Organizational Behavior. 454556 Notesdocx
Organizational Behavior. 454556 Notesdocx
Organizational Behavior. 454556 Notesdocx
We define "group" as more than two employees who have an ongoing relationship in which they interact and
influence one another behaviour and performance. The behavior of individuals in groups is something more than the
sum total of each acting in his or her own way. In other words, when individuals are in groups, they act differently
than they do when they are alone.
GROUP DYNAMICS
A group can be defined as several individuals who come together to
accomplish a particular task or goal. Group dynamics refers to the
attitudinal and behavioral characteristics of a group. Group dynamics
concern how groups form, their structure and process, and how they
function. Group dynamics are relevant in both formal and informal groups
of all types. In an organizational setting, groups are a very common
organizational entity and the study of groups and group dynamics is an
important area of study in organizational behavior.
The following sections provide information related to group dynamics.
Specifically, the formation and development of groups is first considered.
Then some major types or classifications of groups are discussed. Then
the structure of groups is examined.
GROUP DEVELOPMENT
As applied to group development, group dynamics is concerned with why and how groups
develop. There are several theories as to why groups develop. A classic theory, developed by
George Homans, suggests that groups develop based on activities, interactions, and sentiments.
Basically, the theory means that when individuals share common activities, they will have more
interaction and will develop attitudes (positive or negative) toward each other. The major
element in this theory is the interaction of the individuals involved.
Social exchange theory offers an alternative explanation for group development. According to
this theory, individuals form relationships based on the implicit expectation of mutually
beneficial exchanges based on trust and felt obligation. Thus, a perception that exchange
relationships will be positive is essential if individuals are to be attracted to and affiliate with a
group.
Social identity theory offers another explanation for group formation. Simply put, this theory
suggests that individuals get a sense of identity and self-esteem based upon their membership
in salient groups. The nature of the group may be demographically based, culturally based, or
organizationally based. Individuals are motivated to belong to and contribute to identity groups
because of the sense of belongingness and self-worth membership in the group imparts.
Group dynamics as related to development concerns not only why groups form but also how.
The most common framework for examining the "how" of group formation was developed by
Bruce Tuckman in the 1960s. In essence, the steps in group formation imply that groups do not
usually perform at maximum effectiveness when they are first established. They encounter
several stages of development as they strive to become productive and effective. Most groups
experience the same developmental stages with similar conflicts and resolutions.
According to Tuckman's theory, there are five stages of group development: forming, storming,
norming, performing, and adjourning. During these stages group members must address
several issues and the way in which these issues are resolved determines whether the group
will succeed in accomplishing its tasks.
1. Forming. This stage is usually characterized by some confusion and uncertainty. The
major goals of the group have not been established. The nature of the task or leadership
of the group has not been determined (Luthans, 2005). Thus, forming is an orientation
period when members get to know one another and share expectations about the
group. Members learn the purpose of the group as well as the rules to be followed. The
forming stage should not be rushed because trust and openness must be developed.
These feelings strengthen in later stages of development. Individuals are often confused
during this stage because roles are not clear and there may not be a strong leader.
2. Storming. In this stage, the group is likely to see the highest level of disagreement and
conflict. Members often challenge group goals and struggle for power. Individuals often
vie for the leadership position during this stage of development. This can be a positive
experience for all groups if members can achieve cohesiveness through resolution.
Members often voice concern and criticism in this phase. If members are not able to
resolve the conflict, then the group will often disband or continue in existence but will
remain ineffective and never advance to the other stages.
3. Norming. This stage is characterized by the recognition of individual differences and
shared expectations. Hopefully, at this stage the group members will begin to develop a
feeling of group cohesion and identity. Cooperative effort should begin to yield results.
Responsibilities are divided among members and the group decides how it will evaluate
progress.
4. Performing. Performing, occurs when the group has matured and attains a feeling of
cohesiveness. During this stage of development, individuals accept one another and
conflict is resolved through group discussion. Members of the group make decisions
through a rational process that is focused on relevant goals rather than emotional
issues.
5. Adjourning. Not all groups experience this stage of development because it is
characterized by the disbandment of the group. Some groups are relatively permanent
(Luthans, 2005). Reasons that groups disband vary, with common reasons being the
accomplishment of the task or individuals deciding to go their own ways. Members of
the group often experience feelings of closure and sadness as they prepare to leave.
GROUP TYPES
One common way to classify group is by whether they are formal or informal in nature. Formal work groups are
established by an organization to achieve organizational goals. Formal groups may take the form of command
groups, task groups, and functional groups.
COMMAND GROUPS.
Command groups are specified by the organizational chart and often consist of a
supervisor and the subordinates that report to that supervisor. An example of a
command group is an academic department chairman and the faculty members in that
department.
TASK GROUPS.
Task groups consist of people who work together to achieve a common task. Members
are brought together to accomplish a narrow range of goals within a specified time
period. Task groups are also commonly referred to as task forces. The organization
appoints members and assigns the goals and tasks to be accomplished. Examples of
assigned tasks are the development of a new product, the improvement of a production
process, or the proposal of a motivational contest. Other common task groups are ad
hoc committees, project groups, and standing committees. Ad hoc committees are
temporary groups created to resolve a specific complaint or develop a process. Project
groups are similar to ad hoc committees and normally disband after the group
completes the assigned task. Standing committees are more permanent than ad hoc
committees and project groups. They maintain longer life spans by rotating members
into the group.
FUNCTIONAL GROUPS.
A functional group is created by the organization to accomplish specific goals within an
unspecified time frame. Functional groups remain in existence after achievement of
current goals and objectives. Examples of functional groups would be a marketing
department, a customer service department, or an accounting department.
In contrast to formal groups, informal groups are formed naturally and in response to the
common interests and shared values of individuals. They are created for purposes other
than the accomplishment of organizational goals and do not have a specified time
frame. Informal groups are not appointed by the organization and members can invite
others to join from time to time. Informal groups can have a strong influence in
organizations that can either be positive or negative. For example, employees who form
an informal group can either discuss how to improve a production process or how to
create shortcuts that jeopardize quality. Informal groups can take the form of interest
groups, friendship groups, or reference groups.
INTEREST GROUPS.
Interest groups usually continue over time and may last longer than general
informal groups. Members of interest groups may not be part of the same
organizational department but they are bound together by some other
common interest. The goals and objectives of group interests are specific
to each group and may not be related to organizational goals and
objectives. An example of an interest group would be students who come
together to form a study group for a specific class.
FRIENDSHIP GROUPS.
Friendship groups are formed by members who enjoy similar social
activities, political beliefs, religious values, or other common bonds.
Members enjoy each other's company and often meet after work to
participate in these activities. For example, a group of employees who form
a friendship group may have an exercise group, a softball team, or a
potluck lunch once a month.
REFERENCE GROUPS.
A reference group is a type of group that people use to evaluate
themselves. According to Cherrington, the main purposes of reference
groups are social validation and social comparison. Social validation allows
individuals to justify their attitudes and values while social comparison
helps individuals evaluate their own actions by comparing themselves to
others. Reference groups have a strong influence on members' behavior.
By comparing themselves with other members, individuals are able to
assess whether their behavior is acceptable and whether their attitudes and
values are right or wrong. Reference groups are different from the
previously discussed groups because they may not actually meet or form
voluntarily. For example, the reference group for a new employee of an
organization may be a group of employees that work in a different
department or even a different organization. Family, friends, and religious
affiliations are strong reference groups for most individuals.
GROUP STRUCTURE
Group structure is a pattern of relationships among members that hold the
group together and help it achieve assigned goals. Structure can be
described in a variety of ways. Among the more common considerations
are group size, group roles, group norms, and group cohesiveness.
GROUP SIZE.
Group size can vary from 2 people to a very large number of people. Small
groups of two to ten are thought to be more effective because each
member has ample opportunity to participate and become actively involved
in the group. Large groups may waste time by deciding on processes and
trying to decide who should participate next. Group size will affect not only
participation but satisfaction as well. Evidence supports the notion that as
the size of the group increases, satisfaction increases up to a certain point.
In other words, a group of six members has twice as many opportunities for
interaction and participation as a group of three people. Beyond 10 or 12
members, increasing the size of the group results in decreased satisfaction.
It is increasingly difficult for members of large groups to identify with one
another and experience cohesion.
GROUP ROLES
In formal groups, roles are usually predetermined and assigned to
members. Each role will have specific responsibilities and duties. There
are, however, emergent roles that develop naturally to meet the needs of
the groups. These emergent roles will often replace the assigned roles as
individuals begin to express themselves and become more assertive.
Group roles can then be classified into work roles, maintenance roles, and
blocking roles.
Work roles are task-oriented activities that involve accomplishing the
group's goals. They involve a variety of specific roles such as initiator,
informer, clarifier, summarizer, and reality tester. The initiator defines
problems, proposes action, and suggests procedures.
The informer role involves finding facts and giving advice or opinions.
Clarifiers will interpret ideas, define terms, and clarify issues for the group.
Summarizers restate suggestions, offer decisions, and come to conclusions
for the group. Finally, reality testers analyze ideas and test the ideas in real
situations.
Maintenance roles are social-emotional activities that help members
maintain their involvement in the group and raise their personal
commitment to the group. The maintenance roles are harmonizer,
gatekeeper, consensus tester, encourager, and compromiser. The
harmonizer will reduce tension in the group, reconcile differences, and
explore opportunities. Gatekeepers often keep communication channels
open and make suggestions that encourage participation. The consensus
tester will ask if the group is nearing a decision and test possible
conclusions. Encouragers are friendly, warm, and responsive to other
group members. The last maintenance role is the compromiser. This role
involves modifying decisions, offering compromises, and admitting errors.
Blocking roles are activities that disrupt the group. They make take the form
of dominating discussions, verbally attacking other group members, and
distracting the group with trivial information or unnecessary humor. Often
times the blocking behavior may not be intended as negative. Sometimes a
member may share a joke in order to break the tension, or may question a
decision in order to force group members to rethink the issue. The blocking
roles are aggressor, blocker, dominator, comedian, and avoidance
behavior. The aggressor criticizes members' values and makes jokes in a
sarcastic or semi-concealed manner.
Blockers will stubbornly resist the group's ideas, disagree with group
members for personal reasons, and will have hidden agendas. The
dominator role attempts to control conversations by patronizing others.
They often interrupt others and assert authority in order to manipulate
members. Comedians often abandon the group even though they may
physically still be a part. They are attention-getters in ways that are not
relevant to the accomplishment of the group's objectives. The last blocking
role, avoidance behavior, involves pursuing goals not related to the group
and changing the subject to avoid commitment to the group.
Role ambiguity concerns the discrepancy between the sent role and the
received role, as shown in Exhibit 1. Supervisors, directors, or other group
leaders often send (assign) roles to group members in formal groups.
Group members receive roles by being ready and willing to undertake the
tasks associated with that role. Ambiguity results when members are
confused about the delegation of job responsibilities. This confusion may
occur because the members do not have specific job descriptions or
because the instructions regarding the task were not clear. Group members
who experience ambiguity often have feelings of frustration and
dissatisfaction, which ultimately lead to turnover.
Role conflict occurs when there is inconsistency between the perceived
role and role behavior. There are several different forms of role conflict.
Interrole conflict occurs when there is conflict between the different roles
that people have. For example, work roles and family roles often compete
with one another and cause conflict. Intrarole conflict occurs when
individuals must handle conflicting demands from different sources while
performing the tasks associated with the same role.
GROUP NORMS.
Norms are acceptable standards of behavior within a group that are shared
by the members of the group. Norms define the boundaries of acceptable
and unacceptable behavior. They are typically created in order to facilitate
group survival, make behavior more predictable, avoid embarrassing
situations, and express the values of the group. Each group will establish
its own set of norms that might determine anything from the appropriate
dress to how many comments to make in a meeting. Groups exert pressure
on members to force them to conform to the group's standards. The norms
often reflect the level of commitment, motivation, and performance of the
group.
Performance norms determine how quickly members should work and how
much they should produce. They are created in an effort to determine
levels of individual effort. They can be very frustrating to managers
because they are not always in line with the organization's goals. Members
of a group may have the skill and ability to perform at higher levels but they
don't because of the group's performance norms. For example, workers
may stop working a production machine at 20 minutes before quitting time
in order to wash up, even though they produced fewer items that day than
management intended.
Reward-allocation norms determine how rewards are bestowed upon group
members. For example, the norm of equality dictates equal treatment of all
members. Every member shares equally so rewards are distributed equally
to everyone. Equity norms suggest that rewards are distributed according
to the member's contribution. In other words, members who contribute the
most receive the largest share of the rewards. Members may contribute
through effort, skill, or ability. Social responsibility norms reward on the
basis of need. Members who have special needs therefore receive the
largest share of the reward.
The majority of the group must agree that the norms are appropriate in
order for the behavior to be accepted. There must also be a shared
understanding
Exhibit 1
that the group supports the norms. It should be noted, however, that
members might violate group norms from time to time. If the majority of
members do not adhere to the norms, then they will eventually change and
will no longer serve as a standard for evaluating behavior. Group members
who do not conform to the norms will be punished by being excluded,
ignored, or asked to leave the group.
GROUP COHESIVENESS.
Cohesiveness refers to the bonding of group members and their desire to
remain part of the group. Many factors influence the amount of group
cohesiveness. Generally speaking, the more difficult it is to obtain group
membership the more cohesive the group. Groups also tend to become
cohesive when they are in intense competition with other groups or face a
serious external threat to survival. Smaller groups and those who spend
considerable time together also tend to be more cohesive.
Cohesiveness in work groups has many positive effects, including worker
satisfaction, low turnover and absenteeism, and higher productivity.
However, highly cohesive groups may be detrimental to organizational
performance if their goals are misaligned with organizational goals. Highly
cohesive groups may also be more vulnerable to groupthink. Groupthink
occurs when members of a group exert pressure on each other to come to
a consensus in decision making. Groupthink results in careless judgments,
unrealistic appraisals of alternative courses of action, and a lack of reality
testing. It can lead to a number of decision-making issues such as the
following:
Brainstorming
Nominal group thinking
Didactic technique
Delphi technique
Brainstorming
This technique includes a group of people, mostly between five and ten in number,
sitting around a table, producing ideas in the form of free association. The main focus
is on generation of ideas and not on evaluation of these ideas.
If more ideas can be originated, then it is likely that there will be a unique and creative
idea among them. All these ideas are written on the blackboard with a piece of chalk so
that all the team members can see every idea and try to improvise these ideas.
Brainstorming technique is very effective when the problem is comparatively precise
and can be simply defined. A complex problem can be divided into parts and each part
can be dealt with separately at a time.
Nominal Group Thinking
This technique is similar to brainstorming except that this approach is more structured.
It motivates individual creativity. Members form the group for namesake and operate
independently, originate ideas for solving the problem on their own, in silence and in
writing. Members do not communicate well with each other so that strong personality
domination is evaded.
The group coordinator either collects the written ideas or writes them on a large
blackboard so that each member of the group can see what the ideas are. These ideas
are further discussed one by one in turn and each participant is motivated to comment
on these ideas in order to clarify and improve them. After all these ideas have been
discussed, they are evaluated for their merits and drawbacks and each actively
participating member is needed to vote on each idea and allot it a rank on the basis of
priority of each alternative solution.
The idea with the highest cumulative ranking is selected as the final solution to the
problem.
Didactic Interaction
This technique is applicable only in certain situations, but is an excellent method when
a situation actually demands it. The type of problem should be such that it generates
output in the form of yes or no. Say for example, a decision is to be made whether to
buy or not to buy a product, to merge or not to merge, to expand or not to expand and
so on. These types of decision requires an extensive and exhaustive discussion and
investigation since a wrong decision can have serious consequences.
There are many advantages as well as disadvantages of this type of situation. The
group that makes the decision is divided into two sub-groups, one in favor of the “go”
decision and the opposing in favor of “no go” decision.
The first group enlists all the “pros” of the problem solution and the second group lists
all the “cons”. These groups meet and discuss their discoveries and their reasons.
After tiring discussions, the groups switch sides and try to find weaknesses in their own
original standpoints. This interchange of ideas and understanding of various viewpoints
results in mutual acceptance of the facts as they exist so that a solution can be put
together around these facts and ultimately a final decision is reached.
Delphi Technique
This technique is the improvised version of the nominal group technique, except that it
involves obtaining the opinions of experts physically distant from each other and
unknown to each other.
This isolates group members from the undue influence of others. Basically, the types of
problems sorted by this technique are not specific in nature or related to a particular
situation at a given time.
For example, the technique could be used to explain the problems that could be
created in the event of a war. The Delphi technique includes the following steps −
The problem is first identified and a panel of experts are selected. These experts are asked to provide potential
solutions through a series of thoughtfully designed questionnaires.
The results of the questionnaire are composed at a central location and the central coordinator prepares a second
set of questionnaire based on the previous answers.
Each member receives a copy of the results accompanied by the second questionnaire.
Members are required to review the results and respond to the second questionnaire. The results typically trigger
new solutions or motivate changes in the original ideas.
These interaction types are not mutually exclusive and may vary according to context.
Invisible elements − These inner elements of the group cannot be seen by people outside the group or firm.
Example, values, norms, assumptions, etc. Now let us discuss some other elements of organizational culture.
They are −
Practice − Discipline, daily routine or say the tight schedule everyone follows without any failure.
Values and Norms − The idea over which a company is based or the thought of the firm is considered as its
value and the condition to adopt them are called norms.
Assumptions − It means we consider something to be true without any facts. Assumptions can be used as the
standard of working, means the employees prepare themselves to remain above standard.
Organizational change
Organizational change can be defined as the alteration in structure, technology or
people in an organization or behavior by an organization. Here we need to note that
change in organizational culture is different from change in an organization. A new
method or style or new rule is implemented here.
An organizational change occurs due to two major factors namely −
External factor − External factors are those factors that are present outside the firm but force the firm to change
or implement a new law, rule etc. For example, all banks are bound to follow the rules laid down by the RBI.
Internal factor − Internal factors are those factors that are caused or introduced inside an organization that forces
a change. For example, no smoking in the workplace.
Restoring force − Restoring force is the force which changes the culture from the existing state to the old state. It
indicates a backward motion while the driving force indicates a forward motion.
Planned Change
We can define planned change as any kind of alteration or modification which is done
in advance and differently for improvement.
The Need for Planned Change
Planned change takes places in an organization when there is a demand for change
due to two types of forces. These forces are grouped into internal sources and external
sources.
Internal forces that lead to a planned change in an organization include obsolescence
of production and service, new market opportunities, new strategic direction, increasing
workforce diversity, and shift in socio-cultural values.
External forces that lead to a planned change in an organization include regulators,
competitors, market force, customers, and technology. Each of these forces can create
pressing demand for change in small or big, public or private, business or non-
business organizations.
Process of Planned Change
Once the management decides to implement some changes in the organization, it
needs to be done carefully as it is a very sensitive issue. It is very important for all the
employees to adapt to change. According to Kurt Lewin, the planned organizational
change is implemented in three different stages. They are −
Unfreezing − In this stage, the organization studies if the change is required or not, what and why is the change
necessary. Considering the entire situation, the organization decides for appropriate change. Thus a plan and
strategy is formulated as required.
Changing − In this stage, the organization executes the plan and program for change. For this purpose, proper
precautions are taken in order to maintain cooperation and coordination between the employees and
management, avoiding miscommunication or disputes. Adequate supervision and control is arranged as needed.
Refreezing − This is the final stage, in order to bring organizational change. By way of supervision, the
organization tries to evaluate the effectiveness of change. Collecting all this information, the management
interprets whether to continue or replace change by some other alternatives or to make further minor changes.
Change in structure
Change in technology
Change in people
Change in Structure
We say that the planned change required is change in structure when development is
required in these following areas −
Change in management
New management
Change in position or location
Change in objective, rules, regulations etc.
Launching new branches
Change in Technology
We say that the planned change required is change in technology when development
is required in these following areas −
Change in People
We say that the planned change required is change in people when development is
required in these following areas −
Reactions to change may take many forms.
Active resistance is the most negative reaction to a proposed change attempt. Those who engage in
active resistance may sabotage the change effort and be outspoken objectors to the new procedures.
In contrast, passive resistance involves being disturbed by changes without necessarily voicing these
opinions. Instead, passive resisters may quietly dislike the change, feel stressed and unhappy, and
even look for an alternative job without necessarily bringing their point to the attention of decision
makers. Compliance, on the other hand, involves going along with proposed changes with little
enthusiasm. Finally, those who show enthusiastic support are defenders of the new way and actually
encourage others around them to give support to the change effort as well.
Any change attempt will have to overcome the resistance on the part of people to be successful.
Otherwise, the result will be loss of time and energy as well as an inability on the part of the
organization to adapt to the changes in the environment and make its operations more efficient.
Resistance to change also has negative consequences for the people in question. Research shows
that when people negatively react to organizational change, they experience negative emotions, use
sick time more often, and are more likely to voluntarily leave the company.
The following is a dramatic example of how resistance to change may prevent improving the status
quo. Have you ever wondered why the letters on keyboards are laid out the way they are? The
QWERTY keyboard, named after the first six letters in the top row, was actually engineered to slow us
down. The first prototypes of the typewriter keyboard would jam if the keys right next to each other
were hit at the same time. Therefore, it was important for manufacturers to slow typers down. They
achieved this by putting the most commonly used letters to the left-hand side, and scattering the most
frequently used letters all over the keyboard. Later, the issue of letters being stuck was resolved. In
fact, an alternative to the QWERTY named the Dvorak keyboard provides a much more efficient
design and allows individuals to double traditional typing speeds. Yet the shift never occurred. The
reasons? Large numbers of people resisted the change. Teachers and typists resisted, because they
would lose their specialized knowledge. Manufacturers resisted because of costs inherent in making
the switch and the initial inefficiencies in the learning curve. In short, the best idea does not necessarily
win, and changing people requires understanding why they resist.
Figure 14.11
The Dvorak keyboard is a more efficient design compared to the QWERTY keyboard. Due to
resistance from typists, manufacturers, and teachers, it never gained widespread adoption.
Disrupted Habits
People often resist change for the simple reason that change disrupts our habits. Do you think about
how you are driving when you drive? Most of the time probably not, because driving generally
becomes an automated activity after a while. You may sometimes even realize that you have reached
your destination without noticing the roads you used or having consciously thought about any of your
body movements. Now imagine you drive for a living, and even though you are used to driving an
automatic car, you are now forced to use a stick shift. You can most likely figure out how to drive a
stick, but it will take time, and until you figure it out, you cannot drive on auto pilot. You will have to
reconfigure your body movements and practice shifting until you become good at it. You may find that
for this simple reason, people sometimes are surprisingly outspoken when confronted with simple
changes such as updating to a newer version of a particular software or a change in their voice mail
system.
Personality
Some people are more resistant to change than others. Research shows that people who have a
positive self-concept are better at coping with change, probably because those who have high self-
esteem may feel that whatever the changes are, they are likely to adjust to it well and be successful in
the new system. People with a more positive self-concept and those who are more optimistic may also
view change as an opportunity to shine as opposed to a threat that is overwhelming. Finally, risk
tolerance is another predictor of how resistant someone will be to stress. For people who are risk
avoidant, the possibility of a change in technology or structure may be more threatening.
Feelings of Uncertainty
Change inevitably brings feelings of uncertainty. You have just heard that your company is merging
with another. What would be your reaction? Such change is often turbulent, and it is often unclear what
is going to happen to each individual. Some positions may be eliminated. Some people may see a
change in their job duties. Things can get better—or they may get worse. The feeling that the future is
unclear is enough to create stress for people, because it leads to a sense of lost control.
Fear of Failure
People also resist change when they feel that their performance may be affected under the new
system. People who are experts in their jobs may be less than welcoming of the changes, because
they may be unsure whether their success would last under the new system. Studies show that people
who feel that they can perform well under the new system are more likely to be committed to the
proposed change, while those who have lower confidence in their ability to perform after changes are
less committed.
It would be too simplistic to argue that people resist all change, regardless of its form. In fact, people
tend to be more welcoming of change that is favorable to them on a personal level (such as giving
them more power over others, or change that improves quality of life such as bigger and nicer offices).
Research also shows that commitment to change is highest when proposed changes affect the work
unit with a low impact on how individual jobs are performed.
Prevalence of Change
Any change effort should be considered within the context of all the other changes that are introduced
in a company. Does the company have a history of making short-lived changes? If the company
structure went from functional to product-based to geographic to matrix within the past 5 years, and the
top management is in the process of going back to a functional structure again, a certain level of
resistance is to be expected because people are likely to be fatigued as a result of the constant
changes. Moreover, the lack of a history of successful changes may cause people to feel skeptical
toward the newly planned changes. Therefore, considering the history of changes in the company is
important to understanding why people resist. Also, how big is the planned change? If the company is
considering a simple switch to a new computer program, such as introducing Microsoft Access for
database management, the change may not be as extensive or stressful compared to a switch to an
enterprise resource planning (ERP) system such as SAP or PeopleSoft, which require a significant
time commitment and can fundamentally affect how business is conducted.
One other reason why people may resist change is that change may affect their power and influence in
the organization. Imagine that your company moved to a more team-based structure, turning
supervisors into team leaders. In the old structure, supervisors were in charge of hiring and firing all
those reporting to them. Under the new system, this power is given to the team itself. Instead of
monitoring the progress the team is making toward goals, the job of a team leader is to provide support
and mentoring to the team in general and ensure that the team has access to all resources to be
effective. Given the loss in prestige and status in the new structure, some supervisors may resist the
proposed changes even if it is better for the organization to operate around teams.
Stress
Stress is a psychological condition and body discomfort. Stress is a common phenomenon. Every
individual experiences stress at some or other time. Employees experience stress in the process of
meeting the targets and working for long hours. When the person experiences a constraint inhibiting the
accomplishment of desire and demand for accomplishment, it leads to potential stress. Anxiety is
converted into stress and ultimately it leads to job burnout. In fact for most of the time individuals are
responsible for stress. However, organisations also create stress in the individuals. Why one should be
concerned about stress? The reason is that the stress has more negative consequences than positive. In
this unit, you will learn the definition, causes and consequences of stress. You will be exposed to the
techniques of managing stress. You will further learn the process of creating stress free environment.
DEFINITION OF STRESS
Stress is a state of discomfort experienced by an individual. Loss of emotional stability is the general
expression of stress. It is generally apparent when the individual experiences a biological disorder. Stress
has a positive association with the age, life styles, time constraints and the nature of occupation. Certain
occupations are more prone to the stress than the others. For instance, drivers of vehicles, doctors,
lawyers and managers are more likely to get stress than teacher, bankers and operating personnel.
Individuals feel stress when the needs or desires are not accomplished in the normal expected ways.
This is because of the natural constraints operated on the individuals. The more the intensity of the
desire and greater is the uncertainty associated with the achievement of the goal, the greater is the
degree of stress. Employees are working for longer hours, taking on the work once done by laid-off
colleagues, meeting tighter deadlines and cutting back on expenses are some of the causes of stress.
Combined to this with the double-income family demands of monthly mortgages, childcare issues and
aging parents, and the result for many is anxiety, sleeplessness, irritability, and physical and mental
deterioration. Perhaps these are the potential reasons for stress in the employees. Let us first learn
what is stress? In the words of Fred Luthans, stress is defined as an adaptive response to an external
situation that results in physical, psychological, and/or behavioural deviations for organisational
participants. Ivancevich and Matteson define stress as the interaction of the individual with the
environment. It is an adaptive response, mediated by individual characteristics and/or psychological
processes that are consequence of any external action, situation or event that places special physical
and / or psychological demands upon a person. Schuler defines stress as a dynamic condition in which
an individual is confronted with an opportunity, constraint, or demand related to what he or she desires
and for which the outcome is perceived to be both uncertain and important.
• It is symptomatic. Potential stress appears with the symptoms. If the potential stress is ignored it leads
to actual stress.
• Stress is treated to be negative. Nevertheless, it has positive consequences. This is called as eustress.
• Stress is an interactive concept. It does not spring from the internal organs of the individual. It comes
from the interaction of the human being with the environment. Thus, environment has a profound
influence on the stress.
• Stress is generic term. If it is applied to the context of organisation, it is known as work stress or job
stress.
• Stress occurs only when the human being feels mediation of the internal or external factors.
• Stress is related to the attitude of the person. Stress does not occur when the person is having an
indifferent attitude to the opportunity.
• Stress is associated with certain common biological disorders such as heart attack, stroke, diabetic,
blood pressure, neurological disorders etc.
The stress is caused when a person has needs, desires, wishes and expectations and certain forces
prevent the person from doing the desired activities. Stress and anxiety are not similar concepts. Anxiety
occurs as a result of emotions caused by the interactions of environmental stimuli. Thus, it is confined to
the psychological disturbance. On the other hand, stress is originated by the psychological tensions and
slowly leads to physical or biological breakdown. While stress is accompanied by anxiety, the latter need
not always lead to stress. Similarly, stress and burnout are different concepts. Prolonged stress leads to
burnout. It is a state of mind. It results from a continuous feeling of emotional stress. An individual feels
physical, mental and emotional exhaustion. Job burnout is characterised by emotional exhaustion,
depersonalisation, and diminished personal accomplishment. Burnout is also closely associated with the
so-called helping professions such as nursing, education, and social work
CAUSES OF STRESS
Stress is a psychological state of imbalance coupled with biological disorder. Individual experiences
deviation in his biological system which is called potential stress. Potential stress moderated by
individual, organisational and environmental variable leads to actual stress. The variables that convert
potential stress into actual stress are known as stressors. Thus, stressors can be intra- organisational and
extra organisational. Intra-organisational stress arises out of individual, group, and organisational
factors. Extra organisational factors relate to environment of the organisation. The intra organisational
factors causing stress are divided into individual factors and organisational factors. Let us learn them in
detail.
Individual Factors: Individual factors, which cause stress include: personality and individual differences,
family problems, economic problems, life styles and role demands.
i) Personality and individual differences: Individual basic dispositions are the main reason for potential
stress. Introversion, extroversion, masculinity, rigidity, locus of control, personal life, demographic
differences such as age, health, education and occupation are some of the reasons causing stress in
individuals. It is found that type A personality is prone to more stress than type B personality. Type A
personality is characterised by emotion and sensitivity to organisation goals, competitive spirit and
achievement oriented behaviour. This leads to frustration even for small deviations from the
expectations, thus feeling of more stress. Type B personality is typically relaxed, carefree, patient and
less serious in achieving objectives. Thus, he never feels stress. Some propositions of personality and
individual stress are:
• Age is positively related to stress. When a person grows older, his expectations also go up. If he is
unable to find avenues for realising expectations, he feels stress.
• Sound health enables a person to cope up stress better than unsound health.
• Education and health are related positively and negatively. Better education provides an opportunity
to understand things in a better manner. Even the level of maturity increases with better education. So
better educated persons are less prone to stress. Poorly educated people in relation to the jobs are
likely to feel more stress due to the poor adaptability on the jobs.
• The nature of the occupation and stress are related. Certain occupations are inherently stressful than
the other occupations. For instance, doctors, lawyers, politicians etc. At the same time occupation also
gives enough stress tolerance ability. Politicians are found to posses more stress tolerance ability.
• Strong urge for satisfaction of needs compel people to over work and may lead to stress.
• Greater degree of locus of control leads to stress. A person is less likely to feel stress as he believes
that he can exercise control over external factors.
• Self-efficacy and stress are negatively related. Higher degree of self-efficacy elevates motivation
levels. Therefore people with greater self-efficacy remain calm and effectively face stressful situation.
Perception of capacity to bring changes provides greater ability to withstand stress.
• Another personal disposition related to stress is psychological hardiness. Hardiness is the ability to
withstand provocation from others. People with greater psychological hardiness are able to survive and
withstand stressful environment. For instance, people who remain calm even at the provocation of
others and ignore the esteem are less likely to feel stress. Individual differences in perception, job
experiences, social support, hostility etc., are some of the reasons that cause stress.
• Job experience and stress are negatively related. As one gains experience he develops adaptability to
various job and organisational demands. He realises the job expectations. He develops a mechanism to
deal with stress situations. Therefore more experienced people remains cool, calm, and ignore stressors
than young and inexperienced employees.
• Hostility and aggressive behaviour is positively related to stress. A person who becomes aggressive
and gets quick anger is cynical and does not trust others. He feels more stress than others who are cool
and calm.
ii) Family Problems: Family issues influence the personal life of individuals. Sound marital relationships,
marital discipline, early and healthy children may lead to happy personal life. They enjoy the life and
become positive in their attitudes. So they do not tend to greater stress. On the other hand, poor
marital relationships, nagging wife, family separations, extra marital relationships, disturbing children,
poor settlement of family members, aging parents, dual working couple, death of spouse or other close
family member are some of the reasons for greater stress in the individuals.
iii) Economic Problems: Economic difficulties are the main cause of stress. Poor management of
personal finances, heavy family expenditure, and constant demand for money, poor incoming earning
capacity and slow financial growth in the job are some of the economic reasons responsible for greater
stress. For instance, an increasing family expenditure, increased expenditure on children education and
health create heavy demand for income. This creates greater stress in the individuals.
iv) Life Styles: Life Styles of individuals can cause stress. The following situations of life style cause
stress: • Sedentary life styles cause greater stress. • Individuals experiencing certain unique situations
may be compelled to alter their attitude, emotions and behaviour. These are known as life trauma. Life
trauma is potential reason for stress. • Faster career changes bring more responsibilities to the
individuals. Persons occupying higher positions in the younger age are likely to get heart attacks due to
greater stress. This is because of inability to adapt to the new carrier responsibilities.
v) Role Demands: Individuals play multiple roles in their personal life and organisations. In their
personal life, they play the roles of family head, husband, father, brother and son. In social life they play
the roles of club members, informal community group members, members of recreation groups,
religious groups and a number of other social groups. Similarly in organisations, employees play the role
of superior, subordinate, co-worker, union leader, informal group leaders etc. Incidentally, all these
roles are performed simultaneously. Thus, they cause anxiety and emotion. Another potential reason is
role conflict. It arises because of poor role perception, role ambiguity, role overload and role
overlapping. Role ambiguity and stress are positively related. The greater the role conflict, individual
experiences more stress.
i) Working Conditions: Working conditions and stress are inversely related. Employees working with
poor working conditions are subject to greater stress. The factors that lead to more stress are crowded
work areas, dust, heat, noise, polluted air, strong odour due to toxic chemicals, radiation, poor
ventilation, unsafe and dangerous conditions, lack of privacy etc.
ii) Organisational Tasks: Organisational tasks are designed to meet the objectives and goals. Poorly
designed tasks lead to greater stress. Task autonomy, task inter-dependency, task demands, task
overload are some of the potential reasons for stress in organisations. For instance greater the task
interdependence, greater is the coordination required. This requires employees to adjust themselves to
coworkers, superiors, and subordinates, irrespective of their willingness. They are expected to
communicate, coordinate, exchange views, with other people irrespective of caste, creed, gender,
religion and political differences. Lack of adjustment and poor tolerance to others lead to greater degree
of stress.
iii) Administrative Policies and Strategies: Employee’s stress is related to certain administrative
strategies followed by the organisations. Down sizing, competing pressure, unfair pay structures, rigidity
in rules, job rotation and ambiguous policies are some of the reasons for stress in organisations.
iv) Organisational Structure and Design: As pointed out earlier organisational structure is designed to
facilitate individual’s interaction in the realisation of organisational goals. Certain aspects of design like
specialisation, centralisation, line and staff relationships, span of control, and organisational
communication can severely create stress in organisations. For example, wider span of management
compels the executive to manage large number of subordinates. This may create greater stress.
Similarly, frequent line and staff conflict lead to obstacles in the work performance. Inability to resolve
the conflicts lead to stress.
v) Organisation Process and Styles: A number of organisational processes are designed for meeting
organisational goals. Communication process, control process, decision making process, promotion
process, performance appraisal process, etc. are designed for realising organisational objectives. These
processes limit the scope of functioning of employees. Improper design of various organisational
processes leads to strained relationships among the employees. They may also cause de-motivation and
job dissatisfaction. Consequently, employee feels stress in adapting to the processes.
vi) Organisational Leaderships: Top management is responsible for creation of a sound organisation
climate and culture by appropriate managerial style. The climate provided should be free of tensions,
fear, and anxiety. Authoritarian leadership style creates a directive environment in which employees are
pressurised to attain targets. They work under impersonal relationships and tight controls. This creates
greater work stress to employees. On the other hand, a climate of warm and friendliness, scope for
participation in decision making, non financial motivation and flexibility are encouraged under
democratic leadership style. This relieves stress in the employees. Therefore, employees working under
authoritarian leadership styles experience stress than employees working under democratic leadership
style.
vii) Organisational Life Cycle: Every organisation moves through four phases of organisational life cycle.
They are birth, growth, maturity and decline. In each of these stages the structure and the design of
organisation undergoes frequent changes. In addition, human beings are subject to metamorphosis to
adapt to the stages in the life cycle. In this process, employees are subject to job stress. For instance in
the initial stages of organisational birth, stress is caused because of ambiguous policies and designs. In
the growth stage, employees experience stress due to failure to meet conflicting demands. At the time
of decline, stress is caused due to down sizing, retrenchment and loss of financial rewards and changing
organisational systems
viii) Group Dynamics: Groups are omni present in organisations. Groups arise out of inherent desire of
human beings and spontaneous reactions of people. In organisations both formal groups and informal
groups exist. A formal group exist in the form of committees, informal group exit among different levels
of organisation. Groups have a number of functional and dysfunctional consequences. They provide
social support and satisfaction, which is helpful in relieving stress. At the same time, they become the
source of stress also. Lack of cohesiveness, lack of social support, lack of recognition by the group and
incompatible goals cause stress
Extra-Organisational Factors
Environmental Factors: Environmental factors are extra organisational. Nevertheless, they create job
stress in the individuals. These are internal and external factors. Most of the internal environmental
factors
relate to the organisational goals, management systems, structure, processes and design of
organisations.
They are discussed in the preceding section. External environmental factors relate to the general
environment of the organisation. They are political, economical, technological, legal, ecological,
governmental, social, cultural and ethical. Certain propositions describing the impact of environment on
Certain other environmental factors that result in stress in recent times are stock market crashes, frequent
elections, down sizing, information technology and the related changes in the business. Career oriented
couples, racial and gender discriminations, health hazards due to pollution and imbalance in the natural
environment etc. are contributing to stress
CONSEQUENCES OF STRESS
Physiological Consequences: Stress influences the biological system of the human being. Certain visible
forms of stress are increased blood pressure, proneness to heart disease, cancer, sweating, dry mouth,
hot and cold flashes, frustration, anxiety, depression, increased level of cholesterol, ulcer, arthritis etc.
Physical stress increases the body metabolic rate. This results into malfunctioning of internal gland and
consequently the body disorder. This is felt in the form of increasing heart beating, increase in breathing
rate and headache. This creates biological illness. The physical stress also creates psychological
problems. In fact, physical stress and physiological disorders are interrelated. However, physical
disorders and stress always need not associate positively. This is because of complexity of symptoms of
physical stress and lack of objective measurement of impact of stress on bodily disorders.
i) Perception: Stressful individuals develop tension and anxiety. As a result, their level of understanding
considerably decreases. When perceptual distortions occur in the employees, it may adversely affect
decision making process, interpersonal understanding, interpersonal communication and capacity to
work with groups. They become stress intolerable. All these lead to increased levels of interpersonal
conflicts.
ii) Attitudes: Continued stressful environment creates certain permanent negative impressions in the
mind of the employees. These permanent impressions adversely influence their work performance. For
example, an employee developing a negative attitude on work, superior, working conditions,
organisational climate and culture intentionally decreases his output. He also becomes demoralised and
the motivation level decreases.
iii) Learning : Employees in organisations continuously learn new skills and techniques. Learning new
methods and techniques to adapt themselves and discharge their jobs effectively is inevitable to
employees. Stressful employees can not learn the things quickly
Organisational Consequences : Stress has negative impact on the performance of the job. Organisations
face the problems of poor performance and other negative consequences. Some of them are described
below:
i) Absenteeism: Employees subject to stress were found to addict to drugs and alcohol. Thus, they
abstain from the jobs frequently. This creates discontinuity in the jobs and adversely effect performance
of other employees.
ii) Turnover: Turnover and stress have shown some relationships. An employee experiencing continued
stress develops disgust and frustration. Therefore, they are likely to change their jobs
iii) Decision-Making: Excessive stress distorts perception of managers. This adversely effects their
capacity to take decision. Thus, stressful executives become irrational in the decision making. This leads
to loss of organisational resources and reputation
iv) Disturbed Customer Relationships: Employees experiencing excessive stress develop irritation,
looses emotional stability and emotional tolerance. Intolerance impels them to pick up conflicts easily
due to misunderstandings. Employees dealing with the customers and the public disturb relationship
due to their inpatient behaviour. For instance sales persons, bank employees, public relation executives
are required to be more emotionally stable. Otherwise, customers dealing with them will have trouble in
dealing with the company. This also creates poor impression on the corporate image of the organization
The consequences of stress are multifaceted. Stress has a vicious circle. Most of the consequences of the
stress are interdependent. One has roots into the other. For instance, psychological consequences result
in physiological disorders, the later will produce behavioural consequences and ultimately the
organisation suffers from adverse effects. The ill effects of stress are more dangerous. Addiction to
smoking, drinking alcohol, narcotic drugs, perverted sex, atrocities on women and children, criminal
attitude, terrorism and indecent behaviour are some of the social consequences of stress. It is in this
context that stress received more attention of the organisations, psychologists and the medical
practitioners in recent times. A number of strategies exist to overcome stress. Most of them suggest
leading a peaceful, calm and regulated life. Interestingly people overlook their life styles and suffer from
stress. However, stress is not difficult to overcome.
When we look at stress from organizational point of view, management may not be concerned about the low to moderate
levels of stress experienced by the employees. The reason is, that some functional level of stress is necessary to improve
employee performance. But high levels of stress and sustained low levels of stress are a cause of action by the
management. But when we look at stress from individual's point of view even the low levels of stres s are perceived to be
undesirable. Keeping this in mind we can discuss the individual and organizational approaches towards managing stress.
Before discussing these approaches, we must keep in mind two points :
(i) Firstly, we must not make any generalization. Each of us have different limits, different optimum stress levels and will
perceive the sources of stress differently. One person's overstress may be another person's challenge and optimum stress.
(ii) Secondly, we need to differentiate between what we can do to equip ourselves and to organise our environment to
prevent us from becoming over or under stressed. We label this as Prevention. Yet, however, well, we prepare ourselves
and try to control our environment from time to time, we will still experience undesirable stress. It is then that we need to
have developed Management Skills.
Individual approaches
As we know that stress has got a number of negative consequences for the individuals, that is why every individual should
take personal responsibility for reducing his or her stress level. There are a number of ways by which a person can either
avoid stressful conditions, change them or learn to cope with them. Stress can be managed by an individual, which will
enable him to regain control over his life. Some of the stress reducing strategies from individual's point of new are :
1. Knowledge About Stress : in the first stage, an individual should become knowledgeable about stress. He should
know about the process and effects of stress. He must find out the major sources of his stress. He must anticipate stressful
periods and plan accordingly in advance. He must be honest with himself and decide what he can cope with what h e cannot.
2. Physiological Fitness : Exercise in any form can help people in coping with the stress. Non competitive physical
exercise such as aerobics, walking, jogging, swimming, riding a bicycle, playing softball or tennis have been recommended
by physicans as a way to deal with excessive stress levels. There is evidence to suggest that individuals who exercise are
much less likely to suffer from certain types of stress related exercises. With proper exercise, diet control and nonsmoking
habits, blood pressure and cholesterol become controlled and the body becomes more resistant to pressures. People are
more likely to get physically sick or emotionally depressed if they are over weight or poorly nourished.
3. Time Management : Most of the people are very poor in managing the time. They do not know that what must be done
and when it would be desirable to do so. The result of poor time management is feeling of work overload, skipped schedules
and tension. A well organized person can often accomplish twice as much as the person who is poorly organized. Therefore,
an individual must understand how to manage his time so that he can cope with tensions created by job demands. A few of
the well known time management principles are :
(iv) Knowing your daily schedule and handling the most demanding parts of a job when you are most alert and productive.
4. Assertiveness : An individual should become assertive. He should not say 'Yes' when he wants to say 'No'. He should
start saying No to people or managers who demand too much of his time. Being assertive is an important factor in reducing
stress.
5. Social Support Network : Every person should have people to turn to, talk to and rely upon. Good friends become
highly supportive during times of stress and crisis. Social network includes friends, family or work colleagues. Expanding
your social support system can be a means for tension reduction because friends are there when needed and provide
support to get the person through stressful situation.
6. Readjust life Goals : Every individual must know what he really wants to do. This should relate to not only the major
decision of the life but to all activities in our life. He must know what is important for his. Because of the severe competition
in life to go ahead, most individuals set very high standards and goals for themselves. These high expectati ons and limited
resources to reach such expectations result in stress. Accordingly, every person must readjust his goals and make sure he
has ability and resources to reach such goals. Perhaps the goals should be established after the resources have been
analysed.
7. Relaxation Techniques : Every individual must teach himself to reduce tension through relaxation techniques such as
Yoga, mediation, hypnosis and biofeedback. 15-20 minutes a day of deep relaxation releases tension and provides a person
with pronounced sense of peacefulness. Deep relaxation condition will bring significant changes in heart rate, blood
pressure and other physiological factors. Yoga is probably the most effective remedy for stress. Studies have revealed that
Yoga has cured several stress related diseases.
8. Plan Your Life in Advance : So many times, people create situations which induce stress because they either did not
plan or did a bad job of planning. The traditional Indian attitude of "Whatever will be, will be" a way of accepting the
unexpected difficulties in life. This attitude may be relevant in those situations over which we do not have any control like
death in the family, but for other events in life, it is better to plan in advance, so that we can confront them with confidence
when they occur.