the impact of organizational behaviour on employees

1

THE IMPACT OF ORGANIZATIONAL BEHAVIOUR ON

EMPLOYEES BEHAVIOUR IN PHARMACEUTICAL COMPANIES

IN SELECTED LOCATIONS OF MAHARASHTRA VIZ; MUMBAI,

PUNE, NASIK

Thesis submitted to the

Padmashree Dr. D.Y.Patil University, Navi Mumbai,

Department of Business Management

In partial fulfillment of the award of the degree

Of

DOCTOR OF PHILOSOPHY

IN

BUSINESS MANAGEMENT

Submitted by

SAPNA SURI

Enrollment No: DYP-PhD-076100029

Research Guide

Prof. Dr. PRADIP MANJREKAR

DEAN

PADMASHREE DR. D.Y. PATIL UNIVERSITY’S

DEPARTMENT OF BUSINESS MANAGEMENT,

SECTOR 4, PLOT NO. 10,

CBD Belapur, Navi Mumbai- 400614

JUNE 2012

2

THE IMPACT OF ORGANIZATIONAL BEHAVIOUR

ON

EMPLOYEES BEHAVIOUR IN PHARMACEUTICAL

COMPANIES IN

SELECTED LOCATIONS OF MAHARASHTRA VIZ;

MUMBAI, PUNE, NASIK

3

DECLARATION

I hereby declare that the Study titled " The impact of organizational behaviour on

employees behaviour in Pharmaceutical companies in selected locations of Maharashtra

Viz; Mumbai, Pune, Nasik.” submitted for the PhD Degree at Padmashree Dr. D.Y. Patil

University, Navi Mumbai, Department of Business Management is my original work and

the dissertation has not formed the basis for the award of any degree, associate ship,

fellowship or any other similar titles.

Place: Navi Mumbai

Date :

Signature of the PhD Student

(SAPNA SURI)

4

CERTIFICATE

This is to certify that the thesis entitled "The impact of organizational behaviour on

employees behaviour in Pharmaceutical companies in selected locations of

Maharashtra Viz; Mumbai, Pune, Nasik." and submitted by Ms. Sapna Suri is a

bonafide research work for the award of the Doctor of Philosophy in Business

Management at the Padmashree Dr. D. Y.Patil University Department of Business

Management in partial fulfillment of the requirements for the award of the Degree of

Doctor of Philosophy in Business Management and that the thesis has not formed the

basis for the award previously of any degree, diploma, associate ship, fellowship or any

other similar title of any University or Institution. Also certified that the thesis represents

an independent work on the part of the candidate.

Place: Navi Mumbai

Date:

Signature of the Head of the Dept Signature of Guide

5

ACKNOWLEDGEMENT

I am greatly indebted to the Padmashree Dr. D.Y. Patil University, Department of Business

Management which has accepted me for the Doctoral Program and provided me with an

excellent opportunity to carry out the present research work. I wish to thank Professor

Dr.R.Gopal, Director,Padmashree Dr. D.Y. Patil University, Navi Mumbai, Department

of Business Management who has been a perpetual source of inspiration and offered

valuable suggestions to improve my Research work.

I am grateful to my guide, mentor, philosopher Dr. Pradip Manjrekar for having guided

me throughout the research span of time and for providing his constructive criticism

which made me bring my best.

I sincerely thank my Family, for providing me the necessary motivation for completing

this dream project. I also wish to place on record my sincere thanks to my friends and

relatives who have provided me with the strength and ability to carry this research out of

the best of my ability.

Place: Navi Mumbai

Date: Signature of the PhD student

6

TABLE OF CONTENTS

Chapter no Title Pg.No.

LIST OF ABBREVIATIONS 10

LIST OF TABLES 12

LIST OF FIGURES 15

EXECUTIVE SUMMARY 16

1. INTRODUCTION 21

1.1 ORGANIZATIONAL BEHAVIOUR AND ITS IMPACT ON

EMPLOYEES BEHAVIOUR

37

1.2 MAHARASHTRA’S PHARMACEUTICALS INDUSTRY 60

2. REVIEW OF LITERATURE 63

2.1 ORGANIZATIONAL BEHAVIOUR STUDIES 64

2.2 EMPLOYEES BEHAVIOUR STUDIES 71

2.3 IMPACT OF ORGANIZATIONAL BEHAVIOUR ON

EMPLOYEES BEHAVIOUR STUDIES

77

2.4 ORGANIZATIONAL STURCTURE STUDIES 86

2.5 LEADERSHIP STUDIES 88

2.6 POLITICAL ENVIRONMENT STUDIES 92

2.7 IMPLEMENTATION OF EVALUATION AND

APPRAISAL STUDIES

95

2.8 SUPERVISORY STYLE STUDIES 98

2.9 INTERNAL COMMUNICATION STUDIES 99

7

2.10 EMPLOYEES BEHAVIOUR AND SATISFACTION

STUDIES

102

2.11 CREATIVITY STIMULANTS STUDIES 104

2.12 ETHICS AND SOCIAL RESPONSIBILITY STUDIES 106

2.13 POWER AND POLITICS STUDIES 108

2.14 TEAMS AND TEAMS WORK STUDIES 111

2.15 ABSENTEEISM STUDIES 116

2.16 ATTRITION STUDIES 121

2.17 RESEARCH GAP 125

3. SCOPE OF THE STUDY 127

3.1 OBJECTIVES OF THE STUDY 128

3.2 STATEMENT OF HYPOTHESIS 130

4. RESEARCH METHODOLOGY 132

4.1 DESCRIPTIVE SURVEY 133

4.2 FIELD SURVEY 133

4.3 PILOT TEST 134

4.4 SAMPLING DESIGN 135

4.5 TABULATION AND STATISTICAL ANALYSIS OF

DATA

136

4.6 INTERPRETATION AND REPORT WRITING 136

4.7 LIMITATION OF THE STUDY 137

8

5. ORGANIZATIONAL BEHAVIOUR 138

5.1 ORGANIZATIONAL STRUCTURE 143

5.2 LEADERSHIP 152

5.3 POLITICAL ENVIRONMENT 157

5.4 IMPLEMENTATION OF EVALUATION AND

APPRAISAL SYSTEM

159

5.5 SUPERVISORY STYLE 174

5.6 INTERNAL COMMUNICATION SYSTEM 175

5.7 POWER AND POLITICS 177

5.8 TEAMS AND TEAMS WORK 179

5.9 ETHICS AND SOCIAL RESPONSIBILITY 183

6 EMPLOYEES BEHAVIOUR 190

6.1 ABSENTEEISM 201

6.2 ATTRITION RATE 202

6.3 EMPLOYEE SATISFACTION 208

7 DATA INTERPRETATION 215

7.1 CITY OF RESPONDENTS 216

7.2 TYPE OF ORGANIZATION OF RESPONDENTS 217

7.3 GENDER OF RESSPONDENTS 218

7.4 AGE GROUP OF RESPONDENTS 219

7.5 MONTHLY INCOME OF RESPONDENTS 220

9

7.6 EXPERIENCE OF RESPONDENTS 221

7.6..1 DIMENSIONS OF THE STUDY 223

7.6.1.1 STRUCTURE OF ORGANIZATION 223

7.6.1.2 LEADERSHIP OF ORGANIZATION 226

7.6.1.3 POLITICAL ENVIRONMENT OF ORGANIZATION 228

7.6.1.4 IMPLEMENTATION OF EVALUATION AND

APPRAISAL OF ORGANIZATION

230

7.6.1.5 SUPERVISORY STYLE OF ORGANIZATION 232

7.6.1.6 INTERNAL COMMUNICATION SYSTEM OF

ORGANIZATION

234

7.6.1.7 CREATIVITY STIMULATION OF ORGANIZATION 236

7.6.1.8 ETHICS AND RESPONSIBILTY OF ORGANIZATION 239

7.6.1.9 TEAMS AND TEAMS WORK 240

7.6.1.10 JOB SATISFACTION OF THE EMPLOYEES OF THE

ORGANIZATION

244

8. HYPOTHESIS TESTING 247

9 MAJOR FINDINGS AND CONCLUSIONS 282

10 RECOMMENDATIONS 287

APPENDIX

290

1. BIBLIOGRAPHY 291

2. QUESTIONNAIRE 310

3. LIST OF COMPANIES 323

10

LIST OF ABBREVIATIONS

SR. NO ABBREVIATION FULL FORM

1 OB Organizational Behaviour

2 POS Positive Organizational Scholarship

3 OCB Organizational Citizen Behavior

4 CEO Chief Executive Officer

5 USA United States of America

6 HRM Human Resource Management

7 FDI Foreign Direct Investment

8 R&D Research and Development

9 IPR Intellectual Property Rights

10 SSI Small Scale Industries

11 MED Medium Scale Industries

12 LS Large Scale Industries

13 VET Vocational Education and Training

14 OSCD Organisational Support for Career Development

15 SCCT Social Cognitive Career Theory

16 HRP Human Resource Practices

17 PC Psychological Contract

18 SOE supervisor’s Organizational Embodiment

19 PCFD Positive Climate For Diversity

20 POF Person-Organization Fit

21 POS Perceived Organisational Support

22 e-CRM Electronic Customer Relationship Management

23 HRD Human Resource Development

24 IT Information Technology

25 OI Organizational Identification

26 WLOC Work Locus Of Control

27 UK United Kingdom

28 CIMA Chartered Institute of Management Accountants

29 GM General Motors Corp

30 GNS Growth Need Strength

31 SES Senior Executive Service

32 MEPS Medical Expenditure Panel Survey

33 ITES Information Technology Enabled Services

34 GPA Grade Point Average

35 CCA City Compensation Allowances

36 HRA House Rent Allowances

37 SS Sample Size

38 P Percentage picking a choice, expressed as decimal

39 C Confidence interval expressed as decimal

40 Z Z value

41 SPSS Statistical Package for Social Sciences

42 MNC Multinational Company

43 GRS A Graphic Rating Scale

44 BARS Behaviorally-Anchored Rating Scale

11

45 BOS Behavior Observation Scale

46 MBO Management by Objectives

47 IC Internal Communications

48 TP Technological Project

49 Vol Volume

50 PP Pages

51 & And

52 MD Managing Director

53 VP Vice President

54 OR Odds Ratio

55 CI Confidence Interval

56 CEO Chief Executive Officer

57 MSU Michigan State University 58 CVB Core Value Behavior 59 CWB Counterproductive Work Behavior 60 SOE Supervisor's Organizational Embodiment 61 OIG Office of Internal Governance 62 DCFSA Dependent Care Flexible Spending Account 63 EPQ Equity Preference Questionnaire 64 ESI Equity Sensitivity Instrument 65 GRE Gini Ratio Equilibrium 66 RPE Required Professional Experience 67 SLPAB Speech-Language Pathology and Audiology Licensing

Board 68 CF Clinical Fellowship 69 ASHA American Speech-Language and Hearing Association 70 II Imagined Interaction 71 EI Emotional Intelligence 72 WEI Work Environment Inventory 73 MRT Media Richness Theory 74 MSQ Media Selection Questionnaire 75 LEI Leadership Effectiveness Inventory 76 BMI Body Mass Index 77 ILI Influenza-Like Illness

12

LIST OF TABLES

TABLE

NO

NAME OF TABLE PAGE

NO

TABLE 4.1 Classifies cities based on their CCA and HRA statuses 135

TABLE 4.2 Details of size of the Companies, Total Number of Employees, and

Total number of sample selected

135

Table 7.1 Respondents according to City 216

Table 7.2 Respondents according to type of Organization 217

Table 7.3 Respondents according to Gender

218

Table 7.4 Respondents according to Age group 219

Table 7.5 Respondents according to Monthly Income

220

Table 7.6 Respondents according to Experience 221

Table 7.6.1 Structure of Organization

223

Table 7.6.2 Leadership of Organization

226

Table 7.6.3 Political Environment of Organization 228

Table 7.6.4 Implementation of Evaluation and Appraisal of organization 230

Table 7.6.5

Supervisory style of Organization

232

Table 7.6.6

Internal Communication System of the Organization 234

Table 7.6.7 Creativity Stimulation of Organization 236

Table 7.6.8 Ethics and Responsibility of Organization

239

Table 7.6.9 Teams and Team Work 241

13

Table

7.6.10

Job Satisfaction of the Employees of the Organization 244

Table 8.1 Results of Chi-square test 248

Table 8.2 ANOVA TABLE 248

Table 8.3 Respondents according to Type of organization and

combination of Employees

250

Table 8.4 Paired T – Test for Organizational Behavior

252

Table 8.5 Result of T-test for Organizational Behavior 252

Table 8.6 Paired T – Test for Job Satisfaction 253

Table 8.7 Result of T-test for Job satisfaction 253

Table 8.8 Chi-Square Test 254

Table 8.9 Respondents according to Level of organizational behavior

and level of Employee satisfaction

255

Table 8.10 Chi-Square test 258

Table 8.11 ANOVA TEST 258

Table 8.12 Respondents according to Leadership of organization and Job

satisfaction of Employees

259


Table 8.14 Respondents according to Gender and job satisfaction of

Employees

261


Table 8.16 Respondents according to age and job satisfaction of

Employees

263


Table 8.18 Respondents according to income and job satisfaction of

Employees

265



Table 8.21 Respondents according to Political Environment of

organization and Job satisfaction of Employees

268


14


Table 8.24 Respondents according to Evaluation and Appraisal of


270



Table 8.27 Respondents according to Ethics and Social Responsibility of


273


Table 8.29 Respondents according to Communication System of


275

Table 8.30 Respondents according to dimensions of organizational

behaviour

276

Table 8.31 T-test 279

Table 8.32 Correlations 280

Table 8.33 Correlations 280

15

LIST OF FIGURES

Figure

no

Name of the Figure Page no

5.1 Hierarchy-Community Phenotype Model of Organizational

Structure

150

7.1 Diagram of respondents according city 217

7.2 Diagram of respondents according to type of organization 218

7.3 Diagram of respondents according to gender of organization 219

7.4 Diagram of respondents according to age of organization 220

7.5 Diagram of respondents according to monthly income 221

7.6 Diagram of respondents according to Experience 222

7.6.1 Table of response for Que no 1 to 11 225

7.6.2 Table of response for Que no 12 to 16 227

7.6.3 Table of respondents for Que 17 to 24 229

7.6.4 Table of respondents from Que no 25 to 29 231






7.6.10 Table of Respondents from Que no 1 to 15 246

8.1 Diagram of respondents according to type of organization and

combination of employees

251

8.2 Diagram of respondents according to level of organizational

behaviour and level of employees behaviour

257

8.3 Diagram of respondents according to leadership of organization

and job satisfaction of employees

260

8.4 Diagram of respondents according to gender and job satisfaction

of employees

262

8.5 Diagram of respondents according to age and job satisfaction of

employees

264

8.6 Diagram of respondents according to income and job satisfaction

of employees

266

8.7 Diagram of respondents according to political environment of

organization and job satisfaction of employees

269

8.8 Diagram of respondents according to Evaluation and appraisal of

organization and job satisfaction of employees

271

8.9 Diagram of respondents according to Ethics and social

responsibility of organization and job satisfaction of employees

274

8.9 Diagram of respondents according to Internal communication

system of organization and job satisfaction of employees

276

16

EXECUTIVE SUMMARY

17

EXECUTIVE SUMMARY

Organisational behaviour is concerned with the characteristics and behaviours of

employees in isolation; the characteristics and processes that are part of the organisation

itself; 'and the characteristics and behaviours directly resulting from people with their

individual needs and motivations working within the structure of the organisation. One

cannot understand an individual’s behaviour completely without learning something

about that individual's organisation. Similarly, he cannot understand how the organisation

operates without; studying the people who-make it up. Thus, the organisation influences

and is influenced by individuals.The key elements in the organisational behaviour are

people,, structure, technology and the environment in which the organisation operates.

People: People make up the internal and social system of the organisation. People

consist of individuals and groups. The groups may be big or small; formal or informal;

official or unofficial. Groups are dynamic and they work in the organisation to achieve

their objectives. Structure: Structure defines the formal relationships of the people in

organisations. Different people in the organisation are performing different type of jobs

and they need to be (elated in some structural way so that their work can be effectively

co-ordinated. Technology: Technology such as machines and work processes provide

the resources with which people work and affects the tasks that they perform. The

technology used has a significant influence on working relationships. It allows people to

do more and work better but it also restricts' people in various ways. Environment. This

study undertaken begins with the introduction of organizational behaviour. The concept

of organizational behavior and impact of organizational behaviour on employees

behavior has been done. For understanding organizational behaviour various dimensions

18

such as organizational structure, internal communication system, power and politics etc

were used which throw the light on the concept. Similarly for understanding employees

behaviour various dimensions such as absenteeism, attrition rate, job satisfaction etc

which throw light on the concept were used. Further the study progresses with extensive

literature review on employees behaviour, organizational behaviour and various

dimensions further divided into ten groups explained in detail. In Literature Review

chapter the entire gist of various dimensions has been used. Further the literature review

was divided into various groups. The extensive literature on organizational structure,

political environment, teams and team work, leadership style, job satisfaction, ethics and

social responsibility, creativity stimulants, Internal communication system, supervisory

style, implementation of evaluation and appraisal system has been given . On the basis of

the literature review which was collected from various books, research journals, research

papers, thesis as well as various research articles research gap has been formulated. The

literature of study undertaken was a unique one. The study has a wider scope. The study

explained the impact of organizational behaviour on employees behaviour with respect to

pharmaceutical companies employees of selected locations of Mumbai, Pune and Nasik.

The objective of the study was to understand organizational behaviour taking into

account various dimensions such as organizational structure, political environment, teams

and teams work, creativity stimulation, leadership, internal communication system etc in

connection with employees behaviour. On the basis of the objectives of the study

hypothesis have been formulated. Research Methodology comprised of descriptive

survey, field servey, pilot test, sampling design, tabulation and statistical analysis of data,

interpretation and report writing, and limitation of the study. The study mentioned both

19

primary data as well as secondary data. The primary data was collected with the help of a

questionnaire. After preparation of the questionnaire pilot study has been conducted.

Respondents of the study were employees of pharmaceutical companies of selected

locations of Mumbai, Pune and Nasik. On the basis of pilot study further modification of

the questionnaire was done and sample size of the study was decided. The data collected

comprised of demographic factors such as age, gender, income, experience, of the

employees. Further the data comprised of dimensions which were further divided into ten

groups is represented with the help of tables and diagrams. Demographic factors were

represented with the help of pie chart and dimensions of the study were represented with

the help of bar chart. Further study discussed about the organizational behaviour in detail.

Employees behaviour in detail has been discussed in the study. The entire data in detail

with the help of diagrams and figures has been explained in chapter on data

interpretation. The Data collected was Hypothesised and tested through SPSS by

applying test such as T-test, Chi-square, Karl Pearson correlation, ANOVA. Hypothesis

formulated were further tested with the help of various test applied through SPSS.People

had agreed on maximum questions of organizational structure, political environment,

teams and team work, leadership style, job satisfaction, ethics and social responsibility,

creativity stimulants, Internal communication system, supervisory style, implementation

of evaluation and appraisal system was demonstrated by the findings of the research . The

employees had an inclination to climb the ladder of the organization was found. They

wanted to be in top management of their respective organizations. On the basis of the

findings conclusions were drawn. People were satisfied with the job allotted to them was

found. But according to the employees internal communication system should be clearer

20

so as to provide information regarding roles and responsibilities in the organizations. The

organizations are making efforts to retain the employees but the organizations need more

efforts to hold back the employees in the organization was found. The organizational

behaviour had great impact on employees behaviour was proved. The recommendations

based on the findings which gave the insights of the behaviour of employees as well as

organization have been given by the study.

21

CHAPTER 1

INTRODUCTION

22

CHAPTER 1

INTRODUCTION

"Organisations are social inventions for accomplishing goals through group efforts". By

Gary Johns. This definition covers wide variety-of groups such as businesses, schools,

hospitals, fraternal groups, religious bodies, government agencies and so on. There are

three significant aspects in the above definition, which require further analysis. They are

as follows: Social Inventions: The word "social" as a derivative of society basically

means gathering of people. It is the people that primarily make up an organisation.

Accomplishing Goals: All organisations have reasons for their existence. These reasons

are the goals towards which all organisational efforts are directed. While the primary goal

.of any commercial organisation is to make money for its owners, this goal is inter-related

with many other goals. Accordingly, any organisational goal must integrate in itself the

personal goals of all individuals associated with the organisation.

Group Effort: People, both as members of the society at large and as a part of an

organisation interact with each other and are inter-dependent. Individuals in themselves

have physical and intellectual limitations and these limitations can only be overcome by

group efforts. Organizations comprise of human beings who are highly complex and

unpredictable in nature. The management of organizations is therefore a challenging task.

Increasing diversity, knowledge and information explosion, strategic partnerships, global

competition and emphasis on total quality management are the other challenges

confronting managers in the modern times. To meet these challenges, managers require

cooperation from individual employees and their work groups who often resist change.

So, for an effective management of organizations, an in-depth study of the behavior of

individuals within workgroups, including an analysis of the nature of workgroups is

required One such study is 'organizational behavior.'

Organisational behaviour is concerned with people's thoughts, feelings, emotions and

actions in setting up a work. Understanding an individual behaviour is in itself a

23

challenge, but understanding group behaviour in an organisational environment is a

monumental managerial task. As Nadler and Tushman put it, "Understanding one

individual's behaviour is challenging in and of itself; understanding a group that is made

up of different individuals and comprehending the many relationships among those

individuals is even more complex. Ultimately, the organisation's work gets done through

people, individually or collectively, on their, own or in collaboration with technology.

Therefore, the management of organisational behaviour is central to the management

task—a task that involves the capacity to "understand" the behaviour patterns of

individuals, groups and organisations, to ''predict'" what behavioural responses will be

elicited by various managerial actions and finally to use this understanding and these

predictions to achieve "control".

Organisational behaviour can then be defined as: "The study of human behaviour in

organisational settings, the interface between human behaviour and the organisational

context, and the organisation itself." The above definition has three parts—the individual

behaviour, the organisation and the (interface between the two. Each individual brings to

an organisation a unique set of beliefs, values, attitudes and other personal characteristics

and these characteristics of all individuals must interact with each other in order to create

organisational settings. The organisational behaviour is specifically concerned with work-

related behaviour, which takes place in organisations. In addition to understanding; the

on-going behavioural processes involved, in 'their own jobs, managers must understand

the basic human element of their work.

Organisational behaviour offers three major ways of understanding this context; people

as organisations, people as resources and people as people. Above all, organisations are

people; and without people there would be no organisations. Thus, if managers are to

understand the organisations in which they work, they must first understand the people

who make up the organisations. As resources, people are one of the organisation's most

valuable assets. People create the organisation, guide and direct its course, and vitalise

and revitalise it. People make the decisions, solve the problems, and answer the

questions. As managers increasingly recognise the value of potential contributions by

24

their employees, it will become more and more important for managers and employees to

grasp the complexities of organisational behaviour. Finally, there is people as people - an

argument derived from the simple notion of humanistic management. People spend a

large part of their lives in; organisational settings, mostly as employees. They have a right

to expect something in return beyond wages and benefits. They have a right to expect

satisfaction and to learn new skills. An understanding of organisational behaviour can

help the manager better appreciate the variety of individual needs and' expectations.

Organisational behaviour is concerned with the characteristics and behaviours of

employees in isolation; the characteristics and processes that are part of the organisation

itself; 'and the characteristics and behaviours directly resulting from people with their

individual needs and motivations working within the structure of the organisation. One

cannot understand an individual’s behaviour completely without learning something

about that individual's organisation. Similarly, he cannot understand how the organisation

operates without; studying the people who-make it up. Thus, the organisation influences

and is influenced by individuals.

The key elements in the organisational behaviour are people,, structure, technology and

the environment in which the organisation operates. People: People make up the internal

and social system of the organisation. They consist of individuals and groups. The groups

may be big or small; formal or informal; official or unofficial. Groups are dynamic and

they work in the organisation to achieve their objectives. Structure: Structure defines the

formal relationships of the people in organisations. Different people in the organisation

are performing different type of jobs and they need to be (elated in some structural way

so that their work can be effectively co-ordinated. Technology: Technology such as

machines and work processes provide the resources with which people work and affects

the tasks that they perform. The technology used has a significant influence on working

relationships. It allows people to do more and work better but it also restricts' people in

various ways. Environment: All organisations operate within an external environment. It

is the part of a larger system that contains many other elements such as government,

family and other organisations. All of these mutually influence each other in a complex

system that creates a context for a group of people. Each individual brings to an

25

organisation a unique set of personal characteristics, experiences from other organisation,

the environment surrounding the organisation and they also poses a personal background.

In considering the people working in an organization, organizational behaviour must look

at the unique perspective that each individual brings to the work setting. But individuals

do not work in isolation. They come in contact with other individuals and the

organisation in a variety of ways. Points of contact include managers, co-workers, formal

policies and procedures of the organisation, and various changes implemented by the

organisation. Over time, the individual, too, changes, as a function of both the personal

experiences and the organisation.

The organisation is also affected by the presence and eventual absence of the individual.

Clearly, the study of organisational behaviour must consider the ways in which the

individual and the organisation interact. An organisation, characteristically, exists before

a particular person joins it and continues to exist after he leaves it. Thus, the organisation

itself represents a crucial third perspective from which to view organisational behaviour.

The rules of work are different from the rules of play. The uniqueness of rules and the

environment of organisations forces managers to study organisational behaviour in order

to learn about normal and abnormal ranges of behaviour. A more specific and formal

course in organisational behaviour helps an individual to develop more refined and

workable sets of assumption that is directly relevant to his work interactions.

Organisational behaviour helps in predicting human behaviour in the organisational

setting by drawing a clear distinction between individual behaviour and group behaviour.

Organisational behaviour does not provide solutions to all complex and different

behaviour puzzles of organisations. It is only the intelligent judgement of the manager in

dealing with a specific issue that can try to solve the problem. Organisational behaviour

only assists in making judgements that are derived from tenable assumptions; judgement

that takes into account the important variables underlying the situation; judgement that

are assigned due recognition to the complexity of individual or group behaviour;

judgement that explicitly takes into account the managers own goals, motives, hang-ups,

blind spots and weaknesses.

26

Organisational behaviour offers several ideas to management as to how human factor

should be properly emphasised to achieve organisational objectives. Barnard has

observed that an organisation is a conscious interaction of two or more people. This

suggests that since an organisation is Ihe interaction of persons, they should be given

adequate importance in managing the organisation. Organisational behaviour provides

opportunity to management to analyse human behaviour and prescribe means for shaping

it to a particular direction. Understanding Human Behaviour Organisational behaviour

provides understanding the human behaviour in all directions in which the human beings

interact. Thus, organisational behaviour can be understood at the individual level,

interpersonal level, group level and inter-group level. Organisational behaviour helps to

analyse 'why' and 'how' an individual behaves in a particular way. Human behaviour is a

complex phenomenon and is affected by a large number of factors including the

psychological, social and cultural implications.

Organisational behaviour integrates these factors to provide simplicity in understanding

the human behaviour. Interpersonal Level: Human behaviour can be understood at the

level of interpersonal interaction. Organisational behaviour provides means for

understanding the interpersonal relationships in an organisation. Analysis of reciprocal

relationships, role analysis and transactional analysis are some of the common methods,

which provide such understanding. Group Level: Though people interpret anything at

their individual level, they are often modified by group pressures, which then become a

force in shaping human behaviour, Thus, individuals should be studied in groups also..

Research in group dynamics has contributed vitally to organisational behaviour and

shows how a group behaves in its norms, cohesion, goals, procedures, communication

pattern and leadership. These research results are advancing managerial knowledge of

understanding group behavior, which is very important for organizational morale and

productivity. Inter-group Level: The organization is made up of many groups that

develop complex relationships to build their process and substance. Understanding the

effect of group relationships is important for managers in today's organization. Inter-

group relationship may be in the form of co-operation or competition. The co-operative

relationships help the organization in achieving its objectives.

27

Organisational behaviour provides means to understand and achieve co-operative group

relationships through interaction, rotation of members among groups, avoidance of win-

lose situation and focussing on total group objectives.

Controlling and Directing Behaviour: After understanding the mechanism of human

behaviour, managers are required to control and direct the behaviour so that it conforms

to the standards required for achieving the organisational objectives. Thus, managers are

required to control and direct the behaviour at all levels of individual interaction.

Therefore, organisational behaviour helps managers in controlling and directing in

different areas such as use of power and sanction, leadership, communication and

building organisational climate favourable for better interaction.

Use of Power and Sanction: The behaviours can be controlled and directed by the use of

power and sanction, which are formally defined by the organisation. Power is referred to

as the capacity of an individual to take certain action and may be utilised in many ways.

Organisational behaviour explains how various means of power and sanction can ,be

utilised so that both organisational and individual objectives are achieved simultaneously.

Leadership: Organisational behaviour brings new insights and understanding to the

practice and theory of leadership. It identifies various leadership styles available to a

manager and analyses which style is more appropriate in a given situation. Thus,

managers can adopt styles keeping in view the various dimensions of organizations,

individuals and situations.

Communication: Communication helps people to come in contact with each other. To

achieve organisational objectives, the communication must be effective. The

communication process and its work in inter-personal dynamics have been evaluated by

organisational behaviour.

Organizational Climate: Organisational climate refers to the total organizational

situations affecting human behaviour. Organisational climate takes a system perspective

28

that affect human behaviour. Besides improving the satisfactory working conditions and

adequate compensation, organisational climate includes creation of an atmosphere of

effective supervision; the opportunity for the realisation of personal goals, congenial

relations with others at the work place and a sense of accomplishment.

Organizational Adaptation: Organisations, as dynamic entities are characterized by

pervasive changes. Organisations have to adapt themselves to the environmental changes

by making suitable, internal arrangements such as convincing employees who normally

have the tendency of resisting any changes.

Organisational behaviour can be viewed from different perspectives or levels of analysis.

At one level, the organisation can be viewed as consisting of individuals working on

tasks in the pursuit of the organisational goals. A second level of analysis focuses upon

the interaction among organisational members as they work in' teams, groups and

departments. Finally, organisational behaviour can be analysed from the perspective of

the organisation as a whole.

Organisation at the Individual Level: Organisational behaviour can be studied in the

perspective of individual members of the organisation. This approach to organisational

behaviour draws heavily on the discipline of psychology and explains why individuals

behave and react the way they do to different organisational policies, practices and

procedures. Within this perspective, psychologically based theories of learning,

motivation, satisfaction and leadership are brought to bear upon the behaviour and

performance of individual members of an organisation. Factors such as attitudes, beliefs,

perceptions and personalities are taken into account and their impact upon individuals’

behaviour and performance on the job is studied.

Organization at the Group Level: People rarely work independently in organisations;

they have to necessarily work in coordination to meet the organisational goals. This

frequently results in people working together in teams, committees and groups. How do

people work together in groups? What factors determine whether group will be cohesive

29

and productive? What types of tasks could be assigned to groups? These are some of the

questions that can be asked about the effective functioning of groups in organisations. An

important component of organisational behaviour involves the application of knowledge

and theories from social psychology to the study of groups in organizations.

Organisation at the Organizational Level: Some organisational behaviour researchers

take the organisation as a whole as their object of study. This macro perspective on

organisational behaviour draws heavily on theories and concepts from the discipline of

'sociology'. Researchers seek to understand the implications of the relationship between

the organisation and its environment for the effectiveness of the organisation. Emphasis

is placed upon understanding how organisational structure and design influences the

effectiveness of an organisation. Other factors such as the technology employed by the

organisation, the size of the organisation and the organisation's age are also examined and

their implications for effective organisational functioning are explored. These different

perspectives on the study of organisational behaviour are not in conflict with one another.

Instead they are complementary. A full and complete understanding of the nature of

organisations and the determinants of their effectiveness requires a blending of

knowledge derived from each perspective.

Organisational behaviour starts with the following six fundamental concepts revolving

around the nature of people and organizations: The nature of people: Individual

differences, A whole person Motivated behavior, Value of the person.

Individual Differences: Individuals are different in their physical and mental traits. They

are different not only in the physical appearance such as sex, age, height, weight,

complexion and so on but also different in their psychological trait such as intelligence,

attitude, motivation and perception. This belief that each person is different from all

others is typically called the 'Law of Individual Differences'. Individual differences mean

that the management has to treat them differently to get the best out of them.

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A Whole Person: Though the organization may feel that they are employing only the

individual's skill or intelligence, in fact, they employ the 'whole person'. This means that

individual does not have only the skill and intelligence but he has a personal life, needs

and desires as well. In other words, his personal life cannot be separated from his work

life since people function as total human beings.When management practices

organisational behaviour, it is not only trying to develop a better employee but it also

wants to develop a 'better person' in terms of all round growth and development. The

benefit will extend beyond the firm into the larger society in which each employee lives.

Motivated behavior: It is the urge of the individual to satisfy a particular need that

motivates him to do an act. The motivation could be positive or negative. Motivation is

essential for the proper functioning of organisations. The organisation can show to its

employees how certain actions will increase their need fulfilment.

Value of the Person: It is more an ethical philosophy. It stresses that people are to be

treated with respect and dignity. Every job, however simple, entitles the people who do it

to proper respect and recognition of their unique aspirations and abilities.

Since organisational behaviour involves people, ethical philosophy is involved in one

way or the other. The nature of an organisation can be understood with the help of

description of following two points:

Social System: A system is a group of independent and interrelated elements comprising

a unified whole. In context with an organisation, the individuals of a society are

considered as a system organised by a characteristic pattern of relationships having a

distinctive culture and values. It is also called social organisation or social structure. It

can be further divided into following categories: A) Feudal system: This is a social

system, which is developed in Europe in the 8th Century. A political and economic

system based on the holding of. land and relation of lord to vassal and characterized by

homage, legal and military service of tenants, and forfeiture. B) Patriarchate: This is

social system, in which a male is considered to be the family head and title or surname is

31

traced through his chain. In other words, power lies in his hands. C) Matriarchate: This

is social system, in which a female is considered to be the family head and title or

surname is traced through her chain. In other words, power lies in her hands.

D) Meritocracy: This is a social system, in which power vests in the hands of the person

with superior intellects. E) Class Structure: This is a social system of different classes

with in a society. F) Segregation: This is a social system, which provides separate

facilities for minority groups of a society.

Mutual Interest: Organizational relationships are most likely to be strong if different

groups can negotiate strategies. This can be defined as the interests that are common to

both the parties and are related to the accomplishment of their respective goals. This

space for sharing ideas builds trust. Individuals who have shared mutual interests are

likely to make their organisation the strongest, because even though the views are

different they have a shared concern for similar objectives. It is important for the

individuals to think about their issues openly, and to incorporate the perspectives of their

colleagues. This helps to build sustainable and harmonious activities that can operate in

the mutual direct interests of the organisation.Holistic Organisational Behaviour: When

the above six concepts of organisational behaviour are considered together, they provide

a holistic concept of the subject. Holistic organisational behaviour interprets people-

organisation relationships in terms of the whole person, whole group, whole organisation

and whole social system. Thus, the blending of nature of people and organisation results

in an holistic organisational behaviour.

Organizational behavior is a study of individuals including the behavior within the

context of the organization in a workplace setting. Organization behavior seeks to explain

the behavior of individuals and their performance at work, both individually and in a

group. The nature of social structures or organizations (comprising of several work

groups) and organizational design are also dealt in the study of OB. Organizations

comprise of human beings who are highly complex and unpredictable in nature. The

management of organizations is therefore a challenging task. Increasing diversity,

knowledge and information explosion, strategic partnerships, global competition and

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emphasis on total quality management are the other challenges confronting managers in

the modern times. Organizational Behavior (OB) is a discipline that deals with the study

and application of knowledge about how people as individuals and as groups act within

organizations.

Fred Luthans defines OB as "The understanding, prediction and management of

human behavior in organizations." It also attempts to explain the processes that

contribute to individuals and groups adapting their behavior in response to the changing

environmental conditions to achieve organizational goals. In this chapter, we will discuss

the theoretical framework and would throw meaningful insights on individual and group

behavior offered by OB which can help managers deal with complex situations at the

workplace.

The organizational behaviour has a goal lo help the managers make a transition to the

new paradigm. Some of the new paradigm characteristics include coverage of second-

generation information technology and total quality management such as empowerment,

reengineering and benchmarking, and learning organization for managing diversity of

work. The new paradigm sets the stage for the study, understanding, and application of

the time-tested micro-variables, dynamics and macro-variables. One must know why

management needs a new perspective to meet the environmental challenges and to shift

to a new paradigm. Management is generally considered to have three major dimensions

ie ; technical, conceptual and human. The technical dimension consists of the manager's

expertise in particular functional areas.

They know the requirements of the jobs and have the functional knowledge to get the job

done. But the practicing managers ignore the conceptual and human dimensions of their

jobs. Most managers think that their employees are lazy, and are interested only in

money, and that if you could make them happy in terms of money, they would be

productive. If such assumptions are accepted, the human problems that the management

is facing are relatively easy to solve. But human behaviour at work is much more

complicated and diverse. The new perspective assumes that employees are extremely

33

complex and that there is a need for theoretical understanding given by empirical

research before applications can be made for managing people effectively.

The organizational behaviour is a delicate and complex process. If one aims to manage an

organization, it is necessary to understand its operation. Organization is the combination

of science and people. While science and technology is predictable, the human behaviour

in organization is rather unpredictable. This is because it arises from deep needs and

value systems of people. The real beginning of applied research in the area of

organizational behaviour started with Hawthorne Experiments. In 1924, a group of

professors began an enquiry into the human aspects of work and working conditions at

the Hawthorne plant of Western Electric Company, Chicago. The findings of these

studies were given a new name 'human relations' the studies brought out a number of

findings relevant to understanding human behaviour at work. The Human element in the

workplace was considerably more important. The workers are influenced by social

factors and the behaviour of the individual worker is determined by the group. Hawthorne

studies have been criticized for their research methods and conclusions drawn. But their

impact on the emerging field of organizational behaviour was dramatic. They helped

usher in a more humanity centered approach to work.

There are mainly four approaches to organizational behaviour. They are Human

resources approach, Contingency approach, Productivity approach, and Systems

approach.

The human resources approach is concerned with the growth and development of

people towards higher levels of competency, creativity and fulfillment, because people

are the central resource in any organization. This approach help employees become better

in terms of work and responsibility and then it tries to create a climate in which they can

contribute to the best of their improved abilities. This approach is also known as

'supportive approach' because the manager's primary role changes from control of

employees to providing an active support for their growth and performance.

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A contingency approach to organizational behaviour implies that different situations

require different behavioral practices for effectiveness instead of following a traditional

approach for all situations. Each situation must be analyzed carefully to determine the

significant variables that exist in order to establish the more effective practices. The

strength of this approach is that it encourages analysis of each situation prior to action.

Thus, it helps to use all the current knowledge about people in the organization in the

most appropriate manner.

Productivity approach is a ratio that compares units of output with units of input. It is

often measured in terms of economic inputs and outputs. Productivity is considered to be

improved, if more outputs can be produced from the same amount of inputs. But besides

economic inputs and outputs, human and social inputs and outputs also arc important.

A system is an interrelated part of an organization or a society that interacts with

everyone related to that organization or society and functions as a whole. Within the

organization 'people' employ 'technology' in performing the 'task' that they are

responsible for, while the 'structure' of the organization serves as a basis for co-ordinating

all their different activities. The systems approach view emphasizes the interdependence

of each of these elements within the organization, if the organization as a whole is to

function effectively. The other key aspect of the systems view of organization is its

emphasis on the interaction between the organization and its broader environment,, which

consists of social, economic, cultural and political environment within which they

operate.

Organizations are dependent upon their surrounding environment in two main ways:

First, the organization requires 'inputs' from the environment in the form of raw

material, people, money, ideas and so on. The organization itself can be thought of as

performing certain 'transformation' processes, on its inputs in order to create outputs in

the form of products or services.

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Secondly, the organization depends on environment such as, public to accept its

output. The systems view of organization thus emphasizes on the key interdependencies

that organizations must manage. Within themselves the organizations must trade off the

interdependencies among people, tasks, technology and structure in order to perform their

transformation processes effectively and efficiently. Organizations must also recognize

their interdependence with the broader environments within which they exist.

Organizational behaviour can be treated as a distinct field of study. It is yet to become a

science. Now efforts are being made to synthesize principles, concepts and processes in

this field of study.

Organizational behaviour is basically an interdisciplinary approach. It draws heavily

from other disciplines like psychology, sociology and anthropology. Besides, it also takes

relevant things from economics, political science, law and history. Organizational

behaviour integrates the relevant contents of these disciplines to make them applicable

for organizational analysis.

The basic objective of organizational behaviour is to make application of various

researches to solve the organizational problems, particularly related to the human

behavioral aspect.

Organizational behaviour is a normative science. A normative science prescribes how the

various findings of researches can be applied to get organizational results, which are

acceptable to the society. Thus, what is acceptable by the society or individuals engaged

in an organization is a matter of values of the society and people concerned.

Organizational behaviour focuses the attention on people from humanistic point of view.

It is based on the belief that needs and motivation of people are of high' concern. Further,

there is optimism about the innate potential of man to be independent, creative, predictive

and capable of contributing positively to the objectives of the organization.

Organizational behaviour is oriented towards organizational objectives. In fact,

organizational behaviour tries to integrate both individual and organizational objectives

so that both are achieved simultaneously. An individual's behaviour can be analyzed

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keeping in view his psychological framework, interpersonal-orientation, group influence

and social and cultural factors; Thus, individual's nature is quite complex and

organizational behaviour by applying systems approach tries to find solutions for this

complexity.

The study of Organizational Behaviour (OB) is very interesting and challenging too. It is

related to individuals, group of people working together in teams. The study becomes

more challenging when situational factors interact. The study of organizational behaviour

relates to the expected behaviour of an individual in the organization. No two individuals

are likely to behave in the same manner in a particular work situation. It is the

predictability of a manager about the expected behaviour of an individual. There are no

absolutes in human behaviour. It is the human factor that is contributory to the

productivity hence the study of human behaviour is important. Great importance

therefore must be attached to the study.

Researchers, management practitioners, psychologists, and social scientists must

understand the very credentials of an individual, his background, social framework,

educational update, impact of social groups and other situational factors on behaviour.

Managers under whom an individual is working should be able to explain, predict,

evaluate and modify human behaviour that will largely depend upon knowledge, skill and

experience of the manager in handling large group of people in diverse situations.

Preemptive actions need to be taken for human behaviour forecasting. The value system,

emotional intelligence, organizational culture, job design and the work environment are

important causal agents in determining human behaviour. Cause and effect relationship

plays an important role in how an individual is likely to behave in a particular situation

and its impact on productivity. An appropriate organizational culture can modify

individual behaviour. Recent trends exist in laying greater stress on organizational

development and imbibing a favorable organizational culture in each individual. It also

involves fostering a team spirit and motivation so that the organizational objectives are

achieved.

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ORGANIZATIONAL BEHAVIOUR AND ITS IMPACT ON EMPLOYEES

BEHAVIOUR

Occupational stress is a pervasive problem that has generated substantial research

attention over the past decade. Consistent exposure to stressful working conditions has

been associated with both short- and long-term individual reactions, including negative

affect , job dissatisfaction , burnout , physical symptoms , psychological strains and

even increased mortality rates. In addition to individual costs, the direct and indirect cost

of occupational stress incurred by organizations is estimated to be more than $150 billion

per year . Such estimates are predicated on the assumption that stress can lead to

outcomes such as increased absenteeism, turnover, health care costs, and workplace

accidents. Considering the potentially widespread adverse effects of occupational stress,

it is important to understand ways in which such stressful working conditions can be

prevented or ameliorated. Such prevention strategies have been classified in terms of

primary prevention (i.e., population-based interventions applied to all people), secondary

prevention (i.e., interventions for people who are at high-risk for illness or injury), and

tertiary interventions (i.e., interventions for people who are at high-risk for illness or

injury), and tertiary interventions (i.e., interventions that target people experiencing

symptoms of illness or injury, such as through individual counseling). Leadership

behavior is likely to be an integral, yet understudied factor in the stress process that

should be amenable to change in primary prevention efforts. As salient members of the

work environment, leaders have a direct influence on subordinate behavior. As such,

leaders may either increase stress (e.g., through using excessive control) or they can

prevent stressors or facilitate coping with stress. Of the many ways that leadership can be

studied in the context of occupational stress (e.g., leader emergence in times of stress,

sources of stress in the leadership role), the effects of leadership on stress in subordinates

is perhaps the least understood.

“It’s not fair” is a common remark we hear from people of all ages. Fairness

matters to children playing in a playground, students receiving grades, and adults making

a living. Standard English dictionaries list “justice” and “fairness” as synonyms. In a

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colloquial sense, justice and fairness encompass virtues such as moral rightness, equity,

honesty, and impartiality. Fairness, or justice, is one of the most fundamental concerns in

society. Cohen claims that justice is “a central moral standard against which social

conduct, practice, and institutions are evaluated” . A phrase such as “a fair day’s pay for a

fair day’s work” symbolizes the importance of fairness at work to employees. In their

qualitative analysis of employees’ accounts of their jobs, Polayni and Tompa found the

quality of social interactions as one of the emerging concepts that are central to

employees’ work life. Desirable characteristics of social interaction included fair

treatment. While fairness is important for a good workplace, unfairness is often workers’

actual experience. Mikula found that the workplace was one of the social settings where

most unfair events occurred. Employees’ perceptions of and responses to fairness at the

workplace, termed organizational justice, have been important topics in organizational

psychology. Major concepts of organizational justice and employees’ reactions to

various types of injustice in organizations have been well documented. Since most

organization justice research has been conducted by organizational behavior researcherit

has tended to focus on outcomes related to the efficiency of organizational functioning:

job performance, absenteeism, employees’ commitment to the organization, and so on.

Recently, organizational injustice and its impact on health have started gaining attention

among occupational health researchers.

Redesigning jobs from a traditional workgroup structure to a semi-autonomous team

structure has become increasingly popular, but the impact of such redesigns on employee

effectiveness criteria has been mixed. The present longitudinal quasi-experimental study

showed that although such a redesign had positive effects on 3 performance behaviors

(effort, skill usage, and problem solving), its effectiveness also depended on aspects of

the organizational context. In conditions where the organizational reward and feedback

and information systems were effective, redesigning work into a semi-autonomous team

structure had no discernible effect on performance behaviors. In conditions where these

systems were poor, however, such a redesign produced large positive benefits. This

suggests that work redesigns that enhance worker autonomy are most effective in

contexts where other supportive management systems are absent.

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Team-based approaches to organizing work have become very popular in the last two

decades. In many instances, organizations have decided to redesign work (at considerable

effort and expense) from individually oriented jobs in traditional workgroup structures to

more autonomous team structures. In traditional workgroups, employees perform

production activities but have no management responsibility or control over planning,

organizing, directing, staffing, or monitoring, whereas in semi-autonomous teams

employees both manage and execute major production activities. It is hoped that

structuring work into semi-autonomous teams will enhance effort, cooperation,

communication, skill utilization, learning, and problem solving when compared with

more independent forms of work design.

If the voluminous popular business press is to be believed, the use of semi-autonomous

teams is a sort of panacea for organizational ills and is generally preferred to traditional

workgroups. Autonomous and semi-autonomous teams have been forwarded as a way of

transforming "isolated, reluctant, cynical, immature, apathetic employees" into

"connected, motivated, value-driven, responsible employee-owners". In addition, it has

been suggested that "any team-if it focuses on performance regardless of where it is in the

organization or what it does-will deliver results beyond what individuals acting alone in

non-team working situations could achieve". Such a belief in the transformative powers

of teams has been termed the "romance of teams" by some.

Such promotion of semi-autonomous teams, however, may simply reflect management

fashion, or the "relatively transitory collective belief, disseminated by management

fashion setters, that a management technique leads [sic] rational management progress"

(Abrahamson, 1996, p. 257). According to Abrahamson (1991, 1996), management

fashions present two dangers to organizations: (a) following the advice of management

fashion setters (e.g., consulting firms, management gurus, and mass-media publications),

organizations may adopt technically inefficient administrative technologies; or (b)

organizations may reject technically efficient administrative technologies that are not

currently fashionable.

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If semi-autonomous teams are merely a management fashion, it is likely that many

organizations have redesigned work into team-based structures when they were not really

needed. Research that has investigated the effectiveness of team-based designs suggests

that this might actually be occurring, in that some have found positive results whereas

others have shown mixed results. These varied results suggest that the effectiveness of

transitioning to team-based designs depends on other factors, in which case organizations

should consider these factors before deciding to redesign work into more semi-

autonomous structures.

The danger, of course, lies in the costs and risks that organizations take when redesigning

work. Increasing the autonomy of workers through the use of semi-autonomous teams

means that organizations cede control to the workers, thus putting themselves at risk that

the workers will make poor decisions, be negligent in their duties, or otherwise act in

ways that are inconsistent with organizational interests. Moreover, although autonomy

may be easily given, it is not easily taken back. Therefore, an organization that redesigns

jobs into more semi-autonomous structures and finds that they did not work is likely to

encounter great difficulty reverting to their former design. Finally, research has shown

that process losses can occur in team-based structures. Conformity pressures Hackman, ,

group polarization, social loafing and free-riding (Albanese & Van Fleet, 1985) are well-

known problems associated with team- or group-based work. As such, it is not clear that

organizing work around teams is always better than organizing it around individuals.

Given these risks organizations incur in moving to semi-autonomous team designs, it is

surprising that relatively little systematic empirical research has investigated work

redesigns in which jobs that were performed in traditional workgroups are redesigned

into more semi-autonomous teams and shown when it is most appropriate.

A dominant culture of conformity and followership generates "more of the same", while a

culture encouraging individualism and leadership produces new products or methods of

production by harnessing employee creativity and innovation. For the purposes of this

discussion, the terms creativity and innovation will be used together as well as

41

interchangeably, although they are not in reality synonymous. Creative thinking leads to

change and if that change provides social or economic benefits, the result becomes an

innovation. Drucker (1999) argues that the search for innovation must be systematic and

purposeful, as opposed to waiting for the accidental light bulb experience. This

discussion attempts to explain why the rhetoric supporting the systematic and purposeful

pursuit of innovation is not always acted upon in reality.

Behaviour in organisations has often been described in metaphorical terms. When

discussing productivity and automation, it is useful to make reference to the highly

organised nature of ants and termites. One vivid illustration can be seen in the manner in

which some insects appear to be organised for the purpose of the greater good of the

colony, hive, or nest. In contrast with human enterprises, insect activities do not produce

or require managers to oversee their work and their construction projects. How can they

achieve such seemingly amazing results without an architectural, planning, managing,

leading, organising, or supervising function? Clark (1997), using the example of nest-

building behaviour of termites explains that nest building is under the control of what are

known as stigmergic algorithms. Clark (1997) describes the process like this: termites

make mud balls that at first are deposited at random. Each ball carries a chemical trace

added by the termite. Termites prefer to drop the mud balls where the chemical trace is

strongest. Probability suggests that most of the mud balls will be deposited on top of old

ones, serving to generate an even stronger attractive force. Columns begin to be formed.

When two columns are fairly close together, the drift of chemical attractants from the

neighbouring column influences the dropping behaviour by inclining the insects to

preferentially add to the side of each column that faces the other. This process continues

until arches are formed, and through more stigmergic effects, a complexity of tunnels and

chambers result. Clark (1997) emphasises that at no point during this process is a plan of

the nest represented or followed. No termite acts as construction leader. No termite

"knows" anything beyond how to respond when confronted with a specific patterning

of its local environment. The termites do not talk to one another in any way, except

through the environmental products of their own activity. While we may marvel at the

success of stigmergic algorithms for achieving end results for termite colonies, such

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programmed mindlessness cannot be equated with the reality of human organizational

life. We know that people do not work under the influence of stigmergic algorithms, and

yet there are many parallels that can be drawn, which seem to have a disproportionately

large influence on the way our organisations function or on the way some would wish

them to function. Frederick Taylor, the founder of the scientific management movement,

perhaps misinterpreted by some for his "alleged inhumanity" towards workers (Pugh and

Hickson, 1996), could be accused of attempting to initiate something akin to stigmergic

algorithms through the application of rigid work patterns and clearly defined laws,

principles, and rules. In a sense it could be argued that he attempted to produce

unthinking clones that would work as efficiently as machines or termites.

Organisations no longer adhere to such beliefs or do they? Some organisations have

deeply embedded cultures, traditions, and operating procedures designed to reduce the

cognitive load for individuals, supposedly making their work easier and of a standardised

nature. However, the reduced need to think often results in performance rigidity, the

consequence of an over-reliance on plans, strict operating policies, and deeply entrenched

procedures a type of human stigmergic algorithm. It is argued that reliance on such

"automated" systems increases the risk that the organisation will eventually lose its

competitive edge through the loss of individualistic and innovative employee behaviour.

The impact on the organisation can be quantified in lost earnings, due to the introduction

of fewer new ideas, and as a consequence fewer new products or services for the

customer.

The organisation may also experience higher operating costs due to low morale,

increasing staff turnover, and unnecessarily inflated training and recruitment costs. The

result is a demoralised and alienated staff, and for the organisation, reduced

competitiveness. This is supported by Greenwood and Hinings (1996) who warn that a

stagnant organisation (one that cannot innovate to meet evolving environmental

conditions) will eventually find itself unable to compete in an increasingly complex and

technologically sophisticated economy. An organisation, as with a single individual, will

43

economise by developing patterned thinking, finding security in the establishment of

routine habits such as meetings and standardised decision-making procedures. This is

analogous to the termites' use of stigmergic algorithms for directing their nest

building behaviour, the result is efficient and economic activity, but with minimal, if any

exploitation of opportunities. Roberts (1988) suggests that innovation requires two parts,

the generation of an idea or invention, and its exploitation through a business or other

application. Therefore, efficient economic activity without purposeful exploitation cannot

be called innovation. For several decades now, it has been fashionable for organisations

to be seen to thrive in the midst of chaos (Peters, 1987), to be creative, and for

management to encourage innovative behaviours amongst employees , encouraging them

to escape from predictable and conventional patterns of thought. Managers have been

encouraged to foster a culture better equipped to cope with the rapidity of change and the

unpredictability of the times (Galbraith, 1982; Schuler, 1986; Waterman, 1987).

Drucker long ago punctuated the importance of creative and innovative behaviour in

business by arguing that there are only two basic functions in business - marketing and

innovation. He claimed that marketing and innovation produce results and the "rest"

should simply be viewed as costs to the organisation (Drucker, 1974). Managerial

thinking has undergone a number of stages of an evolutionary process. Managers and

theorists have cycled through a variety of "fashions" including efficiency, zero defects,

quality, flexibility, learning, and innovation. Stuart Young, the executive chairman of

New Zealand's Interlock Industries, who successfully entered the highly competitive

Japanese market, maintains that it is innovation and not quality or any of the other

management fashions that has made Interlock Industries so successful in Japan

(Gilbertson and Gilbertson, (1992). Creativity and the ability to demonstrate initiative are

seen to be key criteria for achieving success and ensuring survival for all organisations

(Day, 1994). The focus on creativity and innovation may be a step in management's

evolutionary process that will improve by ongoing and incremental refinements rather

than a complete paradigm shift, as has occurred with earlier management fashions.

Authors, academics, and consultants have described the benefits of creativity and

innovation with almost evangelical zeal. How effective have these proponents of change

44

been in altering the way that organisations operate? Increased displays of initiative,

innovation and creativity are difficult to quantify. Creativity and other cognitive

processes are what Clark (1989) calls in-the-head functions because they lack

transparency. Constructive creative behaviour and resulting innovations are therefore

often only known to have occurred in organisations by outcomes such as successful new

products, services, and/or the introduction of more effective new operating procedures.

Authors such as Ettlie (2000) and Janszen (2000) argue that this is the age of innovation.

Janszen (2000) explains that innovation - new technologies, new applications in the form

of new products and services, the development of new markets, and/or the introduction of

new organizational forms - will result in increased net value for customers and ultimately

the firm. Such "rational" approaches include a dogmatic belief in the value of

restructuring. Some managers, it seems, would prefer to focus on continuing cost-cutting

measures, rather than offset the loss of "mass" with other forms of competitive strategies

such as the systematic pursuit of innovation to stimulate growth and increase turnover.

Research by Amabile and Conti (1999) suggests that corporate decision makers of the

future should approach downsizing with great caution. They argue that the long-term

negative effects of such actions oncreativity and innovation may only retrigger the

corporate woes that started the cycle in the first place. Too much emphasis on cost-

cutting and downsizing results in an increasing number of anorexic and/or neurotic

organisations, with little energy and falling capability. A large amount of effort is

expended in self-recrimination (from too much inward looking behaviour that often

results in unnecessary or destructive restructuring programmes) and repetitive

expressions of helplessness and anxiety concerning the future. These symptoms are

comparable with people suffering from episodes of somatoform disorder. Soma means

"body". In somatoform disorders, psychological disorders take a physical form.

Davison and Neale (1998) explain that such disorders have no known physiological

explanation and are not under voluntary control, but are thought to be linked to

psychological factors, possibly anxiety. Emotional energy is converted into self-injurious

45

physical energy, resulting in symptoms such as blindness and deafness - common

(metaphorically speaking) traits amongst downsized organisations. Organisations

displaying symptoms analogous to somatoform disorder ignore or reject unpalatable

business intelligence about the market and their competitors (they have become blind and

deaf to external cues and sometimes are incapable of seeing the damage that they inflict

upon themselves as well), thereby losing their capacity for informed competitive

responsiveness to external threats. Interpersonal problems are prominent and this is often

evidenced through recurring industrial disputes. Additional levels of stress, often self-

inflicted through painful restructuring programmes, exacerbate the symptoms with panic

attacks, increased anxiety, and collective depressive disorders.

According to Mintzberg (1994) the preoccupation with "self" is justified and given an

aura of legitimacy with accompanying explanations that the firm is using "rational"

management approaches by concentrating on"efficiency", "coordinated effort",

"improved control", "strategic planning", and "waste reduction". Meanwhile, market

share and morale plummet. Christensen (1997) comments that disruptive technologies are

particularly easy to overlook and can be particularly dangerous. The anorexic/neurotic

organisation will be unaware of such looming threats from competitors; its focus is

on"efficiency". Saul (1993) discussing the effects of an over-emphasis on efficiency

within society, complains that "the rational and logical approach to thought and

procedural systems may have removed democracy's single greatest strength - the ability

to act in an unconventional manner". Society - in the form of the organisations it has

created to achieve its aims - also may as a consequence have lost it sability to accept or

tolerate unconventional behaviour. It may have become a prisoner of conventional

solutions. This is the antithesis of current prescriptions for success, which use terms such

as create, exploring alternatives, right-brain thinking, whole-brain thinking, intuition,

reflecting, examining, challenging assumptions, divergent thinking, and so forth to

describe ways of effecting change in today's world (Brookfield, 1987; de Bono, 1990;

Gardner, 1993). Colgrove (1968) claimed that the mere action of instructing someone to

be creative and to avoid obvious approaches to a problem would result in unique or

creative ideas. This may be more successful if the organisation implements

46

complementary changes that further support the emergence of creativity. Often however,

the rhetoric is not supported and rigid systems and procedures guard against the

emergence of anything even vaguely resembling what are perceived to be non-

conformist behaviours and this is expressed in promotion policies, the allocation of

resources, and the complexity of decision-making processes. The workplace is a forum

where a variety of different behaviors are expressed, each with a different consequence to

the individuals within the organization as well as the entire organization. These behaviors

usually fall within the constructs of the norms of the organization.

Organizational norms are a grouping of "expected behaviors, languages, principles and

postulations that allow the workplace to perform at a suitable pace" Coccia, (1998).

However, when normal work behavior goes outside the norms of the

organization,its consequences are far-reaching and affect all levels of the organization

including its decision-making processes, productivity and financial costs Coccia (1998).

Researchers have given these behaviors many different names including workplace

deviance Bennett and Robinson, (2003), counterproductive behavior Mangione and

Quinn, (1975), and antisocial behavior Giacolone and Greenberg, (1997). In

essence, behavior is deemed deviant when an "organization's customs, policies, or

internal regulations are violated by an individual or a group that may jeopardize the well-

being of the organization or its citizens" Robinson and Bennett, (1995). The management

of negative deviant behavior in the workplace is of growing concern in organizations

globally since such behaviors can be detrimental to their financial well-being. Whether

the negative deviance is explicit or subconscious, whether it involves sexual harassment,

vandalism, rumorspreading, and corporate sabotage or otherwise,

unauthorized organizational behavior has negative consequences for the entity.

Negative deviant behaviors include employee delinquencies such as not following the

manager's instructions, intentionally slowing down the work cycle, arriving late,

committing petty theft as well as not treating co-workers with respect and/or acting

rudely with co-workers Galperin, (2002). It is important to note the difference between

47

unethical behavior and negative deviant behavior because while the former deals with the

breaking of societal rules, the latter focuses on violation of significant organizational

norms. Spreitzer and Sonenshein, (2004). Spreitzer and Sonenshein (2004) contend that

the research on deviance in the workplace overlooks how establishments and their

affiliates exhibit positive sets of behaviors not merely negative ones. The literature

on positive deviance is almost exclusively zeroed in on the negative aspects of workplace

deviance. For example, Sagarin (1975) arrived at 40 different definitions of deviance and

only two are nonnegative. Dodge (1985) broadened the discipline of organizational

behavior by coining the term positive deviance, but was antagonized by scholars such as

Sagarin (1975) who argued against the validity of the term. In order to shed

light on positive deviance in this article, a definition of the term is proposed, and different

types of positive deviant behaviors will be examined. Positive deviance is defined as

"intentional behaviors that depart from the norms of a referent group in honorable ways"

Spreitzer and Sonenshein, (2003). In other words, positive deviant behavior must be

praiseworthy and must focus on actions with honorable intentions, irrespective of the

outcomes Spreitzer and Sonenshein, (2003). Positive deviant behaviors may

comprise behaviors that organizations do not authorize, but help the organization

reach its financial and economic goals. Thus, positive deviant behaviors may

include behaviors such as innovative behaviors, noncompliance with dysfunctional

directives, and criticizing incompetent superiors (Galperin, (2002). The growing interest

in the study of positive workplace behaviors can be attributed at least in part to the

increasing awareness of positive organizational scholarship (POS). POS focuses on the

"dynamics that lead to developing human strength, producing resilience and restoration,

fostering vitality, and cultivating extraordinary individuals, units and organizations"

Cameron et al., 2005).

Positive organizational scholarship is based on the idea that comprehending to the ways

to "enable human excellence in organizations will unlock potential, reveal possibilities,

and facilitate a more positive course of human and organizational welfare" Cameron et

al. , (2005). The impetus for the growing interest in deviant behavior is the increasing

48

prevalence of this type of behavior in the workplace and the enormous costs associated

with such behavior Peterson,(2002).

The financial impact alone of workplace deviance on the US economy, for example, is a

substantial one. This is due to the fact that three out of every four employees reported

having stolen at least once from their employers. Furthermore, incidences of negative

workplace deviance are now soaring out of control, with nearly 95 percent of all

companies reporting some deviance-related experience within their respective

organizations Henleet al. , (2005). Up to 75 percent of employees have engaged in one

form or another of the following deviant behaviors: theft, computer fraud, embezzlement,

vandalism, sabotage or absenteeism Robinson and Bennett, (1995). The

estimated impact of widespread employee theft has been reported to be $50 billion

annually on the US economy Henle et al. , (2005). Other researchers estimate this

number in the range anywhere from $6 to $200 billion annually Robinson and Bennett,

1995). Moreover, victims of interpersonal workplace deviance are more likely to suffer

from stress-related problems and show a relatively decreased productivity, lost work time

and a relatively high turnover rate Henle et al., (2005). Thus, there is great incentive,

financial and otherwise, for organizations to prevent and discourage any negative

workplace deviance within their walls. Research has focused on negative behaviors that

may be considered deviant such as absenteeism, withdrawal, withholding effort,

and behaviors that lead to corporate inequality (Robinson and Bennett, (1995). Most of

the studies on negative deviant workplace behavior prior to 1995 were mostly concerned

with isolated attempts to answer specific questions about specific deviant acts such as

theft, sexual harassment and unethical decision making.

Robinson and Bennett (1995) integrated the various deviant workplace behaviors into a

single framework in order to gather the increasingly scattered research available on the

subject into one comprehensive chart. In this way, the researchers were able to integrate

numerous deviant workplace behaviors into a single framework. According to Robinson

49

and Bennett's (1995) typology of workplace deviance, deviant behavior varies along two

dimensions, minor versus serious and interpersonal.

"Organizational deviance" is a grouping of behaviors between the individual and the

organization that involves such things as theft, sabotage, lateness, or putting little effort

into work Robinson and Bennett, (1995). On the other hand, "interpersonal deviance" is

a behavior displayed between individuals in the workplace and involves behaviors such

as: belittling others, playing pranks on others, acting rudely, arguing, and physical

aggression Henle et al. , (2005).

The first dimension of Robinson's typology is the organizational-interpersonal dimension.

The axis ranges from deviance directed towards individuals to deviance directed towards

the organization. The second dimension of Robinson and Bennet's (1995) typology shows

the severity of workplace deviance ranging from minor to serious. The results of their

research yielded a two-dimensional chart which organizes deviant workplace behaviour

into four quadrants labeled: production deviance, property deviance, political deviance,

and personal aggression Robinson and Bennett, 1995). Robinson and Bennett's (1995)

typology of workplace deviance can be used to classify deviant behavior according

to organizational climate. Researchers have determined that the ethical climate of an

organization is a good predictor of unethical behavior Robinson and Bennett, (1995). The

ethical climate of an organization refers to the shared perceptions of what is ethically

correct behavior and how ethical issues should be handled in the organization Peterson,

2002).

The factors that influence the ethical climate of an organization include personal self-

interest, company profit, operating efficiency, team interests, friendships, social

responsibility, personal morality, and rules, laws and professional codes (Peterson,

(2002). Peterson (2002) performed correlation studies between different kinds of

deviance exhibited with the types of climates in the organization. The clearest

relationship linked political deviance with a caring climate (Political deviance is

50

classified as a minor form of deviance, for example, "favoritism, gossiping, and blaming

co-workers" Peterson, 2002). When the organizational climate is one that fosters the

sense in its employees that the organization cares about their welfare, then employees are

less likely to engage in politically deviant behaviors Peterson,(2002).

Another correlation was between property deviance and the climates of rules and

professionalism. In this case, organizations that uphold high adherence to company

policies are at the lowest risk for property deviance. Predictors of production deviance

top left quadrant) were most strongly correlated to instrumental climates within

organizations. Organizations in which individuals protect their self-interests are most

likely to put up with such deviance. The final category, personal aggression bottom right

quadrant) was not correlated with any organizational climate and is thus most strongly

related to the personality of the individual committing the deviant act Appelbaum et al. ,

2005). It is equally important to examine the workplace behavior spectrum and

investigate how positive deviance may or may not be classified as a pro-social type

of behavior.

The pro-social types of behaviours that are examined are organizational behaviors,

whistle-blowing, corporate social responsibility and creativity/innovation Spreitzer and

Sonenshein. All of these pro-social types of behaviors may indeed be classified as

positive deviant behaviors only if the behavior diverges from organizational norms,

the behavior is voluntary, and its intent is an honorable one Spreitzer and Sonenshein.

Spreitzer and Sonenshein's. While whistle-blowing may be perceived as negative deviant

workplace behavior, it may also be characterized as a positive. In effect, this perception is

highly dependant on the circumstances surrounding the disclosure of

the organizational offence by the employee in questi. Near and Miceli define whistle

blowing as "disclosure of illegal, immoral, or illegitimate practices under the control of

their employers, to a person or organizations that may be able to effect action". The first

to be aware of "any unethical, immoral or downright illegal" Anonymous,

(2003) organizational activities are most often employees, however they also the most

51

likely to make an objection the last, "fearing the loss of their job, their friends or their

potential for promotion. Lack of remedial action and concern that their objections will not

be kept private are the main reasons why employees decide not to speak out against

corporate wrong-doings Verschoor. However, whistle-blowers may act out of a sense of

personal ethics or sense of duty regardless of the opposing "organizational and situational

pressures" Vinten. For example, if an employee knows that the organization in which

she/he works is involved in illegal practices, disclosing this information voluntarily to

third-parties would be considered positive deviance Spreitzer and Sonenshein. In this

case, the behavior is considered an act of positive deviance because it goes outside the

constructs of the organizational norms, it is intentional, and the goal of the whistle-

blower is honourable Spreitzer and Sonenshein. But not all whistle-blowing is an

example of positive deviance. For example, some whistle-blowers may want to exact

revenge on an employer, or they may want to reap financial gain for

exposing organizational fraud Spreitzer and Sonenshein.

In this way, whistle-blowing may be regarded as an act of positive deviance in some

circumstances, while in other it is plainly not. Another group of pro-social behaviors that

differ from what is classically thought to be positively deviant behavior are

called organizational behaviors (OBs). that is defined as behavior outside the

requirements demanded of a person at a specific firm, but that will encourage efficient

running of the organization. While OBs are intended to enhance the performance of an

organization, positive deviance may or may not fulfill such a goal Spreitzer and

Sonenshein. Today's organizations are increasingly being held accountable for

contributing positively to the communities in which they live and engaging in socially

responsible actions. This organizational behavior has historically been known as

corporate social responsibility (CSR). Some of the CSR activities that companies carry

out include: environmentally friendly manufacturing processes, human rights programs,

and donations to charities Spreitzer and Sonenshein, . An important distinguishing feature

of CSR and positive deviance is that CSR activities may or may not conform

to organizational norms, but positive deviance requires a departure from organizational or

business norms Spreitzer and Sonenshein. The fourth type of pro-social behavior is

52

innovation. Innovation may enhance, and in some cases, hinder corporate performance

and productivity. Innovation is defined as "the successful implementation of creative

ideas within an organization" (Amabile et al. The literature on innovation suggests that

by its very nature, innovation requires, at least in part, a departure from

the organizational accepted norms .Galperin. This is because innovative thinking involves

the creation and development of new ideas that are not held by the majority Galperin,.

Thus, employees who display behaviors that are innovative can be considered positive

deviants. On the other hand, while creativity and innovation in the workplace may lead to

advancements in business practices, a great many of such behaviors do not fall within the

constructs of positive deviance Spreitzer and Sonenshein.

Taking the example from Spreitzer and Sonenshein of a computer hacker illustrates this

idea clearly. While the computer hacker may very well be creative and innovative in

creating new virus-spreading software it is not an act of positive deviance Spreitzer and

Sonenshein, (2004). This is because while they may be departing from the norms of the

organization in an innovative fashion, they are behaving in a way that is not considered

honorable. While there are a number of reasons why individuals may engage in

deviant behavior in the workplace the major one is that the organization in which they

work supports or encourages such behavior Sims,. While society values persons who are

honest and that are not deceitful, some organizations however depend on employees that

are dishonest and deceitful in order to be successful Sims,. These types of organizations

have been termed toxic and are characterized by a history of poor performance, poor

decision-making, very high levels of employee dissatisfaction and employee stress well

beyond normal workload issues Coccia,. Toxic organizations will develop under certain

circumstances. The first condition is for a relatively small work unit with a high level of

face-to-face interaction that stimulates interpersonal relationships Sims,. Under these

conditions, the "sick organization" will develop with a high interdependence of its

employees who have personal agendas that do not match with the needs of the

organization Sims.

53

The second condition for the development of a toxic organization is an ineffective

manager that is immoral or mentally unsound Sims. In light of this, organizations may be

viewed as falling on a continuum ranging from organizations that function well to toxic

organizations that are destructive to its employees and leaders Sims,. One postulate for

why toxic organizations encourage workers to engage in counter norms behavior has

been referred to as "bottom-line mentality" Appelbaum et al.. Sims explains this type of

mentality as encouraging unethical practices in order to reap financial gains. Individuals

who practice bottom-line mentality view workplace ethics as an obstacle to their main

goal of profit Appelbaum et al, . Another factor that causes individuals to engage in acts

of negative deviance in the workplace is the influence of deviant role models

Appelbaum et al..

Social learning theory proposes that deviant role models in an organization or in any

group in general, will influence others in the group to commit acts of deviance as well

Appelbaum et al. (2005). It is important to stress the influence of groups in the

workplace when assessing the effects of deviant behavior within organizational structure.

Aggressors (within the group) have lasting effects on emotional and organizational

outcomes due to the close proximity the aggressor may share with the victim. Research

suggests that deviant role models within a group setting will significantly influence others

within the group Appelbaum et al. Furthermore, organizational stressors have also have

been shown to lead to deviance. Studies suggest that all stressors, save for workload, had

a direct relationship with aggressive acts, theft and the wanting to quit Appelbaum et al.

Appelbaum et al. suggested that operational environment is a good predictor

of employees engaging in negative deviant workplace behavior. The research suggested

that it is the workplace environment characteristics rather than individual personality

characteristics that are a good predictor of workplace violence, an extreme form of

deviance. Studies have shown that employee violence can be assessed simply on job

characteristics such as the employee's contact with the public, working with firearms,

carrying out security functions, serving alcohol, supervising others, disciplining others

54

etc. Appelbaum et al In this light, it is important to realize that even though an individual

may uphold the highest moral standards, the type of organization one works for exerts a

strong influence on their members and may predispose them to engage in

deviant behavior. Another view that has gained recognition as a reliable predictor of

workplace deviance is called situation-based behavior, and it proposes that certain

conditions of the organizational environment predispose employees to deviance Henle,

(2005). Organizational factors that may contribute to employee deviance include "job

stressors, organizational frustration, lack of control over the work environment, weak

sanctions for rule violations and organizational changes such as downsizing" Henle,

(2005). Thus, situation-based deviance proposes that employees will perpetrate deviant

acts depending on the workplace environment, irrespective of their personal

characteristics Henle, (2005). Another perspective that is used as a predictor of workplace

deviance is called person-based perspective, and postulates that an individual's

personality, not the environment he is in, dictates his behavior Henle et al. In this view,

persons with a predisposition to deviance will likely be risk-takers, have a Type A

personality and negative affectivity Henle et al. Traditionally, situation-based and person-

based predictors of employee deviance were considered mutually exclusive. Today,

cognitive social theorists believe that there is a strong interaction between the person-

based and situation-based types of deviance. This is because personality is contextual and

it modifies how individuals interpret and thus respond to particular situations Henle,

(2005). Organizational behavior literature shows that there is a greater likelihood

that employees with engage in positive deviant behaviors once they are psychologically

empowered in the working environment Spreitzer and Doneson.

Spreitzer and Doneson states that "it is clear that psychological empowerment is likely to

be a key enabler of positive deviance".Here is the question, "what does it take for people

to be positively deviant?" Spreitzer and Doneson argues that an empowered mindset is

critical. Empowerment "enables employees to participate in decision making, helping

them to break out of stagnant mindsets to take a risk and try something new" Spreitzer

and Doneson,.

55

Organizational behavior researchers point out that, "the pervasive influence of norms

provides a means of control over what people say and do" Spreitzer and Doneson, .

"Positive deviance requires real risk, and it requires departing from norms in a positive

way - often making others uncomfortable" Spreitzer and Doneson, . In other words, when

companies enable their employees to be empowered the employees are more likely to

engage in risk-taking behaviors that depart positively from the norms of the organization

in a way that is beneficial to the organization. And, companies making

their employees empowered have led to much financial and psychological gain:

"supervisors who reported higher levels of empowerment were seen by their subordinates

as more innovative, upward influencing and inspirational" Spreitzer and Doneson,

(2005). Causes of deviant behavior have been studied on many different levels. To begin

with, it appears that on the individual level, deviant behavior cannot be attributed to

personality traits alone. As previously mentioned, it is more likely that

deviant behavior may be best predicted based on a combination of personality variables

and the nature of the workplace situation Peterson,. In addition to personality variables

and the workplace situation, other key factors in determining the likelihood of

deviant behavior within organizations include: unfair treatment, organizational culture

and climate, as well as supervisory behavior Caruana,. A strong relationship between

frustration and workplace aggression and/or deviant behavior was elucidated by

Robinson and Bennett . The psychological state of frustration was predicted in their study

to be associated with various forms of interpersonal deviance (i.e. spreading rumours or

acts of aggression) as well as organizational deviance (i.e. vandalism, theft and sabotage).

Results of their experimentation however brought light to the fact that frustration was not

in fact correlated with organizational deviance, and was simply associated (albeit

significantly) to interpersonal deviance Robinson and Bennett,.

Machiavellianism is another trait thought to be linked to the likelihood of deviant

behaviour within individuals and groups. It refers to a person's strategy in dealing with

co-workers by seeking to manipulate others into completing extraneous tasks within the

workplace Robinson and Bennett,. Such manipulation can often proceed to fall into

unethical practices for the overall financial benefit of the firm, while sacrificing moral

56

norms. According to a study by Robinson and Bennett , such a scale of Machiavellianism

was related to both interpersonal and organizational deviance. Bolin and Heatherly argue

that there are four major origins of deviant workplace behavior. It is believed that theft

approval, intent to quit, dissatisfaction with the organization as well as company

contempt are all symptomatic of workplace deviance. Symptoms manifested include

substance abuse, absenteeism, abuse of employment privileges and theft Bolin and

Heatherly,.

Although workplace deviance is most often destructive in nature, it may have a positive

aspect to it. For example, it may provide such things as a safety valve, it allows

workgroups to know of each others common interests, and could provide warning signals

to organizations. Different types of workplace deviance have a variety of consequences.

For example, interpersonal deviance can actually increase employee cohesion by building

interpersonal bonds, while organizational deviance can warn the company of impending

problems so that solutions can be devised Robinson and Bennett,. But where are the

leaders in all this deviance? Several studies have concluded that the basis of continuing

unethical behavior in the workplace is most likely linked to the lack of moral leadership

in an organization. The former CEO of WorldCom, Bernie Ebbers, was once affirmed as

a great leader for helping develop the company into a telecommunications superpower.

Ebbers' reputation was later destroyed, after failing to provide moral leadership during

WorldCom's publicly drawn financial scandals, which regrettably lead to one of the

biggest bankruptcy filings in US history Trevino and Brown. While his managerial skills

obtained great success for the company, Ebbers' lack of moral leadership led

to its ultimate demise. Leaders who engage in unethical practices often create an

atmosphere of allowance within the organization that is conducive to deviant employee

behavior that parallels that of the leader Trevino and Brown,. Employees will observe

the ethical judgment of their CEO or managing director and are often likely to imitate,

even if such imitation constitutes acting unethically. Oftentimes, whether or not a leader

is rewarded for his or her behaviour will also help determine the likelihood of employee

imitation. If we consider WorldCom's Bernie Ebbers, as well as Enron's Ken Lay, we

discover that their successes within those organizations were often acclaimed by

57

numerous financial analysts. They were deemed outstanding executive leaders who went

against the conventional beliefs of the financial world, often surpassing short-term

expectations Trevino and Brown,. Eventually, their successes instilled motivation within

the lower ranks of both firms, who would go to even greater unethical lengths to play a

role in their respective companies' outcomes Trevino and Brown.

This ultimate outcome of profit became the major goal for lower ranking officers of the

company (regardless of how unethical the means to get to it were) and would remain so

until each entity eventually defaulted Trevino and Brown, (2005). In addition to

leadership factors, research in organizational behavior demonstrates that employees

develop distinct judgments about the supportiveness of their employer as a whole and

that these judgments have significant effects on their performance (Settoon, Bennett, and

Liden (1996). One such judgment is perceived organizational support (POS), defined as

employees' "global beliefs concerning the extent to which the organization values their

contributions and cares about their well-being" (Eisenberger et al. (1986,). POS

perceptions are driven by numerous factors but are largely influenced by organizations'

human resource management (HRM) policies and practices (Allen, Shore, and Griffeth .

In recent years, more healthcare organizations have implemented HRM practices that

promote employee wellbeing, reasoning that such investments improve firm performance

For example, one hospital helps employees balance work-life demands by organizing

employee outings to amusement parks and athletic events and providing valet parking for

staff members in their third trimester of pregnancy. Other employers offer educational

assistance programs, with some providing up to $2,500 per year for tuition

reimbursement as well as loans of up to $15,000 [Modern Healthcare 2008a). These

examples demonstrate that employee support programs have become increasingly

common.

Punishment often has the immediate effect of correcting poor employee habits, but also

the long-term effects on the employee’s behavior typically outweigh the short-term

58

benefit. Although punishing the employee shows him the behavior is not acceptable, the

way the punishment is delivered could affect his behavior on the job and has the potential

to damage the business.

Punishment does not necessarily lead to outright hostility from an employee, but he might

act in ways aimed at harming the business in retaliation for the punishment, especially if

frequently used. A punished employee who is angry can stall business goals by doing the

least amount of work required to keep his job or by failing to point out obvious problems

with directions from management. An employer will not see the full work potential of an

employee who is angry or frustrated by punishment and views management as the enemy.

A punished employee sometimes resorts to hiding the offending behavior and even

concealing other behaviors or knowledge because of fear of further punishment. Anxiety

because of fear damages her motivation, morale and sometimes her ability to do her job.

For example, an employee who is punished for lateness might start sneaking in or trying

to otherwise hide her late arrival, creating a stressful shift start and affecting her work for

the day.

An employer cannot force ideas and innovations from employees, but positive work

behaviors encourage new ways of thought. However, punishment discourages employees

and hampers efforts to create or maintain a creative work environment. An employee who

is subject to punishments often sees no reason to go above and beyond routine duties for

various personal reasons, including anger at the way he is treated and the belief his work

contributions do not matter to the employer or management. He might not focus on work

goals if he is preoccupied with avoiding further disciplinary action.

Employees who feel a frequent threat of punishment often pull apart instead of staying

together to avoid standing out and becoming a target. Teamwork becomes nonexistent, as

the employees become reluctant to help each other and expose themselves to

management. Not only does this isolation harm morale, but overall production and

59

creativity suffers, and interpersonal problems may develop among the employees because

of the situation.

Companies rely on employees to produce and deliver high-quality products and services.

Employees are impacted by a variety of forces both internal and external as they attempt

to perform their job duties. Employers who are aware of these forces, and who are

prepared to leverage or counteract them, can increase productivity and loyalty.

A critical internal force that influences employee behavior is the actions of colleagues.

According to Entrepreneur.com, "creating an atmosphere of sharing and helping" was at

the top of the list during a roundtable brainstorming session at the Metro Atlanta

Chamber of Commerce when clients were asked to identify the primary forces that

improve effective customer service. Companies that can effectively build an internal

culture that is based on mutual respect, teamwork and support will notice increased

productivity and a sharper focus on service to customers.

Technology is a significant factor that can have both positive and disruptive influences on

employee behavior. While technology can often help streamline processes and make

work easier for employees, learning how to use new technology while remaining

productive can be stressful. Factor in the rapid advent of technology, in general, and

employers seem to be faced with an almost ongoing need for new training, process

improvement and documentation.Customer demands can be an external force that exerts

pressure on organizations to continually stay ahead of the competitive curve. Lin

Grensing-Pophal, a marketing consultant and author of "Marketing With the End in

Mind," suggests that companies must always monitor the external environment to be alert

to changes that can impact their operations—and their very existence. Employees must

adapt to the changing needs of customers, the growing savvy of customers and the

heightened expectations of customers, says Grensing-Pophal.

60

Employees are influenced by both internal and external forces, but the impact of these

forces depends a great deal on their own levels of internal and external locus of control,

says Al Siebert, Ph.D., author of "The Resiliency Advantage," at ResiliencyCenter.com.

Those who have an external locus of control are looking for people to tell them what to

do. These are the employees who need a great deal of direction and expect managers to

give clear and detailed feedback at all times. Those with an internal locus of control feel

empowered to make decisions and act on their own---they feel in control of their destiny

rather than at the mercy of external factors. These employees may sometimes act too

independently and are not as concerned about the opinions or expectations of others.

Companies are wise to anticipate and plan for both internal and external changes, say the

experts. According to a Medscape article on the impact of change on health-care

organizations, "a thorough and ongoing assessment of external and internal factors

exerting an influence on the organization is expected of senior leadership to define a

proactive plan of action in anticipation of strategic threats." By remaining aware of how

these internal and external factors could impact employees, organizations, their HR

departments and managers can be prepared to respond to changing employee behavior.

Negative behavior could be dictated by feelings of anger, confusion and depression.

MAHARASHTRA’S PHARMACEUTICALS INDUSTRY

Maharashtra has Highest number of total number of manufacturers of pharmaceutical

units in India (29.7%). Maharashtra leads in Pharmaceutical exports with a share of 38%

in 2008-09. Major pharma clusters are Pune,Nashik, Aurangabad and Mumbai.

Maharashtra is a Leading producer of vaccines. Major pharmaceutical units such as

Pfizer, Johnson & Johnson,GlaxoSmithKline, Abbott, SunPharmaceutical Industries have

their presence in the state. Maharashtra’s strong position is displayed with around 3,139

manufacturing licensees. Maharashtra has strongly emerged as the top destination in

India for pharmaceutical sector, with a strong presence across the value chain.

61

Advantage Maharashtra

Highest FDI in the Country

SingleWindow Clearance Mechanism

Investor Facilitation Cell

Highest contribution to India’s GDP

Strong presence across value chain

Presence of all top pharmaceutical players

India’s financial hub

Abundant Land Bank

Strong Infrastructure

Worldwide Connectivity (Ports,Airports)

Abundant Natural Resources

Skilled Manpower and premiere R&D Centers

High product development capabilities

Availability of skilled manpower, R&D centers and training institutes

Large and growing domestic market

Large base of APIs and bulk manufacturing units

Proximity to international market

Noteworthy export potential, and high quality standards

Maharashtra has a strong skilled labor base supporting the pharmaceutical industry. The

state offers a strong educational infrastructure with technical institutions providing

pharmaceutical courses across the state. Maharashtra is a major center for both

production as well as exports of basic drugs and pharmaceuticals in the country. The state

accounts for about 40 percent of all India production of bulk drugs and formulations and

its share in all India exports of it, is nearly 33 percent. According to the business

executives in pharmaceutical industry in Maharashtra, their exports may not receive a

setback on account of Intellectual Property Rights (IPR) but instead of the same will have

better growth, as 75 percent of the drugs will be off the patent in value. New molecules

can be manufactured competitively because of availability of relatively low cost technical

62

manpower in the country. It envisages a scenario where the West will come to East to

buy the new molecules.

Maharashtra and Gujarat will continue to dominate this industry with more than half the

nation’s output and value addition. The Maharashtra Government has taken the right

steps by introducing stringent pollution control laws. The Indian Pharmaceutical

Industry today is in the front rank of India’s science-based industries with wide ranging

capabilities in the complex field of drug manufacture and technology. Indian

Pharmaceutical Industry in Pune and Nasik As compared to the entire Maharashtra

Pharmaceutical Companies in Nasik are less and in Pune there are Small Scale Industries

(SSI) as well as Medium Scale Industries (MED) companies.

63

CHAPTER 2

REVIEW OF LITERATURE

64

CHAPTER 2

REVIEW OF LITERATURE

This chapter includes the following literature: a review of organizational behavior,

employees behaviour studies, Impact of organizational behaviour on employees

behaviour.

Organizational behaviour Studies

Honingh, M., and Oort, F. (2009) compared teachers' organisational behaviour in

publicly- and privately-funded schools in the Dutch Vocational Education and Training

(VET) in publicly and privately funded schools (72 per cent and 43 per cent

respectively) herein distributed self-report questionnaires were distributed to teachers

measuring teachers' attitudes, sense of identification and perception of the school climate.

The analyses show that teachers in publicly funded schools report a less curriculum-

oriented attitude, a lower sense of identification, and perceive a less supportive school

climate than teachers in privately funded schools. Funding did not have an effect on the

extent to which teachers have a student-oriented attitude. In addition, the analyses show

significant effects of teacher characteristics, the disciplinary sector, and affiliation

characteristics on teachers' organisational behaviour. This study clearly indicates

differences in teachers' organisational behaviour in publicly and privately funded schools.

Contrary to common beliefs, the institutional context hardly influences the extent to

which teachers have a student-oriented attitude. Originality/value – This research

contributes to insights in behavioural aspects of the fading boundary between the public

and private sector.

K. Aswathappa; and (2002) studied human behaviour, attitudes and performance in

organizations providing value added knowledge for individuals at all organizational

levels. He further elaborated that Organizational behaviour can be regrarded as a

systematic attempt to undertstand the behaviour of people in organization which they are

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an integral part. Organizational behaviour like organizational thoery, for this purpose,

draws upon various other disciplines like psychology, sociology, anthropology, political

science, economics and so on. The field of OB is both exciting and complex. OB has

emerged as a distinct field of study. It is a distinct area of expertise with a common body

of knowledge. OB is also an applied field. It applies the knowledge gained about

individual groups and the effect of structure on behaviour in order to make organizations

work more effectively. It represents only the behavioural approach to management.

Hashim, Junaidah; Saodah Wok; Ghazali, and Ruziah (2008) examined organisational

behaviour as a result of emotional contagion experienced by selected members in direct

selling companies. Specifically, the study seeks to investigate how members in a group

are affected by the happiness of their high achievers, what factors influence the emotional

contagion to occur, and what are the effects of emotional contagion on individual, group

and organisation work outcomes. The variables studied were emotional contagion,

personal characteristics, group outcomes and organizational outcomes. Emotional

contagion was measured by self-report of impulsive acts; while personal characteristics

were measured in terms of social desirability, extraversion, locus of control, live

accomplishment, materialistic world, susceptibility to interpersonal influence, and self-

esteem. Organisational outcome variables were measured in terms of organizational

commitment and organizational culture. Other variables studied were group behaviour,

team player, demographic characteristics, and business organizational characteristics. It

is found that emotional contagion is positively related with personal outcomes. Further

findings reveal that emotional contagion has an impact on both the group and the team.

The team, as a whole, is influenced not only by the emotional contagion but also by the

personal characteristics of the respondents. Emotional contagion is also related

to organisational outcomes. Both the group characteristics are positively related

with organisational commitment. Emotional contagion is also positively related

to organisational culture. Group characteristics are also positively related with

organisational culture. It can be postulated that the following relationships exist between

emotional contagion, personal outcomes, group outcomes, and organisational outcomes.

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It is also found that emotional contagion is a very important variable in the light of

personal characteristics, group characteristics and organisational characteristics.

Hanna, V; Burns, N DBackhouse, and C J (2000) Described a charting technique that

can help a company determine if the different variables in the workplace are combining

to produce an environment that encourages positive workplace behavior. The chart

enables business managers to identify whether the organisational goals, performance

measures and reward system, together with task and situation variables are all congruent

or mutually reinforcing. The research is still at an exploratory stage and practical testing

is continuing to examine the effectiveness of the chart. Some early case-study

investigations inside a manufacturing company are presented together with a synopsis of

how the research will develop now the pilot study is complete. The author describe early

results from research into the effect of organizational variables upon workplace behavior.

In particular, they discuss what influence organization and situational variables have on

performance. In organizations, groups of people are often seen behaving in rather similar

ways.

Honingh, M E Oort, and F J compared teachers' organisational behaviour in publicly-

and privately-funded schools in the Dutch Vocational Education and Training (VET)

sector. A percentage of all middle managers in publicly and privately funded schools (72

per cent and 43 per cent respectively) distributed self-report questionnaires to their

teachers measuring teachers' attitudes, sense of identification and perception of the school

climate. Data were analysed through multilevel analysis accounting for the dependency

of teachers working within the same teaching unit. Findings - The analyses show that

teachers in publicly funded schools report a less curriculum-oriented attitude, a lower

sense of identification, and perceive a less supportive school climate than teachers in

privately funded schools. Funding did not have an effect on the extent to which teachers

have a student-oriented attitude. In addition, the analyses show significant effects of

teacher characteristics, the disciplinary sector, and affiliation characteristics on teachers'

organisational behaviour. Research limitations/implications - The study clearly indicates

differences in teachers' organisational behaviour in publicly and privately funded schools.

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Contrary to common beliefs, the institutional context hardly influences the extent to

which teachers have a student-oriented attitude. The study contributes to insights in

behavioural aspects of the fading boundary between the public and private sector.

Beatson, Amanda, Lings, Ian, Gudergan, and Siegfried P (2008) provided conceptual

and empirical insights elucidating how organisational practices influence service staff

attitudes and behaviours and how the latter set affects organisational performance drivers.

Analyses suggest that service organisations can enhance their performance by putting in

place strategies and practices that strengthen the service-oriented behaviours of their

employees and reduce their intentions to leave the organisation. Improved performance is

accomplished through both delivery of high quality services (enhancing organizational

effectiveness) and the maintenance of front-line staff (increasing organizational

efficiency). Specifically, service-oriented business strategies in the form

of organisational-level service orientation and practices in the form of training directly

influence the manifest service-oriented behaviours of staff. Training also indirectly

affects the intention of front-line staff to leave the organisation; it increases job

satisfaction, which, in turn has an impact on affective commitment. Both affective and

instrumental commitment were hypothesised to reduce the intentions of front-line staff to

leave the organisation, however only affective commitment had a significant effect.

Vakola, Maria; Bouradas, and Dimitris. (2005). aimed at investigating the dimensions of

silence climate as they are perceived by individuals and exploring the effects of these

dimensions on job attitudes. In a sample three dimensions of silence climate are

constructed and measured in order to examine their effects on employee

silence behaviour, organisational commitment and job satisfaction. Results indicate that

supervisors' attitudes to silence, top management attitudes to silence and communication

opportunities are associated and predict employees' silence behaviour. These three

dimensions are also associated with organisational commitment and job satisfaction.

Although the phenomenon of organizational silence is expected in organisations, there is

little empirical evidence in the literature aimed at defining it, analysing it and coping with

it. Silence climate has an impact on organizations' ability to detect errors and learn and,

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therefore, organizational effectiveness is negatively affected. This exploratory study aims

to measure organisational silence as a continuum between silence and voice explain

silence behaviour throughorganisational climate dimensions. Based on the findings of

this study, there are some important implications that are discussed.

Koh, Hian Chye; and El'fred H Y Boo. (2004). examined the relationship

between organisational ethics and organisational outcomes based on the justice theory

and cognitive dissonance theory. The sample data are derived from a questionnaire

survey of 237 managers. Results obtained from decision trees indicate significant and

positive links between ethical culture constructs (i.e. top management support for

ethical behaviour and the association between ethical behaviour and career success within

the organisation) and job satisfaction. Further, there is a significant and positive link

between job satisfaction and organisational commitment. Also, for different levels of job

satisfaction, particular aspects of organizational ethics are associated with organizational

commitment. The results suggest that organisational leaders can use organisational ethics

as a means to generate favourable organisational outcomes.

Okurame, David E (2009) examined work attitudes in the public health sector using the

relative impact of mentoring and organisational constraints on job satisfaction

and organisational commitment. Data was collected from 161 employees in a large

government-owned hospital in south western Nigeria. Results of the hierarchical

regression analysis (which controlled for the effects of relevant covariates) showed that

when informal mentoring and perceived organisational constraints were entered in the

second step, for organisational commitment and job satisfaction increased from .17 to .45

(p = < .001), and from .15 to .49 (p = < .001), respectively. These findings suggest that

work attitudes in the public health sector can be improved by facilitating mentoring

relationships and removing organisational obstacles. The implications of these findings

for policy formulation and effective health care delivery are explained.

Lok, Peter; Crawford, John (2004) examined the effects of organisational culture and

leadership styles on job satisfaction and organisational commitment in samples of Hong

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Kong and Australian managers. Statistically significant differences between the two

samples were found for measures of innovative and supportive organizational cultures,

job satisfaction and organizational commitment, with the Australian sample having

higher mean scores on all these variables. However, differences between the two samples

for job satisfaction and commitment were removed after statistically controlling

for organizational culture, leadership and respondents' demographic characteristics. For

the combined samples, innovative and supportive cultures, and a consideration leadership

style, had positive effects on both job satisfaction and commitment, with the effects of an

innovative culture on satisfaction and commitment, and the effect of a consideration

leadership style on commitment, being stronger in the Australian sample. Also, an

"initiating Structure" leadership style had a negative effect on job satisfaction for the

combined sample. Participants' level of education was found to have a slight negative

effect on satisfaction, and a slight positive effect on commitment. National culture was

found to moderate the effect of respondents' age on satisfaction, with the effect being

more positive amongst Hong Kong managers.

Barnett, Belinda Renee; Bradley, and Lisa (2007) examined the relationship

between organisational support for career development (OSCD) and employees' career

satisfaction. Based on an extended model of social cognitive career theory (SCCT) and an

integrative model of proactive behaviours, the study proposed that career management

bhaviours would mediate the relationaship between OSCD and career satisfaction, and

between proactive personality and career satisfaction. Public and private sector

employees (N=90) participating in career development activities completed a survey

regarding their proactivity, OSCD, career management behaviours and career

satisfaction. OSCD, proactive personality and career management behaviours were all

positively related to career satisfaction and career management behaviours mediated the

relationship between proactive personality and career satisfaction. There was no support

for the career management behaviours mediating between OSCD and career satisfaction.

This study provided support for the extended SCCT model by testing a subset of its

proposed relationships using a cross-sectional approach. The sample surveyed

(employees participating in career development activities) and the large proportion of

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full-time employees, may limit the generalisability of the findings. The results suggest

that there are benefits for organisations and individuals investing in career development.

First, from an organisational perspective, investing in OSCD may enhance employees'

career satisfaction. Second, employees may enhance their own career satisfaction by

participating in career management behaviours.

Rao, Surabhi; Mrozowski, Tim (2008) examined burnout factors derived from the

literature on organizational behavior including role stress, role of interpersonal relations,

incentives, and lack of motivation in the context of project closeout. Data obtained from

interviews of contractors, subcontractors, and owners during the MSU (Michigan State

University) study was analyzed using "Grounded Theory" to understand causes for slow

closeout and to determine behavioral factors that impact closeout by comparing the

literature to the data. Recommendations were developed for midsize contracting and

subcontracting organizations by comparing the strategies suggested in the interviews with

motivation theory in organizational behavior literature. Recommendations were validated

through proof of concept interviews which indicated that organizational behavior has an

impact on closeout and that problems that arise during closeout can be prevented by

stressing the importance of the recommendations relating to role conflict and role

ambiguity.

Schepens, Dona; Underwood, Anita. (2007) assessed organizational culture by

investigating to what extent Core Value Behavior (CVB) is consistently practiced by

individual employees and by the college system as a whole. A Values Framework Model

provided a systems approach to studying the organization as a living dynamic, changing

and interactive environment and to measure the target behaviors used in the survey.

The study confirmed the cultural strength of the organization as evidenced by the practice

of core value behaviors. A recommendation for college administration is to define and

describe CVB for every job classification, department, and academic program to close

gaps in alignment with the core values, eliminate confusion and inconsistencies, and

promote unity and understanding of the values expressed in the organizational culture.

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Prakash, Rajshree (2008) examined the factors that influence professional behavior.

Specifically, it focuses on the role of organizational forms where professionals work and

client relationships. Transcripts of Congressional Hearings related to Enron form the

empirical context. Theoretically the researcher draws upon the research on the sociology

of professions by revisiting the literature on professionals and organizations and

professional-client relationship to suggest that the notion of professional behavior is more

complicated than previously assumed.

Employees behaviour Studies

Aggarwal, Upasana; Bhargava, and Shivganesh (2009). reviewed and synthesised

literature on the role of human resource practices (HRP) in

shaping employee psychological contract (PC). Based on this review, a conceptual

framework for examining the relationship between HRP and PC and their impact

on employee attitudes as well as behaviour has been put forward for further examination.

An extensive review of the literature, examining the role of HRP in influencing PC

of employees, between the periods 1972 to 2007 has been conducted. Adopting the multi-

level approach, the paper discusses the role of individual variable (PC) and organisational

variable (HRP) on employee attitudes and behaviours. The review brings to fore the

following: the role of business and employment relationship strategy on HRP; the

relationship between HRP and organisation culture as well as employees attitudes

and behaviours; the relationship between HRP on and employee's psychological contract;

and the moderating effect of those conceptions on employee attitudes

and behaviours relationship. HRP and PC influence employee attitudes and behaviours as

well as have a bearing on organisational effectiveness. Suggestively, as a policy

implication, firms need to craft and effectively communicate their HR toolkit based on

their employment relationship and business strategies. The main contribution of this

paper is that it synthesises the research examining the impact of HRP on PC. Adopting a

meso theory, the paper integrates both organisational and individual level variables and

proposes a conceptual model.

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Lambooij, Mattijs; Sanders, Karin; Koster, Ferry; Zwiers, and Marieke. (2006) addressed

the question as to whether the linkage between HRM and organisational performance can

be explained by the effect of the internal and strategic fit of HRM on the

cooperative behaviours of employees. The author’s expect that the more HRM practices

are aligned within themselves (internal fit) and the more HRM is aligned with an

organisation's strategy (strategic fit), the better employees know what is expected of

them, and the more they behave cooperatively towards their co-workers and towards their

supervisor. Next, author’s hypothesised that the cooperative behaviours of employees are

positively related to the financial and non-financial performance of the organisation.

These hypotheses were tested using multilevel regression (N=723 employees; 10

organisations). Author’s found that cooperation with co-workers is negatively related to

turn over and positively related to sick leave. No support was found, however, for the

hypothesis that a better internal and strategic fit leads to more cooperative behaviour on

the part of employees. The implications of these findings for future research and for

human resource management are discussed.

Clark, Malissa; Baltes, Boris B.; Berry, Christopher M.; Partridge, Ty; Keashly,

Loraleigh (2010) aimed to integrate these two themes to test how mood, personality, and

factors relating to one's job influence a person's propensity to engage in acts of CWB

(counterproductive work behavior). This study contributes to the extant literature in

several ways. First, this is one of only a handful of studies that examines the relationship

between momentary moods and counterproductive work behaviors using an experience

sampling methodology. Second, this study includes two personality variables which are

rarely examined in the organizational literatures, affect intensity and dispositional

happiness. Third, this study adds to the current literature on how moods affect

organizational behavior in that the present study examines both the hedonic tone and the

activation dimensions of mood using the circumplex model of moods and emotions as a

guiding framework. The sample consisted of one hundred and fourteen employees and

students at a large Midwestern university. Participants completed short self-report

questionnaires three times daily for two weeks, in addition to an initial demographic

questionnaire. Data were analyzed using hierarchical linear modeling (HLM; Raudenbush

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& Bryk, 2002). Results revealed that all momentary variables varied both within- and

between-persons. Individual factors (i.e., personality, mood) were more predictive of

CWBs than situational factors (i.e., job demands, work events) in the present study.

Broadly, individuals were less likely to engage in CWBs when they were in positive

moods. There were several unanticipated findings. Notably, individuals in activated

mood states were less likely to engage in acts of counterproductive work behavior, and

individuals in unactivated unpleasant (i.e., bored) mood states were more likely to engage

in acts of counterproductive work behavior. While mood occasionally was related to

subsequent perceptions of work events, more evidence was found that work events

influenced subsequent mood states. In addition, positive work events indirectly decreased

CWBs by increasing activated mood states. Implications of these findings and

suggestions for future research are discussed.

Palmer, Jacquelyn Wright (2006) developed and tested an interactive model of

innovative behavior of frontline employees in the public sector. Three gaps in innovation

research have given rise to this study: the need for contextualization, the need

for studies that include the frontline employee, and the need for studies that examine the

interactions of factors that influence individual level innovative behavior. In the study of

innovation, the notion of context is an under-examined contingency. The context of

interest in this study is the public sector, as it is generally believed that the public sector

differs from the private sector in key ways that may influence the extent of

innovative behavior, including the difference in rewards for innovation available for

public sector employees and the overabundance of rules and procedures that influence an

individual's ability to be adaptable and innovative. Innovation research in the public

sector has been biased toward the organizational level, and individual innovative

behaviour has received minor attention despite the major practical implications of

individual innovative behavior for organization innovation. Even when the individual

level has been addressed in innovation research, frontline employees have often been

overlooked, though they are in a prime position to recognize opportunities for innovation.

Although innovative researchers are increasingly recognizing the merits of an interactive

approach, the innovation literature could profit from more research that examines how

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factors at multiple levels combine to influence innovative behavior. This study examined

the interaction of factors at the individual and organization level that influence

innovative behavior of frontline employees in the public sector. In contrast to studies in

the private sector, this study did not find a relationship between creative problem solving

style and innovative behavior. The study concludes with a discussion of the contextual

differences in the public sector that may explain this difference.

Sucharski,Ivan; Eisenberger,Robert.(2007)explored the extent to which employees

perceive supervisors as representing the organization in their words and deeds

(supervisor's organizational embodiment: SOE) and how the strength of this belief

affects employees' perceptions of support, affective commitment, and positive

organizational behaviors. It was hypothesized that employees would generalize

perceptions of support and affective commitment from supervisors with high SOE

(supervisor's organizational embodiment) into beliefs regarding support from and

commitment to the organization that would then influence several pro-

organizational employee behaviors. A series of three sets of hypotheses were employed

to explore the possible influence of SOE on employees' relationships with the

organization. In order to better understand the factors that contribute to employee beliefs

regarding SOE, the first set of hypotheses tested a variety of possible antecedents to SOE.

This model included supervisor' informal status, formal status, and value congruence with

the organization, as well as measures reported by supervisors such as a supervisor's

perceived organizational support. The second set of hypotheses tested a model of

moderated mediation where perceived organizational support was hypothesized to

mediate the relationship between perceived supervisor support and employee behaviors,

especially when SOE was high. The third set of hypotheses tested a similar moderated

mediation model where affective organizational commitment was hypothesized to

mediate the relationship between affective supervisor commitment and employee

behaviors, especially when SOE was high. All studies were performed by collecting

survey data from employees and their supervisors. Two separate samples were used, the

first made up of employed university alumni working in a variety of organizations, and

the second from a single, large social services organization. Structural equation modeling

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was used to examine the models proposed in the three sets of hypotheses. Results of the

antecedent model suggest that the perceived organizational support of the supervisor is

strongly related to the supervisor's informal status and value congruence with the

organization, both of which are positively related to SOE. SOE was found to moderate

both the relationship between perceived supervisor support and perceived organizational

support (both samples), and the relationship between affective commitment to the

supervisor and the organization (organizational sample only). Neither sample found

support for the hypotheses regarding moderated mediation. SOE appears to be a useful

tool in indicating how the actions of some supervisors can be interpreted as highly

organizationally representative while the same action by other supervisors is not. The

identification of supervisors with the organization appears to strengthen employee

generalization of supervisory actions into organizational actions.

Sparrow, and Paul R (2000) examined the adaptations to work being made

by employees and the future generation of workers is highlighted. The initial experience

of work in virtual organizations is considered. It is argued that we shall witness

fundamental transitions in forms of work organization. Initially this will not compensate

for the deterioration in the psychological contract that has been experienced by those who

have lived through an era of downsizing. However, it will raise the need to develop new

competencies to cope with the changes in work design. The need for more studies on

numerically restricted but meaningful work populations (such as teleworkers, virtual

teams, international managers, employees in small and medium-sized enterprises, small

project-based forms of organization) is signalled.

Costigan, Robert D; Insinga, Richard C; Berman, J Jason; Ilter, and Selim S; (2005).

determined whether the perceived effectiveness of a performance-management process is

associated with effective workplace behaviours in Russia and Poland as it typically is in

Western countries, such as the US. The study considers the extent to which cultural

dimensions, such as in-group collectivism, power distance, and performance orientation,

moderate the relationship between performance management and employee behaviour.

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Using samples drawn primarily from adult education programs in the university setting,

the study asked 99 US employees, 100 Polish employees, and 86 Russian employees to

provide ratings of their firm's performance-management process while coworkers rated

the trustworthy behaviour and energized take-action behaviour of these employees. The

results show that the correlations between a performance-management composite and

these two behavioural measures are significant, but that national culture did not moderate

these relationships in the three countries. These findings lend credence to a universalistic

view of performance management. Therefore, companies in these transition economies

should feel encouraged when introducing a performance-management process.

Cambra-fierro, Jesús; Polo-redondo, Yolanda; Wilson, and Alan Aug (2008) explored

the influence that an organisation’s corporate values have on employees’ behaviour and

values both within and outside the work environment. In particular, it focuses on the

impact of these values on the personal buying behaviour of employees. The empirical

research was undertaken within organisation that produces wine in Spain and involved

interviews with senior management, an analysis of company documentation, as well as

group discussions with employees supported by an employee survey. The article argues

that an organisation’s corporate values influence not only its employees’ behaviour

within the work environment, but also impacts on their global values system outside of

the work environment. In particular, this was evident within the employees’ buying

behaviour practices in relation to supplier loyalty and environmental concern. This has

implications for business ethics as an organisation’s value system may go beyond the

purely business context. Organisations need to be aware of their impact on employees’

behaviour outside of the work environment; this is particularly the case for multinational

companies working across many cultures.

Ivan Laars Sucharski (2006) explored the extent to which employees perceive supervisors

as representing the organization in their words and deeds (supervisor’s organizational

embodiment: ( SOE) and how the strength of this belief affects employees’ perceptions of

support, affective commitment, and positive organizational behaviors. It was

hypothesized that employees would generalize perceptions of support and affective

77

commitment from supervisors with high SOE into beliefs regarding support from and

commitment to the organization that would then influence several pro-organizational

employee behaviors.

Glavas, Ante; Piderit, Sandy Kristin; Piderit, Sandy Kristen. (2009) have examined the

dynamics and consequences of corporate citizenship behavior at the organizational level

of analysis without considering how corporate actions impact individual employees. This

study explores how an employee's perception of their company's corporate citizenship

influences their experiences at work. Drawing on research in corporate social

responsibility, sustainability, and corporate citizenship, the researcher developed four

hypotheses. The researcher expects that employees who perceive higher levels of

corporate citizenship will report higher levels of engagement, high-quality connections,

and creative involvement. In addition, the importance of corporate citizenship to

the employee should moderate those relationships. Two surveys were constructed and

validated to measure an employee's perception of their company's corporate citizenship,

and the importance of corporate citizenship to the employee. The surveys are the first

scholarly instruments for measuring individual level variables for corporate citizenship.

They were pilot tested and show reliability and validity in the dissertation data. Survey

responses from 347 employees in six companies were analyzed with regression and

structural equation modeling, the results supported the hypotheses that employees who

perceive higher levels of corporate citizenship will report higher levels of engagement,

high-quality connections, and creative involvement. However, the moderator hypothesis

was not supported. The researcher concludes that employees are more engaged, develop

higher quality relationship, and are more creatively involved when they perceive their

company to be a good corporate citizen.

Impact of Organizational behaviour on Employees behaviour studies

Hicks-Clarke, Deborah; Iles, and Paul (2000). Presented a discussion of issues of human

resource diversity and diversity climates in organizations and develops a conceptual

model of a "positive climate for diversity" (PCFD). This refers to the degree to which

there is an organizational climate in which human resource diversity is valued and in

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78

which employees from diverse backgrounds feel welcomed and included. The Author

presents a model of the indicators of a positive climate for diversity and the outcomes for

organizations and individuals of such a climate, especially individual career and

organizational attitudes and perceptions. It also presents variables which have a

moderating effect in the model. The results of research from both private and public

sector organizations, with emphasis on service, indicate that climates for diversity

do impact significantly on a range of career and organizational attitudes and perceptions.

The research and managerial implications are discussed.

Graham, Marlene; Penderghast, Thomas; Schmieder-Ramirez, June; Ciesla, Robert P.

(2009) analyzed a business ethics training program in the corporate environment and

determined the level of influence of a specific company's program on employee

behavior and morale. The problem is the implementation of a business ethics training

program by a company without measurement of its impact to its employees. In response

to a decade of increasingly embarrassing ethics scandals, the company responded by

establishing the Office of Internal Governance (OIG), an Ethics Line for employees to

pose questions, ethics advisers in its business units and compliance education programs.

The Office of Internal Governance was chartered in November 2003 to provide renewed

and focused attention to the company's internal business practices. The researcher

surveyed 150 current employees located at the Long Beach, facility. The participants

were asked to respond to a validated survey questionnaire designed to answer four

research hypotheses. A total of 100 or 66.7% employees responded to the survey. The

four research hypotheses tested significance of differences regarding position in the

company, opinion on the current frequency and duration of ethics training, influence from

ethics training on employee ethical behavior and perceived morale at work, and whether

there is/is not a significant difference in employee ranking of ethical decision making

factors at work as a result of the ethics training. An inferential statistical analysis was

conducted utilizing t-tests, chi tests, and an F-test. Study findings indicate a there is not a

statistically significant difference between management and non-management in regards

to morale or behavioral influences. The research findings also revealed that the

majority of respondents overwhelmingly hold the opinion that increased

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79

frequency of training sessions would not be appropriate and should not be increased in

duration. The researcher also found that there is not strong evidence whether the current

yearly ethics training sessions are sufficient to influence ethical behavior at work.

However, research findings indicate that there is a minor statistical significance in

regards to ethics training influence on morale. And finally, roughly half of the respondent

comments pointed to improving the content of the annual ethics training with 'real life'

examples.

Yaniv, Eitan; Farkas, and Ferenc. (2005). showed that Person-Organization Fit (POF)

can play a significant role in closing that gap. The notion of POF, i.e. the fit

between organizational values and the individual values of employees, has been explored

a lot and normally in relation to internal organizational aspects. This research examined

the impact of POF from quite a different aspect, an external one, and that is the brand

perception of employees and as a consequence on the brand perception of customers. The

conclusion derived from this research are that employees' POF positively affects the

extent to which they perceive their corporate brand values as congruent with those

declared by the management, and that this brand perception level of employees positively

affects the perception level of the customers.

Arokiasamy, Lawrence; Marimuthu, Maran; Moorthy, and MKrishna (2010) examined

the influence of Perceived Organisational Support (POS) on the organisational

behaviours of employees working in the financial sector in Malaysia. To explain the POS

influence, the organisational behavioural concepts were identified for this study which is

job satisfaction, affective commitment and turnover intention. The purpose of this study

is to identify the perceived organizational support related to the job satisfaction, affective

commitment and turnover intention.

Soumaya Ben Letaifa; Perrien, and Jean (2007) examined how electronic customer

relationship management (e-CRM) has affected both organizational and

individual behavior in a leading Canadian bank. The innovative and customer-driven

culture of this bank pushed it toward early adoption of e-CRM technology. The findings

emphasize the role played by many strategic and organizational dimensions in the

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80

success of e-CRM implementation. In fact, to make e-CRM efforts pay off, new business

processes are required to achieve more effective and closer interactions with customers.

The shift toward customer orientation needs to be supported by a shift

in organizational objectives and processes. The results indicate that employees'

individual behavior successfully changed from a transactional to a relational perspective

and that training and coaching ensured a successful integration of e-CRM technology.

Nevertheless, the employee reward and evaluation system, which should have been

changed to leverage CRM impact, has surprisingly been forgotten. This deficiency is

addressed by proposing a new framework for enhancing e-CRM effectiveness.

Krishnaveni, R; Ramkumar, and N (2006) made an attempt to analyze and determine the

relationship and impact of HRD climate on motivational need satisfaction (Role) of the

individuals in the organizations. Five companies from different sectors that are in

existence for more than two decades are selected for the study. The middle level

managers of various departments are taken as samples. The questionnaires relating to

HRD climate and motivational need satisfaction (Role) were administered to them. The

findings indicate that in all the cases, the relationship is positive and in some cases, it is

highly correlated, which shows that 'HRD climate' has a definite impact on motivational

need satisfaction HRD of the individuals in the organization, which in turn, leads to the

overall performance of the organization.

Henkel, Sven; Tomczak, Torsten; Heitmann, Mark; Herrmann, and Andreas (2007)

aimed to show that brand success can be improved if the brand promise that is

communicated through mass media campaigns is lived up to by each employee of a

company. The study terms such brand consistent employee behaviour behavioural

branding and identifies managerial instruments for its implementation and management.

The model in the paper explains the brand's contribution to company success by brand

consistent employee behaviour, functional employee performance and brand congruent

mass media communication. Brand consistent employee behaviour and functional

employee performance in turn are modelled as determined by formal and informal

management techniques as well as employee empowerment. The model is tested on a

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81

sample of 167 senior managers using partial least squares and finds empirical support.

Furthermore, practical implications are provided based on additional top management

focus groups. The study finds that behavioural branding determines the brand's

contribution to company success. Further, the results show that informal management

and employee empowerment have a far stronger impact on the brand consistency of

employee behaviour than formal management instruments. Managers should spend more

time explaining and discussing targets of behavioural branding, and they should create an

organisational environment that enables employees to find their own individual

ways of articulating a brand to customers. The framework in the paper integrates personal

and non-personal facets of interaction for a holistic explanation of brand performance. It

provides a broader understanding of factors affecting the accruement of a customer's

brand experience and enables researchers and practitioners to develop more consistent

and promising brand management activities.

Afzal, Hasan; Butt, Babar Zaheer; Rehman, Kashif Ur Safwan, and Nadeem.(2009)

investigated the intra group conflict and its impact on employees'

performance. The sample of this study consisted of 300 employees working in different

commercial banks in Pakistan. An adapted questionnaire was used to collect data

regarding demographic information, task conflict, relationship conflict and employees

performance. The collected data then analyzed using the correlation and regression

techniques. The results illustrate that both relationship and task conflict have a

significant impact on employees' performance and negatively related to it. A high

level of intragroup conflict has insupportable impact on the employee performance.

Finegan,JoanE2000explores the relationship between personal values , organizational

values, and organizational commitment. Results found that commitment was predicted

by the employees' perception of organizational values The study highlights

importance of recognizing that values are multidimensional and that each value cluster

may affect behavior differently.

Bitner, and Mary Jo (1992) presented, a conceptual framework advanced for

exploring the effect of physical surroundings on the behaviors of both customers

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82

and employees. It is shown that the physical environment may assume a

variety of strategic roles in services marketing and management: 1) The servicescape

provides a visual metaphor for an organization's total offering. 2) The servicescape can

assume a facilitator role by either aiding or hindering the ability of customers

and employees to carry out their respective activities. 3)The physical environment can

serve as a differentiator in signaling the intended market segment, positioning the

organization, and conveying distinctiveness from competitors. To secure strategy

advantages from the servicescape the needs of ultimate users and the requirements

and the requirements of various functional units must be incorporated into environmental

design decisions.

Bellou, and Victoria. (2010) analyzed the impact of organizational context and IT on

employees'perceptions of knowledge-sharing capabilities in five public sector and five

private sector organizations in South Korea. Social networks, centralization,

performance-based reward systems, employee usage of IT applications, and user-friendly

IT systems were found to significantly affect employee knowledge-sharing capabilities

in the organizations studied. For public sector employees, social networks, performance-

based reward systems, and employee usage of IT applications are all positively associated

with high levels of employee knowledge-sharing capabilities. Lessons and implications

for knowledge-sharing capabilities and management leadership in the public sector are

presented. Heshizer, Brian 1994 assesses the dimensionality of employee attitudes toward

flexible benefits plans and the impact of these plans on measures of job satisfaction,

commitment and turnover intent. The study points to the need for more work on the

measurement of employee attitudes toward flexible benefits and on the nomological

framework of flexible benefits as a construct in compensation research.

Siegel, Philip H, Mosca, Joseph, Karim, and Khondkar, (1997) suggested

that employees with family responsibilities may negotiate new behavioral contracts that

include family-responsive benefits such as flexible work hours. Relationships of gender,

family responsibility, and flexible work hours to organizational commitment and job

satisfaction were examined among 160 matched male and female managers in a cross-

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83

organizational study. Results revealed that women who perceived their organizations

offered flexible work hours reported higher levels of organizational commitment and job

satisfaction than women who did not. Also, flexible work hours were related to higher

organizational commitment and job satisfaction for those having family responsibilities.

Implications of these results for future research and organizational policy are discussed.

Lewin, Jeffrey E, Johnston, and WesleyJ, (2000) examined the impact of downsizing and

restructuring on organizational competitiveness. Given the potential negative

effects of downsizing, the challenge for the organization is to keep surviving employees'

attitudes and behaviors from eroding productivity, quality and customer service at a time

when performance is critical. If companies reduce headcount without redesigning

processes and structures, remaining employees simply must take on more work, resulting

in an overworked staff with a high potential for employee burnout. Ultimately,

productivity, quality and customer service will suffer. However, by redesigning processes

and structures and by providing the training and guidance needed, the

remaining employees can perform more valuable work.

Hyun-Jung, and Lee, (2004) investigated the role of individuals' competence-based trust

and organizational identification (OI) in employees' continuous improvement efforts. The

data were collected in a high-tech multinational joint venture company with a

sample of over 490 shop floor workers. The results show that trust is positively related to

continuous improvement efforts when employees strongly identify with the organization.

For individuals whose OI is weaker, however, trust is not positively related to continuous

improvement. OI, on the other hand, not only moderated the relationship between trust

and continuous improvement efforts, but also had a strong and positive impact on

employees' continuous improvement efforts. Managerial implications are discussed.

Jain, Ajay K, Giga, Sabir I, Cooper, and Cary L, (2009) investigated the role of Work

Locus Of Control (WLOC) as a moderator of the relationship between

employee wellbeing and organizational commitment. The study reports on quantitative

study of middle level executives from motor-cycle manufacturing organizations based in

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84

Northern India. The focus of the paper is to examine the predictive ability of wellbeing

and the moderating effect of WLOC in predicting organizational commitment. The

results suggest that wellbeing is negatively related to conditional continuance

commitment, whereby employees consider the advantages associated with continued

participation and costs associated with leaving, and normative commitment,

whereby employees feel they have moral obligations to remain with the organization. The

presence of an external WLOC has a positive impact on the relationship. Wellbeing, as

represented by a hassle-free existence, predicts positive affective commitment with a

particular organization, and internal WLOC as represented by effort influences the

relationship negatively. Although a cross-sectional study, its findings have implications

for contemporary leadership and organizational psychology research and practice,

particularly with regard to understanding of employee commitment in a progressively

changing environment.

Tzafrir, Shay S, Gedaliahu H Harel; Baruch, Yehuda, Dolan, and Shimon L, (2004)

examined the consequences of emerging human resource management (HRM) practices

for employees' trust in their managers from a combination of the theory of exchange and

a resource-base perspective. Using a national sample of 230 respondents, the research

reported here portrays the paths which link the consequences of emerging HRM practices

to employees' trust in their managers. In this framework, HRM consequences represent a

proxy in which managers' actions, behaviours, and procedures affect employees' trust in

their managers. The results indicate a significant and positive influence of empowerment,

organizational communication and procedural justice as determinants of employees' trust

in their managers. Using structural equation analysis, findings also indicate that

procedural justice mediates the impact of employee development on their trust in their

managers. Implications for strategic HR policies in organizations and suggestions for

future research are discussed.

Aufenanger, Sharyn; Sanchez-Hucles, Janis V.; Wells, Kimberly J (2008) examined the

effect of household structure on utilization of family-friendly benefits in organizations, as

well as the impact that family-friendly benefit utilization has on organizational attraction

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85

and workplace withdrawal behaviors among Federal government employees with

children. Results showed that alternative work arrangements (e.g., compressed and

flexible schedules) were popular among all employees who have children. Family-

friendly benefit utilization rates were highest among single parent employees and lowest

among traditional family employees. Single parent employees were more likely to use

flexible schedules, part-time, compressed schedules, telework, and sick and annual leave.

Dual income employees were more likely to use flexible schedules, annual and sick

leave, telework, and part-time work. Traditional family employees were more likely to

use flexible schedules, annual and sick leave, compressed schedules, and

telework. Employees utilizing flexible, part-time and job sharing schedules, telework,

annual leave, the Federal child care centers and the Dependent Care Flexible Spending

Account (DCFSA) showed higher levels of attraction toward the agency. Lower

rates of absenteeism were found for employees who utilized compressed and flexible

schedules, the Child Care Subsidy Program, and the DCFSA in lower rates of leave

behaviors. Lower rates of absenteeism as measured in number of hours of leave taken

were found for employees who utilized job sharing. Employees using flexible schedules,

job sharing, telework, annual leave, leave without pay, Federal child care centers, the

Child Care Subsidy Program, and the DCFSA displayed higher rates of retention.

Turnover intentions within an agency were lower for employees utilizing flexible

schedules, telework, leave without pay, and Federal child care centers. Turnover

intentions to another an agency were lower for employees that utilized flexible schedules,

part-time, telework, sick leave, Federal child care centers, the Child Care Subsidy

Program, and the DCFSA. Intentions to turnover and leave the Federal government

altogether were lower for employees who utilized compressed schedules, flexible

schedules, telework, annual leave, Federal child care centers, and the DCFSA. Results

demonstrated differences in employees' use of family-friendly programs and that

utilization of family-friendly policies is related to organizational attraction and workplace

withdrawal behaviors

86

Organizational Structure Studies of Organization

Holtzhausen, and Derina. (2002) explored the effects of organisational structure on the

public relations function. It Further Focuses on the effects of structural changes on an

internal communication function in a large South African organisation. In this

organisation internal communication consultants were appointed at divisional level. They

had to oversee the election of a communication champion in each cost centre in the

division. Survey research conducted 18 months after the process implementation found

the structural changes led to improved information flow and face-to-face communication.

Employees made better use of organisational media and relied less on the grapevine.

Although the process made employees less fearful to speak truthfully and improved

employee-supervisor communication, these effects were less pronounced. The research

confirmed the important link between public relations strategy and organisational

structure, particularly for communication managers and internal communication

practitioners in large organisations.

Burrows, Bryan (1989) attempted to relate quality of falsework erection to the

organisation and competence of personnel involved. The study involved field

investigation using a sample of fifty-four sites throughout England And Wales where

different types of falsework arrangements were being erected by a range of organisations

and personnel. By the establishment of a rigorous method of evaluating quality of

workmanship of falsework construction this was the first study which enabled quality

standards to be compared across different types of falsework arrangements. In addition

this study, combined with a sociological analysis, enabled an assessment to be made

between organisation, competence and quality, which to the author's knowledge, has not

been undertaken prior to this study. Subsequent analyses of the data, used the two models

of organisation: the economic and occupational orders. These indicated that all sites

essentially adopted the same methods and assumptions. Any attempts to formalise the

management of the process of control of falsework, along the lines of the procedures

outlined in the Code of Practice for Falsework, were limited in extent and their degree of

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success. The investigation found that the quality of falsework on building sites was

generally of a lower standard than on civil engineering sites. This was found to be

attributed to the competence of the manual workforce. This study addresses the

organization structure of the industry at large. Although peculiar, in that it leads to a

temporary product, the false work process may be regarded as a microcosm of the overall

construction process. The conclusions presented in this thesis have relevance to the

current issues of concern to the industry: competence, skill shortages, training and quality

(including safety) and the implementation and efficacy of Quality Assurance schemes.

Hankinson, and Philippa (1999). Compared the organisational structures of the World's

Top 100 brand companies with those of less successful companies, referred to in this

article as Outsider brand companies. The paper identifies that whilst the type

of organisational structure may not be seen as a determinant of brand success, perceptions

of whether the organisational structure was right for them, were. In other words,

managers of brands need to feel that the organisational structure allows them to manage

in the way they consider necessary to deliver brand success. In some instances this might

mean an authoritarian style of management through a hierarchical organisational

structure and in others, it might mean a more democratic style of management through

relatively flat organisational structures. The results are discussed in the context of brand

management theory and practice and the postmodern paradigm shift

regarding organisational structure.

Curado, and Carla, (2006) explored a new idea presenting the possible relationship

between organisational learning and organisational design. The establishment of this

relation is based upon extensive literature review. Organisational learning theory has

been used to understand several organizational phenomena, like resources and

competencies, tacit knowledge or the role of memory in the organisation; however, it is

difficult to identify fits and consequent misfits between organisational learning and the

organisational design. This is a theoretical paper, so there is a possible limitation,

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88

regarding the lack of empirical support. At the end of the research a number of

recommendations regarding the organisational design are suggested, in order to

promote organisational learning in the firms. This research identifies some links between

learning and organizational design, providing the grounds for a subsequent development

and empirically testing of those relations. May, Margaret 1995 UK the Chartered

Institute of Management Accountants (CIMA) has about 30,000 members and 35,000

students. In Europe, there are about 1,000 members and students. The International

Committee endeavors to ensure active participation and representation in the major

international forums, as well as pursing national strategies for CIMA development in the

Republic of Ireland and in countries outside Europe. The organizational structure of the

CIMA is reviewed.

Leadership Studies of Organization

De Vries, Reinout E; Bakker-pieper, Angelique; Oostenveld, and Wyneke. (2010).

Investigated the relations between leaders' communication styles and

charismatic leadership, human-oriented leadership (leader's consideration), task-

oriented leadership(leader's initiating structure), and leadership outcomes. A survey was

conducted among 279 employees of a governmental organization. The following six main

communication styles were operationalized: verbal aggressiveness, expressiveness,

preciseness, assuredness, supportiveness, and argumentativeness. Regression analyses

were employed to test three main hypotheses. In line with expectations, the study showed

that charismatic and human-oriented leadership are mainly communicative, while task-

oriented leadership is significantly less communicative. The communication styles were

strongly and differentially related to knowledge sharing behaviors, perceived leader

performance, satisfaction with the leader, and subordinate's team commitment. Multiple

regression analyses showed that the leadership styles mediated the relations between the

communication styles and leadership outcomes. However, leader's preciseness explained

variance in perceived leader performance and satisfaction with the leader above and

beyond the leadership style variables. This study offers potentially invaluable input

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89

for leadership training programs by showing the importance of leader's supportiveness,

assuredness, and preciseness when communicating with subordinates. Although one of

the core elements of leadership is interpersonal communication, this study is one of the

first to use a comprehensive communication styles instrument in the study of leadership.

Mack, Tonya; Fields, Dail L (2011) investigated the incremental effects of

instructor leadership behaviors on higher education student commitment and intent to

continue studies after controlling for four critical aspects of the teaching/learning

environment. Students enrolled in class, online, and hybrid courses at a 2-year technical

college were surveyed to examine their perceptions of instructor leadership behaviors,

course design, communication of course expectations, and feedback/assessment of course

performance. The study utilized Kouzes and Posner's (2003) Leadership Practices

Inventory to examine the leadership behaviors of the instructors. Data were collected via

valid and reliable survey questionnaires on student commitment, intent to continue in

course studies, and student satisfaction with course design, course expectations, and

feedback/ assessment of course performance. Data were analyzed using multiple

regression analysis. The study revealed that leadership behaviors (independent variables)

had a significant impact on all of the dependent variables (student commitment and intent

to continue in course studies). The results obtained from this studyprovide evidence that

although instructors in the teaching/learning environment may not quantify as leaders on

college campuses, instructor leadership behaviors can influence how students react and

behave in the learning environment.

Wallace, James. (2007) has focused on privileged groups such as professionals or senior

executives. What has been conspicuously absent are studies focusing on leaders in at-risk

or distressed communities. These are sometimes referred to as communities of poverty.

Bennis (2001) and Burns (2003) both identified the need for leadership research to

address the chronic problem of the alleviation of poverty and the need for

grassroots leadership from the poor to accomplish the task. This research examined,

through a mixed method research design in which case study is nested within content

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90

analysis, Myles Horton, a proven developer of leaders in at-risk and distressed

communities. A grounded theory of leadership in at-risk communities and the

components of communal residence, radical subordination, reconciliation, reframing,

restoration of people and community, and responsibility are explained.

This leadership theory is referred to as incarnational leadership due to its reliance on a

worldview incorporating kenosis, love, and justice. Incarnational leadership exhibits

elements from key theories such as social identity, self-efficacy, learned helplessness,

creative and applied problem solving, empowerment, risk in society, change and tipping

points, optimism, resilience, the psychology of forgiveness, logotherapy, and hope.

Incarnational leadership is compared and contrasted to transforming and

transformational leadership, servant leadership, self-sacrificial leadership, and

authentic leadership theories

Alimo -Metcalfe, Beverly;Alban- Metcalfe,John; Bradley, Margaret; Jeevi Mariathasan;

Samele, and Chiara. (2008) examined the relationship between quality of leadership and

attitudes This is a longitudinal empirical investigation, using quantitative methods. The

findings were fourfold: 1). The leadership instrument used was demonstrated to have

convergent, discriminant and predictive validity. 2). Differential relationships were found

between three aspects of quality of leadership and attitudes to work and a sense of

wellbeing at work. 3). One leadership quality - "engaging with others" - was shown to be

a significant predictor of organizational performance. 4). Leadership quality as assessed

by competencies or "capabilities" did not predict performance. The paper presents

evidence of: the validity of a new leadership instrument; the differential relationship

between leadership quality and staff attitudes to work and their sense of wellbeing at

work; and a predictive relationship between leadership quality and organizational

performance.

Lee, Eunhui; McMahan, Gary C. (2007) examined the relationship between the Big Five

personality traits (extraversion, agreeableness, openness to experience, conscientiousness,

and neuroticism) and equity sensitivity and transformational leadership behavior, as well

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91

as interaction between equity sensitivity and specific personality traits (extraversion and

agreeableness). The subjects include 95 MBA students. The Personality Inventory

Questionnaire, Equity Preference Questionnaire (EPQ), and Multifactor Leadership

Questionnaire- Form 5X are used to evaluate their personality, equity sentivity, and

leadership behaviour. Additionally, the Equity Sensitivity Instrument (ESI) is used to

measure equity sensitivity, and by comparing the results between EPQ and ESI, potential

differences in the measures of equity sensitivity are identified. The data is analyzed

through hierarchical multiple regression analysis. As hypothesized, agreeableness and

openness to experience have a significant positive relationship with

transformational leadership behavior. However, when the model includes equity

sensitivity, the effect of agreeableness disappears. As assumed in this thesis,

conscientiousness and neuroticism do not have any significant relationship with

transformational leadership behavior. In addition, extraversion does not positively relate

to transformational leadership behavior, and equity sensitivity does not interact with

extraversion and agreeableness when predicting transformational leadership behavior.

When equity sensitivity is measured by the EPQ, the results show a positive relationship

between equity sensitivity and transformational leadership behavior, while there is no

significant relationship when equity sensitivity is measured by the ESI.

This study contributes to the determinants of transformational leadership by adding

equity sensitivity. It explains that transformational leadership behavior is determined by

individual characteristics. Future studies should extend the research

on leadership behavior relating equity sensitivity based on the results of thisstudy.

Future studies should also regard the difference between the ESI and EPQ as a

measurement of equity sensitivity. Furthermore, organizations and schools should

consider benevolence as an important element of employee selection tests,

and leadership education and development.

92

Political Environment Studies of Organization

Yang, Kaifeng; Pandey, and Sanjay K; (2009) examined that Political support is an

important environmental factor in public management, and over the past few decades, the

implementation of results-oriented reforms has become highly influential as well.

However, few studies have examined the impact of these two factors on employee

attitudes and behaviors. This article proposes that the extent of results-oriented reforms

and political support from elected officials--as perceived by managers--has a significant

influence on managerial practice and normative commitment to the organization. Using

data from a national survey of state-level human service managers, we test and find

support for a model positing that managerial perceptions of political support have a direct

influence on the implementation of results-oriented reforms, organizational structure, and

internal communication. We also find that more extensive results-oriented reform efforts

are positively associated with goal clarity, communication adequacy, and flexible

structures and that normative commitment is affected positively by goal clarity and

negatively by bureaucratic structure.

Otenyo, and Eric E. (2008). examined the application of theories of organizational birth

and death in transitional and undemocratic political settings.Through the case study of the

birth and death of the Ministry of Supplies and Marketing in Kenya, the author

determines that theoretical explanations of organizational formation and demise do not

necessarily fit a uniform profile. Under unstable and undemocratic environments, public

organizations that are brought to life through decrees may also be unexpectedly vanished

without following a logical and predictable cyclical sequence .

Pandey ; SanjayK; Wright, and Braadley E. (2006). Took a systematic effort to study a

key theoretical question from the vantage point of public sector organizational behavior.

Most political science models, with a primary interest in democratic control of

bureaucracy, study the political influence on the bureaucracy from an agency theory

perspective. Organization behavior literature, on the other hand, is focused largely on the

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93

study of individual-level phenomena in private organizations and does not

incorporate political context as part of explanatory models. This article proposes a

middle-range theory to "connect the dots," beginning with disparate sources in the polity

influencing organizational goal ambiguity, which in turn is expected to increase

managerial role ambiguity. An empirical test, using data collected from a national survey

of managers working in state human service agencies, supports this theoretical model.

We find that certain types of political influence have an impact on organizational goal

ambiguity, which in turn has a direct effect in increasing role ambiguity and also an

indirect effect in increasing role ambiguity through organizational structure.

Guarasci, Bridget; Shryock, Andrew J (2011) examined how during this period

environmentalism, as an altruistic movement, enabled foreign investors to both

rationalize and mystify political power. Well before the fall of Baghdad in April 2003,

Iraqi exiles met with the U.S. Department of State under the rubric of the Future of Iraq

Project to plan an Iraq in Saddam's aftermath. The country they envisioned aligned

directly with the principles and values of a liberal polity: a certain degree of

governmental transparency, shared decision-making by way of voting and community

participation, individual rights, and the integration of Iraqi businesses and industries into

the global market. This dissertation makes two central arguments: first, although the

marsh project concerned the environment, the most powerful effects of this project lay

not in environmental rehabilitation, but in the support for a new economy. Second, "post-

conflict" Iraq established distance as a technology for foreign investment in Iraq.

Internationals worked from afar to preserve their own safety, but hired Iraqi project staff

to carry out their mandates on the ground. Technologies, like GIS and remoste sensing,

customized for this distanced approach gave rise to virtual spaces of the marsh which

coalesced internationally. As marsh advocates brought a digitally

rendered environment into focus to reflect a future they wished to see, they obfuscated

human experience of the war and the violence of the present. In this way Iraq circa 2003

came to be defined by a future-oriented politics of life that, in the case of marsh

restoration, privileged the ecological over the human. Chapter One, "Recuperation,"

analyzes the relationship of Iraqi exiles and the marsh. Chapter Two, "Conference,"

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argues that conferences were critical resources for distanced reconstruction. Chapter

Three, "A Holographic Image," demonstrates how the marshes were abstracted via

remote sensing technologies. Chapter Four, "Wartime Birding," evaluates Nature

Iraq birding expeditions. The final chapter, `The National Park," examines wartime

conservation. Each chapter contributes to the overall argument that the Iraqi marsh

project instituted an economy of life.

Zhou, Qingshui; Colyer, Dale K. (1999) seeked a cooperative solution to the concerns

such as issues of trade and the environment, and the 1990s witnessed a great rise in

global environmental concerns. Postwar environmental movement, interaction of trade

and the environment, and the reconciliation issues are reviewed. Methodologies to

studying these issues are categorized into (1) international trade approaches, and (2)

environmental economics approaches. A political model-cost sharing game is then

proposed. Specifically, environmental problems resulting from trade are treated as

international public goods and the issue of optimal provision of public goods is analyzed

in a game-theoretic framework. The economy consists of one public good, one private

good, and a set of agents (sovereign countries or regions). Each agent's strategy is to

decide the levels of his private consumption and resources devoted to public goods

provision, given his budget constraint. It is shown that the cooperative game with a

gamma-characteristic function has a unique equilibrium which is Pareto efficient.

Further, a new solution concept--Gini Ratio Equilibrium (GRE)--is developed which

combines the virtues of all three fundamental modes of cooperations, i.e., direct

agreement, justice and decentralized behavior. Finally, a taxation model is adopted to

implement the GRE model. Thus the cost share for each agent is determined by a

single political parameter--the elasticity of the cost share, given the total cost of the

public good and the distribution of the initial endowments. The model is applied to the

global warming case by showing how to finance a forest preservation project. The

assumed player set is 195 countries, the total GDP of each country is the endowment, and

the project cost is $9.9 billion. Cost shares for each country (and hence per-capita share)

are calculated under three different elasticities: -0.3, 0, and 0.3. The United States (per-

capita GDP $25,514) incurs the biggest share, with per-capita cost shares of $7.63, $9.69,

and $10.85, respectively, for the three elasticities; while SaoTome and Principe (per-

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capita GDP $120) incurs the smallest one, with per-capita shares of $0.01, $0.05, and

$0.18, respectively.

Implementation of Evaluation and appraisal Studies of Organization

Thompson, and Frank J (1982). Observed that during the 1970s, various federal, state,

and local managerial performance appraisal systems were revamped or developed.

Today's performance appraisal systems stress the need for pertinent, accurate manager

performance information and correct interpretation. A need also exists to link the

performance appraisal to other functions within personnel decision making.

An appraisal system's effective use largely depends upon managers who make decisions

using inspiration, rather than calculation alone. Further, those involved in initiating

an appraisal must be skilled in creating a consensus regarding appraisal system merits.

For example, employees or politicians lacking faith in an appraisal system practically

void its chances of producing desired organizational results. A crucial variable in the

design and implementation of the successful appraisal system is trust built into the

system. System designers must avoid limiting the potential of appraisal system initiatives.

As more and more marginal public-sector organizations, particularly at the state level, do

parts of government business, they influence the shape of public programs. Thus, the

dynamics of inspiration and consensus building on these margins warrant a central

position on public research agendas.

Steel, and Brent S; (1983) elaborates that Implementation of a

performance appraisal system typically requires: 1). employee acceptance, 2. positive

valuations on the part of supervisory personnel, and 3). commitment of personnel

specialists to train the users of the system. This study investigates the

expectations of these 3 groups in the state of Washington to see if they believe that a

good performance appraisal system could lead to increased agency efficiency, better

individual performance, and improved employee morale. Data was taken from a random

survey of supervisors, employees, and personnel specialists. A sampling of study findings

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includes: 1). State employees expressed positive expectations regarding the

usefulness of performance appraisals. 2). Both employees and supervisors were positive

in their view of the use of a good performance appraisal system. 3). All groups

responding were optimistic that a good system would bring about improvements at the

agency and individual levels. Appendices.

Stieber, William.(1991) aimed at improving the quality of an organization's products or

services through quality training presented as as quality improvement, total quality

management, or quality control training. These quality programs provide interpersonal

and process skills training and/or various types of statistical training to a wide

variety of personnel in corporations. These programs are usually sponsored by training,

personnel or quality departments. The internal change agents from these departments

want personnel to learn new skills and use these skills on the job; in their quest to

improve the quality of its organizations products and/or services. They face a

number of decisions about how to implement their quality improvement training.

Information on implementation characteristics of effective programs is needed to make

appropriate, cost effective choices. A questionnaire was mailed to professionals

responsible for quality improvement training of 1,500 randomly-selected corporations

with at least 4,000 employees. The questionnaires contained four items addressing quality

training professionals' assessment of their programs' effectiveness, based upon four

types of program evaluation. The remaining items asked respondents how their quality

improvement training program had been implemented. Multiple regressions analyses

were computed to determine which and to what extent, implementation characteristics

accounted for variation in each of the four measures of program effectiveness. Analyses

revealed that the extent of top management support for quality improvement training, the

use of skills taught on the job made part of performance review, and the extent to which

supervisory employees receive training accounted for the largest proportions of variance.

Relationships between implementation characteristics and the various types of

evaluation were also presented. Results of this study suggest that in effectively

implementing quality training efforts, the professional responsible for such initiatives

must be concerned with securing top management support during the training process,

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reinforcement of the skills from training in any internal performance appraisal process

and including the key supervisory levels in any major quality training endeavors in the

organization. Other implications for quality training professionals and suggestions for

future research were discussed.

Avne, Laura; Mandell, Stuart J. (1993) examined what is currently happening in the area

of hospital management performance appraisals. Study objectives were: (1) to determine

the prevalence of various appraisal methods, (2) to discover variations in appraisal

objectives, (3) to determine the time allotted to the appraisal process, (4) to discover

rater/ratee satisfaction with the process, and (5) to determine the CEO's skills as a

performance rater. Chief executive officers (CEOs) from 125 California general acute

care hospitals of 300+ bed size were sent a survey. A total of sixty-three (63) individuals

responded to the survey, a return rate of 50 percent. Findings. (1) Nearly 94 percent

indicated using a formal, documented managerial performance appraisal system. (2) Most

(64.4 percent) used the MBO or Goals/Results Approach either alone or with another

technique. (3) The most popular objectives for the performance appraisal were: (a)

providing feedback for the employee, (b) allocating rewards, and (c) identifying skill

deficiencies and determining training needs. (4) Approximately half felt their appraisal

method provided for good legal documentation. (5) Most (61.9 percent) indicated that

less than 5 percent of a person-year was allotted for appraisal information gathering,

review sessions, and goal planning. (6) Approximately half met with their managers once

a year to conduct performance reviews. (7) Nearly 60 percent perceived their managers to

be "generally satisfied" with the appraisal system, while nearly 65 percent of the CEOs

reported that they were "generally satisfied". (8) Nearly one-third reported that they

anticipated a change in the appraisal system within the next year. (9) Popular appraisal

training methods included professional seminars, hospital inservicing, and reading of

books/articles.

Recommendations. (1) Determine if the current performance appraisal system is meeting

the needs of the organization. (2) Survey the appraisee's level of satisfaction with the

current appraisal process. (3) Change the current appraisal method if it is not meeting

organizational needs. (4) Use formal, documented performance appraisals. (5) Consider

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using MBO as the primary managerial evaluation method. (6) Write up or review current

job descriptions. (7) Expand the number of objectives for using the managerial

performance appraisal. (8) Increase the preparation, implementation, and review time

spent in the managerial appraisal process. (9) Conduct two formal and several informal

evaluation meetings annually. (10) Increase the amount of rater training in conducting

appraisals. (11) Discuss the topic of managerial appraisal with other hospital CEOs.

Supervisory Style Studies of Organization

Ostergren, Jennifer; Robb, Susan Mortorff (2008) explored the supervision experiences

and beliefs of individuals currently completing their first year of professional service,

regarding: (a) their perception about their working relationship with their supervisor, (b)

their perceptions about the supervisory styles and predominant role assumed by their

supervisor, and (c) their satisfaction with supervision. Both qualitative and quantitative

data were collected utilizing a questionnaire completed by individuals currently

completing a Required Professional Experience (RPE) as required by the California

Speech-Language Pathology and Audiology Licensing Board (SLPAB). The largest

majority of participants (93%) were also completing a Clinical Fellowship (CF) as

required by the American Speech-Language and Hearing Association (ASHA). One

hundred twenty-two individuals participated in this study. Results revealed that the

majority were satisfied with their supervision. The majority also reported a relatively

strong working alliance with their supervisors. Most, but not all, participants considered

their supervisor a mentor. Consistent with Anderson's Continuum Model of Supervision

(Anderson, 1988), the majority of participants indicated that their supervisors used either

a collaborative or consultative supervisory role. Participants also reported that their

supervisors most frequently used a supervisory style consistent with Friedlander and

Ward's (1984) Attractive supervisory style. Demographic variables of the supervisor,

supervisee, and setting did not play a dominant role in these findings. Rather,

interactional factors between the supervisee and supervisor were found to be important to

working alliance and satisfactions measures. In particular, all levels of satisfaction with

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supervision were importantly related to working alliance. All three types of supervisory

styles (Attractive, Interpersonally Sensitive and Task Oriented supervisory styles) (as

outlined by Friedlander & Ward, 1984) were also found to be importantly related to

working alliance and satisfaction measures. The results of this study are discussed as they

relate to clinical supervisors, researchers, and governing agencies in the field of speech-

language pathology.

Nelson, and Andre. (1992) explored that Supervisors need to learn to vary their

management styles in order to get the best results from their workers. This is because the

needs of workers vary. Some may like to solve problems and require very little

supervision, while others may need more encouragement and supervision in order to

succeed. Styles of supervision run the gamut from democratic, laissez-faire to autocratic

and shades between. The style should be altered depending on the employees'

expectations and the job environment, both of which change rapidly. One supervisory

style simply does not adequately meet everyone's needs. Supervisors who accept this will

discover that it will make their task easier and their work group more responsive and

supportive. DeConinck, James B, Brock, Baird A.1993. examined the influence of the

sales manager's supervisory style on the role clarity and job satisfaction of a group of

full-time real estate salespeople. The results show that the salesperson's self-esteem, need

for role clarity, experience, and self-perceived performance moderate the relationship

between supervisory behaviors and sales peoples' job attitudes. Real estate salespeople

have more positive job attitudes when the sales manager is supportive of their behavior

than when the sales manager tries to structure their jobs.

Internal Communication System Studies

Ford, Sherry; Honeycutt, James M. explored imagined interaction (IIs) and bereavement

coping self-efficacy in psychosocial adjustment to spousal bereavement. II characteristics

and functions explored include discrepancy, activity, proactivity, specificity,

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retroactivity, variety, valence, catharsis, self-understanding, rehearsal, compensation and

use of IIs with the deceased spouse. The current study's primary contribution is the

introduction of bereavement phenomena into the framework of

intrapersonal communication. The present investigation includes results of two studies.

The first included a sample of 232 individuals at varying lengths of widowhood who

completed the Adjustment Survey, a 15-page survey instrument consisting of II factors,

IIs with deceased spouse, bereavement coping self-efficacy, social support, interaction

with other widow(er)s, pre-death communication for survivorship, as well as

demographic characteristics. The second study, a follow-up to the initial study, included a

sample of 75 widows/widowers who completed a revised version of the Adjustment

Survey. Revisions to the survey consisted of contextualizing the II measurement tool to

reflect more direct association with spousal bereavement. Findings of the

first study unearthed an indirect relationship between psychosocial adjustment to spousal

bereavement and reports of IIs with the deceased spouse. Participants reporting more

frequent occurrence of IIs with the deceased spouse reported lower levels of adjustment.

Findings confirmed a direct relationship between bereavement coping self-efficacy and

psychosocial adjustment to spousal bereavement. These findings indicate

that internal phenomena, namely imagined interaction and self-efficacy, make significant

contributions to processing spousal bereavement. The nature of the association between

IIs and the adjustment process was further explored in a follow-up investigation.

The second study was conducted to explore the strength of the relationship between

global psychosocial adjustment and II factors more specifically reflecting the nature of

spousal bereavement. Study 2 results support the first study in that IIs with the deceased

spouse again were found to share an indirect relationship with global adjustment. II

valence also emerged as a significant, negatively-related factor in global adjustment. II

self-understanding, which also shared an indirect relationship with adjustment, began to

approach traditional significance as well. Overall findings confirm that intrapersonal

phenomena contribute to the adjustment process in spousal bereavement.

101

Goodsite, and Bruce H. (1987) examined that General Motors Corp. (GM) has launched a

diversified attack on what it terms the "frozen middle" in its employee communication

system -- a plan to make its whole management/supervisory group a more active element

in employee communications. The new corporate wide plan adds further dimension to the

automaker's already sophisticated employee communication program; now, 60,000

managers and supervisors are a major audience. The communication system has 4 basic

goals:1. to sell throughout GM the idea that solid 2-way communication is essential to

effective management today, 2. to keep all employees informed, 3. to represent both

management communication priorities to employees and employees' own legitimate

concerns and information needs to management, and 4. to push the company toward

open communication. The expanded program involves print and visual media and a

special training seminar for managers. The channels of communication at GM have

developed step-by-step over the years, based largely on research to guide improvements.

McDonald, and Tom (1997). Observed that new technologies are making meetings more

productive. Audio teleconferencing, video teleconferencing, and computer conferencing

all offer advantages. About a quarter of Fortune 1000 companies are using an Intranet -

their own internal communication system complete with Web pages. Pharmaceutical

giant Eli Lilly and Co. recently hooked up 3,000 desktop computers in company offices

located in 2 dozen countries.

Farrell, Jenny; Sahlstein, Erin M; Emmers-Sommer, Tara M.; Valenzano, Joseph

M.; Hertlein, Katherine M. (2009) addressed communication constraints perceived by

individuals in long-distance dating relationships (LDDRs) and how these constraints are

managed. Internal constraints are identified within the boundaries of the individual or

relationship and external constraints are those that originate from outside the boundaries

of the individual or relationship. Semi-structured qualitative interviews were conducted

with 27 participants; ages ranged from 18-35. Participants reported perceiving

11 internal constraints (mediated communication, avoidance, talk habits, physical

absence, emotions, view of outsiders, uncertainty and expectations, effort, notions of

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102

distance, visits, and miscellaneous) and five external constraints (schedules, social

network, finances, and technology, miscellaneous). Participants reported managing

constraints as individuals and as dyads. Constraints are discussed to be hierarchical;

notions of distance, schedules, social network, finances, and technology are primary

constraints; all others are secondary. Emotions and avoidance also allow participants to

manage other constraints. Applications and areas of future research are also discussed.

Employees Behaviour and Satisfaction Studies of Organization

Martin, Fabiola; Muchnick, Marc. (2006) investigated the relationship between

leadership practices and job satisfaction and to determine whether the demographics

gender, education, and tenure impacted that relationship. The target population consisted

of randomly selected non-supervisory employees who evaluated their first level

supervisors. Kouzes and Posner's Leadership Practices Inventory and Spector's

Job Satisfaction Survey were the measurement instruments that were combined to create

a Zoomerang online electronic survey methodology. Pearson's Moment Correlation and

Analysis of Variance were the statistical tests that were applied. The findings indicated

that there was a moderate statistically significant positive relationship between leadership

practices and job satisfaction and that there are no statistically significant differences

based on the demographics gender, education, or tenure when the tests are applied to

Job Satisfaction and Leadership Practices at the overall scale levels. This study also

discovered there that different correlational and statistically significant results would be

achieved if Leadership Practices and Job Satisfaction were analyzed at the subscale level.

Tiegs, Robert B; Tetrick, Lois E; Fried, and Yitzhak; (1992). Examined the extent to

which linkages among job characteristics, psychological states, and work outcomes are

moderated by growth need strength (GNS) and work context satisfactions was examined.

The author evaluated the effects using the database of Oldham, Hack man, and Stepina

(1979), which consists of 6,930 employees working on 876 jobs. It was found that, when

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evaluated in terms of statistical and practical significance, the data generally did not

support either the individual moderating effects of GNS and context satisfactions or the

joint moderating effect GNS and each context satisfaction on the relations among job

characteristics, psychological states, and motivational and affective outcomes. The

findings are consistent with Oldham et al., which found that GNS and each of the 4

context satisfactions did not jointly moderate the relation between the overall motivating

potential of a job and internal motivation.

Kattara, Hanan Saad; Weheba, Dina; El-said, and Osman Ahmed. (2008). attempted to

investigate the relationship between employees' positive and negative behaviours,

customers' perception of service quality and overall customer satisfaction. Results of the

current study revealed that all employees' behaviours, either negative or positive, are

highly correlated to the customers' overall satisfaction. The study traced the impact

of behaviours on customers' perceptions and overall satisfaction through studying the

relevant literature and by gauging opinions on the impact of employees' behaviours on

customers' perceptions of quality and overall satisfaction. Findings in this context

confirmed the correlation between these variables and their consecutive and exchanging

effect. It was also concluded that employees’ behaviours have great effect on overall

customer satisfaction regardless of customers' gender, nationality, and purpose of visit,

number of visits and length of stay. Finally, the study ends up by offering suggestions

and practical implications for hotel practitioners to think strategically and implement

effective tools to motivate employees towards behaving positively with customers.

Stoneback, David; DeCaro, Frank; Balch, David; Rivera, Luis.(2011) examined an

identified problem in addressing the job satisfaction of employees in call centers (N =

49). It was hypothesized that the level of emotional intelligence (EI) in managers (N =

10) may have an impact on employee satisfaction. This problem and the hypothesis led to

a series of questions concerning whether any of the four branches of emotional

intelligence impact employee satisfaction. Many of the studies within the existing body

of knowledge focused on EI and other factors such as bottom line results, employee

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104

engagement, and leadership effectiveness. What was known at the time of the study was

that attrition in call centers is high and that there must be a series of factors related to this

fact. Employee satisfaction was identified as a potential factor. To measure employee

satisfaction, the Job Satisfaction Survey tool was used while the MSCEIT tool was used

to measure manager emotional intelligence. The results of the MSCEIT for each manager

were tested against the JSS results for their employees that participated in the study. The

outcomes found that for each of the four branches (perceive use, understand, and

manage) there was no statistically significant link. The study concluded that there was no

discernable impact of manager's EI on the satisfaction of their employees. However, there

was a relationship found between employee satisfaction and gender of manager. The

conclusion of these results suggests that there is further opportunity to develop

knowledge in this field. Further research should be developed to understand the

relationship manager gender plays in employee satisfaction. It is suggested that additional

variables be added to future studies and that the scope of future studies extend beyond

internal factors and look at macro factors external to the workplace. Additionally, it is

suggested that the body of knowledge may benefit from a longitudinal study that

examines and tracks results for manager EI and employee satisfaction over time.

Creativity Stimulants Studies of Organization

Amabile, Teresa M; Conti, and Regina (1999) explained that the work environment

for creativity is examined at a large high-technology firm before, during and after a major

downsizing. Creativity and most creativity-supporting aspects of the perceived work

environment declined significantly during the downsizing but increased modestly later;

the opposite pattern was observed for creativity-undermining aspects. Stimulants and

obstacles to creativity in the work environment mediated the effects of downsizing. These

results suggest ways in which theories of organizational creativity can be expanded and

ways in which the negative effects of downsizing might be avoided or alleviated.

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105

Fagan, and Mary Helen. (2004) Found a positive relationship between creative style and

work creativity. These results support the work of researchers who found creative style to

be related to creative behavior (16). Also, as hypothesized, the study found a positive

relationship between creative climate stimulants and work creativity, and a negative

relationship between creative climate obstacles and work creativity.

Elsbach, Kimberly D; Hargadon, and Andrew B (2006) proposed that organizations use a

new framework of workday design to enhance the creativity of today's chronically

overworked professionals. Although insights from creativity research have been

integrated into models of work design to increase the stimulants of creativity (e.g.,

intrinsic motivation), this has not led to work design models that have effectively reduced

the obstacles to creativity (e.g., workload pressures). As a consequence, creative output

among professionals in high-workload contexts remains disappointing. In response, we

offer a framework of work design that focuses on the design of entire workdays rather

than the typical focus on designing either specific tasks or very broad job descriptions

(e.g., as the job characteristics model in Hackman et al. (1975). Furthermore, authors

introduce the concept of "mindless" work (i.e., work that is low in both cognitive

difficulty and performance pressures) as an integral part of this framework. Authors

suggest that to enhance creativity among chronically overworked professionals, workdays

should be designed to alternate between bouts of cognitively challenging and high-

pressure work (as suggested in the original model by Hackman et al. (1975), and bouts of

mindless work authors discuss the implications of our framework for theories of work

design and creativity.

Martin, Susan; Carroll, Theresa L. (1993) described and assessed perceptions of factors

in the work environment that are stimulants and barriers to the creativity of nurse

managers. Twenty nurse managers (response rate of 95%), in one metropolitan teaching

hospital, completed the Work Environment Inventory (WEI) (Amabile et. al., 1990). The

WEI reports test-retest scale reliabilities of internal consistency (Chronbach's alpha)

ranging per scale from.69 to.80 or higher. Construct validity was reported. Their

responses indicated an overall positive response to their work environment. Freedom,

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106

supervisory encouragement and work group support were the most frequent

identified stimulants in the work environment. Work load pressure and organizational

impediments were present as barriers. There was no significant correlation between years

of experience as a nurse manager inside or outside the organization and their perception

of barriers and stimulants to creativity.

Ethics and Social Responsibility Studies of Organization

Valentine, Sean; Godkin, and Lynn (2009). Observed that Successful organizations often

invest resources in social initiatives that assist stakeholders, and there is reason to believe

that the resulting business performance stems from a work environment that encourages

ethical conduct. However, little is known about how social performance benefits a

company internally from an employee perspective. Consequently, the purpose of this

study was to investigate whether employees' beliefs about social responsibility were

related to their ethical reasoning. Using a self-report survey containing

different ethics measures, information was collected from 781 individuals employed in a

four-campus health science center. The findings indicated that perceptions of

corporate social responsibility and the believed importance of ethics and social

responsibility were positively related, and that these factors were at least marginally

associated with different steps of ethical reasoning. Finally, the ethical decision-making

steps were positively interrelated. Business leaders should consider

using social performance as a mechanism for creating a corporate environment that

encourages ethical reasoning, and that further complements the strategic role of human

resource ethics.

Cheney, and Tim D (2006). sets forth a decision making model for organizations to use

in their pursuit of "business ethics," and "social responsibility." Authors then provide

some suggestions for how to more easily adapt such a model. We hear a lot these days

about "corporate ethics," "business ethics," and "social responsibility." Most of us have

some idea what these terms mean, but it often seems a bit fuzzy. This can make it a

daunting task for managers to adopt strategies to address these concepts. Ethics deals

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with concepts of right and wrong, and entails actions somewhat beyond the legal

minimums. Social responsibility tends to mean utilizing the stakeholder model and taking

into account to a greater degree the interests of those impacted by corporate decisions and

actions. One way to consider the manner in which ethics and social responsibility apply

in the corporate or business setting is to approach it as part of decision making process.

That's what managers do; they make decisions. The following approach might be helpful

as a way to enhance "business ethics" and "social responsibility" through a broader

decision making process.

Singhapakdi, Anusorn; Vitell, Scott J; Rallapalli, Kumar C; Kraft, and Kenneth L.

(1996). stated that marketers must first perceive ethics and social responsibility to be

important before their behaviors are likely to become more ethical and reflect

greater social responsibility. However, little research has been conducted concerning

marketers' perceptions regarding the importance of ethics and social responsibility as

components of business decisions. A reliable and valid scale for measuring marketers'

perceptions regarding the importance of ethics and social responsibility is presented. An

instrument for the measurement of the perceived role of ethics and social responsibility is

also presented. Evidence that the scale is valid is presented through the assessment of

scale reliability, as well as content and predictive validity. Future research needs and the

value of this construct to marketing is discussed.

Gaston, Ellen; Stevens, Leo. (2011) examined the potential relationship between

commitment to corporate social responsibility and organization performance management

within a global stakeholder context in the biotechnology industry. For purposes of this

research biotechnology corporate social responsibility encompasses corporate

contributions to the economy achieved while considering the needs of human resources,

environment, and society. The mixed methodology study revealed a positive

Pearson r correlation of corporate social responsibility to organization performance

measured by Tobin's q. This study identified key drivers between corporate social

responsibility and organization performance management including organization culture,

corporate social responsibility program, applied ethics extending to the supply chain, and

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managed risk. In addition to surfacing a significant variation in biotechnology industry

perception of risk, thestudy identifies organization performance management

implications from organization corporate social responsibility focus and integration

addressing enterprise resource management, consideration of

stakeholders, ethics policies, and security standards. The study results suggest increased

leadership focus on applied ethics, quality, and risk management has the potential to

increase both corporate social responsibility and organization performance.

Power and Politics studies of Organization

Ferdinand, and Jason (2004) explained that power and politics are two issues that have

received great attention in numerous fields of inquiry, but as yet have been virtually

ignored in the field of organizational learning. This study briefly notes the minimal

contributions made thus far and demonstrates the limitations of the approaches to the

study of power in organizations currently favored, before suggesting an alternative

starting point for empirical investigation. Empirical evidence is used to suggest that

learning in contemporary organizations is already influenced by ideological interventions,

and that formal qualifications demonstrate the increasing attempts of the UK government

to influence organizational learning.

Lee, Yoon; Ferguson, James.(2011) explored the intersections of social and

environmental politics, focusing on the governance of work environments. It is based on

two related premises: first, that a workplace is an ecological site where a worker's body--

an organic, porous entity--interacts with its surroundings; and second, that any

intervention in the ecology of a workplace involves an effort to regulate and guide the

conduct of those who inhabit the workplace, that is, workers and corporate managers.

Thus, this dissertation is an intellectual inquiry into the place of workers and corporations

in environmental politics. Discussion in this dissertation is based on three years of

fieldwork in Santa Clara County, California, also known as Silicon Valley. Central sites

in my fieldwork were a local business association and a nonprofit advocacy group

concerned with the working conditions of low-income immigrant workers, both of which

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109

had been involved in public debates about the environmental and health impacts of

electronics production since the late 1970s. Key questions that the researcher explored

during the research process were how the two social groups (that is, corporations and

immigrants) had become important subject groups in urban environmental governance

and what strategies their advocates had developed to claim their rightful place in social

and spatial governance. In research analysis, the researcher attributed the growth of

collaborative initiatives for sustainability or environmental justice, in which the two

organizations participated, to the recent development of partnership-based, "positive"

environmental governance which aims to depart from the conventional regulatory that is

based on punitive measures (often called the "command-and-control" approach). The

researcher argued that such participation by business associations or nonprofit advocates

for immigrants in environmental partnerships takes a "cultural" work: the organizations

need to rework values and meanings associated with their constituencies, blurring the line

between public and private interest or between community and immigrants. Further, the

researcher suggested that this cultural work is centrally grounded in the "bio-political"

dimensions of capitalism. The researcher analysis focuses on two important forms of

biopolitics: one, effort by Silicon Valley companies to present themselves as part of a

governing body based on their proclaimed concern with the local population and their

"quality of life" issues; and, the other, illness claims by workers, whose voiced concern

about the long-term health impacts of their work environments have the effect of

unsettling the dominant power of social insurance programs based on "industrial

accidents," such as the workers' compensation system.

DeLoach, Stephen B; Das, Jayoti; Conley, and Lindsey (2006). Analyzed how a country's

commitment to labor standards is affected by the international political power they

possess. Powerful countries may be less committed to actual enforcement of certain labor

standards since they are unlikely to face significant threats of international sanctions

regardless of their actions. The study introduces an index of international power for 116

countries that is used to examine how power affects the extent to which countries enforce

standards relating to freedom of association and collective bargaining. The evidence

suggests that, even after controlling for differences in wealth, productivity, and market

freedom, powerful countries are significantly less committed to the protection of labor

standards than less powerful countries.

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110

Wilson, and Patricia A (1994). Provided a thorough investigation into why senior

executives seriously consider leaving the federal service. The study investigates turnover

using integrative conceptual models. The sample population was drawn from members of

the US Senior Executive Service (SES). In addition to socio-psychological factors, the

study examines the influence of power and politics on the intent to leave of SES

members. The research finds subunit power - a structural and managerial phenomenon -

to be an important determinant of senior executives' intent to leave the federal service.

The continuing systematic development of senior executives may be an effective way to

increase retention, as well as quality and productivity in subunits within departments of

the federal government. Subunit power may be enhanced by assuring the appointment of

more career executives into subcabinet appointments. Subunit power provides SES

members with the tools to be successful in their desire to influence or implement policy.

Duarte, and Fernanda (2010) Re-affirmed the need for a critical pedagogy of

organizational power and politics to foster deeper levels of reflection and ethical attitudes

among undergraduate management students. While prescriptive pedagogical approaches

can impart knowledge that may be useful to future managers, they often encourage a

shallow and instrumental view of power in which profits are placed above ethics, and

expediency above morality. As argued here, a critical pedagogy will encourage a more

productive analysis of power-related phenomena in organizations, and will nurture

attitudes and behaviours that can humanize management practice. The first part of the

paper examines the key theoretical concepts of the proposed approach, the second

discusses a set of themes emerging from a critical analysis of

organizational power and politics in a management subject, and the third discusses

common challenges encountered by academics committed to critical approaches.

Reilly, and David A (2003). Explained that the behavior of states in the international

system, according to theories of power politics, is centered on survival. Individuals

become citizens, relinquishing their right to self-govern, to improve their security. Their

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111

primary demand of the state, in return, is that it function to protect its citizens. The state,

therefore, must develop strategies to ensure its survival. This has led historically to a

concern about the power of a state relative to others. Given that the international system

lacks a centralized authority capable of dictating and enforcing laws, each state must

engage in self-help strategies. This simulation enables participants to experience power

politics as they unfold and to serve as leaders attempting to ensure the survival of their

state. They will develop foreign policies intended to improve their security and bargain

for foreign assistance. The game is most effective as a learning tool when followed by a

debriefing session that introduces the theories behind many of the activities they engaged

in. The simulation and debriefing can be conducted in 1.5 to 2 hours.

Teams and Team Work studies of Organization

Axelrod, and Richard (2002). Explained that teams are more than a name. Calling a

collection of individuals a team does not make them one. Forming a team starts with

purpose and interdependence. A compelling purpose allows people to put forth effort in

service of issues larger than themselves. Interdependence means having to work together

to get the job done. Some teams require little interdependence and others require a lot.

But all teams require some interdependence. Additionally, effective teams require clear

goals, roles that are agreed upon and understood, and well-defined approaches for

meetings, decision making, and information sharing. The way people experience

themselves in a team ultimately determines whether they put their wholehearted selves

into the work of the team. As paradoxical as it may seem, the key to effective teams is

individuals. Piccoli, Gabriele; Powell, Anne; Ives, Blake. 2004. Determine the impact

managerial controls have on the effectiveness of virtual teams. Using an experimental

design compares self-directed virtual teams to counterparts where behavior controls are

used as a method of managerial control. The data were collected using 51

student teams of three or four members each from three different countries. The results

indicate that the most satisfied team members were in virtual teams with effective

coordination and communication. Members of self-directed virtual teams report higher

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112

individual satisfaction with the team and project, while different control structures had no

significant impact on virtual team performance. Future research should investigate how

these findings generalize to organizational workers, rather than just looking at students.

This study is just a first step investigating one type of managerial control: behavior

controls. The small amount of research that has been published on virtual teams has

primarily concentrated on self-directed teams. This compares results

of team effectiveness by looking at both self-directed virtual teams and virtual teams with

behavioral controls enforced.

Nedelko, and Zlatko (2007). Observed that over the past two decades, several innovative

ways of working have emerged-among them, virtual teams. In today's world,

virtual teams have become almost a prerequisite to succeeding in the global economy.

Technology is a crucial element of any virtual team, and a broad range of groupware

exists that supports virtual teams' work. However, team members still have unique

obstacles to overcome. Frequent complaints from virtual team members relate to the lack

of face-to-face contact and the inability to share non-verbal communication. Using a

videoconferencing system in performing the virtual team's work can help eliminate such

problems as videoconferencing simulates very closely face-to-face communication. The

study presents an overview of videoconference typology and assesses which types of

videoconferencing systems are most suitable for performing the different tasks associated

with virtual teams.

Roper, Kathy O; Phillips, and Deborah R. (2007). Presented the advantages and possible

deterrents of self-managed work teams, and offers recommendations on ways to integrate

these teams into project management. A range of works, which provide a description and

practical advice about self-managed work teams, are reviewed in an effort to provide a

thorough picture of self-managed work teams. The information is sorted into sections:

history of self-managed work teams; self-managed work teams: a definition;

characteristics of self-managed work teams; the role of emotional intelligence in self-

managed work teams; developing and empowering the team; barriers to successful self-

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managed work teams; factors to consider before forming a self-managed work team and

the longevity of self-managed work teams. The study integrates theories and findings

from other works to offer a holistic view of self-managed work teams in today's

workplace.

Brown, and Thomas C. (1992). Observed that teams are powerful when they work well,

but transforming a group of individuals into a team can be hard work. The four stages

of team growth are forming, storming, norming, and performing. First, the group must

form. At this stage, the group decides why, or whether, it wants to work together for a

common purpose. In the second stage, storming, group members begin to share

disagreements and frustrations. The major concerns of the full group during the second

stage should be to emphasize open communication and positive conflict and to establish

group goals without destroying individuality. In the norm stage, the group has reached a

common understanding on resolving conflict, reaching decisions,

measuring work completion, handling communications, and managing meetings. In the

performing period, individual goals and roles mesh as team focus and member alignment

merge into a productive unit.

Vasquez, and Beverly. (1997). Examined that businesses of every type and size are

relying on "team building" and comfortable office environments to produce more

effective employees. Companies are using everything from professional trainers to more

comfortable chairs to make their employees happy and therefore more productive. And as

more companies rely on teams to do the work, training is used to familiarize employees

with each other and to build trust so they can learn to work together effectively. Peggy

Steele, CEO and founder of International Learning Systems, said downsizing in

the work force is one reason why companies have started doing more work in teams.

"Employees are asked to do more with less and more people are asked to make

decisions," Steele said. Charlotte Earlen baugh, an independent human resources

consultant, said team building that brings employees into decision-making process and is

open about what's happening in the company can increase productivity even more than

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114

monetary compensation. "From a human resources perspective, team building can affect

employees and their performance because studies have shown that workers are motivated

by feeling that they are a part of the business as a whole, knowing the goals or missions

of a company and understanding how they fit in to that mission," Earlen baugh said.

"Team building is valuable because two heads are better than one," she added. "The most

successful aspect of team building is knowing who your team players are and what their

areas of expertise are." G.G. Johnston of public relations firm Johnston Wells said all of

the agency's work is done in teams, so team building is a crucial part of the company.

"There is an expectation here that everyone work well together. Working in teams helps

us manage business better for our customers," Johnston said. "Teams offer a safe

environment for people to grow and learn." However, a former Johnston Wells employee

said teams are only effective if the work is distributed equally and the independence

of team members is respected. "In a team, if the senior members hoard the majority of the

work and leave making coffee to other members, all it does is build bitterness," said the

former employee, who asked not to be identified. "Teams can also be inefficient and a

waste of client's money... because there is very little individual responsibility involved.

Some things are not team oriented and writing is one of them." Teams are most effective

when the customer's needs are the center of their focus, said Steele. The most important

thing to consider when thinking about building teams is if they are necessary, said Nina

Peterson, director of sales and marketing for Team Works Inc. in Boulder, a training

company that works with companies on programs that help relationships in the workplace

become more effective. "Teamwork has to be a strategy that leverages other goals of the

company," Peterson said. "Companies have to consider why they are doing this and what

they want to get out of it. It has to make sense as a business strategy because it's a huge

investment and you're asking your employees to change the way they work." Teams can

be an effective way to manage projects and other work, Peterson said, but only if

everyone is involved. "Participation equals value," she said. "Even in

a team environment, everyone can play a leadership role." When working with clients on

creating an effective workplace environment, Team Works starts with a needs

assessment, Peterson said. "When trying to build a team environment," she said, "you

115

have to be sensitive to what the trust factor is like." "The key to successful team building

is communication," agreed Earlenbaugh. Through communication, players can learn to

trust each other and therefore work together more effectively.

Bell, Christopher; Mink, Barbara P. (2008) working from the key principles of media

richness theory (MRT), focuses on how team leaders' choices of communication media

impact on their leadership effectiveness rating as perceived by their team members. The

research methodology involved the development of the Media Selection Questionnaire

(MSQ) to assess team leaders' capacity to align media capability with communication

need. The team leaders' leadership effectiveness was assessed through the use of a 360-

degree leadership diagnostic instrument, the Leadership Effectiveness Inventory (LEI).

Qualitative analysis was also undertaken of both the team leaders' written responses to

the MSQ and the team members' written responses to the LEI. The research findings raise

significant questions regarding MRT as a complete and sufficient explanation of

team leaders' media choice patterns. The findings highlight the need to develop a far

more sophisticated understanding of team leaders' media choices that reflects the cultural,

technological and personal preference influences on media selection by team leaders. In

addition, the research identifies that, in opposition to MRT,team members of

dispersed teams do not base their rating of team leaders' leadership effectiveness on the

capacity to align communication media richness levels with the complexity of the

communication act. The research identifies that team members of geographically

dispersed work teams have a need for clarity of direction, high levels of trust and a

culture of open communication, issues not dissimilar to the needs of non-geographically

dispersed teams. The challenge for team leaders of dispersed teams is to satisfy the

expectations of team members in the context of dispersed organizations.

Angles, Joaquin. (2007) examined and compared general ideas, themes, concepts, and

understandings of the phenomenon of shared leadership in self-managed work teams.

Twenty leaders from one magnet hospital and one telecommunications company were

interviewed to assess their lived experiences of shared leadership. Horizonalization,

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reduction, and imaginative variation techniques, as well as textural and structural

descriptions, were applied to produce clear common and non-common themes. Six major

themes emerged: (a) empowerment, (b) collaboration, (c) decision-making, (d)

knowledge sharing, (e) increase team efficiency, and (f) improve team productivity.

Other common themes that emerged from the study and have applicability for future

research included (a) environment of trust, (b) sense of ownership, (c) corporate culture,

(d) employee satisfaction, and (e) communication. Two non-common themes were (a)

morale and (b) advancement opportunities. The study revealed that shared leadership

provided teams with certain levels of empowerment, collaboration, and decision-making,

and this can promote self-managed work teameffectiveness. The study also revealed that

lack of trust and culture could impact shared leadership and the effectiveness of self-

managed work teams.

Absenteeism Studies:

Simons, Elinor; Hwang, Syni-An; Fitzgerald, Edward F, PhD; Kielb, Christine;Lin, and

Shao. (2010). Investigated Upstate New York school building conditions and examined

the associations between school absenteeism and building condition problems. We

merged data from the 2005 Building Condition Survey of Upstate New York schools

with (2005) New York State Education Department student absenteeism data at the

individual school level and evaluated associations between building conditions

and absenteeism at or above the 90th percentile. After adjustment for confounders,

student absenteeism was associated with visible mold (odds ratio [OR]=2.22; 95%

confidence interval [CI]=1.34, 3.68), humidity (OR=3.07; 95% CI=1.37, 6.89), poor

ventilation (OR=3.10; 95% CI=1.79, 5.37), vermin (OR=2.23; 95% CI=1.32, 3.76), 6 or

more individual building condition problems (OR=2.97; 95% CI=1.84, 4.79), and

building system or structural problems related to these conditions. Schools in lower

socioeconomic districts and schools attended by younger students showed the strongest

associations between poor building conditions and absenteeism. Authors found

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associations between student absenteeism and adverse school building conditions. Future

studies should confirm these findings and prioritize strategies for school condition

improvements.

Parthan, Anju and Gopalan. (2005). Observed that back pain is one of the most common

and challenging problems in primary care. The economic burden due to back pain is of

concern to employers, insurance agencies, policy decision makers and treatment decision

makers. The objective of this study was to assess the impact of back pain on absenteeism,

productivity loss, and direct healthcare costs using the Medical Expenditure Panel Survey

(MEPS). The predictors of absenteeism in individuals who experienced back pain were

identified using Zero-inflated negative binomial regression. In 2000, the one-year period

prevalence of back pain in individuals between 18 and 65 years of age was 11.1 percent.

About 16.3 percent of the individuals who were employed and who reported back pain

experienced back pain due to work-related injuries. Ethnicity and union contract were

identified as significant predictors of likelihood of absenteeism in individuals who

experienced back pain. The significant predictors of absenteeism rate were perceived

overall health status due to back pain, and ethnicity. The mean number of absenteeism

days due to back pain was estimated to be six days. In 2000, a total of nine

million absenteeism days were due to back pain. The total productivity loss due to back

pain-related absenteeism was estimated to be $3.6 billion and the total direct healthcare

costs was estimated to be $14 billion. The average productivity loss due to back pain

related absenteeism was estimated to be $305 per person and the annual per-capita direct

healthcare cost due to back pain was $730. Estimating the impact of back pain in a

nationally representative sample will provide valuable information to the employers,

healthcare insurers, and Workers' Compensation providers in terms of allocating fund for

individuals with back pain to return to work as soon as possible.

Pfeifer, and Christian. (2010). Seeked to analyse to what extent absolute wage levels,

relative wages compared with colleagues, and the position in a firm's hierarchy affect

workers' absenteeism behaviour. The author uses personnel data of a large German

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company from January 1999 to December 2005. The data set contains 62,774 monthly

observations of 1,187 full-time white-collar workers. Probit and Tobit models for

individual monthly absenteeism are estimated. Absenteeism is negatively correlated with

absolute wages, relative wages, and hierarchical levels, which is in line with the paper's

hypotheses. Moreover, the results indicate that a positive relative wage has a stronger

impact than a negative relative wage, which gives rise to the issue of unequal wage

structures. The findings point to the relevance of interdependent preferences and status in

utility functions. From the non-linear relationship between relative wages

and absenteeism it follows that an unequal wage structure has the benefit that relatively

better paid workers are absent less frequently, while the costs of higher absenteeism of

workers at the lower tail of the wage distribution are rather low. The results show that not

only the absolute wage level but also status-related factors (e.g. relative wage,

hierarchical level) affect employees' work effort and that unequal wage structures can be

efficient to some degree. The author provides "real world" evidence from scarce

personnel data for the importance of interdependent preferences and status. Furthermore,

the non-linear relationship between relative wages and absenteeism is examined.

Addae, Helena M; Cullen, and John B. (2005). Stated that Absenteeism is a costly

behavior that occurs around the world. However, in spite of the growth in cross-cultural

research in organizational research and in global businesses, very few studies have

examined absenteeism from a cross-cultural perspective. The author further examined the

effect of national culture on absenteeism using a sample of 17,842 respondents from 24

countries. Based on Hofstede's cultural dimensions, we postulated that uncertainty

avoidance, power distance, individualism, and masculinity will be negatively related

to absenteeism. Similarly, based on the globe cultural dimensions, we proposed that

there will be positive relationships between societal collectivism and assertiveness,

and absenteeism. However, we hypothesized that in-group collectivism and gender

egalitarianism will have negative relationships with absenteeism. To test cross-level

hypotheses, the authors used Hierarchical Linear Modeling. Our results indicated that

with the exception of uncertainty avoidance and assertiveness, all hypothesized

relationships were supported. Consistent findings were obtained for the common

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elements of both the Hofstede and globe cultural dimensions, demonstrating convergence

of our findings. We offer theoretical and practical implications of our study and suggest

future research directions in the culture-absenteeism link.

Keller, and Joseph A. (2008). Observed that Employee absenteeism is a problem that has

plagued supervisors and managers for a long time. Much research has been conducted

regarding the factors that relate to and contribute to absenteeism. This study was based

upon a quantitative methodology for surveying employees that work for an anonymous

U.S.-based organization with hundreds of service employees to identify the factors that

contribute to absenteeism. The author surveyed 367 service employees that work for a

U.S.-based manufacturer. The subject organization had two divisions, each with their

own service organization. An electronic survey instrument was used to collect data from

participants to measure factors that relate absenteeism. Bivariate correlation analyses, t -

tests, and ANOVAs were used for hypothesis testing. The author found mixed results in

correlations between absenteeism and the variables employed. The findings of the study

are expected to help organizational leaders manage and control absenteeism.

Campbell, Susan; Bird, Douglas. (2005) suggested that worker health and productivity

are related and that effective administration of programs promoting health will positively

influence absenteeism as a proxy measurement of productivity. The purpose of

this study was to determine if participation in an employer-sponsored health promotion

program is related to absenteeism. The investigation tested the hypothesized relationship

between employer-sponsored health promotion program participation and absenteeism in

a nonprofit organizational setting. The study methodology utilized a causal-comparative

design comprised of secondary data gathered by a research and education nonprofit

organization with locations in Texas and Colorado. Participation in the employer-

sponsored health promotion program was used to predict absenteeism. The results of

this study revealed, for male employees in a research and education nonprofit

organization, as health promotion program participation increased, the expected number

of absence hours decreased. For women, however, health promotion program

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participation was not found to predict the expected number of absence hours. Health

promotion program participation group did not appear to predict absence episodes for

men or women.

Satterwhite, Monica; Bungum, Timothy J (2000) evaluated the relationship of varying

body mass index and average annual health care costs and absenteeism in a group of 524

municipal employees. The 269 employees with health care claims and the 487 employees

with attendance records were categorized into five different BMI categories based on

self-reported weight and height. Findings from the study suggest that as BMI increases,

average annual health care costs and average annual absenteeism increase. However,

BMI was only significantly related to absenteeism. The study also found significant

relationships between education and health care costs and absenteeism. No significant

differences for health care costs or absenteeism were found based on race, age, gender,

wellness center membership, or smoking

Lainhart, William; Lindstrom, Heather; Ram, Pavani; Yu, Jihnhee. (2011) observed

notable increases of influenza-like illness (ILI) in school-age children and since these

young people were uniquely susceptible to infection with the virus,

school absenteeism was hypothesized to be an indicator of pandemic influenza activity in

the community. The aim of this study was to determine whether absenteeism was

associated with community circulation of influenza during a pandemic and whether this

relationship differed among subgroups of the study population. Local school districts

collected information on all-cause absenteeism and submitted data daily to the Erie

County Department of Health. This study focuses specifically on weeks 40 through 51 of

2009 (10/5 through 12/25/2009), which correspond to the second wave of the influenza

pandemic. Cross-correlation analyses were conducted to determine the lag or lead time

that maximally correlated weekly average absenteeism rates, in all school districts, or in

subgroups, with community-level indicators of pandemic influenza activity. Mean

weekly absenteeism rates had the greatest correlation with community-level indicators of

pandemic influenza activity with a lead time of one week, suggesting that all-

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cause absenteeism from a given week predicted pandemic influenza activity one week

later. In subgroup analysis, elementary and middle school absenteeism were more

strongly correlated with pandemic influenza activity than was high school absenteeism.

Therefore, future school-based surveillance efforts for pandemic influenza could focus

solely on absenteeism of younger schoolchildren to reduce the burden associated with the

surveillance system. We conclude that a school-based surveillance system using all-

cause absenteeism was an appropriate surveillance tool during the 2009 influenza

pandemic.

Attrition Studies of Organization

Breiter, Deborah; Vannucci, Cynthia; Kline, Sheryl; Gregory, and Susan.(2004).

Explained that attrition provisions in group-business contracts have become increasingly

problematic for meeting planners in recent years because meeting participants and

exhibitors increasingly seek their own accommodations outside room blocks, particularly

when they find low-price rooms via Web sites. A 2002 survey of 143 meeting planners

(primarily working with associations) found that most signed contracts

containing attrition provisions for the largest meeting they held in 2001, but only one-

third of those who came up short on room-block guarantees were billed for attrition.

Many planners negotiated some form of settlement. Rather than have attrition continue to

be a point of contention for hotels and meeting planners, a better approach might be for

hotel sales managers and meeting planners to work together to formulate

reasonable attrition policies. From the meeting planners' viewpoint, this would include

receiving credit for the business that the meeting brings to the hotel, whether in the room

block or through other sales channels.

Ziliak, James P; Kniesner, and Thomas J. (1998). Examined the importance of possible

nonrandom attrition to an econometric model of life cycle labor supply using both a Wald

test comparing attriters to non attriters and variable addition tests based on formal models

of attrition. Estimates using the Panel Study of Income Dynamics show that

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nonrandom attrition is of little concern when estimating prime-age male labor supply

because the effect of attrition is absorbed into fixed effects in labor supply. The wage

measure and instrument set have much larger effects on the estimated labor supply

function of prime-age men than how one adjusts for panel attrition.

Adhikari, and Atanu.(2009). Explained that today, attrition is one of the important issues

in an organization. Employees' liking for an organization depends on several factors. The

author examines the relationship between the high attrition rate in the Indian Information

Technology (IT) and Information Technology Enabled Services (ITES) sector. The data

is collected from several IT companies and analyzed using multivariate techniques.

Principal component analysis has been performed to find the underlying dimensions for

job attrition. Multiple regressions are then used to examine the significant for the high

rate of job switching among its employees. Based on this, the author has also segmented

the people into three categories.

Abowd, John M; Crepon, Bruno; Kramarz, and Francis. (2001). studied the effects of

the attrition of firms from longitudinal samples on the estimates of dynamic labor

demand models. The reasons for attrition from business-based longitudinal samples are

extremely varied and are related to both the economic activity of the business and the

methods of acquiring sampling frame information for those businesses.

Cooke, Donna K; Sims, Randi L; Peyrefitte, and Joseph. (1995). Stated that although

much is known about undergraduate attrition in the United States, very little is known

about graduate student attrition. The differences between undergraduate and graduate

students make generalizations of undergraduate research difficult to apply to the graduate

population (Malaney, (1987). Some of the differences between the students include age,

career stage, personal life circumstances, reasons for pursuing an education, and finances

(Iovacchini, Hall, & Hengstler, (1985). According to the author one reason for the

plethora of research on undergraduate attrition (however dated) is the sheer size of the

problem due to the number of students involved (cf. Pantages & Creedon, (1978). The

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number of dropouts affects the operations and finances of universities and has important

implications for public policy. It affects the demand for and use of university services.

purpose of the authors in this research was to identify a set of personal variables that

predict graduate student attrition, emphasizing those that universities can influence (i.e.,

to determine avoidable dropouts). Even though factors such as a need to relocate or a low

grade point average (GPA) may be very strong predictors of attrition, they often are not

evident 12 or more months before students actually quit. It is plausible, however, to

assume that there are some personal variables (e.g., attitudes) that may be associated

with attrition. Authors intent was to identify some of the more important variables.

Rhodes, Anthony; Hayslip, Bert. (2005) attempted to illuminate the problem

of attrition in longitudinal research by estimating the mean effect sizes for participant loss

across 57 studies published in 13 prestigious journals which regularly use older

participants. Results estimate overall attrition to be around 34% of the original sample.

The subsequent break down of attrition into its subtypes yield mean effect sizes for

attrition due to Refusal (8%), Loss of contact (10%), Illness (6%), and Death (14%)

in studies sampling from adults 50 years or older. Analyses were then conducted via

meta-analytic one-way ANOVA and weighted regression to identify possible moderators

of overall attrition and their four subtypes.

Amity, Frederica; Walker, Alexis J.; Richards, Leslie N. (2011) used interview

transcripts to find clues to attrition from a longitudinal study among nonpartnered,

rurally-located, poor mothers, a generally vulnerable population with characteristics

commonly associated with attrition (low-income, low levels of educational attainment,

and rural location). Drawing on Rural Families Speak data, the author used the number of

family members and friends living in close proximity to mothers, and mothers'

descriptions of their family members and friends (including boyfriends) and the quality of

their relationships with these individuals to predict whether mothers would drop out of

the study after Wave 1 ( attriters ), stay in the study through Wave 3 despite moving

(continuer-movers ), or stay in the study through Wave 3 while remaining in place

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( continuer-nonmovers ). Analyzing data through the lens of the affect theory of social

exchange, the author was unable to consistently predict the groups to which mothers

belonged. Trends supported the use of affect theory of social exchange as preferable to

classic social exchange theory in predicting outcomes with this sample. In ad hoc

investigations, the author found that attriters andcontinuer-movers differed significantly

with respect to age and education, and that these two demographic variables were useful

in predicting outcomes for these two groups. The findings also revealed the importance of

establishing consistent protocols in longitudinal research, particularly when data are

collected from widely dispersed geographic locations. The findings led the researcher to

recommend using a more contextual framework and a mixed methods approach to

studying attrition and informal social support. The author recommends that future, similar

research include interviews of continuers to learn what factors contribute to their

decisions to stay in longitudinal studies, and that adequate funding for the

implementation and oversight of consistent protocols be provided.

Kang, Sang-Gu; O'Grady, William. (2011) investigated English attrition in three Korean-

English bilingual children who had returned to Korea after a two-year stay in the U.S.

Although the children had lived in the U.S. for two years, individual English proficiency

varied, perhaps due to factors such as age and environment, resulting in different paths

and rates of attrition. Repeated experiments on the children's production and

comprehension of English articles, irregular past tense verbs, passives, and relative

clauses were conducted. Results on these four phenomena as well as observation of code

switching and of the use of null subjects are reported. The findings suggest that

the attrition is first detected in the speakers' general processing skills in production. Thus,

the experiments that are targeted to examine a few aspects of English grammar are likely

to produce meaningful results only after attrition is detected in production errors.

The contribution of this study is greater in the area of methodology rather than in the

results themselves. Collecting data at different points in time repeatedly using the same

material appeared to offer an effective measure of attrition. In addition, it seems clear that

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Korean-English bilinguals' English attrition is not likely to occur within a short period

because of the highly valued status of English in Korea.

The scope of attrition research is much wider than mere descriptions of the phenomenon.

From the researcher's stance, issues such as theory and methodology can be interesting.

However, from the attriters' and their parents' viewpoint, pedagogies customized for

returnees could well be the most meaningful contribution of attrition research. The first

step for researchers is to describe the attrition phenomenon and establish related theories.

Then, based on these foundations, pedagogies that will benefit those trying to

evade attrition can be developed. I hope that by drawing on the results described in this

dissertation, this research helps to reveal the perils and prospects of attrition research and

opens the door to future progress in this area.

Research Gap

No study on Impact of Organizational Behaviour on Employees Behavior in

Pharmaceutical Companies in selected locations of Mumbai, Pune, Nasik has

been done till date. Its being found that studies focus on individual aspects of

Organizational behaviour such as Teams and Teams work, Job satisfaction but

none of the studies have focused on the aspects related to phamrmaceutical

companies

No studies on Supervisory style, Leadership style, Internal Communication

System, Implementation of evaluation and appraisal system in Pharmaceutical

companies in selected locations of Mumbai, Pune, Nasik has been done till date.

The researcher has found that none of the studies have focused on pharmaceutical

companies related to the aspects of supervisory style, leadership style, internal

communication system, and so on.

The researcher has found that even recent studies on Organizational behaviour

don’t focus on employees behavior and organizational behaviour together and

mostly studies are focusing on all sectors other than pharmaceutical sector. Hence

this present study under taken by the researcher would bridge the gap between the

126

past and recent studies. This present study undertaken would primarily foucs on

employees of pharmaceutical companies.

127

CHAPTER 3

SCOPE OF THE STUDY,

OBJECTIVES OF THE STUDY,

HYPOTHESIS OF THE STUDY

128

CHAPTER 3

SCOPE OF THE STUDY

This study focuses on Organizational Behavior and its impact on Employees Behavior in

Pharmaceutical Companies in selected locations of Mumbai, Pune and Nasik. Important

dimensions such as Internal Communication System, Organizational Structure, Teams

and Team Work, Power and Politics, Leadership, Supervisory style, Implementation of

Evaluation and Performance Appraisal are considered for analyzing Organizational

Behavior in Pharmaceutical companies in selected areas of Mumbai, Pune and Nasik.

Dimensions such as Job satisfaction, Creativity Stimulants, Absenteeism, and Attrition

Rate are considered for analyzing Pharmaceutical Companies Employees Behavior. The

study includes Small scale Industries, Large Scale Industries, as well as Medium Scale

Pharmaceutical Companies in Selected areas of Mumbai, Pune and Nasik.

OBJECTIVES AND HYPOTHESIS

Work behaviour, according to Stephen (2004), is a term used to describe

describe behaviour one uses in the workplace and is normally formal compared to other

types of human behaviour and this varies from one profession to the other. The world is

looking forward to high performance Organizations that would provide high job

satisfaction to their employees and would also cherish excellence and effectiveness. This

could be achieved if we could develop organizational behaviour (OB). In the light of the

above observation, present research deals on the following.

129

The research objectives are:

To study the effect of organizational behaviour on size of organization

To study the significant difference of organizational behaviour in different cities

.

To study the association between organizational behaviour and employees

behavior.

To study the association between leadership of organization and job satisfaction

of employees.

To study the association between job satisfaction and demographic factors of

employees.

To study the impact of political environment on employees satisfaction.

To study the effect of Evaluation and appraisal of employees on employees

satisfaction.

To study the effect of ethics and social responsibilities of organization on

employees satisfaction.

To study the effect of internal communication system of organization on

employees behaviour.

To study the significant difference among various dimensions of organizational

behaviour.

130

STATEMENT OF HYPOTHESES

H01: Organizational behavior w.r.t to pharmaceutical companies has no impact of size of

organization.

H11: Organizational behavior w.r.t to pharmaceutical companies has impact of size of

organization.

H02: There is no significant difference between organizational behavior w.r.t to

pharmaceutical companies in different cities. ( Mumbai, Pune, Nasik)

H12: There is significant difference between organizational behavior w.r.t to

pharmaceutical companies in different cities. ( Mumbai, Pune, Nasik)

H03: There is no association between organizational behavior and employee’s

satisfaction.

H13: There is association between organizational behavior and employee’s satisfaction.

H04: There is no association between Leadership of Organisation and job satisfaction of

employees.

H14: There is association between Leadership of Organisation and job satisfaction of

employees.

H05: There is no association between job satisfaction and demographic factor of

employees.

H15:. There is association between job satisfaction and demographic factor of employees.

H06: There is no impact of political environment on employee’s satisfaction.

H16: There is impact of political environment employee’s satisfaction.

H07: Evaluation and appraisal of employee does not improved employee’s satisfaction.

H17: Evaluation and appraisal of employee does improved employee’s satisfaction

131

H08: Employees satisfaction is not affected by ethics and social responsibilities of the

organization.

H18: Employees satisfaction is affected by ethics and social responsibilities of the

organization.

H09: Internal communication system of organization has no effect on employee’s

behavior.

H19: Internal communication system of organization has effect on employee’s behavior.

H010: There is no significant difference among various dimensions of organizational

behavior.

H10: There is significant difference among various dimensions of organizational

behavior.

132

CHAPTER 4

RESEARCH METHODOLOGY

133

CHAPTER 4

RESEARCH METHODOLOGY

This study embraces both qualitative and quantitative research approaches.

DESCRIPTIVE SURVEY:

Review of literature and other available information from various published and

unpublished reports, journals, periodicals, books, newspapers, etc. (including databases

like EBSCO, Pro-quest, India Business Insight Database and others).

FIELD SURVEY

Research Instruments

The research instruments used for collecting primary data were –

Questionnaire and Interviews.

Measurement is done on 5 point scale

The questionnaire comprised of questions pertaining to:

General Information

Information related to type of industry

Information related to Organizational Structure

Information related to leadership

Information related to Political Environment

Information related to implementation of evaluation and appraisal

Information related to supervisory style

Information related to internal communication system

Information related to creativity stimulants

Information related to employees behaviour and satisfaction

Information related to ethics & Social responsibility

Information related to power & politics

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Information related to teams and team work

Information related to Absenteeism

Information related to Attrition rate

PILOT TEST:

It is always desirable to conduct a pilot test before administering a questionnaire to the

sample. The pilot test has a role in ensuring that the instrument as a whole functions well

without too much variations, which would be difficult to measure.

Since the study involves dimensions of organizational behviour and its impact on

employees behaviour in pharmaceutical companies. A proper review of the questionnaire

was made and a preliminary examination of the questionnaire was conducted before data

was collected by face to face interview of the employees. The purpose of the test was;

1. To identify any scales those were difficult to comprehend or had redundant

items and revise them prior to conducting the interview of employees.

2. For reliability testing

3. For testing the correctness of the scales of measurement and validity evaluation

4. Calculating the variability of population under survey

5. Refine the questions to cover the indirect questions covering the purpose of data

collection at the same time not shooting direct questions to the employees.

Employees of small scale pharmaceutical companies participated in the phase I of pilot

test. Since the questionnaire was addressed at employees of Small- Scale companies,

Large-scale companies, as well as Medium Scale companies of Pharmaceutical Sector, it

was necessary to test it to a similar kind of group with intellect and maturity levels to

answer such questions. Predominantly the pilot test was conducted on employees of

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small-scale companies of pharmaceutical sector were tested before finalization of the

questionnaire for relevant data collection.

Suggestions received during the pilot study included framing of the questions which

would be easy to understand by the employees of various pharmaceutical companies. The

employees wanted the questions to be specific for the relevant information to be provided

by them. According to the suggestions and results, the initial pool of items was revised

and some corrections made in the final questionnaire. After ensuring the validity and

reliability were adequate, several categories were reduced to 10 groups.

SAMPLING DESIGN

The study has been conducted taking 3 cities from Maharashtra based on their CCA,

HRA. The following list classifies cities based on their CCA and HRA statuses.

Table 4.1 classifies cities based on their CCA and HRA statuses

CCA classification HRA classification City

A-1 A-1 Mumbai

A A Pune

B-1 B-1 Nashik

The table 4.2 below shows the details of size of the Companies, Total Number of

Employees, and Total number of sample selected

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Pune

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SSI – Small scale Industry

LS- Large scale Industry

MED – Medium scale Industry

According to the formula – SS= Z2*(p)*(1-p) the sample size from each city required is

C2

Where – Z = Z value (eg: 1.96 for 95% confidence)

P = Percentage picking a choice, expressed as decimal (.5 used for sample size

needed)

C = Confidence interval expressed as decimal (eg : .04 = ± 4)

The total number of sample is 1000 through cluster sampling.

TABULATION AND STATISTICAL ANALYSIS OF DATA:

The responses observed from each of the items in the questionnaire were scored and

tabulated into a master sheet. The statistical tools included Chi-square, T-test, Karl

person Co-relation regression, and ANOVA has been applied to draw logical

conclusions. The analysis was done using SPSS.

INTERPRETATION AND REPORT WRITING:

The analyzed data were finally interpreted to draw the conclusions and reported with the

objective of the study in view.

City Company

Type

Total number of

employees

Sample size

Mumbai SSI/MED/LS 14073 600

Pune SSI/MED 8246 300

Nashik SSI/MED 208 100

Total 1000

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LIMITATION OF THE STUDY:

The study is restricted to only selected locations of Mumbai, Pune, and Nasik.

The researcher has used selected Pharmaceutical companies in Mumbai, Pune and

Nasik for survey this may be inadequate to generalize the results on the impact of

organizational behavior on employees behavior.

MNC are not included in the study as part of the research only SSI, LS, and MED

scale Pharmaceutical Companies are included.

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CHAPTER 5

ORGANIZATIONAL BEHAVIOUR

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CHAPTER 5

ORGANIZATIONAL BEHAVIOUR

An organization is defined as a collection of people who work together to achieve a wide

variety of goals. Organizational behavior is defined as the actions and attitudes of people

in organizations. The field of organizational behavior (OB) covers the body of knowledge

derived from these actions and attitudes. It can help managers understand the complexity

within organizations, identify problems, determine the best ways to correct them, and

establish whether the changes would make a significant difference.

Organizational behavior (OB) is the study of human behavior in organizational settings,

how human behavior interacts with the organization, and the organization itself.

Although we can focus on any one of these three areas independently, we must remember

that all three are ultimately connected and necessary for a comprehensive understanding

of organizational behavior. For example, we can study individual behavior (such as the

behavior of a company’s CEO or of one of its employees) without explicitly considering

the organization. But because the organization influences and is influenced by the

individual, we cannot fully understand the individual’s behavior without knowing

something about the organization. Similarly, we can study an organization without

focusing specifically on each individual within it. But again, we are looking at only one

piece of the puzzle. Eventually, we must consider the other pieces to understand the

whole.

An organization, of course, exists before a particular person joins it and continues to exist

long after he or she has left. Therefore, the organization itself represents a crucial

perspective from which to view organizational behavior. For instance, the consultant

studying turnover would also need to study the structure and culture of Texas

Instruments. An understanding of factors such as the performance evaluation and reward

systems, the decision-making and communication patterns, and the design of the firm

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itself can provide additional insight into why some people decide to stay while others

elect to leave.

A primary goal of organizational behavior is to describe relationships between two or

more behavioral variables. The theories and concepts of the field, for example,

cannot predict with certainty that changing a specific set of workplace variables 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 organization,

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 satisfied people see their jobs differently from unsatisfied people, or

if both satisfaction and perceptions of working conditions 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.

Organizational behavior is descriptive for several reasons: the immaturity of the field, the

complexities inherent in studying human behavior, and the lack of valid, reliable, and

accepted definitions and measures. Whether the field will ever be able to make definitive

predictions and prescriptions is still an open question. But the value of studying

organizational behavior nonetheless is firmly established. Because behavioral processes

pervade most managerial functions and roles, and because the work of organizations is

done primarily by people, the knowledge and understanding gained from the field can

help managers in significant ways.

Study of organizational behaviour is very interesting. Organizational studies encompass

the study of organizations from multiple viewpoints, methods, and levels of analysis. For

instance, one textbook divides these multiple viewpoints into three perspectives: modern,

symbolic, and postmodern. Another traditional distinction, present especially in

American academia, is between the study of "micro" organizational behaviour which

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refers to individual and group dynamics in an organizational setting and "macro"

strategic management and organizational theory which studies whole organizations and

industries, how they adapt, and the strategies, structures and contingencies that guide

them. To this distinction, some scholars have added an interest in "meso" scale structures

- power, culture, and the networks of individuals and i.e. units in organizations and

"field" level analysis which study how whole populations of organizations interact.

Whenever people interact in organizations, many factors come into play. Modern

organizational studies attempt to understand and model these factors. Like all modernist

social sciences, organizational studies seek to control, predict, and explain. There is some

controversy over the ethics of controlling workers' behavior, as well as the manner in

which workers are treated (see Taylor's scientific management approach compared to the

human relations movement of the 1940s). As such, organizational behaviour or OB (and

its cousin, Industrial psychology) have at times been accused of being the scientific tool

of the powerful. Those accusations notwithstanding, OB can play a major role

in organizational development, enhancing organizational performance, as well as

individual and group performance/satisfaction/commitment.

One of the main goals of organizational theorists is, according to Simms (1994) "to

revitalize organizational theory and develop a better conceptualization of organizational

life." An organizational theorist should carefully consider levels assumptions being made

in theory, and is concerned to help managers and administrators.

It is the art on the part of manager to understand, describe, forecast and modify

individual behaviour. Lot of studies have been undertaken in the field of organizational

behaviour and vast literature is available,which need to be studied by practictioners in the

field of managing human resources.

http://en.wikipedia.org/wiki/Group_dynamics

http://en.wikipedia.org/wiki/Control_(management)

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http://en.wikipedia.org/wiki/Explain

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Various models and research instruments are available to investigate human behaviour.

Various fields like psychology, social psychology, anthropology, sociology, politics,

economics, and medical sciences have contributed to the field of organization behaviour.

Various models in the above fields have enriched the study of organization behaviour. It

is the field of study that investigates the impact on individuals, groups and organizational

structure have on individual behaviour so that the knowledge so achieved can be suitably

modified and applied for organizational effectiveness.

The study of organizational behaviour relates to the study of attitude, perception,

learning, values at individual level. The study is undertaken pertaining to managing

stress, conflicts, intergroup behaviour, decision making at group level. Management of

change, development of organizational culture, designing and redesigning of jobs, and

various organizational development strategies are required to be undertaken by leaders

for organizational effectiveness. It is the responsibility of the managers to evolve

appropriate strategies to study organizational components.

The first component is people. The study of organizational behaviour involves identifying

need spectrum of the people, managing interpersonal relationship, understanding of

individual objectives and co-relating organizational strategies accordingly.

The second component is understanding of organizational structure and its modification

based on the need of the hour. Manager should decide upon the nature of structure and

ensure unity of command, number of levels that may be required for effective comma and

and control. Communication, delegation of authority, well defined policies, rules,

regulation, systems, procedures and processes.

Introduction of latest technology is an essential part of organizational development that

should be taken care of by the manager responsible for running the organization. Jobs

should be allotted to the individual based on the aptitude and the processes must be

compatible with the technology being used. One of the most important components is

environment. While internal environment relates to various personnel policies and

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corresponding managerial actions, the external environment relates to cultural, social,

legal, and governmental rules and regulations that should be taken care of.

A technological change has made it imperative on the part of managers that they should

take care of employees and meet their social expectations so that organizational goals can

be achieved. The present study on Organizational Behaviour depends on dimensions such

as Organizational structure, Leadership, Political environment, Implementation of

evaluation and performance appraisal, Supervisory style, internal communication system,

Power and Politics, Teams and teams work. The detailed description of these dimensions

is given below

ORGANIZATIONAL STRUCTURE:

An organizational structure consists of activities such as task allocation, coordination and

supervision, which are directed towards the achievement of organizational aims. It can

also be considered as the viewing glass or perspective through which individuals see their

organization and its environment. Most organizations have hierarchical structures, but not

all. An organization can be structured in many different ways, depending on their

objectives. The structure of an organization will determine the modes in which it operates

and performs. Organizational structure allows the expressed allocation of responsibilities

for different functions and processes to different entities such as branch , department,

workgroup and individual.

Organizational structure affects organizational action in two big ways. First, it provides

the foundation on which standard operating procedures and routines rest. Second, it

determines which individuals get to participate in which decision-making processes, and

thus to what extent their views shape the organization’s actions. The set organizational

structure may not coincide with facts, evolving in operational action. Such divergence

decreases performance, when growing. E.g. a wrong organizational structure may hamper

cooperation and thus hinder the completion of orders in due time and within limits of

http://en.wikipedia.org/wiki/Hierarchical

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resources and budgets. Organizational structures shall be adaptive to process

requirements, aiming to optimize the ratio of effort and input to output.

HISTORY

Organizational structures developed from the ancient times of hunters and collectors in

tribal organizations through highly royal and clerical power structures to industrial

structures and today's post-industrial structures. As pointed out by Mohr (1982) the early

theorists of organizational structure, Taylor, Fayol, and Weber "saw the importance of

structure for effectiveness and efficiency and assumed without the slightest question that

whatever structure was needed, people could fashion accordingly.

Organizational structure was considered a matter of choice... When in the (1930s), the

rebellion began that came to be known as human relations theory, there was still not a

denial of the idea of structure as an artifact, but rather an advocacy of the creation of a

different sort of structure, one in which the needs, knowledge, and opinions of employees

might be given greater recognition." However, a different view arose in the (1960s),

suggesting that the organizational structure is "an externally caused phenomenon, an

outcome rather than an artifact." In the 21st century, organizational theorists such as Lim,

Griffiths, and Sambrook (2010) are once again proposing that organizational structure

development is very much dependent on the expression of the strategies and behavior of

the management and the workers as constrained by the power distribution between them,

and influenced by their environment and the outcome.

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ORGANIZATIONAL STRUCTURE TYPES

Pre-bureaucratic structures

Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure

is most common in smaller organizations and is best used to solve simple tasks. The

structure is totally centralized. The strategic leader makes all key decisions and most

communication is done by one on one conversations. It is particularly useful for new

(entrepreneurial) business as it enables the founder to control growth and development.

They are usually based on traditional domination or charismatic domination in the sense

of Max Weber's tripartite classification of authority Bureaucratic structures Weber (1948)

gives the analogy that “the fully developed bureaucratic mechanism compares with other

organizations exactly as does the machine compare with the non-mechanical modes of

production. Precision, speed, unambiguity, … strict subordination, reduction of friction

and of material and personal costs- these are raised to the optimum point in the strictly

bureaucratic administration.

Bureaucratic structures have a certain degree of standardization. They are better suited

for more complex or larger scale organizations, usually adopting a tall structure. The

tension between bureaucratic structures and non-bureaucratic is echoed in Burns and

Stalker's

distinctions between mechanistic and organic structures.The Weberian

characteristics of bureaucracy are clear defined roles and responsibilities and hierarchical

structure

Post-bureaucratic The term of post bureaucratic is used in two senses in the

organizational literature: one generic and one much more specific. In the generic sense

the term post bureaucratic is often used to describe a range of ideas developed since the

1980s that specifically contrast themselves with Weber's ideal type bureaucracy. This

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http://en.wikipedia.org/wiki/Traditional_domination

http://en.wikipedia.org/wiki/Charismatic_domination

http://en.wikipedia.org/wiki/Max_Weber

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http://en.wikipedia.org/wiki/Bureaucratic

http://en.wikipedia.org/wiki/Bureaucracy

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may include total quality management, and matrix management, amongst others. None of

these however has left behind the core tenets of Bureaucracy. Hierarchies still exist,

authority is still Weber's rational, legal type, and the organization is still rule bound.

Heckscher, arguing along these lines, describes them as cleaned up bureaucracies, rather

than a fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of

culture management at 'Tech' argued that 'the essence of bureaucratic control - the

formalisation, codification and enforcement of rules and regulations - does not change in

principle.....it shifts focus from organizational structure to the organization's culture'.

Another smaller group of theorists have developed the theory of the Post-Bureaucratic

Organization., provide a detailed discussion which attempts to describe an organization

that is fundamentally not bureaucratic. Charles Heckscher has developed an ideal type,

the post-bureaucratic organization, in which decisions are based on dialogue and

consensus rather than authority and command, the organization is a network rather than a

hierarchy, open at the boundaries (in direct contrast to culture management); there is an

emphasis on meta-decision making rules rather than decision making rules.

This sort of horizontal decision making by consensus model is often used in housing

cooperatives, other cooperatives and when running a non-profit or community

organization. It is used in order to encourage participation and help to empower people

who normally experience oppression in groups. Still other theorists are developing a

resurgence of interest in complexity theory and organizations, and have focused on how

simple structures can be used to engender organizational adaptations. For instance,

Miner et al. (2000) studied how simple structures could be used to generate

improvisational outcomes in product development. Their study makes links to simple

structures and improviser learning. Other scholars such as Jan Rivkin and Sigglekow,and

Nelson Repenning revive an older interest in how structure and strategy relate in

dynamic environments.

http://en.wikipedia.org/wiki/Total_quality_management

http://en.wikipedia.org/wiki/Matrix_management

http://en.wikipedia.org/wiki/Charles_Heckscher

http://en.wikipedia.org/wiki/Consensus

http://en.wikipedia.org/wiki/Housing_cooperatives

http://en.wikipedia.org/wiki/Housing_cooperatives

http://en.wikipedia.org/wiki/Cooperatives

http://en.wikipedia.org/wiki/Non-profit

http://en.wikipedia.org/wiki/Community_organization

http://en.wikipedia.org/wiki/Community_organization

http://en.wikipedia.org/wiki/Participation_(decision_making)

http://en.wikipedia.org/wiki/Empowerment

http://en.wikipedia.org/wiki/Oppression

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Functional structure Employees within the functional divisions of an organization tend

to perform a specialized set of tasks, for instance the engineering department would be

staffed only with software engineers. This leads to operational efficiencies within that

group. However it could also lead to a lack of communication between the functional

groups within an organization, making the organization slow and inflexible.

As a whole, a functional organization is best suited as a producer of standardized goods

and services at large volume and low cost. Coordination and specialization of tasks are

centralized in a functional structure, which makes producing a limited amount of

products or services efficient and predictable. Moreover, efficiencies can further be

realized as functional organizations integrate their activities vertically so that products are

sold and distributed quickly and at low cost. For instance, a small business could make

components used in production of its products instead of buying them. This benefits the

organization and employees faiths.

Divisional structure Also called a "product structure", the divisional structure groups

each organizational function into a division. Each division within a divisional structure

contains all the necessary resources and functions within it. Divisions can be categorized

from different points of view. One might make distinctions on a geographical basis (a US

division and an EU division, for example) or on product/service basis (different products

for different customers: households or companies). In another example, an

automobile company with a divisional structure might have one division for SUVs,

another division for subcompact cars, and another division for sedans. Each division may

have its own sales, engineering and marketing departments.

Matrix structure The matrix structure groups employees by both function and product.

This structure can combine the best of both separate structures. A matrix organization

frequently uses teams of employees to accomplish work, in order to take advantage of the

strengths, as well as make up for the weaknesses, of functional and decentralized forms.

http://en.wikipedia.org/wiki/Functional_organization

http://en.wikipedia.org/wiki/Company

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An example would be a company that produces two products, "product a" and "product

b". Using the matrix structure, this company would organize functions within the

company as follows: "product a" sales department, "product a" customer service

department, "product a" accounting, "product b" sales department, "product b" customer

service department, "product b" accounting department. Matrix structure is amongst the

purest of organizational structures, a simple lattice emulating order and regularity

demonstrated in nature.

Weak/Functional Matrix: A project manager with only limited authority is assigned to

oversee the cross- functional aspects of the project. The functional managers maintain

control over their resources and project areas.

Balanced/Functional Matrix: A project manager is assigned to oversee the project.

Power is shared equally between the project manager and the functional managers. It

brings the best aspects of functional and projectized organizations. However, this is the

most difficult system to maintain as the sharing power is delicate proposition.

Strong/Project Matrix: A project manager is primarily responsible for the project.

Functional managers provide technical expertise and assign resources as needed.Among

these matrixes, there is no best format; implementation success always depends on

organization's purpose and function.

Organizational circle: moving back to flat

The flat structure is common in small companies (enterprenerial start-ups, university spin

offs). As the company grows it becomes more complex and hierarchical, which leads to

an expanded structure, with more levels and departments.

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http://en.wikipedia.org/wiki/Project_manager

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Often, it would result in bureaucracy, the most prevalent structure in the past. It is still,

however, relevant in former Soviet Republics, China, and most governmental

organizations all over the world. Shell Group used to represent the typical bureaucracy:

top-heavy and hierarchical. It featured multiple levels of command and duplicate service

companies existing in different regions. All this made Shell apprehensive to market

changes, leading to its incapacity to grow and develop further. The failure of this

structure became the main reason for the company restructuring into a matrix.

In general, over the last decade, it has become increasingly clear that through the forces

of globalization, competition and more demanding customers, the structure of many

companies has become flatter, less hierarchical, more fluid and even virtual.

Team

One of the newest organizational structures developed in the 20th century is team. In

small businesses, the team structure can define the entire organization. Teams can be both

horizontal and vertical. While an organization is constituted as a set of people who

synergize individual competencies to achieve newer dimensions, the quality of

organizational structure revolves around the competencies of teams in totality. For

example, every one of the Whole Foods Market stores, the largest natural-foods grocer in

the US developing a focused strategy, is an autonomous profit centre composed of an

average of 10 self-managed teams, while team leaders in each store and each region are

also a team. Larger bureaucratic organizations can benefit from the flexibility of teams as

well. Xerox, Motorola, and DaimlerChrysler are all among the companies that actively

use teams to perform tasks.

Network

Another modern structure is network. While business giants risk becoming too clumsy to

proact (such as), act and react efficiently, the new network organizations contract out any

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http://en.wikipedia.org/wiki/Shell_Group

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http://en.wikipedia.org/wiki/Motorola

http://en.wikipedia.org/wiki/DaimlerChrysler

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business function that can be done better or more cheaply. In essence, managers in

network structures spend most of their time coordinating and controlling external

relations, usually by electronic means.

Virtual

A special form of boundaryless organization is virtual. Hedberg, Dahlgren, Hansson, and

Olve (1999) consider the virtual organization as not physically existing as such, but

enabled by software to exist. The virtual organization exists within a network of

alliances, using the Internet. This means while the core of the organization can be small

but still the company can operate globally be a market leader in its niche. According to

Anderson, because of the unlimited shelf space of the Web, the cost of reaching niche

goods is falling dramatically. Although none sell in huge numbers, there are so many

niche products that collectively they make a significant profit, and that is what made

highly innovative Amazon.com so successful.

Figure 5.1 Hierarchy-Community Phenotype Model of Organizational Structure

Hierarchy-Community Phenotype Model of Organizational Structure

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In the 21st century, even though most, if not all, organizations are not of a pure

hierarchical structure, many managers are still blind-sided to the existence of the flat

community structure within their organizations.

The business firm is no longer just a place where people come to work. For most of the

employees, the firm confers on them that sense of belonging and identity- the firm has

become their “village”, their community.[26]

The business firm of the 21st century is not

just a hierarchy which ensures maximum efficiency and profit; it is also the community

where people belong to and grow together- where their affective and innovative needs are

met.

Lim, Griffiths, and Sambrook (2010) developed the Hierarchy-Community Phenotype

Model of Organizational Structure borrowing from the concept of Phenotype from

genetics. "A phenotype refers to the observable characteristics of an organism. It results

from the expression of an organism’s genes and the influence of the environment. The

expression of an organism’s genes is usually determined by pairs of alleles. Alleles are

different forms of a gene. In our model, each employee’s formal, hierarchical

participation and informal, community participation within the organization, as

influenced by his or her environment, contributes to the overall observable characteristics

(phenotype) of the organization. In other words, just as all the pair of alleles within the

genetic material of an organism determines the physical characteristics of the organism,

the combined expressions of all the employees’ formal hierarchical and informal

community participation within an organization give rise to the organizational structure.

Due to the vast potentially different combination of the employees’ formal hierarchical

and informal community participation, each organization is therefore a unique phenotype

along a spectrum between a pure hierarchy and a pure community (flat) organizational

structure.

http://en.wikipedia.org/wiki/Organizational_structure#cite_note-25

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LEADERSHIP

The word leadership can refer to the process of leading, the concept of leading and those

entities that perform one or more acts of leading. In our day to day life, leadership can be

viewed as either actual or potential.

Actual leader gives guidance or direction, as in the phrase “the emperor has

provided satisfactory leadership”.

Potential leader has the capacity or ability to lead, as in the phrase “she could

have exercised effective leadership”, or as implies in the concept “born to lead”.

Leadership can have a formal aspect (as in most political or business leadership)or

an informal one (as in most friendships). The abstract “leadership” usually implies

that the entities doing the leading possess some “leadership skills” or

competencies; while the term “leading” suggests action of leading.

Several types of entities may provide or exhibit leadership, actual or potential.

Leadership emerges when an entity as “leader” contrives to receive deference

from other entities who become “followers”. The process of getting deference

can become competitive in that the emerging “leader” draws “followers” from

the factions of the prior or alternative “leaders”. In a democratic country, the

people retain sovereignty (popular sovereignty) but delegate day-to-day

administration and leadership to elected representatives.

Competence or perceived competence provides a possible basis for selecting

leadership elites from a broader pool of potential talent. Political lobbying may

prove necessary in electoral systems, but immediately demonstrated skill and

character may secure leadership in smaller groups such as a service agency.

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Many organizations and groups aim to identify, foster and promote what they see

as leadership potential or ability - especially among younger members of society.

The issues of succession planning or of legitimating a leader become important

when leadership (particularly individual leadership) might or must change due to

term-expiry, accident or senescence (growing old).

Scope of Leadership

One can govern oneself, or one can govern the whole earth. In between, we may

find leaders who operate primarily within families, bands, tribes, states, nations or

empires.

In addition to these, we also find, for example, religious leaders (potentially with

their own internal hierarchies), work-place leaders (executives, officers,

senior/upper mangers, middle managers, staff managers, line managers, team –

leaders, supervisors) and leaders of voluntary associations.

Believing that charisma and personality alone can work miracles, most leaders

operate within a structure of supporters and groups of executives who carry out

and monitor the expressed or filtered down will of the leader. This undercutting

the importance of leadership may serve as a reminder of the existence of the

follower. A more or less formal bureaucracy can promote an ordinary personality

as an entirely effective leader. Bureaucratic organizations can also raise

incompetent people to levels of leadership. These leaders may build coalitions and

alliances. Political parties abound with such leaders. Still others depend on

rapport with the masses: they labor on the actual work place or stand in the front-

line of battle, leading by example.

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Suggested Qualities of Leadership

Studies of leadership have suggested qualities that people often associate with

leadership. They include the following qualities.

Guiding others through providing a role model and through willingness to

serve others first.

Talent and technical/ specific skill at some task at hand.

Initiative and entrepreneurial drive

Charismatic inspiration attractiveness to others and the ability to leverage

this esteem to motivate others

Preoccupation with a role – a dedication that consumes much of leaders’

life - service to a cause.

A clear sense of purpose (or mission) - clear goals - focus - commitment

Results-orientation - directing every action towards a mission –

prioritizing activities to spend time where results most accrue.

Optimism – very few pessimists become leaders.

Rejection of determinism - belief in one’s ability to “make a difference”

Ability to encourage and nurture those that report to them – delegate in

such a way as people will grow

Role models - leaders may adopt a persona that encapsulates their mission

and lead by example

Self-knowledge (in non-bureaucratic structures)

Self-awareness - the ability to “lead” (as it were) one’s own self prior to

leading other selves similarly.

With regards to people and to projects, the ability to choose winners -

recognizing that, unlike with skills, one cannot (in general) teach attitude.

Note that “picking winners” ( “choosing winners” ) carries implications of

gamblers’ luck as well as of the capacity to take risks, but “true” leaders

like gamblers but unlike “false” leaders, base their decisions on realistic

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insight (and usually on many other factors partially derived from “real”

wisdom).

Understanding what others say, rather than listening to how they say

things - this could partly sum this quality up as “walking in someone

else’s shoes” ( to use a common cliché).

Situational leadership theory (Stodgdill 1957 ) proceeds from the

assumption that different situations call for different traits. According to

this group of theories, no single optimal psychographic profile of a leader

exists. It has been said that leadership behavior becomes a function not

only of the characteristics of the leader, but of the characteristics of

followers as well. Other situational leadership models introduce a variety

of variables. These variables include.

The nature of the task (structured or routine)

Organizational policies, climate and culture

The preferences of the leader’s superiors

The expectations of peers.

The reciprocal responses of followers

Thus s leadership is essentially about managing an organization on the basis of certain

individual and situational qualities of managers. But there are several variants of

leadership depending upon situation and kind of organization. An understanding of these

various categories will help the managers of Adult Learning Centers to run these centers

in an efficient way.

Leadership and Management

Some commentators (for example, Cogner (1992) link leadership closely with the idea of

management; some would even regard the two as synonymous. If one accepts this

premise, one can view leadership as:

centralized or decentralized

broad or focused

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decision – oriented or morale centered

intrinsic or derived from some authority

Any of the bipolar labels traditionally ascribed to management style could also apply to

leadership style. Hersey and Blanchard (1982) use this approach. They claim that

management merely consists of leadership applied to business situations; or in other

words: management forms a sub-set of the broader process of leadership. According to

Hersey and Blanchard (1982) , “ Leadership occurs any time one attempts to influence

the behavior of an individual or group, regardless of the reason. Management is a kind of

leadership in which the achievement of organizational goals is paramount”. However, a

clear distinction between management and leadership nevertheless prove useful. This

would allow for a reciprocal relationship between leadership and management, implying

that an effective manager should possess leadership skills, and an effective leader should

demonstrate management skills.

Zaleznik (1977) for example, delineated differences between leadership and m

management. He saw leaders inspiring visionaries, concerned about substance; while he

views managers as planners who have concerns with process. Bennis (1989) further

explicated a dichotomy between managers and leaders. He drew the following twelve

distinctions between the two groups.

Managers administer, leaders innovate.

Managers ask how and when, leaders ask what and why.

Managers focus on systems, leaders focus on people

Managers do things right, leaders do the right things

Managers maintain, leaders develop

Managers rely on control, leaders inspire trust

Managers have a short-term perspective, leaders have a longer- term perspective

Managers accept the status-quo, leaders challenge the status-quo

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Managers have an eye on the bottom line, leaders have an eye on the horizon

Managers imitate, leaders originate

Managers emulate the classic good soldier, leaders are their own person

Managers copy, leaders show originality.

POLITICAL ENVIRONMENT:

No matter how attractive the economic prospects of a particular country or region are,

doing business there might prove to be financially disastrous if the host governments

inflict(s) heavy financial penalties on a company or if unanticipated events in the political

arena lead to the loss of income-generating assets.

The political environment in which the firm operates (or plan to operate) will have a

significant impact on a company's international marketing activities. The greater the level

of involvement in a foreign markets, the greater the need to monitor the political climate

of the countries business is conducted. Changes in government often result in changes in

policy and attitudes towards foreign business. Bearing in mind that a foreign company

operates in a host country at the discretion of the government concerned, the government

can either encourage foreign activities by offering attractive opportunities for investment

and trade, or discourage its activities by imposing restrictions such as import quotas, etc.

An exporter that is continuously aware of shifts in government attitude, will be able to

adapt export marketing strategies accordingly.

Nearly all governments today play active roles in their countries' economies. Although

evident to a greater or lesser extent in most countries, government ownership of

economic activities is still prevalent in the former centrally planned economies, as well as

in certain developing countries which lack a sufficiently well developed private sector to

support a free market system.

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The implications of government ownership to a company marketing abroad might be that

certain sectors of the foreign market are the exclusive preserve of government enterprise

or that the company is obliged to sell directly to a state trading organisation. In either

case, the company's influence on the market is greatly reduced. Similarly, if an exporter

is seeking to establish a subsidiary in a country where there is a high degree of state

influence over the factors of production, the investor should bear in mind that marketing

activities in the country concerned may be restricted and that the so-called controllable

elements of the marketing mix will be less controllable.

Of primary concern to an exporter should be the stability of the target country's political

environment. A loss of confidence in this respect could lead to a company having to

reduce its operations in the market or to withdraw from the market altogether. One of the

surest indicators of political instability is a frequent change in regime. Although a change

in government need not be accompanied by violence, it often heralds a change in policy

towards business, particularly international business. Such a development could impact

harshly on a firm’s long- term international marketing programme.

Reflected in a government's attitudes and policies towards foreign business are its ideas

about how best to promote national interest in the light of the country's economic and

political resources and objectives. Foreign products and investment seen to be vital to the

growth and development of the economy often receive favourable treatment from the

government in the form of reduced tax, exemption from quotas, etc. On the other hand,

products considered by a government to be non-essential, undesirable, or a threat to local

industry are frequently subjected to a variety of import restrictions such as quotas and

tariffs. It is also important to be aware of the nature of the relationship between South

Africa and the foreign target market. This was a major consideration during South

Africa's political isolation. Fortunately, South Africa's international relations have

normalised and today South Africa is viewed very favourably, from a political

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perspective, by the rest of the world. The political environment is connected to the

international business environment through the concept of political risk.

Political Risk

Political risk can be defined as the impact of political change on the export firm’s

operations and decision-making process.

Political risk is determined differently for different companies, as not all of them will be

equally affected by political changes. For example, industries requiring heavy capital

investment are generally considered to be more vulnerable to political risk than those

requiring less capital investment. Vulnerability stems from the extent of capital invested

in the export market, e.g. capital-intensive extracting or energy-related businesses

operating in the foreign market are more vulnerable than manufacturing companies

exporting from a South African base.

Political risk is of a macro nature when politically inspired environmental changes affect

all foreign investment. It is of a micro nature when the environmental changes are

intended to affect only selected fields of business activity or foreign firms with specific

characteristics, (possibly by expropriation). Expropriation is the take-over of a foreign

firm located in a host country, by the host country's government.

All organisations doing business abroad should be aware of the fact that what they do

could be the object of some political action. Hence, they need to recognise that their

success or failure could depend on how well they cope with political decisions, and how

well they anticipate changes in political attitudes and policies.

IMPLIMENTATION OF EVALUATION AND APPRAISAL SYSTEM

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal

is measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does.

http://appraisals.naukrihub.com/

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Most companies have a formal performance appraisal system in which employee job

performance is rated on a regular basis, usually once a year. A good performance

appraisal system can greatly benefit an organization. It helps direct employee behavior

toward organizational goals by letting employees know what is expected of them, and it

yields I nformation for making employment decisions, such as those regarding pay raises,

promotions, and discharges.

Developing and implementing an effective system is no easy task, however. For instance,

one study found that a majority of companies—65 percent—are dissatisfied with their

performance appraisal systems. Analysts have found that a fairly low degree of reliability

and validity remains a major bug in most appraisal systems. Many such systems are met

with considerable resistance by those whose performance is being appraised, thus

hampering the possibilities for effectiveness. While accurate and informative appraisal

systems can be a major asset to a business, they are too often an unrealized goal.

There are three major steps in the performance appraisal process: identification,

measurement, and management. With identification, the behaviors necessary for

successful performance are determined. Measurement involves choosing the appropriate

instrument for appraisal and assessing performance. Management, which is the ultimate

goal, is the reinforcing of good performance and the correction of poor performance.

Each step is described below. Additionally, management by objectives, which involves

evaluating performance without a traditional performance appraisal, is described.

IDENTIFICATION

The organization must determine for each job family the skills and behaviors that are

necessary to achieve effective performance. The organization should identify dimensions,

which are broad aspects of performance. For instance, "quality of work" is a dimension

required in many jobs. To determine which dimensions are important to job performance,

the organization should rely on an accurate and up-to-date job analysis. Job descriptions

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written from job analyses should offer a detailed and valid picture of which job behaviors

are necessary for successful performance.

In the identification stage, the company must also choose who will rate employee

performance. Supervisors, peers, and the employees themselves may provide

performance ratings. In most instances, performance appraisals are the responsibility of

the immediate supervisor of an employee. Supervisors rate performance because they are

usually the ones most familiar with the employee's work. Additionally, appraisals serve

as management tools for supervisors, giving them a means to direct and monitor

employee behavior. Indeed, if supervisors are not allowed to make the appraisals, their

authority and control over their subordinates could be diminished.

While supervisory ratings can be quite valuable, some companies have added peer

appraisals to replace or supplement those given by the supervisor. Naturally, peers and

supervisors each view an individual's performance from different perspectives.

Supervisors usually possess greater information about job requirements and performance

outcomes. On the other hand, peers often see a different, more realistic view of the

employee's job performance because people often behave differently when the boss is

present. Using peer ratings to supplement supervisory ratings may thus help to develop a

consensus about an individual's performance. It may also help eliminate biases and lead

to greater employee acceptance of appraisal systems.

Potential problems may limit the usefulness of peer ratings, however, especially if they

are used in lieu of supervisory ratings. First, the company must consider the nature of its

reward system. If the system is highly competitive, peers may perceive a conflict of

interest. High ratings given to a peer may be perceived as harming an individual's own

chances for advancement. Second, friendships may influence peer ratings. A peer may

fear that low ratings given to a colleague will harm their friendship or hurt the

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cohesiveness of the work group. On the other hand, some peer ratings may be influenced

by a dislike for the employee being rated.

Some organizations use self-ratings to supplement supervisory ratings. As one might

expect, self-ratings are generally more favorable than those made by supervisors and

peers and therefore may not be effective as an evaluative tool. However, self-ratings may

be used for employee development. Their use may uncover areas of subordinate-

supervisor disagreement, encourage employees to reflect on their strengths and

weaknesses, lead to more constructive appraisal interviews, and make employees more

receptive to suggestions.

MEASUREMENT

Once the appropriate performance dimensions have been established for jobs, the

organization must determine how best to measure the performance of employees. This

raises the critical issue of which rating form to use. In the vast majority of organizations,

managers rate employee job performance on a standardized form. A variety of forms

exist, but they are not equally effective. To be effective, the form must be relevant and

the rating standards must be clear. Relevance refers to the degree to which the rating form

includes necessary information, that is, information that indicates the level or merit of a

person's job performance. To be relevant, the form must include all the pertinent criteria

for evaluating performance and exclude criteria that are irrelevant to job performance.

The omission of pertinent performance criteria is referred to as criterion deficiency. For

example, an appraisal form that rates the performance of police officers solely on the

basis of the number of arrests made is deficient because it fails to include other aspects of

job performance, such as conviction record, court performance, number of

commendations, and so on. Such a deficient form may steer employee behavior away

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from organizational goals; imagine if police officers focused only on arrests and

neglected their other important duties.

When irrelevant criteria are included on the rating form, criterion contamination occurs,

causing employees to be unfairly evaluated on factors that are irrelevant to the job. For

example, criterion contamination would occur if an auto mechanic were evaluated on the

basis of personal cleanliness, despite the fact that this characteristic has nothing to do

with effective job performance.

Performance standards indicate the level of performance an employee is expected to

achieve. Such standards should be clearly defined so that employees know exactly what

the company expects of them. For instance, the standard "load a truck within one hour" is

much clearer than "work quickly." Not only does the use of clear performance standards

help direct employee behavior, it also helps supervisors provide more accurate ratings;

two supervisors may disagree on what the term "quickly" means, but both attribute the

same meaning to "one hour."

To meet the standards described in the previous section, a firm must use an effective

rating form. The form provides the basis for the appraisal, indicating the aspects or

dimensions of performance that are to be evaluated and the rating scale for judging that

performance. Human Resources (HR) experts have developed a variety of instruments for

appraising performance. A description of the most commonly used instruments, along

with their strengths and weaknesses, is given in the following paragraphs. A summary of

these instruments appears in Exhibit 1. It should be noted, however, that companies can

create additional types of instruments. For instance, they can rate employees on job task

performance using graphic or behavior rating scales.

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EMPLOYEE COMPARISON SYSTEMS.

Most appraisal instruments require raters to evaluate employees in relation to some

standard of excellence. With employee comparison systems, however, employee

performance is evaluated relative to the performance of other employees. In other words,

employee comparison systems use rankings, rather than ratings. A number of formats can

be used to rank employees, such as simple rankings, paired comparisons, or forced

distributions. Simple rankings require raters to rank-order their employees from best to

worst, according to their job performance. When using the paired comparison approach, a

rater compares each possible pair of employees. For example, Employee 1 is compared to

Employees 2 and 3, and Employee 2 is compared to Employee 3. The employee winning

the most "contests" receives the highest ranking. A forced distribution approach requires

a rater to assign a certain percentage of employees to each category of excellence, such as

best, average, or worst. Forced distribution is analogous to grading on a curve, where a

certain percentage of students get As, a certain percentage get Bs, and so forth.

Employee comparison systems are low cost and practical; the ratings take very little time

and effort. Moreover, this approach to performance appraisal effectively eliminates some

of the rating errors discussed earlier. Leniency is eliminated, for instance, because the

rater cannot give every employee an outstanding rating. In fact, by definition, only 50

percent can be rated as being above average. By forcing raters to specify their best and

worst performers, employment decisions such as pay raises and promotions become

much easier to make.

Employee comparison systems are plagued with several weaknesses. Because the rating

standards for judging performance are vague or nonexistent, the accuracy and fairness of

the ratings can be seriously questioned. Moreover, employee comparison systems do not

specify what a worker must do to receive a good rating and, thus, they fail to adequately

direct or monitor employee behavior. Finally, companies using such systems cannot

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compare the performance of people from different departments fairly. For example, the

sixth-ranked employee in Department A may be a better performer than the top-ranked

employee in Department B.

GRAPHIC RATING SCALE

A graphic rating scale (GRS) presents appraisers with a list of dimensions, which are

aspects of performance that determine an employee's effectiveness. Examples of

performance dimensions are cooperativeness, adaptability, maturity, and motivation.

Each dimension is accompanied by a multi-point (e.g., 3, 5, or 7) rating scale. The points

along the scale are defined by numbers and/or descriptive words or phrases that indicate

the level of performance. The midpoint of the scale is usually anchored by such words as

"average," "adequate," "satisfactory," or "meets standards."

Many organizations use graphic rating scales because they are easy to use and cost little

to develop. HR professionals can develop such forms quickly, and because the

dimensions and anchors are written at a general level, a single form is applicable to all or

most jobs within an organization. Graphic rating scales do present a number of problems,

however. Such scales may not effectively direct behavior; that is, the rating scale does not

clearly indicate what a person must do to achieve a given rating, thus employees are left

in the dark as to what is expected of them. For instance, an employee given a rating of

two on "attitude" may have a difficult time figuring out how to improve.

Graphic rating scales also fail to provide a good mechanism for providing specific, non-

threatening feedback. Negative feedback should focus on specific behaviors rather than

on the vaguely defined dimensions the GRSs describe. For example, if told that they are

not dependable, most employees would become angered and defensive; they would

become less angry and defensive if such feedback were given in behavioral terms: "Six

customers complained to me last week that you did not return their phone calls."

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Another problem with GRSs concerns rating accuracy. Accurate ratings are not likely to

be achieved because the points on the rating scale are not clearly defined. For instance,

two raters may interpret the standard of "average" in very different ways. The failure to

clearly define performance standards can lead to a multitude of rating errors (as noted

earlier) and provides a ready mechanism for the occurrence of bias. U.S. courts

consequently frown on the use of GRSs. One court noted that ratings made on a graphic

rating scale amounted to no more than a "subjective judgment call," and ruled that such

rating scales should not be used for promotion decisions because of the potential bias

inherent in such a subjective process.

BEHAVIORALLY-ANCHORED RATING SCALES

A behaviorally-anchored rating scale (BARS), like a graphic rating scale, requires

appraisers to rate employees on different performance dimensions. The typical BARS

includes seven or eight performance dimensions, each anchored by a multi-point scale.

But the rating scales used on BARS are constructed differently than those used on

graphic rating scales. Rather than using numbers or adjectives, a BARS anchors each

dimension with examples of specific job behaviors that reflect varying levels of

performance.

The process for developing a BARS is rather complex. Briefly, it starts with a job

analysis, using the critical incident technique. This involves having experts generate a list

of critical incidents—or specific examples of poor, average, and excellent behaviors—

that are related to a certain job. The incidents are then categorized by dimension. Finally,

a rating scale is developed for each dimension, using these behaviors as "anchors" to

define points along the scale.

When initially formulated, BARS were expected to be vastly superior to graphic rating

scales. HRM experts thought the behavioral anchors would lead to more accurate ratings

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because they enabled appraisers to better interpret the meaning of the various points

along the rating scale. That is, rather than having the rater try to pinpoint the meaning of

a vague anchor such as "excellent," the rater would have improved accuracy by having a

critical incident as an anchor. As we shall see, however, this expectation has not been

met. Perhaps the greatest strength of BARS is its ability to direct and monitor behavior.

The behavioral anchors let employees know which type of behavior are expected of them

and gives appraisers the opportunity to provide behaviorally-based feedback.

The superiority of BARS over graphic rating scales has not been substantiated by

research. In fact, the great majority of studies on this topic have failed to provide

evidence that justifies the tremendous amount of time and effort involved in developing

and implementing BARS. The failures of BARS may lie in the difficulty raters

experience when trying to select the one behavior on the scale that is most indicative of

the employee's performance level. Sometimes an employee may exhibit behaviors at both

ends of the scale, so the rater does not know which rating to assign.

BEHAVIOR OBSERVATION SCALES.

A behavior observation scale (BOS) contains a list of desired behaviors required for the

successful performance of specific jobs, which are assessed based on the frequency with

which they occur. The development BOS, like BARS, also begins with experts

generating critical incidents for the jobs in the organization and categorizing these

incidents into dimensions. One major difference between BARS and BOS is that, with

BOS, each behavior is rated by the appraiser.

When using BOS, an appraiser rates job performance by indicating the frequency with

which the employee engages in each behavior. A multi-point scale is used ranging from

"almost never" to "almost always." An overall rating is derived by adding the employee's

score on each behavioral item. A high score means that an individual frequently engages

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in desired behaviors, and a low score means that an individual does not often engage in

desired behaviors.

Because it was developed more recently, the research on BOS is far less extensive than

that on BARS. The available evidence, however, is favorable. One study found that both

managers and subordinates preferred appraisals based on BOS to both BARS and graphic

rating scales. The same study found that equal employment opportunity attorneys

believed BOS is more legally defensible than the other two approaches.

Because raters do not have to choose one behavior most descriptive of an employee's

performance level, the problem noted earlier regarding BARS does not arise. Moreover,

like BARS, BOS is effective in directing employees' behavior because it specifies what

they need to do in order to receive high performance ratings. Managers can also

effectively use BOS to monitor behavior and give feedback in specific behavioral terms

so that the employees know what they are doing right and which behavior needs to be

corrected. Like BARS, however, a BOS instrument takes a great deal of time to develop.

Moreover, a separate instrument is needed for each job (since different jobs call for

different behaviors), so the method is not always practical. Developing a BOS for a

particular job would not be cost-efficient unless the job had many incumbents.

ACCURACY OF THE RATINGS.

Accurate ratings reflect the employees' actual job performance levels. Employment

decisions that are based on inaccurate ratings are not valid and would thus be difficult to

justify if legally challenged. Moreover, employees tend to lose their trust in the system

when ratings do not accurately reflect their performance levels, and this causes morale

and turnover problems. Unfortunately, accurate ratings seem to be rare. Inaccuracy is

most often attributable to the presence of rater errors, such as leniency, severity, central

tendency, halo, and recency errors. These rating errors occur because of problems with

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human judgment. Typically, raters do not consciously choose to make these errors, and

they may not even recognize when they do make them.

Leniency error occurs when individuals are given ratings that are higher than actual

performance warrants. Leniency errors most often occur when performance standards are

vaguely defined. That is, an individual who has not earned an excellent rating is most

likely to receive one when "excellent" is not clearly defined. Why do appraisers distort

their ratings in an upward or downward direction? Some do it for political reasons; that

is, they manipulate the ratings to enhance or protect their self-interests. In other instances,

leniency and severity come about from a rater's lack of conscientiousness. Raters may

allow personal feelings to affect their judgments; a lenient rating may be given simply

because the rater likes the employee.

Severity error occurs when individuals are given ratings that are lower than actual

performance warrants. Severe ratings may be assigned out of a dislike for an individual,

perhaps due to personal bias. A male appraiser may, for example, underrate a highly-

performing female employee because she threatens his self-esteem; a disabled employee

may receive an unduly low rating because the employee's presence makes the appraiser

feel embarrassed and tense; or an appraiser may provide harsh ratings to minorities out of

a fear and distrust of people with different nationalities or skin color. Alternately, a

severe rating may be due to the very high standards of a rater, or to "send a message" to

motivate employees to improve.

When raters make leniency and severity errors, a firm is unable to provide its employees

with useful feedback regarding their performance. An employee who receives a lenient

rating may be lulled into thinking that performance improvement is unnecessary. Severity

errors, on the other hand, can create morale and motivation problems and possibly lead to

discrimination lawsuits.

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Central tendency error occurs when appraisers purposely avoid giving extreme ratings

even when such ratings are warranted. For example, when rating subordinates on a scale

that ranges from one to five, an appraiser would avoid giving any ones or fives. When

this error occurs, all employees end up being rated as average or near average, and the

employer is thus unable to discern who its best and worst performers are. Central

tendency error is likely the result of administrative procedures. That is, it frequently

occurs when an organization requires appraisers to provide extensive documentation to

support extreme ratings. The extra paperwork often discourages appraisers from

assigning high or low ratings. Central tendency errors also occur when the end points of

the rating scale are unrealistically defined (e.g., a 5 effectively means "the employee can

walk on water" and a 1 means "the employee would drown in a puddle").

Appraisals are also subject to the halo effect, which occurs when an appraiser's overall

impression of an employee is based on a particular characteristic, such as intelligence or

appearance. When rating each aspect of an employee's work, the rater may be unduly

influenced by his or her overall impression. For example, a rater who is impressed by an

employee's intelligence may overlook some deficiencies and give that employee all fives

on a one-to-five scale; an employee perceived to be of average intelligence may be given

all threes. The halo effect acts as a barrier to accurate appraisals because those guilty of it

fail to identify the specific strengths and weaknesses of their employees. It occurs most

often when the rating standards are vague and the rater fails to conscientiously complete

the rating form. For instance, the rater may simply go down the form checking all fives or

all threes.

Most organizations require that employee performance be assessed once a year. When

rating an employee on a particular characteristic, a rater may be unable to recall all of the

employee's pertinent job behaviors that took place during that rating period. The failure

to recall such information is called memory decay. The usual consequence of memory

decay is the occurrence of recency error; that is, ratings are heavily influenced by recent

events that are more easily remembered. Ratings that unduly reflect recent events can

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present a false picture of the individual's job performance during the entire rating period.

For instance, the employee may have received a poor rating because he or she performed

poorly during the most recent month, despite an excellent performance during the

preceding eleven months.

MANAGEMENT

In the management phase of performance appraisal, employees are given feedback about

their performance and that performance is either reinforced or modified. The feedback is

typically given in an appraisal interview, in which a manager formally addresses the

results of the performance appraisal with the employee. Ideally, the employee will be

able to understand his or her performance deficiencies and can ask questions about the

appraisal and his or her future performance. The manager should give feedback in a way

that it will be heard and accepted by the employee; otherwise, the appraisal interview

may not be effective.

The appraisal interview may also have an appeals process, in which an employee can

rebut or challenge the appraisal if he or she feels that it is inaccurate or unfair. Such a

system is beneficial because it:

allows employees to voice their concerns.

Fosters more accurate ratings—the fear of a possible challenge may discourage

raters from assigning arbitrary or biased ratings.

Often prevents the involvement of outside third parties (e.g., unions, courts).

The downside of using an appeals system is that it tends to undermine the authority of the

supervisor and may encourage leniency error. For example, a supervisor may give lenient

ratings to avoid going through the hassle of an appeal.

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MANAGEMENT BY OBJECTIVES

Management by objectives (MBO) is a management system designed to achieve

organizational effectiveness by steering each employee's behavior toward the

organization's mission. MBO is often used in place of traditional performance appraisals.

The MBO process includes goal setting, planning, and evaluation. Goal setting starts at

the top of the organization with the establishment of the organization's mission statement

and strategic goals. The goal-setting process then cascades down through the

organizational hierarchy to the level of the individual employee. An individual's goals

should represent outcomes that, if achieved, would most contribute to the attainment of

the organization's strategic goals. In most instances, individual goals are mutually set by

employees and their supervisors, at which time they also set specific performance

standards and determine how goal attainment will be measured.

As they plan, employees and supervisors work together to identify potential obstacles to

reaching goals and devise strategies to overcome these obstacles. The two parties

periodically meet to discuss the employee's progress to date and to identify any changes

in goals necessitated by organizational circumstances. In the evaluation phase, the

employee's success at meeting goals is evaluated against the agreed-on performance

standards. The final evaluation, occurring annually in most cases, serves as a measure of

the employee's performance effectiveness.

MBO is widely practiced throughout the United States. The research evaluating its

effectiveness as a performance appraisal tool has been quite favorable. These findings

suggest that the MBO improves job performance by monitoring and directing behavior;

that is, it serves as an effective feedback device, and it lets people know what is expected

of them so that they can spend their time and energy in ways that maximize the

attainment of important organizational objectives. Research further suggests that

employees perform best when goals are specific and challenging, when workers are

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provided with feedback on goal attainment, and when they are rewarded for

accomplishing the goal.

MBO presents several potential problems, however, five of which are addressed here.

1. Although it focuses an employee's attention on goals, it does not specify the

behaviors required to reach them. This may be a problem for some employees,

especially new ones, who may require more guidance. Such employees should be

provided with action steps specifying what they need to do to successfully reach

their goals.

2. MBO also tends to focus on short-term goals, goals that can be measured by year's

end. As a result, workers may be tempted to achieve short-term goals at the expense

of long-term ones. For example, a manager of a baseball team who is faced with the

goal of winning a pennant this year may trade all of the team's promising young

players for proven veterans who can win now. This action may jeopardize the team's

future success (i.e., its achievement of long-term goals).

3. The successful achievement of MBO goals may be partly a function of factors

outside the worker's control. For instance, the base-ball manager just described

may fail to win the pennant because of injuries to key players, which is a factor

beyond his control. Should individuals be held responsible for outcomes

influenced by such outside factors? For instance, should the team owner fire the

manager for failing to win the pennant? While some HRM experts (and base-ball

team owners) would say "yes," because winning is ultimately the responsibility of

the manager, others would disagree. The dissenters would claim that the team's

poor showing is not indicative of poor management and, therefore, the manager

should not be penalized.

4. Performance standards vary from employee to employee, and thus MBO provides

no common basis for comparison. For instance, the goals set for an "average"

employee may be less challenging than those set for a "superior" employee. How

can the two be compared? Because of this problem, the instrument's usefulness as

a decision-making tool is limited.

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5. MBO systems often fail to gain user acceptance. Managers often dislike the amount of

paperwork these systems require and may also be concerned that employee participation

in goal setting robs them of their authority. Managers who feel this way may not

properly follow the procedures. Moreover, employees often dislike the performance

pressure that MBO places on them and the stress that it creates.

SUPERVISORY STYLE:

Supervisor

Person in the first-line management who monitors and regulates employees in their

performance of assigned or delegated tasks. Supervisors are usually authorized to

recommend and/or effect hiring, disciplining, promoting, punishing, rewarding, and

other associated activities regarding the employees in their departments. Leadership

styles may be of relevance to in a variety of situations where there is a requirement to

manage others. Effective performance will depend on many factors including the

organizational culture in which the individual is operating.

Directive Leader: Directive Leaders are characterized by having firm views about how

and when things should be done. As such they leave little leeway for subordinates to

display independence, believing that they should adhere to the methods and schedules as

originally laid down. Having a high goal-orientation and being particularly concerned

with results the Directive Leader will tend to closely monitor the behavior and

performance of others. This may lead them to be perceived as a little cool and detached.

Delegative Leader: As the name suggests, the style of Delegative Leaders is

characterized by delegating work to subordinates. Since their style is not strongly

democratic, the process of delegation may not involve consultation. As a result,

subordinates will generally be assigned work rather than have active input into how

projects should be conducted.

http://www.businessdictionary.com/definition/person.html

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http://www.businessdictionary.com/definition/associated.html

http://www.businessdictionary.com/definition/activity.html

http://www.businessdictionary.com/definition/regarding.html

http://www.businessdictionary.com/definition/department.html

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Participative Leader: Participative leaders are primarily concerned with getting the

best out of a team as a whole. Hence, they encourage contributions from all members of a

team and believe that by pooling ideas and coming to a consensus view the best Solutions

to problems will naturally arise.

Consultative Leader: The Consultative Leadership Style combines elements of both

democratic and directive leadership orientations. They value group discussion and tend to

encourage contributions from the separate members of the team. However, although

group discussions will be largely democratic in nature, Consultative Leaders typically

make the final decision as to which of the varying proposals should be accepted.

Negotiative Leader: Negotiative Leaders motivate subordinates by encouraging them,

through incentives etc., to work towards common objectives. Hence, through a process of

negotiation attempts will be made to arrive at some mutually equitable arrangement with

the other members of the team so as to motivate them to work in a particular way.

Negotiative Leaders tend to rely on their skills of persuasion to achieve their stated goals.

INTERNAL COMMUNICATION SYSTEM:

Internal communications (IC) is the function responsible for effective communication

among participants within an organization. A relatively young profession, IC draws on

the theory and practice of related professions, not least journalism, knowledge

management, public relations, media relations, marketing and human resources, as well

as wider organizational studies, communication theory, sociology and political science.

Role of Internal Communication in the Organization:

People at work communicate regardless of the intentions of their managers or leaders.

The purpose that a formally-appointed IC manager or IC team will serve within a given

organization will depend on the business context. In one, the IC function may perform the

http://en.wikipedia.org/wiki/Organization

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http://en.wikipedia.org/wiki/Knowledge_management

http://en.wikipedia.org/wiki/Knowledge_management

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Media_relations

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Human_resource_management

http://en.wikipedia.org/wiki/Organizational_studies

http://en.wikipedia.org/wiki/Communication_theory

http://en.wikipedia.org/wiki/Sociology

http://en.wikipedia.org/wiki/Political_science

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role of 'internal marketing' (i.e., attempting to win participants over to the management

vision of the organization); in another, it might perform a 'logistical' service as channel

manager; in a third, it might act principally as strategic adviser.

It is important to distinguish between communications on behalf of the organization and

the day to day intercourse within work groups or between managers and subordinates.

Minzberg talks about the fact that communications is intrinsic to the work of a manager -

it is the very essence of work in many situations. This article is less concerned with the

interpersonal communications that take place in most workplaces and which are explored

by writers such as Phillip Clampitt.

There are a number of reasons why organisations should be concerned about internal

communication. Importantly, there is commonly a legal requirement for organizations to

communicate with their workers. In Europe, for example, the EU has made very specific

provision about workers' rights to be informed and consulted. Effective internal

communications is one of the key drivers of employee engagement (see, e.g., the UK

government-sponsored Macleod Report for a summary of research) and proven to add

significant value to organizations on all metrics from productivity to customer research.

As noted in Quirke (2008) "Traditionally, internal communications has focused on the

announcement of management conclusions and the packaging of management thinking

into messages for mass distribution to the 'troops'". Research indicates a limit to the value

of this 'broadcasting' model of IC. Without feedback loops and harnessing the active

involvement and mediation skills of frontline supervisors or team leaders, broadcasting

tends to be more effective at influencing senior and middle managers than frontline

employees - see, e.g., Larkin and Larkin (1994).

As the IC function matures within the organization, then, it may come to play a wider

role in facilitating conversations "upwards", "downwards" and "across" the

organization, per Stohl (1995). Organizations increasingly see Internal Communication

http://en.wikipedia.org/wiki/Broadcasting

http://en.wikipedia.org/wiki/Feedback

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as playing a role in external reputation management. Joep Cornelissen in his

book Corporate Communications touches on the relationship between reputation and

internal conversations. This trend reaches its full potential with the arrival of new 'norms'

and customer expectations around social media, for example in the work of Scoble and

Israel. Market researchers mori have likewise highlighted the effects of employee

advocacy on an organization’s external reputation. Internal Communication managers

aim to achieve strategic influence, to help bring reputational risk analysis to bear before

senior leaders take a final decision, to improve the quality of that decision and improve

the chances it will be accepted by all participants within the organization.

POWER AND POLITICS

In social terms, power almost by definition, involves the rule by the few over the majority

and we have to understand the political processes (both Structural and Interpersonal)

whereby power is legitimated (the process whereby power ceases to be nakedly coercive

and becomes power that is based upon authority. By power is meant the ability of

individuals or groups to make their own concerns or interests count, even where others

resist. Power sometimes involves the direct use of force, but is almost always also

accompanied by the development of ideas (ideology) which justify the actions of the

powerful. Politics, in this sense, is a concept that can be defined as a process involving

the “exercise of control, constraint and coercion in society”. Power which is derived

from social positioning lacks legitimacy. It is dependent upon strength and competencies.

Depending upon situation there are several kinds of power, some of which are described

below.

Reward power

Coercive power

Legitimate power

Personal power

Expert power

Referent power

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Reward power: The extent to which a manager can use extrinsic and intrinsic rewards to

control other people is described as reward power. Success in accessing and utilizing

rewards depends on manager’s skills.

Coercive power: The extents to which a manager can deny desired rewards or administer

punishments to control other people. Availability varies from one organization and

manager to another.

Legitimate power: The extent to which a manager can use subordinates internalized

values or beliefs that the “boss” has a “right of command” to control their behavior. If

legitimacy is lost, authority will not be accepted by subordinates.

Personal power: Personal power is derived from individual sources.

Expert power: Is ability to control another person’s behaviour through the possession of

knowledge, experience, or judgment that the other person needs but does not have?

Referent power: The ability to control another’s behavior because the person wants to

identify with the power source. It can be enhanced by linking to morality and ethics and

long-term vision

Politics

Since organizations do not follow their systems and procedures fairly, there is lot of

politics It essentially implies lot of maneuverability in the allocation of responsibilities,

rewards and resources. Politics is the use of power to develop socially acceptable ends

and means that balance individual and collective interests.

Political behavior may take many forms. It may comprise passing a chain of commands,

Withholding information, spreading rumors, leaking confidential information, lobbying,

using pressure tactics etc. The following are the characteristics and reasons of political

behavior.

It is outside one’s job requirements.

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It is an attempt to influence the decision making process.

It may involve give and take strategy.

It is usually devoid of morality and ethics.

A number of factors can lead to political behavior. If there is lack of clarity in

organizational policies and presence of over ambitious individuals in workforce is higher,

there are more chances of politics. Limited promotional avenues, discriminatory behavior

of management can aggravate political behavior.

There are several ways in which politics takes place in organizations. Feyol (1949)

describes the following political strategies.

Impression Management: An attempt is made to create an impression that

everything is good because of us and anything wrong has nothing to do with us.

Extra Role Relationship: Flattery, creating goodwill and being overtly friendly are

some of the tactics through which political behavior is promoted.

Coalition: Likeminded people come together and promote a particular cause

which is essentially political in nature.

Bargaining: Bargaining, negotiations etc. are used to get extra benefits which are

normally not available.

Teams and Team Work

The world is changing fast nowadays. It is true that the world has been evolving and

changing since time began, but what is so different today is both pace and the effects of

change, which impinge on everyone’s life. Competition is hotting up. New products, new

technologies, new processes hit the markets with frustrating regularity. In order to survive

corporates are virtually compelled to economize on every front – go after modern

technology, restructure operations, explore new markets, find new uses of existing

products, innovate, experiment and find new ways of living and most importantly use

human resources productively. While fighting with the various forces of change,

corporations have realized the importance of teams which are more flexible and

responsive to changing events than are traditional departments or other forms of

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permanent groupings. Corporations have benefited from the use of terms in the form of

increased productivity, increased speed of operations, reduced costs, improved quality,

reduced destructive internal competition, improved workplace cohesion etc.

Team

A team is any group of people organized to work together interdependently and

cooperatively to meet the needs of their customers by accomplishing a purpose and goals.

Teams are created for both long term and short term interaction. A product development

team, an executive leadership team, and a departmental team are long lasting planning

and operational groups. Short term teams might include a team to develop an employee

on boarding process, a team to plan the annual company party, or a team to respond to a

specific customer problem or complaint.

Three common types of teams include functional or departmental, cross-functional, and

self-managing.

Functional or departmental teams: Groups of people from the same work area

or department, who meet on a regular basis to analyze customer needs, solve

problems, provide members with support, promote continuous improvement, and

share information.

Cross-functional teams: Groups of people who are pulled together from across

departments or job functions to deal with a specific product, issue, customer,

problem, or to improve a particular process.

Self-managing teams: Groups of people who gradually assume responsibility for

self-direction in all aspects of work.

Virtual teams: A virtual team convenes and operates with members linked

together electronically via networked computers. It uses computer technology and

groupware to tie together members from various locations working toward a

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common goal. Members need not be working in close proximity and many often

geographically dispersed- cross organizationally or cross- nationally. Almost all

meetings could take place via electronic communication (including wide area

networks, video conferencing, fax, e-mail, etc). Sometimes a company may also

use virtual teams in partnership with suppliers or in many cases with competitors

to pull together the best brains to complete a project or speed a new product to

market. Leadership among team members is shared or altered depending on the

area of expertise required at each stage of the project.

Virtual teams bring cost effectiveness and speed to teamwork where members are

unable to meet easily face-to-face. There is added advantage of objective information

sharing and decision- making based on facts. Where members are well-trained in the

use of computers and are able to process and interpret data without any emotional

considerations, virtual teams may yield positive gains.

The success of virtual teams, therefore, depends on several crucial elements (Brain

Dumaine; Solomon, Jarvenpaa and Leidner) :

Careful selection of partners and team members; encourage team members to

interact one on one, without feeling obliged to copy every email message to

the entire team; encourage team members to discuss cultural differences

freely.

Strong management support of the team and its goals; be sure that someone is

responsible for facilitating the communication process.

Utilization of best communication tools and procedures, better to use a variety

of communication technologies; pay special attention to the quality of the

communication transmission (like low quality voice transmissions, poor video

images etc)

Development of trust among all members; to achieve this, it is better to hold

an initial meeting on a face-to-face basis; whenever possible, individual team

members could pay a visit and meet members who are easily accessible;

periodic meetings with members of course minimize the dangers emanating

“out of site, out of mind” attitudes.

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Information sharing; also train team members to match their choice of technology

to the desk.

Team Work:

Teamwork occurs when group members work together in ways that utilize their skills to

accomplish a common purpose. (Phillips) In such a scenario, members are prepared to

listen and respond constructively to views expressed by others, give others the benefit of

doubt, offer support and recognize the interests and achievements of others. Teamwork of

this nature, of course, does not just happen. You cannot simply expect people to do a

great job by assigning members to a group.

To create a high performing team, a leader must invariably (Dyer):

Communicate high-performance standards.

Set the tone in the first team meeting.

Create a sense of urgency

Make sure members have the right skills

Establish clear rules for team behaviour

As a leader, model expected behaviours

Find ways to create early “successes”

Continually introduce new facts and information

Make sure members spend a lot of time together

Give positive feedback and reward high performance

High performance teams, thus have strong core values, clear performance goals, the

right mix of skills and creativity. Members in a homogenous group (when members are

alike in respect of age, gender, race, ethnicity, experience etc) may score better than

others in most cases because they find it easy to build social relationships quickly and

begin interactions needed to work harmoniously together. Team diversity (in terms of

demography, experiences, cultures) may create performance difficulties initially.

However, once the members sort out interpersonal differences smoothly, they can put

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their varied backgrounds, experience and talents to effective use. Although it may take

considerable time and effort to obtain teamwork from foundations of diversity, long-

term benefits in creativity and performance can make it all worthwhile (Watson).

Ethics and Social Responsibility

Ethics are talked about frequently and addressed in the news when unethical decisions are

found. Sadly, people do not hear about ethics when others are engaging in ethical

behavior on a daily basis. Keep in mind that things that are not illegal may be unethical.

Ethics are an individual belief system that consists of knowing what is right and wrong.

Ethics can vary person to person. Ethics is in part analyzing decisions, beliefs, and

actions. Within the business context, businesses are expected to have good ethical values

and act socially responsible. The problem is that the ethics of a business is a mixture of

individual sets of ethics. This is why it is important to have good individuals as

employees. It is also equally important that when you go to work somewhere that you

feel like you share the values of those you work with. Ethics is not just talking about the

right thing. It is doing what is right in every decision that is made.

Social responsibility can be an example of ethical behavior. It is enhancing society in

general. However, a business can’t afford to go around doing good deeds if there is no

potential payoff. If the business were to loose too much money, then it would cease to

exist, hurt customers, and leave employees jobless. There are some that argue that social

responsibility is shown only when companies go beyond what is optional, and really

intend to create a benefit for others besides the company. Additionally, some companies

may not benefit from some forms of social responsibility.

These businesses should focus on what they do best as a business and give back what

they can. Examples of socially responsible behavior range from projects that raise money

for research on diseases, raising money for the needy, requiring workers to volunteer

within the community, recalling products that may be dangerous, promoting recycling,

and offering free services to the disadvantaged. There are innumerable ethical dilemmas

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that may arise in a business setting. Some of them are more obvious while some of them

are more obscure. There is a simple basis that helps keep decisions in perspective.

Businesses should operate in a manner that is legal, profitable, ethical, and within social

norms. By being within social norms means that you need to use society to gauge if your

decisions are appropriate. Some cultures would define what is ethical differently from

other cultures. Due to the fact that all businesses need to be profitable, sometimes there is

an over emphasis on making more money. Social norms should govern what is

appropriate to compensate individuals as well as to charge customers.

Profit expectations and goals should not require a business to cut corners in an unethical

way or to misrepresent or twist facts. Then where do ethics come from? People begin to

develop their internal beliefs from the time they are small children. Factors such as the

conditions that an individual grows up in affect the way that they see the world. For

example if a child was raised in a household with a lot of violence, they might feel that

fighting is okay. The beliefs of the peers around you may influence how you see things. It

is human nature to want to belong and some are more apt to give into peer pressure.

People have a lot in common with their peers due to similar values in the first place.

However, it is hard to find two people that feel exactly the same about every situation.

Some people would feel that if they found money that they should be able to stick it in

their pocket and keep it. Others would feel as if they should take it to the lost and found

area. Keeping money that you find on the ground in a public place is not illegal, but some

people would not be able to benefit from a situation while the person who lost it could be

potentially found. Powerful situational factors may cause people to compromise their

values and resort to measures that they would not normally take.

If someone is having financial problems, then they are more likely to steal. An individual

that is very angry with another person may have a hard time being objective and fair.

Then why do people engage in unethical behaviors? Many people feel that they won’t be

caught. An employee that steals a few dollars out of petty cash may eventually result to

taking large amounts of cash if they are never caught. Someone with lots of authority

may feel like they can cover their tracks by lying to subordinates.

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Some people are unethical because they can justify what they are doing. If an employee

sees other people not being punished for unethical behavior, then they may feel like they

should be able to do it to. Some individuals make a poor choice and instead of coming

clean about it feel the need to make more choices to cover it up. Once bad decisions are

made, they tend to get worse until they are eventually caught. The biggest reason people

are unethical is because they feel that they can gain from it, or that they need to hide

something that can hurt them. There are many things that an organization can do to

facilitate good ethical behaviors. One of the best things to do is to make sure that the

underlying culture of an organization promotes strong values. People should not be

punished for coming forward with problems. As a matter of fact, workers should be

allowed to communicate problems anonymously. Some organizations have a phone

number to call or a suggestion box.

Always allow employees to share any ethical concerns with authority above them when

there are ambiguities about the right thing to do. Include a code of ethics as a written

document for employees to read. Develop brochures, mission statements, and other media

that express the company beliefs. Higher authorities within the organization should

possess the beliefs and demonstrate the values that they want to see their employees have.

Another method for implementing ethical conduct is to make sure that unethical conduct

can’t occur.

The ability to safeguard resources is an important function of internal controls. Examples

of internal controls are to make sure that more than one employee works with cash and

accounting related materials. This way there is more than one person who knows what is

going on and can identify theft. Other methods are to require signatures, to lock up

valuables, use security cameras, have employees rotate jobs, and randomly check

employee work. The more secure your business is, the less likely that individuals within

the organization will make unethical decisions. The pharmaceutical industry finds itself

caught up in the “Perfect Storm.” A variety of circumstances have conspired to place the

pharmaceutical industry at the center of a maelstrom. It would be easy to dismiss or

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misidentify this maelstrom as the consequence of purely fortuitous and temporary

economic factors, namely

1. Falling profits

2. Patent Expirations

3. Competition from generic drugs, and

4. The dearth of new blockbuster drugs.

This would be a serious misperception. The fact of the matter is that the pharmaceutical

industry is being demonized. The really significant forces contributing to the storm are

parts of a concerted effort on the part of various interest groups to push their own agendas

at the expense of pharmaceutical corporate pocketbooks. Together they have conspired to

present a portrait of the pharmaceutical industry as profiteers who (a) spend obscene

sums on marketing1 instead of research, (b) engage in differential pricing at home and

abroad in an effort to gouge the American consumer, and (c) deprive developing

countries of life-saving medicines.

As a result, the industry is under intense pressure to make medicines less expensive. The

success of the concerted effort to demonize the pharmaceutical industry is not the product

of incontrovertible facts and formidable arguments on the part of the industry’s critics.

No. The success of the demonization is a result of the receptivity (perhaps one should say

gullibility) of the public. And why are the public so receptive? The answer is that drugs

are the most visible recurring expense and the one that consumers are asked to pay, in

part, directly; this, coupled with the fact that the public has not yet come to terms with the

economics of contemporary healthcare has led to a crisis. In short the real crisis is the

present inability and unwillingness of the public to understand the economics of

contemporary healthcare. For reasons which will become apparent as we proceed, the

burden of the social responsibility of educating the public will fall on the pharmaceutical

industry.

The problems that beset the pharmaceutical industry are not sui generis but part of the

much larger healthcare debate. To attempt to solve the problem by purely business, legal,

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or political means would be to see the trees but to miss the forest. Health-care practice

and policy are based on a paradigm that is no longer meaningful. Past policy reflects a

“Jurassic” period when doctors could do very little and costs were comparably low. It

reflects a time when the emphasis was put on bedside manner, because there wasn’t

anything at the bedside except some posturing. I am old enough to remember a time when

going to the hospital was viewed as a prelude to death. The most important obligation of

the medical profession was non-maleficence (avoiding harm), not the principle of

beneficence (doing good).2 This produced a myopia about the cost of healthcare. This

myopia about the cost of healthcare was reinforced by the generosity of employers,

starting in the Second World War when they were forbidden to raise wages. Employers

contractually absorbed the then modest cost of healthcare. The public myopia would be

further reinforced by the rapid growth in the post war period of the welfare state. The

public has been led to believe that healthcare is a right; that a right (in the current

politically correct sense of the term, not the sense in which the American Founders

understood it) imposes a positive obligation on government to provide such goods or

benefits. How, however, does this actually work out in practice? Governments can

pretend to protect your newly discovered right by controlling the supply of healthcare.

They can do this, paradoxically, by cutting off access. That is, they can, among other

things, restrict the number of doctors, and they can reduce the supply of medical

technology. The ultimate logic of these moves will result in waiting lists or rationing.

Rationing is a way of privatizing costs without monetizing them.

There is one exception to this practice: prescription drugs.The only way that government

can manage the quantity or supply of prescription drugs is by insisting that patients pay

some of the costs directly. That is why drugs are the most visible recurring expense and

the one that consumers are asked to pay, in part, directly. It is also not surprising that up

until recently politicians have avoided including a prescription drug plan in Medicare.

We are getting a little ahead of ourselves in our account of why the public has not come

to terms with the economics of contemporary healthcare.

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The past and to some extent current paradigm in the minds of the public is that

healthcare should be inexpensive. This is an outmoded paradigm. Everything has

changed ramatically. In the past half-century, medical technology, as in the case of

technology in general, has totally transformed the landscape. There is an enormous and

ever growing amount that medical technology can provide, but the costs have risen

appreciably. Neither the medical community itself nor the public nor the formulators of

public policy have appreciated the need for a paradigm shift. Up until now, the

pharmaceutical industry has tried to defend itself by rightly pointing out its preeminent

role in producing, promoting and providing access to the benefits of modern medical

technology along with the need for protecting intellectual property rights. This defense

has fallen on deaf ears. This problem cannot be solved through a public relations defense

alone; it requires a coordinated offense. That offense has to embody a new paradigm.

What is the new paradigm: preserving and improving health-care requires full

commitment to free market economy in healthcare. It is time for the public and the world

at large to be clear on where it wants to be, how we have got close to it, and how we can

get closer. If you will allow me to condense the history of the last 500 years into a one

paragraph, I shall tell you what road we have been traveling. Since the Renaissance, the

Western World (of which the U.S. is the preeminent example and leader) has been

irrevocably committed to the Technological Project, that is, the project to control the

physical universe and make it responsive and subservient to humanity. I say irrevocably

because there is now no serious possibility of giving it up.

The essence of the TP is constant innovation.7 Since 1989, the world has come to

understand that the most efficient way of pursuing the Technological Project is through a

free-market economy because it is just such an economy that maximizes innovation. I

won’t waste time giving you the technical reasons, because you can read them in Adam

Smith. The spread of this realization that the Technological Project requires a free market

economy is what globalization is all about. A free-market economy requires a limited

government, i.e., a government which recognizes that its job is to serve the market which

serves the Technological Project, a government which is itself under the law – that is

what we mean by the rule of law and not men, and a government which enforces,

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adjudicates conflicts within, and maximizes the potential for, contracts. Finally, the only

way of producing and maintaining a limited government is to have a larger cultural

context in which individuals are personally autonomous, that is define their own lives and

take responsibility for them. The greatest achievement of the Technological Project has

been to improve the longevity and quality of human life. Medical technology has been at

the forefront of that project. Let me mention just a few facts:

1. From 1900 to 2000 life-expectancy increased in the Us from age 47 to

age 78.

2. Since 1986, there has been a 40% increase in life expectancy in 52

countries due to the launch of new medicines.

3. The expense of new drugs often reduces the cost of hospital care

expenditures.8

4. Old cures often have to be replaced by new cures.

5. New diseases and medical conditions develop all the time.

6. Most of the science Nobel prize-winners, especially in medicine, are from the US and

Briitain – the countries most committed to a free market.

7. Our most successful research universities are privately endowed universities, endowed

by the philanthropy of a culture committed to wealth production through a free market

economy. Telling this story is what the industry has tried to do so far, but unsuccessfully.

We need to tell it better and to get it across more successfully (i.e., we need a marketing

strategy for ideas). To do so, we need to bypass the medical technocrats and go directly to

the public. It is important to connect the story to profits. The public’s perception of

medicine as seen on TV always focuses positively on doctors instead of researchers and

entrepreneurs. The medicines appear miraculously, and, of course, the doctors get all the

credit. We might want to encourage switching the focus, perhaps through selective

programming and advertising. We might want, for example, to contrast the way

psychological dysfunction was treated in the era of Freud and psychoanalysis with

current psychiatrists who give medications. We might want to highlight the number of

world leaders who come to the US for medical treatment, and stress that it is no accident

that the best care is available in the country most committed to a free market.

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CHAPTER 6

EMPLOYEES BEHAVIOUR

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CHAPTER 6

EMPLOYEES BEHAVIOUR

Many elements determine an individual’s behavior in the workplace. Managers as well

as employees have been shaped by their culture, and by the organization’s culture. These

influences affect the way employees communicate and interact with one another, and

with management. In the same way, a manager’s communication is greatly influenced by

outside factors. Each employees beliefs effect their ethics, and sense of ethical

responsibility. Communication helps to shape employee perceptions, and helps

employers to understand employee’s perceptions. Different forms of communication,

both verbal and non-verbal, must be used to ensure that each demographic within a

corporation’s diverse team is reached both effectively and efficiently.

An individual takes with them an attitude that affects both their personal as well as

workplace environment. While some describe an attitude as circumstance dependent, it is

defined as “a persistent mental state of readiness to feel and behave in a favorable or

unfavorable way toward a specific person, object, or idea. It is important to understand

the definition of attitude as it is directly correlated to they way an individual behaves. For

example, if a person has a fight with their spouse outside of work, the consequent bad

attitude can negatively affect their productivity throughout the day. Given this direct

relationship between attitude and job performance, various methods can be implemented

by a company to help their employees experience positive attitudes. Organizations should

know their employees well enough to apply the best methods that will achieve the

greatest results possible for both the company and employee.

As much as attitude affects an individual’s behavior in the workplace, so does perception.

In fact, perception is defined as “a process by which individuals organize and interpret

their sensory impressions in order to give meaning to their environment.”(123 Heathers

Book) Moreover, perceptions can, and often do, vary from person to person which can

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cause great differences in a workplace environment. For example, a group of several

people can look at the exact same situation, but have different perceptions of the positive

and negative effects of that situation. If a company introduces a new retirement program

that focuses on matching contributions to a 401K, but in the process eliminates a pension

program, many employees will feel differently about the effects of that decision. In other

cases, perceptions can often times be distorted by miscommunication, and without proper

verifications of the information given an unhealthy work environment can easily be

created. If an employee has a perception about another employee that is incorrect, their

behavior around that employee will reflect that; this can lead to an unhealthy work

environment. It is important for each employee within an organization to keep an open

mind and get to know their co-workers so that perceptions will be accurate and the work

environment will stay as positive as possible.

People have their own belief system that influences their behavior in an organization.

With more and more companies supporting diversity amongst their employees,

differences in beliefs continues to increase. Sometimes conflict can arise when an

employees tries to push their beliefs on another employee. Since many companies are

accepting of all beliefs, it is important for employees to respect each of those beliefs.

Therefore, an employee should learn to work well with each other and respect their

differences in beliefs. Likewise, if an employee is open minded and respectful of others

beliefs, they can learn a lot from each other.

Diversity in the workplace takes a major role in helping companies maintain the most

effective and best-qualified employee base. The way that each individual within a

company chooses to address diversity can either benefit or hurt that organization.

Learning how to work with individuals of different ethnicities, backgrounds, age, and

personality types can be difficult. Still, most large companies work to make sure that the

workplace is diverse, and that the most effective and productive staff is on board. This is

a very difficult balance to maintain. Companies must be sure to pay attention to the needs

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of all employees and recognize the diversity within those needs. An important part of

maintaining an effective diverse work environment is making sure that the employees

within the company are focused on helping each other succeed. This focus creates and

understanding of how differences play an important role in the overall success of the

corporation. Offering diversity training is a great way to help employees understand one

another’s differences, and this type of communication can ease both fear and tension in

the workplace.

When companies take employees from different demographics, it aids in the diversity of

the workplace. Still, as is true with all types of diversity, it takes employer focus to

ensure that their employees are working effectively together. In some cases, when

companies do not keep careful watch, a class system will form within the organization

and conflict breeds from within. To combat this, many companies have seasonal events

such as Christmas parties or Summer BBQ’s. Team building exercises and competitive

recreation are also great ways to promote unity and good communication. Team members

are put in challenging, but low stress situations outside of the work environment that help

them learn to discuss ways to overcome obstacles, and to encourage and motivate each

other to achieve a common goal. Once back in the work setting, these employees are both

better equipped to face tough situations, and more unified and committed to one another’s

success.

Effective communication is the corner stone of any business or organization. The way

that upper management communicates with lower management has a direct effect on how

a business operates. Communication is the vehicle in which companies visions are

expressed and their directions are given. If the vision of the business is not communicated

clearly, then employees will not be inspired to share in the organization’s vision. In the

same way, if the employees are not helped to understand the company’s direction, they

can help the company achieve its goal. It is essential that each employee understand his

or her role and responsibilities for projects. If this direction is not given to employees, the

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poor communication will lead to failure of the project. Similarly, when communicating a

vision, employers must articulate clearly the vision of the company. The Society for

Human Resource Management states that there are four stages a company can follow

when articulating its vision, which are observation, reflection, writing, and speaking. This

involves observing the way the vision will affect the employees, reflecting on that

information, writing it out, and communicating it to the staff. (Bates, October 2007)

If effective communication is the cornerstone of a successful business, the effective

communication of leadership is the mortar that holds the corner stone in place. The

ability of a leader to bring people together, to accomplish a goal, and to produce a

product is dependent on effective communication. It is important that a leader be able to

sell the company’s idea or perspective to employees. Sanborn calls employers to go from

telling to selling. He states, “Once you’ve won the trust of the listener, you’ve opened his

or her mind to consider your message. You must find a way to impact him or her with

what you want them to understand, and that requires making an emotional connection.”

As leaders communicate company policy, vision, direction, and focus to employees, it is

important that they influence employees to believe more firmly in the organization. It is

not enough for leaders to be clear, concise, and understood. A leader is responsible for

moving employees toward behaviors that benefit the corporation.

People communicate in a variety of ways, and a large part of the way that people

communicate is not in just what they say. Employers and employees communicate to one

another through facial expressions, tone of voice, and body language. These

communication behaviors, when used by a leader, can have a direct impact on his or her

team. A facial expression can send a positive message that helps employees to begin the

day with a good attitude, just as putting on a happy face and saying good morning in a

pleasant tone can help set the mood for the day. It is very important for members of an

organization to make sure they are aware of what their nonverbal language is saying. It

easy for employees to unintentionally communicate negative feelings while trying to

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speak a positive thought because a person’s mood will often affects his or her nonverbal

cues. Having great communication skills is a must, whether verbal or nonverbal, to make

sure the message transmitted is the message intended. Another nonverbal form of

communication is apparel. The clothes that an individual wears to work can influence the

way that co-workers perceive him or her. Employees who wish to communicate a relaxed

persona often choose not to wear ties or business suits, while employees who wish to be

thought of as driven or successful will choose more formal business attire.

When employees are communicating effectively, everyone who receives the information

he or she is transmitting understands it. Good leaders understand how to effectively

communicate to employees. It is also important for a leader to have good listening skills.

To make sure that information was received and understood as intended, leaders should

ask whether there are any questions, comments, or concerns pertaining to what their

audience just heard. Efficient communication involves finding the shortest way to

communicate effectively. Efficient communication will vary depending on the size of the

team, as well as the team’s diversity. Communicating by speaking face-to-face rather

than through email, phone, or a third party is the best way for leaders to effectively and

efficiently communicate with employees.

Effective communication is vital to any company’s success. It influences employee’s

perceptions of the company, and helps the company to make decisions that the greatest

number of employees will deem favorable. Communication is key in helping employees

understand the organizations standard of ethics, as well as helping the company

understand the employees beliefs and how they affect the employees ethical

responsibility. Communication can be either verbal or non-verbal, and effective

communication reaches each demographic within a diverse group of people. Efficient

communication involves communicating effectively in the most direct way possible.

Each of these elements determine individual behavior in the workplace, and it is the

responsibility of the organizational leaders to clearly and persuasively communicate

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company the company’s goals and vision to each team member so that the corporation is

operating at its maximum potential.

Employees are key stakeholders in value delivery and brand/supplier success, and they

frequently represent the difference between positive experiences or negative experiences

and whether customers stay or go. Is employee satisfaction the best vehicle for creating

customer loyalty? Industrial psychologists and organizational behaviorists have been

studying employee satisfaction for over 30 years, assuming that the level of staff

satisfaction correlates with impact on performance. However, as one major study

concluded: "Researchers have been unable to confirm a relationship between employee

satisfaction and business performance." This is almost identical to the oft-proven

determination that a high level of customer satisfaction has relatively little bearing on

loyalty behavior. Conversely, transactional dissatisfaction can and often does undermine

customer loyalty and advocacy.

It has been found that employee commitment and advocacy behavior have a direct and

profound relationship to the loyalty of customers, and also to corporate sales and

profitability. As extensive academic and professional research into this effect concludes

with regularity, employee attitudes and actions can't be separated from the effective

delivery of customer value. Emblematic of this linkage is a statement David Cole, CEO

of Honeywell International, made several years ago to the company's 120,000 employees:

"Every Honeywell employee is a brand ambassador. With each customer contact, and

whenever we represent Honeywell, we have the opportunity to either strengthen the

brand or cause it to lose some of its luster and prestige. Generations of Honeywell

employees have built our powerful brands with their hard work, spirit of innovation,

passion for quality, and commitment to customers."

Employees are at least as important as other elements and contributors to effective

customer management in optimizing benefits for customers.

Decision making processes are also ways in which organisational culture can be

transformed thus changing employee behaviour and competitive advantage.

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Organisations where employees are; confused about their enumeration systems or those

ones where employees' job description contracts always come in late or those ones where

new employees are never recruited on time, may have problems with employee behaviour

hence service delivery. It is essential for leaders to employ the expertise and knowledge

that its employees have in their decision making processes. This is because staff members

are the ones who eventually have to carry the burden of those decisions. Leaders need to

realise that employees have a lot of contact with clients and may be more knowledgeable

about consumer preference. It is therefore wise to learn about those ideas from their

employees. This will make employees more responsible and will instil an organisational

culture that is full of cooperation. (Kilmann et al, 1986)

CEO s and other types of leaders need to create a free environment where employees are

allowed to think for themselves. This will go a long way in enhancing efficiency because

too much bureaucracy slows down service delivery. Employees should be encouraged to

contribute their views through regular meetings with managers or employers. This can

also be topped up by freedom to elect an independent advisory group that will facilitate

certain agreements between employees and their employers. Organisations that are

characterised with top-down management structure and cultures rarely affect their

employees' behaviour and will be less effective in achievement of sustainable advantage.

Decision making as a method of influencing employee behaviour and organisational

culture is effective in that it allows employees to be prepared psychologically for

business activity. Organisations in which decision making is largely left to the employee

are characterised by fast and intellectual employees during treatment of clients. It should

be noted that such employees are normally quite ready for nay occurrences in the firm

since they contributed to its formation. Consequently, chances of meeting obstacles and

objections during hours of business will be minimised by those employees and they will

be more effective in their tasks. Examples of areas in which employees should be allowed

to contribute to include aspects of products sold. Employees can make their contribution

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about how their product should be based on knowledge acquired from consumers. They

could also give their ideas about pricing strategies. Through their interaction with clients,

employees will have the ability to know what consumers are looking for in their area of

interest are. Such issues will contribute towards better employee behaviour and hence

organisational behaviour. (Benedict, 1934)

Motivation can be seen as way of influencing employee's behaviour in such a way that it

will lead to positive results within the organisation. This is one of the most instrumental

factors in the process of affecting employee behaviour and hence organisational culture.

Motivation can boost an employee's self esteem and will influence their capacity to work.

Motivation is especially necessary in instances where an organisation is undergoing

changes. At that time, there is a need for a motivational plan that will include all the new

environmental factors that will come into play. This motivational plan should bring out

the following aspects in the employees;

confidence

honesty

integrity (Judge & Watanabe, 1993)

Motivation can be achieved through a variety of channels. First and foremost, an

organisation needs to implement rewards systems that create an atmosphere of

enthusiasm amongst its employees. It would be preferable if an organisation links reward

systems to organisational success. This is the fundamental principle behind best practice

theories. In best practice theories, employees normally feel motivated to do better when

they can see the results of the efforts./ At the same time, employers need to avoid linking

performance with enumeration for specific individuals within its organisation. When

employers adopt such a system of enumeration, then they will only be dealing with

temporary solutions. Linking enumeration to individual performance usually creates

negative energies in the organisation. Employees may look for shortcuts in order to meet

their targets. Others may become hostile towards their counterparts. It is therefore

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important to adopt fair distribution systems in enumeration so as to maintain harmony

and to create a culture of looking at the ‘bigger picture'.

Another method that managers/ employers can use to motivate their employees is through

the use of allowances. For example, they could [provide certain holidays and flexible

working hours that could encourage their employees to work harder. Organisations

should also endeavour to provide safe environments for their employees especially in the

construction and industrial sectors. They could provide their employees with all the

necessary resources to go about their daily activities. This will give them more morale to

continue with their tasks because they know their health or well being is not in any

danger.

Another source of motivation stem from flexible organisational structure. Firms that

allow employees to make their own decision or those ones that allow them to have some

form of autonomy in their project group will go a long way in enhancing motivation

within the organisation.

Motivation can also be achieved by institution of training and development strategies.

This can be achieved for both new and old employees. Motivation and training are

interlinked; training instils employees with the necessary skills and knowledge necessary

continue with their day to day tasks. Training done on a regular basis ensures that

employees have confidence when handling clients or when doing other technical skills.

This will contribute to the nature of service delivery in the company and there will be

greater achievement of organisational culture. (Bartol et al, 2005)

Overly, motivation gives employees the energy and drive to bring positive changes to the

organisation. When managers use motivational tools regularly, they will create an

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organisation culture that has extremely motivated individuals; this will be manifested in

their output or behaviour. The latter will be directed towards achievement of

organisational goals and such companies will be way above the rest.

Managers with the right qualities have the ability to affect organisational culture and

hence employee behaviour. Managers should endeavour to display attributes of justice

and honesty. This can be achieved through the honesty during interaction with

employees. When leaders need to solve disputes between their employees, they should do

this in a fast and fair manner. The disagreeing parties should be accommodated

effectively in this process. By being just, employers will be showing their employees that

the company is on their side and this will go a long way in enhancing transparent

organisational culture. Such a culture will be depicted by committed workers who have

confidence in their organisation. (Allen, 1985)

Another quality that should be emphasised by managers is the participative culture. This

can be achieved by working with employees. Organisations should try their best to create

an environment where employers and employees collaborate to complete tasks. There is

nothing that will many employees over like a leader who ‘walks his talk'. Such

employees will be encouraged to place more efforts or to go that extra mile because they

realise that their employees will do the same too.

Leaders could also try to be more understanding of their employees. They should try and

learn their employees and understand what the most important things to their employees

are. Some employees may be motivated to work harder by money. Some employees may

be motivated by continuous challenges in their tasks. On the other hand, others may

prefer seeing the satisfaction on clients' faces. If employers can understand their

employees as individuals, then they can customise motivational tools to create an

organisational culture where most of the employees are satisfied by their motivational

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tools. This kind of culture will be depicted in the way most of these employees behave.

(Weick, 1979)

The study on employees behaviour can be explained with the help of dimensions such as

Absenteeism, Creativity stimulants, Attrition rate, employee satisfaction. These

dimensions help us to understand the employees behaviour in better manner. Some of

these dimensions are explained in detail below

1. ABSENTEEISM :

Absenteeism is a symptom of a rather complex disease. An employee has to remain

absent for one or other reason. It is difficult to say what percentage of it is avoidable or

preventable. One observer has highly said that,” Strikes and lockouts steal the limelight,

absenteeism does not. One is like heart attack; the other is like a cancer. Both can be fatal

for industry and therefore, they should be checked before much damage is caused to the

industry, workers, and the employers.”

Various views have been expressed to explain the phenomenon of absenteeism.

Many observers have written about their own experiences as managers or what they have

seen about the behaviour of other managers. President of New Jersey Bell Telephone,

Chester Barnard, saw management as an art rather than a science, involving feeling,

proportion, balance, appropriateness and the ability to make decisions under conditions of

risk (risk is the known probability of success or failure) and uncertainty (uncertainty is

the lack of knowledge about one’s risk). For him, managers were concerned with three

areas:

Formulating purposes and objectives.

Maintaining organizational communication and

Securing necessary services from others

For a manager who fails to handle any of these three areas, the problems like

absenteeism, unproductivity, dissatisfaction start.

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Mr. R. Krishna Murthy, in his editorial article “Controlling Absenteeism” ,mentions the

following :

Absenteeism is a problem that afflicts industry uniformly. The problem of absenteeism

gets aggravated during the harvest season, during the monsoon, when many working in

industries go back to the villages. Festival seasons and the marriage seasons also

contribute to the absenteeism problem. In many cases, absenteeism can go even about

40% of the total workforce and poses serious problems for an organization. In the process

industries, the problem of absenteeism has become serious, for overtime is required to be

paid to employees who have to continue working because their relievers don’t turn up

and those working two shifts are not just a few in number. One of the ways to check

absenteeism is to make the employee realize the value of a job. This is taken for granted.

The managements have also to share in the blame for very few organizations have taken

consistent and effective steps to control absenteeism. While counseling works with about

10% of the chronic absentees to their senses. A few organizations have also associated

the union in the process of controlling absenteeism. Before the organization decides to

terminate an employee where, inspite of involvement of the union, the attendance of an

employee does not improve, the organization terminates the employee.

According to one line of thought, absenteeism is due to lack of ‘commitment on the part

of the workforce’ kera Clark and his associates are of the opinion that “ since the degree

of commitment varies with the degree of countries industrial growth or maturity,

absenteeism is inversely related to the industrial development.

Absenteeism is more than a behaviour pattern writes Doctor C. Veil and is regarded

differently by the employer

2. ATTRITION RATE :

Churn rate (sometimes called attrition rate), in its broadest sense, is a measure of the

number of individuals or items moving into or out of a collective over a specific period of

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time. It is one of two primary factors that determine the steady-state level of customers a

business will support. The term is used in many contexts, but is most widely applied in

business with respect to a contractual customer base. For instance, it is an important

factor for any business with a subscriber-based service model, including mobile

telephone networks and pay TV operators. The term is also used to refer to participant

turnover in peer-to-peer networks. The phrase is based on the English verb “churn”,

meaning 'to agitate or produce violent motion'.

Customer base

Churn rate, when applied to a customer base, refers to the proportion of contractual

customers or subscribers who leave a supplier during a given time period. It is a possible

indicator of customer dissatisfaction, cheaper and/or better offers from the competition,

more successful sales and/or marketing by the competition, or reasons having to do with

the customer life cycle. The churn rate can be minimized by creating barriers which

discourage customers to change suppliers (contractual binding periods, use of proprietary

technology, unique business models, etc.), or through retention activities such as loyalty

programs. It is possible to overstate the churn rate, as when a consumer drops the service

but then restarts it within the same year. Thus, a clear distinction needs to be made

between 'gross churn', the total number of absolute disconnections, and 'net churn', the

overall loss of subscribers or members. The difference between the two measures is the

number of new subscribers or members that have joined during the same period.

Suppliers may find that if they offer a loss-leader“ introductory special”, it can lead to a

higher churn rate and subscriber abuse, as some subscribers will sign on, let the service

lapse, then sign on again to take continuous advantage of current specials.

Employee turnover

I n some business contexts, churn rate could also refer to high employee turnover within a

company. For instance, most fast food restaurants have a routinely high churn rate among

employees. For larger companies, such as Fortune 500 companies, the attrition rate tends

to be much lower compared to a Fast Food franchise. The company size and industry also

play a key role in attrition rate. An “acceptable” attrition rate for a given company is

relative to its industry. It would not likely be useful to compare the attrition of Fast Food

http://en.wikipedia.org/wiki/Mobile_telephone

http://en.wikipedia.org/wiki/Mobile_telephone

http://en.wikipedia.org/wiki/Pay_TV

http://en.wikipedia.org/wiki/Peer-to-peer

http://en.wiktionary.org/wiki/churn

http://en.wikipedia.org/wiki/Loss-leader

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employees with a Fortune 500 company in a corporate setting. Regardless of industry or

company size, attrition rate tends to be highest among the lowest paying jobs, and lowest

for the highest paying jobs.

Attrition Rate has always played a role in how cash flow is affected for employee payroll.

For example, if a company has 10,000 employees, and needs to save money on payroll, it

may be wise to simply institute a temporary “hiring freeze” knowing that some people

will leave the company through natural attrition, thus saving employee payroll by not

replacing or hiring new employees. It could be expected that if the average employee

makes $40,000 per year, and the company has 10,000 employees, a natural attrition rate

could be between 1% and 5% depending on the size and industry of the company. A rate

of 5% or more for a larger company most often indicates layoffs in addition to natural

attrition, early retirement, and firing.

Employee moves

Churn rate can also describe the number of employees that move within a certain period.

For example, the annual churn rate would be the total number of moves completed in a

12-month period divided by the average number of occupants during the same 12-month

period. Monthly and quarterly churn rates can also be calculated.

Talent or human resource is a major asset for any company. Company Invest high

amount of money for their recruitment, selection & training and what happens to

company if these Talents or Employees leave the organization in short while seeking new

opportunities.

Indian Pharmaceutical Industry is one of the fastest growing knowledge based sector

with annual attrition rate of near about 30-35% compared to the global Pharmaceutical

attrition rate of 10-12% per annum. Current statistics show that higher attrition rate

problem mainly exists in Marketing and R&D departments."" Attrition rate in R&D is

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very high even higher then marketing, the reason may be shortage of skilled and

experienced R&D professionals or increasing opportunities due to globalization and

R&D outsourcing in India which have created a sudden demand for skilled research

peoples.

Major reasons for high attrition rate stated by employees are poor management,

uninteresting job, lack of motivation, job lacking opportunity for future advancement, and

inadequate salary or compensation plan. The immediate gain in salary package was found

to be responsible for job change in 61 per cent of the cases.

Leaving company by the employee not only leads to loss of money for the company in

his training and development of knowledge but it also increase the threat of information

security if employee moves to rival company and loss of the business ( from the

customers the employee directly deals with) .

Attrition is a universal phenomenon and no industry is devoid of it, but the degree

fluctuates from industry to industry. “Major pharmaceutical companies in India are age-

old and established, having their own culture and work practices and therefore, employee

turnover will be a common phenomenon in such companies. But the CRO's are in a

nascent stage and it's too early to comment,” Abraham says. According to Beena Handa,

Vice-President-HRM of Claris Lifesciences, attrition is a serious issue in the

pharmaceutical industry because the industry is knowledge-based and hence employees

are its “assets”.

Many HR experts believe that money, though a key factor, is not the only one which

makes employees quit. “Attrition also happens when people hate their working

conditions, do not like their team-mates or perhaps do not like what they are doing. There

are also cases when people leave their job for family reasons or when they wish to

migrate. For example, girls often leave their jobs when they get married and shift to

another city,” says Handa.

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Experts also believe that organisational culture has a great impact on who stays and who

goes. And the culture of an organisation is determined by the quality of the relationship

between bosses and their subordinates. According to a popular saying—employees never

leave the company, they leave their bosses. An inefficient boss creates poor work culture,

which is one of the frequent reasons for quitting.

Employers often fail to understand the importance of providing opportunities for

development of their employees or their career growth. A conducive working

atmosphere, good culture, training and career growth with adequate salary are some

provisions that control attrition, according to Abraham. Pagdiwalla asserts that at Intas,

organisational culture does not give way for attrition. “We have an open, vibrant and

dynamic culture where there is a lot of space for communication too,” he says.

“Every employee comes to his organisation with some aspiration,” says Handa. An

organisation is viewed as a place where employees meet their aspirations of growth and

development, values of trust, teamwork and transparency. If a company respects them

and their skills, realise their potential and provide them with a healthy environment to

learn and grow with flexible compensation, employees take that as a strong reason to stay

on. Recognising the contribution of outstanding achievers also inspires others to try hard

and put in their best. A good organisational behaviour also focuses on areas like training,

career development and believe in equipping workforce better on the professional front.

Experts say that good organisational behaviour is instrumental in extending the tenure of

employees in the organisation as it increases their self-esteem, confidence, morale and

motivation. A substantial growth of employee's self-esteem is as important as the concept

of learning in the industry. Otherwise, experts fear that pharmaceutical organisations will

meet a sorry fate as far as retention policies are concerned.

Supply vs demand

However, Handa describes attrition as the function of demand and supply. “The demand

comes from the growth of the industry and the policy of the company. These two things

decide whether there is a demand of fresher or experienced employees. On the other

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hand, the supply comes from the educational institutions and the market,” she explains.

She asserts that while the supply from the educational institutions is enough to meet the

demands of the pharmaceutical industry, there is a lack of experienced people in the

industry, which in turn has created an imbalance. The imbalance is crucial to the growth

of the industry. While the industry is growing, not all companies are capable of taking

fresh people and groom them. Hence, the current status demands experienced people and

shortage of skills or retaining existing employees pose an issue for the industry.

Increasing the pie

In the current scenario, the demand of experienced and good employees is actually

outstripping the supply. In such a situation, higher salary structures pose a major

challenge in controlling attrition levels in the industry. Moreover, the salary growth plan

is not well defined as well. All this encourages poaching by companies offering higher

salaries. Though the salary is decided keeping in line with the market trends, the

qualification, experience and the attitude of the individual matters. “Salary or even

increments are dependent very much on what kind of value adding the person is or will

do in the organisation,” says Handa. Agrees Abraham. He adds, “Internal imbalances

should be avoided.”

When it comes to attracting talent, throwing fat carrots at potential employees can

boomerang on the company. According to Pagdiwalla, fighting with salaries,

prerequisites or designations as retention tools can prove to be self defeating since rivals

can also follow the same path. Besides, HR experts from the industry believes that out

paying is not a winning tactic for companies. The organisation's reward strategy reflects

its power to drive quality employees. Apart from salary, recognition of work is a healthy

retention strategy. If the organisation values its employees, recognises and appreciates

their skills and work, it pays. “It is important to keep an eye on fast track people who are

intelligent and excellent performers. Performance is a primary requirement; therefore,

excellent performers should be valued. They should be identified, nurtured and provided

growth opportunity,” according to Handa.

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HR's role and strategies

As the struggle for reducing employee attrition rates is intensifying, recruiters are putting

renewed efforts in identifying talent, which is committed and productive. However, while

everyone is competing for talent, in experts' opinion, a hiring spree can be a blunder

sometimes. Stringent recruitment process could help reduce attrition to a certain extent.

An internal referral mechanism is also very useful in reducing attrition rates in

companies. A thorough analysis of a candidate's background or behaviour pattern,

adaptability or liking would help the organisation with good resource pool and less

attrition rates. “When we recruit an outstation candidate, we need to keep in mind that

there could be an inclination for that candidate to move to a place closer to his or her

native place. Such facts should be kept in mind while making a decision,” says Abraham.

Hiring stayers rather than stars is yet another strategy.

According to experts, some of the most talented people often have the tendency to move

on. The reason being their eagerness to climb by shifting from one company to another.

But Handa opines that frequent job hoppers are not the ultimate gainers. “They gain or

earn only in terms of money but those who opt to work in one organisation for long are

able to learn and gain experience which pays in the long term,” she explains. An efficient

HR focuses on creating a good work culture and work out different strategies in line with

organisational philosophy. According to experts, HR managers must use the combination

of growth, learning opportunity and pay attention to employees' personal needs and

participation. The needs of the employees should be regularly gauged through open

communication, polls and feedback mechanisms to maintain consistency in performance

and high motivation levels.

3. EMPLOYEE SATISFACTION :

Employee satisfaction is the terminology used to describe whether employees are happy

and contented and fulfilling their desires and needs at work. Many measures purport that

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employee satisfaction is a factor in employee motivation, employee goal achievement,

and positive employee morale in the workplace.

Employee satisfaction, while generally a positive in your organization, can also be a

downer if mediocre employees stay because they are satisfied with your work

environment.

Factors contributing to employee satisfaction include treating employees with respect,

providing regular employee recognition,empowering employees, offering above industry-

average benefits and compensation, providing employee perks and company activities,

and positive management within a success framework of goals, measurements, and

expectations.

Employee satisfaction is often measured by anonymous employee satisfaction surveys

administered periodically that gauge employee satisfaction. (I do not support these.)

Employee satisfaction is looked at in areas such as:

management,

understanding of mission and vision,

empowerment,

teamwork,

communication, and

coworker interaction.

The facets of employee satisfaction measured vary from company to company.

A second method used to measure employee satisfaction is meeting with small groups of

employees and asking the same questions verbally. Depending on the culture of the

company, either method can contribute knowledge about employee satisfaction to

managers and employees.

Exit interviews are another way to assess employee satisfaction in that satisfied

employees rarely leave companies.

http://humanresources.about.com/od/workrelationships/a/demo_respect.htm

http://humanresources.about.com/od/rewardrecognition/a/recognition_tip.htm

http://humanresources.about.com/od/glossarye/a/empowerment_def.htm

http://humanresources.about.com/od/glossaryp/g/Perks.htm

http://humanresources.about.com/od/employeesatisfaction/a/surveys.htm

http://humanresources.about.com/od/organizationalculture/g/what-is-culture.htm

http://humanresources.about.com/od/whenemploymentends/a/exit_interview.htm

210

Job satisfaction has always been in debate by researchers and practitioners. It has gained

much importance due to its significance for achievement of overall organizational goals.

Rapid changes in the business world have made human resource the most vital asset for

organizations. Now productive and efficient employees are need of time. Employee

productivity and effectiveness is outcome and result of their level of satisfaction with the

job and organization as a whole.

Employees are considered to be one of the most important pillars on which building of

organizations stands. Organizations hold many resources that might be divided in

physical and human resources. Utilization of non-human resources is not possible without

efforts of the human resource. So, human resource is the asset that enables organizations

to reap benefits from other sources. Every activity is directly or indirectly backed by

human efforts. Organizations try to hire and retain best work force in order to get best out

of them. Having employees and retaining them is not enough, having and making best

use of employees is the core of game. For this purpose organizations should hold best

employees. Best employees are those which are willing to put their best for the

betterment of the organization. While selecting such employees the concentration really

moves towards the satisfied employees. Satisfied employees offer huge returns to

organizations. The construct of employee satisfaction is important as satisfied employees

can do more for organization in shape of better performance and productivity (Scheider,

1987). Realizing the significance of employee satisfaction for organization, various

researchers have studied job satisfaction in various perspectives.

Various organizational set ups have been considered as area where job satisfaction should

be studies like: Akhtar, (2000); Bailey (2002); Blegen, (1993); Dutka, (2002);

Ghaseminejad, Siadat & Nouri, (2005); Hollifield, 2005; and Kindt, 2008. Job

satisfaction is an important variable as it is directly related with other organizational

variables like employees engagement with organization, organizational behavior,

organizational involvement, organizational commitment, organizational involvement,

turnover, absenteeism, substance abuse, and deviant behavior of the employees at

workplace (Judge, Thoresen, Bono & Patton, 2001; Kreitner & Kinicki, (2006;) and

Patterson, Warr & West, (2004). Employees who have higher level of satisfaction are less

211

likely to quit their jobs, they are also less willing to opt for other jobs, they remain

present in their job and their absenteeism rate is much low then other workers. This in

return saves various costs of organizations like recruitment and selection cost, as new

hiring would not be required. Similarly, it will save training cost as the existing

workforce would be more knowledgeable (Smith, 1992). Positive attitude (job

satisfaction) of an employee towards his job has significant relationship with increased

effectiveness, reduced absenteeism and reduced turnover of the employees in the

organization (Robbins, Millett, Cacioppe &Waters-Marsh, 1998).

Out of the organizational factors that determine job satisfaction organizational climate is

one of the most important determinants. As noted by McNabb & Spector (2003) that

organizational climate is a factor that has significant bearing on the job satisfaction, and

has a significant and direct bearing on the job related behaviors of workforce. Various

researchers have given different dimensions of organizational climate for instance

Dastmalchian (1991) discussed four dimensions of organizational climate, those are,

Overall environment of organization, employees role conflicts, internal communication,

and support 65 from supervisors. Chappell (1995) also discussed dimensions of

organizational climate and found that there are seven dimensions of organizational

climate, these dimensions are political climate, promotion, regard for personal concern,

evaluation, professional development opportunities, internal communication, and

organizational structure.

Job satisfaction is one of the widely discussed topics of employees’ behaviors at work.

Satisfaction of employees is a concern for organizations as it leads to higher productivity,

low turnover, reduced absenteeism, increased moral and many other positive returns. Out

of the determinants of employee satisfaction organizational climate is an important factor.

Deal & Kennedy, (1992) found that there is a significant relationship between

organizational climate and job satisfaction. The supportiveness of organizational climate

has positive relationship with job satisfaction, commitment with the organization and

performance at work (Burrus, 1996; and Al-rahimi, 1990). In the words of Chen et al.

(2004), employees at workplace make the organizational climate; more motivated

employees will positively affect the climate, devote more time and effort to enhance their

212

skills for future professional development. There are four dimensions of organizational

climate i.e. Employee role conflicts, overall organizational environment, supervisors

support, and internal communication (Dastmalchian, 1991). There are five facets of job

satisfaction i.e. Autonomy, power and control, Participation in decision making,

Interpersonal relations, Compensation package (salary, & fringe benefits), and

Professional effectiveness. Participation in decision making, Interpersonal relations,

Compensation package (salary, & fringe benefits), and Professional effectiveness.

Autonomy, Power and Control & Job Satisfaction

The autonomy is the ability to make decision independent of any external influence.

Moreover, it is the extent to which the job provides freedom, independence, and

discretion to the individuals in scheduling their work and in determining the procedures

to be used in carrying it out. Power is the ability to influence others their behavior and

make them things do (Pfeffer, 1992). Control is to keep the things according to the

structure originally designed (Robbins, 1996).

The research of Twombley and Amey (1994) reflected that autonomous environment is

direct opposite to the structured environment. Luthans (2002) found that autonomy

increases job satisfaction of employees. Positive and significant relationship was found

between autonomy to plan and implement, and job satisfaction (Shaw, Duffy, & Stark,

2000). Similarly, power to lead others also depicts higher level of job satisfaction (Lo,

Min, and Ramayah, 2007). The research findings of Hechanova, Alampay and Franco

(2006) also indicated positive and significant relationship between empowerment of

employees and their job satisfaction. While concluding regarding control, it was found

that employees having trust in management feel more control on their jobs and exhibit

more job satisfaction (Lawler, 1986; Tarver, Canada & Mee-Gaik, 1999; and Vaughan,

1989).

Participation in Decision Making and Job Satisfaction

Participation in decision making has been in great discussion by researchers in various

perspectives. It is important due to its effect on the effectiveness of organization,

213

productivity and employees’ job satisfaction (Conway, 1984). It was found in the study

by Lindelow et al., (1989) that participative decision making has a significant effect on

the effectiveness of the organization; so the process of decision making should be placed

at the gross root level in the organization (Drucker, 1973). Similarly Lindelow (1989)

observed that increased participation in decision making enhances the organizational

performance and job satisfaction of the employees. The research by Campbell, Fowles

and Weber (2004) noted that job satisfaction could be enhanced with increasing

participation in decision making and avoiding ambiguity in identifying responsibilities at

workplace.

Interpersonal Relations (Subordinates, Peers & Superiors) and Job Satisfaction

Interpersonal relations are social associations, connections, or affiliations between the

people interacting with each other at same workplace or from other workplace or working

together in the shape of virtual teams (Lauria, 1964). Greater the level of interpersonal

relation among employees greater will be overall satisfaction level of the employees

(Ronald, Burke & Wilcox, 1969). Similarly, higher the mutual trust of superior and

subordinate more will be internal communication and higher will be satisfaction level

(O’Reilly & Roberts, 1974). Fiddler & Chemers (1974) in his study found that free

communication build good interpersonal relations resulting in job satisfaction of the

employees. If there is harmony amongst the relationships of seniors and subordinates

there would be higher level of satisfaction and commitment of employees (Posner &

Munson, 1979), similar findings were given by Kim (2002).

Compensation Package (salary & fringe benefits) and Job Satisfaction

Employees invest their time and effort in organization/s and expect fair returns for their

investment. In the words of Delery, Gupta Shaw, Jenkins and Ganster (2000); and Rynes,

Schwab & Heneman (1983) there should be balance in investment and return on

investment is important to attract and retain the employees in the organization. The

214

balance between inputs of a person equal to the outcomes of a person has positive

relationship with (motivation) job satisfaction (Adams, 1965).

It was observed by Greenberg (1990) in his study that decreases in compensation causes

job dissatisfaction if such decreases are not justified with some convincing reasons. The

research evidence showed that job satisfaction depends upon the expectations of the

employees as female expects less pay in comparison to their male counterparts and

exhibit more job satisfaction (Major, 1994; Steel & Lovrich, 1987; Varca, Shaffer &

McCauley, 1983). Internal and external equity of fixed pay, pay raise, flexible pay and

other benefits showed positive influence on the job satisfaction of workers (Igalens &

Roussel, 1999). If employees are satisfied about compensation package there will be

higher level of job satisfaction, motivation and organizational commitment (Shapiro,

1976). The research in this regard reflected that comparison with others and fairness had

positive relationship with job satisfaction (Heneman, 1985; and Austin, McGinn &

Susmilch, 1980).

Professional Effectiveness and Job Satisfaction

Professionally effective employees know how to make themselves more effective while

working in the same organization and feel themselves enabled to achieve their objectives

and having less frequency to leave the job and perform better. Effective employees

manage their time, constructively handle conflict, communicate goals and plan more

successful projects in comparison to the employee who feel otherwise. The organization

with effective employees has competitive advantage over other organizations and they

are more focused in the face of obstacles by effectively managing stress at workplace

(Adams & Waddle, 2002). Professional effectiveness can be sharpened through learning

of employees for self-awareness, that is, self-management, social awareness, managing

relationships at the workplace. It was revealed by the research of (Kindt, 2008) that

professional effectiveness, interpersonal relations (subordinates, peer, and supervisors),

and participation in decision making were significantly related with the job satisfaction.

215

CHAPTER 7

DATA INTERPRETATION

216

CHAPTER 7

DATA INTERPRETATION

For the analysis of data information is collected through questionnaire method. List of

questions in systematic ordered is given to the respondents for collection of data.

Information is collected for following demographic factors.

1. City

2. Type of organization

3. Gender

4. Age group

5. Monthly income

6. Experience

1. CITY OF RESPONDENTS

Information about city of respondent is also collected. This information is

classified into three Cities Mumbai, Pune, and Nasik. Classified information is

presented in the following table.

Table 7.1 of Respondents according to City

City

Number of

Respondents Percent

Mumbai 600 60.0

Nasik 100 10.0

Pune 300 30.0

Total 1000 100.0

217

Above table indicate that out of total 1000 respondents, maximum 600 respondents are

from Mumbai, 300 from Pune and remaining 100 from Nasik city. Above information is

presented using pie diagram 7.1 as shown below

2. TYPE OF ORGANIZATION OF RESPONDENTS

Information about Respondent belongs to which type of organization is also

recorded. All respondents are classified into two groups. Group one is known as

MED+LS (Medium Scale Companies and Large Scale Companies). Group two is

referred as SSI (Small-Scale Industry). Classified information is presented in the

following table.

Table 7.2 of Respondents according to type of Organization

Diagram of Respondents according to City

600

100

300

Mumbai

Nasik

Pune

Type of

Organization

Number of

Respondents Percent

MED+LS 375 37.5

SSI 625 62.5

Total 1000 100.0

218

Above table indicate that out of total 1000 respondents, 375 respondents are from

MED+LS and remaining 625 respondents from SSI. Above information is

presented using pie diagram 7.2 as shown below.

3. GENDER OF RESPONDENTS

Information about gender of respondent is collected. This information is classified

into two groups. Group one is known as Male. Group two is referred as Female.

Classified information is presented in the following table.

Table 7.3 of Respondents according to Gender

Gender Frequency Percent

Female 343 34.3

Male 657 65.7

Total 1000 100.0

375

625

Diagram of respondents according to type of organization

MED+LS

SSI

219

Above table indicate that out of total 1000 respondents, 343 respondents are

females and remaining 657 are male respondents. Classified information is

presented using pie diagram 7.3 as shown below

4. AGE GROUP OF RESPONDENTS

Information about age group of respondent is collected. This information is classified

into three groups. Group one is known as Elderly age. Group two is referred as

Middle age. Group three is referred as Young age. Classified information is presented

in the following table.

Table 7.4 of Respondents according to Age group

343

657

Diagram of respondents according to Gender

Female

Male

Age group Frequency Percent

Elderly age 165 16.5

Middle age 371 37.1

Young age 464 46.4

Total 1000 100.0

220

Above table indicate that out of total 1000 respondents, 165 respondents are of Elderly

age, 371 are of Middle age, and 464 are of Young age. Above information is presented

using pie diagram 7.4 as shown below.

5. MONTHLY INCOME OF RESPONDENTS

Information about Monthly income of Respondents is collected. This information is

classified into three groups. Group one is known as High. Group two is known as Low.

Third group is known as Medium. Classified information is presented in the following

table. Table 7.5 of Respondents according to Monthly Income

165

371

464

Diagram of respondents according to age group

Elderly age

Middle age

Young age

Monthly income Frequency Percent

High 207 20.7

Low 373 37.3

Medium 420 42.0

Total 1000 100.0

221

Above table indicate that out of total 1000 respondents, 207 respondents are of High

income, 373 are of low income, and 420 are of Medium income. Above information is

presented using pie diagram 7.5 as shown below.

6. EXPERIENCE OF RESPONDENTS

Information about experience of Respondents is collected. This information is classified

into three groups. Group one is known as highly experienced. Group two is known as less

experienced. Group three is known as medium experienced. Classified information is

presented in the following table.

Table 7.6 of Respondents according to Experience

207

373

420

Diagram of Respondents according to Monthly Income

High

Low

Medium

Experience Frequency Percent

Highly Exp 205 20.5

Less Exp 455 45.5

Medium Exp 340 34.0

Total 1000 100.0

222

Above table indicate that out of total 1000 respondents, 205 respondents are highly

experienced, 455 are less experienced, and 340 are medium experienced. Above

information is presented using pie diagram 7.6 as shown below

205

455

340

Diagram of Respondents according to Experience

Highly Exp

Less Exp

Medium Exp

223

DIMENSIONS OF ORGANIZATION UNDER STUDY.

1. STRUCTURE OF ORGANIZATION

To understand the structure of the organization eleven questions are asked to the

respondents and response to these questions is recorded in the following table 7.6.1

Above table 7.6.1 indicate response for all eleven questions from 1000 respondents.

For question one out of 1000 respondents maximum 293 respondents strongly disagree

for the statement that “Organizational goal and objectives are clear to me.” And

minimum 98 respondents disagree for the statement.

For question two out of 1000 respondents maximum 433 respondents neither agree nor

disagree for the statement that “Employees have shared understanding of what the

organization is suppose to do.” And minimum 12 respondents are disagree for the

statement.

Q. NO. Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 293 98 207 189 213 1000

2 16 12 433 411 128 1000

3 47 234 195 95 429 1000

4 113 174 64 589 60 1000

5 13 185 540 148 114 1000

6 218 430 225 67 60 1000

7 419 238 175 146 22 1000

8 276 374 177 157 16 1000

9 226 336 271 114 53 1000

10 79 247 372 249 53 1000

11 116 212 241 263 168 1000

224

For question three out of 1000 respondents maximum 429 respondents strongly agree for

the statement that “Clear reporting structure have been established .” and minimum 47

respondents strongly disagree for the statement.

For question four out of 1000 respondents’ maximum 589 respondents agree for the

statement that “Roles and responsibilities are clearly defined.” And minimum 60

respondents strongly agree for the statement.

For question five out of 1000 respondents maximum 540 respondents respondents neither

agree nor disagree for the statement that, “Policies for hierarchy of communication are

framed.” And minimum 13 respondents strongly disagree for the statement.

For question six out of 1000 respondents maximum 430 respondents disagree for the

statement that, “Hierarchy of communication is executed according to policies.” And

minimum 60 respondents strongly agree for the statement.

For question seven out of 1000 respondents maximum 419 respondents strongly disagree

for the statement that,” Senior management sets high standard of excellence and


For question eight out of 1000 respondents’ maximum 374 respondents disagree for the

statement that, “senior management treats employees fairly and minimum 16 respondents

strongly agree for the statement.

For question nine out of 1000 respondents maximum 336 respondents disagree for the

statement that, “This organization has activities such as corporate social responsibilities’

and minimum 53 respondents strongly agree for the statement.

For question ten out of 1000 respondents maximum 372 respondents neither agree nor

disagree for the statement that, “There is a quality circle in this organization and


For question eleven out of 1000 respondents maximum 263 respondents agree for the

statement that, “Member of quality circle in this organization meet regularly and

minimum 116 strongly disagree for the statement.

225

Figure 7.6.1 Table of response for Que no 1 to 11

29

3

16

47

11

3

13

21

8

41

9

27

6

22

6

79

11

6

98

12

23

4

17

4

18

5

43

0

23

8

37

4

33

6

24

7

21

2

20

7

43

3

19

5

64

54

0

22

5

17

5

17

7

27

1

37

2

24

1

18

9

41

1

95

58

9

14

8

67

14

6

15

7

11

4

24

9

26

3

21

3

12

8

42

9

60

11

4

60

22

16

53

53

16

8

0

100

200

300

400

500

600

700

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8 Q-9 Q-10 Q-11

No

of

Re

spo

nd

en

ts

Table of response for Que no 1 to 11 Strongly Disagree

Disagree

Neither agree norDisagreeAgree

226

2. LEADERSHIP OF ORGANIZATION

To understand the leadership of the organization five questions are asked to the


Q. NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 179 249 225 192 155 1000

2 385 414 120 47 34 1000

3 489 321 129 44 17 1000

4 493 341 60 58 48 1000

5 503 294 73 66 64 1000

Above table indicate response for all five questions from 1000 respondents

For question one out of 1000 respondents maximum 249 respondents disagree for the

statement that “Our organisation is a leader in the industry” and minimum 155


For question two out of 1000 respondents maximum 414 respondents disagree for the

statement that “Our organisation is a strong competitor in key growth areas” and

minimum 34 respondents are strongly agree for the statement.

For question three out of 1000 respondents maximum 489 respondents strongly disagree

for the statement that “Our organisation leadership has a clear vision of the future..” and


For question four out of 1000 respondents’ maximum 493 respondents strongly disagree

for the statement that “Our organisation leadership has made changes which are positive

for the company” and minimum 48 respondents strongly agree for the statement.

For question five out of 1000 respondents maximum 503 respondents respondents

strongly disagree for the statement that, “Our organisation leadership has made changes

which are positive for me..” And minimum 64 respondents strongly agree for the

statement.

227

Figure 7.6.2 Table of response for Que no 12 to 16

17

9

24

9

22

5

19

2

15

5

38

5 41

4

12

0

47

34

48

9

32

1

12

9

44

17

49

3

34

1

60

58

48

50

3

29

4

73

66

64

0

100

200

300

400

500

600

Q-1 Q -2 Q -3 Q -4 Q -5

Nu

mb

er

of

Re

sp

on

de

nts

Table of Response for Que no 12 to 16

Strongly Disagree

Disagree

Neither agree norDisagree

Agree

Strongly agree

228

3. POLITICAL ENVIRONMENT OF ORGANIZATION

To understand the Political Environment of the organization eight questions are asked to

the respondents and response to these questions is recorded in the following table 7.6.3.

Above table indicate response for all eight questions from 1000 respondents.

For question one out of 1000 respondents maximum 379 respondents neither agree nor

disagree for the statement that,” I feel valued as an employee in this organization” and

minimum 73 respondents strongly disagree for the statement.


statement that ,” I enjoy being part of this organization” and minimum 66 respondents

strongly agree for the statement.


for the statement that ,” Work pressure is uniform for all employees in the organization”


For question four out of 1000 respondents maximum 324 respondents disagree for the

statement that ,” My department has adequate tools ( or resources) to perform our work”


Q. NO. Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 73 186 379 188 174 1000

2 304 405 113 112 66 1000

3 309 210 244 165 72 1000

4 223 324 242 144 67 1000

5 176 147 274 224 179 1000

6 156 257 254 243 90 1000

7 222 296 152 135 195 1000

8 248 220 178 141 213 1000

229

For question five out of 1000 respondents maximum 296 respondents neither agree nor

disagree for the statement that ,” I receive complete information in time to perform my

job well.” and minimum 147 respondents disagree for the statement.


statement that ,” Employees speak very highly about this organization.” and minimum

90 respondents strongly agree for the statement.

For question seven out of 1000 respondents maximum 296 respondents disagree for the

statement that ,” My direct senior listens to my ideas and concern.” and minimum 135

respondents agree for the statement.

For question eight out of 1000 respondents maximum 248 respondents strongly disagree

for the statement that ,” My direct senior makes sure that I have clear goals to achieve.”

and minimum 141 respondents agree for the statement.

Figure no 7.6.3 Table of respondents for Que 17 to 24

73

304

309

223

176

156

222

248

186

405

210

324

147

257 2

96

220

379

113

244

242 2

74

254

152 178

188

112

165

144

224

243

135

141 1

74

66

72

67

179

90

195

213

0

50

100

150

200

250

300

350

400

450

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8

Nu

mb

er

of

Resp

on

den

ts

Table of Respondents for Que no 17 to 24 Strongly Disagree

Disagree


230

4. IMPLEMENTATION OF EVALUATION AND APPRAISAL OF

ORGANIZATION

To understand the Implementation of Evaluation and appraisal of Organization five

questions are asked to the respondents and response to these questions is recorded in the

following table 7.6.4

Q. NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 176 291 299 122 112 1000

2 345 489 100 10 56 1000

3 525 367 56 27 25 1000

4 447 380 81 45 47 1000

5 457 161 214 108 60 1000



disagree for the statement that “I believe senior management appreciates the work I do”



statement that “Do you have system of performance appraisal in your organization” and

minimum 10 respondents agree for the statement.


for the statement that “Nature of appraisal is completely unbiased..” and minimum 25



for the statement that “I get feedback of my performance appraisal” and minimum 45


For question five out of 1000 respondents maximum 457 respondents strongly disagree

for the statement that, “Performance appraisal is adequate in this organization” and


Figure no 7.6.4 Table of respondents from Que no 25 to 29

231

17

6

34

5

52

5

44

7

45

7

29

1

48

9

36

7

38

0

16

1

29

9

10

0

56

81

21

4

12

2

56

27

45

10

8

11

2

10

25

47

60

0

100

200

300

400

500

600

Q-1 Q-2 Q-3 Q-4 Q-5

Nu

mb

er o

f R

esp

on

den

ts

Table of Respondents from Que no 25 to 29 StronglyDisagree

Disagree

Neitheragree norDisagree

Agree

Stronglyagree

232

5. Supervisory style of Organization

To understand the supervisory style of the organization six questions are asked to the


Q. NO. Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 86 226 386 135 167 1000

2 98 276 80 172 374 1000

3 185 218 106 315 176 1000

4 109 246 105 294 246 1000

5 179 203 173 203 242 1000

6 230 110 70 182 408 1000

Above table indicate response for all six questions from 1000 respondents.


disagree for the statement that “Employee have good balance between organizational

work and personal life” and minimum 86 respondents strongly disagree for the

statement.

For question two out of 1000 respondents maximum 374 respondents strongly agree for

the statement that “Supervisory in this organization is satisfactory” and minimum 80

respondents neither agree nor disagree for the statement.

For question three out of 1000 respondents maximum 315 respondents agree for the

statement that “Supervisor always encourage us work as team.” and minimum 106



statement that “Supervisor always appreciate my good performance” and minimum 105


For question five out of 1000 respondents maximum 242 respondents strongly agree for

the statement that, “Supervisor maintain reasonably high standard of performance” and

minimum 173 respondents neither agree nor disagree for the statement.

233

For question six out of 1000 respondents maximum 408 respondents strongly agree for

the statement that, “My supervisor always help me in improving my performance” and

minimum 70 respondents neither agree nor disagree for the statement.


86

98

18

5

10

9

17

9

23

0

22

6

27

6

21

8 2

46

20

3

11

0

38

6

80

10

6

10

5

17

3

70

13

5

17

2

31

5

29

4

20

3

18

2

16

7

37

4

17

6

24

6

24

2

40

8

0

50

100

150

200

250

300

350

400

450

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6

Nu

mb

er

of

Re

sp

on

de

nts

Table of Respondents for Que no 30 to 35 Strongly Disagree

Disagree


Agree

234

6. INTERNAL COMMUNICATION SYSTEM OF THE ORGANIZATION

To understand the internal communication system of the organization ten questions are

asked to the respondents and response to these questions is recorded in the following

table 7.6.6

Q.NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 37 176 367 152 268 1000

2 87 309 71 195 338 1000

3 108 250 110 276 256 1000

4 57 209 181 291 262 1000

5 95 155 176 265 309 1000

6 106 172 115 192 415 1000

7 8 142 244 249 357 1000

8 43 47 134 259 517 1000

9 91 52 117 332 408 1000

10 214 161 107 193 325 1000

Above table indicate response for all ten questions from 1000 respondents.


disagree for the statement that “I feel my inputs is valued by my co-worker” and


For question two out of 1000 respondents maximum 388 respondents strongly agree for

the statement that “Knowledge and information sharing is a group norm across the

organization” and minimum 71 respondents strongly disagree for the statement.

For question three out of 1000 respondents maximum 276 respondents agree for the

statement that “Employees consult each other when they need support.” and minimum

108 respondents strongly disagree for the statement.

235


statement that “Individuals appreciate the personal contribution for their co-workers” and


For question five out of 1000 respondents maximum 309 respondents strongly agree for

the statement that, “I trust the information I receive from senior management” and


For question six out of 1000 respondents maximum 415 respondents strongly agree for

the statement that, “My direct senior gives me helpful feedback on how to be more

effective” and minimum 106 respondents strongly disagree for the statement.

For question seven out of 1000 respondents maximum 357 respondents strongly agree for

the statement that,” I believe vertical communication is suitable in this organization” and


For question eight out of 1000 respondents’ maximum 517 respondents strongly agree for

the statement that, “I believe vertical and horizontal communication is necessary and


For question nine out of 1000 respondents maximum 408 respondents strongly agree for

the statement that, “Interpersonal communication and relationships contributes to

organizational performance’ and minimum 52 respondents disagree for the statement.

For question ten out of 1000 respondents maximum 325 respondents strongly agree for

the statement that, “Our face to face meetings are productive and minimum 107



236

7. CREATIVITY STIMULATION OF ORGANIZATION

To understand creativity stimulation of organization five questions are asked to the


Q.NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 300 303 273 105 19 1000

2 400 340 130 88 42 1000

3 555 246 114 77 8 1000

4 642 147 46 128 37 1000

5 670 169 59 76 26 1000

37

87

10

8

57

95

10

6

8

43

91

21

4

17

6

30

9

25

0

20

9

15

5

17

2

14

2

47

52

16

1

36

7

71

11

0

18

1

17

6

11

5

24

4

13

4

11

7

10

7

15

2

19

5

27

6

29

1

26

5

19

2

24

9

25

9

33

2

19

3

26

8

33

8

25

6

26

2

30

9

41

5

35

7

51

7

40

8

32

5

0

100

200

300

400

500

600

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8 Q-9 Q-10

Nu

mb

er

of

Re

sp

on

de

nts

Table of Respondents for Que no 36 to 45 StronglyDisagreeDisagree

Neither agreenor DisagreeAgree

237


For question one out of 1000 respondents maximum 303 respondents disagree for the

statement that “Roles and responsibilities within the group are understood” and minimum

19 respondents strongly agree for the statement.

For question two out of 1000 respondents maximum 400 respondents strongly disagree

for the statement that “My skills and abilities are fully utilize in this organization” and



for the statement that “I have the opportunity to further develop my skills and abilities”



for the statement that “I find I am challenged in my current job” and minimum 37



for the statement that, “My work adds value to the organization” and minimum 26


238


300

40

0

555

642 670

303 340

246

147

169

273

130

114

46

59

105

88

77

128

76

19 42

8

37

26

0

100

200

300

400

500

600

700

800

Q-1 Q-2 Q-3 Q-4 Q-5

Nu

mb

er o

f R

esp

on

den

ts

Table of Respondents for Que no 46 to 50 Strongly

Disagree

Disagree

Neither

agree nor

DisagreeAgree

Strongly

agree

239

8. ETHICS AND RESPONSIBILITY OF ORGANIZATION

To understand ethics and responsibility of organization eight questions are asked to the


Q.NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 241 289 318 103 49 1000

2 346 401 97 122 34 1000

3 500 257 132 57 54 1000

4 642 158 61 133 6 1000

5 700 215 28 12 45 1000

6 254 182 242 151 171 1000

7 255 109 148 278 210 1000

8 431 129 78 215 147 1000

Above table indicate response for eight questions from 1000 respondents.


disagree for the statement that “Do you think that business ethics is based on individual’s

morals only” and minimum 49 respondents strongly agree for the statement.


statement that “Do you think it is important to have business ethics” and minimum 34



for the statement that “Do you think that business ethics differ in various countries or

societies.” and minimum 54 respondents strongly agree for the statement.


statement that “Do you think that business ethics should only be determined by law” and



for the statement that, “I am acquainted with enterprises or organizations that are

"socially responsible” and minimum 45 respondents strongly agree for the statement.

240

For question six out of 1000 respondents maximum 254 respondents strongly disagree

for the statement that, “As a consumer, I am capable to penalize a enterprise (ex: not

buying its products/services), if I consider it "Socially irresponsible” and minimum 151


For question seven out of 1000 respondents maximum 278 respondents agree for the

statement that,” I am capable to pay more for a product produced by a “socially

responsible" enterprise ” and minimum 210 respondents strongly agree for the statement.

For question eight out of 1000 respondents’ maximum 231 respondents strongly disagree

for the statement that, “Have customers ever asked about environmental or social aspects

regarding your company or its products? and minimum 79 respondents neither agree nor

disagree for the statement.


9. TEAMS AND TEAMS WORK

To understand teams and teams work eight questions are asked to the respondents and

response to these questions is recorded in the following table 7.6.9

24

1

346

500

642

700

254

255

431

289

401

257

158 2

15

182

109

129

318

97 1

32

61

28

242

148

78 103

122

57

133

12

15

1

278

215

49

34 54

6

45

17

1 210

147

0

100

200

300

400

500

600

700

800

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8Nu

mb

er

of

Re

sp

on

de

nts

Table of Respondents from Que no 51 to 58 StronglyDisagree

Disagree

Neitheragree norDisagree

241

Q.NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 24 185 443 195 153 1000

2 287 440 158 76 39 1000

3 283 304 212 114 87 1000

4 161 328 262 161 88 1000

5 138 227 278 215 142 1000

6 81 305 250 247 117 1000

7 108 266 197 211 218 1000

8 95 230 226 197 252 1000

Above table indicate response for eight questions from 1000 respondents.


disagree for the statement that “There is a common and agreed vision of future success

for the team” and minimum 23 respondents strongly disagree for the statement.


statement that “Team members have a common goal which motivates them to achieve a

desired result” and minimum 39 respondents strongly agree for the statement.

For question three out of 1000 respondents maximum 304 respondents disagree for the

statement that “Team members have shared values and beliefs which bind the team

together.” and minimum 87 respondents strongly agree for the statement.

For question four out of 1000 respondents’ maximum 328 respondents disagree for the

statement that “Team members are mutually supportive, willingly helping each other to

overcome problems to achieve success” and minimum 88 respondents strongly agree for

the statement.

For question five out of 1000 respondents maximum 278 respondents neither agree nor

disagree for the statement that, “There is a willingness to be led versus a battle for

leadership” and minimum 138 respondents strongly disagree for the statement.

242


statement that, “Team members recognize their need to work with others versus work

independently” and minimum 81 respondents strongly disagree for the statement.


statement that,” Team workers work hard together to build positive relationships with

each other ” and minimum 108 respondents strongly disagree for the statement.

For question eight out of 1000 respondents’ maximum 252 respondents strongly agree for

the statement that, “Team members confront and resolve conflicts in a healthy and

constructive way and minimum 95 respondents strongly disagree for the statement.


243

24

28

7

28

3

16

1

13

8

81

10

8

95

18

5

44

0

30

4 3

28

22

7

30

5

26

6

23

0

44

3

15

8

21

2

26

2 27

8

25

0

19

7 2

26

19

5

76

11

4

16

1

21

5

24

7

21

1

19

7

15

3

39

87

88

14

2

11

7

21

8

25

2

0

50

100

150

200

250

300

350

400

450

500

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8

Nu

mb

er

of

Re

sp

on

de

nts

Table of Respondents from Que no 59 to 66 StronglyDisagreeDisagree

Neither agreenor DisagreeAgree

Strongly agree

244

6. JOB SATISFACTION OF THE EMPLOYEES OF THE ORGANIZATION

To understand Job Satisfaction of the Employees of the Organization fifteen questions are

asked to the respondents and response to these questions is recorded in the following

table 7.6.10

Q.NO Strongly

Disagree

Disagree Neither

agree nor

Disagree

Agree Strongly

agree

Total

1 38 196 383 223 160 1000

2 183 335 184 121 177 1000

3 170 271 230 162 167 1000

4 111 288 275 201 125 1000

5 114 191 223 228 244 1000

6 53 311 279 213 144 1000

7 67 310 164 169 290 1000

8 126 228 191 250 205 1000

9 134 180 282 148 256 1000

10 65 190 138 283 324 1000

11 96 134 184 320 266 1000

12 138 268 116 237 241 1000

13 310 135 87 231 237 1000

14 238 210 134 215 203 1000

15 460 125 133 179 103 1000

Above table indicate response for all fifteen questions from 1000 respondents.


disagree for the statement that “Nature of the work comfortable to me ” and minimum 38



statement that “Nature of my job match with my Qualification” and minimum 121


245

For question three out of 1000 respondents maximum 271 respondents disagree for the

statement that “I find my job is interesting.” and minimum 162 respondents agree for the

statement.

For question four out of 1000 respondents’ maximum 288 respondents disagree for the

statement that “I require to do overtime for completion of work” and minimum 125


For question five out of 1000 respondents maximum respondents 244 strongly agree for

the statement that, “It is possible to get leave whenever you require” and minimum 114



statement that, “All employees in this organization are treated equally” and minimum 53



statement that,” I am proud and happy to work for this organization” and minimum 67


For question eight out of 1000 respondents’ maximum 250 respondents agree for the

statement that, “ I am confident that I can get ahead in this organization because of my

merits” and minimum 126 respondents strongly disagree for the statement.

For question nine out of 1000 respondents maximum 282 respondents neither agree nor

disagree for the statement that, “ I am involved in the performance of the organization”

and minimum 134 respondents strongly disagree for the statement.

For question ten out of 1000 respondents maximum 324 respondents strongly agree for

the statement that “I can easily communicate with my bosses and co-workers” and


For question eleven out of 1000 respondents maximum 320 respondents agree for the

statement that “ I trust my collouges and Senior management” and minimum 96


For question twelve out of 1000 respondents maximum 268 respondents disagree for the

statement that,” I have enough resources to get my job done best” and minimum 116


246

For question thirteen out of 1000 respondents’ maximum 310 respondents strongly

disagree for the statement that “There are enough opportunities in the organization for

you to be able to learn and grow?” “and minimum 87 respondents neither agree nor

disagree for the statement.

For question fourteen out of 1000 respondents maximum 238 respondents strongly

disagree for the statement that, “Does your job make you feel important?” and minimum

134 respondents neither agree nor disagree for the statement.

For question fifteen out of 1000 respondents maximum 460 respondents strongly

disagree for the statement that, “ Do you agree with the mission and vision of the ’ and

minimum 103 respondents strongly agree for the statement

Figure no 7.6.10 Table of Respondents from Que no 1 to 15

38

18

3

17

0

11

1

11

4

53

67

12

6

13

4

65

96

13

8

31

0

23

8

46

0

19

6

33

5

27

1 28

8

19

1

31

1

31

0

22

8

18

0

19

0

13

4

26

8

13

5

21

0

12

5

38

3

18

4

23

0

27

5

22

3

27

9

16

4 1

91

28

2

13

8

18

4

11

6

87

13

4

13

3

22

3

12

1

16

2

20

1 2

28

21

3

16

9

25

0

14

8

28

3

32

0

23

7

23

1

21

5

17

9

16

0 17

7

16

7

12

5

24

4

14

4

29

0

20

5

25

6

32

4

26

6

24

1

23

7

20

3

10

3

0

50

100

150

200

250

300

350

400

450

500

Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8 Q-9 Q-10 Q-11 Q-12 Q-13 Q-14 Q-15

Nu

mb

er

of

Re

sp

on

de

nts

Table of Respondents from Que no 1 to 15 Strongly Disagree

Disagree

Neither agree norDisagreeAgree

Strongly agree

247

CHAPTER 8

HYPOTHESIS TESTING

248

CHAPTER 8

HYPOTHESIS TESTING

HYPOTHESIS-1

Null Hypothesis-: There is no association between Type of Organization and level of

combination of employees.

Alternative Hypothesis-: There is association between Type of Organization and level

of combination of employees.

Table 8.1 Chi-Square Test

To test above null hypothesis Chi-Square test is applied to assess two types of

comparison: tests of goodness of fit and tests of independence and results of test are as

follows:

Chi-Square Calculated Value = 329.687a

Chi-Square Table Value (5% l.o.c.) = 16.478a

Degree of Freedom = 2

Result of Test = Rejected

Since Calculated value (329.687a) is greater than Table value (16.478

a).

Chi-square test is rejected. It is concluded that there is association between Type of

Organization and combination of employees .T-Test is used to compare the means of

the samples but it might become unreliable in case of more than two samples. If we only

compare two means, then the t-test (independent samples) will give the same results as

the ANOVA. So due to this to test null hypothesis Anova test is applied and the results of

the test are shown in table 8.2 below

ANOVA for Type of Organisation

Sum of Squares df Mean Square F

Structur_Group1 Between Groups 6618.270 1 6618.270 455.397

Within Groups 14503.899 998 14.533

Total 21122.169 999

http://en.wikipedia.org/wiki/Goodness_of_fit

http://en.wikipedia.org/wiki/Independence_(probability_theory)

249

Leadershi_Group2 Between Groups 18824.961 1 18824.961 402.289

Within Groups 46701.039 998 46.795

Total 65526.000 999

Political_Environment_

Group3

Between Groups 246.400 1 246.400 12.205

Within Groups 20147.293 998 20.188

Total 20393.694 999

Evaluation_and_Appri

sal_Group4

Between Groups .154 1 .154 .027

Within Groups 5680.230 998 5.692

Total 5680.384 999

Supervisory_style_Gro

up5

Between Groups 1.852 1 1.852 .092

Within Groups 19990.637 998 20.031

Total 19992.489 999

Communication_syste

m_Group6

Between Groups 6.912 1 6.912 2.149

Within Groups 3210.684 998 3.217

Total 3217.596 999

Creativity_Stimulation_

Group7

Between Groups 6428.827 1 6428.827 129.056

Within Groups 49714.773 998 49.814

Total 56143.600 999

Ethics_and_Social_res

ponsibility_Group8

Between Groups 3955.234 1 3955.234 299.533

Within Groups 13178.260 998 13.205

Total 17133.494 999

Team_work_Group9 Between Groups 2025.844 1 2025.844 191.423

Within Groups 10561.900 998 10.583

Total 12587.744 999

JOB_SATISFACTION Between Groups 570.825 1 570.825 26.617

Within Groups 21402.676 998 21.446

Total 21973.501 999

The results of the test was accepted which shows that there is no association between

Type of Organization and level of combination of employees. So no other test such as T-

test was applied

250

Table 8.3 of Respondents according to Type of organization and combination of

Employees

There are 164 respondents having high level of combination of organization of which 164

are from medium and large scale organizations and there are no respondents from small

scale organizations having high level of combination of organization

There are 64 respondents having low level of combination of organization of which 10

are from medium and large scale organizations and there are 54 from small scale

organizations having low level of combination of organization.

There are 772 respondents having medium level of combination of organization of which

201 are from medium and large scale organizations and 571 from scale organizations

having medium level of combination of organization.

Above information is presented by using multiple bar diagram 8.1

Level_of_Combine

Score of Type of

Organization

high Low Medium Total

MED+LS 164 10 201 375

SSI 0 54 571 625

Total 164 64 772 1000

251

HYPOTHESIS-2

Null Hypothesis-: There is no significant difference between organizational behavior in

different cities. (Mumbai, Pune, Nasik)

Alternative Hypothesis-: There is significant difference between organizational

behavior in different cities. (Mumbai, Pune, Nasik)

To study null hypothesis score of organisational behavior of three cities are calculated

separately. Paired t-test is used when the independent variable has two levels. Mean and

standard deviation of these scores are also obtained are presented in the following table

8.4

164

10

201

0

54

571

0

100

200

300

400

500

600

high Low Medium

No

of

Resp

on

den

ts

Combination

Diagram of Respondents according to Type of Organization and Combination of Employees

MED+LS

SSI

252

Paired T – Test for Organizational Behavior

Mean

Number of

Respondents

Std.

Deviation

Pair 1 Organisational Behavior of Mumbai 53.31 600 2.60

Organisational Behavior of Pune 51.19 300 0.99

Pair 2 Organisational Behavior of Mumbai 53.31 600 2.60

Organisational Behavior of Nasik 49.56 100 1.55

Pair 3 Organisational Behavior of Pune 51.19 300 0.99

Organisational Behavior of Nasik 49.56 100 1.55

To test is there significant difference between among organizational behavior

Of three cities T-test is applied to determine whether there’s a significant difference

between two group means and results of test are as follows. Table 8.5

Result of T-test for Organisational Behavior

Calculated

T- value Table T- Value Result of Test

Pair 1 Organisational Behavior of Mumbai

- Organisational Behavior of Pune

17.58 1.96 Significant

Pair 2 Organisational Behavior of Mumbai

- Organisational Behavior of Nasik


Pair 3 Organisational Behavior of Pune -

Organisational Behavior of Nasik


253

Above table 8.5 indicate that when calculated value of T-test is greater than Table value,

difference is significant. There is significant difference between among organizational

behavior of three cities. Null hypothesis is accepted. Chi square test is not applied

because there is no comparison and assessment required for tests of goodness of fit and

tests of independence. ANOVA is not applied because there are less groups to compare.

Paired T – Test for Job Satisfaction (table 8.6 )

Mean N Std. Deviation

Pair 1 Job Satisfaction of Mumbai 72.94 600 3.50

Job Satisfaction of Pune 71.64 300 2.70

Pair 2 Job Satisfaction of Mumbai 72.94 600 3.50

Job Satisfaction of Nasik 62.63 100 5.79

Pair 3 Job Satisfaction of Pune 71.64 300 2.70

Job Satisfaction of Nasik 62.63 100 5.79

Result of T-test for Job satisfaction

Calculated

T- value

Table T-

Value Result of Test

Pair 1 Job Satisfaction of Mumbai - Job

Satisfaction of Pune


Pair 2 Job Satisfaction of Mumbai - Job

Satisfaction of Nasik


Pair 3 Job Satisfaction of Pune - Job

Satisfaction of Nasik




254


difference is significant. There is significant difference between among organizational

behavior of three cities. Null hypothesis is accepted which proves that there is no

significant difference between organizational behavior in different cities. (Mumbai, Pune,

Nasik). Hence Chi-Square is not applied because there is no comparison and assessment

required for tests of goodness of fit and tests of independence. ANOVA is not applied

because there are less groups to compare.

HYPOTHESIS-3

Null Hypothesis-: There is no association between organizational behavior and

employee’s satisfaction.

Alternative Hypothesis-: There is no association between organizational behavior and

employee’s satisfaction.



follows: (table 8.8)

Chi-square Calculated Value = 248.69

Chi-square Table Value = 9.49


Result of test = Rejected.

Above information indicate that chi-square calculated value (248.69) is greater than table

value (9.49). Therefore test is rejected and it is concluded that there is association

between level of Organizational behavior and level of employee satisfaction. To

understand nature of correlation between level of organization and level of Employee

satisfaction, Karl Pearsons correlation coefficient is obtained. It is calculated for all

three regions separately and also taken together.

Karl Pearson’s coefficient of correlation for 600 respondents in Mumbai between

organizational behavior and employee’s satisfaction is calculated. It is r = 0.194..It

indicate there is positive correlation.





255

Karl Pearson’s coefficient of correlation for 300 respondents in Pune between

organizational behavior and employee’s satisfaction is calculated. It is r = 0.004.It

indicate there is very low positive correlation.

Karl Pearson’s coefficient of correlation for 100 respondents in Nasik,between

organizational behavior and employee’s satisfaction is calculated. It is r = 0.051.It

indicate there is very low positive correlation.

Karl Pearson’s coefficient of correlation for all 1000 respondents in all cities taken

together, between organizational behavior and employee’s satisfaction is calculated. It is

r = 0.370. It indicates there is positive correlation. Hence Null hypothesis got accepted.

To test above null hypothesis level of organizational behavior and level of Employee

satisfaction is considered. Bivariate frequency table of their results is obtained to show

the total row and total column and report the marginal frequencies or marginal

distribution , while the body of the table reports the joint frequencies presented as given

below..

Table 8.9 of respondents according to Level of organizational behavior and

level of Employee satisfaction.

Level of

Organisation Level of Employee satisfaction

Total Low Medium High

Low 34 28 2 64

Medium 40 635 97 772

High 0 113 51 164

Total 74 776 150 1000

There are 74 respondents having low level of Job Satisfaction of organization of which

34 respondents are having low level of organization behavior and 40 respondents are

256

having medium level of organization behaviour. There is no respondent having high level

of organization behaviour

There are 776 respondents having medium level of Job Satisfaction of organization of

which 28 respondents are having low level of organization behaviour. 635 respondents

are having medium level of organization behaviour. 113 respondents are having high

level of organization behaviour.

There are 150 respondents having high level of Job Satisfaction of organization of which

2 respondents are having low level of organization behaviour. 97 respondents having

medium level of organization behaviour. 51 respondents having high level of

organization behaviour

Above information is presented by using multiple bar diagram to make clear data which

has learned values in figure no 8.2

257

HYPOTHESIS-4

Null Hypothesis-: There is no association between Leadership of Organization and job

satisfaction of employees.

34

28

2

40

63

5

97

0

11

3

51

0

100

200

300

400

500

600

700

Low Medium High

Nu

mb

er

of

Resp

on

den

ts

Employee Satisfaction

Diagram of Respondents according to Level of Organizational Behaviour and level of employees behaviour

Low

Medium

High

258

Alternative Hypothesis-: There is association between Leadership of

Organization and job satisfaction of employees.


comparison: tests of goodness of fit and tests of independence and results of

test are as follows: (table 8.10)

Chi-Square Calculated Value = 32.81

Chi-Square Table Value (5% l.o.c.) = 9.46



Since Calculated value (32.81) is greater than Table value (9.46)

Chi-square test is rejected. It is concluded that there is association between

Leadership of Organisation and job satisfaction of employees. T-Test is

used to compare the means of the samples but it might become unreliable in

case of more than two samples. If we only compare two means, then the t-test

(independent samples) will give the same results as the ANOVA. So due to this

to test null hypothesis Anova test is applied to test above null hypothesis and

results of test are as follows: (table 8.11)

Sum of

Squares

df Mean

Square

F

Leadership

Between

Groups

Between

Groups

18824.961 1 18824.961 402.289

Within

Groups

46701.039 998 46.795

Total 65526.000 999

The Result of ANOVA test is accepted . This proves that there is no association

between Leadership of Organization and job satisfaction of employees. Hence

Null Hypothesis is accepted.

Table 8.12 of Respondents according to Leadership of organization and Job

satisfaction of Employees.



259

There are 74 respondents having low job satisfaction of which 6 respondents are from

low level of leadership, 66 respondents are from medium level of leadership. And only 2

respondents are from high level of leadership.

Also there are 776 respondents having medium job satisfaction of which only 11

respondents are from low level of leadership, 673 respondents are from medium level of

leadership and remaining 92 respondents are from high level of leadership.

And there are 150 respondents having high job satisfaction of which only 2 respondents

are from low level of leadership, 116 respondents are from medium level of leadership.

And remaining 32 respondents are from high level of structure

Above information is presented by using multiple bar diagram. Figure 8.3

Score of Leadership of

Organisation Level of Job satisfaction


Low 6 11 2 19

Medium 66 673 116 855

High 2 92 32 126

Total 74 776 150 1000

260

HYPOTHESIS-5

There is no association between job satisfaction and demographic factors such as Gender,

Age, and Income of employees.

Null Hypothesis: There is no association between Gender and job satisfaction of

employees.

Alternative Hypothesis: There is association between Gender and job satisfaction of

employees.



follows: table (8.13)




Result of Test = Accepted

Since Calculated value (1.336a) is less than Table Value (4.99)

Chi-square test is accepted. It is concluded that there is no association between Gender

Diagram of respondents according to Leadership of organization and

Job satisfaction of Employees

6 11 2

66

673

116

2

92

32

0

100

200

300

400

500

600

700

800

Low Medium High

Job satisfaction

No

. o

f R

esp

on

den

ts

Low

Medium

High



261

and job satisfaction of employees. The Null hypothesis got accepted. Hence no further

test such as ANOVA, T-test are applied to prove the Hypothesis.

Table 8.14 of Respondents according to Gender and job


Gender Level_of_Job_satisfaction

High Low Medium Total

Female 46 28 269 343

Male 104 46 507 657

Total 150 74 776 1000

There are 150 respondents having high level of Job Satisfaction of organization of which

46 are female and 104 are male having high level of Job Satisfaction of organization

There are 74 respondents having low level of Job Satisfaction of organization of which

28 are female and 46 are male having low level of Job Satisfaction of organization.

There are 776 respondents having medium level of Job Satisfaction of organization of

which 269 are female and 507are male from medium level of job satisfaction of

organization.

Above information is presented by using multiple bar diagram to make data clear which

as learned values in Figure no 8.4

262

HYPOTHESIS-5

Null Hypothesis: There is no association between Age and job satisfaction of employee

Alternative Hypothesis: There is association between Age and job satisfaction of

employee








Since calculated value (6.595a) is less than Table Value (9.49) Chi-square test is

accepted. It is concluded that there is no association between age and job satisfaction of

46 28

269

104

46

507

0

100

200

300

400

500

600

High Low Medium

No

of

Resp

on

den

ts

Job Satisfaction

Diagram of resondents according to Gender and Job satisfaction of Employees

Female

Male



263

employees. Hence the Null Hypothesis got accepted. So no other test such as ANOVA,

T-test are applied.

There are 150 respondents having high level of job satisfaction of Organization of which

28 are of Elderly age and 56 are of Middle age and 66 are of Young age having high level

of job satisfaction of organization.

There are 74 respondents having low level of job satisfaction of organization of which 13

are of Elderly age and 18 are of middle age and 43 are of Young age having low level of

job satisfaction of organization.

There are 776 respondents having Medium level of job satisfaction of organization of

which 124 are of Elderly age and 297 are of Middle age and 355 are of Young age having

medium level of job satisfaction of organization.

Above information is presented by using multiple bar diagram is used to make data clear

which has learned values in Figure no 8.5

Table 8.16 of Respondents according to age and job


Agegroup Level_of_Job_satisfaction


Elderly age 28 13 124 165

Middle age 56 18 297 371

Young age 66 43 355 464

Total 150 74 776 1000

264

HYPOTHESIS-5

Null Hypothesis: There is no association between income and job satisfaction of

employees.

Alternative Hypothesis: There is association between income and job satisfaction of

employees.





Chi-Square Table Value (5% l.o.c.) = 6.057a

28

13

124

56

18

297

66

43

355

0

50

100

150

200

250

300

350

400

High Low Medium

No

of

Re

sp

on

de

nts

Job satisfaction

Diagram of Respondents according to age and job satisfaction of Employees Elderly

age

Middleage



265



Since Calculated value (1.711a) is less than Table Value (6.057

a)

Chi-square test is accepted. It is concluded that there is no association between incomes

and job satisfaction of employees. Hence Null Hypothesis is accepted so no further test

such as ANOVA, T-test are applied.

Table 8.18 of Respondents according to income and job satisfaction of

Employees

There are 150 respondents having high level of job satisfaction of Organization of which

28 are of high income and 52 are of low income and 72 are of medium income having

high level of job satisfaction of organization.

There are 74 respondents having low level of job satisfaction of organization of which 18

are of high income and 33 are of low income and 23 are of medium income having low

level of job satisfaction of organization.

There are 776 respondents having Medium level of job satisfaction of organization of

which 163 are of high income and 288 are of low income and 325 are of medium income

having medium level of job satisfaction of organization.

Above information is presented by using multiple bar diagram is used to

make data clear which has learned values in Figure no 8.6

Monthly

Income

Level_of_Job_satisfaction


High 26 18 163 207

Low 52 33 288 373

Medium 72 23 325 420

Total 150 74 776 1000

266

26 18

163

52

33

288

72

23

325

0

50

100

150

200

250

300

350

High Low Medium

No

of

Re

sp

on

de

nts

Job satisfaction

Diagram of respondents according to income and Job satisfaction of Employees

High

Low

Medium

267

HYPOTHESIS-6

Null Hypothesis: There is no association between Political Environment of

Organisation and job satisfaction of employees.

Alternative Hypothesis: There is association between Political Environment

of Organisation and job satisfaction of employees.


comparison: tests of goodness of fit and tests of independence and results of

test are as follows: (table 8.19)





Since Calculated value (60.92) is greater than Table value (9.46)Chi-square

test is rejected. It is concluded that there is association between Political

Environment of Organisation and job satisfaction of employees. Null

Hypothesis is rejected. T-Test is used to compare the means of the samples

but it might become unreliable in case of more than two samples. If we only

compare two means, then the t-test (independent samples) will give the same

results as the ANOVA. So due to this to test null hypothesis Anova test is

applied to test above null hypothesis and the results of the test are shown in

table 8.20 below


Political

Environment

Group3

Between

Groups

8.343 2 4.172 .204

Within

Groups

20385.351 997 20.447

Total 20393.694 999

The Result of ANOVA test is accepted. There is no association between

Political Environment of Organisation and job satisfaction of employees.

Hence Null Hypothesis got accepted.

Table 8.21 of Respondents according to political environment of organization

and Job satisfaction of Employees.



268

Table 8.21 Respondents according to political environment and job satisfaction

of employees

Score of Political Environment of



Low 27 129 16 172

Medium 47 502 78 627

High 0 145 56 201

Total 74 776 150 1000


low level of Political Environment, 47 respondents are from medium level of Political

Environment. And no respondents are from high level of Political Environment.

Also there are 776 respondents having medium job satisfaction of which 129

respondents are from low level of Political Environment, 502 respondents are from

medium level of Political Environment And remaining 145 respondents are from high

level of Political Environment.

And there are 150 respondents having high job satisfaction of which 16 respondents are

from low level of Political Environment, 78 respondents are from medium level of

Political Environment. And remaining 56 respondents are from high level of Political

Environment.

Above information is presented by using multiple bar diagram. Figure no 8.7

269

HYPOTHESIS-7

Null Hypothesis: There is no association between Evaluation and Appraisal of


Alternative Hypothesis: There is association between Evaluation and Appraisal of


To test above null hypothesis Chi-Square test is applied applied to assess two types of








Chi-square test is rejected. It is concluded that there is association between Evaluation

and Appraisal of Organisation and job satisfaction of employees. Null hypothesis is

rejected. T-Test is used to compare the means of the samples but it might become

Diagram of respondents according to Political Environment of


27

129

16

47

502

78

0

145

56

0

100

200

300

400

500

600

Low Medium High

Job satisfaction

No

. o

f R

esp

on

den

ts

Low

Medium

High



270

unreliable in case of more than two samples. If we only compare two means, then the t-

test (independent samples) will give the same results as the ANOVA. So due to this to

test null hypothesis Anova test is applied and the results of the test are shown in table

8.23 below


Evaluation

and Appraisal

Group4

Between

Groups

59.198 2 29.599 5.250

Within

Groups

5621.186 997 5.638

Total 5680.384 999

The Result of ANOVA test is accepted. There is no association between Evaluation and

Appraisal of Organization and job satisfaction of employees. Hence Null Hypothesis is

accepted.


low level of Evaluation and Appraisal, 32 respondents are from medium level of

Table 8.24 of Respondents according to Evaluation and Appraisal of


Score of Evaluation and Appraisal

of Organisation Level of Job satisfaction


Low 14 8 0 22

Medium 32 483 97 612

High 28 285 53 366

Total 74 776 150 1000

271

Evaluation and Appraisal. And remaining 28 respondents are from high level of

Evaluation and Appraisal.

Also there are 776 respondents having medium job satisfaction of which only 8

respondents are from low level of Evaluation and Appraisal, 483 respondents are from

medium level of Evaluation and Appraisal, And remaining 285 respondents are from high

level of Evaluation and Appraisal.

And there are 150 respondents having high job satisfaction of which not a single

respondent is from low level of Evaluation and Appraisal, 97 respondents are from

medium level of Evaluation and Appraisal, . And remaining 53 respondents are from high

Evaluation and Appraisal..

Above information is presented by using multiple bar diagram is used to make clear data

which has learned values in Figure no 8.8

Diagram of respondents according to Evaluation and Appraisal of


14 8 0

32

483

97

28

285

53

0

100

200

300

400

500

600

Low Medium High

Job satisfaction

No

. o

f R

esp

on

den

ts

Low

Medium

High

272

HYPOTHESIS-8

Null Hypothesis: There is no association between Ethics and Social Responsibility and

job satisfaction of employees.

Alternative Hypothesis: There is association between Ethics and Social Responsibility

and job satisfaction of employees.









Chi-square test is rejected. It is concluded that there is association between Ethics and

Social Responsibility of Organisation and job satisfaction of employees. Null Hypothesis

is rejected. T-Test is used to compare the means of the samples but it might become

unreliable in case of more than two samples. If we only compare two means, then the t-

test (independent samples) will give the same results as the ANOVA. So due to this to

test null hypothesis Anova test is applied t null hypothesis and the results of the test are

shown in table 8.26 below


Ethics and

Social

responsibility

Group8

Between

Groups

55.406 2 27.703 1.617

Within

Groups

17078.088 997 17.129

Total 17133.494 999

The Result of ANOVA test is accepted. There is no association between Ethics and

Social Responsibility and job satisfaction of employees.. Hence Null Hypothesis got

accepted.



273

Table 8.27 of Respondents according to Ethics and Social Responsibility of


Score of Ethics and Social

Responsibility of Organisation Level of Job satisfaction


Low 25 221 27 273

Medium 49 474 86 609

High 0 81 37 118

Total 74 776 150 1000


low level of Ethics and Social Responsibility, 49 respondents are from medium level of

Ethics and Social Responsibility. And no respondents are from high level of Ethics and

Social Responsibility.


respondents are from low level of Ethics and Social Responsibility, 474 respondents are

from medium level of Ethics and Social Responsibility. And remaining 81 respondents

are from high level of Ethics and Social Responsibility.


from low level of Ethics and Social Responsibility, 86 respondents are from medium

level of Ethics and Social Responsibility. And remaining 37 respondents are from high

level of Ethics and Social Responsibility


has learned values in Figure no 8.9

274

HYPOTHESIS-9

Null Hypothesis: There is no association between Internal Communication System of

Organisation and job satisfaction of employees.

Alternative Hypothesis: There is association between Internal Communication System

of Organisation and job satisfaction of employees.








Since Calculated value (0.53) is less than Table value (9.46) Chi-square test is accepted.

It is concluded that there is no association between Communication System of

Diagram of respondents according to Ethics and Social responsibility

of organization and Job satisfaction of Employees

25

221

2749

474

86

0

81

37

0

50

100

150

200

250

300

350

400

450

500

Low Medium High

Job satisfaction

No

. o

f R

esp

on

den

ts

Low

Medium

High



275

Organisation and job satisfaction of employees. Null hypothesis is accepted. Hence no

other test such as ANOVA, T-test is applied to prove null hypothesis.

Table 8.29 of Respondents according to Communication System of


Score of Communication System of



Low 28 291 52 371

Medium 25 258 51 334

High 21 227 47 295

Total 74 776 150 1000


low level of Communication System, 25 respondents are from medium level of

Communication System. And remaining 21 respondents are from high level of

Communication System.


respondents are from low level of Communication System, 258 respondents are from

medium level of Communication System. And remaining 227 respondents are from high

level of Communication System.


from low level of Communication System, 51 respondents are from medium level of

Communication System. And remaining 47 respondents are from high level of

Communication System.


has learned values in Figure no 8.10

276

HYPOTHESIS-10

Null Hypothesis: There is no association between dimensions of organization

behaviour.

Alternative Hypothesis: There is association between dimensions of organization

behaviour.

To prove the null hypothesis Paired Samples Statistics is used because each individual

observation of one sample has unique corresponding member in the other sample and

correlation test is applied to describe the linear relationship between two continuous

variables . Null hypothesis is accepted hence ANOVA, Chi-square, T-test, Paried T-test

are not used.

Table 8.30 of Respondents according to dimensions of organizational

behaviour

Diagram of respondents according to Communication System of


28

291

52

25

258

51

21

227

47

0

50

100

150

200

250

300

350

Low Medium High

Job satisfaction

No

. o

f R

esp

on

den

ts

Low

Medium

High

277

Paired Samples Statistics

Mean N

Std.

Deviation

Std. Error

Mean

Pair 1 Sturcture 57.978

0

1000 4.59759 .14539

Combine 52.297

7

1000 2.51466 .07952

Pair 2 Leadership 41.300

0

1000 8.09886 .25611

Combine 52.297

7

1000 2.51466 .07952

Pair 3 Political

environment

54.992

5

1000 4.51820 .14288

Combine 52.297

7

1000 2.51466 .07952

Pair 4 Implementati

on of

Evaluation

and Appraisal

41.296

0

1000 2.38455 .07541

Combine 52.297

7

1000 2.51466 .07952

Pair 5 Supervisory

style

64.913

6

1000 4.47409 .14148

Combine 52.297

7

1000 2.51466 .07952

Pair 6 Internal

communicati

on system

71.898

0

1000 1.79466 .05675

278

Combine 52.297

7

1000 2.51466 .07952

Pair 7 Creativity

Stimulants

36.620

0

1000 7.49665 .23706

Combine 52.297

7

1000 2.51466 .07952

Pair 8 Ethics and

Social

Responsibilit

y

44.072

5

1000 4.14133 .13096

Combine 52.297

7

1000 2.51466 .07952

Pair 9 Teams and

Teams Work

57.609

0

1000 3.59904 .11381

Combine 52.297

7

1000 2.51466 .07952

279

Table 8.31

Calculate

d t-Value

Degree

of

Freedom

Table of t-

value

(5% l.o.c.)

Result of

Test

Pair 1 Structure - Combine 57.214 999 1,96 Significant

Pair 2 Leadership -

Combine

-53.803 999 1.96 Significant

Pair 3 Political

Environment -

Combine

20.775 999 1.96 Significant

Pair 4 Implementation of

Evaluation and

Appraisal -

Combine

-108.228 999 1.96 Significant

Pair 5 Supervisory Style -

Combine


Pair 6 Internal

Communication

System - Combine

213.470 999 1.96 Significant

Pair 7 Creativity

Stimulants -

Combine

-79.425 999 1.96 Significant

Pair 8 Ethics and Social

Responsibility -

Combine

-79.294 999 1.96 Significant

Pair 9 Teams and Teams

Work - Combine


280


difference is significant. All nine groups have significant difference with combine mean.

It is concluded that all nine groups does act as a driver for organizational behaviour. The

null hypothesis is accepted hence ANOVA, Chi-square, T-test is not applied.

Correlations

Group1 Group2 Group3 Group4 Group5

Group1 Pearson

Correlation

1 .518** .253** .023 .158**

Group2 Pearson

Correlation

.518** 1 .179** .005 .070*

Group3 Pearson

Correlation

.253** .179** 1 .015 .126**

Group4 Pearson

Correlation

.023 .005 .015 1 .063*

Group5 Pearson

Correlation

.158** .070* .126** .063* 1

Group6 Pearson

Correlation

.060 .017 .064* .014 -.033

Group7 Pearson

Correlation

.392** .287** .061 .021 .016

Group8 Pearson

Correlation

.459** .411** .193** -.009 .024

Group9 Pearson

Correlation

.441** .347** .213** .038 .041

Combine Pearson

Correlation

.761** .740** .436** .140** .300**

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

The above table 8.32 shows that there is a significant difference. Hence null

hypothesis is accepted no other test such as Chi-square, T-test is applied

Correlations

Group6 Group7 Group8 Group9 Combine

Group1 Pearson

Correlation

.060 .392** .459** .441** .761**

281

Group2 Pearson

Correlation

.017 .287** .411** .347** .740**

Group3 Pearson

Correlation

.064* .061 .193** .213** .436**

Group4 Pearson

Correlation

.014 .021 -.009 .038 .140**

Group5 Pearson

Correlation

-.033 .016 .024 .041 .300**

Group6 Pearson

Correlation

1 .024 .036 .021 .123**

Group7 Pearson

Correlation

.024 1 .278** .258** .625**

Group8 Pearson

Correlation

.036 .278** 1 .314** .610**

Group9 Pearson

Correlation

.021 .258** .314** 1 .572**

Combine Pearson

Correlation

.123** .625** .610** .572** 1

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

The above table 8.33 shows that there is a significant difference. Hence null

hypothesis is accepted no other test such as Chi-square, ANOVA, T-test is applied

.

282

CHAPTER 9

MAJOR FINDINGS AND

CONCLUSIONS

283

CHAPTER 9

MAJOR FINDINGS AND CONCLUSIONS

The study basically dealt with finding the organizational behaviour effects on employees

behaviour on the basis of 13 dimensions which are divided into 10 groups and finding the

effect of same on the employees of companies. Few of which are discussed below

ORGANIZATIONAL STRUCTURE:

From the study it was found that mostly employees of the various organizations agreed

to the norms and functioning of the organizations. Except few employees who disagree

with the fact that senior management treats employees fairly rest all the employees agree

with it. It was found that either it is large scale Company, SSI, the replies from the

employees on various aspects were similar.

LEADERSHIP:

From the study it was found that employees of various pharmaceutical companies have

same view point that Organizations in which they are employed are strong competitors of

other organizations. They also agree that their organizations have organization leadership

has clear vision for future.

POLITICAL ENVIRONMENT:

From the study it was found that employees agreed to the questions asked to them related

to Political Environment. The treatment given to the employees related to political

environment is agreeable to the employees.

284

IMPLEMENTATION OF EVALUATION AND APPRAISAL:

From the Study it was found that the organizations do have an appraisal system and based

on the Performance the employees are appreciated and awarded. Employees of the

organizations are satisfied with the appraisal system.

SUPERVISORY STYLE

From the study it was found that superior- subordinate relation is cordial in the

organizations. There is sense of responsibility and understanding between superior and

subordinate.

INTERNAL COMMUNICATION SYSTEM:

From the study it was found that employees are satisfied with the internal

communication system in their organizations. They agree with the questions asked related

to the internal communication system and also they have a positive belief that vertical

and horizontal communication plays an important role in the organizations.

EMPLOYEES BEHAVIOUR AND SATISFACTION:

From the study it was found that are neutral on these aspects they neither agree neither

disagree with the benefits that they are getting from their respective organizations. When

it comes to the question of monetary benefits the employees are hesitant to disclose they

neither agree with fact that they are satisfied with the pay structure nor they disagree that

they are satisfied with the pay structure as well as incentive schemes provided by their

respective organizations.

285

CREATIVITY STIMULANTS:

From the study it was found that the role and responsibilities being allotted to employees

in their respective organizations is understood to them and they perform their work in

proper manner. Employees get an opportunity to develop their skills in their respective

organizations.

ETHICS AND SOCIAL RESPONSIBILITY:

From the study it was found that employees are neither agreeing with the questions

related to ethics and social responsibility nor disagreeing with the same. It was difficult to

come to the conclusion regarding the same.

POWER AND POLITICS:

From the study it was found that employees are interested in becoming a CEO of the

company they have imagined for themselves. They also have an enthusiasm for becoming

an MD of the company.

TEAMS AND TEAM WORK:

From the study it was found that employees are very co-operative with each other and

also the team members in their respective teams are very supportive as well as work hard

together to build positive relations with each other.

286

ABSENTEEISM:

From the study it was found that the employees can avail leave only on medical

grounds. Employees are highly satisfied with the superiors. There is support provided

to the employees by their co-workers which brings a positive attitude in them and a

sense of trust within the employees. The employees of the organization are happy with

their respective organizations due to balance between work life and personal life.

ATTRITION RATE:

From the study it was found that maximum employees stated that the attrition rate in

their respective organizations is between 5 % to 10 %

287

CHAPTER 10

RECOMMENDATIONS

288

CHAPTER 9

RECOMMENDATIONS

Based on the findings of the study the following recommendations on the dimensions of

the organizational behaviour could be drawn

It is been observed that the Organizational Structure of the organizations should

provide the employees all information required as being the member of the

organization. The roles and the responsibilities should be clearly defined to the

employees of their respective organizations. Policies for the hierarchy of

communication should be framed by the organizations. Senior management

should set high standards of excellence. The organizations should have activities

such as Corporate Social Responsibility.

As far as Internal environment of the organization is concerned organization

should provide complete information in time to the employees of the

organizations so that they can perform the job better and on time. The

organizations should provide adequate resources to its employees so that they can

perform their work on time. The employees in the organizations should be given

equal work load so that there is no work pressure on few employees and the rest

have no work to do.

Talking about the Implementation of evaluation technique and appraisal system. It

is suggested that it should be systematic so that the employees get equal

opportunities to perform better. The senior management should give feedback to

the employees so that they can improve themselves and get a chance to improve.

Performance appraisal should be at least twice in 1 year or after every 3 months.

It is observed that the monetary benefits provided by the organizations should be

satisfactory for the employees in the organization. The incentives provided by the

organizations to the employees should also be satisfactory to the employees so

that they get motivated to work in the organizations. The organizations should

provide extra benefits such as fringe benefits.

289

There should be awareness among the employees regarding the organizations that

are socially responsible or which encourage corporate social responsibility. The

employees should be aware of the organizations or their own organization which

manufacture products which are useful to the society and if they don’t

manufacture such organizations should be penalized. The employees should be

capable enough for paying more for the products which are manufactured by

socially responsible organizations.

In case of absenteeism the employees should be given a compensatory leave in

case they are required overtime in their job. They should be given flexibility in

taking leave whenever they want. Ample of opportunities should be provided by

the organizations for the advancement of their employees. The organizations

should give low work pressure to the employees working in their organizations.

The organizations should work hard for retaining their employees in their

organizations so that the attrition rate is reduced and the employees are satisfied

with their respective jobs and don’t leave their job.

290

APPENDIX

291

APPENDIX I

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292

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APPENDIX II

QUESTIONNAIRE

311

Dear sir/madam,

I have enrolled for Ph. D program at D.Y.Patil University. As a part of my

research work I am collecting information about organizational behavoiur and

employees behavior. I will be grateful if you could spare some valuable time to fill

this questionnaire. I assure that the response will be kept strictly confidential and

will be used only for academia purpose.

Thank you for your support

Name: Sapna Suri

Desigantion : Assistant Professor

Email: [email protected]

1. Name of Respondent: ------------------------------------------------------------------

2. Name of organization: ------------------------------------------------------------------

3. Type of Organization Bulk Drug Small Scale Industry MNC

4. How long have you working in this organization?

Less than two year .........................................

Two years to less than five years ...................

Five years or more .........................................

5. What is your total experience?

Less than five year .........................................

five years to less than ten years......................

Ten years or more ..........................................

mailto:[email protected]

312

6. What is your age?

Under 25.........................................................

25 to 34 ..........................................................

35 to 44 ..........................................................

45 to 54 ..........................................................

55 or older ......................................................

7. What is your sex?

Male ...............................................................

Female ............................................................

8. What is your marital status?

Married ...........................................................

Unmarried ......................................................

Questionnaire:

Group – 1 ( organizational structure

Sr

no

Question Strong

ly

Disagr

ee

Disa

gree

Neither

Agree

nor

Disagr

ee

Agre

e

Strong

ly

Agree

1 The organizational goal and objectives are clear

to me

2 Employees have shared understanding of what

the organization is suppose to do

3 Clear reporting structure have been established

4 Roles and responsibilities are clearly defined

5 Policies for hierarchy of communication are

313

framed

6 Hierarchy of communication is executed

according to policies

7 Senior management sets high standard of

excellence

8 Senior management treats employees fairly

9 This organization has activities such as corporate

social responsibilities’

10 There is a quality circle in this organization

11 Member of quality circle in this organization

meet regularly

Group – 2 ( Leadership)

Sr

no

Question Strong

ly

Disagr

ee

Disa

gree

Neither

Agree

nor

Disagr

ee

Agre

e

Strong

ly

Agree

12 Our organisation is a leader in the industry.

13 Our organisation is a strong competitor in key

growth areas.

14 Our organisation leadership has a clear vision of

the future.

15 Our organisation leadership has made changes

which are positive for the company.

16 Our organisation leadership has made changes

which are positive for me.

314

Group – 3 ( Political Environment)

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

17 I feel valued as an employee in

this organization

18 I enjoy being part of this

organization

19 Work pressure is uniform for all

employees in the organization

20 My department has adequate tools

( or resources) to perform our

work

21 I receive complete information in

time to perform my job well

22 Employees speak very highly

about this organization

23 My direct senior listens to my

ideas and concern

24 My direct senior makes sure that I

have clear goals to achieve

315

Group – 4 (Implementation of Evaluation and appraisal)

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

25 I believe senior management

appreciates the work I do

26 Do you have system of

performance appraisal in your

organization

27 Nature of appraisal is completely

unbiased

28 I get feedback of my performance

appraisal

29 Performance appraisal is adequate

in this organization

316

Group – 5 ( Supervisory style)

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

30 Employee have good balance

between organizational work and

personal life

31 Supervisory in this organization is

satisfactory

32 Supervisor always encourage us

work as team

33 Supervisor always appreciate my

good performance

34 Supervisor maintain reasonably

high standard of performance

35 My supervisor always help me in

improving my performance

317

Group – 6 ( Internal Communication System)

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

36 I feel my inputs is valued by my

co-worker

37 Knowledge and information

sharing is a group norm across the

organization

38 Employees consult each other

when they need support

39 Individuals appreciate the

personal contribution for their co-

workers

40 I trust the information I receive

from senior management

41 My direct senior gives me helpful

feedback on how to be more

effective

42 I believe vertical communication

is suitable in this organization

43 I believe vertical and horizontal

communication is necessary

44 Interpersonal communication and

relationships contributes to

organizational performance

45 Our face to face meetings are

318

productive

Group – 7 ( Creativity Stimulants

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

46 Roles and responsibilities within

the group are understood

47 My skills and abilities are fully

utilize in this organization

48 I have the opportunity to further

develop my skills and abilities

49 I find I am challenged in my

current job

50 My work adds value to the

organization

319

Group8 (Ethics & Social Responsibility)

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

51 Do you think that business

ethics is based on

individual’s morals only

52 Do you think it is

important to have business

ethics


ethics differ in various

countries or societies


ethics should only be

determined by law

55 I am acquainted with

enterprises or

organizations that are

"socially

responsible

56 As a consumer, I am

capable to penalize a

enterprise (ex: not buying

its products/services), if I

consider it "Socially

irresponsible

57 I am capable to pay more

320

for a product produced by

a “socially

responsible" enterprise

58 Have customers ever asked

about environmental or

social aspects regarding

your company or its

products?

321

Group 9 (Teams and Team Work)

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

59 There is a common and agreed

vision of future success for the

team

60 Team members have a common

goal which motivates them to

achieve a desired result

61 Team members have shared

values and beliefs which bind the

team together

62 Team members are mutually

supportive, willingly helping

each other to overcome problems

to achieve success

63 There is a willingness to be led

versus a battle for leadership

64 Team members recognize their

need to work with others versus

work independently

65 Team workers work hard

together to build positive

relationships with each other

66 Team members confront and

resolve conflicts in a healthy and

constructive way

322

Group 10 (Job Satisfaction )

Sr

no

Question Strongly

Disagree

Disagree Neither

Agree nor

Disagree

Agree Strongly

Agree

1 Nature of the work comfortable to

me

2 Nature of my job match with my

Qualification

3 I find my job is interesting

4 I require to do overtime for

completion of work

5 It is possible to get leave whenever

you require

6 All employees in this organization

are treated equally

7 I am proud and happy to work for

this organization

8 I am confident that I can get ahead in

this organization because of my

merits

9 I am involved in the performance of

the organization

10 I can easily communicate with my

bosses and co-workers

11 I trust my colleagues and senior

management

12 I have enough resources to get my

job done best

13 There are enough opportunities in the

organization for you to be able to

learn and grow?

14 Does your job make you feel

important?

15 Do you agree with the mission and

the vision of the organization?

323

APPENDIX III

LIST OF COMPANIES

324

Name of the

Organization

Address City State Company

type

ACICHEM

LABRORATORIES

1, Prabhat

Nagar, Jogeshwari West,

- 400102

Mumbai Maharasht

ra

SSI

BDH INDUSTRIES

LTD

air Baug, Akurli Road,

Kandivali (East), Mumbai Maharasht

ra

SSI / LS

GUFIC

BIOSCIENCES LTD

Gufic House, Subhash

Rd.-A,

Vile Parle (E), Mumbai -

400 057. (INDIA)

Email :

[email protected]

Mumbai Maharasht

ra

SSI/LS

NIRLAC

CHEMICALS

14th floor, Nirmal

building, Nariman point,

Mumbai, Maharashtra

Mumbai Maharasht

ra

SSI

Adonis Laboratories

Pvt Ltd

C-6, Groma House, Sector

19

APMC MKT II, Vashi

Mumbai Maharasht

ra

SSI

ADORE

PHARMACEUTICAL

PVT LTD

ADORE

PHARMACEUTICAL

PVT. LTD.

5/6 Khokhani Industrial

Complex No. 2,

Kaman Road, Sativali,

Vasai (East),

Dist. : Thane – 401 208.

Mumbai Maharasht

ra

SSI

ADVANCED

VITAL ENZYMES

LTD

Sun Magnetica A

Wing 5th Floor LIC

service Road

LouisWadi

Thane(W)

Mumbai Maharasht

ra

SSI

AGLOWMED

LTD

702 - A, Poonam

Chambers, Worli

Mumbai Maharasht

ra

SSI/LS

AJANTA PHARMA

LTD

Ajanta Pharma Limited

Ajanta House, Govt. Indl

Area, Charkop

400067 Kandivali

Mumbai

Mumbai Maharashtra MED /LS

AKIRITI EXPORT

AGENCIES

OFF.NO.207, BLOCK

NO4, EMERALD

PLAZA,

HIRANANDANI

MEADOWS, OFF-

POKHARAN ROAD

NO.2,

Mumbai Maharashtra SSI

ALCON

INDUSTRIES 2, Jaychanrika, Mumbai Maharashtra SSI

325

Rd. No. 2,

Pestom Sagar, Chembur,

Mumbai. 400071

ALKEM

LABORATORIES

LTD

Alkem Hse Devashish

Bldg,

Senapati Bapat Marg, Adj

To Matulya Ctr, Lower

Parel

Mumbai Maharashtra SSI/LS

ALTA

LABORATORIES

PVT LTD

Alta Bhavan,

532,Senapati Bapat Marg,

Dadar, Mumbai - 400 028.

Mumbai Maharashtra LS

ARISTO

PHARMACEUTICAL

S LTD

23-A Shah Industrial

EstateOff Veera Desai

Road Andheri (West)

Mumbai : 400053


AUROCHEM

LABORATORIES

PVT LTD

333, Gundecha Ind.

Complex, , Akurli Rd,

Kandivali , East Mumbai ,

Maharashtra


AVALON PHARMA

PVT LTD

Sethna Building, 216,

Shamaldas Gandhi Road

Princess Street

Mumbai Maharashtra SSI/ LS

AVIK

PHARMACETICAL

LTD

194, Arvind Chamber,

Gauri Studio Compound,

Western Express

Highway,

Mumbai, Maharashtra -

400 069 (India)

Mumbai Maharashtra SSI/ LS

BAADER SCHULZ

LABORATORIES

(PHARMA DIV)

Shantivilla, Shantivan

Towers Compound,

Devidas Lane, Near Club

Aquaria, Borivali


BAKUL

AROMATICS AND

CHEMICALS LTD

16/2,DR A B ROAD

WORLI, MUMBAI

400018,

MAHARASHTRA


BEC CHEMICALS

PVT LTD

S-86, IBI House,

Chimatpada, Andheri-

Kurla Road, Andheri East

Mumbai Maharashtra LS/MED

BHARAT SERUMS

AND VACCINES

LTD

Plot No. A-371-372, Road

27,

Wagle Industrial Estate,

Thane – 400604.

Mumbai Maharashtra LS / MED

BIOCHEM

PHARMACEUTICAL

INDS

Aidun Bldg, John Crasto

Lane


BLISS GVS

PHARMA LTD

Bldg. No.6 Unit No.29-A

Ground Floor Udit Mittal


326

Indl. Premises Co-op. Soc.

Ltd.Andheri – Kurla Road

Andheri East

Mumbai

BLUE CROSS

LABORATORIES

LTD

Peninsula Chambers

Ground Floor Ganapatrao

Kadam Marg Lower Parel

(West)


BHUSHAL

HEALTHCARE PVT

LTD

415 SHAH NAHAR

WORLI,


CALYX

CHEMICALS &

PHARMACEUTICAL

S LTD

CALYX CHEMICALS &

PHARMACEUTICALS

LTD.

A-37,38, MIDC, Phase-I,

Golvali, Kalyan Shill

Road,

Dombivli(E)

KALYAN Maharashtra SSI/ LS

CHANDRA

BHAGAT PHARMA

PVT LTD

323- F, Dr. Ambedkar

Road, Mumbai,

Maharashtra - 400 019

(India)


CHARAK PHARMA

PVT LTD

Evergreen Industrial

Estate, Dr. E Moses Road,

Shakti Mills Lane

Mahalaxmi,, Mumbai,

Maharashtra, India Zip:

400011

Mumbai Maharashtra MED

CHEMAPOL

INDUSTRIES

55/A ALLI CHAMBERS,

TAMARIND LANE,

Mumbai - 400023,

Maharashtra, India


COLINZ

LABORATORIES

LTD

A-101, Pratik Ind.

Estate,Mulund-goregaon

Link Road,Next To

Wockhardt

HospitalMumbai-400078,

Maharashtra

Mumbai Maharashtra LS / SSI

DIL LIMITED Dil Complex, Ghodbunder Rd.

Thane, 400 610

India

Mumbai Maharashtra MED / LS

Aarti drugs ltd Mahendra Industrial

Estate Ground Floor Road

No 29 Plot No 109-D

SION (East) Mumbai :

400022 . Maharashtra

,India .

Mumbai Maharashtra SSI / MED

Bini Laboratories Ltd B-52,MIDC,Mumbai-

Agra Road,, Behind Taj,

Nasik Maharashtra SSI

327

NASHIK - 422010

EISEN

PHARMACEUTICAL

CO. (PVT.) LTD.

EISEN

PHARMACEUTICAL

CO. (PVT.) LTD.

34/7, Erandwana, Gulwani

Maharaj Road, Kothrud,

Pune - 411004

Pune - 411004

(Maharashtra) India

Pune Maharashtra SSI

Emcure

Pharmaceuticals Ltd

T 184, M.I.D.C, Bhosari,

Pune, Maharashtra -

411026 (India)


Gujar Pharmaceuticals 8, Purva Complex, B. G.

Street, Sadashiv Peth 761/

A, Pune, Maharashtra -

411030 (India)

Pune

Maharashtra SSI

Libra Drugs (India) 92, Mangalwar Peth,,

Parge Chowk, Pune,

Maharashtra - 411 011

(India)

Pune Maharashtra SSI/ MED

Health Secure (India)

Pvt Ltd

1 Landscape D’Souza

Colony, Gangapur Road,

Nasik – 422013

Maharashtra India

Nasik Maharashtra SSI/MED

Maxim

Pharmaceuticals Pvt

LTd

4/16 New prasanna park,

behind, Meera Soc

Shanker Sheth RD PUNE

411037


Narayans Remedies

Pvt Ltd

201, Nityanand Complex,

2nd Floor, Bundgarden

Road, ,

Pune - 411001,

Maharashtra, India


Nulife

Pharamaceuticals

203, Pleasant

Apartments,15th Lane,

Prabhat Road,

Pune, Maharashtra - 411

004 (India)


Pushpam health care

products

35/1 B, New Gajra

Society, Bibwewadi.,

Pune, Maharashtra -

411037 (India)


Rajan Pharmaceuticals 56/17, DII, M.I.D.C.

CHINCHWAD, PUNE-

411019


Serum Institute of

India Ltd

212/2, Off. Soli

Poonawalla Road,

Hadapsar


The Varma Pharmacy

PVT LTD

59, Industrial Estate,

Hadapsar


Twilight Litaka Himalaya Estate, Pune Maharashtra SSI

http://www.indianexporters.com/EISEN-PHARMACEUTICAL-CO.-(PVT.)-LTD.-com-555577270.html






328

Pharma Ltd 16-A Shivajinagar,Pune

411 005

Maharashtra, India

Tel: (91-20) 3028 1700 /

01

Fax: (91 20) 2553 3211

E-mail : [email protected]

Web

: www.twilightlitaka.com

Bil care Limited 1028, Shiroli,

Rajgurunagar,

Maharashtra, Pune -

410505

Pune Maharashtra MED

Global institute of

regulatory affairs

Global Institute of

Regulatory Affairs,

Empire Estate, Shop No C

5&6, Mumbai Pune

Highway,Pune, Maharasht

ra 411044INDIA


mailto:[email protected]

http://www.twilightlitaka.com/

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