PersonalityFollowing are the rules of perception and personality:Secure people perceive others as warm individuals and not as indifferentThoughtful people do not make extreme judgments about others, but can perceive grey areasSelf-accepting peopleperceive things favorably, perceive themselves as accepted, and accept others easily

4.2 ValueValuesaremanifestedthroughthebehaviouroftheindividualandthegroup.Theyhaveagreatinfluenceontheperceptions, attitudes and motivational patterns of the people.

The worth of a person, an object or a situation which enables distinguishing between the right and the wrong, •good and badValues provide the standards of competence and morality•Valuestranscendspecificobjects/situations/persons•Values are relatively permanent and resistant to change•Values are most central to the personality of an individual•Values shape and determine behaviour in a group/society•

4.2.1 Sources of ValuesSources of values are depicted in the below diagram

Family

Goverment Society

Workplace

Sourcesof

value

Fig. 4.2 Sources of values

4.2.2 Manifestations of Values

Freedom•Pleasure•Mutual respect•Honesty•Obedience•Equality•Peace•


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Co-operation•Harmony•Democracy•Discipline•Mutual trust•

Organisations are highly concerned about these behaviours as they are very costly. The expenses involved in selecting and training employees to replace those who have resigned can be considerable.

Even unscheduled absences can be expensive. Although voluntary turnover is permanent, whereas absenteeism is a short-term reaction, both are effective ways of withdrawing from dissatisfying jobs. Research has shown that the moredissatisfiedpeoplearewiththeirjobs,themorelikelytheyaretobeabsentandtoresign.However,wealsoknow that these relationships are not especially strong. In other words, job satisfaction is only modestly correlated with voluntary turnover and absenteeism. The reason for this is simple: Job dissatisfaction is likely to be only one of manyfactorsresponsibleforsomeone’sdecisiontoresignortostayoffthejob.Forexample,adissatisfiedemployeemayshowupforworkdespitefeelingdissatisfiedifshebelievesthatitiscriticalforhertoperformcertaintasks.However, still others may care so little that they would not bother to show up anyway. Thus, job satisfaction is not a particularly strong predictor of absenteeism.

The same may be said with respect to turnover. Whether or not people will quit their jobs is likely to depend on several factors. Among them is likely to be the availability of other jobs. So, if conditions are such that alternative positions are available, people may be expected to resign in response to dissatisfaction. However, when such options arelimited,voluntaryturnovermaybealessviableoption.Hence,knowingthatoneisdissatisfiedwithhisorherjob does not automatically suggest that he or she will be inclined to quit. Indeed, many people stay on jobs that they dislike.

4.2.3 Types of ValuesTypes of values are depicted in the below mentioned diagram

Types ofValue

Terminial Instrumental

e.g. Comfortablelife, world of peace, etc

e.g. Ambition,courage, etc

Fig. 4.3 Types of values

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4.2.4 Classifications of ValuesValuesareclassifiedasfollows:

Theoretical values: discovering truth through a critical approach•Aesthetic values: form, shape, colour, etc•Social values: service, help, etc•Religious values: religion, culture, etc•Politicalvalues:power,influence,etc•Economic values: exchange, application, etc.•

4.3 AttitudeAnattitudereferstoouropinions,beliefs,andfeelingsaboutdifferentaspectsofourenvironment.Attitudeisdefinedin various ways as follows:

Attitudeisaframeofmindthatinfluencesindividualbehaviour•Attitude is the mental posture in response to people, objects or situations•It is the combination of one’s beliefs, perceptions and values•It is a learned pre-disposition to respond consistently in a favourable or unfavourable manner with respect to a •given individual, group, object or situationAttitude is the basic foundation of human behaviour•

4.3.1 Theories of AttitudeCognitive Consistency theories: These theories are concerned with inconsistencies, which arise between the related beliefs,knowledgeandevaluationaboutanobject.Thesearefurtherclassifiedas:

Theory Theory stated by Importance

Balance theory Heider and Newcomb

It states that an imbalance in the system leads to change in attitude. It causes stress.

Congruity theory Osgood andTannenbaum

It focuses on evaluation of the source with associative or dissociative assertion. It states that incongruity leads to changes in attitudes.

Affective cognitive consistency theory Rosenberg This theory is based on the interrelationship between values and

attitudes.

Cognitive Dissonance theory Leon Festinger

It is based on the study of various types of attitudes. It highlights the disagreement between two cognitions and the individual’s attempt to change either of the two.

Functional Theory Katz and Kelman It assumes that attitudes are related.

Social judgmentTheory

Sheriff and Hoveland

It assumes that attitudes can produce distortions. Social judgment can mediate for a change in attitude.

Table 4.3 Theories of attitude


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4.3.2 Components of AttitudeFollowing are the components of attitude

Cognitive Component: • It is based on the real or assumed knowledge about the object and is governed by a rational process.Affective component: • It is based on non-rational commitments and can be positive, negative or neutral towards the object.Behavioural component: • It is based on the pre-disposition to act. It determines and controls the actual behaviour of the individual.

FunctionsCharacteristics Factors

valence, Muliplicty, Need, Relationship, Centrality

family backgroundEarly socialisationEducationalBackgroundWork experiencesGroupaffiliationPersonal experiences

Knowledge functionAdaptive functionEgo-DefensivefunctionValue-expressivefunction

Job satisfaction

Organisationalcommitment

Attitude

Manifestations

Fig. 4.4 Components of attitude

4.3.3 Significance of AttitudeStudying concept of attitude is important part of organisational behaviour, for following reasons:

Determine goals•Reconciles contradictions•Organises facts•Affects employer-employee relations•Affects health/safety/welfare•Determines loyalty and integrity•Facilitates communication•Affects organisational change•Creates/avoidsconflicts•Affects inter-personal relationships•Influencesmoraleandmotivation•Facilitates learning•Affects job satisfaction•Affects job performance•

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Determines organisational culture•Affectsorganisationalefficiencyandeffectiveness•Affects the quality of life•

Dopeoplegenerallyliketheirjobs?Despitewhatyoumayhearinthenewsaboutdissatisfiedworkersgoingonstrikeorevenactingviolentlytowardtheirsupervisors,overall,peoplearequitesatisfiedwiththeirjobs.Infact,surveys have found that the percentage of people reporting satisfaction with their jobs averages between 80 and 90percent.Thesefeelings,reflectingattitudestowardone’sjob,areknownasjobsatisfaction.Asjobsatisfactionseems to play an important role in organisations, it makes sense to ask: What factors contribute to job satisfaction? As we will point out, a great deal of research, theory, and practice bears upon this question.

Theories of job satisfaction and their implicationsAlthough there are many different approaches to understanding job satisfaction, two particular ones stand out as providing our best insight into this very important attitude—the two-factor theory of job satisfaction, and value theory.

Herzberg’s two-factor theory of job satisfactionThereisnomoredirectwaytofindoutwhatcausespeople’ssatisfactionanddissatisfactionwiththeirjobsthantoask them. Over 30 years ago Frederick Herzberg did just this. He assembled a group of accountants and engineers and askedthemtorecallincidentsthatmadethemfeelespeciallysatisfiedandespeciallydissatisfiedwiththeirjobs.His results were surprising: Different factors accounted for satisfaction and dissatisfaction


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SummaryValuesareclassifiedas theoreticalvalues,aestheticvalues, socialvalues, religiousvalues,politicalvalues,•economic values.Components of values are cognitive, affective, and behavioural.•Individual values are a dominant force that shape and determine individual personality.•Attitude is studied at all levels, since it concerns people at all levels in the organisation.• Our behaviour is not only a function of our personality, values, and preferences, but also of the situation.•Perception is how we make sense of our environment in response to environmental stimuli.•The most obvious component of attitudes is how we feel about something. This aspect of an attitude, its evaluative •component, refers to our liking or disliking of any particular target—be it a person, thing, or event (what might be called the attitude object, the focus of the attitude).Attitudes involve more than feelings, however, they also involve knowledge things you know about an attitude •object.Valuesaremanifestedthroughthebehaviouroftheindividualandthegroup.Theyhaveagreatinfluenceon•the perceptions, attitudes and motivational patterns of the people.

ReferencesAshraf, T., • Organizational Behavior, [Pdf] Available at: <http://www.unesco.org/education/aladin/paldin/pdf/course02/unit_14.pdf> [Accessed 28 August 2010].Fincham, R. & Rhodes, P.S., 2005• . Principles of organizational behaviour, 4th ed., Oxford University Press,.Powers, W. T., 2005. • Behaviour: The Control of Perception, 2nd ed., Benchmark Publications, Inc. Prof. Kanda, A., • Lecture 18: Organisational behavioural issues, [Video online] Available at: <http://www.youtube.com/watch?v=YVaTyQHNqdU> [Accessed 27 August 2012].Dr. Ahmad, M., • Organisational behaviour, [Video online] Available at: <http://www.youtube.com/watch?v=1SEbAh-Gc0g> [Accessed 27 August 2012].Richard, M., • Journal o service marketing, [Online] Available at: <http://www.emeraldinsight.com/journals.htm?articleid=855698> [Accessed 27 August 2012].

Recommended ReadingHill, N. & Stone W., 2007. • Success through a Positive Mental Attitude Publisher: Pocket.Maxwell, J. C., 2006. T• he Difference Maker: Making Your Attitude Your Greatest Asset, 1st ed., Thomas Nelson.Anderson, M., 2004. • The Power of Attitude, Thomas Nelson.

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Self AssessmentWhich of the following is not a step in process of perception?1.

Registrationa. Interpretationb. Learningc. Responsed.

Internal factor that may affect perception is ___________2. sizea. motionb. social needs c. appearanced.

External factor that affects perception is ___________3. educational backgrounda. Familiarityb. work experiencec. expectationsd.

Match the following:4.

Theoretical values1. Shapea.

Aesthetic values2. Reasoningb.

Social values3. Customc.

Religious values4. Helpd. 1-b,2-a,3-d,4-c a. 1-c,2-a,3-d,4-b b. 1-b,2-d,3-a,4-cc. 1-b,2-a,3-c,4-dd.

Which of the following statements is false?5. Self-accepting people perceive things favourably.a. Self-accepting people perceive themselves as accepted.b. Self-accepting people accept others easily.c. Self-accepting people make extremed. judgments.


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Match the following6. Balance theory1. Katz and Kelmana.

Congruity theory2. Leon Festingerb.

Affective cognitive consistency theory3. Osgood and Tannenbaumc.

Cognitive Dissonance theory4. Rosenbergd.

Functional Theory5. Heider and Newcombe. 1-e,2-c,3-d,4-b,5-a a. 1-a,2-c,3-d,4-b,5-e b. 1-e,2-d,3-c,4-b,5-a c. d.1-e,2-c,3-d,4-a,5-bd.

Which of the following is not a factor affecting attitude?7. Family backgrounda. Personal experiences b. Stimulic. Work experiencesd.

Attitudeissignificantinorganisationalbehaviourbecauseofwhichofthefollowing?8. Determines goalsa. Determines loyaltyb. Determines organisational culturec. Determines organisational structured.

As per the social judgment theory, a change in an individual’s attitude is possible the__________ and 9. ___________.

balance and harmonya. learning and de-learningb. ego and value- expressionc. communication and relationshipsd.

Which of the following is not a characteristic of attitude?10. Valencea. Multiplicity b. Centralityc. Rational Commitmentd.

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Chapter V

Personality, Morale and Motivation

Aim


explain the determinants of personality•

explicate the relation between personality and organisational behaviour•

introduce the concept of motivation•

Objectives

The objective of the chapter is to:

explain the factors affecting personality•

enlist the types of personalities•

determine indicators and determinants of morale•

Learning outcome


understand personality, morale and motivation•

identify determinants and types of personality•

describe the indicators and determinants of morale•


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5.1 IntroductionThe term “personality” is derived from the Latin word ‘persona’, which means “Mask”. Among the Greeks, actors used masks to hide their identity on the stage. This dramatic technique was later adopted by the Romans to whom persona denoted “as one appears to others”, not as one actually is.

DefinitionsStephen Robbins: A sum total of the effect, actions and reactions of an individual to other individuals, groups or situations.

Gordon W. Allport: Personality is the dynamic organisation within the individual of those psycho-physical systems that determine his unique adjustment to his environment.

Thus the concept of personality includes: appearance and behaviour, internal awareness of the self as a force, organisation of measurable traits (inner and outer)

5.2 Determinants of PersonalityThere are two determinants that affect personality

Biological factors•Family factors•

Thesetwofactorshavebeenillustratedinthebelowmentionedfigures.

Biological Factors

HeredityBrain

Physical characteristics and maturity rate.

Pleasurable v/s painful areas can be manipulated by Electrical stimulation

of the brain (ESB)

Planning on the left hemisphere and managing on the right is done by split

brain psychology(SBP)

Fig. 5.1 Determinants of personality- biological factors

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Following diagram illustrates the family factors

Family Factors

Family Atmosphere

Every individual is a Complete

Person

Independence and

Aggression

Early Formative

Years

Social Culture

Social Factors

Every individual is

different

Competition and

Co-operation

Social Status

Basic Discipline

Every individual- situation interaction

is different

Beliefs, Perceptions,

Values and Attitudes

Traditions, and Customs

Cold, non- Stimulating Atmosphere

Every Situation is Different

Family,society, Organisations, Work,money

Traditions, and Customs

Loving, Stimulating Atmosphere

Difference in situation, demands, behaviour

& personality

Situational Factors

Fig. 5.2 Determinants of personality-family factors

5.2.1 Personality Traits (Cattell’s Traits Test)Following are the personality traits

Warmth•Reasoning•Emotional Stability•Dominance•Liveliness•Rule-Consciousness•Social Boldness•Sensitivity•Vigilance•Abstractedness•Privateness•Apprehension•Openness to Change•Self-Reliance•Perfectionism•Tension•


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5.2.2 Types of PersonalityVarious types of personalities are discussed in the below mentioned table:

Type A Type B

Chronic sense of time emergency Easy going

Impatience Passive

High achievement orientation Lack of achievement

Strong competitive drive Lack of competitive drive

High ambition level Lack of ambition

Aggressive behaviour Submissive behaviour

Quick responses Restrained responses

Quick decision making and actions Slow decision making and actions

Fast speech and walk Slow speech and walk

Low level of tolerance High level of tolerance

Table 5.1 Two types of personalities, Type A and Type B

5.2.3 Personality and Organisational BehaviourThe personality of an employee and organisational behaviour are inter-related and inter-dependent. Organisational behaviour of the employees depends upon the attitude and personality of the individual.

Certain factors that need consideration to understand organisational behaviour of employees may be mentioned as follows:

Locus of control:•Internal Locus of control: Individual believes that his/her behaviour is guided by his/her personal decisions �and effortsExternal Locus of control: Individual believes that his/her behaviour is guided by fate, luck, or other external �circumstancesAffected attributes: Motivation, performance, leadership, etc �

Need pattern:•Achievement – need to achieve goals �Affiliation—needforco-operation �Autonomy—need for freedom to make decisions �Dominance—desire to exercise authority �

Introversion v/s Extroversion:•Introverts: Turns inwards, are quiet, unsocial, etc �Extroverts: Turn outward, lively, active, etc �

Authoritarianism: Love authority, rigid, judgmental, lack of tact, etc•Machiavellianism (Niccolo Machiavelli): Tendency to manipulate others for own goals, pragmatic, try to gain •control, etc.Self esteem: Indicator of capability, importance, success, etc.•Self-monitoring: Ability to adjust with external factors•Tolerance for ambiguity: The degree of tolerance to uncertainty, ability to change with undue stress.•

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Risk taking: time taken for decision making, subsequent actions for moderate risks.•Work-ethics orientation: Balance between work and home results in a rational manager.•

5.3 Morale and MotivationThe morale of the people is an extremely important factor in the success or failure of organisations, be it running a businessorprovidingaservicetosociety.Moraleisdefinedbyvariousscholarsasfollows.

Oxford Dictionary: • Morale is the prevailing mood and spirit conducive to willing and dependable performance.Edward Flippo:• Morale is the mental condition or attitude of an individual or a group which determines their willingness to co-operate or otherwise.Dale Yoder• :Moraleisthedegreeofzeal,enthusiasm,willingnessandconfidenceofanindividualoragroupto accomplish a task.

Indicators of moraleConfidence of individual members in leadership

Suggestions to improve morale

Indiscipline•Grievances•Lack of communication•Poor listening•Lackofconfidence•Aggression•Lack of mutual trust•Lack of co-operation•High accident•Lowefficiency•

confidenceofindividual•members in the organisational goalsconfidenceofindividual•members in their fellow workersconfidenceofindividual•members in organisational efficiencyworking conditions ( wages, •job security,etc)

sound organisation structure•proper manpower planning•systematicandscientific•recruitment and selection procedureappropriate training and •development programmessystematicandscientific•performance appraisal systemefficientandefective•organisational communication systemsympathetic •

Fig. 5.3 Indicators, determinants and suggestions for morale

High morale leads to high job satisfaction, which leads to high productivity and vice-versa.

5.4 MotivationMotivation is a force or an impulse which makes a man move physically and mentally to achieve certain goals. Highmotivationleadstohighjobsatisfactionandinturntohigherefficiency.

DefinitionsMichael Julius: A process of stimulating the self or sub ordinates to get into the desired course of action.

Dubin: A force or impulse that moves a person to start and continue an action to accomplish a certain goal.

March and Simon: A function of needs and drives that makes a person takes action to achieve the desired goals. Performance = (Ability X motivation)


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5.4.1 Mechanism of MotivationAllmotivationstartswithanunsatisfiedneed.Theurgetosatisfytheneedresultsinthedrivewhichcontinuestillthe ‘goal’ is achieved.

DeprivationNeed•

Barrier/BlockadeOvert/ covert•

DriveDirection•

GoalAchievement•

Fig. 5.4 Mechanism of motivation

5.4.2 Motivation and FrustrationAnindividual ismotivatedtoworktoachieveacertaingoal in thesequencedescribed; it isnoteasyinactualpractice. Individual almost always meets with some barriers in achieving goals. This leads to frustration. Frustration is manifested in one or more following behaviours:

Aggression• : A reaction to a situation where in one’s motives are blocked, causing oneself to turn against the barriers in terms of verbal or physical injury to the object/person/group causing the barrier.Withdrawal• :Leavingthefield inwhichfrustration,anxietyorconflict isexperienced,eitherphysicallyorpsychologically.Fixation• : An unreasonable stubbornness, maintaining a persistent non-adjusting reaction. The behaviour is repeated even though the cues indicate that the response is not appropriate to the situation.Compromise:• This can be seen in terms of a change in needs or goals, with a ‘give’ and ‘take’ attitude.

5.4.3 Basic Theories of MotivationTheoriesofmotivationcanbeclassifiedasfollows:

Traditional theory• :ItisbasedonscientificmanagementbyF.W.Taylorwhoadvocatedthatitisthemanager’sprerogativetodecidethequantity,quality,methodofdoingjobsandthesystemoffinancialcompensationofworkHuman relations theory• : It is based on the research of Elton Mayo and associates at the Hawthorne plant of the Western electric Co. near Chicago. They proved that the output of employees does not depend only on extrinsic factors like working conditions alone, but also on intrinsic factors of satisfaction of their social and psychological needsThe human resources theory• : It is based on the studies conducted by experts like Abraham Maslow, Fredrick Herzberg, David McClelland, Douglas McGregor, Peter Drucker, etc

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5.4.3.1 Abraham Maslow’s TheoryAbraham Maslow, an American psychologist, found that work motivation arises from the hierarchy of needs. These needscanbeorganisedonfivedifferentlevels.Asoneneedissatisfied,thenextlevelcomesintoplay.

Self- actali-

sation need (fulfillment,work

itself is motivation)

Esteem need (status,achievement,etc)

Social need (affection, friendship,etc)

Security need (job security,protection,etc)

Physiological need (food, clothing, etc)

Fig. 5.5 Maslow’s hierarchy of needs

Thefirsttwolevels,i.e.,thephysiologicalneedandthesecurityneedscanbeconsideredaslowerorderneeds,•while the next three levels can be considered as higher order needsThelowerorderneedsareprimarilysatisfiedexternallybyeconomicrewards.Whilethehigherorderneedsare•satisfiedinternallythroughsocialandpsychologicalrewardslikeacceptance,jobsatisfaction,etcTheneedsidentifiedareinter-related,inter-dependentandoverlapping.Eachhigherlevelneedemergesbefore•the lower level need disappears

5.4.3.2 Fredrick Herzberg’s Two Factor TheoryAccording to Herzberg, all needs and their satisfaction do not motivate employees. This can be considered a modificationofMaslow’s theory.Thereare twosetsof factors inmotivatingaperson:Motivating factorsandMaintenance factors.


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Maintenance factors(Extrinsic/ Dissatisfiers) Motivating factors(Intrinsic/Satisfiers)

Personal life Status

Salary Recognition

Job security Advancement

Working conditions Responsibility

Company policy and administration Possibility and growth

Quality of supervision Achievement

Inter-personal relationships Work itself

Table 5.2 Motivating factors and maintenance factors

Motivational factors are directly related with job and are ‘content-oriented’•Their presence highly motivates the person, but their absence does not cause dissatisfaction•Maintenance factors are ‘context-oriented’•Theirpresencedoesnotsignificantlymotivatetheperson,buttheirabsencecancausedissatisfaction.Their•presence prevents dissatisfaction and maintains a certain minimum level of motivation and affect performance level.

Maslow’s theory Herzberg’s theory

Refers only to needs or motives Deals with goals or incentives

Hierarchy of needs is sequentially ordered in terms of importance Does not have any sequential preference.

Any need can be a motivator until relatively unsatisfied

Only intrinsic factors of the higher order serve as motivators.

Table 5.3 Differences between Maslow’s and Herzberg’s theory

Helping others on the job, as you might imagine, often goes beyond merely being polite and attentive. Indeed, it is a key element in making work a pleasant experience and a productive one as well. With this in mind, we will nowdiscuss twoimportantformsofprosaicallybehaviour—acts thatbenefitothers inorganisations.Theseareorganisational citizenship behaviour and whistle-blowing.

Organisational citizenship behaviour: Above and beyond job requirementsImagine the following scene:

It’s approaching 5:00 p.m. and you’re wrapping up your work for the day. You’re anxiously looking forward to getting home and relaxing. While this is going on, the scene is quite different at the next cubicle. One of your colleagues has been working feverishly to complete an important report, but appears to have hit a snag. She now has little hope of getting the report on the boss’s desk before he leaves for the day—that is, without your help. Pitching in to help your colleague is something you don’t have to do. After all, there’s nothing in your formal job description that makes it necessary for you to do so. What’s more, you’re quite weary after your own long day of work.

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Tips for promoting OCBGiven the importanceofOCB, itmakes sense tohighlight some specificwaysof encouraging these formsofbehaviour. Several potentially useful suggestions may be made.

Go out of your way to help others: The more you help your colleagues, the more likely they will be to help you. •Soon, before you know it, with everyone helping everyone else, prosaically behaviour will become the norm that is, a widely accepted practice in the company.Be an example of conscientiousness: Employees are inclined to model the citizenship behaviour of their •supervisors. If, as a manager, you set a good example by coming to work on time and by not making personal phone calls, your subordinates may be expected to follow your lead. Although it might not be this easy, at least you have some credibility when you do insist that your subordinates refrain from these forms of poor citizenship. Make voluntary functions fun: It only makes sense that employees will not be motivated to attend voluntary •meetings or corporate functions of one kind or another (e.g., picnics, award banquets) unless these are enjoyable. People are more likely to show the good citizenship associated with attending corporate functions when the company makes it worthwhile for them to do so. After all, the more desirable it is for someone to be prosaically, the more likely that individual is to be a good organisational citizen.Demonstrate courtesy and good sportsmanship: When something goes wrong, don’t “make a stink,” rather, •just “grin and bear it.” Someone who “blows up” at the slightest provocation is not only a poor organisational citizen, but is one who may well discourage good citizenship among others.

5.4.3.3 David McClelland’s TheoryThere are three types of needs that motivate a person

Need for Achievement (nAch) NeedforAffiliation(nAff) Need for Power (nPow)

High desire for achievement•Moderate risks•Pre occupation with the task•Satisfaction of •accomplishmentNeed for immediate feedback.•

A desire to belong to a group•A desire to interact with •othersA desire to be liked by others•A desire to make routine jobs •more bearable A desire to live and work •together

A desire to control others•A desire to manipulate others•political orientation •Leadershiptoinfluence•othersHigh nPow with negative •orientation v/s low nPow with positive orientation

Fig. 5.6 David McClelland’s theory

5.4.3.4 Douglas McGregor’s TheoryIt states that organisations are psychological entities that can be effectively managed by their assumptions about motivation, human nature, and behaviour. Motivation implies certain assumptions, generalisations and hypotheses by the management relating to human behaviour in organisations. This can be done on the basis of either of the two sets of assumptions as Theory X and Theory Y as follows:

Theory X Theory Y

An average human being has inherent dislike for work and will avoid it, if he can.

The expenditure of physical and mental effort is as natural as play or rest.

Most people lack ambition, dislike responsibility, prefer to be directed and want job security

Man exercises self-direction and self-control in the service of the objectives to which he is committed

Most people must be controlled and threatened with punishment to get better results from them.

The degree of commitment is proportional to the rewards associated with the achievement.


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Under proper conditions, human being learns to accept and seek responsibility.

The capacity to exercise a high degree of imagination and creativity in the solutions of organisational problems is widely distributed amongst population.

Intellectual potentialities of human beings are partially utilised in modern industrial life.

Table 5.4 Theory X and Y

5.5 Co-operation: Providing Mutual AssistanceThus far, our discussion of prosocial behaviour has focused on one persons’ giving help to another. However, it probablyisevenmorecommoninorganisationstofindsituationsinwhichassistanceismutual,withtwoormoreindividuals, teams, or organisations working together toward some common goal. Such efforts are known as acts of co-operation. As you might imagine, co-operation is essential to organisational success. Unless individuals, teams, and entire organisations cooperate with each other, all are likely to fall short of their objectives. With this in mind, it makes sense to consider the factors that bring about co-operation, both within organisations and between themaswell.Accommodatingisaconflicthandlingintention.Thedimensionsofconflicthandlingintentionsareassertiveness and co-operation. An intention is what mediates between one’s actual behaviour and one’s emotions and perceptions. Accommodating involves placing another person’s interests above one’s own. It represents the minimum of assertiveness and the maximum of co-operation. For example, the seller should accommodate the customer by providing the product the customer wants.

5.6 Co-operation within OrganisationsSeveral factors affect the tendency for people to cooperate with each other within organisations. We will review some of the key ones here.

5.6.1 The Reciprocity PrincipleWe all know that “the Golden Rule” admonishes us to do unto others as we would have them do unto us. However, this doesn’t describe exactly the way people behave.

Instead of treating others as we would like to be treated, most people tend to treat others the way they have been treated in the past by them. In short, we are more inclined to follow a different principle: “an eye for an eye and a tooth for a tooth.” Social scientists refer to this as the principle of reciprocity—the tendency to treat others as they have treated us.

To a great extent, the principle of reciprocity describes the way people behave when cooperating with others. The key task in establishing co-operation in organisations is straightforward: Getting it started. Once individuals or teams have begun to cooperate, the process may be largely self-sustaining. That is, one unit’s co-operation encourages co-operation among the others. To promote co-operation, therefore, managers should attempt to get the process underway.

5.6.2 Trust: Believing in OthersEarlier, we described trust as a determinant of organisational citizenship behaviour. As you might imagine, it also is a powerful cause of co-operation as well. In particular, the kind of trust that encourages co-operation involves demonstrating that you really care for someone and that you will be there for them emotionally when needed (termed affect based trust). Managers who have helped their subordinates in the past and who interact with them a great deal are likely to enjoy high amounts of affect-based trust among these subordinates. And, workers are more likely to cooperate with such supervisors than those with whom they have not developed affect-based trust.

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5.6.3 Personal OrientationAs you know from experience, by nature, some people tend to be more cooperative than others. In contrast, other people tend to be far more competitive—interested in doing better than others in one way or another. Not surprisingly, scientistshavefoundthatpeoplecanbeclassifiedreliablyintofourdifferentcategorieswithrespecttotheirnaturalpredisposition toward working with or against others. These are as follows.

Competitors - People whose primary motive is doing better than others, besting them in open competition.•Individualists - People who care almost exclusively about maximizing their own gain, and who don’t care •whether others do better or worse than themselves.Co-operators - People who are concerned with maximizing joint outcomes, getting as much as possible for •their team.Equalisers - People who are interested primarily in minimizing the differences between themselves and •others.

5.7 Organisational Reward SystemsIt is not only people’s predisposition that leads them to behave cooperatively, but differences in the nature of organisational reward systems as well. Despite good intentions, companies all too often create reward systems that lead their employees to compete against each other. This would be the case, for example, in a company in which various divisions sell products that compete with each other. Sales representatives who receive commissions for selling their division’s products have little incentive to help the company by attempting to sell another division’s products. In other words, the company’s reward system discourages cooperative behaviour.

With an eye toward eliminating such problems and fostering co-operation, many of today’s companies are adopting team-based rewards. These are organisational reward systems in which at least a portion of an individual’s compensation is based on the performance of his or her work group. The rationale behind these incentive systems is straightforward: People who are rewarded for contributing to their groups’ performance will focus their energies on groupperformance.Inotherwords,theywillcooperatewitheachother.Althoughtherearemanydifficultchallengesassociated with setting up team-based reward programs that are manageable (e.g., ones based on measurable rewards) andthatpeoplefindacceptable(e.g.,onesthatareadministeredfairly),companiesthathavemetthesechallengeshavereapedbenefitsintheformsofincreasedjobsatisfactionandproductivity.

5.8 Co-operation between OrganisationsThus far, we have discussed only co-operation between people within organisations. However, co-operation also takes place between organisations. Indeed, the term inter-organisational coordination is used to describe instances inwhichindependentorganisationscoordinatetheiractionstoattainmutualbenefit.

Although we ordinarily think of organisations as competing with each other, there also are conditions under which organisations cooperate with one another. This generally occurs when organisations face external threats that can be countered by combining forces with others. For example, middle-eastern nations joined forces in creating OPEC to help control prices in the petroleum market. Another example may be seen in today’s health care industry. Although organised differently, many of today’s hospitals have joined forces by using a central management to help save rapidly-rising expenses and to avoid the costly duplication of high-tech equipment and services arrangements known as multihospital consortia.


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SummaryAnindividualismotivatedtoworktoachieveacertaingoalinthesequencedescribed;itisnoteasyinactual•practice. Individual almost always meets with some barriers in achieving goals.There are several factors that need to be considered to understand the individual’s behaviour in an organisation •which is dealt with in the chapter.Douglas McGregor’s theory states that organisations are psychological entities that can be effectively managed •by their assumptions about motivation, human nature, and behaviour.According to Herzberg, all needs and their satisfaction do not motivate employees. This can be considered a •modificationofMaslow’stheory.Therearetwosetsoffactorsinmotivatingaperson:MotivatingfactorsandMaintenance factors.Thedimensionsofconflicthandlingintentionsareassertivenessandco-operation.Anintentioniswhatmediates•between one’s actual behaviour and one’s emotions and perceptions.Managers who have helped their subordinates in the past and who interact with them a great deal are likely to •enjoy high amounts of affect-based trust among these subordinates. Workers are more likely to cooperate with such supervisors than those with whom they have not developed •affect-based trust.The rationale behind these incentive systems is straightforward: People who are rewarded for contributing to •their groups’ performance will focus their energies on group performance.Thedimensionsofconflicthandlingintentionsareassertivenessandco-operation.Anintentioniswhatmediates•between one’s actual behaviour and one’s emotions and perceptions.

ReferencesBuchanan,D. A. & Huczynski, A. A., 2010. • Organizational Behaviour, 7th ed., Pearson Education.Fincham, R. & Rhodes, P.S., 2005• . Principles of organizational behaviour, 4th ed., Oxford University Press.Dr. Wicker, • Organisational behaviour lecture 2, [Video online] Available at: <http://www.youtube.com/watch?v=Kd9oznIM2Ag> [Accessed 27 August 2012]. Dr. Don, • Organisational behaviour, [Video online] Available at: <http://www.youtube.com/watch?v=R1lA9TH3XS4> [Accessed 27 August 2012].Blum, J., • Building organisation, [Online] Available at: <http://www.gsb.stanford.edu/news/research/Building-Organisations-That-Work.html> [Accessed 27 August 2012].Blanding, M., • Collaborating across cultures, [Online] Available at: <http://hbswk.hbs.edu/item/6687.html> [Accessed 27 August 2012].

Recommended ReadingPowers, W. T. 2005. • Behaviour: The Control Of Perception, 2nd ed., Benchmark Publications, Inc.Maxwell, J.C., • The Difference Maker: Making Your Attitude, 1st ed., Thomas Nelson.Anderson, M., • The Power of Attitude. Thomas Nelson.

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Self AssessmentConcept of personality does not include ______________1.

appearance and behaviour,a. internal awarenessb. organisation of measurable traits,c. organisational cultured.

Which of the following trait is not enlisted in Cattell’s trait test?2. Warmtha. Reasoningb. Intolerancec. Tensiond.

The type B personality characteristics do not include _______________3. impatiencea. submissive behaviourb. restrained responsesc. lack of ambitiond.

Which of the following characteristics is not a part of Type A?4. High ambitiona. Easy goingb. Aggressive behaviourc. Quick responsesd.

The tendency to manipulate others for own goals is known as5. .locus of control a. authoritarianismb. Machiavellianismc. risk takingd.

_______________ is one of the important biological factors determining personality6. Traditionsa. Basic disciplineb. Low tolerancec. Heredityd.

_____________ is not an indicator of morale.7. Sub ordinationa. Lack of communicationb. Aggressionc. Lack of co-operationd.


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Which of the following statements is false?8. Motivation is a process of stimulating the self or sub ordinates to get into the desired course of action.a. Motivation is a force or impulse that moves a person to start and continue an action to accomplish a certain b. goal.Motivation is a function of needs and drives that makes a person take action to achieve the desired goals. c. Motivation is the mental condition or attitude of an individual or a group which determines their willingness d. to co-operate or otherwise.

The human relations theory is based on the study by ______________9. F.W. Taylor a. Elton Mayob. Peter Duckerc. Stephen Robbinsd.


Abraham Maslow1. All needs and their satisfaction do not motivatea.

Fredrick Herzberg2. Motivation is also by generalisations of managementb.

David McClelland3. Motivation is due to desire to satisfy needs.c.

Douglas McGregor4. Motivationisbyneedforachievement,affiliationandpower.d. 1-a, 2-c, 3-d, 4-ba. 1-c, 2-d, 3-a, 4-b b. 1-c, 2-a, 3-d, 4-bc. 1-c, 2-a, 3-b, 4-dd.

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Chapter VI

Group Dynamics and Conflict Management

Aim


explain the approaches to inter-personal relationships•

elucidate “group dynamics”•

explicateconflictmanagement•

Objectives


enlist the factors affecting inter-personal relationships•

explain advantages and disadvantages of group, and its stages of development•

explicatethesources,typesandfactorsofconflict•

Learning outcome

At the end of this chapter, you will be able to

understand interrelationships, groups and group dynamics•

identify factors, characteristics, functions of interrelationships, groups and group dynamics•

describesources,typesandfactorsofconflict•


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6.1 Interpersonal RelationshipsTo understand the subject of group dynamics, it is necessary to understand the meanings of inter-personal relationships, groups and relevant aspects of work groups.

Achievement of organisational goals requires good inter-personal relationships, which are the basis of co- operation.

6.1.1 Approaches to Interpersonal RelationshipsThere are two approaches to study inter-personal relationships.

Needs approachAnindividualmaybeattractedtoother,ifneedsaresatisfied.Whileotherunsatisfiedneedsactasmotivatingfactor.As per the complementary needs theory, needs are mutually complementary. For example, a dominant person gets along well with a submissive person.

Exchange approachIn organisational behaviour, people sub consciously think of the exchange value of relationships and continue with the same as long as rewards outweigh the costs.

6.1.2 Factors Influencing Interpersonal RelationshipsTherearevariousfactorsthataffectinter-personalrelationshipwhichareshowninthefigurebelow.

Factors

Role of parents

Self identity

Communication

Basic of attraction

Role of rewards

Reciprocity

Norms and rules

Social inteligence

Fig. 6.1 Factors influencing interpersonal relationships

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6.2 GroupGroupisdefinedbyvariousscholarsasfollows:

Robert Bales: • A number of persons engaged in interaction with each other in face to face communication.Raymond Cattell: • A collection of individuals in which existence of all is necessary for the satisfaction of individual needs.Otto Kline berg: • Twoormoreindividualswhointeractandinfluenceeachotherforacertaintime.Krech and Crutchfield: • Twoormore individuals forming a social unitwith specific roles and explicitpsychological relationships among themselves.

6.2.1 Reasons for Joining a Group, Characteristics of a Group, Functions of GroupsKindly refer to the below mentioned pictorial representation of various reasons for joining a group, its characteristics and functions.

Reasons for joining a group

Characteristics of a group

Functions of groups

Satisfaction of psychological needs•Satisfaction of social needs•Satisfaction of security needs.•

Two or more individuals come together for work•there are common goals, objectives, tasks.•Interaction with each other.•Sense of belonging•Norms and values are shared.•

Satisfaction of security needs of memebers.•satisfaction of cognitive needs of memebers•satisfaction of psychological needs of memebers•Satisfaction of social needs of memebers•Satisfaction of achievement needs of memebers•

Fig. 6.2 Reasons for joining a group, characteristics of a group, functions of groups

6.2.2 Advantages and Disadvantages of GroupsThe advantages and disadvantages of groups are discussed below:

Advantages Disadvantages

Give better knowledge of information Activities are more time consuming

Havethebenefitofcollectivewisdom Exert pressures on members to conform to group norms.

Group decisions are better accepted by members. Can experience domination by members of groups

Group decisions have a better legitimacy Hazy responsibilities

Facilitate problem solving Decisions are delayed

Table 6.1 Advantages and disadvantages of groups


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6.2.3 Stages of Group DevelopmentVarious stages of group development are discussed below:

Forminga feeling of uncertainty

Stormingresistance by some, due to

lack of inter-personal communication

NormingBettr group cohesiveness

AdjourningIn case of temporary groups

they are dissolved.

PerformingFully functional group , ready

to perform.

Fig. 6.3 Stages of group development

6.3 Group DynamicsIt is a series of interaction between people working in the organisation.

Itmaybedefinedas:Thewayinwhichagroupisformed,organisedandconductedfortheachievementofcommongoals. It implies common thinking, consensus decisions and consistent actions for common goals.

6.3.1 Factors of Group DynamicsFollowing are the factors of group dynamics

Organisational policies/strategies: Liberal policies may facilitate group dynamics•Organisational culture: A healthy and co-operative organisational culture helps group dynamics•Rulesandregulations:Verystrictrulesandregulationsdonotpermitgroupdynamicstoflourish•Physical working conditions: Healthy working conditions affect group dynamics positively•Limitations to resources: Adequate quality and quantity of resources help group dynamics•Authority-responsibility relationship: authority –responsibility should be balanced, for effective group •dynamicsOrganisational communication: Open communication channels are helpful•Motivation of the members: High morale and high motivation help positive group dynamics•Inter-personalconflicts:Cordialinterpersonalrelationsarehelpful•Management attitude: A balance between autocratic and democratic style is the best for positive group •dynamics

6.4 Conflict ManagementAnydisagreementbetweentwoormorepeopleisthefirststepoftheprocessofconflict.

DefinitionsChung and Meggison: • A struggle between incompatible needs/wishes/ideas/interests of people.Stephen Robbins• : A process in which an effort is purposefully made by an individual/group which results in frustrating the accomplishments of the other’s goals and furthering interests.

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6.4.1 Sources of Conflict, Factors Involved in Conflict, Types of ConflictsVariousaspectsofconflictarediscussedbelow:

Sources of conflict Factors involved in conflict Types of conflicts

Goals•

Values•

Cognition•

Emotions•

Behaviour•

Antecedent conditions •

(differences in opinions ,etc)

Affective states •

( stress, anxiety,etc)

Cognitive states •

(beleifs,values,etc)

Conflictingbehaviour(overt•

reaction,etc)

Intra-personalconflicts •

(personal probles leading

to stress)

Inter-personalconflicts.•

(disagreement between two

or more people)

Intra-groupconflict(conflict•

withiin a group)

Inter-groupconflict•

(disagreement between

two or more groups)

Fig. 6.4 Sources of conflict, factors involved in conflict, types of conflicts

6.4.2 Two Views of ConflictFollowingarethetwoviewsofconflicts

Traditional View Modern View

It is bad, negative and must be avoided at any cost It is natural ,inevitable

Is caused by trouble-makers, boat-rockers and prima-donnas.

Depends upon physical and structural factors of the system

Scapegoats are unavoidable It is inevitable part of change, innovation and organisational development

Can be resolved by formal authority/command An optimum level can be good for growth, progress and development

Can be resolved by delay in decision-making, bringing the defence mechanism in action.

It need not be avoided or encouraged, but managed properly.

Table 6.2 Views on conflict

6.4.3 Functional Conflict (wanted/constructive)Followingarethefeaturesoffunctionalconflicts

It is based on logical and objective thinking, and consensus decision making•Clarifiesgoalstoallconcernedparties•It helps in identifying problems, settling differences through discussions•Ithelpsinapplicationofsystematicandscientificproblemsolving•It improves perceptions and attitudes of people•


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It promotes creativity and innovation•It encourages group cohesiveness and better team work•It provides with a system of checks and balances within an organisation•It improves morale and motivation of people•It improves overall organisational performance•

6.4.4 Dysfunctional Conflict (unwanted/destructive)Followingarethefeaturesofdysfunctionalconflicts

Implies illogical and subjective thinking•Goals of the team are not clear to all•Hamperssystematicandscientificproblemsolving•Focuses on short-term goals at the cost of long-term goals•Creates stress and strain•It creates a lack of mutual trust among members of the group•Decision-makingisreplacedbyinfighting•It reduces co-operation between members of group•It discourages creativity and innovation•Adversely affects overall organisational performance•

6.4.5 Conflict ManagementIn modern organisations

Thenumberofconflictsshouldbekeptatminimum•Conflictsarekeptatfunctionalandrationallevel•Conflictsdonothindertheoverallefficiencyoftheorganisation•

These goals can be achieved using following suggestionsAvoidance:Thisinvolveswithdrawal/suppressionoftheconflict•Smoothening:Emphasisingcommoninterestsamongconflictingparties•Strengtheningtheresources:Strengtheningtheresourcescanhelpresolvetheconflicts•Super-ordinategoals:Creatingagoal thatcannotbeachievedwithout theco-operationofeachconflicting•partiesProblemsolving:Face-tofacemeetingmayhelpinresolvingconflicts•Compromise: Each party gives up something of value, to achieve something else and thus helps to resolve •conflictamicablyAltering Human variables: Using training and development programmes can alter perception, values and •attitudesAuthoritativecommand:Managementmayuseitsformalauthoritytoresolveconflict•Alteringstructuralvariables:Changingformalstructureandinteractionpatterncanhelpresolvingconflict•

6.4.6 Resolving ConflictsJohari WindowThe Johari Window is a communication model that can be used to improve understanding between individuals within a team or in a group setting. Based on disclosure, self-disclosure and feedback, the Johari Window can also be used to improve a group’s relationship with other groups.

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Developed by Joseph Luft and Harry Ingham (the word “Johari” comes from Joseph Luft and Harry Ingham), there are two key ideas behind the tool:

Thatindividualscanbuildtrustbetweenthemselvesbydisclosinginformationaboutthemselves;and•That they can learn about themselves and come to terms with personal issues with the help of feedback from •others.

The Johari Window

Known to self

Know to other

Not know to other

Open Blind

UnknownHidden

Not known to self

Fig. 6.5 Johari window

Quadrant 1: Open areaWhat is known by the person about himself/herself and is also known by others.

Quadrant 2: Blind area or Blind spotWhat is unknown by the person about himself/herself but which others know. This can be simple information, or can involve deep issues (for example, feelings of inadequacy, incompetence, unworthiness, rejection) which are difficultforindividualstofacedirectly,andyetcanbeseenbyothers.

Quadrant 3: Hidden or Avoided areaWhat the person knows about him/her that others do not.

Quadrant 4: Unknown areaWhat is unknown by the person about himself/herself and is also unknown by others.

6.4.7 Conflict Resolving OutcomesTherecanbefourconflictresolvingoutcomes:

Lose-lose •Win-lose •Lose win •Win-win•


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6.5 Group Development over Time: The Five-Stage ModelAllgroupschangeovertimeasgroupmemberscomeandgo;grouptasksandgoalschange;andgroupmembersgain experience in interacting with each other. One well-known model of group development is Bruce Tuckman’s five-stagemodel.Themodel’sstagesare:

Forming: Group members try to get to know each other and establish a common understanding as they struggle •to clarify group goals and determine appropriate behavior within the group.Storming:Characterisedbyconsiderableconflict—groupmembersresistbeingcontrolledbythegroupand•disagree about who should lead the group or how much power the leader should have.Norming: Group members really start to feel that they belong to the group, and they develop close ties with •one another.Performing: The group is ready to tackle group tasks and work toward achieving group goals—the real work •gets accomplished in this stage.Adjourning: The group disbands after having accomplished its goals. Research indicates that though possible •insomecases,notallgroupsgothroughtheTuckman’sfivestagemodelorintheordersuggested.

6.6 Social Loafing: “Free Riding” When Working with OthersHave you ever worked with several others helping a friend move into a new apartment, each carrying and transporting partoftheloadfromtheoldplacetothenewone?Or,howaboutsittingaroundatablewithothersstuffingpoliticalcampaign letters into envelopes and addressing them to potential donors? Although these tasks may seem quite different, they actually share an important characteristic: Performing each requires the efforts of only a single individual, but several people’s work can be pooled to yield greater outcomes. Because each person’s contributions are summed together with another’s, such tasks have been referred to as additive tasks. If you’ve ever performed additive tasks – such as the ones described here – there’s a good chance that you found yourself working not quite as hard as you would have if you did them alone. Does this sound familiar to you’? Indeed, a considerable amount of research has found that when several people combine their efforts on additive tasks, each individual contributes less than he or she would when performing the same task alone.

As suggested by the old saying, “Many hands make light the work,” a group of people would be expected to be more productive than any one individual. However, when several people combine their efforts on additive tasks, eachindividual’scontributiontendstobeless.Fivepeopleworkingtogetherrakingleaveswillnotbefivetimesmoreproductivethanasingleindividualworkingalone;therearealwayssomewhogoalongfora“freeride.”Infact, the more individuals who are contributing to an additive task, the less each individual’s contribution tends to beaphenomenonknownassocialloafing.

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SummaryGroup dynamics is the way in which a group is formed, organised and conducted for the achievement of common •goals.The Johari Window is a communication model that can be used to improve understanding between individuals •within a team or in a group setting.Group dynamics is a series of interaction between people working in the organisation.•Allgroupschangeovertimeasgroupmemberscomeandgo;grouptasksandgoalschange;andgroupmembers•gain experience in interacting with each other.Onewell-knownmodelofgroupdevelopmentisBruceTuckman’sfive-stagemodel.•Performing each requires the efforts of only a single individual, but several people’s work can be pooled to •yield greater outcomes.Fivepeopleworkingtogetherrakingleaveswillnotbefivetimesmoreproductivethanasingleindividual•workingalone;therearealwayssomewhogoalongfora“freeride.”

ReferencesBuchanan,D. A. & Huczynski, A. A., 2010. • Organizational Behaviour, 7th ed., Pearson Education.Fincham, R. & Rhodes, P.S., 2005• . Principles of organizational behaviour, 4th ed., Oxford University PressThe Johari Window• . [Online] Available at: <http://www.mindtools.com/CommSkll/JohariWindow.htm> [Accessed 9 October 2010].Gerardin, G., • Organisational behaviour session one, [Video online] Available at: <http://www.youtube.com/watch?v=aTjsBh0HDqY> [Accessed 27 August 2012].Prof. Champoux, J., • Management of organisational behaviour, [Video online] Available at: <http://www.youtube.com/watch?v=nRLZFJIl1Ls> [Accessed 27 August 2012].Meyer. E., • Managing teams, [Online] Available at: <http://knowledge.insead.edu/INSEAD-knowledge-managing-confrontation-in-multicultural-teams-120521.cfm> [Accessed 27 August 2012].

Recommended ReadingSchulman, L., 2010. • Dynamics and Skills of Group Counseling. 1st ed., BrooksBarbara, A., 2006. • ConflictManagement:APracticalGuide toDevelopingNegotiation Strategies,1st ed., Prentice HallWeeks, D., 1994. • TheEightEssentialStepstoConflictResolution, 1st ed., Tarcher.


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Self AssessmentWhich of the following is not a basis of behaviour?1.

Similarity a. Rewardsb. Familiarityc. Proximityd.

People sub consciously think of the ____________ of relationships.2. exchange valuea. social valueb. religious valuec. cultural valued.

Factorsinfluencinginter-personalrelationshipsdonotinclude__________.3. role of parentsa. self-identityb. physical strengthc. reciprocityd.

People join groups for_________.4. satisfaction of social needsa. religionb. authorityc. responsibilityd.

Whichofthefollowingisthefirststepintheprocessofgroupdevelopment?5. Storminga. Performingb. Adjourningc. Formingd.

Group dynamics implies common thinking,_________ and consistent actions for common goals6. consensus decisions a. common decisionsb. consistent decisionsc. continuous decisionsd.

The Johari Window is a __________ model.7. management attitude a. motivation of membersb. communicationc. Compromised.

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Match the following8. Inter-personalconflicts1. conflictwithinagroupa.

Intra-groupconflict2. disagreement between two or more groupsb.

Intra-personalconflicts3. disagreement between two or more peoplec.

Inter-groupconflict4. personal problems leading to stressd. 1-c,2-a,3-d,4-ba. 1-a,2-c,3-d,4-b b. 1-c,2-a,3-b,4-dc. 1-c,2-d,3-a,4-bd.

In modern organisations, which of the following is false?9. Thenumberofconflictsshouldbekeptatminimuma. Conflictsarekeptatfunctionalandrationallevelb. Conflictsdonothindertheoverallefficiencyoftheorganisationc. Creativity and innovation are not encouraged.d.

To understand the subject of group dynamics, it is necessary to understand the meanings of inter-personal 10. relationships,______________ and relevant aspects of work groups.

groupa. subjective thinking b. problem solvingc. strengthening resourcesd.


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Chapter VII

Leadership

Aim

The aim of the chapter is to:

explain the theories of leadership•

elucidate the importance of leadership in business organisations•

explicate the types and styles of leadership•

Objectives


enlist the advantages and disadvantages of different styles of leadership•

explain the objectives of team building•

explicate the pre-requisites, process of effective team building•

Learning outcome


understand leadership and team building•

identify and apply different theories and styles of leadership•

describe the characteristics and values of team building•

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7.1 LeadershipLeadershipcanbedefinedasfollows:

Keith Davis: • Theartandabilityofapersontopersuadeotherstoseekachievementofgroupgoalsefficientlyand effectively.Robert Tannenbaum: • Theartandscienceofinfluencingandmotivatingagroupofpeopleinagivensituationtowards common organisational goals

7.1.1 Leadership in Business OrganisationsLeadership qualities in a manager play an important role in achieving organisational goals

Importance of leadership may be summarised as follows:It helps building up the group•Ithelpscreatingconfidenceamongmembers•It motivates group members•It inculcates discipline•It helps building work teams•Ithelpsimprovingorganisationalefficiency•

7.1.2 Evolution of LeadershipThis can be best illustrated in the following manner

The Coercive stage( 1st stage based on

authority and power)

The mechanistic stage (2nd stage, based on

organisational structures, technologyandscientific

management)

The Psychological stage ( 3rd stage based on

psychological factors in human behaviour)

• Dictatorialstyleofworking

•Autocraticandcentralised decision making

•forcetoobeyinstructions of the superior

•Fearofjobinsecurity

•Unwillingacceptance by followers

• Increasingcomplexityof organisational structures

•Rapidchangesintechnology

•Emergencyofscientificmanagement

•Efficiencyasafunctionof working conditions

•Unwillingacceptanceby followers

• Influenceofmaterialfactors on behaviour

• BasedonHawthorneexperiments by Elton Mayo and associates

•Psychologicalfactorsplay a vital role in organisational behaviour

•Extrinsicfactorsof motivation e.g. recognition

•Rewardsaremoreeffective than punishment

•Participationensuresmore committment to the task

Fig. 7.1 Leadership evolution


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7.2 Theories of LeadershipThe major theories of leadership are

Traits theory•Behavioural theories•Contingency theories•

Sub components and sub theories, for these theories are as follows:

7.2.1 Traits Theory (Ordway Tead and Chester Bernard)It is based on the assumption that leadership depends upon the traits of successful leaders.

Features

Strengths

Weaknesses

• Itisatraditionaltheory• Basedonthebeliefthat'leadersarebornandnotmade'• Assumesthatphysiologicalandpsychologicaltraitsofleaders

detrmine success or failure of leadership• Traitsofeffectiveleadership:knowledgeofthejob,intelligence,

courage, creativity, positive attitude, etc

• Banksuponthepersonalqualitiesofleader•Drawsontheinfluenceofthecharismaoftheleader• Thereisanemotionalbondbetweentheleadersandfollowers• Thereisloyaltybyfollowers• Inter-personalrelationshipsamongmembersofthegrouparebetter

• Thetraitsarenotexhaustive• Thereisalackofconsiderationofvarietyofinternalsituations• Thereisalackofconsiderationofvarietyofiexternalsituations• Lackofscopefordevelopmentoffollowers• Possibilityofexploitationoffollowers• Sometraitsofeffectiveleadership

Fig. 7.2 Features, strengths, weaknesses of Trait’s theory

7.2.2 Behavioural TheoriesIt has 3 sub types of theories:

The two- dimensional model•Rensis Likert’s 4 system approach and•Situational theories•

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Each of these types is discussed thoroughly below

Two - dimensional modela) Consideration dimension: The

degree to which the leader considers the feelings of the people vis-a-vis the task

b) Initiating structure dimension: The degree to which the leader considers goal attainment vis-s- vis feelings of the people.

Strengths:Consideration for the behaviour of both leader and follower

consideration to both, the tasks and the feelings of the people

Better planning and delegation of authority

Better organising and utilisation of resources

Better team building and group performance

Weaknesses:Interpersonal relationships vary from time to time and task to task

Organisational behaviour is also a function of psychological factors

Group dynamics plays an important role

Inter-personalconflictsmayaffectgroup performance

Gap in perceptions of the leader and the followers may affect group performance

Fig. 7.3 Two dimensional model


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7.2.3 Rensis Likert’s 4- system Approach

• ThegoalsettinganddecisionmakingiscentralisedControlonbehaviourisstrict• Limiteddownwardcommunication• Fearofpunishmentfordisobedience• Lackofmutualtrust

System 1: Exploitative/ Autocratic Leadership

• Goalsetting,decisionmakingandcontrolsystemsmostlycentralised• Fairamountofdownwardcomunication• Punishmentalongwithoccassionalrewards• CondescendingmutualtrustexistsLackofmutualtrust• Bettermoraleandmotivation

System 2: Benevolent Autocratic Leadership

• Goalsettinganddecisionmakingisdonebyconsultingmembersd•Organisationalcommunicationisbetter• Jobinvolvement,rewardsandpunishmentsarefair• Delegationofauthorityiswithmoderatecontrol• Goodperformanceandproductivity

System 3: Consultative Leadership

• Goalsetting,decisionmakingdonebytotalparticipation•Organisationalcommunicationiswidespread• Igoodinvolvementandco-operation• Thereisextensivedelegationofauthority• Faircontrolwithpositivediscipline• Performanceisexcellent

System 4: Participative Leadership

Fig. 7.4 Rensis Likert’s 4-systems approach

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7.2.4 The Situational Theory

THE SITUATIONAL THEORIESFeatures:

a) Leadership is a result of particular situation

b) A leader in one situation may not be a leader in another situation

c) Leadership is a function of variables in a situation

Strengths:

Situational leaders are more effective

Scope for training and development of new leaders

Weaknesses:

Leadership is unstable and continues as long as the situation continues

Planning is short term and ignores long term effects

Demands re-organisation of resources as per situation

Team building is temporary, changes as per situation

Frequent changes in situation affect leadership and group performance

Fig. 7.5 Situational theory

7.2.5 Contingency Theories

Theory by Fred Fielder Path goal theory of leadership by Martin Evans and Robert House

Life- cycle theory by Paul Hersey and Kenneth Blanchard

Leader member relationship•Task -structure relationship•Leader position power•

Leaders behaviour is •acceptable to sub ordinates so far as it is a source of inspiration and satisfactionLeaderclarifiesthepathtothe•sub ordinates to achieve goalsLeaders behaviour has an •impact on sub ordinates’ motivation, performance and job satisfaction.

Widely practised theories•Close similarity to the •situational or contingency approachLeadership style depends upon •the maturity level of the work groupMaturity , ability and •willingness to take responsibilityTask orientation and relation •orientation work together.

Fig. 7.6 Contingency theories

7.3 Styles of LeadershipThere are three styles of leadership:

Autocratic•Democratic and•Laissez-Faire leadership•


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7.3.1 Autocratic LeadershipIt is based on the belief that authority is the basis for successful leadership.

Sub classifications

Merits

Demerits

Strict autocrat: strict discipline, negative motivation, penalties•Benevolent autocrat: understanding employees, positive •motivation, appreciativeIncompetent autocrat: lack of knowledge, indecisive, etc•

Strong centralised authority•Permits quick decision making•Better discipline•Better job security for sub ordinates•Better job satisfacftion for mediocre sub ordinates•

Lack of motivation leading to frustration among sub ordinates•Complex problems of conflict management, jeopardising •organisation efficiencyDependence on this leadership may cause lack of individual •identityLack of succession planning and development•Disliked by sub ordinates, due to lack of participative decision •making

Fig. 7.7 Sub classifications, merits, demerits of autocratic leadership

7.3.2 Democratic LeadershipDemocratic leadership assumes that participation during planning and decision making is the key to successful leadership.

Merits Demerits

It encourages participation in decision makingParticipation is not meaningful in large and complex organisations, due to lack of understanding of problems.

Decision making is centralised and allows sharing of responsibility

Consensus decision making takes time and delays achievement of results

Appreciation of ideas ensures motivation Sometimes participation may be used to manipulate sub ordinates

Better organisational stability by reducing employee turnoverImproves overall productivity due to better communication and co-ordination.

Table 7.1 Merits and demerits of democratic leadership

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7.3.3 Laissez- Faire LeadershipThe word is of French origin and literally means “let (people) do (as they think best),” It is based on the assumption that the leader is supposed to give only information and guidance to members of the group. Other functions like decision making. Control, responsibility etc are taken care of by the subordinates. Leader has a very minor role to play.

Merits Demerits

Group members have the freedom of decision making Learning takes place by trial and error

Allows sharing of responsibility Tendency to avoid responsibility

Allows self-motivation and training Lack of accountability

No daily interference by the leader Poor discipline and control

Helps to build interpersonal relationships among members Lack of guidance and direction by the leader

Helps team -work Decisionmakingisdifficultincaseofemergencies

Group performance is more by accident than by design.

Table 7.2 Merits and demerits of Laissez- Faire Leadership

7.4 Functions of LeadershipsThere are three basic functions of leadership: Task needs, Group needs, Individual needs.

Setting standards•Building team spirit•Motivating the group•Ensuring communication•Training the group•Maintaining discipline•

Attending to personal •problemsunderstanding individuals•Utilising individual abilities•Appreciating good •performancemotivation towards higher •contribution

Task Needs Group Needs Individual Needs

Definingtasks•Making a plan•Allocating work and •resourcescontrolling quality and •quantityChecking performance•

Fig. 7.8 Functions of leaderships


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7.5 Team BuildingWork teams outperform individuals, especially when the task requires multidisciplinary knowledge, multiple skills, judgment and varied experiences.

A team isA collection of individuals who happen to have the same work place•A collection of individuals who happen to have the same line manager•A collection of individuals who happen to have the same job in the same department•

7.5.1 Team BuildingAprocessofbringingtogethermembersofaworkgroup,definingindividualaswellasgroupgoals,andachievingthedesiredoutputsdefinedasteambuilding.Agroupwhosemembershavecomplementaryskillsandarecommittedto a common purpose or a set of performance goals for which they hold themselves responsible.

The objectives, pre-requisites for team building are as follows:

Objectives

To bring peole together to work•To set goals and priorities more realistically•To improve inter-personal relationships•Toutiliseemployee'stalentscollectively•To achieve organisational goals more efficiently and effectively•

Pre-requisites

identifying orgaanisational goals clearly•Providing necessary resources•Undertaking actual task assignments•Designing rewards/ incentives for the results•Providing whole-hearted support.•

Fig. 7.9 Objectives, pre-requisites for team building

7.5.2 The Process of Team Building following steps are the part of team building

Identificationoftheproblem

Collection of data

Analysis of the data

Planning action

Implementation of decisions

Evaluation and feedback

Fig. 7.10 Process of team building

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7.5.3 Characteristics, Values and Suggestions for Effective Team

Characteristics of effective team Values of a team Building effective

team

Goals and values are •clear to allCommittment of full •contribution to the goalsClimate of mutual trust •and supportOrganisational •communication channels are openWillingness to share •data/informationParticipation in •decision makingCommittment to •implementation of decisionsCommittment to high •performance standardsIndividual differnmces •are handled tactfully

Helps members to •understand goals clearlyIt ensures commitment •to goalsIt improves employee •motivationIt improves •inter-personal communicationIncreases employee job •satisfactionGenerates a better •sense of belongingExpands job skills•Creates organisational •flexibilityEncourages better •creativity and innovationIt helps to improve •organisational efficiency

Set rational and •realistic goalsClarify objectives to all •concernedPrioritse problems and •tasksEnsure provision of all •resourcesSelect the right number •and the right type of people on the teamCreate a cordial and co-•operative climate for sportingDevelop a good leader •for the teamEncourage commitment •to hard workDevelop good inter-•personal relationshipsEncourage mutual •respectKeep organisational •communication channels always open.

Fig. 7.11 Characteristics, values and suggestions for effective team

7.6 Path-Goal Theory: Leaders as Guides to Valued GoalsIndefiningleadership,weindicatedthatleadershelptheirgroupsororganisationsreachtheirgoals.Thisbasicideaplays a central role in path-goal theory of leadership. In general terms, the theory contends that subordinates will react favourably to leaders who are perceived as helping them make progress toward various goals by clarifying the pathstosuchrewards.Specifically,thethingsaleaderdoestohelpclarifythenatureoftasksandreduceoreliminateobstacles will increase subordinates’ perceptions that working hard will lead to good performance and that good performance, in turn, will be recognised and rewarded. And, under such conditions, motivation will be enhanced, which may help enhance performance.

Precisely how can leaders’ best accomplish these tasks? Again, as in the case of LPC contingency theory, the answer is: “It depends.” (In fact, this answer is your best clue to identifying any contingency theory.) In this case, what it depends on is a complex interaction between key aspects of leader behaviour and certain contingency factors. Specifically,withrespecttoleaderbehaviour,path-goaltheorysuggeststhatleaderscanadoptfourbasicstyles:

Instrumental: • anapproachfocusedonprovidingspecificguidance,establishingworkschedulesandrules.Supportive: • a style focused on establishing good relations with subordinates and satisfying their needs. This approach is effective when used with employees who are motivated to work, improve themselves and their abilities, and accomplish goals.Participative: • a pattern in which the leader consults with subordinates, permitting them to participate in decision making.


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Achievement-oriented: • an approach in which the leader sets challenging goals and seeks improvements in performance.Thebenefitstothecompanyoftheachievement-orientedleaderapproachincludegreateremployeeconfidenceandcommitment,moreemployeedecisionmaking,increasedemployeecreativity,morechallengingobjectives, and reduced supervision for employees who work best independently.

According to the theory, these styles are not mutually exclusive. In fact, the same leader can adopt different styles atdifferenttimesandindifferentsituations.(Indeed,asnotedearlierinthischapter,showingsuchflexibilityisoneimportant aspect of an effective leader.) Which of these styles is best for maximizing subordinates’ satisfaction and motivation? The answer depends on several characteristics of the subordinates themselves. For example, if followers arehighinability,aninstrumentalstyleofleadershipmaybeunnecessary;instead,alessstructured,supportiveapproach may be preferable. On the other hand, if subordinates are low in ability, they may need considerable guidancetohelpthemattaintheirgoals.Similarly,peoplehighinneedforaffiliation(thatis,thosedesiringclose,friendly ties with others) may strongly prefer a supportive or participative style of leadership. Those high in the need for achievement may strongly prefer an achievement-oriented leader, one who can guide them to unprecedented levels of success.

The theory suggests that the most effective leadership style also depends on several aspects of the work environment. Specifically,path-goaltheorypredictsthatwhentasksareunstructuredandnonroutine,aninstrumentalapproachbytheleadermaybebestsincemuchclarificationandguidancemightbeneeded.However,whentasksarestructuredand highly routine, such leadership may get in the way of good performance, and may be resented by subordinates who think the leader is engaging in unnecessary meddling.

7.7 Charismatic Leaders: That “Something Special”World history and the history of organisations are replete with leaders that have had extraordinary success in generating profound changes in their followers. Indeed, it is not extreme to suggest that some such people (e.g., Napoleon, Bill Gates, and John Lennon, to name a few) have changed entire societies through their words and actions. Individuals who accomplish such feats have been referred to as charismatic leaders. These are individuals who exert especially powerfuleffectsonfollowersbyvirtueoftheircommandingconfidenceandclearlyarticulatedvisions.

Researchers have found that charismatic leaders tend to be special in a number of important ways.

Severalspecificfactorsdifferentiatecharismaticleadersfromnoncharismaticleaders.Theseareasfollows:Self-confidence:• Charismaticleadersarehighlyconfidentintheirabilityandjudgment.Othersreadilybecomeaware of this.A vision:• A leader is said to have vision to the extent that he or she proposes a state of affairs that improves upon the status quo. He or she also must be able to clearly articulate that vision, and to show willingness to makesacrificestomakeitcometrue.Extraordinary behaviour:• Charismatic leaders are frequently unconventional. Their quirky ways, when successful, elicit admiration.Environmental sensitivity:• Charismatic leaders are highly realistic about the constraints imposed upon them and the resources needed to change things. Consequently, they know what they can and cannot do

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SummaryA team is a collection of individuals who happen to have the same work place, have the same line manager, and •have the same job in the same department.Aprocessofbringing togethermembersof aworkgroup,defining individual aswell asgroupgoals, and•achieving the desired output is known as team building.Indefiningleadership,weindicatedthatleadershelptheirgroupsororganisationsreachtheirgoals.•Specifically,path-goaltheorypredictsthatwhentasksareunstructuredandnonroutine,aninstrumentalapproach•bytheleadermaybebestsincemuchclarificationandguidancemightbeneeded.World history and the history of organisations are replete with leaders that have had extraordinary success in •generating profound changes in their followers.

ReferencesDr. Northouse, P., 2009. Leadership: • Theory and Practice, 5th ed., Sage Publications, Inc.Burns, J. M., 2010. • Leadership (Harper Perennial Political Classics), 1st ed., Harper Perennial Modern Classics.Prof. Akhilsh, K., • Lecture 9: leadership, [Video online] Available at: <http://www.youtube.com/watch?v=lqC2cfwlILg>[Accessed 27 August 2012].Admiral. Mullen, M., • Wharton Leadership lecture, [Video online] Available at: <http://www.youtube.com/watch?v=OD7AfDQhZbw>[Accessed 27 August 2012]Nobel, C.,• Leadership, [Online] Available at: <http://hbswk.hbs.edu/item/7044.html>[Accessed 27 August 2012].Covey, S., • How the best leaders build trust, [Online] Available at: <http://www.leadershipnow.com/CoveyOnTrust.html>[Accessed 27 August 2012]

Recommended ReadingKouzes, J. M. & Posner, B. Z., 2003. • The Leadership Challenge, 3rd ed., Jossey-Bass.Nohria, N. & Khurana, R., 2010. • Handbook of Leadership Theory and Practice, Harvard Business Press.Bassn, B. F. & Bass, R., 2008. • The Bass Handbook of Leadership: Theory, Research, and Managerial Applications, 4th ed., Free Press.


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Self AssessmentWhich of the following is not an importance of leadership?1.

Building up groupsa. Motivating group membersb. Promoting indisciplinec. Improvingorganisationalefficiencyd.

Identify the correct order of leadership evolution2. Psychological stage> mechanistic stage> coercive stage a. Mechanistic stage > psychological stage > coercive stageb. Psychological stage> coercive stage > mechanistic stagec. Coercive stage> mechanistic stage> psychological staged.

Coercive stage of evolution is based on which of the following?3. Authority and powera. Responsibility and powerb. Responsibility and discipline c. Discipline and powerd.

Which of the following is not a feature of mechanistic stage of evolution?4. Increasing complexity of organisational structuresa. Fear of job insecurityb. Influenceofmaterialfactorsonbehaviourc. Rapid changes in technologyd.

Psychological stage of evolution emphasizes on_____________.5. extrinsic factors of motivationa. emergenceofscientificmanagementb. autocratic decision making c. inculcating disciplined.

Which is one of the greatest strength of the traits theory?6. It is a traditional theorya. Inter-personal relationships among group members are better b. Possibility of exploitation of followersc. Participation of followersd.

Identify the dimensions of the two dimensional theory.7. Consideration and initiating structure a. Authority and performanceb. Responsibility and performance c. Authority and disciplined.

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WhichofthefollowingisthefirstsystemofRensisLikert’s4system’sapproach?8. Exploitative autocratic leadership a. Benevolent consultative leadershipb. Consultative leadershipc. Participative leadershipd.

Which of the following is not a major feature of the Situational theory?9. Leadership is a result of particular situation.a. A leader in one situation may not be a leader in another situation. b. Leadership depends on the leader’s age.c. Leadership is a function of variables in a situation.d.

Match the following:10. Contingency theory1. Paul Hersey and Kenneth Blancharda.

Path-goal theory2. Rensis Likertb.

Life cycle theory3. Martin Evans and Robert Housec.

4- systems approach4. Fred Fielderd. 1-c, 2-d, 3-a, 4-b a. 1-d, 2-a, 3-c, 4-b b. 1-a, 2-c, 3-d, 4-bc. 1-d, 2-c, 3-a, 4-bd.


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Chapter VIII

Stress Management

Aim

The aim of the chapter is to:

introduce the concept of stress•

explain the sources of stress•

elucidate the consequences of stress•

Objectives


classify different types of stressors•

enlist different consequences of stress•

explain the process of stress management•

Learning outcome


understand stress and state its ways of manifestations•

identify stress with stressors•

describe consequences of stress•

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8.1 IntroductionStress has myriad meanings to different people. The word stress seems to have originated from the French word ‘destresse’ which means ‘to be placed under narrowness or oppression’.

At one end of the scale, stress represents those challenges, which excite us and keep us on our toes. At the other end of the scale, stress represents those conditions under which individuals have demands made upon them, which theycannotfulfillandleadstoabreakdown.Thus,atoneend,stressisalife-saver,whileattheotherenditisalife-destroyer. Thus, stress needs to be prevented, and well- managed if prevention is not possible.

Stress‘An individual’s reaction to a disturbing factor in the environment’.•‘An adaptive response to an external situation that results into physiological, psychological and behavioral •deviations’.

8.2 Manifestations of StressManifestation of stress can be of any type mentioned below:8.2.1 Positive ManifestationsFollowing are the positive manifestations

Stress is positive when the situation offers an opportunity to gain something.•Eustress is positive stress, which is often a motivator since it helps the individual to achieve peak •performance.Some people have an ability to handle stress, having ways of taking the rough with the smooth.•People who can handle stress can keep a sense of humor, renew their energy and resources so that work life •brings pleasure, satisfaction and reward to them as well as to others.

8.2.2 Negative ManifestationsFollowing are the negative manifestations

Distress is negative stress when it is associated with a host of physiological, psychological and other behavioral •problems.Negative stress can be manifested in different ways: sleeplessness, head-aches, backaches, loss of appetite, •highBloodpressure,lackofconcentration,anxiety,tension,lossofself-confidence,etc.•People, who are chronically overstressed, are no fun to work with. They may become irritable, miserable and •self-absorbed.

8.3 Causes of StressStress is always associated with ‘demands’ and ‘constraints’.

8.3.1 External Demands / Expectations

What are the demands?•Are they real or virtual•What are the sources of the demands?•Can we control them•If yes, how’ and to what extent?•What are the strengths and weaknesses in the demands?•What are the opportunities and threats in the demands?•What would happen if the demands are not met?•


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8.3.2 Personal Capacities

How do we react to the demands•Is it necessary to modify our reactions to the demands•Can we differentiate between the real and virtual demands•Canourreactions/responsesbenefitusinthelongrun•

When the demand is way below the capacity, we may feel under-stimulated. When the demand is way above the capacity, we may feel over-stretched. Managing stress is to balance between external demands and your personal capacity to cope with them.

8.4 Sources of StressIn order for successful management of day-today stress, it is necessary to understand the major sources ofstress,whichcanbebroadlyclassifiedasfollows:

Individual stressors•Group stressors•Organisational stressors•

Roleconflicts:lackofroleclarity,poorself-image,etc•Lack of authority: lackof delegation, etc•Poor leadership:lack of team- building etc•Perfectionism: unrealistic goals, etc•

Poor interpersonal relationships : very strong/unsympathetic/, etc•Group dynamics: lack of group cohesiveness, sense of belonging, etc•

Intra-organisational factors: improper organisational structure, lackof communication facilities, , etc•Unrealistic task demands: Job design, job analysis, , etc•Unsatisfactory working conditions: inordinately long working hours,lack of natural sunlight,etc•Unnecessary/outdated procedures: too much and unnecessarypaper work, etc•Uncertainty and insecurity : lack of job security, etc•Unclear job descriptions: lack of proper job analysis, etc•Poor career prospects: organisational status of the job, etc•Lack of organisational communication: lack of proper systems,grapevine/rumours, etc•Unscientificperformanceappraisalsystem:lackofscientificsystems,training,etc•

Individual Stressors

Group Stressors

Organisational Stressors

Fig. 8.1 Sources of stress

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8.5 Consequences of StressTheconsequencesmaybeclassifiedintwotypes,PhysiologicalandPsychological.Physiologicalandpsychologicaleffects of stress go hand-in-hand and are complementary. They vary from organisation to organisation, situation to situation, time to time and person to person.

8.5.1 Physiological ConsequencesThe body’s reactions to stress-demands are useful. The human body has evolved over thousands of years to meet external threats and challenges.

Someofthecommonphysiologicalconsequencesofstressmaybebrieflysummarisedasfollows:

Short term effectsSpeedingupofreflexes•Improved performance•Increased muscle function•Lower load for the digestion system•Stomach troubles•Cooling of muscles•Increased breathing rate•Reduced sensitivity to minor injuries•Reduction in allergic reactions•Reduced sexual desire/activity•

Long- term effectsLong- term effects•Loss of weight•High/Low Blood pressure•Delayed blood clotting•Cardiovascular disorders•Arteriosclerosis•Exhaustion•Heart attack•Diabetes•Damage to the kidneys•Lower resistance of the immune system•Depression in sensory perceptions/•responsesImpotency/Sterility•

Fig. 8.2 Physiological consequences of stress


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Emotional effects Increase in tension, reducing •

the ability to relax by switching off worries and anxiety,

Increase in Hypochondria: •imaginary complaints and lack of feeling of well-being and good health,

Changes in personality traits: •indifferent attitude, over-sensitivity, etc.

Moral and emotional •behaviour: sexual behaviour, emotional outbursts, etc.

Fall in self-esteem: a feeling of •incompetence, worthlessness, etc.

Increase in problems of •speech: stuttering, stammering, hesitancy,etc.

Diminishing interest and •enthusiasm: abandoning short-term goals and life objectives, etc.

Behavioural effects Increase in problems of speech: •

stuttering, etc. Diminishing interest and •

enthusiasm: abandoning short-term goals and life objectives, etc.

Increase in absenteeism: real or •imaginary illnesses, etc.

Increase in drug abuse: alcohol,, •etc.

Disturbance in sleep patterns: •either lack of sleep or disturbed sleep.

Cynicism: an increasing •tendency to be over-critical and sarcasticabout superiors, etc.

Ignorance of new developments: •new people,

Superficialproblem-solving:•temporary and stop-gap solutions are offered, lack of detailed thinking, lack of follow-up, a ‘giving-up’ tendency.

Lackofself-confidence:decrease•inconfidencelevel,avoidingresponsibilities, etc.

Unexpected and bizarre •behavioural patterns: odd mannerisms,

Unpredictable and uncharacteristic •behaviour, etc.

Cognitive effects Decrease in concentration •

resulting in diminishing powers of observation

Increase in distractibility •resulting in loss of the thread of the thinking process,

Deterioration of memory. •Short term as well as long term

Reduction in the response •speed,

Increase in error rate resulting •in snap and hurried decisions and

Errors in manipulative and •cognitive tasks,

Deterioration in planning •and organising, disabling the mind to assess accurately existing and future conditions,

Increase in delusions and •thought disorders resulting into reduced, powers of objectivity, reality testing and a confused thought process

Fig. 8.3 Psychological consequences of stress

8.6 Stress ManagementIt is not possible to eliminate stress completely from our day-to-day working life. But, it is, possible (and also necessary) that we learn to manage stress and its effects on our body and mind. In this process, we have to cope with stress and to keep the physiological and psychological effects at minimum levels to avoid their ill effects on our performance. This process is called Stress Management, which consists of mainly 3 stages:

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8.6.1 Process of Stress ManagementIt consists of the following stages

Our action depends upon the intensity and the source of the stressors

Knowledge of the problem and the sources of stress is the key to stress managment

It is a simple decision to do something

Mobilisation Knowledge Action

Fig. 8.4 Process of stress management

8.6.2 Strategies for Coping with StressStress can be managed by following two strategies: Individual strategies and organisational strategies

Some of the basic principles of time management are:•Preparing a list of the daily activities to be attended to,•Prioritising the activities as per their importance and urgency,•Re-scheduling activities as per priorities,•Following up the schedule of activities for early completion,•Checking up activities and taking corrective actions (if necessary)•It is observed that effective time management results in: better physical •health, better mental health, better job satisfaction, etc

At least 15 to 20 minutes a day of deep relaxation releases tension and •provides a pronounced a sense of peace of mind.

At least 15 to 20 minutes a day of deep relaxation releases tension •and provides a pronounced a sense of peace of mind

Yoga and Meditation should be followed•Underexpertguidanceforthemaximumbenefitsforreductionstress•

It is rightly said that ‘there is a sound mind in a sound body •Physical exercise at any age is a must. It helps people to •cope with stress

Time Management

Relaxation

Social Support

Yoga

Physical Exercise

Fig. 8.5 Individual strategies


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Organisational Strategies

Organisational StructureIt should be simple to understand and easy to follow•

Organisational CommunicationOrganisational communication with downward and upward channels, when equally open for all •employees, help to reduce work stress

Job Related ActivitiesTechniques like job re-design, job analysis, etc may be used to attract and retain good employees, •with a least stressful environment for all

Training and DevelopmentTraining and development programmes for updation of job related knowledge and skills •automatically reduces stress possibilities caused by apprehensions about change

Performance AppraisalAsystematic,scientific,periodicperformanceappraisalofemployeeshelpstoprovidecounselling,•ideas for improvement.This helps to reduce stress

Employee CounsellingHelpsimproveoverallorganisationalefficiency• Reduces employee stress•Improveemployeeefficiency•

Recruitment/Selection/PlacementIt is necessary to give some kind of induction to new employees in order to orient them with the new •organisational culture, so that they are better prepared to take up stressful jobs

Fig. 8.6 Organisational strategies

8.7 Innovation ManagementFinally, just as individuals must hone special skills needed to be creative, so too must organisations develop special ways of managing people so as to encourage innovation – that is, innovation management. Most notable in this regardisthematterofbalance.Specifically,managershelppromoteinnovationwhentheyshowbalancewithrespectto three key matters: goals, reward systems, and time pressure.

Organisational innovation is promoted when goals are carefully linked to the corporate mission. However, they •shouldnotbesospecificastotiethehandsofthosewhoputthemintopractice.Innovationisunlikelywhensuch restrictions are imposed.Rewardsystemsshouldgenerouslyandfairlyrecogniseone’scontributions,buttheyshouldnotbesospecific•as to connect literally every move to a bonus or some type of monetary reward. To do so, discourages people from taking the kinds of risks that make innovation possible.

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Innovation management requires carefully balancing the time pressures under which employees are placed. If •pressures are too great, people may be unimaginative and offer routine solutions. By the same token, if pressure is too weak, employees may have no sense of time urgency and believe that the project is too unimportant to warrant any creative attention on their part.


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SummaryA careful study of the concepts and strategies can arm us to manage stress in personal and professional life.•In highly complex world, most people are introduced to stress. Stress can manifest in many ways.•People who can handle stress can keep a sense of humor, renew their energy and resources so that work life •brings pleasure, satisfaction and reward to them as well as to others.It is very important to know how one can cope with stress. A careful study of the concepts and strategies discussed •in the chapter can arm us to manage stress in personal and professional life.Finally, just as individuals must hone special skills needed to be creative, so too must organisations develop •special ways of managing people so as to encourage innovation – that is, innovation management.It is not possible to eliminate stress completely from our day-to-day working life.•But, it is, possible (and also necessary) that we learn to manage stress and its effects on our body and mind. In •this process, we have to cope with stress and to keep the physiological and psychological effects at minimum levels to avoid their ill effects on our performance.

ReferencesGreenberg, J., 2008. • Comprehensive Stress Management, 11th ed., McGraw-Hill.Lehrer, P. M., Robert, L., Wool folk & Wesley, E. S., 2008, • Principles and Practice of Stress Management, 3rd ed., The Guilford Press.Prof. Akhilesh, K., • Stress management, [Video online] Available at: <http://www.youtube.com/watch?v=smNBD8dPiys> [Accessed 27 August 2012].Block-2 • Organisational Design. [Pdf] Available at: <http://www.egyankosh.ac.in/bitstream/123456789/7030/3/Unit-5.pdf> [Accessed 7 October 2010].Nobel, C.,• Leadership, [Online] Available at: <http://hbswk.hbs.edu/item/7044.html>[Accessed 27 August 2012].Prof. Kanda, A., • Lecture 18: Organisational behavioral issues, [Video online] Available at: <http://www.youtube.com/watch?v=YVaTyQHNqdU> [Accessed 27 August 2012].

Recommended ReadingSmith, J. C., 2002. • Stress Management: A Comprehensive Handbook of Techniques and Strategies, 1st ed., Springer Publishing Company.Cooper, C., Sutherland, V.J. & Ashley, 2010. Weinberg • Organisational Stress Management: A Strategic Approach, 2nd ed., Publisher: Palgrave Macmillan.Quick, J. C., Nelson, D. L., Joseph, J. & Jr. Hurrell., 1997. • Preventive Stress Management in Organisations, 1st ed., American Psychological Association (APA).

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Self AssessmentWhich of the following statements is false?1.

Stress can be manifested in positive or negativea. Eustress is positiveb. Distress is negativec. Eustress acts as a de-motivatord.

Stress is always associated with____________.2. demands and constraintsa. psychology and physiologyb. behaviour and capabilityc. strength and weaknessd.

A person may feel under- stimulated or over-stretched depending on3. .self –image a. demandb. job- designc. psychologyd.

Which of the following is not a type of stressor?4. Behavioral stressor a. Individual stressorb. Organisational stressorc. Group stressord.


Individual stressor1. Poor inter-personal relationshipsa.

Group stressor2. Unrealistic task demandsb.

Organisational stressor3. Poor leadershipc.

1-a, 2-c, 3-b a. 1-b, 2-a, 3-c b. 1-c, 2-a, 3-bc. 1-a, 2-b, 3-cd.

‘Improved performance’ is which type of stress consequence?6. Behavioral effecta. Long-term effectb. Cognitive effectc. Short-term effectd.

Identify which of the following is not an emotional effect of stress.7. Increase in tensiona. Increase in delusionsb. Increase in hypochondria c. Fall in self-esteemd.


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State the correct order of stages in stress management.8. Mobilisation-knowledge-actiona. Action-mobilsation-knowledgeb. Knowledge- mobilisation –actionc. Mobilisation-action-knowledged.

Which of the following is not an individual strategy to cope with stress?9. Time management a. Social supportb. Training and developmentc. Dexercised.

Which of the following statements is false?10. Employeecounselingimprovesorganisationalefficiency.a. Employee counseling reduces organisational communication. b. Employee counseling reduces employee stress.c. Employeecounselingimprovesemployeeefficiencyd.

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Case Study I

KPMGisoneof themajoraccountingfirms. Itprovidesaccounting,auditingand taxservices.Majorityof itsemployees are Chartered Accountants and CPAs. The company wants to expand its business wings as a part of its global expansion plan. Company’s policy is promoting within and therefore, most of its senior level employees are promoted from entry-level accountants. In view of its promotion policy, the company invests heavily on training of employees in the form of in-house educational and training facilities. Most of its employees receive training at frequent intervals at the company’s training colleges.

Majority of the training investment of the company is on technical and procedural training for entry-level accountants intheareasofaccounting,finance,tax,auditing,projectreportsandreportwriting.However,recentlyKPMGisfacingproblems in attracting dynamic and energetic young graduates from the colleges and universities. This situation, sometimes, discourages clients to continue with KPMG in case of existing clients and approaching KPMG in case of new clients. This could be because of lack of customer-service skills and interpersonal skills. The new employees were not provided with interpersonal or soft skills training.

The training department of the company therefore suggested on providing training in interpersonal skills. But the line managers informed that the interpersonal skills training was provided before two years. However, there was no improvementseenandthereturnonmoneyspentontrainingwasnotjustified.Theseniormanagersofthecompanyfeel that investment in soft skills training is unnecessary as some of the trained employees joined other organisations. Thus,therewasaconflictintrainingmanagersandseniorlinemanagers.

However, most of the managers feel that investment in training is essential, but the dilemma is that which part of the skill should receive more attention and investment.

QuestionsHow can the managers solve the problem of employees lacking in interpersonal skills?1. 1. AnswerThe managers can solve the problem of the employees lacking in interpersonal skills by creating a training program for soft skills and improve customer service skills. The training of soft skills should be given to every new employee at the time of technical training. The managers also need to motivate the employees, so that the trained employees will not think of joining new organisations.

Will training correct the problem of interpersonal relations?2. AnswerThe training can improve the problem of interpersonal relations. However, the employees also need to be motivatedandforthatthemanagersshouldresolvetheirinternalconflicts.

Is training an investment or unnecessary cost involvement?3. AnswerTrainingisaninvestmentfor theKPMGCompany.Thiswilldefinitelyimproveemployee’ssoftskillsandimprove their overall personality. This will automatically bring more number of clients to KPMG.


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Case Study II

The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world and is one of the largest corporations in the United States.

Coca-Cola was the leading soft drink brand in India until 1977. It re-entered the scenario with the acquisition of 5 major brands in 1993, Coca-Cola cemented its presence which gave an ownership of the nation’s top soft-drink brands and bottling network. Sanjiv Gupta joined Coke in 1997 with a clear mission, vision.

Centre for Science and Environment (CSE) issued a press release in August 2003 stating: “12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues”.

The CSE used European norms for maximum permissible limits for pesticides in packaged water. “Because the standardsset forpesticide residuesby theBureauof IndianStandards (BIS)arevagueandundefined.”ActualStandard set by European Economic Commission (EEC) is 0.5 ppb total pesticides 0.1ppb individual pesticides, but the tests conducted by PML(Pollution Monitoring Laboratory) of CSE revealed that the pesticide residue level was well above the global standard level by 30-36 times. The pesticides found were known to cause cancer, damage to the nervous and reproductive systems, birth defects, and severe disruption of the immune system.

Coca-Cola & Pepsi challenged the very authenticity of the CSE report. The companies attacked the credibility of the CSE and their lab results but promised to provide this data to the public, threatened legal action against the CSE while seeking a gag order, and contacted the United States Embassy in India for assistance. In a statement published by Sanjiv Gupta, he mentioned that the allegations made by CSE were misleading & unaccredited data is used to discredit trusted and world-class brands. He assured that their soft drinks in India are produced to the same level of purity, regarding pesticides, as the EU criteria for bottled water.

In order to regain trust of public, they carried out test individually & published full data to them by means of advertisement & corporate websites.

QuestionsHighlight the qualities which are evident from the decisions and steps taken by Sanjiv Gupta to solve the 1. problem.Enlist the important steps taken for solving the problem2. .Suggest more steps which would have helped for better results3. .

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Case Study III

Satish was a Sales Manager for Industrial Products Co in City branch. A week ago, he was promoted and shifted to HO as Deputy Manager - Product Management for a division of products which he was not very familiar with. The company VP - Mr.George, convened a meeting of all Product Managers. Satish’s new boss was not able to attend due to some preoccupation. Hence, the Marketing Director - Preet - asked Satish to attend the meeting.

In the meeting, George questioned each manager for their products. Satish, being new was unable to provide satisfactory answers.

Preet understood that George had failed to remember that Satish was new to the job. He thought of interrupting George’s questioning and reminds that Satish was new. But George and Satish were very upset by the time.”

George quickly closed the meeting and asked Preet to stay back in the room for further discussions. George asked whether he was rough with Satish, to which Preet replied positively. George realized that Satish was new, and he was unfair by being rough. Satish was called in. George apologized accepting that he forgot he had joined recently. George added that he would expect perfection in few months and had complete faith in his capabilities. That is why he had been transferred to HO

QuestionsWas it at all necessary for George to apologize to such a junior employee like Satish? 1. If you were in Satish’s place, how would you to respond to George’s apology? 2. AsanHRman,howwouldyoudefinethecharacterofGeorge-bullyingbutlaterregretting?3.


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Bibliography

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Greenberg, J., 2008. • Comprehensive Stress Management, 11th ed., McGraw-Hill.Hitt, M. A., Miller, C.C. & Collela, A., 2009. • Organisational Behaviour, 2nd ed., John Wiley & Sons, Inc.Ivancevich, J., Konopaske, R., Matteson, M., 2007. • Organisational Behaviour and Management, 8th ed., McGraw-Hill/Irwin.Lehrer, P. M., Wool folk, R. L. & Sime, W. E., 2008. • Principles and Practice of Stress Management, 3rd ed., The Guilford Press.Lepelley, D., 2012, • Organisational behaviour in business Part 1, [Video online] Available at: <http://www.youtube.com/watch?v=SS8GSPdej-k> [Accessed 14 August 2012].Meyer. E., • Managing teams, [Online] Available at: <http://knowledge.insead.edu/INSEAD-knowledge-managing-confrontation-in-multicultural-teams-120521.cfm> [Accessed 27 August 2012].Nobel, C.,• Leadership, [Online] Available at: <http://hbswk.hbs.edu/item/7044.html>[Accessed 27 August 2012].Organisational Behaviour., • FlatWorldKnowledge,Inc.Availableat:<http://www.flatworldknowledge.com/pub/organizational-behavior-v1.1/141353#web-141351>. [Accessed 5th October 2010].Parsons, B., 2012, • Aligning strategy, structure and organizational culture, [Video online] Available at: < http://www.youtube.com/watch?v=2_5JlmmQk20> [Accessed21 August 2012].Powers, W. T., 2005. • Behaviour: The Control of Perception, 2nd ed., Benchmark Publications, Inc.Prof. Akhilesh, K., • Stress management, [Video online] Available at: <http://www.youtube.com/watch?v=smNBD8dPiys> [Accessed 27 August 2012].Prof. Akhilsh, K., • Lecture 9: leadership, [Video online] Available at: <http://www.youtube.com/watch?v=lqC2cfwlILg>[Accessed 27 August 2012].Prof. Champoux, J., • Management of organisational behaviour, [Video online] Available at: <http://www.youtube.com/watch?v=nRLZFJIl1Ls> [Accessed 27 August 2012].Prof. Kanda, A., • Lecture 18: Organisational behavioral issues, [Video online] Available at: <http://www.youtube.com/watch?v=YVaTyQHNqdU> [Accessed 27 August 2012].Prof. Kanda, A., • Lecture 18: Organisational behavioral issues, [Video online] Available at: <http://www.youtube.com/watch?v=YVaTyQHNqdU> [Accessed 27 August 2012].Richard, M., • Journal o service marketing, [Online] Available at: <http://www.emeraldinsight.com/journals.htm?articleid=855698> [Accessed 27 August 2012].Roberts, J., 2007.• The Modern Firm: Organisational Design for Performance and Growth, Oxford University Press.Roy, H., • What is Organisational design, [Online] Available at: <http://www.inovus.com/organiza.htm> [Accessed 21 August 2012].Sarab, • Models of Organisational behaviour, [Online] Available at: <http://beepyoumba.com/BEEP/?p=28> [Accessed 18 August2012].The Johari Window• . Available at: <http://www.mindtools.com/CommSkll/JohariWindow.htm> [Accessed 9 October 2010].Zachary, W. B., Kuzuhara, L.W., William, B. & Loren, W., 2004. Organisational• Behaviour: Integrated Models and Applications, 1st ed., South-Western College Pub.

Recommended ReadingAnderson, M., 2004. • The Power of Attitude, Thomas Nelson.Barbara, A.2006. • ConflictManagement:APracticalGuidetoDevelopingNegotiationStrategies,1st ed. Prentice HallBassn, B. F. & Bass, R., 2008. • The Bass Handbook of Leadership: Theory, Research, and Managerial Applications, 4th ed., Free Press.


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Burton, R. M., 2006. • Organisational Design: A Step-by-Step Approach, Cambridge University Press.Colquitt, LePine, J. & Wesson, M., 2010. • Organisational Behaviour: Improving Performance and Commitment in the Workplace. 2nd ed., McGraw-Hill/Irwin.Cooper, C., Sutherland, V. J. & Ashley., 2010. • Weinberg Organisational Stress Management: A Strategic Approach, 2nd ed., Palgrave Macmillan.Daft, R. L., 2009. • Organisation Theory and Design, 10th ed., South-Western College Pub.George, J. & Jones, G., 2007. • Understanding and Managing Organisational Behaviour, 5th ed., Prentice Hall.Hill, N. & Stone W., 2007• . Success through a Positive Mental Attitude, Pocket.Jones, G. R., 2009. • Organisational Theory, Design, and Change, 6th ed.,Prentice Hall.Kouzes, J. M. & Posner, B. Z., 2003. • The Leadership Challenge, 3rd ed., Jossey-Bass.Kreitner, R. & Kinicki. A., 2009. • Organisational Behaviour, 9th ed., McGraw-Hill/Irwin.Mac Anderson. • The Power of Attitude. Thomas Nelson.Maxwell, J. C., 2006. • The Difference Maker: Making Your Attitude Your Greatest Asset, 1st ed., Thomas Nelson.Nohria, N. & Khurana, R., 2010. • Handbook of Leadership Theory and Practice, Harvard Business Press.Powers, W. T., 2005. • Behaviour: The Control Of Perception, 2nd ed., Benchmark Publications, IncQuick, J. C., Nelson, D. L., Joseph, J. & Jr. Hurrell., 1997. • Preventive Stress Management in Organisations, 1st ed., American Psychological Association (APA).Robbins, J., 2009. • Organisational Behaviour, 13th ed., Pearson International.Schermerhorn, J. R., Jr. Dr. Hunt, J.G. & Dr. Osborn, R. N., 2010. • Organisational Behaviour, 11th ed., Wiley.Schulman, L. 2010• . Dynamics and Skills of Group Counseling, 1st ed., BrooksSlocum, J.W. 2010. • Organisational Behaviour, 13th ed., South-Western College PubSmith., J. C., 2002. • Stress Management: A Comprehensive Handbook of Techniques and Strategies, 1st ed., Springer Publishing Company.Weeks, D. 1994. • TheEightEssentialStepstoConflictResolution. 1st ed. Tarcher.

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Self Assessment Answers

Chapter Ib1. a2. b3. b4. a5. c6. a7. a8. a9. b10.

Chapter IIb1. c2. a3. d4. d5. c6. b7. d8. c9. a10.

Chapter IIIb1. d2. b3. a4. d5. a6. a7. c8. b9. d10.

Chapter IVc1. c2. b3. a4. d5. a6. d7. d8. b9. d10.


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Chapter Vd1. c2. a3. b4. c5. d6. a7. d8. b9. c10.

Chapter VIb1. a2. c3. a4. d5. a6. c7. a8. d9. a10.

Chapter VIIc1. d2. a3. b4. a5. b6. a7. a8. c9. d10.

Chapter VIIId1. a2. b3. a4. c5. d6. b7. a8. c9. b10.

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