MCO 01 Neeraj Publication Book

ORGANISATION THEORY
AND BEHAVIOUR
Organisation Theory
Introduction to Organisation 1
continuously to achieve the common goal or set of goals.
INTRODUCTION The features and activities which are describing the
An organisation is a sum total of persons or organisation as a social entity are the activities which
individuals working together for a common goal and are coordinated and properly managed by the
objective. The working is based on various principles management. Secondly, the identifiable boundaries
to ensure the effective and efficient working of the need to be managed in time to achieve the goals in the
organisation. It enables to have proper line of authority stipulated time.
to enable the co-ordination and effective communication. The significance of an organisation is to ensure
The manager is expected to perform main functions to specialisation in the enterprise. It helps to clear the
accomplish the work they are planning, organising, line of authority and responsibility amongst the
staffing, directing, communicating, decision-making and employee and employer. It facilitates better
controlling. Managers are expected to play interpersonal coordination and communication. It enables the
as well as informational roles in order to maintain proper management to implement and adapt to new
balance between the various levels of management. technology. It gives better human relations in the
Modern organisations have become the innovative
enterprise.
structure between old and new technology. These
The main objective of every organisation is to have
changes have led to the increase in competition, small
economic progress. It can only be possible if the entire
companies have collaborated with big and Multinational
process is planned, organised, directed and controlled
Companies. They are now more quality based than
properly by all levels of management’s namely top
quantity.
level, middle level and supervisory level. The
SUMMARY organisational structure should be dynamic enough to
An organisation is an arrangement and group of curtail the needs and objectives of the organisation.
people working together to pursue collective goals, by General principles and guidelines of management laid
applying certain principles of management to down by Henry Fayol helps in the smooth and effective
accomplish the work effectively and efficiently. Every performance of every business enterprise.
organisation appoints a manager to play a dominant The main functions performed by managers of an
role in interacting with the people and to organize the organisation are planning, organising, staffing,
activities among themselves to get the work done within directing, communicating, decision-making and
a stipulated time period. controlling. Manager sets the objectives in each and
Organisation is considered as a social entity having every area. He also makes the objectives effective by
an identifying boundary to function relatively communicating them to the people whose performance
2 / NEERAJ : ORGANISATION THEORY AND BEHAVIOUR
is needed to attain them. Each and every department (iv) Ethical standards required to be enforced, to
should be planned and organised in such a manner that make the output professional.
the group who is appointed to do the work does equal (v) Provision of suitable remuneration is there
justice to the work assigned to them or else the whole to the members in the service of
activity will be useless. Manager motivates and management.
communicates the team according to the position and An organisation is a process of management where
promotion given to them. He establishes the yard stick manager create, direct, maintain and operate the basic
to measure the performance of the whole organisation functions to meet the requirement of the goals laid down
and focuses on the work of the individual and help him for the economic growth of the business. It varies from
to do the work. He analyses, appraises and interprets an organisation to organisation and according to the
the performance. He develops people by setting types of organisations.
objectives, organising, motivating and communicating, Organisations can be classified according to the
measuring and developing people according to the need, nature, structure and functions of business
categories. enterprise. The organisations which are structure based
Besides these principles they perform various roles are termed as formal and informal organisation. Formal
also in an organisation namely, interpersonal roles organisation is structured, rigid, defined and durable
which includes leading, liasioning, and symbol or figure whereas an Informal organisation is loose, flexible,
head, informational roles covers monitoring, sharing undefined and spontaneous. Then there are certain
information and to act as a spokesperson and decisional organisations which are classified according to the
roles such as taking initiative, handling disagreement, emotional involvement of people, they are termed as
allocating resources and negotiating. All these functions primary and secondary organisation. Primary
and roles are performed by the managers in order to organisations are totally emotionally based and
maintain a balance between all the levels of secondary are contractual based. There are certain
management. These functions are performed by the organisations which are based on principal objectives
senior managers and high rank officers in order to such as service organisations like charity, schools, roads
maintain a balance between the work and people. etc., economic organisations such as partnerships, co-
Besides assigning and getting the work done through operations etc. , religious organisations such as temples,
the subordinates, it becomes the duty to take care of trusts, churches, etc. , protective organisations such as
them, by giving them enough space to express police, fire department etc., government organisations
themselves and work satisfactorily in the organisation. such as central and state government departments,
Thus managers play a very important role in the smooth courts, etc., and social organisations such as clubs, teams
functioning of an organisation by devoting their time etc.
to the staff and giving them enough space to express Employees are the functional bodies of an
and solve the issues, be it official or personal. In the organisation; therefore, the activities performed by them
modern era, management has developed a lot as should be excellent in all respects. They should be
compared to the olden days. It used to be only a function possessing desirable skills and traits in order to give
in the organisation, to be performed by the manager the best attributes to the organisation.
and no professional skill was required to act as a Some of the expected abilities that an efficient
manager. With the advent of modern technology and employee should possess are as follows:
knowledge advancements, management has emerged (i) To establish faith and trust with the
as a profession. organisation.
Some of the characteristics of management to be (ii) To organise the work effectively.
considered as a profession are: (iii) To perceive future plans and policies for the
(i) Management is the body of knowledge. work according to the changing trends in the
(ii) Formal teaching of management is required required field.
to fulfil the criteria to be appointed as a (iv) To put adequate effort as per the requirement
manager. of the work.
(iii) Many representative associations and body (v) To be flexible in nature in order to adopt the
of members are there in the field of changes in the organisational structure or
management. functions from time-to-time.
INTRODUCTION TO ORGANISATION / 3
(vi) To establish effective human relations with Ans. We need to study about organisations as it
the insiders and outsiders. helps in understanding the aspect of business and its
(vii) To generate adequate resources for the economic status. It enables us to accomplish goals and
effective running of an organisation. objectives that can be achieved with more efficiency
Modernisation has led to the increase in the man- and precision through the concerned actions of
machine relationship in the organisation. Operational individuals. The sequences of activities required to
status of organisations have become more technical than achieve particular objectives are too much for an
manual. Thus management has become a hybrid of individual and so they can be completed successfully
old and new technology. Mathematical approach has only with the help of organisation. The role and
given rise to the quality control in the organisation. It objective of an organisation is to get the work done
has become more informational based than before. through others in order to achieve the goals effectively
The main features of modern organisations are: and efficiently. Modernisation of our life style demands
(i) It has become smaller in size due to less an organised and result oriented inputs. Therefore, the
manpower. study of organisation helps a lot in keeping the pace of
(ii) Organisational structure has become circular our work according to the desired limits, without it the
due to reduction in the layers of management. whole system will collapse as we are fully dependent
(iii) It is more of technical based so workers are on the roles and functions of an organisation.
also technically qualified than before. The activities performed by an organisation to
(iv) More emphasis is given to the customer achieve a common goal are:
satisfaction and to the share holders of the (i) Division of work among the subordinates
organisation. according to their specialisation in order to
(v) Time and place of working have become get the work done efficiently.
flexible. (ii) To authorise a person to do the work
(vi) Quality is the prime objective than quantity. independently so that he was responsible for
(vii) Due to increase in the service organisation the work and accomplish that work with full
communication has become informal and concentration and efficiency.
lateral. (iii) Proper discipline should be maintained and
(viii) Participation of middle and junior a fair share of competence in work should
management is there in decision–making as be made.
compared to the top level management, as (iv) Unity of command helps in distributing the
middle and junior management is more work evenly and helps in the stability of
technically qualified than what it used to be. work.
Therefore, we can say that due to recent and rapid (v) To maintain the decorum of the work ethics
changes in the trends and basic functions of the by giving top priority to the work than to
economic environment has given rise to the modern
the people around for the benefit of the
organisation where the structure and functions have
organisation.
changed to a great extent due to increase in competition,
Q. 2. Do the term “organisation” and “manage-
small companies collaborating with big and
ment” go together? Describe purpose of
multinational companies, use of advanced technology,
management in an organisation.
innovative products launched in the market, flexible
Ans. Yes, organisation and management go
time, being qualitative than quantitative, growing and
together, as without management, an organisation
developing aspect of working environment and
cannot achieve its goals. An organisation needs to be
technology, etc have made the modern organisation to
managed according to the various principles of
run effectively and efficiently.
management and without the effective implementation
CHECK YOUR PROGRESS of the same the expected output is not possible.
Q. 1. Why do we need to study about The purpose of management in an organisation is
organisations? How are different activities in an to get the work done through a group of people in order
organisation coordinated for achieving a common to achieve the goals related to the economic growth of
goal? the business. It is done by coordinating the available
resources through the process of planning, organising, Q. 4. What are various functions and roles of
directing and controlling to achieve the main objectives. managers?
Management helps in getting the work done effectively Ans. Managers play a dominant role in the
and efficiently by the group of people involved in the organisation and its perfect management. They are the
organisational structure. Proper implementation and life line of an organisation, without them the
coordination enables a management to make the organisation cannot function efficiently.
functioning of an organisation more flexible and The main functions performed by managers of an
healthy. It is the lifeline of an organisation, therefore, organisation are planning, organising, staffing,
management should run effectively to get the desired directing, communicating, decision-making and
results. controlling. Each and every department should be
Q. 3. Do you agree with all the 14 principles of planned and organised in such a manner that the group
management given by Henri Fayol in context of who is appointed to do the work does equal justice to
modern organisation? the work assigned to them or else the whole activity
Ans. Yes, I agree with all the 14 principles of will be useless.
management given by Henry Fayol as they allow Besides these principles they perform various roles
flexible implementation of the functions of management also in an organisation namely, interpersonal roles
in the organisation. The principles laid down by Fayol which includes leading, liasioning, and symbol or figure
are general and easy to understand. They are easily head, informational roles covers monitoring, sharing
acceptable and understood by the people. His most information and to act as a spokesperson and decisional
salient and useful features which have given roles such as taking initiative, handling disagreement,
encouraging results at all times is “Union is Strength”. allocating resources and negotiating. All these
The main features of modern organisations are: functions and roles are performed by the managers in
(i) It has become smaller in size due to less order to maintain a balance between all the levels of
manpower. management. These functions are performed by the
(ii) Organisational structure has become circular senior managers and high rank officers in order to
due to reduction in the layers of maintain a balance between the work and people.
management. Besides assigning and getting the work done through
(iii) It is more of technical based so workers are the subordinates, it becomes the duty to take care of
also technically qualified than before. them, by giving them enough space to express
(iv) More emphasis is given to the customer themselves and work satisfactorily in the organisation.
satisfaction and to the shareholders of the Thus managers play a very important role in the smooth
organisation. functioning of an organisation by devoting his time to
(v) Time and place of working have become the staff and giving them enough space to express and
flexible. solve the issues, be it official or personal.
(vi) Quality is the prime objective than quantity. Q. 5. What are various types of organisations?
(vii) Due to increase in the service organisation Ans. An organisation is a process of management
communication has become informal and where manager create, direct, maintain and operate the
lateral. basic functions to meet the requirements of the goals
(viii) Participation of middle and junior laid down for the economic growth of the business. It
management is there in decision–making as varies from an organisation to organisation and
compared to the top level management, as according to the type of organisation.
middle and junior management is more Organizations can be classified according to the
technically qualified than what it used to be. need, nature, structure and functions of business
All these features are easily absorbed and flexible enterprise. The organisations which are structure based
enough for implementing the principles of management are termed as formal and informal organisation. Formal
laid down by Fayol. The changes are easily taken up organisation is structured, rigid, defined and durable
by these principles in the most convenient and whereas an Informal organisation is loose, flexible,
conventional way in order to suit the features of the undefined and spontaneous. Then, there are certain
modern organisation. organisations which are classified according to the
emotional involvement of people, they are termed as to fulfil any particular principal objective such
primary and secondary organisations. Primary as social service, religious attributes,
organisations are totally emotionally based and economic objective or any government
secondary are contractual based. There are certain activity for the public then they are
organisations which are based on principal objectives categorized according to the activities and
such as service organisations like charity, schools, roads objectives they are involved for a particular
etc., economic organisations such as partnerships, co- organisation such as service organisation will
operations etc. , religious organisations such as temples, cover charities, public schools, parks, roads
trusts, churches, etc. , protective organisations such as etc. and economic organisation will look
police, fire department etc., government organisations after the cooperation, partnerships etc.,
such as central and state government departments, religious organisations will look after
courts, etc., and social organisations such as clubs, teams temples, churches, trusts etc., and so on.
etc. In spite of all these factors still we will not be able
Q. 6. Which factors determine that an to justify a particular category for a particular
organisation belongs to a particular type? organisation due to the flexibility in the nature of
Ans. The factors which determine the type of an modern organisation.
organisation are: Q. 7. What kind of changes are taking place in
(i) The basic structure of an organisation: the economic environment impacting change on
The structure of any organisation in respect organisation?
of its functioning and features determine the Ans. Modernisation has led to the increase in the
type such as a structured, rigid, defined and
man-machine relationship in the organisation.
durable organisation will be termed as formal
Operational status of organisations have become more
organisation and a loose, flexible, undefined
technical than manual. Thus management has become
and spontaneous organisation will be termed
as informal organisation. It further supports a hybrid of old and new technology. Mathematical
the fact that all these characteristics which approach has given rise to the quality control in the
will suffice the need of a particular organisation. It has become more informational based
organisation will force them to implement than before. The main features of modern organisation
such features in their organisation. are:
(ii) According to the emotional involvement (i) It has become smaller in size due to less of
of the members of the organisation: When manpower.
any organisation gets the work done (ii) Organisational structure has become circular
according the emotional involvement of a due to reduction in the layers of management.
particular person according to the needs and (iii) It is more of technical based so workers are
requirements of the organisation such as a also technically qualified than before.
company who has got the emotional (iv) More emphasis is given to the customer
involvement of the members for the satisfaction and to the shareholders of the
betterment of the organisation, will be organisation.
termed as primary organisation and the time (v) Time and place of working have become
limit is not fixed but if a work needs to be flexible.
completed in a stipulated time limit then it (vi) Quality is the prime objective than quantity.
is termed as secondary organisation as the
(vii) Due to increase in the service organisation
work demands contractual commitment by
communication has become informal and
the people at work. Therefore, how
lateral.
emotionally an organisation is involved in
accomplishing its goal determine the type (viii) Participation of middle and junior
of an organisation and thus it is categorized management is there in decision–making as
accordingly. compared to the top level management, as
(iii) According to the basic principal middle and junior management is more
objectives: When an organisation is running technically qualified than what it used to be.
Therefore, we can say that due to recent and rapid given lot of innovative and improved version
changes in the trends and basic functions of the of products and advertisements. It has given
economic environment has given rise to the modern a true satisfaction to the society and the
organisation where the structure and functions have organisation. Creativity is always appreciated
changed to a great extent due to increase in competition, in the competition and it gives more demand
small companies collaborating with big and too.
multinational companies, use of advanced technology, (v) Human Resource Management Systems:
innovative products launched in the market, flexible It means to have bias approach in the areas
time, being qualitative than quantitative, growing and of recruitment, training and development,
developing aspect of working environment and performance appraisal, compensation and
technology, etc have made the modern organisation to benefits, promotion etc. It leads to the
run effectively and efficiently. selective employment in the society and only
Q. 8. Identify five changes taking place in the skilled people are preferred for the job and
environment, which have not been mentioned in this rest are given the opportunity but at a very
unit. low profile.
Ans. The five changes which have taken place in These are some of the factors which are added in
the environment and they are not mentioned in this unit the modern era organisation. Irrespective of all these
are: factors the competition is encouraging and have good
(i) Increased stress of work: Due to results except in few cases.
advancement in the technology, the work Q. 9. How a modern organisation is different
and functions of the organisation have from an organisation of early days?
become complex. It has added an additional Ans. Modern organisation is entirely different than
burden as the workload is more and the organisation of the early days which can be
sometimes demands extra time to be explained as follows:
devoted. It does not give job satisfaction to
(i) Size of the organisation: The size of the
the employees and they are not motivated to
organisation has gone small than before as
stay in one organisation for a longer duration.
machines have taken the place of man–
(ii) Cultural diversity: Cultural diversity is one
power. Therefore, the work is accomplished
of the factor which has entered in this
faster than before.
modern era and it becomes difficult to
(ii) Competition in the market: There is lot of
manage such situations as only those
competition in the market due to awareness
organisations with the best reputation in
and introduction of more companies and
managing the cultural requirements of the
products in the market. Latest technology
society gets the encouraging place in the
has given rise to the increase in the
competition of the market.
competition.
(iii) Impartiality in respect of gender, race,
ethnicity and nationality: Promoting (iii) Collaborating with Multinational
impartiality for genders, race ethnicity and companies: It helps in enhancing the
nationality have added a flavour in the infrastructure in the most advanced way as
organisation. It gives them more popularity they help in the expansion of the company
and space in the market as they are in a by giving funds and technology of their
position to cover almost everybody’s choice along with their brand names. But in
demand. This impartial behaviour adds more the olden times Multinational companies
trust in the product and people prefer to buy never used to join hands with the existing
that brand. It has added a new trend in the companies in the market for the fear of being
competition in the modern market. a failure in the market.
(iv) Creativity factor: As there is more diversity (iv) Policy and Norms of functioning: Now the
of perspectives and less emphasis on policies and norms are more flexible than
conformity to norms of the past have added before as they are subject to any changes
creativity factor in an organisation. It has required according to the needs of the
organisation. But in the past times the policies

were rigid and fixed once in a year and had to TERMINAL QUESTIONS
be followed through out the year. Q. 1. Explain basic purpose of existence of various
(v) Employment: Now the employment has organisations in society.
decreased to a great extent as machines have Ans. An organisation is a process of management
taken the place of man-power. Only the where manager create, direct, maintain and operate the
technically qualified employment is basic functions to meet the requirement of the goals
encouraged in the organisations. But in the laid down for the economic growth of the business. It
olden days, educational qualifications was varies from an organisation to organisation and
the main criteria and the skilled labour was according to the type of organisation.
not required more as the technology was not The basic purpose of the existence of an
advanced in those days as compared to the organisation in a society is to provide goods and services
present day. with the prime motive to earn. To produce quality
products and goods with the latest technology and
(vi) Technical requirement: Due to advancement
designs to suit the basic and general needs of the
in the technology more of machines are
customers. Each and every type of organisation has
required than before whereas in the olden days
got its own importance in the society which includes
most of the work done was man based than
various parameters such as structure, services, nature
machine based, such as letter writing was done of the goods and services rendered, according to their
by the good handwrites but now they are either principal objectives to cater the society with the public
typewritten or printed on computer. services and to act as an emotional agent for the work
Therefore, a computer literate person is to be accomplish as the nature of the organisation
appointed than a good hand writer. demands for the same.
(vii) Customer satisfaction focussed: Quality Q. 2. Describe basic features of an organisation.
is more preferred than quantity whereas Ans. The basic features of an organisation are:
initially quality was not focussed due to the As given by Stonner, Freeman and Gilbert:
living standards. Living standard of the (i) Organisation is the combination of number
modern society has risen to a great extent of persons.
than the olden times. People prefer to buy a (ii) Each and every person is related to each
quality product than in a good quantity. other through the working structure of an
(viii) Quality control: Standards have been set organisation. The organisational structure
by the management to maintain the quality enables them to communicate with each
of the product so that it should not cross the other as and when required. The structures
limit and budget of the organisation. may be rigid, as in the case of formal
structure or loose, as in the case of informal
(ix) Participation of middle and junior
structure.
management in the decision-making: As
(iii) Organisation helps to achieve planned goal,
middle and junior management is technically
which may be singular or plural. Goal being
qualified and can take better decisions
the fundamental elements of an organisation.
regarding the product modulation and As given by Robbins:
technology to be implemented so their (i) The activities of an organisation are
participation has become a part of the coordinated and controlled by the managers
decision- making process. which implies that management is an
(x) Business ethics: Modern business ethics important and integral part of an
have changed a lot, than before, it is more organisation..
of competition and quality than to (ii) Organisation works in a flexible but within
concentrate only on the profit motive. definable boundary, therefore, each and
Advertisements are designed to promote the every layer is manned and controlled
product and make it popular. properly.
Brown and Moburg has described the features of among the junior level managers by giving them
an organisation as: necessary instructions.
(i) It is a permanent social entities with many (iii) Lower level management: It consists of
changes which might be taking place within supervisors, foreman, account officers, and other sub-
the organisation therefore, the continuity is ordinate staff members. This level is much more
to be maintained till the existence of an concerned about the direction and control functions of
organisation. the management. The main function of this level is to
(ii) Goals are the integral part of an organisation. give instructions to workers and supervise their work.
(iii) Need of highly qualified and specialised All the levels should be properly managed and
skilled people to achieve the goals. controlled by the organisation to meet the economic
(iv) To bring together various work activities and growth and need of the business. Therefore,
needs of an organisation in order to maintain responsibilities should be managed properly at all levels
the basic structure of the business activity in of management in an organisation to get the desired
process. results.
Hicks has given the features as: Q. 4. What are various principles of
(i) Organization includes people. management? How are modern organisations
(ii) People in an organisation are involved with different from typical classical organisations, in
each other. terms of practices of various principles of
(iii) Interaction is always ordered or described management?
according to the structure of an organisation. Ans. The basic principles of management as laid
(iv) To meet the personal objectives through down by Henri Fayol are:
organisational activities. (i) Division of Work
(v) The personal interaction helps a lot in (ii) Authority and Responsibility
achieving the personal and organisational (iii) Discipline
goals and objectives. (iv) Unity of Command
Schein has given the features as: (v) Unity of Direction
(i) Coordination of efforts (vi) Subordination of Individual Interests to
(ii) Common goal General Interests
(iii) Division of labour (vii) Remuneration
(iv) Hierarchy of authority. (viii) Centralization
Q. 3. What are various responsibilities of various (ix) Scalar Chain
levels of management in an organisation? (x) Order
Ans. An organisation consists of three levels of (xi) Equity
management they are: (xii) Stability of Staff
(i) Top level management: It consists of Board (xiii) Initiative
of Directors, chief executive or the managing director (xiv) Espirit de Corpe.
and the general manager. It is the ultimate source of Besides these 14 principles of management given
authority. It helps in setting the goals and formulating by Fayol, there are some other principles of
the policies of the organisation. It further enables to management they are:
approve the decisions of middle level management. (i) Harmony of Objectives
(ii) Middle level management: It consists of heads (ii) Universality of Management
of functional departments, regional managers, plant (iii) Primacy of Objectives and Planning
managers etc. It includes departmental and sectional (iv) Control by Exception
heads e.g. finance manager, branch manager etc. and (v) Decision by Exception
this level of management is also responsible for the (vi) Equality of Authority, Power, Responsibility
implementation of top management policies. The main and Accountability
function of this level is to execute the plans of the (vii) Coordination.
organisation according to the policies and goals set by These principles act as a guideline for the
the tops level management. Further to assign the duties management to enable an organisation to run effectively
and efficiently. It helps in creating healthy and flexible that is open to him.
flow of activities within an organisation. (ii) Organising: It is the process by which the
In olden days these principles were not giving any structure and allocation of jobs are determined. It
practical and encouraging results due to lack of technical includes all managerial activities that are undertaken to
know-how and unity of command. But now as there is translate the required activities into a structure of tasks
a tremendous change in the organisational structure of and authority. It includes four sub-functions and they
the management lot of technical advancement has taken are as follows:
place and have given rise to the quality and innovative (a) It defines the nature and content of each job
products. in the organisation.
Two main characteristics of principles of (b) It determines the bases for grouping the jobs
management are there which enable the modern together.
organisations to work effectively and efficiently they (c) It decides the size of the group.
are: (d) It helps in delegating authority to the
(i) Flexibility: As the principles of management are assigned manager.
flexible enough to expand or contract the rules and (iii) Staffing: It is the procedure or function by
functions as possible according to the needs and wants which managers can select, train, promote and retire
of an organisation. They should be modified and applied their subordinates. Staffing deals with the complete
according to specific situation faced by the manager. human resource planning activities that is performed
They are the flexible guidelines rather than the hard and by the managers.
fast rules. These principles need to be handled and (iv) Directing: This process helps in guiding the
applied carefully and not blindly and according to the actual performance of subordinates towards common
organisational structure. These should be utilized with goal. It is one aspect of this function that is directed
respect to the change of circumstances and under special towards lower levels of management.
conditions to get the desired results. (v) Communicating:This process helps in
(ii) Universality: Principles of management are transmitting ideas to others for the purpose of achieving
applicable in all types of organisations and at all levels a desired result.
of management. They are universal in nature. They may (vi) Decision-making: This process refers to
be used with equal utility by managers of different consciously choosing a course of action from available
organisations and at different levels of authority. alternatives to achieve a desired result.
Managers are able to predict the results of their actions (vii) Controlling: This process measures the
easily. current performance and guides it towards some
Q. 5. Explain various functions and roles of predetermined goal. It includes activities that managers
managers. How are they useful in enhancing the undertake to assure that actual outcomes are consistent
efficiency of the organisation? with planned outcomes. There must be three basic
Ans. Managers play a very important role in the conditions that must exist to undertake control and they
smooth and efficient working of an organisation. are as follows:
Manager assigns the task according to the authority (a) Standards
and the job description of the position of the manager. (b) Information
He is expected to do the work according to the (c) Corrective or counteractive action.
capabilities and expectations of the skills and resources Besides these principles they perform various roles
available with the organisation in the form of man and also in an organisation namely, interpersonal roles which
machine. includes leading, liasioning, and symbol or figure head,
The main functions of managers are: informational roles covers monitoring, sharing
(i) Planning: It includes those activities that lead information and to act as a spokesperson and decisional
to the definition of ends and the determination of roles such as taking initiative, handling disagreement,
appropriate means to achieve the defined ends. It is the allocating resources and negotiating. All these functions
course of development by which a manager anticipates and roles are performed by the managers in order to
the future and discovers alternative course of action maintain a balance between all the levels of management.
These functions are performed by the senior managers it is difficult to find an exclusive formal or informal
and high rank officers in order to maintain a balance organisation, somewhere or the other the organisations
between the work and people. Besides assigning and are a mixture of the two.
getting the work done through the subordinates, it (ii) Primary and secondary organisation: Primary
becomes the duty take care of them, by giving them organisation involves completely emotional
enough space to express themselves and work involvement of the management. Secondary
satisfactorily in the organisation. Thus, managers play organisation is usually contractual based and involves
a very important role in the smooth functioning of an lot of commitment of terms and conditions to accomplish
organisation by devoting his time to the staff and giving the work of an organisation.
them enough space to express and solve the issues, be (iii) Principal objective based organisation: These
it official or personal. include service organisations like schools, charities,
Q. 6. Describe various types of organisations. Why parks, zoo etc., economic organisations such as
do organisations differ from one another? proprietorships, partnerships, etc., religious
Ans. Organisation is a place where a business is organisations such as temples, trusts, churches, etc.,
planned, managed and controlled in order to achieve protective organisations such as police, military, fire
the goals for the economic growth. It can be of many department, etc. Government organisations such as
types depending upon the size, nature, structure, central and state government departments, courts, cities,
function, emotional, contractual and principal objective etc., and social organisations such as fraternities, clubs,
based. teams etc.
Widely speaking there are three categories of All the organisations are different from each other
organisations: due to their structure, functions, features, goods and
(i) Formal and informal organisation: These services produced by them in an organisation. All these
organisations are structure based defined. Formal factors determine the difference between the various
organisation is structured, rigid, defined and durable organisations that is why they are categorized
whereas Informal organisation is loose, flexible, accordingly.
undefined and spontaneous. But practically speaking,
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11
Organisation Theory
2
(iv) Organisation stimulates creativity.
INTRODUCTION (v) Organisation encourages humanistic
Organisation is a social entity grouped together to approach.
achieve the common goals and objectives. It helps in These are some important interrelated steps in the
the proper administration, growth and diversification, organisation process. These steps are determination of
optimum uses of resources, creativity and humanistic objectives, identification and grouping of activities,
approach towards the superiors and subordinates. allotment of duties, developing relationships and
Organisations adopt classical theories to attain effective integration of these groups of activities. The principles
functioning with their main streams as bureaucracy, of organisation works on the guidelines of planning an
administration theory and scientific theory. Scientific efficient organisation structure. There are some
theory of management enables to determine the important principles of organisation and they are unity
appropriate method to perform the various functions. of objectives, division of work and specialization,
It has three theories namely, neo-classical theory, definition of jobs, separation of line and staff functions,
modern theory of organisation and contingency theory, chains of command or scalar principle, parity of
which are applied according to the need and situation authority and responsibility or principle of
arising in the organisation from time-to-time. correspondence, unity of command, unity of direction,
exception principle, span of supervision, principle of
SUMMARY balance, communication, flexibility and continuity.
Organisation can be defined as coordinated social Old theories of organisations are classified as
entity that is grouped and interacted together for classical theories of organisation and were developed
achieving organisational goals. It comprises of group in three major streams and they are bureaucracy, theory
of people working together for the achievement of administration theory and scientific theory.
organisational goals. There are many suggested theories Bureaucracy theory is targeted at maximizing
that have been proposed to explain organisation in terms efficiency of the organisation through developing a
of closed, open and dynamic system. system of specialisation and set of systematic rules and
There are various important characteristics of procedures. Its basic characteristics include division of
organisation and they are group of people, division of labour and specialization, hierarchy, rules, rationality,
work, common purpose, horizontal and vertical impersonality, rule orientation, neutrality. It has some
relationships, chain of command and dynamics of demerits like rigidity, impersonality, delegation, goal
organisation. Effective organisation plays significant displacement, strict categorization, self perpetuation and
role in the success and continuity of the enterprise. There empire building.
are many factors that explain the importance of Administration theory broadly divides the
organisation and they are: activities of an industrial organisation into six major
(i) Organisation facilitates administration. groups and they are technical, commercial, financial,
(ii) Organisation facilitates growth and security, accounting and managerial. It stresses on the
diversification. theory that managing is a process. It further stresses
(iii) Organisation permits optimum uses of that it can be dissected intellectually by analyzing
resources. properly the functions of the manager. It proposes
fourteen principles that work effectively for smooth (iii) Common goal: The existence of any
functioning of the organisation. It was discouraged and organisation depends upon the basis and nature of its
criticized as it underestimated human factors and was goals. It is different from personal goals. The common
based on closed system. purpose of the organisation provides the basis of
Scientific management is scientifically oriented corporation among organisational members.
method that helps in determining the best possible (iv) Vertical and Horizontal relationships:
method for performing any task. It also works well for Organisation creates cooperative bonding between
selecting, training and motivating workers. It stresses departments and divisions. It also creates bondings
on scientific selection of personnel, incentives and between superiors and subordinates. The unification
functional foremanship. It emphasizes on increasing of duties and responsibilities of superiors and sub-
productivity but underestimates human factors. ordinates in each division or department works together
Neo-Classical theory is an extended classical in achieving desired organisational goals. The different
theory that emphasizes the social factors and emotions functions and activities gets integrated together to
at work place. It has been considered better than classical achieve a state of proper coordination in the
theory as it laid stress on human relations and informal organisation.
organisations. It was heavily criticized as it paid (v) Chain of command: In organisations, there is
importance to the people working in the organisation. chain of command as the authority flows from higher
Modern theory of organisation takes consideration levels of management to its lower levels of subordinates.
of all the dynamic conditions at the micro and macro It also determines the line of communication.
levels. It stresses on the integration if individuals and (vi) Dynamics of organisation: In organisation
organistional units through system approach. It gets there is existing organizing interactions that are based
on sentiments, attitudes and behaviour of individual and
reflected in terms of inputs, process, outputs and
groups. It provides a dynamic element to the functions
feedback.
of organisation. These elements are subjected to change
Contingency theory stresses on two basic aspects
from time to time.
and they are focussing attention on specific situational
Q. 2. How do principles of organisation facilitate
factors that influence the authenticity of one managerial
smooth functioning of the organisation?
strategy over another and highlighting the importance
Ans. The principles of organisation that facilitate
of developing skills for managers in situational analysis.
smooth functioning of organisation are as follows:
It was popular for many reasons and they were
(i) Unity of objectives: There should be unity of
conceptual framework, linkage between theory and objective for each member of the organisation so that
practice, a basis for introducing changes, wide all collective efforts can be concentrated on the set goals.
applicability and new micro phase. The objectives of organisation should be well
understood and formulated so that every member is
CHECK YOUR PROGRESS familiar with it.
Q. 1. Enumerate the basic characteristics of an (ii) Division of work and specialisation: The
organisation. division of total work is done as to confine every
Ans. Organisation is a coordinated social entity that individual to the performance of a single job. It
is grouped and interacted together for achieving goals facilitates specialisation in the organisation and
of the organisation. The characteristics of the enhances efficiency and quality. Every area of
organisation are as follows: specialisation should be interconnected to the total
(i) Group of people: The concept of organisation integrated system by means of coordinating together of
covers into existence when group of people combine all activities done in all departments.
their efforts to achieve common organisational goals. (iii) Definition of job: There should be appropriate
(ii) Division of work: The division of work is defining of every position in relation to other positions
important characteristic as it divides the total work into in the organisation. The overlapping of functions should
various activities and functions. It helps in assigning be avoided. It can be done by assigning duties and
different tasks to different persons as per their skills, responsibilities to every position and its relationships
abilities and experience. with other positions in the organisation.
ORGANISATION THEORY / 13
(iv) Separation of line and staff functions: Line be given undue importance at the cost of other functions.
functions are those functions that help in accomplishing This balance should also be maintained between
the main objectives of the company. These line centralization and decentralization, span of supervision
functions should be separated from staff activities. The and lines of communication and authority allocated to
functions other than line functions are staff functions. department and personnel at various levels.
(v) Chain of command and scalar principle: (xii) Communication: The objectives of
According to this scalar principle, the line of authority organisation desires good communication network. The
from top level to bottom level of organisation should two-way communication between superiors and
be clearly defined. This authority refers to the right to subordinates helps in uniting organisation into working
decide, direct and coordinate. The structure of the as effectively operating system.
organisation should facilitate delegation of authority. (xiii) Flexibility: The flexibility in organisational
The clarity is completely achieved through delegation structure helps in adapting to changes in the nature of
by steps or levels from the top position to the operating the business as well as changes corresponding to
level of the organisation. It is also referred to as chain technological innovations.
of command. (xiv) Continuity:The continuity in efficient
(vi) Parity of authority and responsibility or performance of organisation can be achieved by adapting
principle of correspondence: The responsibility to new changes that takes place inside or outside the
delivered to every employee should be accompanied organisation. It will help organisation to survive and
with its corresponding authority. Every subordinate excel for longer duration of time.
should have sufficient authority to perform Q. 3. Enumerate five principles of organisation
responsibilities entrusted to him. It will make him self-
which you find plasticising in an organisation.
reliant and can help him in taking quiet decisions
Ans. The five principles of organisation which I find
without concerning higher departments or authorities.
plasticizing in an organisation are:
(vii) Unity of command: Every subordinate should
(i) Unity of objectives: It is so because; unity of
report to his assigned superiors or boss. It will avoid
objectives gives plasticity to the working of the
state of confusion, chaos, conflicts and lack of action
organisation. Each and every member is familiar with
in the organisation.
the goals and objectives of the organisation. It helps in
(viii) Unity of direction: The unity of direction
formulating the objectives and goals of the organisation
states that group of activities with a common goal
and also in understanding the same.
should be managed by one person. It encourages one
(ii) Division of work and specialisation: The
head and one plan of action for a common objective of
output of the implication of this principle is very effective
different activities.
(ix) Exception principle: The exception principle as it gives specialised work. Every individual is assigned
states that high level of managers should attend to the work according to its area of specialisation. Every
exceptional matters only. The higher level of managers aspect of the specialisation is interrelated with the entire
should deal with problems that concerns with unusual system and thus calls for the effective coordination of
matter and policy decisions. The routine decisions all activities of all departments.
should be referred to lower level of managers. (iii) Principle of balance: It helps in maintaining
(x) Span of supervision: It refers to the number proper balance between various parts of the organisation.
of persons that a manager or supervisor can direct or All the functions of an organisation are of due importance
control. Every manager is confined with restricted according to the need and time of the same. Any undue
numbers of subordinates so that he can direct them importance to any one function is not given at any point
efficiently within the limits of available time and ability. of time which adds flavour to the working environment
The number of persons is dependent on the nature of of the organisation.
job and the desired frequency of intensity of supervision (iv) Communication: The effective communication
required in the organisation. system is established by applying this principle of
(xi) Principle of balance: The principle of balance organisation. Proper line of authority is provided through
states that there should be proper balance between various channels of communication, from downward to
various parts of the organisation. No function should upward and from upward to downward. The system
becomes systematic and easy to understand and thus Q. 5. Enumerate the limitations of Fayol’s
gives effective operational system to the organisation. principles of management.
(v) Continuity: The principle of continuity helps Ans. Fayol provided a conceptual framework for
in the efficient performance of organisation because analysing the process of management. He isolated and
changes can easily be adapted from inside or outside of analysed management as separate and distinct identity.
the organisation. Therefore, it will help organisation to But some have criticized his theory and principles and
survive and excel for longer duration of time. termed them as vague, inconsistent, and pro-
Q. 4. How does bureaucracy enhance the management based.
Many believed that these principles are concerned
efficiency of an organisation?
with the efficiency of workers in the technical sense,
Ans. The concept of bureaucracy plays an
and it emphasizes more on the importance of production.
important role in enhancing the efficiency of the It also makes them believe that workers are initially
organisation. Generally speaking, it is a system where lethargic and need strict supervision and control by
government is run by officials, directly or indirectly. managers.
Bureaucracy is a system of organisation in which tasks, It is understood that workers can be motivated by
relationships and roles among people and positions are giving monetary rewards. These principles have not
clearly defined. They are carefully prescribed and given any importance which is attached to social and
controlled in respect to formal authority. All such factors psychological aspects of work environment. Therefore,
that deviate from rules and regulations are seriously it is termed as unscientific, antisocial, and psychologically
viewed. Max Weber systematically developed unfair aspect of work environment.
bureaucratic theory. According to him, every It is unscientific because there is no suitable and
organisation is a structure of activities that are directed consistent method to measure the efficiency and earnings
towards achievements of certain goals or objectives. of the workers. It is anti-social because workers are
To maximize efficiency and productivity, every treated as overestimated economic tools only. It is
psychologically unfair because each worker is eroded
organisation develops a system of specialisation and a
against every other worker in a damaging competitive
set of systematic rules and procedures.
scheme to earn more from their potential. It is anti-
According to Weber, bureaucracy helps in attaining democratic because it overshadows the workers
highest degree of efficiency in the organisation. It is freedom.
considered to be as most effective method of carrying These are opposed by the trade as it leads to
out control over human being in the organisation. dictatorial management, and increase the workload of
Bureaucracy is considered to be better from other system employees with a corresponding adverse impact on
in terms of precision, stability and discipline. employment of men.
The modernisation in organisations has further Q. 6. How does scientific management enhance
stressed the importance and development of the efficiency of an organisation?
bureaucracy. It works effectively in complex Ans. Scientific management is targeted towards
organisations. It enhances the role of expanding maximizing the efficiency of the organisation in many
technical knowledge and development of modern ways. It works on the aspects that efficiency at work
technology. The considerable degree of bureaucratic can be improvised through careful scientific analysis.
There are various aspects of scientific management that
specialisation is required to have highest level of
enhances the efficiency of the organisation and they are:
efficiency in the organisation. It works well in capitalistic
(i) The significance and relevance of applying
as well as in socialistic type of economic system. The
various scientific methods of enquiry,
capitalist system has been responsible in playing vital observation and experimentation to the
role in the development of modern bureaucracy. The organisational problems.
ideal functioning of capitalist system can only be (ii) It enables workers to perform their best and
achieved by a stable state and well organised helps them to earn handsomely. It separates
administration. The concept of capitalism has proved out planning of work from its execution.
to be most economic basis for bureaucratic (iii) It emphasises in achieving aims of the
administration in the organisation. management that helps in creating maximum
prosperity of employees and helping them Managers need to interact with their employees in
out with proper welfare. the best and healthy way in order to get the effective
(iv) It helps in delivering out desired mental and efficient output from them. The essence of the
revolution for both employees and human relations helps the organisation to accomplish
management. It helps in getting maximum the desired goals easily. Organisational position should
benefit of scientific management by be observed in social terms as well as in economic and
delivering harmony and cooperation in the technical terms. Organisation should also be evaluated
organisation. It discourages individualism in terms of clinical method adopted to diagnose and
and discord and works positively for the eradicate the problems faced in the smooth functioning
organisation. of the organisation.
(v) Its major benefit is conservation and using The theory identifies the significance of co-
every aspect of energy available in the ordination and communication for motivation of human
organisation. resources. According to this theory, managers are
(vi) It delivers rational approach to solve expected to give more attention on the fatigue, than
organisational problems. division of labour. They are of the view that if human
(vii) It facilitates professionalism of management. beings are not taken care of well, can lead to serious
(viii) It helps in increasing productivity and problems in the human relations within the organisation
efficiency of each operation in the amongst the superiors and the subordinates.
organisation. This theory also viewed that the participation,
Q. 7. Distinguish between classical and neo- recognition of human dignity and communication are
classical theory of management. the foundation stone of efficient management.
Ans. Classical theory of management: The old Therefore, we can say that the neo-classical theory
theories of organisations are termed as classical theories is a distinct advancement over the classical theory. It
of organisation. The classical theories were originated clarifies various new variables and concepts like
and can be referred to the writings of F.W. Taylor, informal organisation.
Max Weber, James Moorey, E.F.L. Beach and Lois Nevertheless the neo-classical point of view was
Allen. The impact of classical theory has been thoughtful criticised on the view that it had too much of skeptical
and result oriented. puppeteer of people, a short sighted perspective and
Classical theory was developed on the basis of lack of integration among many facets of human
Bureaucracy, Administrative Theory and Scientific behaviour.
Management. These components develop the idea of Q. 8. How does systems theory operate in an
association within the connotation of organisation. organisation?
Accordingly, organisation was described as a structure Ans. System can be defined as a place of mutually
of relationships, power, objectives, roles, activities, dependent parts that forms an organised unit of entity.
communications and other factors that exist when It enables us to interact with each other and is the issues
persons work together. Thus, these streams of classical to changes and so they are also known as sub-systems.
theory view organisation as a mechanized and systematic They are interdependent and interrelated and so changes
structure. in any sub-system leads to the change in others. There
Neo-classical theory of management: The neo- are three types of sub-systems that are in an working
classical theory was formulated on the basis of classical organisation. They are as follows:
theory. It is modified and extended version of classical (i) Technical sub-system representing the formal
theory. The basic assumption of the theory is that the relationships among the members of an
psychological and social aspects of the employee as an organisation;
individual and his work group ought to be emphasised. (ii) Social sub-systems that provides social
In classical view, organisation use to pay attention on satisfaction to members through informal
structure, order, the formal organisation, economic group relations, and
factors and objective rationality. But neo-classical view (iii) Power sub-system that reflects the exercise
used to emphasize more on the social factors and of power or influence by individual and
emotions at work. groups.
The system approach includes the following Q. 9. What do you mean by contingency theory
features: of organisation?
(i) System is a group of interrelated but separate Ans. Contingency theory of organisation is based
elements. on the view that there is no ideal way to manage an
(ii) The arrangement of all the elements must be organisation. It emphasizes that the best way to lead,
orderly. plan, organize and conduct managerial activities varies
(iii) There must be proper communication from situation to situation. According to this theory, one
facilitating interaction among the elements. method that is fruitful in one situation might not fetch
(iv) Finally, the interaction should lead to achieve same results in another situation. Contingency theory
a common goal. stresses on the fact that there are no universal principles
The operations taking place at the enterprise are that can be applied in all the situations. It encourages
visualized in terms of basic elements engaged in managers to analyze different situations and then apply
procuring and transforming inputs into outputs. The the best approach that is suitable for it.
parts of the systems also include money, employees and This theory of organisation emphasizes on two
the managers. Materials, information and energy, factors and they are focussing attention on specific
flowing into the organisation are considered to be inputs. situational factors that can influence the authenticity of
Products, services, and satisfaction provided by the one managerial strategy over another and highlighting
organisation are evaluated as the outputs. Finally, the the importance of developing skills for managers in
organisation transforms inputs into a variety of outputs situational analysis. According to this theory,
that are in the form of products, goods and services and management action is contingent or conditional on
offers the same to the external environment. It provides certain action outside the system as organisation gets
the necessary energy that is provided through the sale integrated within the environment. Due to specific
of the outputs. It is called feedback and works to repeat organisation environment relationship, no action can be
this entire system cycle. termed as universal as it varies from action to action.
The organisation systems are considered to be Contingency theory of organisation concentrates on
cybernetic in their behaviour with regard to the external practical and routine situational problems that managers
environment. It signifies the fact that they are self- encounter in their respective organisations. The theory
steering and using feedback to guide and control their has been gaining popularity as it solves many distinct
behaviour. problems.
Organisation system is like a social system which The theory provides a conceptual framework within
is considered to be cybernetic in their behaviour with which managers can systematically and methodically
study the characteristics of major organisational
regard to the external environment. It states the fact that
components. It also helps in studying interrelationships
they are self-steering, using feedback to guide and
within the organisation. This theory provides a practical
control their behaviour. They develop method to collect,
way of analyzing and studying organisations. It also
interpret and apply feedback in their decision-making
provides multiple alternatives that might be applicable
process so that it enables to obtain the capacity to adapt,
to a particular situation.
evaluate, perform and to correct errors.
The theory proves instrumental in explaining the
The systems approach to management analysis
dynamic process of organisational change. It helps in
organisations as exceptionally multi-faceted entities
providing significant information about relevant changes
subject to changes. In order to meet a variety of needs that might occur in environment from time to time and
of such an organisation, a balanced and integrated helps in maintaining dynamic equilibrium of the
approach to management is required. organisation. Contingency theory helps in defining and
It emphasizes more on the importance of decision- re-defining the relationships in the organisations. It is
making and the chief way of balancing the different parts also referred to as new micro phase in management. Its
of the organisation. Management is reviewed as a sub- main advantage is that it compels us to be aware of the
system of the social system. As a sub-system intricacy and involvedness of every situation and forces
management is required to adjust and manage with us to take an appropriate active and dynamic role that
environmental changes. can work best in it. It has been criticized for its heavy
theoretical complexities, lack of contents, difficulty in appropriately trained and get promotion opportunities.
experimental testing and for its reactive nature. A sound organisation provides all the desired potential
Q. 10. Enumerate five contemporary issues in and strength to the company to meet the future
organisation theory. challenges.
Ans. Organisational theory has various contem- (iv) Stimulate creativity: The specialisation in the
porary issues they are: organisation helps individuals in getting well-defined
(i) Impact of technology on human side of an duties clear lines of authority and responsibility. It
organisation: The advancement in the encourages the creativity of the people. The sound
technology has considerably reduced the organisational structure enables managers to concentrate
number of employees in the organisation. on important issues where their talent can be exploited
There is a shift of demand of employees from to the maximum.
desk workers to skilled. (v) Encourages humanistic approach: A sound
(ii) Impact of globalisation on organisational organisation helps in adopting efficient methods of
designs. selection, training, remuneration and promotion for
(iii) Impact of different strategies on organisation. employees. It makes people work in a team and not like
(iv) Cross culture impact on organisation. machines or robots. Organisation helps in providing
(v) Impact of mobility of people and technology
factors like job rotation, job enlargement and enrichment
on organisation.
to its employees. A sound organisation provides higher
job satisfaction to its employees through proper
TERMINAL QUESTIONS
delegation and decentralization, favourable working
Q. 1. Describe the basic objectives and steps environment and democratic and participative
involved in the progress of an organisation. leadership. It enhances the mode of communication and
Ans. The effectiveness and efficiency of organi- interaction among different levels of the management.
sation helps in providing the continuity and success to The steps involved in the progress of an
the enterprise. There are many factors that explain the organisation are:
importance and objectives of organisation and they (i) Determination of objectives: Organisation is
are: usually associated to definite objectives. Therefore, it
(i) Facilitates administration: An efficient and is necessary for the management to identify the
sound organisation make easy for the management to objectives before opening any activity. It will assist the
relate the flow of resource continually to the overall management in the selection of men and materials with
objectives. A sound organisation helps in providing the help of which it can attain its objectives. Objectives
appropriate platform where management can perform also provide as the strategy for the management and
the functions of planning, direction, coordination, the workers. They will give unity of direction in the
motivation and control. organisation.
(ii) Facilitates growth and diversification: A
(ii) Identification and grouping of activities:
sound organisation helps in the growth and
When the members of the groups are to group their
diversification of activities. The growth is facilitated
efforts effectively there must be appropriate division of
by clear division of work, proper delegation of authority
the main activities. Each job should be properly
etc. In short, it helps in the organisational elaboration.
classified and grouped. This will facilitate the group to
In case of reasonable expansion of organisation, the
functional types get replaced by a more flexible know what is expected from them as members of the
decentralized organisation. group and will help to avoid any duplication of efforts.
(iii) Permits optimum use of resources: The For example, the total activities of an individual in an
optimum use of technical and human resources gets industrial organisation may be separated into major
facilitated in sound and efficient organisation. The functions like production, purchasing, marketing,
organisation can have the facilities of latest financing and each such function is further sub-divided
technological developments and improvements. It also into various jobs. The job assigned may be classified
facilitates optimum use of human resources through and grouped to ensure the useful achievement of the
specialisation. The people in the organisation get additional steps.
(iii) Allotment of Duties: After categorizing and responsibilities to every position and its relationships
grouping the activities into various jobs, they should with other positions in the organisation.
be permitted to the persons so that they could carry out (iv) Separation of line and staff functions: Line
them effectively. Each individual should be given a functions are those functions that help in accomplishing
particular job to do according to his ability and made the main objectives of the company. These line functions
responsible for that. He should also be given the should be separated from staff activities. The functions
sufficient authority to do the job assigned to him. other than line functions are staff functions.
(iv) Developing relationships: While there are (v) Chain of command and scalar principle:
various individuals working in the same organisation it According to this scalar principle, the line of authority
is the duty of management to lay down structure of from top level to bottom level of organisation should
relationships in the organisation. Everybody should be clearly defined. This authority refers to the right to
clearly know to whom he is accountable. This will decide direct and coordinate. The structure of the
facilitate in the smooth functioning of the enterprise by organisation should facilitate delegation of authority.
facilitating delegation of responsibility and authority The clarity is completely achieved through delegation
(v) Integration of these groups of activities: by steps or levels from the top position to the operating
Integration can be accomplished in the entire activities level of the organisation. It is also referred to as chain
in following ways: of command.
(a) Through authority relationships– (vi) Parity of authority and responsibility or
horizontally, vertically, and laterally. principle of correspondence:The responsibility
(b) Through organised information or delivered to every employee should be accompanied
communication systems, i.e., with the help with its corresponding authority. Every subordinate
of effective coordination and commun- should have sufficient authority to perform
ication. It will enable to achieve unity of responsibilities entrusted to him. It will make him self-
objectives, team work and team spirit by the reliant and can help him in taking quiet decisions without
integration of different activities. concerning higher departments or authorities.
Q. 2. Explain the basic principles of (vii) Unity of command: Every subordinate should
organisation. report to his assigned superiors or boss. It will avoid
Ans. The principles of organisation that can state of confusion, chaos, conflicts and lack of action in
facilitate smooth functioning of organisation are as the organisation.
follows: (viii) Unity of direction: The unity of direction
(i) Unity of objectives: There should be unity of states that group of activities with a common goal should
objective for each member of the organisation so that be managed by one person. It encourages one head and
all collective efforts can be concentrated on the set goals. one plan of action for a common objective of different
The objectives of organisation should be well activities.
understood and formulated so that every member is (ix) Exception principle: The exception principle
familiar with it. states that high level of managers should attend to
(ii) Division of work and specialization: The exceptional matters only. The higher level of managers
division of total work is done as to confine every should deal with problems that concerns with unusual
individual to the performance of a single job. It matter and policy decisions. The routine decisions
facilitates specialisation in the organisation and should be referred to lower level of managers.
enhances efficiency and quality. Every area of (x) Span of supervision: It refers to the number
specialisation should be interconnected to the total of persons that a manager or supervisor can direct or
integrated system by means of coordinating together of control. Every manager is confined with restricted
all activities done in all departments. numbers of subordinates so that he can direct them
(iii) Definition of job: There should be appropriate efficiently within the limits of available time and ability.
defining of every position in relation to other positions The number of persons is dependent on the nature of
in the organisation. The overlapping of functions should job and the desired frequency of intensity of supervision
be avoided. It can be done by assigning duties and required in the organisation.
(xi) Principle of balance: The principle of balance formally the most rational means of carrying out power
states that there should be proper balance between over human beings in any organisation. It is better than
various parts of the organisation. No function should any other form in respect of accuracy, stability, discipline
be given undue importance at the cost of other functions. and reliability.
This balance should also be maintained between Weber has tried to identify various reasons and
centralization and decentralization, span of supervision circumstances that have given assistance in the growth
and lines of communication and authority allocated to of bureaucracy. Advancement in the modern
department and personnel at various levels. organisation and corporation has led to the development
(xii) Communication: The objectives of and considerable spread of bureaucracy in organisations.
organisation desires good communication network. The Bureaucracy is an essential feature irrespective of
its inherent evils for the running of complex
two-way communication between superiors and
organisations. Secondly, it is an important factor which
subordinates helps in uniting organisation into working
is responsible for the dominance of bureaucracy as it
as effectively operating system.
plays a significant role in expanding technical
(xiii) Flexibility: The flexibility in organisational
knowledge and the development of modern technology.
structure helps in adapting to changes in the nature of Bureaucratic specialisation is essential to achieve a high
the business as well as changes corresponding to level of organisational efficiency. Thirdly, Weber has
technological innovations. constantly emphasized the fact that the capitalist system
(xiv) Continuity:The continuity in efficient has probably played a major role in the development of
performance of organisation can be achieved by modern bureaucracy. The proper implementation of a
adapting to new changes that takes place inside or capitalist system necessitates a stable state and a well
outside the organisation. It will help organisation to organised administration.
survive and excel for longer duration of time. The characteristics of bureaucracy are:
Q. 3. What do you mean by bureaucracy? (i) Division of work and specialization:
Discuss its characteristics. Do you think that Specialization which is on the basis of division of labour
bureaucracy enhances efficiency in the organisation? is a milestone of bureaucracy. It is based on the
Give your arguments. specialised skills groups or individuals in order to
Ans. Bureaucracy is a social device which is ideal perform effective division of labour, to provide adequate
during the industrial revolution in order to organise and remuneration to the deserving candidates and have
direct the activities of a firm. It explains a system definite situations to act upon by the specialised group
wherever the Government is run by officials, directly to handle the same.
or indirectly. (ii) Hierarchy: It means to have a clear cut
Bureaucracy is defined as a system of organisation distribution between the superiors and the subordinates.
where roles, tasks and relationships among people and The remuneration should also vary from level to level
positions are visibly clear, cautiously approved and and in accordance with the responsibilities laid down.
Increments and rewards should be made on the basis of
controlled in accordance with formal authority and with
seniority and merit of the employees.
no deviations from rules and regulations laid down by
(iii) Rules: Rules are made to implement the proper
the superiors.
functioning of the organisation. Personal favouritism
The bureaucratic theory was developed by Max
should not take place while evaluating the work
Weber. He has termed his formulation of organisation accomplished by the team or employees. Deserving
as an ideal type. According to him, each organisation candidate should be rewarded suitably.
can be defined as a structure of activities which are (iv) Rationality: It is the easier way of evaluating
directed towards the achievement of certain objectives the results of the organisation because division of labour
and goals. Every organisation builds up a system of gives specialised output and thus results in the high
specialisation and a set of systematic rules and degree of efficiency and control in the organisational
procedures to make the most of efficiency and work.
productivity. (v) Impersonality: There is no place for irrational
Weber emphasized that the bureaucratic form is or personal emotions at the workplace. Bureaucracy
able to attain the highest degree of efficiency, and is means to conduct the work in the practical and result
oriented manner. It should have high degree of Fayol highlighted that management is concerned
operational impersonality. with the application of certain skills which could be
(vi) Rule Orientation: Employees are expected acquired by persons on the basis of systematic
to follow the rules and regulations while accomplishing instructions and training. The skills can be applied to
the work assigned to them. in various types of institutions such as church, schools,
(vii) Neutrality: Bureaucracy means a manager political as well as industrial organisations.
needs to be neutral and political in organising and Besides a methodical analysis of the management
administrating control over its subordinates. process and management functions, Fayol has
Yes, Bureaucracy does improve the efficiency of formulated fourteen principles as a strategy to implement
an organisation as the entire functioning is based on the the process of management. These principles were laid
specialisation of skills and systematic division of labour down with flexible terms and expected to be of use to
which gives effective and efficient output. There is the managers to handle various situations from time to
proper hierarchy system maintained which helps in time. The skill and abilities required for effective and
maintaining strict discipline among the superiors and perfect management were implemented and were
the subordinates. Rules and regulations are expected expected to be dependent on the managers position at
to be maintained in order to avoid any discrepancy in diverse levels of organisation.
According to Fayol, administrative skills were more
the work culture of the organisation. Rationality in
important for higher level managers, while technical
bureaucracy adds flavour to the efficiency of the
abilities were needed more at the lower level positions.
organisation as it become easy to evaluate results. The
He also stated that managerial training is essential for
rewards and remuneration given to the employees are
people in life also. He emphasized more on formal
not on the basis of favouritism but on the output given
education and training in management. Therefore, we
by an employee. It gives a lot of moral support to the can say that Fayol has provided a set of means for
deserving candidate and he is motivated to do the screening the management process and guidance.
effective and efficient work for the organisation. The Administrative Theory of Management and
Q. 4. What is administrative theory of Functional Approach to Management is laid down and
organisation? Is it relevant today? Explain with developed by Fayol. He has given a conceptual structure
examples. for analyzing the process of management. He has also
Ans. Scientific management was concerned with isolated and analyzed the management as a separate and
the growth in the productive efficiency of individual distinct activity.
workers. Organisations were not giving due importance Q. 5. Discuss the central theme of scientific
to the role of managers and their functions. management. Do you think that the scientific
Fayol has laid down six inter-dependent management enhances productivity in the
operations for the smooth functioning of business organisation? Give your arguments.
activities of any organisation they are technical, Ans. Scientific management was originated by F.W.
commercial, financial, security, accounting and Taylor which helped the organisations to determine the
administrative or managerial operations. He has best method for performing any task and for selecting,
analyzed the nature of managerial activities and skill training and motivating workers. It helped in
requirements which were given very less interest. He investigating the effective use of human beings in
measured the process of management as appropriate for business organisations.
the universal application and differentiated them among Taylor based his management system on
production line time studies instead of relying on
five elements of the process viz., to forecast and plan,
traditional work methods.
to organize, to command, to coordinate, and to control.
Taylor recognized how much workers should be
The concept of management was, further, defined
able to work with the equipment and materials at hand
as the process of doing certain functions like planning,
and also had optimistic approach towards employers in
organizing, etc. These functions were projected to be
order to pay more productive workers at higher rates
performed by managers at all levels in the organisation by applying a scientifically accurate rate that is going
and in all types of industries and in various countries. to benefit both company and worker. Hence, workers
were recommending to precede with their previous with altered variables like increase in wages, shortening
performance standards to earn more money. This plan of workday and work weeks and introducing rest period
was termed as differential rate system. of varied length. It was suggested by researchers that
Scientific management’s efficiency techniques were groups choosing for their selective rest period should
applied in many jobs in non-industrial organisations, also go for their suggested changes. The results once
ranging from fast food service to the training of again were unclear and uncertain. It resulted in increase
surgeons. Taylor stressed more on the efficiency at work of performance over time but it rose and fell erratically.
which could bring more improvement in the work Great researchers like Elton Mayo, Fritz J
culture of the organisation. He promoted an inductive, Rosethlisberger and William J. Dickson also became
empirical, comprehensive study of each job to determine involved in these set of experiments. They decided that
the one best way to organize work. a complex chain of attitudes has led to the increase in
The primary objective of scientific management productivity. They had been singled out for special
was to substitute effective methods which are based on attention. The rest and the control groups had developed
trial and error and rule of thumb. a group pride that motivated them to improve their work
The primary benefit of scientific management was performance. Their motivation was further reinforced
maintenance and appropriate use of the available by sympathetic supervision. It was concluded by the
resources. Specialization and division of labour gave researchers that employees will work harder if they
rise to the second industrial revolution. Time and motion believe that management was concerned about their
techniques are important tools to systematize the welfare and supervisors are also paying special attention
responsibilities in an efficient and rational way. to them. This eventful happening was labelled as the
It helps to build professionalism in the management. “Hawthorne Effect”.
Scientific management has proved to be very effective It was further concluded by researchers that
and helpful in increasing the productivity and efficiency informal work groups and the social environment have
of operations. a positive influence on productivity. The group pressure
Q. 6. Elaborate the Hawthorne experiments. proved to be stronger source of influence on worker
What are its findings? How are they relevant in the productivity than management demands.
modern organisation? The findings of Howthorne studies are as follows:
Ans. Hawthorne studies were an attempt to (i) The material impact on the efficiency of work
investigate the relationship between the level of lighting is not affected by the physical environment
in the workplace and worker productivity. It was human at the working place.
relations movement that grew out of a famous series of (ii) The efficiency determining factors are
studies that were conducted at the Western Electric Co. favourable attitudes of workers and work-
from 1924 to 1933 and was eventually coined as the team towards their work.
“Hawthorne Studies” as many of them were performed (iii) The morality and efficiency of workmen can
at Western Electrics Hawthorne Plant near Chicago. be maximized through fulfilment of their
In earlier studies, the researchers divided employees social and psychological needs.
into test groups. These test groups were subjected to (iv) The employee groups that are based on social
deliberate changes in lighting and control groups, whose interactions offers a strong influence on the
lighting remained constant throughout the experiments. performance of the organisational workers.
The experimentation delivered uncertain and unclear (v) Economic rewards can’t be the only
results. The productivity increased but erratically when motivating factors for workers as other
the test group lighting was improved. Even when motivators like job security, recognition by
lighting conditions were worse, the productivity tend superiors and right to express their opinion
to be increasing in the test group. It was clear that there on matters also influences them.
were other factors besides lighting that were influencing According to the human relations approach, the
worker’s performance. management problems are primarily based on the
The new set of experiments were conducted where analysis that the modern organisation is a social system
small group of workers were placed in a separate room where the social environment and interpersonal relations
manages the behaviour of employees.
It highlights that the authority responsibility According to Mayo, the theory of social man
relationship between superiors and subordinates is motivated by social needs, wants, rewards on the job
directly related to the social and psychological relationships, and responds extra towards the work-
satisfaction of the organisational employees. group pressures than to management control. It was
It emphasizes on the fact that efficiency in an essential to balance the old concept of rational man
organisation is achieved through having full cooperation motivated by personal economic needs. The neo-
of its employees. It encourages management for the classical theory examines the factor and also evaluates
development of social groups on the job. It also the important contributions in the field of human
encourages in providing opportunities for free relations for structural adjustments in an organisation.
expression of thoughts and opinions by employees. The contribution of the neo-classical theorists can be
It encourages managers to recognize the importance categorized as the revision of the classical theory.
of democratic leadership. It is because as it will help The theory identifies the significance of co-
free flow of communication where subordinates can also ordination and communication for motivation of human
be part of decision-making process. It stressed on the resources. According to this theory managers are
fact that the complete employee satisfaction was the best expected to give more attention on the fatigue and
means of achieving higher productivity and efficiency monotony than division of labour. They are of the view
in the organisation. It made managers think about the that if human beings are not taken care of well, can lead
actual social and psychological needs of their employee to serious problems in the human relations within the
that can really motivate them. It desired efforts that can organisation amongst the superiors and the subordinates.
create an ideal working environment where people can This theory also viewed that the participation,
fulfil their needs as well contribute to organisational recognition of human dignity and communication are
goals. the foundation stones of efficient management.
Q. 7. What is the contribution of Neo-classical Therefore, we can say that the neo-classical theory
theory of organisation? Do you think that the neo is a distinct advancement over the classical theory. It
classical theory is an improved version of the
clarifies various new variables and concepts like
classical theory? Discuss with examples.
informal organisation.
Ans. The neo-classical theory was formulated on
Nevertheless the neo-classical point of view was
the basis of classical theory. It is modified and extended
criticised on the view that it had too much of skeptical
version of classical theory. The basic assumption of the
puppeteer of people, a short sighted perspective and
theory is that the psychological and social aspects of the
lack of integration among many facets of human
employee as an individual and his work group ought to
behaviour.
be emphasized. In classical view, organisation use to pay
Q. 8. Critically examine the modern theory of
attention on structure, order, the formal organisation,
organisation.
economic factors and objective rationality. But neo-
Ans. The modern organisation theory believes in
classical view used to emphasize more on the social
the dynamic conditions at micro and macro levels. It
factors and emotions at work.
identifies the dramatic changes that are taking place in
Managers need to interact with their employees in
the society. The modern organisation theory is a
the best and healthy way in order to get the effective
compilation of outlook of diverse theorists of
and efficient output from them. The essence of the
organisation. The theory is based on the representation
human relations helps the organisation to accomplish
of a structure therefore it is considered to be identical
the desired goals easily. Organisational position should
be observed in social terms as well as in economic and with system theory.
technical terms. Organization should also be evaluated Chester I. Barnard analyzed organisation as a
in terms of clinical method adopted to diagnose and societal arrangement of supportive communications
eradicate the problems faced in the smooth functioning among the members; organisation, individuals and
of the organisation. customer are parts of environment.
Mary Parker Follet had laid emphasis on the Q. 9. Discuss the emerging trends in organisation
integration of individual and organisational units theory?
through systems approach. Norbert Weiner a pioneer Ans. The different theories of organisation states
in cybernetics gave crystal clear vision of the that there are three types of approaches and they are:
(i) Structural-Functional approach
organisation as a system. Many other operational
(ii) Socio-Psychological approach
researchers like Churcham , etc. were also among those
(iii) System-Contingent approach.
who think that the system as an interrelated having These three types of approaches are mutually
multifaceted functions related to the various dependent on each other as they have inherent
components. Some more social scientists like Katz and relationships. No theory can be complete and it has to
Kalu presented a complete theory of organisation using be supplemented with other two approaches. It is also
open systems approach. difficult to generalize a single theory of organisation
The systems approach is extensively used in that can explain organisation in complete totality. The
organisational investigation. It has proved to be a very mechanistic or structural approach ignores human
problems while humanistic socio-psychological
useful tool for the conceptualization of the organisation
approach underestimates formal and closed setting of
and its external and internal relationships. It also assists
an organisation. The two theories differ in terms of focus
in the contingency or situational view of organisation and emphasis. It becomes important to consolidate
which marks a fundamental disappearance from the different views to understand an organisation with
traditional approach that emphasized generally as one respect to recent and contemporary trends in
of the best way of structuring organisations. Under the organisation theory.
control of systems theory the current view in The basic aim of organisation theory is to explain
organisations analysis is that the structure can vary from and predict. The theory also attempts in understanding
situation to situation depending on such factors as their social or human grouping that is designed as an
organisation. It provides researcher an opportunity to
environmental conditions and technology. Scott and
test and try his ideas about the organisation and also
Mitchell proposed “contingency approach” as new
helps him in improvising theories further. The
micro phase in management. contemporary issues with respect to environmental
Its major attention was problem solving puzzles changes to be addressed in organisation are as specified:
and putting out fire, the approach had practical and ● Impact of technology on human side of an
realist flavours. It is considered as gentle wind in the organisation.
management literature that dispersed the humanistic and ● Impact of globalisation on organisational
general system fog. The main benefit of contingency designs.

● Impact of different strategies on organisation.
theory was that it compelled us to be aware of
● Impact of behavioural change of human
complexity in every situation. It forces us to take active
beings on organisation.
and dynamic role in delivering out the best possible
● Impact of newer organisations on the society.
solution for each problem. It is similar to system theory ● Environment organisation interface.
as it examines the relationships between sub-systems ● Cross-cultural impact on organisation.
of a specific organisation in a given environment and ● Impact of mobility of people and technology
also offers desired solutions to particular organisational on organisation and so on.
problems.
■■
24
Organisation Structure and Effectiveness

3
INTRODUCTION balancing, stimulating creativity, encouraging growth
and making use of technological improvements.
Organisational functions and activities need to be Organisation structure determines the allocation of
organised and coordinated. They should be designed tasks, influences division of tasks and helps in grouping
properly to manage the effective division of work, of activities. It also influences coordinating the activities
grouping of activities, coordinating and controlling the and the overall task accomplishments in an organisation.
work of the organisation. Organisational structure Managers are required to take four important decisions
determines the work allocation and grouping of activities for designing organisational structure. The first step
according to the needs and goals. All the activities need involves division of overall task into smaller jobs. The
to be delegated by the managers to achieve efficiency and second step involves distribution of authority among
professionalism in the task. It needs departmentation the jobs. The third step stresses as bases by which
which leads to efficient functioning of managers and individual jobs are to be grouped together. The fourth
the organisation. It also gives specialised output, step refers to the appropriate size of group reporting to
administrative control and fixation of responsibilities, each superior.
freedom and development of managers. There are three Division of labour results in work specialisation
types of structures of organisation: they are functional, and delivers benefit to the organisation. It enhances work
divisional and adaptive according to which an efficiency and so employee’s skills can be used in best
organisation can be created. Besides this, organisation possible ways. It helps in attaining perfection on job. It
structure has three dimensions: they are formalisation, enhances productivity and lowers training costs. Its
centralisation and complexity to attain organisational demerits are that it cannot be used for all types of jobs,
effectiveness. Other factors which influence effectiveness leads to monotony and boredom, and under-estimates
are managerial policies and practices, environmental behavioural aspects of workers.
characterisation, employee characteristics and Delegation is a process followed by manager in
organisational characteristics. which he divides the work assigned to him. It is done so
SUMMARY that he can perform his part efficiently in the interest of
The designing is done for division of tasks, the organisation. It is legitimate authorisation to a
grouping of activities and coordinating and controlling manager or employee to act in a specified way.
the tasks of organisation. Organisation structure is Delegation has its benefits as it leads to
established pattern of relationships among components professionalism, enhances creativeness and
of the organisation. It refers to the network of innovativeness through managerial decisions, creates
relationships among individuals and positions in an competitive environment, and encourages quick witted
organisation. decisions.
The structure of organisation takes the shape of It has its limitations as managers it may resist
pyramid and implies some important facts. It contributes delegating authority and may require training for taking
to the smooth functioning of organisation in many ways. decisions. It may also result in increasing of
The significance of organisation structure is attributed administrative cost.
to factors like clear-cut authority, relationships, pattern Departmentation is the process done for efficient
of communication, location of decision centres, proper functioning. It includes forming departments or grouping
ORGANISATION STRUCTURE AND EFFECTIVENESS / 25
activities of an organisation into number of separate small organisations. On the contrary, decentralization
units. Its major benefits include specialization, is just the opposite as it means transference of authority
administrative control, and fixation of responsibility, from higher levels to lower levels.
freedom or autonomy, development of managers. Complexity relates to the difference among jobs
Span of Control means the number of individuals and units. It reflects the extent of differentiation that
that can be efficiently supervised by the manager. It exists within the organisation. In organisations, there
has some important factors like nature of the work, can be horizontal, vertical and spatial differentiation that
ability of the managers, efficiency of the cognition, self- is based on the complexity of activities.
assistants, time available for supervision, ability of the Organisational design is the process of
subordinates and degree of decentralization. coordinating, structural elements of organisations in
There are different types of organisation Structure appropriate manner.
that can be created. They are done on the basis of Organisational effectiveness is the measure of
arrangement of activities. There are three types of effectiveness by which any organisation functions are
structural forms and they are: also dependant on the structure of the organisation.
(i) Functional structure There are many factors that influence organisational
(ii) Divisional structure effectiveness and they are managerial policies and
(iii) Adaptive structure. practices, environmental characteristics, employee
In functional structure there is functional characteristics and organisational characteristics.
specialisation in each unit that leads to operational
TERMINAL QUESTIONS
efficiency of persons engaged with it. It is created by
having units and sub-units based on the functions in the Q. 1. What is Organisational Structure? Discuss
organisation. the significance of Organisational Structure.
Divisional structure works well with large Ans. Organisational structure refers to the network
enterprise that deals in multiple products and has of relationships among individuals and positions in an
multiple markets to sell their products. Organisation gets organisation. It can be defined as established pattern of
divided into smaller business units that are exhausted relationships among components of the organisation. It
with business related to different products or different is the formal system of task and reporting relationships
market territories. This type of structure is characterised that controls, coordinates and motivates employees. It
by decentralisation of authority and provides helps in associating them and working together to
opportunities to divisional managers. It has its achieve organisation’s goals. Organisation structure is
limitations as it requires adequate number of capable like the framework of an organisation. Organisational
managers to take charge of respective divisions and their structures imply formal relationships with well-defined
functional units. duties and responsibilities. It also implies to the
Adaptive structures are the one of that are designed hierarchical relationships between superior and
to cope with the unique nature of undertaking and the subordinates within the organisation. It helps in
situation. They are of two types: they are project coordinating various tasks and activities that are
organisation and matrix organisation. assigned to different persons and departments.
There are three dimensions of organisation structure Organisational structure helps in having set of policies,
and they are formalisation, centralisation and procedures, standards and methods of evaluation of
complexity. employee’s performance. It should be developed as per
Formalisation is the extent to which the activities, needs of the people in the organisation.
rules, procedures instructions etc. are specified and Organisational structure plays significant role in
written and refers to the degree to which the activities effective and efficient functioning of organisation. There
of the organisation are standardized. It promotes are many significance of organisational structure and
coordination, reduces operating cost, standard activities they are as follows:
reduce conflict and ambiguity, scope of personal (i) Clear cut authority relationships: Organi-
discretion is less. zational structure helps in delivering authority and
Centralisation is the extent to which decision- responsibility among employees in an organisation. It
making is centralized in the organisation. It is useful in
signifies the duties and responsibilities concerned with of the structure of the organisation. There are four
particular post to concerned persons. It helps in components of organisation structure and they are as
recognising roles for each employee and his follows:
accountability to the organisation. It also correlates 1. Division of labour: It refers to the divisions of
relationships of one organisational member to the other overall tasks into small jobs. The division of labour
members. delivers many benefits to the organisation. It enhances
(ii) Pattern of communication: It provides the work efficiency. The skills of employees can be used in
patterns of communication and coordination in an most effective and efficient ways. Due to low work
organisation. Organisational structure helps in grouping cycles of jobs, employee achieves perfection in short
activities and people and so it facilitates communication duration of time. It encourages high productivity in the
between people centred as their job activities. The organisation. The training of workers helps them in
sharing of information helps person in solving their joint performing their repetitive work. The cost of training is
problems. reduced and it becomes easier to match each worker with
(iii) Location of decision centres: It determines specified job skills.
the location of centres of decision-making in the (ii) Delegation of authority: It is considered as
organisation. most integral element in the process of organisation.
(iv) Proper balancing: It helps in creating proper Delegation can be defined as a process through which
interrelationships are created among individuals in their
balance and lays emphasise on coordination of group
different roles in the organisation. It is a process where
activities in the organisation.
manager divides the assigned work to him so that he can
(v) Stimulating creativity: An efficient and sound
perform his part effectively. It is a legitimate
organisation structure provides well-defined patterns
authorization to a manager or employee to act in
of authority that stimulates creative thinking and
specified ways. This process enables persons to function
initiative among members of the organisation. Every
independently without reference to their respective
organisational member understands his power and
supervisors. They are bounded by the limits set by
utilizes it to perfection to get appreciation in the
supervisor and within the normal framework of
organisation.
organisational objectives, policies, rules and procedures.
(vi) Encouraging growth: It provides the
The process of delegation involves entrustment of work
framework within which an enterprise functions. If the
to another for performance, granting of power, right or
structure of organisation is flexible then it will help in authority to be exercised for performing work and
meeting challenges and creating opportunities for creation of an obligation on the part of the person that
growth. It helps in facility growth of the enterprise by accepts delegation.
increasing its capacity so that increased level of activity This process make manager’s burden free and helps
can be handled. in looking into important matters of the organisation.
(vii) Making use of technical improvements: Delegation provides continuity in the organisation. It
Adaptability to the change in a sound organisational helps in creating healthy organisational climate by
structure and in making maximum use of latest creating better understanding and cooperation among
technology. It modifies the existing pattern of authority organisational employees. It leads to professionalism
responsibility relationship in respect to the and helps managers in taking quick decision. It helps in
technological improvements in the organisation. creating competitive environment in the organisation. It
Q. 2. What are the components of organisation enhances creativity and innovation in the decision taken
structure? Discuss them and explain how do they by managers in the organisation.
help in smooth functioning of the organisation? (iii) Departmentation: It is the process by which
Ans. Organisation structure determines the efficient functioning of organisation is achieved by
allocation of tasks and the formal coordinating forming departments or grouping activities into a number
mechanism that are followed by interaction pattern in of separate units. The concept of departmentation can
the organisation. It also determines the authority vary from organisation to organisation. It is directed
relationship in the organisation. An ideal manager is towards delineation of executive responsibilities and
required to take following four decisions for designing grouping of operating that are below the apex are
departmentalized. The levels at succeeding lower levels specialised operations. This type of arrangement is well
involves further departmental differentiation suited to small and medium size organisation. It
experimentalization has its major benefits in the becomes incompetent while handling problems of an
structuring of the organisation. It leads to the benefits organisation as it grows in size and complexity. When
of specialization. It is because as various organisational there are diverse trends of activities performed in large
activities are grouped as per their relations with the number of sub-units, it becomes difficult to manage. In
specified functions or objectives. It helps in the such type of arrangements, the probability of lack of
effective managerial control in the organisation. The communication and coordination and control arises that
expenditure of each department has a specific objective. leads to problems in the organisation.
Departmentation helps to fix the performance of various (ii) Divisional Structure: This type of structure is
tasks. It facilitates freedom or autonomy as every head well suited to large enterprises. It works effectively to
of departments is given a sufficient degree of authority. those large enterprises that deal in multiple products
It helps in the development of managerial personnel as serving many distinct markets. The division of
it provides those opportunities to take independent organisation takes place into small business units that
decisions and initiative. are entrusted with business related to difficult products
(vi) Span of control: It is referred to the number or different market territories. All the divisional
of individuals that can be managed and supervised by managers are given authority and autonomy to run all
manager effectively. It should neither be too wide nor functions relating to their respective products or
too narrow. The actual span of control affects the marketing segments or regional markets. Each division
functioning of organisation in different ways. The span contributes planned profits to the organisation but works
of control can be wider if the work is simple and as independent business. Managers head the functional
repetitive. It will be narrower in case of close supervision units while divisional managers take the final authority.
work. In this type of arrangement, top management determines
Q. 3. Explain various types of organisation the organisational goals and formulates policies. This
structure? How do they facilitate the smooth type of structure is characterized by the decentralization
functioning of the organisation? of authority. It enables managers to take decision
Ans. There are different types of organisation promptly and helps them resolve problems that are
structure. They can be created on the basis of related to their respective divisions. Divisional
arrangement of activities in the organisation. There are managers are provided with opportunities to take
three types of structural forms in the organisation and initiative in matters that are within their jurisdiction.
they are: Its demerits are that it involves heavy financial costs
(i) Functional Structure due to the duplication of supporting functional units for
(ii) Divisional Structure the divisions. It also demands adequate number of
(iii) Adaptive Structure. potential managers taking charge of their respective
(i) Functional structure: It is the organisational divisions and their respective functional units.
structure that is based on the functions of the units and (iii) Adaptive Structure: This type of structure is
sub-units of activities. Every organisation has designed as to cope with the unique nature of
specialised functions and they constitute as separate undertaking and the situations in the organisation. There
units of the organisation. The entire activities that are are two types of adaptive structures they are:
connected with such functions are placed in the same (a) Project organisation
unit. The increase in volume of activity results in (b) Matrix organisation.
addition of number of persons under each manager at (a) Project organisation: This type of organisation
various levels. It also results in the increase of sub- is suitable when an organisation undertakes specialised
units that are created at lower levels in each unit. It work for a particular period as one time operation. In
finally results in the inter-related positions taking the order to deal with such situations organisations develops
shape of a pyramid. Its major significance is that there a unit which is specially designed to accomplish such
is functional specialisation in each unit. It leads to project works without disturbing the routine jobs of the
operational efficiency of the persons engaged in the organisation. The organisations engage their existing
organisation. The organisation also gets the benefit of employees on deputation basis to deal with a particular
project and then that particular executive resumes to (c) There is no scope of judgement as the
his parent department after the completion of the project. decisions are taken on the basis of standard
The advantage of such organisations is that it does not rules and procedures.
disturb the regular work of the organisation. It enables (d) The operating cost of the organisation is
the better control over the project activities because the reduced.
managers enjoy the authority to function the projects (e) It reduces the conflict and ambiguity as most
effectively. But at times these organisations spoil the of the activities are standardized.
stability of the various departments as the personnel are Besides these benefits it has some criticisms also
shifted for the sake of the project and thus disrupt the they are:
basic functioning of the parent department. (a) There is no creativity and flexibility in the
(b) Matrix organisation: It aims to combine the organisation as most of the activities are
advantages of autonomous project organisation and standardized.
functional specialization. In this structure functional (b) It becomes difficult to change the rules of
departments are having full time specialised workers to the organisation.
accommodate and are capable of handling more than (c) Employees need to struggle a lot if new rules
one project at a time. This is found suitable as the are formulated and implemented.
organisation is most of the time engaged in the project Even though there are some limitations of
activities and the managers are also more in number formalization, it is used in most of the organisations
and can accomplish the project work effectively. It because it contributes a lot in the smooth and effective
provides for the flexible system of working as it adapts running of the organisation. It enhances relationships
the changes quickly. The demerit of such organisations and efficiency of the organisations also.
is that the employees are engaged in dual jobs and are (ii) Centralization: It refers to the degree to which
burdened with more work which affects the unity of decision-making is centralized in the organisation.
command at times in the organisation. Centralization is one of the fourteenth principle of Henry
Q. 4. Discuss various dimensions of Fayol. According to his principle, the decreasing role
organisational structure. Do you think that the study of subordinates in decision-making is centralization
of formalization, centralization and complexity help while decentralization is just the opposite of it. In
centralization, control and decision-making are made
in enhancing the efficiency of the organisation?
by the top level of management and little delegation of
Discuss.
authority is the rule. It is almost impossible to have
Ans. Organisational structure has three dimensions
absolute centralization as it would deprive subordinates
as has been laid down by Robins they are:
with power, authority and duties to large extent. The
(i) Formalization concept of centralization plays a vital factor for survival
(ii) Centralization in small organisation as they face competitive market
(iii) Complexity in the world. The urgency for decentralization arises in
(i) Formalization: It refers to the degree to which larger size industries as decision-making has to be
the various activities, rules, procedures, instructions etc centred to the operating level. It is due to the complexity
are mentioned, defined and standardized in an of large size industries in terms of their increasing size,
organisation. The degree of formalization is higher and interdependence of work flow, complexity of tasks and
is directly proportional to the degree of division of spatial physical barriers within and among groups.
labour, level of delegation of authority, degree of Decentralization refers to pushing down the authority
departmentation and span of control. There are various and power of decision-making to the lower levels of
benefits of formalization they are: the organisation. It is systematic effort to hand over
(a) Formalization reduces the unpredictability in power and authority to the lowest levels. In
the organisation as the activities are decentralization, the centres of decision-making are
standardized. dispersed throughout the organisation. In other words,
(b) It gives rise to coordination as the activities decentralization means the transference of authority
are defined and specified which leads to from a higher to a lower level. The concept of
effective coordination between the superiors decentralization is also referred to with fundamental
and the subordinates. principles of democratic management as every
individual gets deserving respect for his inherent worth performance of the organisation. There are various
and constitution. components of organisational effectiveness they are:
(iii) Complexity: Complexity is a term that refers (i) Managerial Policies and Practices
to the differences among jobs and units. Complexity (ii) Environmental Characteristics
reveals the degree of differentiation that exits within (iii) Employee Characteristics
the organisation. Complex organisation structure arises (iv) Organisational Characteristics
due to the existing variety of jobs and units within the (i) Managerial Policies and Practices: It helps
organisation. Due to its complex structure, the to combine the organisation as a whole in order to
management becomes very difficult and tedious.
maintain a balance between the various interest groups
Complexity of the organisation refers to the degree of
in an organisation and to accommodate them according
coordination, communication and control within the
to the environment of the organisation. There are
organisation. There are three types of differentiations
that are based on complexity of activities within the various policies and procedures which need to be
organisation. formulated and implemented at various occasions of the
Higher the amount of differentiation, the higher will organisation they are:
be the complexity within the organisation. These (a) Strategy: It refers to the plan in order to interact
differentiations are horizontal differentiation, vertical between the competitive companies to achieve the goals
differentiation and spatial differentiation. effectively. These strategies are selected on the basis
(i) Horizontal differentiation: It refers to the of environmental needs, and then are redesigned by the
number of different units at the same level in the top management to achieve the desired results.
organisation. The good examples of such types of (b) Leadership: It enables to influence the
differentiation are specialisation and department- employees towards the effective goal achievements.
alization. Leaders enable to identify the organisational goals and
(ii) Vertical differentiation: It refers to the number also try to initiate the steps towards them.
of levels in the organisation. This type of differentiation (c) Decision-Making: Managerial decisions play
reflects the depth of hierarchy in the organisation. The a very important role in the success of an organisation
increase in the hierarchal level will enhance the which is taken out of the various alternatives available
complexity in the organisation. The important factors at a given point of time.
of working like coordination and communication (d) Rewards: Rewards are given to the employees
becomes difficult. to recognize their efforts towards effective achievement
(iii) Spatial differentiation:This type of differen- of the organisational goals. It is done to encourage the
tiation refers to the degree to which location of units employees and boost their morale which enables them
and the personnel’s are dispersed. The complexity of to improve the quality and quantity of work.
organisation increases in multiple locations as (e) Communication: It contributes a lot in the
coordination and interaction becomes difficult in the event of organisational change as it helps in the proper
organisation. communication and linkage between the members of
All these dimensions contributes a lot to the the organisation.
efficiency, high centralization, high degree of (ii) Environmental Characteristics: The external
specialization, centralized authority of functional environment plays a very important role in achieving
departments and monitors a high degree of span of organisational effectiveness. It has various characte-
control. Therefore, all these dimensions are very ristics of environment which helps in understanding the
important and integral part of the organisation to run status of the organisation they are:
effectively and efficiently. (a) Predictability: It refers to the state of certainty
Q. 5. What is Organisational Effectiveness? or uncertainty in an organisation towards supply of
Explain different components and determinants of human resources, human, raw material etc. Predictability
organisational effectiveness. is an element of external environment.
Ans. Organisational effectiveness means to study (b) Complexity: It refers to the heterogeneity and
the organisational structure in order to understand the the range of activities that proves relevant to the
basic working. It helps in evaluating and analyzing the operations in the organisations.
(c) Hostility: It is an environment in which the The organisational efficiency is largely dependent on
foundation of the organisation is threatened. It refers to the choice of technology and its use.
the view by which people view the organisation. (c) Size: It refers to the number of people in an
(iii) Employee Characteristics: It is an important organisation. In broader sense, it can also be referred to
characteristic as the source of human resources can make as the physical capacity of the organisation, the
or break an organisation. Employee characteristics personnel available to the organisation, the
reflects the success and failure of the organisation and organisational inputs or outputs and the optional
its major characteristics are goals, skills, motives, resources available to an organisation. The effectiveness
attitudes and values. and efficiency of an organisation is dependent on the
(a) Goals: It refers to the direction in which an size of the organisation.
organisation is inclined to go. They can be termed to as Q. 6. Write short notes on:
intentions that an individual of an organisation would (i) Departmentalizations
like to accomplish during his course of working. It (ii) Dimensions of Organigsation Structure
provides directional nature to behaviour of the people (iii) Delegation of Authority
and guides their thoughts and actions. Ans. (i) Departmentalization: It is the process
(b) Skills: It refers to ability to engage in a set of done for efficient functioning of an organisation. The
behaviour that is related to one another. It is the ability process of departmentalization includes forming
that leads to a desired performance in a specified area departments or grouping activities of an organisation
and it can be technical, administrative, managerial, into number of separate units. Its major benefits include
behavioural etc. specialization, administrative control, and fixation of
(c) Motives: It is an inner state of mind that helps responsibility, freedom or autonomy, development of
a person to be energized, motivated and directed towards managers. There are various benefits of
the accomplishment of a pre-defined goal. It is observed departmentalization they are:
that motivated employees have high zeal and enthusiasm (a) Specialization: It leads to specialisation of work
to perform better to achieve their respective
as various activities are grouped according to their
organisational goals.
specified field. Each and every manager specialize the
(d) Attitudes: They are evaluative statements
work for which they are assigned from time-to-time.
(favourable or unfavourable) concerning objects, events
(b) Administrative control: It helps in the effective
or people and influences job behaviour as well
control as the standards of performance of every
effectiveness of the organisation.
department are streamlined in accordance with the goals
(e) Values: It refers to as specific code of conduct
and objectives set by their respective managers.
or basic sincerity possessed by an individual in the
(c) Fixation of responsibility: Division of work
organisation. It is highly influential in individual attitude
leads to manageable fixation of responsibility of the
and behaviour. It influences the motivation of an
managers. It becomes very easy to fix the
individual as well as his behaviour in the organisation.
responsibilities and its accountability to various
(iv) Organisational Characteristics: It refers to
the general conditions that exist within an organisation. employees accordingly.
The various characteristics that influence the (d) Freedom or autonomy: The departments
effectiveness of organisations are structure, technology created under this process are semi-autonomous and
and size. have sufficient authority to run the respective
(a) Structure: It defines the formal division, department. It also increases the efficiency of the
grouping and coordination of the job tasks within the departments.
organisation. There are six important elements in an (e) Development of managers: It enables the
organisational structure that are needed for managers to develop their managerial skills by giving
organisational effectiveness. These six elements are them the chance to take decisions and initiatives on their
work specialization, departmentation, chain of own. It also motivates the executives to develop their
command, span of control, centralization, skills for the higher positions in the organisation.
decentralization and formalization. (ii) Dimensions of Organisation Structure:
(b) Technology: It refers to the ways and means Organisation structure has three dimensions as has been
by which an organisation transfers its inputs into outputs. laid down by Robins they are:
(A) Formalization to have absolute centralizations as it would deprive

(B) Centralization subordinates with power, authority and duties to large
(C) Complexity extent. The concept of centralization plays a vital factor
(A) Formalization: If refers to the degree to which for survival in small organisation as they face
the various activities, rules, procedures, instructions etc competitive market in the world. The urgency for
are mentioned, defined and standardized in an
decentralization arises in larger size industries as
organisation. The degree of formalization is higher and
decision-making has to be centered to the operating
is directly proportional to the degree of division of
labour, level of delegation of authority, degree of level. It is due to the complexity of large size industries
departmentation and span of control. There are various in terms of their increasing size, interdependence of
benefits of formalization they are: work flow, complexity of tasks and spatial physical
(a) Formalization reduces the unpredictability in barriers within and among groups. Decentralization
the organisation as the activities are refers to pushing down the authority and power of
standardized. decision-making to the lower levels of the organisation.
(b) It gives rise to coordination as the activities It is systematic effort to hand over power and authority
are defined and specified which leads to to the lowest levels. In decentralization, the centres of
effective coordination between the superiors decision-making are dispersed throughout the
and the subordinates. organisation. In other words, decentralization means the
(c) There is no scope of judgement as the transference of authority from a higher to a lower level.
decisions are taken on the basis of standard The concept of decentralization is also referred to with
rules and procedures. fundamental principles of democratic management as
(d) The operating cost of the organisation is every individual gets deserving respect for his inherent
reduced. worth and constitution.
(e) It reduces the conflict and ambiguity as most (C) Complexity: Complexity is a term that refers
of the activities are standardized. to the differences among jobs and units. Complexity
Besides these benefits it has some criticisms also reveals the degree of differentiation that exits within
they are: the organisation. Complex organisation structure arises
(a) There is no creativity and flexibility in the due to the existing variety of jobs and units within the
organisation as most of the activities are organisation. Due to its complex structure, the
standardized. management becomes very difficult and tedious.
(b) It becomes difficult to change the rules of Complexity of the organisation refers to the degree of
the organisation. coordination, communication and control within the
(c) Employees need to struggle a lot if new rules organisation. There are three types of differentiation that
are formulated and implemented. are based on complexity of activities within the
Even though there are some limitations of organisation.
formalization, it is used in most of the organisations Higher the amount of differentiation, the higher will
be the complexity within the organisation. These
because it contributes a lot in the smooth and effective
differentiations are horizontal differentiation, vertical
running of the organisation. It enhances relationships
differentiation and spatial differentiation.
and efficiency of the organisations also.
(a) Horizontal differentiation: It refers to the
(B) Centralization: It refers to the degree to which number of different units at the same level in the
decision-making is centralized in the organisation. organisation. The good examples of such types of
Centralization is one of the fourteenth principles of differentiation are specialisation and department-
Henry Fayol. According to his principle, decreasing alization.
the role of subordinates in decision-making is (b) Vertical differentiation: It refers to the number
centralization while decentralization is just the opposite of levels in the organisation. This type of differentiation
of it. In centralization, control and decision-making are reflects the depth of hierarchy in the organisation. The
made by the top level of management and little increase in the hierarchal level will enhance the
delegation of authority is the rule. It is almost impossible complexity in the organisation. The important factors
of working like coordination and communication (iii) Delegation of Authority: Delegation is a

becomes difficult. process followed by manager in which he divides the
(c) Spatial differentiation:This type of differen- work assigned to him. It is done so that he can perform
tiation refers to the degree to which location of units his part efficiently in the interest of the organisation. It
and the personnel’s are dispersed. The complexity of is legitimate authorization to a manager or employee to
organisation increases in multiple locations as act in a specified ways.
coordination and interaction becomes difficult in the Delegation has its benefits as it leads to
organisation. professionalism, enhances creativeness and
All these dimensions contributes a lot to the innovativeness through managerial decisions, creates
efficiency, high centralization, high degree of competitive environment, and encourages quick witted
specialization, centralized authority of functional decisions.
departments and monitors a high degree of span of It has its limitations as managers may resist
control. Therefore, all these dimensions are very delegating authority and may require training for taking
important and integral part of the organisation to run decisions. It may also result in increasing of
effectively and efficiently. administrative cost.
■■
33
Organisation Behaviour and Individual Perspective-I
Overview of Organisational Behaviour 4

INTRODUCTION dynamics, organisational issues and environmental
issues. It is a value centered science that utilizes both
Organisational behaviour means the behaviour of objective and subjective logic. In organisational
individuals in an organisation. It is an important study behaviour, the approach is directed towards managerial
in providing guidelines for influencing the behaviour actions that are most appropriate for the desired
of the persons in the organisation. Organisational situation. It follows scientific method and makes
behaviour deals with systematic study of the nature of optimum use of logical theory in its investigation. It is
the organisation. It is applied science and is directly directly concerned with issues like cross-cultural
concerned with issues like cross-cultural management. management, person–culture fit etc., It has direct
It plays significant part in the function of an organisation relations with human side of management and is related
in many ways. It encourages motivating climate in the with the conceptual and human dimensions of the
organisation and helps in building cordial industrial
management. Organisation behaviour is an applied
relations. Organisational behaviour nurtures effective
science and helps in smooth functioning of the
managerial skills and has its three major goals–
organisation.
understanding behaviour, predicting behaviour and
There are many disciplines like psychology,
controlling behaviour. The factors of modern
sociology, social psychology, anthropology, political
Organisational behaviour give rise to better
science, economics, engineering, medicine, semantics
understanding of inter-relations of human behaviour and
that have made significant contribution in the field of
other variables of the organisation. Organisational
organisational behaviour.
behaviour also provides effective parameters where
Organisational behaviour has played significant part
number of inter-related dimensions can be identified.
in the function of an organisation in many ways. It has
SUMMARY its many benefits as it helps managers in getting their
Organisational behaviour is a term that is referred work done in most efficient ways. It makes every
to the behaviour of persons in the organisation. The individual to understand himself in the organisation. It
study of organisational behaviour is important as it helps in developing work related behaviour and the
provides guidelines for influencing the behaviour of the feeling of job satisfaction within the organisation.
persons in the organisation. Organisational behaviour Organisational behaviour helps in building
is an inter-disciplinary approach to the study of human motivating climate and helps in building cordial
behaviour. It provides many helpful insights in industrial relations. It imparts major relevance in the
understanding the complexities of people’s behaviour field of marketing by delivering deeper insights to
on the job. It is the study and application of knowledge consumer behaviour. It leads to effective management
about interaction of people with the organisation. of human resources. The major benefits of organisational
It is very significant aspect as it deals with behaviour are that it helps in improving functional
systematic study of the nature of organisations. behaviour of the organisation. It further enhances
Organisational behaviour laid stress on five levels of productivity, effectiveness, efficiency, organisational
analysis and they are individual behaviour, inter- citizenship and reduces dysfunctional behaviour at work
personal behaviour, group behaviour and group places.
Organisational behaviour also helps in building at work place, maintain stress free individuals and
effective managerial skills. Organisational behaviour environment and by keeping individuals and teams
has three major goals and they are understanding motivated and providing job satisfaction.
behaviour, predicting behaviour and controlling There are various measures that are suggested by
behaviour. Organisational behaviour to make group level
There are various theories related to the interventions, they are group formation and structure,
development of organisation as well as the concept of communication, conflict management, team building
management. There have been considerable changes in and leadership and power and politics. These measures
the theories of organisation as there has been help in developing small and large groups in the
advancement in the theory of organisational behaviour. organisation.
The scientific management was developed by F.W. There are organisational perspective of OB which
Taylor, H.L. Gnatt, Frank and Lillian Gilberth. The deals with big issues of the organisations such as
classical organisational theory school was developed organisational culture and climate, organisational
by Henri Fayol, Max Weber, Mary Parker Follet, Chester change and organisational development.
Barnard. Individual perspective also deals with some major
The human relations school was developed by Elton issues such as continuous improvement of people and
Mayo through Hawthrone experiments. The process, integrating human factor with main objectives
behavioural science school was developed by Abraham of organisation, quality control of products and services
Maslow, Donglas Mc. Gregor, Ames March, Herbert and of the process of the organisation as a whole,
Simon. restructuring of task force teams and service
This era also slate the various approaches such as organisations, managing diversity, product innovation,
systems approach, contingency approach and managing creativity, cross-cultural management and
contemporary approach which are still a part of the managing multinationals. All these measures are taken
organisational behaviour of the modern times. to face the various challenges of the Organisational
All the historical theories have given rise to the behaviour as they are very helpful in formulating the
effective use of human factor, shift of performance strategies related to various interventions of individuals
appraisal from individual to group, more emphasis on and the organisation as a whole.
the human potential developing managerial and human CHECK YOUR PROGRESS
skills, improving human relations and informs
Q. 1. What is organisational behaviour?
organisation, creating energy through team work, to
Ans. Organisational behaviour can be termed as
work with dignity, increase in the important
the behaviour of persons in an organisation. It is an
environmental factors, increase in the concern for people
important aspect to understand others behaviour in an
and making effective efforts for the efficient running of
organisation. The understanding of other behaviour
the organisational culture and climate.
helps in influencing them. Human behaviour is directed
Robert Baron developed various features of
by external and internal forces. The appropriate analysis
modern Organisational behaviour which gave rise to the
of these forces proves useful in understanding the
better understanding of inter-relations of human
behaviour of other persons in the organisation. The
behaviour and other variables of the organisation. It understanding behaviour has proved useful for the
also provided effective parameters where number of managers. It helps them in directing human energy in
interrelated dimensions can be identified such as accomplishing the set goals of the organisation. The
individual, group, organisation and the environment as concept and study of organisational behaviour delivers
they collectively helps in influencing the behaviour in guidelines for influencing the behaviour of persons in
work organisations. the organisation. There are many theories that describe
Individual behaviour is also one of the major the concept of organisational behaviour. According to
concerns for organisational behaviour. An organisation Keith Davis, it is an academic discipline that is
needs to take some measures to keep its individuals concerned with understanding and relating human
growing, they are by encouraging continuous learning, behaviour in an organisational behaviour. It focusses
creating right perception, building positive attitudes on the complex human factor in the organisations. It is
and values, having personality and emotions compatible done through identifying the causes and effects of the
OVERVIEW OF ORGANISATIONAL BEHAVIOUR / 35
observed particular behaviour. According to Joe Kelly, (viii) Organisational Behaviour helps in predicting
Organisational behaviour can be explained as the behaviour and its application in meaningful way
systematic study of the nature of the organisation. It delivers effectiveness in the organisation.
thoroughly focusses on factors such as the origination (ix) Organisational Behaviour implies effective
of organisation, its growth and development and management of human resources.
organisation effect on its members and other relative (x) Organisational Behaviour helps in improving
organisations etc. functional behaviour within the organisation.
According to Luthans, Organisational Behaviour It helps in attaining higher productivity,
is directly concerned with the understanding, prediction, effectiveness, efficiency, organisational
and control of human behaviour in organisations. citizenship. It works effectively in reducing
According to Robbins, Organisational Behaviour dysfunctional behaviour at work place like
can be described as a field of study that investigates absenteeism, employee turnover,
the impact that individuals, groups and structure have dissatisfaction, tardiness etc.
on behaviour within the organisations. This type of The study of Organisational Behaviour has been
knowledge helps in improving the effectiveness and considered to most valuable contribution in enhancing
efficiency of the organisation. According to Baron and managerial skills. These are the following skills that are
Greenberg, Organisational Behaviour can be described developed through Organisational Behaviour in the
as field of study that seeks knowledge of behaviour in managers of the organisation. They are as follows:
organisational settings by systematically studying (i) Self development
individual, group and organisational processes. (ii) Personality development
Q. 2. How can study of Organisational (iii) Development of human values and ethical
Behaviour lead to managerial effectiveness? perspective
Ans. The study of Organisational Behaviour has (iv) Managing stress and achieving mental
proved beneficial in many ways. The benefits of hygiene
studying Organisational Behaviour are as follows: (v) Creative use of emotions
(i) Organisational Behaviour is a systematic (vi) Creating and learning individual and learning
study of the actions and attitudes that people organisation
exhibit within the organisation. It also helps (vii) Managing creativity and innovation
any individual to understand his behaviour. (viii) Motivation and morale
(ii) Organisational Behaviour has proved (ix) Job satisfaction
instrumental for managers in getting their
(x) Effective communication
work done effectively.
(xi) Interpersonal effectiveness including
(iii) Organisational Behaviour lays emphasis on
persuasion, coaching, counselling, mentoring,
the interaction and relations between
goal setting, decision-making, politicking,
organisation and individual behaviour. It
negotiation conflict handling
works as a positive attempt in fulfilling
(xii) Team building
psychological agreement between organis-
(xiii) Leadership
ation and the individuals.
(iv) Organisational Behaviour delivers job (xiv) Creating effective organisational culture
satisfaction to employees and helps in (xv) Managing change
developing work-related behaviour in the (xvi) Continuous development through behavioural
organisation. interventions.
(v) Organisational Behaviour helps in building Q. 3. Why is Organisational Behaviour called
motivating climate in the organisation. an interdisciplinary field of study?
(vi) Organisational Behaviour helps in building Ans. Organisational Behaviour can be expressed
cordial industrial relations with others. as an interdisciplinary field of study as it put together
(vii) Organisational Behaviour smooths the the facts from a variety of relevant fields. Organisational
progress of marketing by providing deeper Behaviour is not an fundamental topic, but it is relatively
insight of consumer behaviour and like a compound subject, with incorporated merging of
motivating and managing field employees. various fields. In modern terms, Organisational
Behaviour is defined as an interdisciplinary approach connected to Organisational Behaviour they are, power
which helps in analysing the human behaviour in and politics, networking, political manipulation, conflict
organisations. Organisational behaviour can be analyzed resolution, coalition and self-interest enhancement.
in terms of various fields. All fields have contributed a (vi) Economics: Economic environment controls
lot in the study of organisational Behaviour. These fields organisational climate. Organisational Behaviour has
of study are: refined to a great extent from various economic factors
(i) Psychology: Psychology usually related to the such as labour market dynamics, cost-benefit analysis,
study of human behaviour, with qualities of the person marginal utility analysis, human resource planning,
and association of small social groups. The main centre forecasting, and decision-making.
of consideration is on the person as a whole. (vii) Engineering: Industrial engineering area has
Organisational Behaviour discovers a great deal in put in a lot of effort in the area of man-machine
subjects like personality, perception, emotions, attitude, relationship through time and motion study, work
learning, values, motivation and job satisfaction etc. measurement, work flow analysis, job design, and
from the field of psychology. compensation management. All these areas have
(ii) Sociology: Sociologists deal with the learning affected Organisational Behaviour to some extent.
of social behaviour, relationships among social groups (viii) Medicines: Medicines is one of the latest
and societies and the maintenance of order. The main fields which is related to the field of Organisational
consideration is on the social system. Organisational Behaviour. There are various common issues which are
behaviour has developed by dealing with various issues related to both the areas i.e. medicine and Organisational
from sociology such as group dynamics, Behaviour they are stress, tension and depression.
communication, leadership, organisational structures, (ix) Semantics: Semantics facilitates the study of
formal and informal organisations, organisational relations within the organisation. Misinterpreted
change and development etc. communication and lack of communication leads to
(iii) Social Psychology: Social psychology studies various behaviour related problems in the organisation.
interpersonal actions. The social psychologists are Therefore, adequate and effective communication is
concerned with intergroup association, group decision very essential for organisational effectiveness.
making, effect of change on individual, individual’s Q. 4. How views related with managing human
responsiveness to change and integration of individual factor changed along with changes in concepts of
needs with group activities. management?
(iv) Anthr opology: Anthropologists are anxious Ans. The studies of historical development of
to study and analyse the science of mankind and the organisational theories have concluded some important
study of human behaviour. Issues like, individual culture, issues that have occurred with passage of time. These
organisational culture, organisational environment, changes are:
comparative values, comparative attitudes, cross- (i) The human factor became more important
cultural analysis, are some of the familiar fields of successively.
anthropology and Organisational Behaviour. (ii) The importance was given to both individual
Organisational Behaviour is usually concerned with one as well as group (team) performance rather
of the main issues seeking immediate attention out of than focussing on individual performance.
cultural system, the beliefs, customs, ideas and values (iii) The importance was given on actualizing the
within a group or society, and the contrast between the human potential.
(vi) The importance was given on developing
behaviours among different cultures. People try to
managerial as well as human skills on
depend on their culture to give them security and
continuous basis.
stability, and they can experience bad response to strange
(v) The importance was on human relationship
situation. and informal organisation.
(v) Political Science: Political science as a theme (vi) The importance was given on creating
has various components, which directly influence human synergy through team work.
behaviour in organisations as politics leads every (vii) The employees were treated with more
organisation. Many subjects of attention are directly dignity and respect.
(viii) The importance to environmental factors environment were identified. These interrelated
influencing organisation was increased and dimensions collectively influenced the behaviour in
encouraged. work organisations.
(ix) The importance was given to psychological Q. 5. What is your understanding of flow of
contract between individuals and sequence of various issues in this subject of OB?
organisation. Ans. The growth of individuals is counted
(x) There was increasing concern for people in necessary for the continuous growth of the organisations.
organisation. It signifies that organisation is as good as its people.
(xi) There was continuous effort to establish There are some measures that help in the growth of
effective organisational culture and climate.
people and they are:
According to Robert Baron, there are four major
(i) Continuous Learning: The continuous learning
features/characteristics of modern Organisational
Behaviour: in individuals works substantially in the growth of the
(i) There was adoption to more positive view individuals. There are many ways of learning that helps
of human beings in work setting than the ones individuals to grow. Learning can be termed as any
that prevailed in the past setting. permanent change in behaviour or behaviour potential
(ii) It accomplished a high degree of that results from experience. There is need to promote
sophistication about human behaviour by functional behaviour among individuals for effective
drawing on several related fields. functioning of organisations, and discourages behaviour
It has adopted a contingency approach to that is unfavourable to the organisations. There are
behaviour in organisation–assuming that different methods of learning and various means through
there is nothing like permanent way of which learning can be converted into desirable
arriving at a particular solution effectively. behaviour in the individuals.
(iii) There was adoption of contingency approach
(ii) Creating Right Perception: There is need to
to behaviour in the organisation. It assumed
create right perception among individuals. Perception
the fact that there is no permanent way of
arriving at particular solutions effectively. can be termed as process through which we select,
organize and interpret inputs that are supplied to us by
(iv) It suggested Organisational Behaviour to be our sensory receptors. There are five senses in humans
integrative in nature. There was search to (eyes through sight, ears through audition, nose through
understand behaviour in organisations smell, mouth or tongue through taste, and skin through
through combining information extracted touch) and these senses continuously gathers
from several different levels of analysis. information from the surroundings. It is the perception
Modern Organisational Behaviour is also that gives meaning to the various set of information’s
concerned with the issues like: managing intelligence that are gathered through these senses. The study of
quotient, emotional quotient, and spiritual quotient, Organisational Behaviour helps in creating right
improving mental hygiene and overall health of perception that is prime requirement for the efficiently
members, continuous improvement of skills and values working with people.
through training, managing ethical practices, (iii) Building Positive Attitudes and Values: The
accomplishing fulfilment of psychological contract building of positive attitude and values plays significant
between individuals and the organisation, quest for
role in the growth of individuals. Attitude can be defined
quality, behavioural intervention in merger and
as long-lasting evaluation that represents an individual
acquisition as well as in rightsizing, cross-culture
like or dislike for an item, group, or issues. Positive
management, managing multinational organisations etc.
The latest thoughts on Organisational Behaviour attitudes form an important element in building effective
suggest that it is necessary to understand the relationships. Values are the fundamental ideas that a
interrelationships between human behaviour and other definite form of way of survival is individual or social
variables, which together comprise the total and is preferable to an opposite or adverse form of
organisation. These variables provide parameters within performing the work. Values are the base of attitudes
which a number of interrelated dimensions like the and behaviour, therefore it is important to discover
individual, the group, the organisation, and the values in Organisational Behaviour.
(iv) Having Personality and Emotions the organisation. There are many theories that describe
Compatible at Work Place: Personality is person’s the concept of organisational behaviour. According to
unique and relatively constant model of behaviour, Keith Davis, it is an academic discipline that is
thoughts, and feelings. There are requirements in concerned with understanding and relating human
organisations to generate a right grouping of person and behaviour in an organisational behaviour. It focusses
job, in order to utilize full potential of an individual. on the complex human factor in the organisations. It is
According to the provisions of the work, qualities can done through identifying the causes and effects of the
also be developed. Emotions are the reactions which observed particular behaviour. According to Joe Kelly,
are the outcome of subjective cognitive states, Organisational Behaviour can be explained as the
physological reactions, and expressive behaviours. systematic study of the nature of the organisations. It
Cognition is the mental behaviour related to the thought, thoroughly focusses on factors such as the origination
knowledge and memory. Proper understanding of of organisation, its growth and development and
organisation effect on its members and other relative
emotions helps an individual for self-development.
organisations etc.
(v) Maintaining Stress-free Individuals and
According to Luthans, Organisational Behaviour
Environment: Stress is a self-motivated condition in
which an individual is to deal with an opportunity, is directly concerned with the understanding, prediction,
constraint, or demand related to what he or she needs and control of human behaviour in organisations.
and for which the result is supposed to be both doubtful According to Robbins, Organisational Behaviour
and significant. With rising competition and survival, can be described as a field of study that investigates the
and quality becoming higher and difficult to match, impact that individuals, groups and structure have on
stress is the administrative anxiety of modern era. behaviour within the organisations. This type of
(vi) Keeping Individuals and Teams Motivated knowledge helps in improving the effectiveness and
and providing Job Satisfaction: Motivation can be efficiency of the organisation. According to Baron and
explained as the most important indescribable source Greenberg, Organisational Behaviour can be described
of the organisation. Motivation is an indirect in-house as field of study that seeks knowledge of behaviour in
procedure that activates, guides, and maintains organisational settings by systematically studying
behaviour over time. Job satisfaction is a universal individual, group and organisational processes.
approach towards one’s job. It also depends on the Q. 2. How has study of Organisational
segregation between the amount of rewards workers Behaviour integrated concepts from various fields
receive and the amount they believe they should be of knowledge?
given. Ans. The study of Organisational Behaviour faces
a unique discussion. In the field of physical science,
TERMINAL QUESTIONS accounting, mathematics etc, but one needs to know the
Q.1. What do you mean by organisational concept clearly. Though the human behaviour, may not
Behaviour? Explain meaning and scope of deal with a reality, but with the inbuilt knowledge it
Organisational Behaviour. may come into view that we may be familiar with it.
Ans. Organisational Behaviour can be termed as For example, it shows that job satisfaction may lead to
the behaviour of persons in an organisation. It is an high organisational dedication but a good number of
important aspect to understand other’s behaviour in an studies have set against this actually. One of the
organisation. The understanding of other’s behaviour objectives of Organisational Behaviour is to replace
helps in influencing them. Human behaviour is directed traditional notions, often established without question,
by external and internal forces. The appropriate analysis with science-based conclusions.
of these forces proves useful in understanding the Many research studies have been accomplished on
behaviour of other persons in the organisation. The various parts of Organisational Behaviour, and others
understanding behaviour has proved useful for the still continue to examine details. Organisational
managers. It helps them in directing human energy in Behaviour endeavour to experiment theories through
accomplishing the set goals of the organisation. The scientific research process. After the theory has been
concept and study of organisational behaviour delivers originated, predictions resulting from it are tested
guidelines for influencing the behaviour of persons in through direct research. Once they are established,
assurance in the theories is increased. If they are not ■ The individual issues have become more
favourable then it looses its confidence among the important successively.
people. Thus, the theory cannot be tailored and retested, ■ The centre of attention has been transferred
or completely discarded. A good theory is the one which from entity performance to both individual
is practical and have empirical validity. Similarly, a good as well as group performance.
empirical research should have its base in a feasible ■ More emphasis is given on scrutinising the
theory and should add to the body of existing knowledge. potential of a person.
There are mainly three goals of Organisational ■ Emphasising more on increasing managerial
Behaviour they are: Understanding behaviour, and human skills on permanent basis.
Predicting behaviour and Controlling behaviour which Human relationship and informal organisation are
enables to run the organisation effectively. encouraged in order to create synergy through team
Q. 3. How is study of Organisational Behaviour work. It enables the organisations to treat their
beneficial for making an organisation effective? employees with more dignity. Now there is increase in
Ans. Organisational Behaviour helps in making the the importance of environmental factors as they help in
organisation run effectively as it has covered many controlling the organisation. It is also done by giving
important features and functions to administer control importance to psychological contract between
over the entire system. Organisational point of view of individuals and organisation. It further increases the
Organisational Behaviour deals with bigger and main concern for people in organisation. Moreover, efforts
issues of the organisations. All such issues persuade an are constantly made towards establishing effective
organisation in broader ways. Organisational perspective organisational culture and climate.
of Organisational Behaviour deal with various issues to Robert Baron has laid down four major features
make it run effectively they are: to distinguish modern Organisational Behaviour they
(i) Organisational Culture and Climate: are:
Organisational culture elucidates a common view (i) To have positive examination of human being
detained by the organisation’s part. It describes a system at work place than existed in the past.
of collective connotation. A sound culture guides (ii) To draw several related fields, in order to
towards functional organisational climate. For extended attain a high degree of sophistication about
phrase efficiency of organisations need to investigated human behaviour.
and adequate measures should be taken to improve the (iii) To adopt a contingency approach towards
organisational climate and culture. behaviour in organisation by assuming that
(ii) Organisational Change: This is an era of there is nothing like lasting way of reaching
revolution. It is believed that merely object that is lasting at a particular solution effectively.
is subject to change according to the situations and time. (iv) It has integrative nature as it ask to
Earlier there used to be longer duration of permanence understand behaviour in organisations by
with a very minute change in the organisations. Now integrating information from numerous levels
the tune has entirely changed. Modern age does not of analysis.
allow for such situations to arise now. Besides this, modern Organisational Behaviour is
(iii) Organisational Development: Organisational related to the issues like: managing intelligence quotient,
development clarifies the theory behind collection of emotional quotient, and spiritual quotient, improving
planned-change involvement, built on the principle of mental hygiene and overall health of members,
humanism and democracy, that look for an improvement continuous improvement of skills and values through
in the organisational effectiveness and the well-being training, managing ethical practices, accomplishing
of employees to make them feel comfortable and fulfilment of psychological contract between individuals
satisfied at the work place. All these involvements may and the organisation, quest for quality, behavioural
be useful at personal level, group level as well as intervention in merger and acquisition as well as in
organisational level. rightsizing, cross-culture management, managing
Q. 4. How has approach of Organisational multinational organisations etc.
Behaviour matured over time? According to modern belief on Organisational
Ans. The theory of organisational behaviour has Behaviour, it is required to understand the link between
changed a lot from the past: human behaviour and other variables, which together
includes the entire organisation. These variables give performing the work. Values are the base of attitudes
factors within which a number of interlinked magnitudes and behaviour, therefore it is important to discover
can be recognized-the individual, the group, the values in Organisational Behaviour.
organisation, and the environment-which jointly controls (iv) Having Personality and Emotions
the behaviour at the work place. Compatible at Work Place: Personality is person’s
Q. 5. Explain individual perspective, group unique and relatively constant model of behaviour,
perspe-ctive, organisational perspective, and thoughts, and feelings. There is requirement in
integrative perspective of Organisational Behaviour. organisations to generate a right grouping of person and
Ans. Organisational Behaviour is related to the job, in order to utilize full potential of an individual.
individual behaviours in organisations, apart from According to the need of the work, qualities can also be
group behaviours and behaviours in organisations..
developed. Emotions are reactions which are the
An organisation is as good as its working group.
outcome of subjective cognitive states, physiological
An organisation needs to grow continuously therefore,
reactions and expressive behaviours. Cognition is the
there is a need to keep its persons rising through
following procedures, they are: mental behaviour related to the thought, knowledge and
(i) Continuous Learning: The continuous learning memory. Proper understanding of emotions helps an
in individuals works substantially in the growth of the individual for self-development.
individuals. There are many ways of learning that helps (v) Maintaining Stress-free Individuals and
individuals to grow. Learning can be termed as any Environment: Stress is a self-motivated condition in
permanent change in behaviour or behaviour potential which an individual is to deal with an opportunity,
that results from experience. There is need to promote constraint, or demand related to what he or she needs
functional behaviour among individuals for effective and for which the result is supposed to be both doubtful
functioning of organisations and discourages behaviour and significant. With rising competition and survival,
that is unfavourable to the organisations. There are and quality becoming higher and difficult to match,
different methods of learning and various means through stress is the administrative anxiety of modern era.
which learning can be converted into desirable (vi) Keeping Individuals and Teams Motivated
behaviour in the individuals. and providing Job Satisfaction: Motivation can be
(ii) Creating Right Perception: There is need to explained as the most important indescribable source
create right perception among individuals. Perception of the organisation. Motivation is an indirect in-house
can be termed as process through which we select, procedure that activates, guides, and maintains
organize and interpret inputs that are supplied to us by
behaviour over time. Job satisfaction is a universal
our sensory receptors. There are five senses in humans
approach towards one’s job. It also depends on the
(eyes through sight, ears through audition, nose through
segregation between the amount of rewards workers
smell, mouth or tongue through taste, and skin through
receive and the amount they believe they should be
touch) and these senses continuously gathers
information from the surroundings. It is the perception given.
that gives meaning to the various set of informations An organisation comprises of many individuals and
that are gathered through these senses. The study of is not limited to just one individual. The plurality of
Organisational Behaviour helps in creating right people is the essential element of an organisation.
perception that is prime requirement for the efficiently In order to make team more productive and
working with people. effective, an organisation makes continuous efforts to
(iii) Building Positive Attitudes and Values: The create synergy in the group or team. The important
building of positive attitude and values plays significant measures that Organisational Behaviour suggests at
role in the growth of individuals. Attitude can be defined group level interventions are as follows:
as long-lasting evaluation that represents an individual (a) Group Formation and Structure: Group can
like or dislike for an item, group or issues. Positive be explained where two or more individuals are
attitudes form an important element in building effective interacting and interdependent to achieve particular
relationships. Values are at the fundamental ideas that objectives. The issues like forming of groups,
a definite form or way of survival is individual or social developing of groups, judging the under-currents of
and is preferable to an opposite or adverse form of group dynamics and taking groups decisions are dealt.
(b) Communication: Communication is a process members of the organisation. An effective organisational

that deals with transference and understanding of culture leads to favourable organisational climate.
meaning. A sound communication system is established Organisations need to investigate into, as well as need
in the organisation through formal structure as well as to take measures for improving organisational climate
through informal interaction within and outside the and culture for everlasting or long-term effectiveness.
organisation. (b) Organisational Change: We are passing
(c) Conflict Management: Conflict can be through an age of change. It’s the “change” that sounds
described as course of action that begins when one party permanent in modern world. In earlier decades, there
perceives that another party has negatively affected or used to be longer duration of stability and unpredictable
is about to negatively affect, something that the first of changes in the organisation. In modern age, there is
party cares about. There are many levels where conflict longer durations of change interventions in the
may arise like within the person (intrapersonal level), organisations with off and on shorter duration of
between two persons (interpersonal level), stability.
intradepartmental level, interdepartmental level, (c) Organisational Development: Organisational
interorganisational level etc. It is not always that conflict Development can be described as collection of planned-
is bad as it promotes difference of opinions that helps change interventions that are formed on humanistic-
in decision-making process. It helps skillful managers democratic values to improve organisational
to make creative use of conflict by converting challenges effectiveness and employee well-being. These types of
into opportunities. interventions may be applied at individual level, group
(d) Team Building and Leadership: Team level as well as organisational level.
building and leadership are the two important issues of Organisations as well as individuals do not exist in
Organisational Behaviour. Team building leads isolation. There is constant fluctuation of environmental
encourages to high interaction among team members impact on organisation that helps in stimulating
and helps in increasing trust and openness in the behaviour pattern within the organisation. It is important
organisation. The effective leadership styles are required for organisation to muster flexibility for its long-term
for team building. Leadership can be described as the existence. The boundaries of organisations are becoming
ability to influence a group towards the achievement of more transparent rather more fragile. Organisations are
goals. required to focus on many emerging issues so as to
(e) Power and Politics: There is probability of integrate it well with the environmental changes. Some
some type of differences of opinions and conflicts when of these are as follows:
■ Continuous improvement of people and
two or more persons exist in an organisation. The
individuals tend to exercise powers that can influence process.
■ Integrating human factor with grand
others so that others may act with his wishes. Political
behaviour is a concept that deals with the use of informal objectives of the organisation.
■ More emphasis on quality of products,
networking to make an attempt to influence others.
Politics is dysfunctional when others are influenced for services and process.
■ Restructuring to suit requirements of service
narrow gains. Political behaviour is functional when
influence is used for achieving overall goals in larger organisations, task force teams, as well as,
interest and also desirable for organisation. in case of rightsizing and acquisition and
Organisational perspective of Organisational merger.
■ Managing diversity.
Behaviour deals with larger issues of the organisations
■ Product innovation.
and these issues influence an organisation in broader
■ Managing creativity and innovations.
ways. Organisational perspective of Organisational
■ Cross-cultural management.
Behaviour deal with following issues:
■ Managing multinationals.
(a) Organisational Culture and Climate:
Organisational culture depicts a system of shared
meaning. It explains a common perception held by the ■■
42
Individual Behaviour and Learning

5
INTRODUCTION situation contingencies etc. These factors help to get
favourable action from the employees.
Behaviour is the response made by an individual. There are many theories conceived that explain the
It differs from individual to individual by many factors. process by which an individual acquires behavioural
The factors can be demographic, skills and abilities, pattern.
perception, attitudes and personality. Learning is a These theories are as follows:
process that improves the performance of the person. It (i) Classical conditioning
is permanent change in behaviour. The theories that (ii) Instrumental learning
explain the process by which an individual acquires (iii) Cognitive learning
behavioural patterns are classical conditioning, (iv) Social learning.
instrumental learning, cognitive learning and social All these theories explain the role of stimulus,
learning. It helps in modifying the behaviour of response, environmental clues and observation in the
employees. The steps involved in behaviour process of learning.
modification include identifying behaviour to be learnt These theories have proven helpful in modifying
baseline performance, functional analysis, intervention the behaviour of employees.
strategies and evaluation of performances. Attributes The steps that are involved in behaviour
is an important phenomenon that helps in understanding modification include factors like:
perception. Its theory describes the external and internal (i) Identify behaviour to be learnt
behaviour in an individual. (ii) Baseline performance
(iii) Functional analysis
SUMMARY (iv) Intervention strategies
(v) Evaluation of performance.
Behaviour refers to the response made by an
The factors that help in modifying the behaviour
individual and is determined by heredity and
of employees include analysis of pre-behavioural, actual
environmental factors. The behaviour of one individual
behaviour and its consequences.
differs from another by many factors. These factors are
The important barriers to accurate perception are
demographic, skills and abilities, perception, attitudes
stereotyping, halo effect, similar to the effect or
and personality etc. They influence the pattern of
projection, selective perceptions, distortion and contrast
behaviour in every individual. Every manager is desired
effects.
to understand individual behaviour from his
Attribution is a significant phenomenon for
subordinates to elicit favourable response. understanding perception. This theory describes the
Learning improves the performance of the persons external and internal behaviour in an individual. It has
and refers to relatively permanent change in behaviours. proved important concept for managers and its main
It occurs as a result of experience or practice that helps managerial activities includes advertising, maintaining
in imbibing favourable behaviour to meet the challenges safety, managing impression, building corporate image,
of the given situations and environment. managing performance, evaluating performance,
The factors that influence the performance of the judging employee’s loyalty, self-assessment and
employees is ability, role perceptions, motivation and development and building relationship.
INDIVIDUAL BEHAVIOUR AND LEARNING / 43
Techniques involved in enhancing or encouraging the society. It helps them in acquiring socially acceptable
perceptual skills are: behaviour and tries to avoid socially unacceptable
(i) Giving and receiving feedback behaviour as a result of their interaction with these
(ii) Having empathy groups. The culture in which children are brought up
(iii) Having positive attributes determines factors like decision-making styles, attitudes,
(iv) Enhancing self concept independence v/s dependence, soberness v/s aggression,
(v) Avoiding common biases competition v/s cooperation etc. in them. Children learn
(vi) Communication and correct use of norms, values and attitudes which are prescribed by the
attribution. culture by being member of a particular culture. It forces
individuals to behave in conformity to the cultural norms
CHECK YOUR PROGRESS
that are established by the society. It can be concluded
Q. 1. What is individual behaviour? that society and culture apply greater influence on the
Ans. The response made by an individual can be behaviour of individuals.
referred to as behaviour. The response could be the result Q. 2. How one individual differ from others?
of the influence of external factors. The external factors Ans. The human beings are exposed to range and
can be termed as stimulus. The response can be termed assortment of environmental forces from the day of their
as action taken by the individual. There are factors like birth. The behaviour of an individual is established as a
heredity and environment that determines the behaviour result of clubbing of environmental forces with his
of an individual. According to psychologists, heredity genetic characteristics. The behaviour of one individual
determines the nature of the person while environment differs from other due to factors like surroundings,
what a person can becomes. The heredity and situations and nature, which an individual has adapted
environment factors determine the behaviour of an for the years together. There is probability to find some
individual. polite and some aggressive person while socializing in
The characteristics transmitted by parents to the the society. It concludes to the fact that the behaviour
next generation can be referred to as heredity. It is of one person differs from the others. This insightful
through genes that human beings acquire biological observation of varying individual’s behaviour enables
characteristics that control the development of tissues the managers to analyze the power and limitation of
and organs of the body. The biological characteristics their subordinates and their attitude towards the works
are determined at the time of the conception. It’s the and the business. It helps managers to observe the
parents that influence heredity characteristics through working model of the employees as a result of the
the transmission of genes. It is through genetic personal disparity. It helps them to formulate the strategy
transmission that children acquire certain features of to develop the positive behaviour of the workforce.
physique and physique qualities. According to There are factors like demographic factors, abilities and
researches done in genetic engineering, heredity skills, perception, attitudes and personality that influence
determines physical, mental and emotional states of the the behaviour of an individual in the organisation.
individuals. The physical stature, gender, colour, Q. 3. Enumerate the factors influencing
intelligence etc. are influenced by heredity factors. individual difference.
The environmental factors like family, society, Ans. According to John Ivancevich and Michael
culture etc. influence the behaviour of the individuals. Mattson, the major factors that influence individual
The process of children socialisation starts in the family. differences in behavioural patterns are demographic
In this process, the childrens are made to follow the factors, abilities and skills, perception, attitudes and
behavioural patterns of the family. The members of the personality. Let us discuss them, they are as follows:
family force their children to conform to certain (i) Demographic Factors: The demographic
acceptable behaviour and avoid unacceptable behaviour. factors are socio-economic background, education,
So, the childrens acquire the knowledge of acceptable nationality, race, age, sex, etc. Organisation prefer
as well as unacceptable behaviour from their families. persons that belong to good socio-economic
Thereafter, childrens start socializing with a number of background, well educated, young etc. as they are
social groups like friends, school and other members of believed to be performing better than the others. The
44 / NEERAJ : ORGANIZATION THEORY AND BEHAVIOUR
young and dynamic professionals that have good concluded that the study of personality traits offers an
academic background and effective communication opportunity to understand the individuals. It helps them
skills are always in great demand. The study of properly in directing their effort and motivating them
demographic factors is significant as it helps managers for the accomplishment of the organisational goals. It
to pick the suitable candidate for a particular job. refers to the fact that different environmental factors may
(ii) Abilities and Skills: The physical capacity of generate different responses. The study of these
an individual to do something can be termed as ability. responses is very important for the organisation. Every
Skill can be defined as the ability to act in a way that organisation demands a particular type of behaviour from
allows a person to perform well. The individual their employees and such behaviours can be discovered
behaviour and performance is highly influenced by through observation, learning, exposure, training, etc.
ability and skills. A person can perform well in the Q. 4. How does learning influence the
organisation if his abilities and skills are matched with performance of an individual?
the job requirement. The managers play vital role in Ans. Learning experiences of various managers has
matching the abilities and skills of the employees with shown a major revolution in the cognitive areas such as
the particular job requirement. strategic overview, thinking style, action orientation,
(iii) Perception: The cognitive process meant for reflection, personal style, self awareness and the way of
interpretng the environmental stimuli in a meaningful dealing with others. These changes often take place as a
way is referred to as perception. Every individual on result of feedback from peers and subordinates. This
the basis of his/her reference can organize and interpret learning reproduces how knowledge is important for a
environmental stimuli. There are many factors that group to develop successfully.
influence the perception of an individual. The study of Various researches have proved the fact that
perception plays important role for the managers. It is concrete steps are in use by various corporations who
important for mangers to create the favourable work are heading towards the effective and better results. It
environment so that employees perceive them in most is only possible through concrete learning process within
favourable way. The employees are likely to perform the organisation through superiors and the subordinates.
better if they are going to perceive it in a positive way. Almost all the good organizations have inevitably
(iv) Attitude: According to psychologists, attitude formulated, reformulate and achieve its image and
can be defined as a tendency to respond favourably or developed the in-house organisation. It is believed that
unfavourably to certain objects, persons or situations. good organizations have been able to control their in-
The factors such as family, society, culture, peers and house work and objectives and goals irrespective of any
organisational factors influence the formation of hurdles from the external forces.
attitude. The managers in an organisation need to study They are paying more attention to achieve goals,
the variables related to job as to create the work learn, adapt and apply best methods and policies. They
environment in a favourable way that employees are also try to take conscious steps to make sure that the
tempted to form a positive attitude towards their ideas and strategies are very well managed and placed
respective jobs. The employees can perform better in to get the desired output.
the organisation if they form a positive attitude. It is one of the best strategies to improve the overall
(v) Personality: Personality can be defined as the functioning of the organization. These methods and
study of the characteristics and distinctive traits of an policies also enable to learn the most significant way of
individual, the inter-relations between them and the way obtaining new facts and expertise.
in which a person responds and adjusts to other people Learning is defined as a permanent change in
and situations. The several factors that influence the behaviour, which takes place as a consequence of
personality of an individual are heredity, family, society, knowledge or practice. Therefore, we can say that
culture and situation. It implies to the fact that learning is a change in behaviour. This change may be
individuals differ in their manner while responding to favourable or unfavourable.
the organizational environment. Personality can be Learning will help you to increase your output in
regarded as the most complex aspect of human beings an organisation or it may also make you learn how to
that influences their behaviour in big way. It can be decrease output in the organisation. Secondly, as the
change must be relatively permanent therefore, it should association between an unconditioned stimulus and a
last for longer duration. This refers to the fact that at conditioned stimulus.
times; the change may be due to tiredness, alteration, The classical conditioning theory has been criticised
enthusiasm etc. which may be a temporary change. on the ground that it considers the learner to be a passive
Thirdly, as learning involves the changes taking element. According to this theory, the learner notices
place through knowledge or performance. The changes the connection between the unconditioned stimulus and
through expansion and maturation are not measured as the conditioned stimulus and forms an association. It
well-read behaviour. The experience or practice is also explains the simple reflexive behaviour. In most of
required for the purpose of learning to take place. The the organisations, people are actively involved in
experience can be attained through relations with the executing their behaviour and are not passive. It was
environment in the forms of observation, personal observed that behaviours were not elicited but are
exposure, repetition, etc. The strengthening of emitted. These behaviours are under workers control.
experience or practice enables proper and permanent (ii) Operant Conditioning: The learning theory
learning. of operant conditioning was given by Skinner. The
Q. 5. Distinguish between Classical Conditioning operant theory supports and believes that a learner’s
and Operant Conditioning. response is instrumental in producing a reinforcing
Ans. (i) Classical Conditioning: Classical conditi- stimulus. It signifies that the response that produces the
oning is an important learning theory where the learning reinforcement becomes stronger and the response that
that takes place through the connection between does not produce reinforcement becomes weaker.
unconditioned stimulus and conditioned stimulus. These Skinner explained the theory of operant
two stimuli are paired to bring out the desired response. conditioning with the help of simple box where liver
The mental stimulus that does not elicit the response is was fitted at its ends. The liver is like a switch that
conditioned stimuli. The response that is elicited by the operates as food-delivering mechanism. A hungry rat
conditioned stimulus can be termed as conditioned was placed inside at the box. It was observed earlier
response. The conditioned stimulus also starts eliciting that the rat is sitting idle in the box. Gradually, he starts
the response when it is paired with unconditioned exploring for food inside the box. While searching for
stimulus. In this process, a stimulus– response bond is food inside the box, he presses the liver (food -delivering
developed between a conditioned stimulus and a mechanism). A piece of food was released at the press
conditioned response. It is done through the repeated of a liver. The rat repeated the same act of pressing
linking of a conditioned stimulus with an unconditioned liver and food started coming in the box. He eats the
stimulus. food every time it cames in the box. In this case, the
A great researcher Pavlov conducted the delivery of food constitutes the reinforcement and
experiment on the dog by providing him with the food. reinforcement is dependent upon the operation of the
In this case, the food is the unconditioned stimuli and lever. The box was arranged in such a way that every
the salvation of the dog is the unconditioned response. response i.e., pressing of liver, may not release the food.
Pavlov used a bell as a form of conditioned stimuli and There were occasions when some response may release
when it rang, the dog never responded to it. Then he the food and some may not release. It was termed as
started pairing of conditioned stimuli (bell) with the partial reinforcement. The arrangements can be made
unconditioned stimuli (food). The food was presented in such a way that pressing of lever may result in a shock
to the dog and bell was also rung. It was repeated several to the rat. It was termed as negative reinforcement. The
times and after some time, the bell also elicited the same response that fulfils the desired need of the rat is termed
response as the food. In this case, the conditioned as positive reinforcement. At the same time, the response
stimulus (bell) elicited the response of salivation even may also lead to escape from the painful situation that
when the unconditioned stimulus (food) was not present. is known as negative reinforcement.
Pavlov rung the bell and dog salivated without the The operant theory of learning focuses on the fact
presentation of food. It was observed that the dog learnt that reinforcement follows a response. It means that
the ringing of the bell with the salivation. The theory of response becomes instrumental in achieving the
classical conditioning focuses on the building up an appropriate goal. It also suggested that the manipulation
of response and reinforcement may increase or reduce Ans. There are various theories of learning which
or can lead to the extinction of the behaviour. are used and applied for the modification of behaviour.
Q. 6. What is cognitive learning? The principle of operant conditioning is usually applied
Ans. Tolman proposed the theory of cognitive for the modification of employee’s behaviour in an
learning. According to this theory, learning takes place organisation. Jennifer and Gareth have acknowledged
by thinking about the problem, from insight of the various steps for modification of behaviour they are:
individual and from integrating different cues or pieces (i) Identify the Behaviour to be Learnt: The first
of information. step of behaviour modification requires identification
In learning process, the acquisition of information of the behaviour which is very essential for the
plays vital role and so cognitive theory advocates that organisation and its employees. The behaviour must be
the association between cognitive environmental clues specific and undoubtedly distinctly selected by the
and expectations leads to learning. management. In fact, there are particular determinants
Cognitive theory explains that learning takes place of presentation of the job. These determinants are very
as a result of stimulus–stimulus association. In this important to study the depth of the subject.
theory, two stimuli are repeated paired. The presentation (ii) Baseline Performance: The present status of
of one stimulus produce an image, idea or some process the behaviour is analyzed by the manager. Manager
representing the second stimulus, even if it is not studies the job performance of the salesmen. It is he
presented. When there is presence of more than two who finds out that the salesmen are able to sell less
stimuli, the whole stimuli may become associated. number of quantities than the standard decided by the
Organization of individual directs towards the organisation.
formation of cognition. Cognition is particularly related (iii) Functional Analysis: In functional analysis,
to the knowledge of spatial associations of matter in a a detailed analysis of existing behaviours and their
particular situation. Tolman concluded this theory with consequence is carried out. The manager evaluates the
the concept of the relationship between cue and impact of existing behaviour on the output of the
expectation which got toughen and thus formed a salesmen and finds that the output of salesmen is 25%
cognitive structure. The formation of cognitive structure less than the standard output. The manager evaluates
was the outcome of the knowledge.
the pre-behaviour circumstances, actual behaviour on
Q. 7. What do you mean by social learning?
the job and the consequences at great length. The pre-
Ans. Social Learning theory supports the fact that
behaviour circumstances such as lack of encouragement
group learns in the course of study and straight
or poor working environment, inadequate training etc. can
understanding. It highlights communication between the
be the reasons that have resulted in the poor performance
cognitive, behavioural and environmental determinants
of the salesmen.
of behaviour. Group learns through observations from
the behaviour of others in their group and individuals (iv) Intervention Strategy: In intervention
around them. They form those actions to be the guiding strategy, the manager devices the plan of action for
factors which might lead them towards favourable strengthening the desired behaviour and weakening of
outcomes. Similarly, they tend to avoid the behaviours the undesired behaviour. The manager chooses positive
which are not expected to give favourable outcomes.. reinforcement strategy like praise, appreciation, bonus,
While analyzing your behaviour, you will discover that additional benefit for the enrichment of output. It means
your behaviours are based on the behaviour noticed by that if the salesmen conform to the standard sale or closer
you of your parents, friends, teachers, movies, to it, they get appreciation, bonus or additional benefit.
television, achievers, successful persons, etc. All these So, they are reinforced to complete their work. On
observations tends you to imbibe their behaviour contrary, they are also discouraged for their poor
because their behaviour lead to positive consequences. performance.
Thus, we can say that social learning theory spotlights (v) Evaluation of Performance: The salesmen
on the learning consequences of behaviour and self performance gets evaluated by the manager. Manager
reinforcement. takes notice that the salesmen have started to perform
Q. 8. Enumerate the steps involved in the up to the standard sales norms. It delivers a sense of
modification of behaviour. realization to the manager that the introduction of
positive reinforcement makes the worker learn the time, he may not be harassed or criticized by his boss.
desired behaviour of the organisation. To maintain In such cases, harassment or criticism works as a
continuity in behaviour of salesmen, manager keeps on negative reinforcement that the employee learns to avoid
introducing positive reinforcement to the salesmen. The by completing his task and following the order of his
behaviour modification programme has been used in boss.
several organisations for improving the performance of Q. 10. Distinguish between fixed interval
the employees. Its managers prime requisite to carry schedule and variable interval schedule.
out the depth analysis of job and the factors that Ans. (i) Fixed Interval Schedule: In fixed interval
encourages performance of the job by the employees. schedule, reinforcement is produced after a fixed interval
The managers have to choose appropriate reinforcement of time. For example, salary of an employee is paid after
which encourages the workers to complete the work. It working for a fixed interval (week or a month). The
signifies the fact that the behaviour modification strategy technique of fixed interval schedule does not lead to
helps in improving the performance of the employees. high levels of performance because it does not provide
The behaviour modification programme has several incentive for higher performance.
limitations. The first limitation factor is that the (ii) Fixed Ratio Schedule: In fixed ratio schedule,
observable behaviour like good attendance, punctuality, the reinforcement is produced based on the number of
selling work etc. may be modified than the non- responses. It signifies that the person is expected to make
observable behaviour like decision-making strategy. The certain number of responses to get the reinforcement.
second limitation factor explains that the employees are The rewards are associated with the performance of the
trapped into the re-inforcement cycle. The employees person and it is given in a ratio of rewards to
tend to perform that behaviour which is reinforced. The performance. For example, in a piece wage rate system,
third limitation factor is the ethical issues involved in the payment is made based on each unit of output
modification of behaviour that are concerned with the produced by the employees. The employee is aware of
manipulation of the worker’s behaviour. The freedom the fact that he will gets more rewards if he produces
of employees can be curtailed by this manipulation. more number of units.
Despite all these limitations, positive reinforcement (iii) Variable Interval Schedule: In variable
strategies have been considered as an important means interval schedule, the person is reinforced after one
of behaviour modification programme. interval of time, then after another interval of time and
Q. 9. Distinguish between positive reinforcement so on. It signifies that the reinforcement is provided after
and negative reinforcement. a varying length of time which may be based on an
Ans. (i)Positive Reinforcement: To provide average. For example, if any employee gets his first
favourable outcome of a desired behaviour can be promotion after 3 years, second promotion after 4 years
termed as positive reinforcement. The person is and third promotion after one year. It means that he will
rewarded, if his behaviour matches the expectation of get promotions after varying interval of time.
the organisation. In such case, the favourable outcome (iv) Variable Ratio Schedule: In variable ratio
helps in repeating the behaviour of the person. If an schedule, reinforcement is produced after a variable
employee performs his job well, then his boss number of responses. It signifies that reinforcement is
appreciates him and as a result of this appreciation, he given after varying number of times. The reinforcement
will try to perform well so that he gets appreciation. It is provided on the basis of a ratio of number of responses
signifies to the fact that the positive reinforcement to rewards. The reward varies in relation to the response
reinforces you to do the job in the best possible way. of the person. For example, a salesperson may get a
(ii) Negative Reinforcement: In case of negative reward after tenth sale and the second reward after
reinforcement, an unlikable and disagreeable outcome fifteenth sale.
is introduced after performing a desired behaviour so Q. 11. What is behaviour modelling?
that the person avoids performing the behaviour. In such Ans. A person keeps analyzing or acting together
cases, the person learns to avoid unpleasant outcome with a numerous people in the environment. They
by behaving in a desired way. If an employee follows observe behaviour and try to copy those behaviours
the order of his boss and completes his work in allotted which have favourable result. The representation
depends on the contact of particular behaviour of the physique and physique qualities. According to
individual. For example, an organisation builds up the researches done in genetic engineering, heredity
training programme of sales person based on role model. determines physical, mental and emotional states of the
The sales persons with the good output are rewarded in individuals. The physical stature, gender, colour,
terms of extra bonus, praise, appreciation, recognition, intelligence etc. are influenced by heredity factors.
etc. The role of high performers is highlighted by the The environmental factors like family, society,
organisation. The other salesperson examines the culture etc. influence the behaviour of the individuals.
behaviours of high performer and tries to copy them to The process of children socialization starts in the family.
reach to their level and earn rewards from the In this process, the childrens are made to follow the
organisation. behavioural patterns of the family. The members of the
Q. 12. What is self-reinforcement? family force their children to conform to certain
Ans. It is the one of the important feature of social acceptable behaviour and avoid unacceptable behaviour.
learning theory. An individual investigates the effect of So, the childrens acquire their knowledge of acceptable
reinforcements on the behaviour and discover the as well as unacceptable behaviour from their families.
positive outcome, and further tries to learn positive Thereafter, childrens starts socializing with a number
outcome oriented behaviours. An individual may of social groups like friends, school, and other members
develop self-reinforcement technique for one’s own of the society. It helps them in acquiring socially
behaviour. acceptable behaviour and tries to avoid socially
They tend to start evaluating their goals and unacceptable behaviour as a result of their interaction
strengthen themselves by achieving the desired goal. with these groups. The culture in which children are
The progress of self-reinforcement approach is the most brought up determines factors like decision-making
difficult assignment for an organisation. It offers styles, attitudes, independence v/s dependence,
freedom and control to the employees to administer their soberness v/s aggression, competition v/s cooperation
behaviour. It also enables a person to recognize their etc. in them. Children learn norms, values and attitudes
ability to complete the job. which are prescribed by the culture by being member
TERMINAL QUESTIONS of a particular culture. It forces individuals to behave in
conformity to the cultural norms that are established by
Q. 1. What is individual behaviour? Discuss the society. It can be concluded that society and culture
various factors influencing the individual difference. apply greater influence on the behaviour of individuals.
Ans. The response made by an individual can be According to John Ivancevich and Michael
referred to as behaviour. The response could be the result Mattson, the major factors that influence individual
of the influence of external factors. The external factors differences in behavioural patterns are demographic
can be termed as stimulus. The response can be termed factors, abilities and skills, perception, attitudes and
as action taken by the individual. There are factors like personality. Let us discuss them and they are as follows:
heredity and environment that determines the behaviour (i) Demographic Factors: The demographic
of an individual. According to psychologists, heredity factors are socio-economic background, education,
determines the nature of the person while environment nationality, race, age, sex, etc. Organisations prefer
what a person can become. The heredity and persons that belong to good socio-economic
environment factors determine the behaviour of an background, well educated, young etc. as they are
individual. The characteristics transmitted by parents believed to be performing better than the others. The
to the next generation can be referred to as heredity. It young and dynamic professionals that have good
is through genes that human beings acquire biological academic background and effective communication
characteristics that control the development of tissues skills are always in great demand. The study of
and organs of the body. The biological characteristics demographic factors is significant as it helps managers
are determined at the time of the conception. Its the to pick the suitable candidate for a particular job.
parents that influence heredity characteristics through (ii) Abilities and Skills: The physical capacity of
the transmission of genes. It is through genetic an individual to do something can be termed as ability.
transmission that children acquire certain features of Skill can be defined as the ability to act in a way that
allows a person to perform well. The individual from their employees and such behaviours can be
behaviour and performance is highly influenced by discovered through observation, learning, exposure,
ability and skills. A person can perform well in the training, etc.
organisation if his abilities and skills are matched with Q. 2. Do you think that learning results is change
the job requirement. The managers play vital role in in behaviour? Discuss and state how does learning
matching the abilities and skills of the employees with enhance the performance?
the particular job requirement. Ans. Learning experiences of various the managers
(iii) Perception: The cognitive process meant for has shown a major change in the cognitive areas such
interpreting the environmental stimuli in a meaningful as strategic overview, thinking style, action orientation,
way is referred to as perception. Every individual on reflection, personal style, self awareness and the way
the basis of his/her reference can organize and interpret of dealing with others. These changes often take place
environmental stimuli. There are many factors that as a result of feedback from peers and subordinates.
influence the perception of an individual. The study of This learning reproduces the importance of knowledge
perception plays important role for the managers. It is to develop the group effectively.
important for mangers to create the favourable work There are many concrete steps which are in use by
environment so that employees perceive them in most various corporations who are heading towards the
favourable way. The employees are likely to perform effective and better results. It is only possible through
better if they are going to perceive it in a positive way. concrete learning process within the organisation
(iv) Attitude: According to psychologists, attitude through superiors and the subordinates. Almost all the
can be defined as a tendency to respond favourably or good organizations have inevitably formulated,
unfavourably to certain objects, persons or situations. reformulate and achieve its image and developed the
The factors such as family, society, culture, peers and in-house organisation. It is believed that good
organisational factors influence the formation of attitude. organizations have been able to control their in-house
The managers in an organisation need to study the work and objectives and goals irrespective of any
variables related to job as to create the work environment hurdles from the external forces.
in a favourable way that employees are tempted to form They are paying more attention to achieve goals,
learn, adapt and apply best methods and policies. They
a positive attitude towards their respective jobs. The
also try to take conscious steps to make sure that the
employees can perform better in the organisation if they
ideas and strategies are very well managed and placed
form a positive attitude.
to get the desired output.
(v) Personality: Personality can be defined as the
It is one of the best strategies to improve the overall
study of the characteristics and distinctive traits of an
functioning of the organization. These methods and
individual, the inter-relations between them and the way
policies also enable to learn the most significant way of
in which a person responds and adjusts to other people obtaining new facts and expertise.
and situations. The several factors that influence the Learning is defined as a permanent change in
personality of an individual are heredity, family, society, behaviour, which takes place as a consequence of
culture and situation. It implies to the fact that knowledge or practice. Therefore, we can say that
individuals differ in their manners while responding to learning is a change in behaviour. This change may be
the organizational environment. Personality can be favourable or unfavourable.
regarded as the most complex aspect of human beings Learning will help you to increase your output in
that influences their behaviour in big way. It can be an organisation or it may also make you learn how to
concluded that the study of personality traits offers an decrease output in the organisation. Secondly, as the
opportunity to understand the individuals. It helps them change must be relatively permanent therefore, it should
properly in directing their effort and motivating them last for longer duration. This refers to the fact that at
for the accomplishment of the organisational goal. It times; the change may be due to tiredness, alteration,
refers to the fact that different environmental factors enthusiasm etc. which may be a temporary change.
may generate different responses. The study of these Thirdly, as learning involves the changes taking
responses is very important for the organisation. Every place through knowledge or performance. The changes
organisation demands a particular type of behaviour through expansion and maturation are not measured as
well-read behaviour. The experience or practice is So, they are reinforced to complete their work. On
required for the purpose of learning to take place. The contrary, they are also discouraged for their poor
experience can be attained through relations with the performance.
environment in the forms of observation, personal (v) Evaluation of Performance: The salesmen
exposure, repetition, etc. The strengthening of performance gets evaluated by the manager. Manager
experience or practice enables proper and permanent takes notice that the salesmen have started to perform
learning. up to the standard sales norms. It delivers a sense of
Q. 3. Describe the factors which influence realization to the manager that the introduction of
employee’s behaviour and their performance. positive reinforcement makes the worker learn the
Ans. There are various theories of learning which desired behaviour of the organisation. To maintain
are used and applied for the modification of behaviour. continuity in behaviour of salesmen, manager keeps on
The principle of operant conditioning is usually applied introducing positive reinforcement to the salesmen. The
for the modification of employee’s behaviour in an behaviour modification programme has been used in
organisation. Jennifer and Gareth have acknowledged several organisations for improving the performance of
various steps for modification of behaviour they are: the employees. It is manager’s prime requisite to carry
(i) Identify the Behaviour to be Learnt: The first out the depth analysis of job and the factors that
step of behaviour modification requires identification encourages performance of the job by the employees.
of the behaviour which is very essential for the The managers have to choose appropriate reinforcement
organisation and its employees. The behaviour must be which encourages the workers to complete the work. It
specific and undoubtedly distinctly selected by the signifies the fact that the behaviour modification strategy
management. In fact, there are particular determinants helps in improving the performance of the employees.
of presentation of the job. These determinants are very The behaviour modification programme has several
important to study the depth of the subject. limitations. The first limitation factor is that the
(ii) Baseline Performance: The present status of observable behaviour like good attendance, punctuality,
the behaviour is analyzed by the manager. Manager selling work etc. may be modified than the non-
studies the job performance of the salesmen. It is he observable behaviour like decision-making strategy. The
who finds out that the salesmen are able to sell less second limitation factor explains that the employees are
number of quantities than the standard decided by the trapped into the re-inforcement cycle. The employees
organisation. tend to perform that behaviour which is reinforced. The
(iii) Functional Analysis: In functional analysis, third limitation factor is the ethical issues involved in
a detailed analysis of existing behaviours and their modification of behaviour that are concerned with the
consequence is carried out. The manager evaluates the manipulation of the worker’s behaviour. The freedom
impact of existing behaviour on the output of the of employees can be curtailed by this manipulation.
salesmen and finds that the output of salesmen is 25% Despite all these limitations, positive reinforcement
less than the standard output. The manager evaluates strategies have been considered as an important means
the pre-behaviour circumstances, actual behaviour on of behaviour modification programme.
the job and the consequences at great length. The pre- Q. 4. Critically examine the classical
behaviour circumstances such as lack of encouragement conditioning theory of learning.
or poor working environment, inadequate training etc. can Ans. Classical conditioning is an important learning
be the reasons that have resulted in the poor performance theory where the learning takes place through the
of the salesmen. connection between unconditioned stimulus and
(iv) Intervention Strategy: In intervention conditioned stimulus. These two stimuli are paired to
strategy, the manager devices the plan of action for bring out the desired response. The mental stimulus that
strengthening the desired behaviour and weakening of does not elicit the response is conditioned stimuli. The
the undesired behaviour. The manager chooses positive response that is elicited by the conditioned stimulus can
reinforcement strategy like praise, appreciation, bonus, be termed as conditioned response. The conditioned
additional benefit for the enrichment of output. It means stimulus also starts eliciting the response when it is
that if the salesmen conform to the standard sale or closer paired with unconditioned stimulus. In this process, a
to it, they get appreciation, bonus or additional benefit. stimulus response bond is developed between a
conditioned stimulus and a conditioned response. It is food inside the box, he presses the liver (food -delivering
done through the repeated linking of a conditioned mechanism). A piece of food was released at the press
stimulus with an unconditioned stimulus. of a liver. The rat repeated the same act of pressing
A great researcher Pavlov conducted the liver and food started coming in the box. He eats the
experiment on the dog by providing him with the food. food every time it came in the box. In this case, the
In this case, the food is the unconditioned stimuli and delivery of food constitutes the reinforcement and
the salvation of the dog is the unconditioned response. reinforcement is dependent upon the operation of the
Pavlov used a bell as a form of conditioned stimuli and lever. The box was arranged in such a way that every
when it rang, the dog never responded to it. Then he response i.e., pressing of liver, may not release the food.
started pairing of conditioned stimuli (bell) with the There were occasions when some response may release
unconditioned stimuli (food). The food was presented the food and some may not release. It was termed as
to the dog and bell was also rung. It was repeated several partial reinforcement. The arrangements can be made
times and after some time, the bell also elicited the same in such a way that pressing of lever may result in a shock
response as the food. In this case, the conditioned to the rat. It was termed as negative reinforcement. The
stimulus (bell) elicited the response of salivation even response that fulfils the desired need of the rat is termed
when the unconditioned stimulus (food) was not present. as positive reinforcement. At the same time, the response
Pavlov rung the bell and dog salivated without the may also lead to escape from the painful situation that
presentation of food. It was observed that the dog learnt is known as negative reinforcement.
the ringing of the bell with the salivation. The theory of The operant theory of learning focuses on the fact
classical conditioning focuses on the building up an that reinforcement follows a response. It means that
association between an unconditioned stimulus and a response becomes instrumental in achieving the
conditioned stimulus. appropriate goal. It also suggested that the manipulation
The classical conditioning theory has been criticised of response and reinforcement may increase or reduce
on the ground that it considers the learner to be a passive or can lead to the extinction of the behaviour.
element. According to this theory, the learner notices Classical Conditioning
the connection between the unconditioned stimulus and Classical conditioning is an important learning
the conditioned stimulus and forms an association. It theory where the learning that takes place through the
also explains the simple reflexive behaviour. In most of connection between unconditioned stimulus and
the organisation, people are actively involved in conditioned stimulus. These two stimuli are paired to
executing their behaviour and are not passive. It was bring out the desired response. The mental stimulus that
observed that behaviours were not elicited but are does not elicit the response is conditioned stimuli. The
emitted. These behaviours are under workers control. response that is elicited by the conditioned stimulus can
Q. 5. Discuss the operant conditioning theory be termed as conditioned response. The conditioned
of learning. How does it differ with the classical stimulus also starts eliciting the response when it is
conditioning theory of learning? paired with unconditioned stimulus. In this process, a
Ans. Operant Conditioning theory of learning was stimulus–response bond is developed between a
given by Skinner. The operant theory supports and conditioned stimulus and a conditioned response. It is
believes that a learner’s response is instrumental in done through the repeated linking of a conditioned
producing a reinforcing stimulus. It signifies that the stimulus with an unconditioned stimulus.
response that produces the reinforcement becomes The classical conditioning theory has been criticised
stronger and the response that does not produce on the ground that it considers the learner to be a passive
reinforcement becomes weaker. element. According to this theory, the learner notices
Skinner explained the theory of operant the connection between the unconditioned stimulus and
conditioning with the help of simple box where liver the conditioned stimulus and forms an association. It
was fitted at its ends. The liver is like a switch that also explains the simple reflexive behaviour. In most of
operates as food-delivering mechanism. A hungry rat the organisations, people are actively involved in
was placed inside at the box. It was observed earlier executing their behaviour and are not passive. It was
that the rat is sitting idle in the box. Gradually, he starts observed that behaviours were not elicited but are
exploring for food inside the box. While searching for emitted. These behaviours are under workers control.
Q. 6. Describe the strategies for behavioural takes notice that the salesmen have started to perform
change. Do you think that these strategies are useful up to the standard sales norms. It delivers a sense of
for the organisation? Discuss. realization to the manager that the introduction of
Ans. There are various theories of learning which positive reinforcement makes the worker learn the
are used and applied for the modification of behaviour. desired behaviour of the organisation. To maintain
The principle of operant conditioning is usually applied continuity in behaviour of salesmen, manager keeps on
for the modification of employee’s behaviour in an introducing positive reinforcement to the salesmen. The
behaviour modification programme has been used in
organisation. Jennifer and Gareth have acknowledged
several organisations for improving the performance of
various steps for modification of behaviour they are:
the employees. Its managers prime requisite to carry
(i) Identify the Behaviour to be Learnt: The first
out the depth analysis of job and the factors that
step of behaviour modification requires identification encourages performance of the job by the employees.
of the behaviour which is very essential for the The managers have to choose appropriate reinforcement
organisation and its employees. The behaviour must be which encourages the workers to complete the work. It
specific and undoubtedly distinctly selected by the signifies the fact that the behaviour modification strategy
management. In fact, there are particular determinants helps in improving the performance of the employees.
of presentation of the job. These determinants are very The behaviour modification programme has several
important to study the depth of the subject. limitations. The first limitation factor is that the
(ii) Baseline Performance: The present status of observable behaviour like good attendance, punctuality,
the behaviour is analyzed by the manager. Manager selling work etc. may be modified than the non-
studies the job performance of the salesmen. It is he observable behaviour like decision-making strategy. The
who finds out that the salesmen are able to sell less second limitation factor explains that the employees are
number of quantities than the standard decided by the trapped into the re-inforcement cycle. The employees
organisation. tend to perform that behaviour which is reinforced. The
(iii) Functional Analysis: In functional analysis, third limitation factor is the ethical issues involved in
a detailed analysis of existing behaviours and their modification of behaviour that are concerned with the
consequence is carried out. The manager evaluates the manipulation of the worker’s behaviour. The freedom
impact of existing behaviour on the output of the of employees can be curtailed by this manipulation.
salesmen and finds that the output of salesmen is 25% Despite all these limitations, positive reinforcement
less than the standard output. The manager evaluates strategies have been considered as an important means
the pre-behaviour circumstances, actual behaviour on of behaviour modification programme.
the job and the consequences at great length. The pre- Q. 7. Write notes on:
behaviour circumstances such as lack of encouragement (i) Role of Reinforcement
or poor working environment, inadequate training etc. (ii) Schedule of Reinforcement
can be the reasons that have resulted in the poor Ans. (i) Role of Reinforcement: The theory of
performance of the salesmen. law of effect states that the repetition of behaviour
(iv) Intervention Strategy: In intervention depends on its consequences. This refers to the fact that
strategy, the manager devices the plan of action for if the behaviour is followed by satisfying results, the
strengthening the desired behaviour and weakening of behaviour tends to be repetitive. On the other hand, if
the undesired behaviour. The manager chooses positive behaviour gives unpleasant results then that behaviour
reinforcement strategy like praise, appreciation, bonus, should be preferably avoided. Therefore, it should be
additional benefit for the enrichment of output. It means clear that reinforcement plays an important role in
that if the salesmen conform to the standard sale or closer strengthening or weakening of the behaviour. It can be
to it, they get appreciation, bonus, or additional benefit. better understood by evaluating various types of
So, they are reinforced to complete their work. On reinforcement they are positive and negative
contrary, they are also discouraged for their poor reinforcement.
performance. Positive Reinforcement: To provide favourable
(v) Evaluation of Performance: The salesmen’s outcome of a desired behaviour can be termed as
performance gets evaluated by the manager. Manager positive reinforcement. The person is rewarded, if his
behaviour matches the expectation of the organisation. by completing his task and following the order of his
In such case, the favourable outcome helps in repeating boss.
the behaviour of the person. If an employee performs (ii) Schedule of Reinforcement: Reinforcement
his job well, then his boss appreciates him and as a result strengthens or weakens the behaviour of individuals
of this appreciation, he will try to perform well so that depending upon the various situations. When all
he gets appreciation. It signifies to the fact that the reactions are reinforced, it is called continuous
positive reinforcement reinforces you to do the job in reinforcement. When some reactions are reinforced, it
the best possible way. is called partial reinforcement.
Negative Reinforcement: In case of negative The schedule used for reinforcing a reaction of a
reinforcement, an unlikable and disagreeable outcome person or group is known as the schedule of
is introduced after performing a desired behaviour so reinforcement. The schedule of reinforcement is very
that the person avoids performing the behaviour. In such helpful for managers to reward his subordinates for
cases, the person learns to avoid unpleasant outcome improving their performance. The process of providing
by behaving in a desired way. If an employee follows reinforcement after every 5th response is termed as ratio
the order of his boss and completes his work in allotted schedule. When the reinforcement is provided after
time, he may not be harassed or criticized by his boss. every 5th minute; this is termed as interval schedule.
In such cases, harassment or criticism works as a
■■
negative reinforcement that the employee learns to avoid
54
Perception
6
INTRODUCTION from the sense organs in order to give the feedback to
the environment around.
It is a process by which individuals organize and Many others have also defined perception which
interpret their sensory impressions. Human sensory concludes the fact that functions of the workers are duly
organs like ears, eyes, nose, tongue and skin generate affected by three classes of variables – the objects or
various impressions. In general terms, perception is a events being perceived, the environment in which
term by which a person looks at the world and emotes perception occurs and the individual does the perceiving.
out his feelings for a particular situation. Perception Perception is very important as it enables the
helps in understanding perciever’s own mindset and also organization to adapt to a complex and ever changing
helps in understanding human behaviour in the factors through perceptual constancies. It helps in
organization. The barriers to perception are evaluating various factors of organization such as size,
stereotyping, halo-effect, similar to the effect or shape, functions, targets, location, time etc., which gives
projection, selective perceptions, distribution and a concrete idea about the functioning of an organization.
contrast effects. This process includes:
■ Perceptual inputs of stimuli
SUMMARY
■ Perceptual Mechanism
Perception is the process by which individuals ■ Perceptual Output
organize and interpret their sensory impressions in order ■ Pattern of Behaviour.
to give relevance and significance to our environment. It is influenced by three set of factors and they are:
Human beings are blessed with sensory organs such (i) Factors in the perceiver: These are the factors
as ears, eyes, nose, tongue and skin. Through these related to self concept, attitudes, motives, internal
sensory organs we generate various impressions and experiences and expectations.
expressions. These actions allow our mind to take due (ii) Factors in the target: It includes physical
attention on the selective ones which have importance appearance, verbal and non-verbal communication,
and significance in our life. This is called perception. status, occupation, personal characteristics, novelty and
In a nutshell, perception is the process by which motion of targets, sounds, size, background and
individuals organize and interpret their sensory proximity of the target.
impressions in order to give relevance and significance (iii) Factors in the situation: It includes social
to our environment. context, organizational role, work setting, location and
The dictionary meaning of the word “perceive” time.
means is to take in mentally, to become aware through Perception helps in understanding of human
the senses. It is defined as the way a person looks at the behaviour in the organization. It also helps in
world and his feelings on a particular situation. understanding perceiver’s own mindset and tendency
Baron defines perception as the process where in in judging others may become the barriers to accurate
we select, organize, and interpret various inputs from perception. The important barriers to accurate
our sense organs. perception are stereotyping, halo-effect, similar to the
Robbins defines perception as a process in which effect or projection, selective perceptions, distribution
people organize and interpret their expressions arising and contrast effects.
PERCEPTION / 55
Attributes is a significant phenomenon for affected by three classes of variables – the objects or
understanding perception. This theory describes the events being perceived, the environment in which
external or internal behaviour in an individual. Kelly’s perception occurs and the individual does the perceiving.
theory of casual attributes states that we need to focus Q. 2. What are uses and misuses of perception?
on three types of information namely distinctiveness, Ans. Perception plays a very important role in the
consensus and consistency, in order to determine the organizational behaviour. It refers to the human
internal and external behaviour of an individual. It has behaviour at work, and perception is one of the important
proved important concept for managers and its main elements in determining the behaviour of the same.
managerial activities include: advertising, maintaining Every individual behaves on the basis of the perception
safety, managing impression, building corporate image, they gather from the situations in which they are and
managing performance, evaluating performance, how their senses are reacting to them.
judging employee’s loyalty, self-assessment and The uses of perception are as follows:
development and building relationship. (i) It helps a person to adapt the environment
Techniques involved in enhancing or encouraging round and tries to adjust according to the
perceptional skills are: changes in the environment of the
■ Giving and Receiving Feedback organization.
■ Having Empathy (ii) There may be variation in the sensory
■ Having Positive Attitudes information registered in the mind of an
■ Enhancing self-concept individual but the responses are according
■ Avoiding Common Biases to the need of the hour and not the feelings
■ Communication and Correct use of they have in their mind.
Attribution. (iii) The perceived size of a situation or object
CHECK YOUR PROGRESS remains the same but the distance can vary.
(iv) The gap between the sensations and
Q. 1. What is your understanding of the term perceptions helps to have a clear benefit as
perception? desired.
Ans. Human beings are blessed with sensory organs The misuses of the perception are:
such as ears, eyes, nose, tongue and skin. Through these (i) It may give false interpretations of sensory
sensory organs we generate various impressions and information.
expressions. These actions allow our mind to take due (ii) Illusions can draw wrong conclusions and
attention on the selective ones only which has thus hampers the quality of work.
importance and significance in our life. This is called Q. 3. What are the five main characteristics of a
perception. In a nutshell, perception is the process by person who can be called as matured perceiver?
which individuals organize and interpret their sensory Ans. The main characteristics that a person must
impressions in order to give relevance and significance possess to be called as a matured perceiver are:
to our environment. (i) Maintaining Safety: The concept of perception
The dictionary meaning of the word “perceive” that works for creating awareness for prospective
means is to take in mentally, to become aware through customers also draws proper attention towards message
the senses. It is defined as the way a person looks at the of warning, through proper design of content and proper
world and his feelings on a particular situation. display of message. The message displayed should
Baron defines perception as the process where in include signal word, hazard statement, consequences,
we select, organize, and interpret various inputs from and instructions. The characteristics of messages should
our sense organs. have characteristics such as attention getting,
Robbins defines perception as a process in which comprehensible, concise and durable.
people organize and interpret their expressions arising (ii) Managing Impression: It is important to create
from the sense organs in order to give the feedback to favourable impression of oneself to others. It plays
the environment around. significant role when one is facing employment
Many others have also defined perception which interview. If you create a positive impression in the
concludes the fact that functions of the workers are duly beginning of facing interview then it will surely help
you to have lead over others. If you don’t seek help major managerial activities where concept of perception
from experts in the beginning to create a positive can be applied they are:
impression then it is likely to be very difficult to turn (i) Advertising: Advertisers use the theory of
tables in the later part of the interview. So it is very perception to draw attention of the probable consumers.
important to create positive first impression. According According to the theory of perception, selective attention
to evidences, it has been concluded that interviewers enables to maximize information gained by reducing
makes perpetual judgements that are often inaccurate. assumption from inappropriate sensory sources.
It is observed that mature experts or evaluators do not Therefore, advertisements are designed with respect to
give undue importance of first impression. The concept shape, size and brightness, so that they are able to catch
of impression management is done in various the attention of the expected consumers.
organizational activities. The efforts done at impression (ii) Maintaining Safety: The theory of perception
management may improve the quality of social is used to attract people towards their by giving adequate
functioning, overdoing of such actions may occur at attention towards message of warning, through proper
the cost of information accuracy and high quality design of content and proper display of the message.
decision-making. The content of the message should have signal word,
(iii) Building Corporate Image: Like individuals, hazard statement, consequences and instructions.
organizations also attempt to manage positive Message should have distinctiveness towards the
impression and it is termed as corporate image. attention getting, comprehensible, concise and durable.
Organizations get benefits by creating positive
(iii) Managing Impression: Every businessman
impression as individuals do to get extra lead in their
tries to develop a constructive impression of self in the
career.
mind of others. A job seeker always tries to impress the
(iv) Managing Performance: According to many
employer by his abilities and knowledge by presenting
theories, people starts behaving as you expect them to
the best of his achievements to judge his suitability for
behave and results in expectations becoming reality.
the job. A mature expert will be able to evaluate the
The concept of Self-fulfilling Prophecy or Pygmalion
abilities not only with the first impression but by
Effect characterizes that behaviour of any person can
evaluating the overall knowledge and skill that a
be determined by their expectations. According to Self-
fulfilling Prophecy, when one person inaccurately candidate possess.
perceives a second person the resulting expectations Impression management is prepared by the superiors
cause the second person to behave in ways consistent through various organisational activities. Whereas, hard
with the original perception. It sends you clear messages work is evaluated at impression management to improve
that if you want people to achieve high performance, the quality of social functioning, overdoing of such
do expect high performance of them and let them know actions may occur at the cost of information accuracy
your level of expectations. The substandard and high quality decision-making.
performance results from substandard perceptions. (iv) Building Corporate Image: Not only persons,
(v) Judging Employee’s Loyalty: Person’s loyalty but organisations makes a well planned attempt to
depends upon the perception of the perceiver. The manage positive impression. This is called corporate
perception of any person can vary as some might think image. Organisations, as well as persons related to them
him to be very loyal while others may think him as always try to have benefit through positive impressions.
conformist. There might be situation when a whistle (v) Managing Performance: It refers to the fact
blower who indulges in unethical acts may be perceived that a person or a group behaves the way you expect
as ethical or courageous while other may consider him from them due to the attitude you have towards them
as trouble maker for the organization. and, thus, your expectations are turned to reality.
Q. 4. How can the concept of perception be Concept of Self-fulfilling predictions describes the fact
gainfully used in managerial activities? that people’s expectations are established through their
Ans. Perception is a significant concept for behaviour. Self-fulfilling prophecy refers to the fact that
managers. There are many circumstances where proper when one person mistakenly perceives a second person
knowledge of perception and its various uses enables it affects the behaviour of the other dealing person having
the superiors to take quality decision. There are some his own perception. Therefore, it states the fact that if
PERCEPTION / 57
you expect persons to achieve high performance, it is relationship within managerial group, within employees,
better to expect high performance of them, and give and between managers and junior employees.
them the opportunity to recognize your level of
expectations. Substandard perceptions would be liable TERMINAL QUESTIONS
to produce substandard performance. Q. 1. What do you mean by perception? What
(vi) Evaluating Performance: It refers to the fact are the uses of studying about perception?
that superiors evaluate the work of their subordinates. Ans. Human beings are blessed with sensory organs
The basis of evaluation is usually objective and such as ears, eyes, nose, tongue and skin. Through these
subjective both. Perception mainly plays its role when sensory organs we generate various impressions and
act is evaluated on the basis of subjective criteria. Future expressions. These actions allow our mind to take due
line of business of a manager depends greatly on attention on the selective ones only which has
performance evaluation, therefore, perception plays
importance and significance in our life. This is called
important role to move forward in career and getting
perception. In a nutshell, perception is the process by
right deployment. The main concern point is that if we
which individuals organize and interpret their sensory
are evaluating a person merely on one’s perception,
impressions in order to give relevance and significance
face the base of your own perception and ensure that
to our environment.
your perception is as far as possible free of any partiality.
The dictionary meaning of the word “perceive”
(vii) Judging Employees’ Loyalty: Perception
means is to take in mentally, to become aware through
determines the intensity of loyalty of a perceiver. Those
the senses. It is defined as the way a person looks at the
who concentrate more on the goals and objectives of
world and his feelings on a particular situation.
the organization are termed as loyal and faithful.
Baron defines perception as the process where in
(viii) Self-Assessment and Development: The
we select, organize, and interpret various inputs from
values, attitude, and perception, control each other. For
our sense organs.
improvement of self as a manager, you should have your
Robbins defines perception as a process in which
correct self-assessment representation, cleverly verified
through various sources. Several tests should be people organize and interpret their expressions arising
conducted to verify regarding what should be done and from the sense organs in order to give the feedback to
when it should be accomplished. There are various the environment around.
questions to be answered before assessing a person they Many others have also defined perception which
are: concludes the fact that functions of the workers are duly
■ Are you perceived as person having positive affected by three classes of variables – the objects or
attitude or negative attitude? events being perceived, the environment in which
■ Are you perceived as aggressive or as perception occurs and the individual does the perceiving.
submissive or as a balanced assertive? The uses of perception are as follows:
■ Are you perceived as a person who respects (i) It helps a person to adapt the environment
others’ views? round and tries to adjust according to the
■ Are you perceived as a person having own changes in the environment of the
pivot yet having required flexibility? organization.
■ Are you perceived as a person respecting (ii) There may be variation in the sensory
high effort or as a happy-go-lucky? information registered in the mind of an
Therefore, concept of perception is a sturdy tool individual but the responses are according
for self-development. If there is similarity between how to the need of the hour and not the feelings
you perceive yourself, and how others perceive you, it they have in their mind.
is a signal that you are heading towards effectiveness (iii) The perceived size of a situation or object
and efficiency and vice versa. remains the same but the distance can vary.
(ix) Building Relationship: Constructive (iv) The gap between the sensations and
perception enables the superiors to build successful perceptions helps to have a clear benefit as
communication and trust, leading to high performing desired.
Q. 2. What are uses and misuses of perception? (iii) Perceptual output: It is the third stage of
Ans. Perception plays a very important role in the perception. These outputs are derived from the process
organizational behaviour. It refers to the human of perceptual throughputs. It includes an individual’s
behaviour at work, and perception is one of the important attitudes, opinions, feelings, values and actions.
elements in determining the behaviour of the same. Perceptual errors can adversely affect the outputs
Every individual behaves on the basis of the perception therefore, managers should enhance the perceptual skills
they gather from the situations in which they are and in their personality to get the positive results.
how their senses are reacting to them. (iv) Pattern of behaviour: It is the fourth stage of
The uses of perception are as follows: perception. It says that behaviour is the resultant factor
(i) It helps a person to adapt the environment of perception. The behaviour of a perceiver enables in
round and tries to adjust according to the generating responses which give rise to a new set of
changes in the environment of the inputs.
organization. The factors which influence perception are:
(ii) There may be variation in the sensory (a) Factors in the perceiver: It includes self-
information registered in the mind of an concept, attitudes, motives, interests, experience and
individual but the responses are according expectations of the perceiver.
to the need of the hour and not the feelings (b) Factors in the target: It includes physical
appearance, verbal and non-verbal communication,
they have in their mind.
status, occupations, personal characteristics, novelty of
(iii) The perceived size of a situation or object
the target, motion of the target, sounds of the target,
remains the same but the distance can vary.
background of the target and proximity of the target.
(iv) The gap between the sensations and
(c) Factors in the situation: It includes social
perceptions helps to have a clear benefit as
context, organizational role, work setting, location of
desired.
event and time.
The misuses of the perception are: All these factors help in determining the perceptions
(i) It may give false interpretations of sensory about others.
information. Q. 4. What are the barriers to accurate
(ii) Illusions can draw wrong conclusions and perception? How those barriers can be removed?
thus hampers the quality of work. Ans. Barriers to accurate perception are:
Q. 3. Explain process of perception. What are (i) Stereotyping: It means to judge someone
the factors those influence perception? according to the perception of the group to which an
Ans. Perception is the process by which individuals individual belongs. It helps to simplify the complexities
organize and interpret their sensory impressions in order around which leads to negative or wrong conclusions.
to give relevance and significance to our environment. (ii) Halo-effect: It means to draw a general
This process includes: impression about a person on the basis of one of the
(i) Perceptual inputs of stimuli: It is the first stage characteristics.
of perception which expresses perceptual inputs which (iii) Similar to me effect or projection: It is one
encompasses all stimuli which exists in our environment of the common type of perception which includes the
including information, objects, events, people, etc. The tendency for people to perceive more favourably to
perceiver has these inputs. others who are similar to themselves than to those who
(ii) Perceptual mechanism: It is the second stage are different of dissimilar to them.
of perception which includes perceptual mechanism. It (iv) Selective perceptions: It means that people
deals with the transformation of perceptual inputs to interpret selectively about their interests, background,
outputs. It has three processes namely selection, experience and attitudes.
organization and interpretation of stimuli which are in (v) Distortion: It means to distort the things which
the environment. Although every individual go through we really watch or try to avoid what actually exists after
these steps but they vary in their methodology of going through the relevant data which is posing a threat
selection, organizing and interpreting the stimuli in their to the self-concept.
own way which is based on their personality, pre- (vi) Contrast effects: It means to evaluate a
dispositions and biases. person’s qualities which are affected due to the
PERCEPTION / 59
comparisons with others who have recently encounter distinctiveness is high. If a particular behaviour is
the higher rank or lower rank with the same unusual, an observer is likely to give the behaviour an
characteristics. external attribution. If the action is not unusual, it will
In order to overcome the barriers of perception it be perhaps judged as internal.
is advisable to determine the behaviour of others which (ii) Consensus: It is the level to which new group
stems from the internal as well as external causes. It behaves in the same way as the person we are judging.
can be solved by focussing three types of information If others perform similar behaviour, consensus is
they are distinctiveness, consensus and consistency. measured, high; if they do not, consensus is considered
Distinctiveness means how a person behaves in the low. If consensus were high, it would be expected to
same manner in context with the others behaviour. If give external attribution and if consensus is low, it will
the behaviour of one is same in all the situations then tend to give internal attribution.
distinctiveness is low and if one behaves differently in (iii) Consistency: It is inclination to react the same
different situations the distinctiveness is high.
way from time-to-time. Consistency can be high or low.
Consensus means the extent to which one behaves
The more consistent the behaviour, the more the
in the same manner as the person we are judging. If the
observer is prone to attribute it to internal causes and
behaviour of others is similar then consensus is high
vice-versa. While judging about the behaviour of new
and if it is not then consensus is considered low. High
group, we have inclination to underestimate the
consensus is expected to give external attribution and
low consensus tends to give internal attribution. influence of external factors and overestimate the
Consistency refers to the tendency to response in influence of internal factors, in case of less than optimum
the same way for a particular period of time. It can also performance by the others. This is called the
be high or low. If the behaviour is more consistent then fundamental attribution error. There is also a propensity
the observer is more inclined to attribute to the internal for persons to attribute their own success towards
causes and vice versa. internal factors such as ability or effort while putting
That is how we can evaluate the barriers and the responsibility for failure on external factors such as
overcome them in the most effective way. luck. This is called the self-serving partiality.
Q. 5. Explain Theory of Attribution. Q. 6. Describe managerial situations in which
Ans. Attribution is a significant theory for concept of perception can be applied.
understanding perception, because it is connected to Ans. Perception is a significant concept for
judging the causes of others’ behaviour. An inexact managers. There are many circumstances where proper
attribution may guide to inexact perception. Our knowledge of perception and its various uses enables
perceptions of what is taking place in the surroundings the superiors to take quality decision. There are some
depend very much on our attributions. Attribution theory major managerial activities where concept of perception
explains that when persons examines behaviour, they can be applied they are:
endeavour to establish whether it is caused due to (i) Advertising: Advertisers use the theory of
internally or externally factors. Internally caused perception to draw attention of the probable consumers.
behaviour is when persons are believed to be under the According to the theory of perception, selective attention
individual control of the person. Externally caused enables to maximize information gained by reducing
behaviour is seen while ensuing from outside causes assumption from inappropriate sensory sources.
over which the individual has no control.
Therefore, advertisements are designed with respect to
Kelly’s Theory of Causal Attribution explains that
shape, size and brightness, so that they are able to catch
in determining about others’ behaviour curtails mainly
the attention of the expected consumers.
from internal or external causes, we spotlight on three
kinds of information: (ii) Maintaining Safety: The theory of perception
(i) Distinctiveness; is used to attract people towards their by giving adequate
(ii) Consensus; and attention towards message of warning, through proper
(iii) Consistency. design of content and proper display of the message.
(i) Distinctiveness: It is the level to which a person The content of the message content should have signal
behaves in the similar way at various circumstances. If word, hazard statement, consequences and instructions.
one acts the same way in new situations, distinctiveness Message should have distinctiveness towards the
is low but if one behaves in a different way, attention getting, comprehensible, concise and durable.
(iii) Managing Impression: Every businessman (vii) Judging Employees’ Loyalty: Perception
tries to develop a constructive impression of self in the determines the intensity of loyalty of a perceiver. Those
mind of others. A job seeker always tries to impress the who concentrate more on the goals and objectives of
employer by his abilities and knowledge by presenting the organization are termed as loyal and faithful.
the best of his achievements to judge his suitability for (viii) Self-Assessment and Development: The
the job. A mature expert will be able to evaluate the values, attitude and perception, control each other. For
abilities not only with the first impression but by improvement of self as a manager, you should have your
evaluating the overall knowledge and skill that a correct self-assessment representation, cleverly verified
candidate possess. through various sources. Several tests should be
Impression management is prepared by the conducted to verify regarding what should be done and
superiors through various organisational activities. when it should be accomplished. There are various
Whereas, hard work is evaluated at impression questions to be answered before assessing a person they
management to improve the quality of social are:
functioning, overdoing of such actions may occur at the ■ Are you perceived as person having positive
cost of information accuracy and high quality decision- attitude or negative attitude?
■ Are you perceived as aggressive, or as
making.
(iv) Building Corporate Image: Not only persons, submissive, or as a balanced assertive?
■ Are you perceived as a person who respects
but organisations makes a well planned attempt to
manage positive impression. This is called corporate others’ views?
■ Are you perceived as a person having own
image. Organisations, as well as persons related to them
always try to have benefit through positive impressions. pivot yet having required flexibility?
■ Are you perceived as a person respecting
(v) Managing Performance: It refers to the fact
that a person or a group behaves the way you expect high effort or as a happy-go-lucky?
Therefore, concept of perception is a sturdy tool
from them due to the attitude you have towards them
for self-development. If there is similarity between how
and, thus, your expectations are turned to reality.
you perceive yourself, and how others perceive you, it
Concept of self-fulfilling predictions describes the fact
is a signal that you are heading towards effectiveness
that people’s expectations are established through their
and efficiency and vice-versa.
behaviour. Self-fulfilling Prophecy refers to the fact that
(ix) Building Relationship: Constructive
when one person mistakenly perceives a second person
perception enables the superiors to build successful
it affects the behaviour of the other dealing person
communication and trust, leading to high performing
having his own perception. Therefore, it states the fact
relationship within managerial group, within employees,
that if you expect persons to achieve high performance,
and between managers and junior employees.
it is better to expect high performance of them, and give
Q. 7. Explain techniques for developing
them the opportunity to recognize your level of perceptual skills.
expectations. Substandard perceptions would be liable Ans. Techniques involved in enhancing or
to produce substandard performance. encouraging perceptional skills are :
(vi) Evaluating Performance: It refers to the fact (i) Giving and Receiving Feedback: By evaluating
that superiors evaluate the work of their subordinates. the feedback one can improve the perceptual skills.
The basis of evaluation is usually objective and People should know what you feel about them by giving
subjective both. Perception mainly plays its role when a thorough feedback to them. This technique explains
act is evaluated on the basis of subjective criteria. Future four aspects of the self, they are I know the self, I do not
line of business of a manager depends greatly on know the self, others know the self, and others do not
performance evaluation, therefore, perception plays know the self. These aspects further produce four areas
important role to move forward in career and getting of self, they are public area, blind area, private area and
right deployment. The main concern point is that if we dark area.
are evaluating a person merely on one’s perception, (ii) Having Empathy: Empathy means to rise
face the base of your own perception and ensure that above the perceptual frame and making an attempt to
your perception is as far as possible free of any partiality. express the issues from the point of view of others.
PERCEPTION / 61
(iii) Having Positive Attitudes: To have positive (vi) Communication: The main cause of distorted
attitudes is the right approach as it creates right perception is lack of communication. It is good and
perspective and helps a perceiver to work without healthy approach to create an atmosphere of open and
distortion. authentic communication as it helps in developing
(iv) Enhancing Self concept: To enhance self- perceptual skills in a person.
concept and self-esteem helps an individual to respect (vii) Correct use of Attribution: It is always better
and to have right perspective. to have correct use of attribution rather than to have
(v) Avoiding Common Biases: To have a right wrong one as it leads to distortion of perception. It
and effective effort to remove the common biases helps gives right approach and judgement for future also.
in removing the distorted perceptions. ■■
62
Attitudes and Values

7
INTRODUCTION system is a ladder which is based on a position of
person’s values in terms of their intensity.
Attitudes are the psychological concepts that reveal A value-based organisation undertakes sustainability
the past experience, shape ongoing behaviour, and serve and affluence to its endeavours. For designing value based
essential functions for the persons who hold them. organization, based on proposals of Tannenbaum and
Attitudes lead individuals to react in certain ways to Davis, following tips can be useful in this effect:
events or situations they encounter. (i) Dealing group with faith.
It is an attempt made by the businessmen to change (ii) Be courteous to individuals.
the attitude of public as a whole towards objects, people, (iii) To deal with people as an active individual.
or issues. It is prepared in order to attract our attention (iv) Accept and utilize human differences.
towards their product and want to have desired attitude (v) Treat individual as a developed person.
of the masses towards them. The behaviour of an (vi) Encourage appropriate expression of
individual can be affected by changing his attitude feelings.
through continuous efforts. (vii) Promote authentic behaviour.
There are broadly two processes of change in (viii) Use authority and networking for benefit of
attitude: organisation.
(i) Persuasion: Persuasion can be described as an (ix) Encourage appropriate confrontation.
effort to change attitudes through various types of (x) Encourage willingness to take calculated
communications such as advertisement or speeches. risks.
There are two approaches of analyzing effect of (xi) Set process which shall take care of effective
persuasion on attitudes: accomplishment.
(a) Traditional Approach (xii) Emphasize association.
(b) Cognitive Approach.
(ii) Cognitive Dissonance: Cognitive dissonance SUMMARY
is the inner situation that happens when persons notice Attributes signifies the tendency to expand to
irregularity among their attitudes or between their certain objects, persons or situations. They are
attitudes and their obvious behaviour. Dissonance is dependable mental representations of various features
motivational state-groups whose practice would like to of social or physical world. They are formed by process
reduce it. Earlier, irregularity was recognized as the basic of social learning and cognitive dissonance.
feature of cognitive dissonance. Attributes are attained through experience. They
Values gives the essential base for considering a exercise a directive influence on subsequent human
person’s attitudes, perceptions and personality. Values behaviour.
hold critical part as to what is right, good or pleasing. The attitude of any person in an organization can
Values have both substance and strength attributes. be changed through persuasion and cognitive
Content attribute explains as to what is important; dissonance.
intensity attribute describes-how much it is important. Methods of effecting attitude change
When person’s values are levelled in terms of their (i) Providing new information
strength, we get that employees value system. Value (ii) Fear Arousal and Reduction
ATTITUDES AND VALUES / 63
(iii) Dissonance Arousal According to Baron, Attitude is defined as,

(iv) Position Discrepancy permanent evaluations of people, groups, object, or
(v) Participation in Decision-making issues. In fact, of nearly any part of the social or physical
(vi) Compliance world. According to Petty and Cacioppo, Attitudes are
(vii) Identification considered to be general evaluations group can make
(viii) Internalization. about themselves, other persons, objects or issues.
Factors determining the degree of influence of According to Breckler and Wiggins, Attitudes are
attitude on behaviour are: permanent mental representations of various features
(i) Attitude Specificity of the social or physical world. Attitudes are acquired
(ii) Attitude Strength through knowledge and exercising them which has a
(iii) Attitude Accessibility direct influence on the succeeding behaviour.
(iv) Existence of Social Pressure Q. 2. How are attitudes towards a person
(v) Direct Experience. formed?
The three prime work related attributes that have Ans. According to Katz, Attitudes give out four
significant influence on the organization are: significant functions for persons and they are adjustment
(i) Job Satisfaction function, ego-defensive function, value expressive
(ii) Job Involvement function and knowledge function. They are described
(iii) Organizational Commitment. as below:
Values help us in providing the basic foundation (i) Adjustment Function: People tend to develop
for understand a person’s attitudes, perception and favourable attitude towards rewarding and beneficial
personality in organization. It has judgement element functions as well as relationship. Similarly, people
of judging goal, right and desirable and are of six types: develop negative attitude towards such functions and
(i) Theoretical relationships, which shall attract punitive actions.
(ii) Economic (ii) Ego-defensive Function: Attitude can be
(iii) Aesthetic served as devise for protecting self-image.
(iv) Social (iii) Value-expressive Function: Attitude supports
expression of core values.
(v) Political
(iv) Knowledge Function: Attitude serves as
(vi) Religious.
standard or frame for understanding and interpreting
Values differ from culture to culture. They are
people and events around them.
influenced by various cultural factors of a particular
There are basically two sources of formation of
society.
attitude:
Value based organization should be designed that
1. Social Learning, and 2. Direct Experience:
they promise sustainability and prosperity to its
(1) Social Learning: Social learning is acquiring
endeavours or assignments.
attitudes from others. There are broadly three processes
The design of an organization is to be perfect to
of acquiring attitudes through social learning and they
the extent that they ensure high productivity, high
are Classical Conditioning, Instrumental Conditioning,
satisfaction of all stakeholders and low negative factors.
and Modelling.
CHECK YOUR PROGRESS (a) Classical conditioning is an essential type of
knowledge in which one motivates regularly and helps
Q. 1. What do you mean by attitude? in preceding the next step. It is knowledge based on
Ans. Attitude is a psychological concept that the association, when motivation is presented by one
reveals the past experience, shape ongoing behaviour, and is followed by others. Prejudices and preferences
and serve essential functions for the persons who hold are shaped through conventional or classical
them. Attitude lead individuals to react in certain ways conditioning. Classical conditioning can play a
to events or situations they encounter. According to responsible role in the development of attitudes.
Gordan and Allport opinion, Attitude is Social (b) Instrumental conditioning is related to the
Psychology’s most central concept. knowledge to communicate the “right” views.
Instrumental Conditioning is formed through rewarding In some cases, individuals shift themselves from a view
the most wanted behaviour and discouraging an that is advocated to them even if it is the one they could
undesirable behaviour. Thus, a particular type of attitude have accepted in normal conditions.
is created towards a particular type of action through (ii) Forewarning: It is referred to the tendency of
Instrumental conditioning. building counter-arguments against a persuasive
(c) Modelling as a theory which deals with persons argument. Forewarning helps receivers resist the
adopting new behaviours by way of observing the conclusions recommended by the message.
dealings of others around them in the organization. (iii) Selective Avoidance: It is referred to a
Persons have a tendency to do what others do, not what tendency to direct our attention away from information
others say. Thus, attitudes can be transmitted from one that challenges our existing attitudes. Persuasion has
person to another or from one group to another or from become a fact of modern life and so every day we are
one generation to another. exposed to countless attempts at persuasion.
2. Direct Experience: Attitudes are also produced Persuasion can be described as an effort to change
in the course of real life experience, which may be also attitudes through various types of communications such
called as direct experience or personal experience. as advertisement or speeches.
Many studies recommend that strength of the attitudes There are two approaches of analyzing effect of
achieved through direct experience is stronger than the persuasion on attitudes:
strength of attitudes acquired indirectly. Attitudes ■ Traditional Approach
acquired through direct experience are held more ■ Cognitive Approach.
assertively and are difficult to be changed easily. If you The Traditional Approach: According to the
hold strong attitude about an object, issue, or a person, Traditional approach, there are three elements of
and you want others to appropriately appreciate your persuasion:
position, it is good to let others have direct experience (i) Source: The communicator or sender;
with the attitude object. (ii) Message: The communication;
Q. 3. Can attitudes be changed? If so, how? (iii) Target audience: The receiver.
Ans. There are a lot of effects of the environment The traditional approach is basically paying
on our minds. Such as advertisements, publicity, attention on a one basic question: “Who says what to
appeals, announcements etc. in various media that whom and with what effect?”
create a place in our mind by emphasizing the qualities The most notable conclusions of this approach are:
of their product in the advertisement and super imposing ■ The experts are more influential than non-
them by giving attractive slogans or taglines. It is an experts;
attempt made by the businessmen to change our attitude ■ The messages which do not appear to be
towards objects, people or issues. It is prepared in order planned and need to change attitudes have
to attract our attention towards their product and want more force than those appearing to be
to have desired attitude of the masses towards them. designed so;
The behaviour of an individual can be affected by ■ Popular and attractive communicators are
changing his attitude through continuous efforts. more capable in changing attitudes than
There are broadly two processes of change in unpopular or unattractive ones;
attitude: ■ Individuals with comparatively low in self-
(a) Persuasion, esteem tend to get influenced more easily than
(b) Cognitive Dissonance. those high in self-esteem, especially by
(a) Changing Attitude through Persuasion: It persuasion from high-status or attractive
is a difficult task of changing attitude through sources;
persuasion. There are three factors that make our ability ■ Two-sided move toward the desired goal is
to resist persuasion and they are: more successful than one-sided approach;
(i) Reactance: It is referred to the negative ■ Persuasion can be improved by communication
reactions that individuals experience whenever they feel which arises strong emotions in the mind of
that someone is trying to limit their personal freedom. the future consumers and the viewers.
The Cognitive Approach: Cognitive approach Cognitive approach enables to have a deep insight
tries to clarify as to what a group think about when for selecting communication in advertisements for
opened to the elements to influential appeals. Various different types of goods. Some goods serve useful
hypothetical models have come into view to explain this function–people buy and use them as they are necessary
trend, but the most extensively known among them is to be used. On comparing, some goods provide group
Elaboration Likelihood Model (ELM). uniqueness function–public buy and use them since they
ELM clarifies that there are two different ways to enhance the personal representation of the users.
persuasion, depending on how significant or appropriate For the useful products, users are more convinced
the issues are to the people who are the targets of by advertisements, which explain features of the
persuasions. The two routes are called– Central Route, products. For the social-identity products, they are more
and Peripheral Route. If centre of attention is more on subjective by advertisements, which have exciting
the message and its argument, as persuasive message demand.
Cognitive approach to persuasion clarifies why
appears to be important, persuasion occurs through
people are in a good frame of mind are easy to persuade.
central route. In such cases level of attitude change
It further refers that may be when public is in a good
depends on eminence of point of view. Therefore it is
frame of mind, they are less able to connect in careful,
clear that the persuasive message of slight interest,
systematic processing than when they are in a neutral
should not be given considerable attention. Although
mood. Therefore, they may be more easily inclined,
such messages can change our attitude, if we find that
mainly by study and persuasive influence.
message or the argument was more unbiased rather tilted
Cognitive approach to persuasion also clarifies the
one-sided, or if we find that the source has knowledge relation between human being differences and its power
and information on the soaring position. In such case, on influence. Take one feature of individuality, self-
persuasion occurs through marginal route. monitoring. Persons high in self-monitoring will be
There are two inferences of ELM, they are: inclined to make an endeavour for creating positive
(i) Attitude may or may not change either feeling in the minds of others. Such persons are more
through central route or through peripheral likely to be convinced, if the message is coming from
route. good sources, and get moderately less effect of
(ii) Attitude is more likely to change if persuasion if the message is coming from expert sources.
persuasions come from multiple sources as On the other hand, persons low on self-monitoring are
well as the arguments are strong, because in less involved in creating optimistic imitation on others,
this case information receives greater and, more worried about reflecting their true and internal
scrutiny by the receivers. reaction.
Another model which elucidates the cognitive They are convinced less by attractive sources and
approach to persuasion is the Heuristic Model of more by specialist sources and services of the
Persuasion. This model deals to the fact when persons organization.
hear the reactions of viewers to a persuasive message, (b) Changing Attitude through Cognitive
does this persuade the extent to which they should be Dissonance: Cognitive dissonance is the inner situation
persuaded? that happens when persons notice irregularity among
Many studies to this effect have been made and, their attitudes or between their attitudes and their
thus, this model recommended that viewers’ reaction obvious behaviour. Such irregularity creates
would be powerful when the individuals in question had disagreeable emotion, which produces pressures that
little involvement in the issue. directly effects change in attitudes. Dissonance is
In peculiarity, when the subject is significant to the motivational state-groups whose practice would like to
people involved, viewer’s reactions would create small reduce it. Earlier, irregularity was recognized as the basic
dissimilarity in this case methodical dispensation would feature of cognitive dissonance. However, new studies
propose that irregularity is not the essential element in
happen and influence would depend on quality of
dissonance, but it is the motivation to decrease it.
influence.
Q. 4. What is the degree of influence of attitude rather than as plans that lead and guide action. This idea
on behaviour? appears to be in contradictory tune with respect to the
Ans. The fundamental point of your knowledge on theory of Cognitive Dissonance.
attitudes is to be familiar with the degree of impact of Nevertheless, it may be constructively used to shape
attitude on job behaviour. In the beginning investigation the attitudes of persons by encouraging them to
mechanism recommended that attitudes merely participate in certain actions.
influence behaviour. Some researchers have pointed Hence, we can say that attitudes are formed after
out that behaviour is far away from easy, but it is logical. spotlighting the adequate experience, which influences
It was established that attitudes and behaviour are at behaviour in considerable manner.
top only inadequately connected. Q. 5. Do values of a person influence his/her
The modern research works propose that the behaviour? If so, how?
influence of attitude on behaviour is important, but we Ans. Values give the essential base for considering
should be able to choose to spotlight on explicit, fairly a person’s attitudes, perceptions and personality. Values
fine attitudes rather than general. It means that, in the hold critical part as to what is right, good or pleasing.
presence of certain reasonable variables, impact of Values have both substance and strength attributes.
attitude on behaviour is important. Content attribute explains as to what is important;
The factors which determine the degree of intensity attribute describes-how much is it important.
influence of attitudes on behaviour are: When person’s values are levelled in terms of their
(i) Attitude Specificity: It means that particular strength, we get that employees value system. Value
attitudes are enhanced predictors of behaviour than system is a ladder which is based on a position of
general. person’s values in terms of their intensity.
(ii) Attitude Strength: It refers the fact that strong Everyone has a chain of command of values that
attitudes are better predictors of obvious behaviour than outline our value system. Nevertheless every person
weak. does not hold the same principles, Edward Spranger
(iii) Attitude Relevance: It means that the degree describes the values as the collection of likes, dislikes,
to which attitude matters in fact has an outcome on the viewpoints, shoulds, inner inclinations, rational and
existence of the individual’s holding various attitudes. irrational judgements, prejudices and association
Therefore, these effects should be strong enough to patterns that establishes a person’s view. M. Rokeach
maintain a strong link between attitudes and behaviour. describes values, as a definite mode of accomplishing
(iv) Attitude Accessibility: It is not difficult to be or final stage of existence, personally or socially
with specific attitudes which can be brought into preferable to a conflicting or reverse mode of manner.
awareness from remembrance. It is very important to It is significant to study the ethics and values,
have high degree of accessibility in order to have strong because it controls attitudes, perceptions, motivation,
impact of the same. evaluations, interpersonal relationships, behaviour,
(v) Existence of Social Pressure: While societal conflict handling styles, leadership patterns etc. In short
stress clasps extraordinary power, individuals’ obvious we can say that values are at the centre of behaviour
behaviour pursue the model put through such stress, model of a person.
although there might be inconsistency between attitudes
and behaviour. TERMINAL QUESTIONS
(vi) Direct Experience: Attitude may persuade Q. 1. What do you mean by the term attitude?
behaviour more powerfully if an attitude refers amazing Describe process of formation of attitude.
effects to a person with whom he has direct contact. Ans. Attitude is a psychological concept that
Captivatingly elevated relationship was found in reveals the past experience, shape ongoing behaviour,
this way, and it has been completed that behaviour and serve essential functions for the persons who hold
controls attitude more powerfully than attitudes them. Attitudes lead individuals to react in certain ways
influence behaviour. This view is called Self-perception to events or situations they encounter. According to
theory. This theory suggests that attitudes are used to Gordan and Allport opinion, Attitude is Social
make sense out of an action that has already taken place, Psychology’s most central concept.
According to Baron, Attitude is defined as, achieved through direct experience is stronger than the
permanent evaluations of people, groups, object, or strength of attitudes acquired indirectly. Attitudes
issues-in fact, of nearly any part of the social or physical acquired through direct experience are held more
world. According to Petty and Cacioppo, Attitudes are assertively and are difficult to be changed easily. If you
considered to be general evaluations group can make hold strong attitude about an object, issue, or a person,
about themselves, other persons, objects or issues. and you want others to appropriately appreciate your
According to Breckler and Wiggins, Attitudes are position, it is good to let others have direct experience
permanent mental representations of various features with the attitude object.
of the social or physical world. Attitudes are acquired Q. 2. How attitude can be changed? Is it easy to
through knowledge and exercising them which has a change attitude? Discuss with suitable examples.
direct influence on the succeeding behaviour. Ans. There are a lot of effects of the environment
According to Katz, Attitudes give out four on our minds. Such as advertisements, publicity, appeals,
significant functions for persons and they are adjustment announcements etc. in various media that create a place
function, ego-defensive function, value expressive in our mind by emphasizing the qualities of their product
function and knowledge function. in the advertisement and super imposing them by giving
There are basically two sources of formation of attractive slogans or taglines. It is an attempt made by
attitude: the businessmen to change our attitude towards objects,
(a) Social Learning and (b) Direct Experience: people or issues. It is prepared in order to attract our
(a) Social Learning: Social learning is acquiring attention towards their product and want to have desired
attitudes from others. There are broadly three processes
attitude of the masses towards them. The behaviour of
of acquiring attitudes through social learning and they
an individual can be affected by changing his attitude
are Classical Conditioning, Instrumental Conditioning,
through continuous efforts.
and Modelling.
There are broadly two processes of change in
(i) Classical conditioning is an essential type of
attitude:
knowledge in which one motivates regularly and helps
(a) Persuasion,
in preceding the next step. It is knowledge based on the
(b) Cognitive Dissonance.
association, when motivation is presented by one and
(a) Changing Attitude through Persuasion: It is
is followed by others. Prejudices and preferences are
a difficult task of changing attitude through persuasion.
shaped through conventional or classical conditioning.
There are three factors that make our ability to resist
Classical conditioning can play a responsible role in
persuasion and they are:
the development of attitudes.
(ii) Instrumental conditioning is related to the (i) Reactance: It is referred to the negative
knowledge to communicate the “right” views. reactions that individuals experience whenever they feel
Instrumental conditioning is formed through rewarding that someone is trying to limit their personal freedom.
the most wanted behaviour and discouraging an In some cases, individuals shift themselves from a view
undesirable behaviour. Thus, a particular type of attitude that is advocated to them even if it is the one they could
is created towards a particular type of action through have accepted in normal conditions.
Instrumental Conditioning. (ii) Forewarning: It is referred to the tendency of
(iii) Modelling as a theory which deals with persons building counter-arguments against a persuasive
adopting new behaviours by way of observing the argument. Forewarning helps receivers resist the
dealings of others around them in the organization. conclusions recommended by the message.
Persons have a tendency to do what others do, not what (iii) Selective Avoidance: It is referred to a
others say. Thus, attitudes can be transmitted from one tendency to direct our attention away from information
person to another, or from one group to another, or from that challenges our existing attitudes. Persuasion has
one generation to another. become a fact of modern life and so every day we are
(b) Direct Experience: Attitudes are also produced exposed to countless attempts at persuasion.
in the course of real life experience, which may be also Persuasion can be describes as an effort to change
called as direct experience or personal experience. Many attitudes through various types of communications such
studies recommend that strength of the attitudes as advertisement or speeches.
There are two approaches of analyzing effect of clear that the persuasive message of slight interest,
persuasion on attitudes: should not be given considerable attention. Although
■ Traditional Approach such messages can change our attitude, if we find that
■ Cognitive Approach. message or the argument was more unbiased rather tilted
The Traditional Approach: According to the one-sided, or if we find that the source has knowledge
Traditional approach, there are three elements of and information on the soaring position. In such case,
persuasion: persuasion occurs through marginal route.
(a) Source: the communicator or sender; There are two inferences of ELM, they are:
(b) Message: the communication; (a) Attitude may or may not change either
(c) Target audience: the receiver. through central route or through peripheral
The traditional approach is basically paying route.
attention on a one basic question: “Who says what to (b) Attitude is more likely to change if
whom and with what effect?” persuasions come from multiple sources as
The most notable conclusions of this approach are: well as the arguments are strong, because in
■ The experts are more influential than non- this case information receives greater
experts; scrutiny by the receivers.
■ The messages which do not appear to be
Another model which elucidates the cognitive
planned and need to change attitudes have approach to persuasion is the Heuristic Model of
more force than those appearing to be Persuasion. This model deals to the fact when persons
designed so; hear the reactions of viewers to a persuasive message,
■ Popular and attractive communicators are
does this persuade the extent to which they should be
persuaded?
more capable in changing attitudes than
Many studies to this effect have been made and
unpopular or unattractive ones;
thus this model recommended that viewer’s reaction
■ Individuals with comparatively low in self-
would be powerful when the individuals in question had
esteem tend to get influenced more easily
little involvement in the issue.
than those high in self-esteem, especially by
In peculiarity, when the subject is significant to the
persuasion from high-status or attractive
people involved, viewer’s reactions would create small
sources;
dissimilarity-in this case methodical dispensation would
■ Two-sided move toward the desired goal is
happen and influence would depend on quality of
more successful than one-sided approach; influence.
■ Persuasion can be improved by Cognitive approach enables to have a deep insight
communication which arises strong emotions for selecting communication in advertisements for
in the mind of the future consumers and the different types of goods. Some goods serve useful
viewers. function-people buy and use them as they are necessary
The Cognitive Approach: Cognitive approach to be used. On comparing, some goods provide group
tries to clarify as to what a group think about when uniqueness function- public buy and use them since they
opened to the elements to influential appeals. Various enhance the personal representation of the users.
hypothetical models have come into view to explain this For the useful products, users are more convinced
trend, but the most extensively known among them is by advertisements, which explain features of the
Elaboration Likelihood Model (ELM). products. For the social-identity products, they are more
ELM clarifies that there are two different ways to subjective by advertisements, which have exciting
persuasion, depending on how significant or appropriate demand.
the issues are to the people who are the targets of Cognitive approach to persuasion clarifies why
persuasions. The two routes are called–Central Route, people are in a good frame of mind are easy to persuade.
and Peripheral Route. If centre of attention is more on It further refers that may be when public is in a good
the message and its argument, as persuasive message frame of mind, they are less able to connect in careful,
appears to be important, persuasion occurs through systematic processing than when they are in a neutral
central route. In such cases level of attitude change mood. Therefore, they may be more easily inclined,
depends on eminence of point of view. Therefore it is mainly by sturdy and persuasive influence.
Cognitive approach to persuasion also clarifies the (ii) Attitude Strength: It refers the fact that strong
relation between human being differences and its power attitudes are better predictors of obvious behaviour than
on influence. Take one feature of individuality, self- weak.
monitoring. Persons high in self-monitoring will be (iii) Attitude Relevance: It means that the degree
inclined to make an endeavour for creating positive to which attitude matters in fact has an outcome on the
feeling in the minds of others. Such persons are more existence of the individual’s holding various attitudes.
likely to be convinced, if the message is coming from Therefore, these effects should be strong enough to
good sources, and get moderately less effect of maintain a strong link between attitudes and behaviour.
persuasion if the message is coming from expert sources. (iv) Attitude Accessibility: It is not difficult to be
On the other hand, persons low on self-monitoring are with specific attitudes which can be brought into
less involved in creating optimistic imitation on others, awareness from remembrance. It is very important to
and more worried about reflecting their true and internal have high degree of accessibility in order to have strong
reaction. impact of the same.
They are convinced less by attractive sources and (v) Existence of Social Pressure: While stress
more by specialist sources and services of the clasps extraordinary power, individuals’ obvious
organization. behaviour pursue the model put through such stress,
(b) Changing Attitude through Cognitive although there might be inconsistency between attitudes
Dissonance: Cognitive Dissonance is the inner situation and behaviour.
that happens when persons notice irregularity among (vi) Direct Experience: Attitude may persuade
their attitudes or between their attitudes and their behaviour more powerfully if an attitude refers amazing
obvious behaviour. Such irregularity creates effects to a person with whom he has direct contact.
disagreeable emotion, which produces pressures that Captivatingly elevated relationship was found in
directly effects change in attitudes. Dissonance is this way, and it has been completed that behaviour
motivational state-groups whose practice would like to controls attitude more powerfully than attitudes
reduce it. Earlier, irregularity was recognized as the basic influence behaviour. This view is called Self-perception
feature of cognitive dissonance. However, new studies theory. This theory suggests that attitudes are used to
propose that irregularity is not the essential element in make sense out of an action that has already taken place,
dissonance, but it is the motivation to decrease it. rather than as plans that lead and guide action. This idea
Q. 3. Explain how attitudes influence behaviour, appears to be in contradictory tune with respect to the
and how behaviour influence attitudes? theory of Cognitive Dissonance.
Ans. The fundamental point of your knowledge on Nevertheless, it may be constructively used to shape
attitudes is to be familiar with the degree of impact of the attitudes of persons by encouraging them to
attitude on job behaviour. In the beginning investigation participate in certain actions.
mechanism recommended that attitudes merely Hence, we can say that attitudes are formed after
influence behaviour. Some researchers have pointed out spotlighting the adequate experience, which influences
that behaviour is far away from easy, but it is logical. It behaviour in considerable manner.
was established that attitudes and behaviour are at top Q. 4. For a manager, what are the uses of
only inadequately connected. learning about attitudes?
The modern research works propose that the Ans. Psychology deals with various types of
influence of attitude on behaviour is important, but we attitudes. Organizational behaviour is related to the
should be able to choose to spotlight on explicit, fairly work-related attitudes and behaviour. There are mainly
fine attitudes rather than general. It means that, in the three work-related attitudes which have important power
presence of certain reasonable variables, impact of on the organization they are:
attitude on behaviour is important. (i) Job Satisfaction: The range of attitudes group
The factors which determine the degree of or individuals has towards their jobs are referred to as
influence of attitudes on behaviour are: job satisfaction. It is persons’ cognitive, affective and
(i) Attitude Specificity: It means that particular evaluative response towards their jobs.
attitudes are enhanced predictors of behaviour than (ii) Job Involvement: It specifies how far persons
general. recognize themselves with the job, and whether outcome
of the work is emotionally involved to person’s It is significant to study values, as it influences

importance. attitudes, perceptions, motivation, evaluations,
(iii) Organizational Commitment: It clarifies that interpersonal relationships, behaviour, conflict handling
how individuals feel on the way to their organisations. styles, leadership patterns etc. In nutshell, values are at
It is an attitude, which reflects the degree to which people the core of behaviour pattern of an individual.
recognizes with and are concerned with their Organizations should be so planned that they
organisations and are reluctant to go away. guarantee high efficiency, high contentment of all
Organizations should try to endlessly measure the stakeholders, and low negative factors such as
attitudes of employees at work place, so that remedial absenteeism, employee turnover etc.
measures may be taken in practical manner, for making A value-based organisation undertakes sustain-
certain pleasing behaviour at work. It is significant to ability and affluence to its endeavours. For designing
learn attitudes, as attitudes influence behaviour. value based organization, based on proposals of
Q. 5. What do you mean by values? How value- Tannenbaum and Davis, following tips can be useful
based organisation can be created? in this effect:
Ans. Values present the essential base for accepting (i) Dealing group with faith.
a people attitudes, perceptions and personality. Values (ii) Be courteous to individuals.
hold critical component as to what is right, good, or (iii) To deal with people as an active individual.
desirable. Values have both substance and power (iv) Accept and utilize human differences.
attributes. Content attribute explains as to what is (v) Treat individual as a developed person.
significant; intensity attribute describes how much is it (vi) Encourage appropriate expression of
important. feelings.
When person’s values are based on the conditions (vii) Promote authentic behaviour.
of strength then it has an individual’s value system. Value (viii) Use authority and networking for benefit of
system is a ladder based on the position of an individual’s organisation.
values in terms of their intensity. (ix) Encourage appropriate confrontation.
All of us have a chain of command of values that (x) Encourage willingness to take calculated
shapes our value system. Nevertheless, everyone does risks.
not clasp the same values. Edward Spranger defines (xi) Set process which shall take care of effective
the values as the group of likes, dislikes, viewpoints, accomplishment.
shoulds, inner inclinations, rational and irrational (xii) Emphasize association.
judgements, prejudices, and association patterns that
determine a person’s view of the world.
M. Rokeach explains values, as a definite form of
behaviour which is personal or social preferably to a
contrary or opposite mode of conduct. ■■
71
Organisation Behaviour and Individual Perspective-II
Personality and Emotions

8
INTRODUCTION The theories of personality explain the shaping of
personality. Sigmond Freud proposed psycho-analytic
Personality is often termed as physical appearance theory that focussed on the ID, the Ego, the Super Ego
and is described as complex set of various factors. It is and libido.
developed over a period of time. It is unique, qualitative, According to him, human mind comprises of three
and dynamic physiological system in the individuals. basic elements that are responsible for shaping the
The features from where the personality of a person is personality they are: pre-conscious, conscious and
determined are heredity, composition of behaviour and unconscious elements.
physical features. Human mind comprises three basic Carl Roger explained self-concept to explain the
elements such as preconscious, conscious and personality and is also known as Organism Theory or
unconscious that is responsible for shaping the Field Theory. The three basic elements of self theory
personality of the person. The three basic elements of are:
self-theory are organism, personnel field and self- (i) Organism
concept. The five mode of man are rational economic (ii) Phenomenal field
man model, organisational man model, social man (iii) Self-concept.
model, self-actualization man model and complex man According to social learning theory, the personality
model. Emotions play significant role in the decision- in an individual is determined by the situational
making, leadership, communication etc. that suits the interaction. According to Edger Schain the five mode
of man are as follows:
best in work place behaviour.
(i) Rational Economic Man Model
SUMMARY (ii) Organizational Man Model
(iii) Social Man Model
Generally speaking, personality means external
(iv) Self-actualization Man Model
appearance and is described as complex set of various
(v) Complex Man Model.
factors. Personality is not developed spontaneously but The personality traits in an employee are important
is developed over a period of time. It is important aspect in understanding the behaviour of organizational
that influences the employee’s behaviour in an member. It further helps in designing suitable strategies
organizational setting. The study and understanding of to direct their effort towards achieving organizational
personality is done as to provide life to all other goals.
resources in organization. The direction of these Emotions are related to the internal feeling
resources and proper motivation play a significant role expressed in a situation and are related to the psych-
for realization of the goals of an enterprise. Personality ology of an individual. Emotions are expressions of
is unique, qualitative and dynamic physio-psychological inner feeling that arises out of fear, anger, joy, love,
system in the individuals. It is believed that personality hate or grief. They are stimulated by cognition and
is developed from the time of birth to the growth as an grows a feeling in the individual. Emotions are expressed
adult in an individual. The features that determine the through facial or body gestures. In any organization
personality in an individual are heredity, composition emotions play important role in decision-making,
of behaviour and physical features. leadership, communication, motivation, inter-personal
conflict, management of change and understanding (ii) Personality is counted as unique concept as
deviations that suits the best in the work place behaviour. no two individuals are same in terms of their
CHECK YOUR PROGRESS personality.
(iii) Personality can be explained as the manner of
Q. 1. List the major characteristics that shaped adjustment of individual to the organisation,
your personality. environment and the group.
Ans. Personality can be described as an important (iv) Personality is a qualitative aspect as certain
aspect in understanding the human beings as they are techniques exist to enumerate it indirectly.
the most important resources of an organisation. It’s due (v) Personality is dynamic as it changes with the
to the human beings efforts that provide life to other time and situation.
resources for the accomplishment of goals and (vi) Personality is a system and comprises of
objectives. Generally, personality is signified with the input, processing and output mechanisms.
physical appearance. It is the complex set of various (vii) Personality makes strong influences on goal
factors. It’s not mere physical appearances that achievement and also on the performance of
determine the individual’s personality but there are other an individual.
factors that are responsible for it. Personality is not There are number of factors that determines the
developed spontaneously and it takes a period of time personality of individual i.e., biological factors, family
to develop in an individual. factors, environmental factors and situational factors.
The major characteristics that can shape an It’s the biological factors that are related to human body.
individual’s personality are as follows: There are three biological factors such as heredity, brain
(i) Personality is referred to both physical and and physical features that are considered as relevant:
psychological qualities of an individual. (i) Heredity: Heredity is referred to those qualities
(ii) Personality is counted as unique concept as that are transmitted by the parents to the next generation.
no two individuals are same in terms of their These factors are determined at beginning and certain
personality. factors of personality inherited are: physical stature,
facial attractiveness, gender, colour of skin, hair and
(iii) Personality can be explained as the manner of
eye balls, temperament, muscle composition, sensitivity,
adjustment of individual to the organisation,
skills, abilities, intelligence, energy level and biological
environment and the group.
rhythms.
(iv) Personality is a qualitative aspect as certain
(ii) Brain: The structure and composition of brain
techniques exist to enumerate it indirectly.
plays an important role in shaping the personality of an
(v) Personality is dynamic as it changes with the individual. It is influenced by the biological factors.
time and situation. There are few empirical conclusions that state that the
(vi) Personality is a system and comprises of brain influences the personality to large extent.
input, processing and output mechanisms. (iii) Physical Features: Personality is influence by
(vii) Personality makes strong influences on goal the physical features and the rate of maturation. The
achievement and also on the performance of rate of maturation refers to the maturity in an individual
an individual. and is related to the physical stature. It is believed that
Q. 2. Mention the characteristics of personality an individual’s external apperance makes a strong
and body types you have observed. impact on his personality. The physical apperances can
Ans. Personality is a complex set of various factors be of height, colour, facial attraction, muscle strength
and is also an intangible concept. It is complex because etc.
it is related to the cognitive and psychological process. Q. 3. Identify the personality types and their
It is believed that a man is born with certain physical characteristic using the Big Five Types.
and mental qualities but the environment in which he Ans. Personality behaviour gives a considerate idea
survives and excels shapes his personality. The about the personality types. There are various types of
characteristics of personality are as follows: personalities being recognized they are:
(i) Personality is referred to both physical and (i) The Myers-Briggs Type Indicator: It is known
psychological qualities of an individual. as MBTI structure. It has given some basic personalities
PERSONALITY AND EMOTIONS / 73
out of which some of them are extroverted vs. person under this type or category is intelligent, feels
introverted, sensing vs. intuitive, thinking vs. feeling, shy and avoids social contact. This type of persons are
and perceiving vs. judging etc. usually found to be anxious, ambitious, and dedicated
The nature of a personality type ‘introverted, to his work. They are quick to react and overs-ensitive
intuitive, thinking and judging’ possess certain qualities to pain and pleasure.
which can be to possess vision, thinking with original (iv) Extrovert-Introvert Personality Types: Carl
mind, to have original ideas, to have great drive and Jung is advocated this theory. This theory is used to
skeptical, critical, independent, determined and stub- analyze the psychological approach of a person.
born. According to this theory, personality is developed as a
(ii) The Big Five Personality Types: This type process of creativity. It consists of four stages: thinking,
of personality dimension is recognized in terms of the feeling, sensation and intuition. A person’s personality
big five factors. The types included under this category is a combination of these factors. This theory has
are: projected two personality characteristics on two extreme
(a) Extraversion: It means to give importance to ends. They are extrovert and introvert type personality.
relationships. While extrovert people are more sociable, introvert
(b) Agreeableness: It is related to the thinking in people are self-confident and they are directed by their
a different manner.
own personal thoughts. Extroverts are friendly and reality
(c) Conscientiousness: It means the possession
based persons.
of reliability.
They are performing the functions accordingly. On
(d) Emotional stability: It means to have ability
the other hand, introverts are less risk taking and directive
to withstand stress.
oriented. They need strong motivation and specific
(e) Openness to experience: It means those who
directions. While extroverts think in terms of objective
are interested and fascinated by novelty.
and interactive relationships, the own philosophy and
(iii) Physiognomy Personality Types: William
ideology guide the thinking of introverts.
Sheldon has given three types of personality based on
This theory is very practical in the management of
the human anatomical or physical structure of persons
and psychological characteristics. Physical size of the organisational behaviour. Job design, motivation,
body persuades the human behaviour and temperaments. leadership styles, career development, training,
The personality types are: organisational change, organisational development and
(a) Endomorph: The various characteristics of organisational effectiveness are based on the personality
personality and behaviour related with the body type characteristics. Introvert performs better in monotonous
are friendly, concern to people, helping others in jobs. Extrovert performs better in dynamic and
troubles, very slow reaction to stimuli. They seek environmental centred jobs. Similarly, extrovert needs
comfort; have strong inclination to delicious food, etc. independent style of leadership and introvert needs
The persons who have these personality characteristics, directive oriented leadership. Thus, the theory is used
are appreciated and accepted easily by the society or a in developing organisational strategies to deal with
group. individual employees for increasing organisational
(b) Mesomorph: Those people who have effectiveness.
reasonable physical characteristics are known as (v) Type A and Type B Personality: Type A
Mesomorph. The body of such persons are strong and personality is given by Friedman and Rosenman. It is
tough. The personality characteristics of this type are: forcefully concerned in a continual, non-stop struggle
seeks physical adventure, enjoys body building, feels to achieve more in less time and if necessary to do so,
restless, shows high aggression and self-assertiveness, alongside the opposing efforts of other things or other
likes to take risk and develops competitive spirit. The persons. They have defined Type B personality as
person is similar to by having good and attractive infrequently harassed by the desire to obtain a wildly
physique. increasing number of things or participate in an endless
(c) Ectomorph: Ectomorph body type is defined mounting sequence of proceedings in an ever declining
and recognized by a thin and flat chest. Usually, the amount of time.
Q. 4. Identify the personality types and their Q. 5. Observe persons you know very closely
characteristics using the introvert and extrovert and write down the characteristics of Id, Ego, and
types. Super Ego.
Ans. There are five types of personality types and Ans. (i) The Id: Id can be described as the totality
they are: of instincts that are oriented towards increasing pleasure,
(i) The Myers-Briggs Type Indicator avoiding pains and striving for immediate satisfaction
(ii) The Big Five Personality Types of desires. The personality characteristics of an
(iii) Physiognomy Personality Types individual are constructed on the foundation of the Id.
(iv) Extrovert-Introvert Personality Types (ii) The Ego: Ego can be described as the executive
(v) Type A and Type B Personality. part of the personality as it selects the features of the
Carl Jung is proposed the theory of Extrovert- environment and stores them. Ego is rational and logical.
Introvert Personality Types and used analytical It is the conscious intermediary between the realities of
psychology approach. According to the theory, the world and the ID’s demands.
personality is developed as a process of creativity and (iii) The Super Ego: Super ego can be described
consists of four major phases: thinking, feeling, as a moralistic segment of human personality consisting
sensation and intuition. The theory believed that an of noblest thoughts, ideals, feelings developed through
absorption of cultural values and attitudes.
individual personality is a mixture of these factors. It
Q. 6. If you were an economic man, what are
proposed two personality characteristics on the two
the characteristics you would have observed in you?
extreme ends. They are extrovert and introvert type
Ans. It would be the characteristics of Rational
personality. The extrovert persons are more sociable
Economic Man Model. It was classical theories that
while introvert persons are more self-confident and both
have conceptualized the rational economic man model.
of them are guided by their own individual thinking.
It is considered to be the oldest model. The rational
The extrovert’s persons are sociable and are reality
economic man model is based on the principle of
oriented individuals. They are rational in their approach
maximisation of self-interest. According to this model,
and are performers in life. On the other hand, introverts
an individual makes a balance between costs and
are less daring and are directive oriented persons. The benefits of his actions. The individual is more concerned
introverts require strong motivation and specific with calculation of value for his effort and evaluates it
directions to achieve their goals. The extroverts think in terms of economic rewards and maximising it. The
in terms of objective and interactive relationships. The economic rewards regulate the behaviour of the
introverts are governed by their own philosophy and individual. The model believes that an individual is
ideology guide. motivated by economic rewards and his behaviour can
The theory of Extrovert-Introvert has proved very be controlled by variation in economic rewards.
useful in the management of organisational behaviour. According to this model, it is relevant in designing
Factors like Job design, motivation, leadership styles, appropriate strategies of motivation and control. It is
career development, training, organisational change, useful in determining reward systems and suggests that
organisational development and organisational human energy is extracted by providing more monetary
effectiveness are based on the personality characteristics. rewards. There is no conflict between management and
This theory believed that introverts are more likely workers as increased economic rewards encourage high
to perform better in repetitive jobs. production. It further helps in creating congenial and
According to this theory, extroverts perform better responsive industrial relations system. The model is
in dynamic and environmental centred jobs. The considered to be a realistic description of human
extrovert needs democratic style of leadership while behaviour and has proved relevant for understanding
introvert needs more directive oriented leadership. The man in modern times.
Extrovert-Introvert Personality Type theory is used Q. 7. What are the characteristics of
effectively in developing organisational strategies to deal organizational man?
with individual employees for increasing organisational Ans. It was William Whyte who promoted and
effectiveness. supported the concept of organisational man.
According to Organisational Man Model, an is related to the inner feelings expressed in a situation.
organisational man sacrifices for the sake of The individual develops an inner feeling whenever he
organisations’ interest. An individual who holds a strong experiences stimuli. The inner feelings are expressed
belief that social satisfaction is powerful device to in the form of facial expressions, verbal sounds and body
achieve objectives instead of competitive struggle falls actions. The concept of “emotions” plays vital role in
are the one who falls in this category. It suggests that understanding the behaviour of employee in an
individual behaviour is oriented towards loyalty, organisation. According to Stephen P. Robins,
belongingness, conformity and sacrifice of individual’s emotions are described as intense feelings that are
interest in the realisation of organisational goals. directed at someone or something. The understanding
It was concluded that individual attitude is of emotions requires two components and they are affect
developed towards resolving conflicts. Organisational and mood. Mood is a wide range of feelings that people
man model is helpful in creation of an organisational experience while moods are the feelings that tends to
structure that helps in providing satisfaction to be less intense than emotions and that lack a contextual
individuals. As a result, organisational strategies take stimulus.
care of people’s interest and leadership is presumed to Q. 10. Enumerate the applications of emotion.
be highly democratic. The communication is open and Ans. The managers in the organisations use the
controls are based on self-controls rather than on fact knowledge of emotions for directing their subordinates
controls. As this is based on achieving organisational’s in effective manner for the accomplishment of
goals, motivation is positive and the commitment is organisational goals and objectives. Emotions are,
guaranteed. considered to be important determinants of employee
Q. 8.What are the characteristics of authorit- behaviour in the organisations.
arianism? The applications of emotions in organisations are
Ans. Authoritarianism: Authoritarianism is a trait as follows:
used to explain the personnel having negative beliefs (i) Employee Selection: The interpersonal
concerning the work and workers. By using the concept attraction and working together with the group are
of Authoritarianism, the behaviour of employees in becoming popular in the organisations. The
organisation is explained by using the following traits: organisations prefer for the individuals who possess the
(i) Employees believe in the formal authority. ability to cooperate with others. The basic requirements
(ii) Employees compel obedience to the for the success in any job are the factors like ability to
authority. adjust with job demands, environmental pressures and
(iii) Employees adhere to the conventional values cooperating with others. In other words, emotional
and do not give preference to the new ideas. stability signifies the controlling aggression in an
(iv) Conforms to the rules and regulations. individual. The employees often cover up their real
(v) Believes in directing the subordinates than emotions and displays emotions that are suitable to the
listening to them. demands of the organisation. Organisations prefer those
(vi) Tries to be rigid and prefers structured employees who possess these set of qualities in them
environment. and are known as emotional intelligence. Emotional
After taking these characteristic qualities into Intelligence can be explained as an assortment of non-
account, a leadership style of superiors was developed cognitive skills, capabilities, and competencies that
that was known as authoritarian. The employees who influence a person’s ability to succeed in coping with
have the authoritarian qualities will have respect and environmental demands and pressure. It is composed
achieve production targets in the short run. In the end, of five elements they are self-awareness, self-
these people are unsuccessful to preserve the rank of management, self-motivation, empathy and social skills.
motivation and satisfaction. (ii) Decision-Making: In organisations, decision-
Q. 9. What is emotion? making plays integral part for every employee. If the
Ans. Emotion can be characterized as an expression decision-making has to yield intended result then it has
of a feeling of fear, anger, joy, love, hate, grief, to be rational. In decision-making process, emotions like
frustration, satisfaction or any other similar feelings. An fear, anxiety, frustration, doubt, excitement, anger stress,
emotion is a psychological aspect of an individual and coolness etc., dominate the rationality. The managers
who overlook the importance of negative emotions in the conflict. It enhances harmony among the
the decision-making will also be overlooking number subordinates. On the other hand, dealing with the task
of alternatives. The managers will also overlook and structural aspects of the conflict alone does not
information processing rather use more intuitiveness in rectify the conflict. It is important for managers in the
the decision-making. Positive emotions increase the organisations to consider the importance of emotions
ability to solve complex problems and also help in in the resolution of inter-personal conflicts.
dealing with the complex persons. The emotional (iv) Management of Change: Change is a common
stability is required in the process of group decision- occurrence in every organisation and employees refuse
making to develop a feeling in the employee that their to go along with change due to ambiguity in the goals.
suggestions are considered appropriate for arriving at a It results in the fact that emotional attachment to the
final decision. goals brings out positive attitude towards change. The
The managers who can balance between rationality, managers extracts out positive response to change by
intuition and emotions are likely to make sound the evocation, framing and mobilisation of emotions.
decisions that can be acceptable to their fellow As a result, proper linking of emotions with the change
subordinates. is essential for bringing down the resistance to change.
(iii) Leadership: Leadership is directly related with (v) Deviant Workplace Behaviour: There are
communication of directions, motivation of subordinates occasions when emotions influence the moods and as a
and resolving inter-personal conflicts. Emotions play a result employees engage themselves in involuntary
essential role in all these aspects and they can be actions of deviations of norms, rules, authority and cause
explained as follows: damage to the organizational property. The boss’s
(a) Communication: Communication is the absence is also one of the ways of employee deviation.
process of transmitting the message to others in an Some of certain observed deviations are slow working,
intended manner. It was observed that appropriate use politicking, recriminations, harassment, aggressions etc.
of words, medium, language, technology and The negative emotion of enviousness in individual
environment do not convey the message righting. The behaviour is the other cause of anxiety and stress in the
appropriate use of facial expressions, body moments individuals. It is bitterness for not possessing something
and tone of the communication was considered efficient that is strongly desired and it is promotion of positive
manner of conveying the intended message. It was emotions that controls negative emotions of enviousness.
closely related with the emotions of the sender. In this
way, leaders will be able to convey sense of TERMINAL QUESTIONS
effectiveness, competence, optimism, and enjoyment Q. 1. Define personality. ‘Individual personality
and energise their subordinates by their excitement, is wholistic’. A host of factors determine it. Discuss.
enthusiasm and communication of emotional Ans. Personality is a significant feature to
attachment. understand the human beings as they are the most
(b) Motivation: Motivation is a psychological important wealth of an organisation. They offer
aspect and can be explained as the feeling of an inner existence to other possessions for the achievement of
drive and enthusiasm to act in a predetermined way to goals and objectives.
achieve the desired results or outcomes. The emotions An individual’s energy creates all the disparities in
influence the desired outcomes and managers use organisations. Personality determines the energy of a
emotional content to motivate their subordinates in a person. It gives a chance to recognize the persons,
proper direction so that they achieve desired outcome. appropriately directing their power and motivate them
(c) Inter-personal conflicts: The conflicts arise in a proper manner. Personality is the learning of the
due to the misunderstanding of communication in the featured behaviour of an individual, the inter-relations
situations of emotions between two or more individuals between them and the way in which a person responds
in an organisation. It is believed that emotions are and adjust to other people and situations. Gordon
interwoven in conflicts and these emotions do not appear Allport has described personality as the active
outside in a situation of conflict. The managers need to organisation within the individual of those
address the emotional component in order to resolve psychophysical systems that decides his exceptional
adjustments to his environment. Kolasa has defined model measured as a practical depiction of human
personality as a wide, formless title relating to behaviour.
fundamental approaches of persons to others and (ii) Organizational Man Model: William Whyte
themselves. It is the study of the characteristic traits of has given and explained the concept of organisational
a person, relationships between these qualities, and the man.
way in which a person alter to other people and An organizational man gives up for the sake of
situations. Stephen P. Robbins has defined personality organisations’ interest. A person possessing an idea that
as the sum total of ways in which an individual reacts social contentment is influential tool to accomplish
and interacts with others. objectives instead of competitive struggle falls under
These definitions reveal that the personality has the this category. Organisational man model propose that
following characteristics: individual behaviour is leaning towards loyalty,
(i) Personality relates to both substantial and belongingness, conformity and sacrifice of individual
emotional qualities of an individual. interest in the realisation of organisational goals.
(ii) It is exclusive in the sense that no two persons Consequently, individual’s attitude is developed
are same in terms of their personality. towards determination of conflicts. Organisational man
(iii) Personality is the way of modification of model is useful in formation of an organisational
individual to the organisation, environment structure to provide satisfaction to individuals.
and the group. Therefore, organizational strategies take care of people’s
(iv) It is a qualitative aspect but some of the interest. Leadership is extremely democratic.
techniques reveals that it needs to quantify Communication is open and controls are based on self-
indirectly. control rather than fact controls. Motivation is positive
(v) Personality is dynamic as it modifies with and assurance is guaranteed.
the time and situation. Q. 3. What are the propositions of Trait
(vi) Personality is a system because it has input, theories? Explain Cattel’s Trait theory.
processing and output mechanisms. Ans. Allport’s Trait Theory: Gordon Allport has
(vii) Personality persuades goal achievement and made familiar with a number of persons to describe
performance of an individual. compound behaviour of human personality. He has
classified traits into two categories they are:
Q. 2. Distinguish between rational economic
(a) Common traits, and
man model and organisational man model.
(b) Personal dispositions.
Ans. (i) Rational Economic Man Model:
Common traits are used to evaluate individuals,
Classical theories have been able to formulate the
personal character is unique and the most persistent
balance of the economic man model. It is the oldest
characteristic connecting the complexity of human
model. It is the foundation on the principle of
character. For providing appraisal, six unique trait
maximisation of self-interest.
orientations are used. They are social, political,
According to this model, an individual makes
economical, aesthetic, religious and hypothetical. For
steadiness between expenses and settlement of his
instance social traits emphasises love and affection, care
proceedings. He is more worried with computation of
and interest on others and expression of sympathy.
value for his attempt in terms of financial rewards and Political trait is related with the power awareness. While
maximising it. Economic rewards standardize the economic character stresses on practical approach and
behaviour. Rational Economic model assume that man cost and benefits of situation, visual trait is concerned
is forced by economic rewards and his behaviour can with creative and artistic aspects. Religious feature is
be restricted by difference in economic rewards. Thus, associated to unity and integrity. On the other hand,
it is pertinent to design the appropriate strategies of imaginary trait consists of use of reasonableness and
motivation and control. It is helpful in formating reward pragmatic approach. A person possessing hypothetical
systems. It suggests that human energy is removed by trait is characterised by the inventor of important
providing more monetary rewards. As increased realism.
economic rewards persuade production, there is no Cattel’s Trait Theory: Cattels’ theory gave a new
conflict between management and workers. This leads approach. The qualities are accepted into two categories
to creation of good industrial relations system. This they are surface traits and source traits.
Surface traits are apparently external and happen sensation and intuition. Individual personality is a
on the outside of personality. They are strong and combination of these features.
basically due to the main source traits. While source The theory projected two characters uniqueness on
trait is a cause, surface trait is effect. Surface trait is an the extreme ends. They are extrovert and introvert type
sign of source trait. Trait theories have been recognised personality. While extrovert persons are more sociable,
for the stability of personality. The theories have introvert persons are more self-confident and they are
revealed the effectiveness of quantitative purpose in directed by their own individual thinking.
behavioural sciences. They include great deal of natural Extroverts are friendly and authenticity oriented
relevance. persons. They are active and recitalist. On the other
Q. 4. ‘Every individual is a social man and he hand, introverts are less risk taking and command
possess self-actualizing motive’. Explain. oriented. They need strong incentive and exact
Ans. This statement is very true and can be better instructions. While extroverts believes in terms of
understood by the Social man model being laid down objective and interactive relationships, their own
by Elton Mayo, Kurt Lewin and McGregor. They philosophy and ideology directs the philosophy of
have used this model extensively. Social man model is introverts.
a result of experiential behavioural research and growth This theory is very helpful in managing the
of human relations movement. It is based on the idea behaviour of the employees of the organization by their
of social relationships. superiors. Job design, motivation, leadership styles,
According to this model group demands, types and career development, training, organisational change,
approved direct individual actions. A person is organisational development and organizational
motivated by social plunder and his approval is effectiveness are the foundation of the personality
calculated in terms of his position amongst group characteristics.
members. Therefore, employees accept management Introvert is more liable to carry out enhanced and
orders as long as they are harmonious for the group rhythmic jobs. Extrovert performs better in dynamic and
functions and are according to the norms laid down by environmental centred jobs. Similarly, extrovert needs
the organization. self-governing style of management and introvert needs
Social man model is ready to lend a hand in more directives oriented management. Therefore, this
proposing the organizational structure, communication theory is used in increasing the organizational strategies
techniques, motivation systems and rewards. It to deal with individual workers for rising organisational
suggested that an organizational structure is based on effectiveness.
workers anxiety and self-determination oriented rather Q. 6. ‘Personality is shaped by the physical
than severe separation of labour as recommended by structure of the body’. Elucidate.
the rational economic model. The manager should be Ans. William Sheldon has put forward three types
catalyst, supporter and creator. His attitude is imaginary of personality based on the human anatomical or
and should be democratic or consultative in order to physical structure of persons and psychological
motivate the group. There should be a two way distinctiveness. Physical size of the body manipulates
communication. The behaviour is analysed with the human behaviour and character. The various
reference to groups. personality types are:
Therefore, according to this model greater output (i) Endomorph: The definite characteristics of
should be achieved by giving more consideration to personality and behaviour related to the body type are
employee’s welfare and distracting the system to friendly, concern to people, helping others in troubles,
workforce concern than only towards organization. very slow reaction to stimuli. They seek console; have
Q. 5. Explain the personality traits used to strong preference for delicious food, etc. The persons
determine introvert and extrovert personality. who possess these personality characteristics, are
Ans. Carl Jung has given the theory of introvert accepted and appreciated by everybody.
and extrovert personality. This theory was used as a (ii) Mesomorph: People who have reasonable
methodical psychology approach. According to this physical individuality are known as Mesomorph. Their
theory, personality is urbanized as a process of body is strong and tough. Some of the personality
originality. It consists of four stages: thinking, feeling, uniqueness of this category are that they seeks physical
adventure, enjoys body building, feels restless, shows demands of the organisation. Organisations prefer those
high aggression and self-assertiveness, likes to take risk employees who possess these set of qualities in them
and develops competitive spirit. The person is and are known as emotional intelligence. Emotional
appreciated by virtue of his body type. Intelligence can be explained as an assortment of non-
(iii) Ectomorph: Ectomorph body type is cognitive skills, capabilities and competencies that
categorized as thin with flat chest. These individuals influence a person’s ability to succeed in coping with
are usually intelligent, feel shy and avoid social contacts. environmental demands and pressure. It is composed
Though, they are typically anxious, ambitious and of five elements and they are self-awareness, self-
dedicated to their job. They are swift in responding management, self-motivation, empathy and social skills.
and are oversensitive to pain and pleasure. (ii) Decision-Making: In organisations, decision-
Q. 7. What are emotions? Explain the making plays integral part for every employee. If the
applications of emotions. decision-making has to yield intended result then it has
Ans. Emotion can be characterized as an to be rational. In decision-making process, emotions like
expression of a feeling of fear, anger, joy, love, hate, fear, anxiety, frustration, doubt, excitement, anger, stress,
grief, frustration, satisfaction or any other similar coolness etc., dominate the rationality. The managers
feelings. An emotion is a psychological aspect of an who overlook the importance of negative emotions in
individual and is related to the inner feelings expressed the decision-making will also be overlooking number
in a situation. The individual develops an inner feeling of alternatives. The managers will also overlook
whenever he experiences stimuli. The inner feelings are information processing rather use more intuitiveness in
expressed in the form of facial expressions, verbal the decision-making. Positive emotions increase the
sounds and body actions. The concept of “emotions” ability to solve complex problems and also help in
plays vital role in understanding the behaviour of dealing with the complex persons. The emotional
employee in an organisation. According to Stephen P. stability is required in the process of group decision-
Robins, emotions are described as intense feelings that making to develop a feeling in the employee that their
are directed at someone or something. The suggestions are considered appropriate for arriving at a
understanding of emotions requires two components and final decision.
they are affect and mood. Mood is a wide range of The managers who can balance between rationality,
feelings that people experience while moods are the intuition and emotions are likely to make sound
feelings that tends to be less intense than emotions and decisions that can be acceptable to their fellow
that lack a contextual stimulus. subordinates.
The managers in the organisation use the knowledge (iii) Leadership: Leadership is directly related with
of emotions for directing their subordinates in effective communication of directions, motivation of subordinates
manner for the accomplishment of organisational goals and resolving inter-personal conflicts. Emotions play a
and objectives. Emotions are considered to be important essential role in all these aspects and they can be
determinants of employee behaviour in the explained as follows:
organisations. (a) Communication: Communication is the
The applications of emotions in organisations are process of transmitting the message to others in an
as follows: intended manner. It was observed that appropriate use
(i) Employee Selection: The interpersonal of words, medium, language, technology and
attraction and working together with the group are environment do not convey the message rightly. The
becoming popular in the organisations. The appropriate use of facial expressions, body moments
organisations prefer for the individuals who possess the and tone of the communication was considered efficient
ability to cooperate with others. The basic requirements manner of conveying the intended message. It was
for the success in any job are the factors like ability to closely related with the emotions of the sender. In this
adjust with job demands, environmental pressures and way, leaders will be able to convey sense of
cooperating with others. In other words, emotional effectiveness, competence, optimism, and enjoyment
stability signifies the controlling aggression in an and energise their subordinates by their excitement,
individual. The employees often cover up their real enthusiasm and communication of emotional
emotions and displays emotions that are suitable to the attachment.
(b) Motivation: Motivation is a psychological applications of emotions in an organization. The

aspect and can be explained as the feeling of an inner applications of emotions in organisations are as follows:
drive and enthusiasm to act in a pre-determined way to (i) Employee Selection: The interpersonal
achieve the desired results or outcomes. The emotions attraction and working together with the group are
influence the desired outcomes and managers use becoming popular in the organisations. The
emotional content to motivate their subordinates in a organisations prefer for the individuals who possess the
proper direction so that they achieve desired outcome. ability to cooperate with others. The basic requirements
(v) Inter-personal conflicts: The conflicts arise for the success in any job are the factors like ability to
due to the misunderstanding of communication in the adjust with job demands, environmental pressures and
situations of emotions between two or more individuals cooperating with others. In other words, emotional
in an organisation. It is believed that emotions are stability signifies the controlling aggression in an
interwoven in conflicts and these emotions do not appear individual. The employees often cover up their real
outside in a situation of conflict. The managers need to emotions and displays emotions that are suitable to the
address the emotional component in order to resolve demands of the organisation. Organisations prefer those
the conflict. It enhances harmony among the employees who possess these set of qualities in them
subordinates. On the other hand, dealing with the task and are known as emotional intelligence. Emotional
and structural aspects of the conflict alone does not Intelligence can be explained as an assortment of non-
rectify the conflict. It is important for managers in the cognitive skills, capabilities, and competencies that
organisations to consider the importance of emotions influence a person’s ability to succeed in coping with
in the resolution of inter-personal conflicts. environmental demands and pressure. It is composed
(vi) Management of Change: Change is a common of five elements: they are self-awareness, self-
occurrence in every organisation and employees refuse
management, self-motivation, empathy and social skills.
to go along with change due to ambiguity in the goals.
(ii) Decision-Making: In organisations, decision-
It results in the fact that emotional attachment to the
making plays integral part for every employee. If the
goals brings out positive attitude towards change. The
decision-making has to yield intended result then it has
managers extracts out positive response to change by
to be rational. In decision-making process, emotions like
the evocation, framing and mobilisation of emotions.
fear, anxiety, frustration, doubt, excitement, anger stress,
As a result, proper linking of emotions with the change
coolness etc., dominate the rationality. The managers
is essential for bringing down the resistance to change.
who overlook the importance of negative emotions in
(v) Deviant Workplace Behaviour: There are
the decision-making will also be overlooking number
occasions when emotions influence the moods and as a
of alternatives. The managers will also overlook
result employees engage themselves in involuntary
information processing rather use more intuitiveness in
actions of deviations of norms, rules, authority and cause
the decision-making. Positive emotions increase the
damage to the organizational property. The boss’s
absence is also one of the ways of employee deviation. ability to solve complex problems and also help in
Some of certain observed deviations are slow working, dealing with the complex persons. The emotional
sabotage, politicking, recriminations, harassment, stability is required in the process of group decision-
aggressions etc. The negative emotion of enviousness making to develop a feeling in the employee that their
in individual behaviour is the other cause of anxiety suggestions are considered appropriate for arriving at a
and stress in the individuals. It is bitterness for not final decision.
possessing something that is strongly desired and it is The managers who can balance between rationality,
promotion of positive emotions that controls negative intuition and emotions are likely to make sound
emotions of enviousness. decisions that can be acceptable to their fellow
Q. 8. ‘Emotions are essential determinants of subordinates.
behaviour. They are variedly applied in (iii) Leadership: Leadership is directly related with
understanding organisational behaviour’ Discuss. communication of directions, motivation of subordinates
Ans. It is true that emotions are the essential and resolving inter-personal conflicts. Emotions play a
determinants of behaviour which can be very well essential role in all these aspects and they can be
understood and analyzed by evaluating the various explained as follows:
(a) Communication: Communication is the Some of the certain observed deviations are slow
process of transmitting the message to others in an working, politicking, recriminations, harassment,
intended manner. It was observed that appropriate use aggressions etc. The negative emotion of enviousness
to words, medium, language, technology and in individual behaviour is the other cause of anxiety
environment do not convey the message. The and stress in the individuals. It is bitterness for not
appropriate use of facial expressions, body moments possessing something that is strongly desired and it is
and tone of the communication was considered efficient promotion of positive emotions that controls negative
manner of conveying the intended message. It was emotion of enviousness.
closely related with the emotions of the sender. In this Q. 9. Critically examine the psychoanalytic
way, leaders will be able to convey sense of theory and self theory of personality.
effectiveness, competence, optimism, and enjoyment Ans. The psycho-analytic theory was developed by
and energise their subordinates by their excitement, Sigmund Freud. According to Freud, human mind
enthusiasm and communication of emotional comprises of three elements that are responsible for
attachment. shaping the personality of an individual. They are
(b) Motivation: Motivation is a psychological preconscious, conscious and unconscious elements. The
aspect and can be explained as the feeling of an inner unconscious state of mind is influenced by hedonistic
drive and enthusiasm to act in a predetermined way to principle while unconscious state of mind determines
achieve the desired results or outcomes. The emotions behaviour. Lastly, the conscious element is directed by
influence the desired outcomes and managers use reasoned reality principle. He developed a structure of
emotional content to motivate their subordinates in a human mind for explaining personality. According to
proper direction so that they achieve desired outcome. him, it is maind consists of three elements known as:
(c) Inter-personal conflicts: The conflicts arise Id, Ego and Super ego.
due to the misunderstanding of communication in the (i) The Id: It is the totality of instincts that are
situations of emotions between two or more individuals oriented towards increasing pleasure and avoiding pains
in an organisation. It is believed that emotions are and striving for immediate satisfaction of desires. On
interwoven in conflicts and these emotions do not appear the foundation of Id, the personality characteristics of
outside in a situation of conflict. The managers need to an individual are built.
address the emotional component in order to resolve (ii) The Ego: It is the executive part of the
the conflict. It enhances harmony among the personality Ego is rational and logical and selects the
subordinates. On the other hand, dealing with the task features of the environment and stores them. It works
and structural aspects of the conflict alone does not as the conscious mediator between realities of world
rectify the conflict. It is important for managers in the and the id’s demands.
organisations to consider the importance of emotions (iii) The Super Ego: It is a moralistic segment of
in the resolution of inter-personal conflicts. human personality that comprises of noblest thoughts,
(iv) Management of Change: Change is a common ideals, feelings that are developed through absorption
occurrence in every organisation and employees refuse of cultural values and attitudes.
to go along with change due to ambiguity in the goals. (iv) The Libido: The Libido is a psychic energy. It
It results in the fact that emotional attachment to the is dynamic and makes any system to function.
goals brings out positive attitude towards change. The According to this theory, wishes are generated by
managers extracts out positive response to change by the Id and it compels immediate gratification of these
the evocation, framing and mobilisation of emotions. desires or else tension is generated for their gratification.
As a result, proper linking of emotions with the change It tries to gratify them by primary process and reflex
is essential for bringing down the resistance to change. action.
(v) Deviant Workplace Behaviour: There are For example, if an employee is negative, the
occasions when emotions influence the moods and as a superior scolds him for not performing the given task.
result employees engage themselves in involuntary He gets hurt by their words and since he cannot be
actions of deviations of norms, rules, authority and cause inconsiderate with the superior, he tries to bear
damage to the organizational property. The boss’s discomfort by withstanding his emotion. He does this
absence is also one of the ways of employee deviation. by break up his tooth and bears it. If he fails to endure
his emotion he tries to share the emotions with his close Ans. Social learning theory was developed by
friends. Albert Bandura it explains that personality is single-
This is called as primary process to conquer the minded by the circumstances in which a person interacts.
nervousness. If the primary process fails, energy flows According to the theory, a person’s behaviour is strong-
to ego, which provides sensitivity, thinking, judgement minded by the modelling and observational learning
and memory. Then individual decide for a particular from the environment. An individual interacts with the
action. On the other hand, while relating to the surroundings. He observes and replicates the stimulus
secondary process super ego acts as a judge. Thus, in the situation. He practices certain cognition. This
wishes are fulfilled by ego according to the values cognition is kept hold of. When the same circumstances
established by super ego. If ego is able to put together are reinforced he demonstrates actions. These actions
id and super ego individual gets satisfaction, otherwise are called behaviour.
it results into frustration because super ego tries to punish Bandura explains that it is largely from side to side
the ego. To carry on the example, the employee tries to and according to their actions that group produces the
introspect himself and learns to work to avoid any environmental conditions that affect their behaviour in
uneasiness in the potential. This theory is supportive in a reciprocal fashion. The experiences of the behaviour
accepting the character of an individual. also partially decide what an individual becomes?
Self theory was recommended by Carl Rogers. It In accumulation, what he can do? Which in turn
is also identified as Organism theory or Field theory. affects subsequent behaviour?
Social learning theory gives valuable insight into
The theory emphasises person as an initiating, creating,
understanding of personality. The theory thinks about
and influencing the determinant of behaviour within the
environment as determinant of behaviour, rather than
environmental framework.
an insensible element, which is considered as
Elements of self-theory are explained below:
determining behaviour. Therefore, it proposes that by
(i) Organism: Organism is the person. It is the
calculating situation, behaviour can be customized
storage space of all experience. Therefore, it forms locus appropriate to organisational process.
of orientation. It is guided by cognizant and insensible Q. 11. ‘Personality development takes place in
elements. Therefore, the individual behaviour is the various stages and a host of factors influence the
reason for self-evaluation and experiences. development’ Discuss.
(ii) Phenomenal field: Phenomenal field signifies Ans. Personality characteristics of workers are used
entirety of all understanding assembled by ecological in accepting the behaviour of employees and design
communication. According to the theory, fulfilment of appropriate strategies to deal with their behaviour. The
self-actualization requirement is the basic motivator. It traits that manipulate the behaviour in organisations are:
is prohibited by surroundings in which a person lives. (a) Authoritarianism: Authoritarianism is an
(iii) Self-concept: Self-concept is the result, which attribute use to explain the personnel having certain
forms foundation for personal behaviour and negative attitude about the work and personnel. Taking
individuality. Self is a mixture of perception, attitude, this idea, behaviour of employees in organisation is
idea, values and traits. It characterizes the concept of explained by using the following traits:
‘I’ and “Me”. In this context, ‘I’ indicates one’s own ● To believe in the formal authority.
psychological process. Therefore, it is called personal ● To compel obedience to the authority.
self. ‘Me’ is related to the thinking of an individual as ● To adhere to the conventional values and
to how he appears to others. Consequently, it is called does not give preference to the new ideas.
social self. As a result both personal self and social self ● To conform to the rules and regulations.
determine individual behaviour. ● To believe in directing the subordinates than
Self-theory provides precious direction in accepting listening to them.
behaviour. The theory is organized approximately for ● Try to be rigid and prefers structured
the person and not around situation, which is environment.
unmanageable. After considering these attribute traits, a leadership
Q. 10. How does social learning theory help in style of higher level was developed, known as
shaping of personality? authoritarian.
Workers with the authoritarian attributes will People having internal locus of control are
control esteem and attain creation targets in the short victorious in the sophisticated jobs. Jobs having
run. In the end, these people cannot preserve the level professional and decision-making nature require
of motivation and contentment. multifaceted information meting out ability, needs quick
(b) Locus of Control: Locus of control is the learning, initiative and independence of actions are
conviction concerning the result of their actions. There suitable to the people having internal locus of control.
are people who believe that their skills and abilities On the other hand, people include external locus of
manipulate the result of the action. Others consider that control are appropriate to well-structured and routine
some external factors like fate or chance influence their jobs. They are also victorious in those jobs that required
result. According to Robbins, persons who consider that to comply the instructions.
they control what happens to them are called internals (c) Machiavellianism: It refers to the degree of
and individuals who believe that what happens to them individual attempt to increase control over
is controlled by outside forces such as luck or chance organisational tasks. According to Robbins,
are called externals. Certain implications of locus of Machiavellianism it is the degree to which an individual
control behaviour of the individuals in organisations are is sensible, maintains emotional distance, and believes
described below: that ends can justify means. The characteristics of
(i) Absenteeism: People having interior locus of Machiavellianism personality attributes are:
control have confidence that the health is under their ● They are active to participate in
control. They develop good health lifestyle and take organisational politics.
good care of their health. Therefore, they have lower ● They manipulate more, win more and
rate of illness. Consequently, absenteeism is less in these persuade less.

● They are adept at interpersonal game playing,
groups.
(ii) Turnover: The turnover makes internals to take power tactics and identifying influence
action and, therefore, they might be expected to quit system in organisations.
● They consider ethics.
the jobs more eagerly, but they tend to be more
(d) Self-esteem: Self-esteem is a sensation of
successful on the job and more contented.
partiality or disliking of one-self. It is interrelated to
(iii) Decision-Making: The people who have
the person’s desire for success. An individual having a
external locus of control are more oriented towards
greater desire for success is categorized as high self-
intuitive decision-making. On the other hand, internals
esteem person. He believes that he possesses essential
believe to have more information before taking ability to achieve something. People with high esteem
decisions. They are aggravated by the achievements. are bound to take risk. They choose uncertain and
They would like to manage the result of the assessment. demanding jobs. They have internal locus of control.
(iv) Motivation: Internals have accomplishment They give fondness to pride, recognition, flair, success,
incentive than externals that are just contented with the independence and are satisfied with higher order needs
accessible rewards. than simple monetary motivation.
(v) Job Satisfaction: The groups having external (e) Self-monitoring: Self-monitoring is the
locus of control are more disappointed on the jobs. This capacity to adjust to the situational demands. Persons
is due to the belief that the result is not under their possessing high achievement on self-monitoring
control. In the case of internals, job satisfaction is more examine the behaviour of others from close angle in
due to the belief that outcomes are the results of their order to adjust their behaviour. They like mobility in
actions. their career. They are more successful in discharging
(vi) Psychological Commitment: Externals are not contradictory roles.
much concerned in the jobs. Internals possess obligation (f) Risk taking attitude: Risk taking is an
that is more emotional. approach. Personnel vary in the attitude towards
(vii) Social Interactions: People having internal presuming the risk. The tendency to take risk influences
locus of control are more friendly and thrilled to have the decision-making. High-risk takers are likely to take
social relationships to keep their recognition and rapid decisions.
admiration. ■■
84
Stress Management
9
INTRODUCTION The individual factors that cause stress are
personality, individual differences, family problems
The biological and behavioural disorders in people economic problems, lifestyles and time demands.
are due to the psychological phenomenon called stress. The organisational factors that cause stress in
It is a factor that is related to personality, occupation, individuals are as follows:
age, lifestyles and time demands. It is symptomatic and (i) Poor Working Conditions
is common to both genders. Eustress is a phenomenon (ii) Poor Task Design
that can be termed as positive aspect of stress. The (iii) Unfair Administrative Policies and Strategies
factors that cause stress in the individuals are called (iv) Improper Organisational Structure and
stressors. Extra-organisational are environmental Design
stressors and intra-organisational are individual and (v) Organisational Process and Design
organisational stressors. Organisational factors like poor (vi) Organisational leadership
working conditions, poor task design, group dynamics, (vii) Organisational life cycle
organisational leadership, organisational life cycle, (viii) Group Dynamics.
improper organisational structure and design, unfair The environmental factors that cause stress are as
administrative policies and strategies are responsible follows:
for stress in individuals. The negative consequences of (i) Political
stress are depression, heart attack, cancer, sweating, (ii) Economic
(iii) Technological
frustration, anxiety. Stress management play important
(iv) Legal
role in today’s organisations.
(v) Ecological
SUMMARY (vi) Government and Social
(vii) Cultural and Ethical environment.
Stress is a psychological phenomenon that leads to Eustress is considered to be positive aspect of stress.
biological and behavioural disorders. The general It is observed that mild levels of stress promote good
expression of stress is the loss of emotional stability. performance in an individual. The negative
Stress is directly related to personality, occupations, age, consequences are more than its positive and its
lifestyles and time demands. Stress comes with some psychological consequences are as follows:
symptoms and so it is symptomatic. It is common to (i) Increase in Blood Pressure
both the genders. The prolong stress can result into (ii) Heart Attack
burnout and is treated to be negative. Sometime it has (iii) Cancer
positive consequences and it is called eustress. There (iv) Sweating
are many factors that cause stress in an individual. (v) Frustration
Stressors are the basic factors that cause stress in (vi) Anxiety
individuals. It can be both intra-organisational and extra (vii)Depression.
organisational. Environmental stressors are known as Stress leads to abnormal behaviour and some of its
extra-organisational while individual and organisational behavioural consequences include poor perception,
are intra-organisational. inconsistent attitudes and poor learning. In any
STRESS MANAGEMENT / 85
organization, stress can affect in the form of Ans. Individual stressors are personality and
absenteeism, turnover irrational decision-making, individual differences, family problems, economic
disturbed customer relationships and it gives bad image problems, life-styles and role demands.
to it. (i) Recently, I had a very high work pressure at
The concept of stress management has played vital my office and could not take enough rest at
role in modern organizations. The techniques used in home also due to stress. My mind used to be
individual management have always proved better than over occupied by the office work and could
the organizational management techniques. The various not take rest for a long. It has led me to a
individual strategies are time management, physical mental stress and depression. I had lack of
management, psychological management, yogic, social, sleep, high levels of stress and have been
self-awareness and inter personal management. neglecting myself as well as my family. I
Organizations role in stress management is vital and was not able to streamline my office work
cannot be neglected. They play significant role and along with the work pressure at home.
follow techniques such as proper selection and Finally, I have developed a chronic back pain
placement policy, goal setting, job enrichment and job leading to sodalities due to over work and
design, role clarity, communication and counselling, stress. It was a real stressful time for me. I
career planning and development, democratic am still on medicines because of that stress
leadership, organizational climate and health awareness and strain which I could not take it easily.
programmes. There is need of diagnosing and analyzing (ii) Last month I have been to a seminar, had to
the stressors in order to create a stress free environment. attend it compulsorily. While I was entering
Stress management techniques requires sacrifice of the premises, I could smell of a cigarette and
personal comforts and are not expressive as many other I am allergic to smoke. With the result I
theoretical management techniques. started coughing and it lasted for about 30
minutes. I could not control it and ultimately
CHECK YOUR PROGRESS I had to leave the hall to have a glass of water,
Q. 1. Distinguish between stress and anxiety. but it was not of any use to my condition. It
Ans. Stress is a psychological state and body became worst either and had to leave the
uneasiness. Stress is a general experience. Every person premises without attending the seminar and
experiences stress at various situations. Workers faces subsequently had to take a sick leave from
stress in the procedure of congregating the targets and the office. I had to face a stressful leave
working for extended hours. When an individual because of the allergy that I have with smoke
experiences a control inhibiting the achievement of and tobacco.
wishes and order for achievement, it leads to possible Q. 3. Identify the organisational stressors with
stress. reference to any organisation with which you are
Anxiety is transformed into stress and ultimately it familiar.
leads to job suffer exhaustion. In fact for most of the Ans. Some of the organizational stressors are
time persons are accountable for stress. Nevertheless, boredom, time pressures and deadlines, exorbitant work
organizations also create stress in the persons. Stress is demands and technical problems.
a condition of uneasiness experienced by a person. It is Boredom occurs when a worker is given a stereo
the loss of emotional stability. It is usually evident when type job to be accomplished everyday. The routine
the person experiences a biological disorder. brings boredom to his work life. It amounts to stress in
Stress has a optimistic relationship with the age, his mind as there is no change in the style of working or
life-styles, time constraints and the nature of occupation. nature of work. Such as accounts personnel’s have more
There are some occupations that give stress such as of desk work which is boring at times when there is lot
drivers of vehicles, doctors, lawyers and managers are to do with writing of books or operating the computer
more likely to get stress than teachers, bankers and for entries or issuing salary cheques, etc.
operating personnel. Managers face time pressures when they are
Q. 2. List the individual stressors you have
assigned a targeted work with less of time limit given to
experienced recently.
accomplish them. They need to give more time to the
quality of work than to control the discipline of the Mild stress raise body metabolic and biological
group management. It amounts to lot of stress and rates. The rise in the metabolism leads to secretion of
strain. juices from body glands that increase the internal force
These types of stresses are very common in almost for realization. Achievement motivation comes from
all types of organizations. They need to be handled with deep intention, mild tensions, inner urge, fire and feeling
care and expertise to have good and effective results. of restlessness to achieve objectives.
Q. 4. Give examples of organisational Stress helps in the developing an individual also.
environmental factors of stress. In its mild form it develops job performance, leads to
Ans. Some of the organizational environmental excellence and provides impetus to work hard and
factors of stress are lack of participation in the decision- perform better. Individuals involved in the discharge of
making, lack of responsiveness and appreciation, professional oriented jobs, jobs involving creativity,
pressers towards conformity etc. challenge, interpersonal communications and certain
Lack of participation of workers in the decision- managerial jobs, will be benefited by stress, which leads
making makes them feel down and stressed as they are to positive performances.
not feeling comfortable with their seniors. The active Nevertheless, jobs relating to physical effort do not
participation of subordinates in the decision-making get advantage from stress. The mild levels of stress
adds confidence in them. They feel motivated to work amplify job performance. It inspires body and increases
better as they feel the part of the organisation by being reactivity. Therefore, people tend to perform better and
given a chance to express their view points. swiftly.
Lack of responsiveness and appreciation also leads The positive consequences are: increased
to stress in workers. The work accomplished by them productivity, positive response to target, development
is not appreciated or suitably rewarded will drive the of proper perception in the decision-making, increased
subordinates towards stress. Proper response and motivation and performance, increased adaptability to
rewards should be given to make them feel job satisfied. change and increased quality of job performance. For
Q. 5. Identify the forms of eustress. instance, employee experiencing a moderate stress of
Ans. A person experience stress through affecting
repetitiveness on the job finds new ways of discharging
emotions and is dispersed through physiological
jobs. Thus, stress promotes creativity in the employees.
breakdown or biological changes. Though, stress is not
Q. 6. List out the consequences of stress in any
pessimistic forever. Stress has also positive results The
organisation with which you are familiar.
positive form of stress is known as eustress.
(i) Physiological (ii) Psychological (iii) Behavioural (iv) Organisational.
Ans.
Physiological Psychological Behavioural Organisational
Blood pressure Tensions Inter personal conflicts Absenteeism
Heart disease Anxiety Adverse work performance Turnover
Dry mouth Boredom Lack of motivation Decision-making
Frustration Aggressiveness Not able to adapt Disturbed
the changes quickly Customer
Relationships
Anxiety Procrastination
Moodiness
Q. 7. Enumerate the organisational Organisations face the problems of bad performance
consequences of stress. and other negative consequences. Some of them are:
Ans. Organisational Consequences: Stress has (i) Absenteeism: Workers tend to be stressed when
harmful effect on the performance of the job. they are found to be addicted to drugs and alcohol.
Therefore, they keep themselves refrain from the jobs. Q. 9. Enumerate individual’s management
It leads to discontinuity in the jobs and adversely affects techn-iques for managing stress.
the performance of other workers. Ans. The techniques for managing stress of
(ii) Turnover: Turnover and stress have exposed a individual’s management are:
number of relations. A worker experiencing constant (a) Time Management
stress develops repulsion and irritation. So, they tend (b) Physical Management
to change the jobs quiet often. (c) Psychological Management
(iii) Decision-Making: Extreme stress disfigures (d) Social Management
perception of managers. This badly affects their aptitude (e) Self Awareness Management
to take decision. Therefore, stressful manager becomes (f) Inter-Personal Management
unreasonable in the decision-making. This leads to loss Q. 10. How democratic leadership style is helpful
of organisational resources and reputation. in reducing the stress?
(iv) Disturbed Customer Relationships: Workers Ans. Democratic leaders build confidence in the
facing too much stress develop irritation, looses subordinates and permit contribution in the decision-
making process. They generate an atmosphere of
emotional stability and emotional tolerance. Intolerance
warmth, friendship, and supportive climate. Under such
forces them to pick up disagreement easily due to
environment workers feel contented, motivated and
misunderstandings. Workers dealing with the customers
psychologically committed to the achievement of
and the public disturb relationship due to their impatient
objectives. In addition, communication is open, conflicts
behaviour. For instance sales persons, bank employees,
are avoided and coordination improved. This enables
public relation executives are required to be more employees to relieve stress and promote healthy work.
emotionally stable. Otherwise, customers dealing with Q. 11. How job enrichment and job design are
them will have trouble in dealing with the company. used to manage the stress?
This also creates poor impression on the corporate image Ans. Job enrichment offers inspiration to the
of the organisation. workers. It enriches various job factors such as
Q. 8. Mention the principles of time management responsibility, recognition, and opportunity for
you observe in your daily life to reduce stress. advancement, growth and self-esteem. It is observed
Ans. Time management and stress are inversely that routine, unstructured and poorly designed jobs cause
associated with each other. Inappropriate and greater stress in individuals. Job redesign gives more
underprivileged management of time are the root cause accountability, meaningful work, autonomy and
of a larger degree of stress. Inappropriate and insufficient improved feedback. This helps in maintaining greater
use of time is the basis of nervousness. control over work activities and reduces dependence
The following principles of time management can on others. As a result, job enrichment and job redesign
help in combating stress are: provide a successful method of reducing stress.
(i) To identify and list the daily activities in a
logical order. TERMINAL QUESTIONS
(ii) To arrange the activities of the day based on Q. 1. ‘Stress is both physiological and psych-
significance and urgency. ological’. Discuss with examples.
(iii) To prepare reasonable schedule of activities. Ans. Stress is an adaptive response, to be reconciled
(iv) To analyze and understand the every day by a person’s characteristics and the psychological
cycle and environment of the job. procedure that is the result of any exterior action,
(v) To allocate the time properly to various situation or event that places special physical and
activities based on time demands. psychological demands of a person. Schuler defines
(vi) To delegate the minor tasks to the stress as a self-motivated state in which a person is
subordinates in order to make use of the time dealing with an opportunity, constraint or demand
in a better manner. related to what he or she needs and for which the
(vii) To discourage unwanted visitors. outcome is supposed to be both uncertain and important.
(viii) To set the incomplete tasks on the top of list Stress has both psychological and physical aspect. It is
for tomorrow. familiar to both the genders. It is the outcome of the
deviation of prospect from genuine state of affairs. It is To relax the mind by doing meditation, hypnosis
indicative of various tensions physically as well as and biofeedback as they enable to reduce mental
mentally. Stress becomes visible with the symptoms. If tensions. Meditation is observed noiselessly sitting on
the potential stress is ignored it leads to actual stress. It the ground taking deep inhalation and chanting mantra.
occurs only when an individual feels intervention of the It helps to take the mind into deep relaxation. It enables
internal or external factors. Stress is connected to the to relax the muscles and mind. It also brings important
attitude of the person. Stress is linked with certain changes in heart rate, blood pressure, lung capacity and
biological disorders such as heart attack, stroke, diabetic, other biological organs of the body. Transcendental
blood pressure, neurological disorders etc. Stress is meditation, Soul management, Atma yoga,
caused when an individual has needs, desires, wishes Anthahakarana. It is one of the greatest tool to stress
and expectations and certain forces prevent. All these buster.
factors determines the fact that stress is both physiological Q. 3. Examine intra-organisational factors of
as well psychological. stress. How do they influence the organization?
Q. 2. ‘Stress is moderated by anxiety and Ans. There are various intra-organizational factors
burnout’. Discuss with examples. of stress, i.e they are:
Ans. Organisations help in easing out various 1. Individual Factors, and 2. Organisational Factors
programmes to help in reducing the stress. The 1. Individual Factors: There are some individual
theoretical management of stress should be eminent from factors, which are the basis of stress such as personality
practical management. The various individual and individual differences, family problems, economic
techniques correlate to the personality of the individuals. problems, life styles and role demands.
There are certain techniques that demands individuals (i) Personality and individual differences:
to sacrifice the self-concept and comfortable levels. So, Person’s basic nature is the main reason for potential
it becomes difficult to promote the individuals to adapt stress. Introversion, extroversion, masculinity, rigidity,
the stress reduction strategies. It has to be understood locus of control, personal life, demographic differences
that it is not an impossible task. To create a stress free such as age, health, education and occupation are some
of the reasons causing stress in individuals. Person’s
environment, it requires a thorough investigation of the
age, health problem, education, nature of occupation
stressors, understanding, analysing the implications,
and the level of satisfaction are also some of the main
appraising the costs and benefits and above all bring
determinants of individual stress factors.
commitment to the programmes by changing the attitude.
(ii) Family Problems: Family matter influences the
Anxiety is transformed into stress and ultimately it
individual’s life a lot. Healthy marital relations, marital
leads to job suffer exhaustion. In fact for most of the
regulation, early, hale and healthy children may lead to
time persons are accountable for stress. Nevertheless,
cheerful life. They have the benefit of enjoying the life
organizations also create stress on the persons. Stress and grown to be positive in their attitudes. As a result
is a condition of uneasiness experienced by a person. It they do not have much stress. On the other hand, meager
is the loss of emotional stability. It is usually evident marital relationships, irritating wife, family separations,
when the person experiences a biological disorder. extra marital relationships, disturbing children, poor
To handle the stress means to know the biological settlement of family members, aging parents, dual
and body situation. In order to examine the hereditary working couple, death of spouse or other close family
uniqueness habits like smoking and drinking, life-styles member are some of the reasons for greater stress in the
and body conditions help in understanding the personal life of a person.
physiological conditions. By managing physiological (iii) Economic Problems: Economic complexities
relaxation one can overcome stress. Physical exercises are the main reasons of stress. Mis-management of
might be immediate or practical. Non-aggressive individual finances, heavy family expenditure, and
physical exercises like walking, jogging, swimming, constant demand for money, poor incoming earning
riding, aerobics and playing games significantly capacity and slow financial growth in the job are some
increases heart capability, provide mental diversion from of the economic causes for stress. For example, an
work pressures and increases heart competence to increasing family expenditure, increased expenditure on
survive stressful situations. The probability of heart children education and health create heavy demand for
attack, adverse blood pressure and diabetics reduce. income. This creates greater stress in the person’s life.
(iv) Life styles: Life styles of individuals may be (ii) Organizational Tasks: Organizational tasks are
one of the causes of stress. It can be due to sedentary planned to assemble the objectives and goals. Badly
life-style, persons facing exceptional situations may be designed tasks lead to bigger stress. Task independence,
forced to change their attitude, emotions and behaviour. task inter-dependency, task demands, task overload are
These are the life disturbances which are usually the some of the possible reasons for stress in organizations.
causes of potential stress of a person. Greater the assignment interdependence, greater is the
(v) Role Demands: Persons play numerous roles coordination required. This needs the workers to adjust
in their private life and organizations. In their personal themselves with the co-workers, superiors, and
life, they have the roles of family head, husband, father, subordinates, irrespective of their liking. They are likely
brother and son. In social life they play the roles of club to communicate, coordinate, exchange views, with other
members, informal community group members, people irrespective of caste, creed, gender, religion and
members of recreation groups, religious groups and a political differences. The main reason for the degree of
number of other social groups. In the same way in stress is adjustment and poor tolerance.
organizations, employees play the role of superior, (iii) Administrative Policies and Strategies:
subordinate, co-worker, union leader, informal group Workers stress is linked with definite administrative
leaders etc. By the way, all these roles are performed strategies followed by the organizations. Down sizing,
competing pressure, unfair pay structures, rigidity in
concurrently. Therefore, they become the basis of
rules, job rotation and ambiguous policies are some of
anxiety and emotion. Another possible reason is role
the reasons for stress in organizations.
conflict. It arises due to the role sensitivity, role
(iv) Organizational Structure and Design:
ambiguity, role overload and role overlapping. Role
Organizational structure is planned to smoothen the
ambiguity and stress are absolutely associated to each
progress of person’s communication in the realization
other.
of organizational goals. Some of the aspects of design
2. Organizational Factors: An organization is a
are specialization, centralization, line and staff
grouping of assets, goals, strategies, and policies. In
relationships, span of control, and organizational
order to create groups to work, organisations generate communication can relentlessly create stress in
structure, process and working conditions. In modern organizations. For example, wider span of management
organisations, number of factors generates an compels the executive to manage large number of
environment of stress. The altering environmental subordinates. This can lead to bigger stress. Likewise,
dynamics, globalisation, organisational adjustments like frequent line and staff conflict lead to obstacles in the
mergers and acquisitions directs towards stress. A work performance. Thus, incapability to resolve the
number of in-house organisational factors cause worker a conflicts lead to stress.
stress. Some of the factors are: deprived of good working (v) Organization Process and Styles: A number
conditions, strained labor management relations, disputed of organizational processes are planned to successfully
resource allocations, co-employee behaviour, meet the organizational goals. Communication process,
organizational design and policies, unpleasant leadership control process, decision-making process, promotion
styles of the boss, misunderstandings in organizational process, performance appraisal process, etc. are
communication, bureaucratic controls, improper designed for realizing organisational objectives. All
motivation, job dissatisfaction, and less attention to merit these processes bound the scope of functioning of
and seniority. employees. Inappropriate design of various organisational
Some of the organizational stressors are: processes leads to stressed relationships among the
(i) Working Conditions: Working situation and workers. They can cause de-motivation and job
stress are inversely connected to each other. People dissatisfaction. As a result, workers feel strained in
working in meager working conditions are subject to adjusting to the method.
greater stress. The factors that lead to additional stress (vi) Organizational Leaderships: Top
are densely occupied work areas, dust, heat, noise, management is accountable for the formation of sound
polluted air, strong odour due to toxic chemicals, organization climate and culture by suitable
radiation, poor ventilation, unsafe and dangerous administrative approach. The climate should be tension
conditions, lack of privacy etc. free, fearless, and with no worry. Demanding leadership
style forms a dictating environment in which employees governmental, social, cultural and ethical. Some
are under pressure to reach the target. They work under proposals relating the impact of environment on stress
unfriendly relations and stiff controls. This generates are:
bigger work stress to workers. On the other hand, a (i) The political party in power acts according
climate of affectionate and sociability, scope for to the legislation in the Parliament. The
participation in decision-making, non-financial moment new laws and regulations are
motivation and flexibility are encouraged under introduced by the new political party; the
democratic leadership style. This reduces the stress of political changes bring vagueness in the
the workers. Hence, employees working under situation. This forces the workers to adapt
demanding leadership styles experience stress as the new legal order and thus creates stress.
compared to employees working under independent (ii) Economic environment is related to the
leadership style. income levels, demand and supply, inflation
(vii) Organizational Life Cycle: Each organization etc. Transformation in these factors may need
goes through four stages of organizational life cycle; more work or better approach to cope up with
they are birth, growth, maturity and decline. In every the environment. This generates stress when
stage the structure and the design of organization the workers are not capable to regulate the
experience frequent modifications. In addition, human new circumstances.
beings are subject to transformation to adjust to the (iii) Technological changes introduce new
stages in the life cycle. In this procedure, workers are techniques of production and new ways of
conducting the organizational responsibilities.
focussed to job stress.
Workers are required to learn new skills in
(viii) Group Dynamics: Groups are there in every
order to fulfil their jobs successfully. If the
organization. Groups occur out of intrinsic desire of
workers are unable to manage the new
human beings and impulsive reactions of people. In
technology leads to stress.
organizations both formal groups and informal groups
(iv) Legal environment consists of difficult
are there. A formal group survives in the form of
network of laws and regulations which is
committees, informal group exists among different levels
planned to control the business.
of organization. Groups have a number of functional
Organizations are mandatory to pursue the
and dysfunctional results. They provide social support
legal requirements or else they are subject to
and fulfilment, which is accommodating to give relief
action. Practical difficulties take place in the
to the stress. Simultaneously, they turn out to be the completion of the legislative framework.
basis of stress also. Lack of cohesiveness, lack of social Workers who are not able to react
support, lack of recognition by the group and appropriately to the laws and regulations are
irreconcilable goals leads to stress. bound to fall under the clutches of stressful
Q. 4. What do you mean by the extra situation.
organisational stressors? Discuss various extra (v) The government is implementing legislation
organisational factors which create stress in the to shield the ecological environment of the
organisation. country. Similarly, organizations are forced
Ans. The extra-organisational factors of the to adapt the legislative structure defending
organisation are: the ecological environment. It leads to
1. Environmental Factors: Environmental factors potential stress as there is lot of pressure in
are called extra-organisational. However, they generate protecting the ecological environment of the
job stress in the persons. These are internal as well as organization.
external factors. Some of the internal environmental (vi) Government administration is balanced with
factors are related to the organizational goals, the administrative mechanism and
management systems, structure, processes and design institutions that implement the laws,
of organizations. regulations, policies and other government
External environmental factors are related to the instructions. The technical practices of the
universal environment of the organization such as managerial equipment can lead to stress in
political, economical, technological, legal, ecological, the management.
(vii) Social, cultural and ethical environment can Nevertheless, in the modern organizations the
get stress in the persons. Social factors negative consequences of stress are creating more
controls the life-styles of workers. Some of troubles. According to Schuler, Khan and Byosiyere,
the social security measures such as health stress leads to high blood pressure, ulcer, cancer,
protection, civic facilities and social groups accident proneness and irritation. Although there is no
helps in reducing stress in the employees. perfect relationship between stress and its consequences,
There are certain sociological variables such stress itself reveals into physiological, psychological,
as race, sex, social class, gender etc., and behavioural, job and organizational consequences.
cultural factors such as beliefs, customs and The positive and negative consequences are
traditions which causes potential stress. discussed below:
There are many other environmental factors (i) Physiological Consequences: Stress controls
resulting in stress in recent times are stock market the biological system of the human being. Some of the
crashes, frequent elections, down sizing, information forms of stress are increased blood pressure, proneness
technology and the related changes in the business. to heart disease, cancer, sweating, dry mouth, hot and
Career oriented couples, racial and gender discriminations. cold flashes, frustration, anxiety, depression, increased
Q. 5. ‘Stress has positive consequences and level of cholesterol, ulcer, arthritis etc. Physical stress
negative consequences. Negative consequences have adds to the body metabolic rate. This results into out of
adverse impact on biological, psychological and order of internal gland and as a result there is a body
behavioural systems, apart from organisational disorder. This is experienced in the form of increasing
systems’. Explain. heart beating, increase in breathing rate and headache.
Ans. A person experience stress through This leads to biological sickness. The physical stress
psychological emotions and is developed through also leads to psychological troubles. In fact, physical
physiological breakdown or biological changes. stress and physiological disorders are interrelated.
Nevertheless, stress is not always negative. Stress also Though, physical disorders and stress should not be
has some positive consequences, and this type of stress associated positively. This is because of difficulty of
is known as eustress. indication of physical stress and lack of objective
Mild stress raises body metabolic and biological dimension of force of stress on physical disorders.
rates. The rise in the metabolism leads to secretion of (ii) Psychological Consequences: Psychological
fluid from body glands that will add to the inner drive consequences are interconnected with biological
for attainment. Achievement motivation is the outcome consequences. They are hidden, but affect the workers’
of deep intention, mild tensions, inner urge, fire and job performance. Psychological stress gives strain to
feeling of impatience to achieve objectives. Stress human brain. This is articulated in terms of certain
enables to develop a person also. The mild form of stress
psychological symptoms such as anger, anxiety,
enhances job presentation and leads to quality and
depression, nervousness, irritation, tension, boredom,
provides momentum to work hard and perform well.
aggressiveness, moodiness, hostility and poor
Persons concerned with the release of professional jobs
concentration. Tensions, anxiety, and emotions lead to
such as jobs involving creativity, challenge, interpersonal
procrastination. Psychological stress leads to
communications and certain managerial jobs, will be
interpersonal aggressions, misunderstanding in
advantaged by stress, as it leads to positive performances.
Though, jobs concerning physical effort do not get communication, poor interpersonal communication and
benefit out of stress. Mild levels of stress add to job low interpersonal attraction. This is established through
presentation. It stimulates body and increases reactivity. violent actions like sabotage, increased interpersonal
Therefore, persons perform better and in a fast mode. complaints, poor job performance, lowered self-esteem,
Some of the positive consequences of stress are increased resentment, low concentration on the job and
increased productivity, positive response to target, increased dissatisfaction. Psychological stress produces
development of proper perception in the decision- roughness in the behaviour and can lead to theory of
making, increased motivation and performance, dictatorial leadership style by the managers.
increased adaptability to change and increased quality (iii) Behavioural Consequences: Stress has an
of job performance. Stress also helps in promoting impact on workers behaviour. An abnormal behaviour
creativity in the workers. is experimental in those persons who are lying on the
front to stress. A change in eating habits, sleep disorder, (i) To identify and list the daily activities in a
increased smoking, alcoholism, fidgeting and aloofness logical order.
are some of the behavioural changes observed in (ii) To arrange the activities of the day based on
stressful employees. At times stress leads to anxiety, significance and urgency.
apathy, depression and emotional disorder. This leads (iii) To prepare reasonable schedule of activities.
to spontaneous and aggressive behaviour and frequent (iv) To analyze and understand the every day
interpersonal conflicts. Some of the behavioural cycle and environment of the job.
consequences are under eating, overeating, drug abuse (v) To allocate the time properly to various
and sleeplessness. activities based on time demands.
Q. 6. Discuss individual management strategies (vi) To delegate the minor tasks to the
of stress. Do you think that they can reduce stress in subordinates in order to make use of the time
the organisation? Discuss. in a better manner.
Ans. Stress management is understood to have great (vii) To discourage unwanted visitors.
importance in the modern organizations. In most of the (viii) To set the incomplete tasks on the top of list
organizations, persons are apprehensive with the stress for tomorrow.
decrease. Prevention of stress is always better than to (ii) Physical Management: To handle the stress
make an attempt to cure stress. This is because stress means to know the biological and body situation. In
once practiced has negative consequences. Nevertheless, order to examine the hereditary uniqueness habits like
workers possesses negative view of stress, there is a smoking and drinking, life-styles and body conditions
need to induce reasonable levels of stress for better help in understanding the physiological conditions. By
performance. There is a big gap between hypothetical managing physiological relaxation one can overcome
and real practice of stress management. For example, stress. Physical exercises might be immediate or
doing yoga and physical exercise in the morningis practical. Non aggressive physical exercises like
considered to be very effective way of combating stress. walking, jogging, swimming, riding, aerobics and
On the other hand, how many people really give up playing games significantly increases heart capability,
morning comfortable sleep for the sake of yoga and provide mental diversion from work pressures and
exercises? increases heart competence to survive stressful
Besides all these stress busters there are some situations. The probability of heart attack, adverse blood
techniques to manage the stress of individual’s pressure and diabetics is reduceds.
management they are: (iii) Psychological Management: The majority of
(i) Time Management the stresses take place because of psychological tensions.
(ii) Physical Management As a result, it is recommended that managing
(iii) Psychological Management psychological activities lead to effective management
(iv) Social Management of stress. Some of the psychological management
(v) Self awareness Management techniques are:
(vi) Inter personal Management. (a) Relaxation: To relax the mind by doing
Persons think about mechanical responsibility and meditation, hypnosis and biofeedback as they enable to
keep looking for ways and means of dealing with their reduce mental tensions. Meditation is observed
stress. Persons are usually concerned with their health. noiselessly sitting on the ground taking deep inhalation
There is a rising number of health clinics and health and chanting mantra. It helps to take the mind into deep
consciousness observed due to rise in stress level at work relaxation. It enables to relax the muscles and mind. It
place. Therefore, it is better to adopt some techniques to also brings important changes in heart rate, blood
rectify them, they are: pressure, lung capacity and other biological organs of
(i) Time Management: Time management and the body. Transcendental meditation, Soul management,
stress are inversely associated with each other. Atma yoga, Anthahakarana, are the greatest tools to
Inappropriate and underprivileged management of time stress buster.
are the root cause of a larger degree of stress. (b) Behavioural Self-control: Stress also the
Inappropriate and insufficient use of time is the basis of outcome of behavioural anarchy. Implementing proper
nervousness.
control over behaviour in dealing with others can reduce
The following principles of time management can
the chances of stress in a person. Self-introspection leads
help in combating stress:
to self-awareness of a person. In the same way knowing
the past history and consequences of own behaviour Stage-II: To encourage feed backfrom subord-
facilitate behavioural self-control. Stress can be inates, peers, superiors, friends, family members and
comfortable by increasing proper insight, practicing other social associations. This needs tolerant hearing
good listening, maintaining calm and tension free mind without self-consciousness.
empathy and positive attitude are some of the Stage -III: To develop self-programme to develop
behavioural self-control methods. the skills, capacities to overcome the restrictions in a
(c) Cognitive Therapy: It is a method of clinical logical manner. It can be developed by attending self-
psychology. Cognitive treatment involves significant management-training programmes.
emotions to discharge nervousness and stress. In this (vi) Inter personal Management: It is one of the
method, groups are made to recognize the reasons to be booming techniques of stress management to develop
the basis of stress in them by the procedure of self- inter-personal consideration. Inter-personal
observation. Therefore, with the aid of cognitive therapy, communication, inter-personal attraction and inter
personal knowledge helps in improving the
an encouraging force is formed for the mental fulfilment.
understanding of others behaviour. Most of the
Cognitive therapy facilitates group to exercise self-
organisational stresses are formed due to
control for comforting stress.
misunderstanding, organisational politics, setting one
(d) Yogic Management: In this modern era, yoga
self-aloof from others and encouraging unreliable
is an effectual method of reducing stress. Yoga practice
comments. Therefore, it is better to maintain honest
occupies Asana, Pranayama, Mudra and Kriya. communication and to value proper comment as it allows
Practicing a number of yogasana calm down muscles, development of inter-personal understanding.
decreases blood pressure, controls asthma, relieves Q. 7. How organisations respond to bring down
neurological problems, improves lung capacity, employee stress and make them better use in the
enhances proper flow of blood and helps relax tensions organisation? Elucidate.
and strains. There are some effective asanas which Ans. Stress is positive as well as negative concept.
facilitates to de-stress are pada hasthasana, vajra asana, It has been understood that mild to moderate levels of
sashanka asana, camel asana, lotus asana, crocodile stress helps in developing positive behaviour in the
asana, sarvanga asana, shava asana. organisation and it is good for the organisational health.
(iv) Social Management: To develop excellent The negative consequences of stress always overweigh
societal connections it is better to join group of people the positive ones. It can be concluded that stress
who are good listeners and confidence builders. This reduction is a serious concern to the management as
boosts social hold to persons. It is good to be a part of well as to the individuals. The individual’s responsibility
informal groups to share information without inhibitions, is supposed to be always greater than organisational
developing free exchange of ideas, views and distasteful responsibility because of the saying that protecting ones
experiences, promoting confidence of social support health is their responsibility alone. Organisations help
decrease tensions and stress. Social clubs, recreation in developing out certain programmes that helps in stress
clubs, friendship clubs, informal gatherings, birthday reduction. It has to be mentioned that theoretical
parties, and family are some of the social networks that management of stress has to be distinguished from
increase social support and reduce stress. practical management. The various individual
(v) Selfawareness Management: Self-awareness techniques correlate to the personality of the individuals.
is related to self-audit or personal audit. Managers are There are certain techniques that demands individuals
needed to appreciate themselves in a free and fair way. to sacrifice the self-concept and comfortable levels. So,
They ought to give confidence to communicate openly it becomes difficult to promote the individuals to adapt
and willing to listen to others particularly on their the stress reduction strategies. It has to be understood
that it is not an impossible task. To create a stress free
absence.
environment, it requires a thorough investigation of the
Self-awareness management has three stages they
stressors, understanding, analysing the implications,
are:
appraising the costs and benefits and above all bring
Stage-I: To identify, understand and analyze the
commitment to the programmes by changing the attitude.
skills, capacities, limitations and defects.
■■
94
Motivation
10
INTRODUCTION According to Frederick Herzberg, two factors
determine motivation and satisfaction of employees,
The process of encouraging individuals towards they are: hygiene and motivational factors. According
desired goals is termed as motivation. It can be both to this theory, hygiene factors prevent dissatisfaction
financial and non-financial that helps any individual and motivators alone help in motivating employees.
towards his goals realization. The factors that help Hygiene factors comprises of company policy and
employees in directing their energy towards desired administration, supervision, relationship with superiors,
goals are called motivators. Motivation arises from work conditions, salary, relationship with peers, personal
unsatisfied needs. The motivators lead to satisfaction life, relationship with subordinates, status and security.
and motivation in an employee. After studying human Motivators comprises of achievement, recognition,
behaviour, Merger proposed theory X and theory Y. work itself, responsibility, advancement and growth that
The theory X suggests that rewards, punishment leads to satisfaction and motivation in an employee.
motivates employees to work. The theory Y encourages Merger studied the human behaviour and proposed
developing a sense of self-control and belongingness theory X and theory Y of motivation. According to
in motivating employees. The theory Z by William theory X, human being dislike work and so financial
Ouchi made identical distinction between Western and rewards, punishments, coercion motivates them.
Japanese organisations on the basis of decision-making, According to theory Y, human beings learns to accept
assumption of responsibility, exercise of control, career
responsibility and so developing a sense of
path etc. McCland achievement theory suggested that
belongingness and self-control can motivate them.
motivation can be learnt and taught. Expectancy theory
William Ouchi studied many characteristic of
explained motivation to be process theory as it is a
American and Japanese organisations and proposed
process of encouraging a positive satisfaction.
theory Z of motivation. This theory made identical
SUMMARY distinctions between American and Japanese
organisations with respect to their decision-making,
Motivation is a process of encouraging individuals
assumption of responsibility, exercise of control,
towards the desired goals. It is a psychological force
promotion of opportunities, career paths and concern
that inspires any individual towards goal realization.
for employees or personnels.
Motivation can be financial or non-financial or both in
McCleand proposed achievement motivation
some cases. Manager’s major task is to motivate their
theory that proves a breakthrough success in explaining
employees and energized them towards their
the concept of motivation. It suggested that motivation
organisational goals. Motivators can be defined as those
can be learnt and taught. It identified three basic needs
inducements that help employees in directing their
and they are: need for achievement, need for power,
energy towards desired goal. There are many theories
need for affiliation. It further suggested that achievement
that have been proposed to explain the significance of
can be enhanced with the help of feedback, model
motivation in the organisation.
building, job redesign, change of attitude and
Maslow proposed the need of hierarchy theory of
determining measurable outcomes. This theory
motivation that classified needs as basic, safety, social,
suggested that managers should motivate their
esteem and self-realization. As per this theory,
motivation arises from unsatisfied needs. subordinates by manipulating relationship between
MOTIVATION / 95
motivation and satisfaction and relationship between been human machines and not human beings on this
performance and satisfaction. earth.
Expectancy theory explained motivation as a Q. 2. Mention the different forms of non-
process theory. According to this theory, motivation is financial incentives.
a process of encouraging a positive satisfaction. It stated Ans. According to General Hypothesis, financial
that motivational force as the total sum of the product incentives motivate employees for higher work. On the
valence and expectancy. This theory further established other hand, individuals have variety of needs that they
relationship between effort, performance and rewards want to satisfy while working in the organisations.
by explaining effort-performance relationship, There are certain persons that lay strong emphasizes
performance-reward relationship and reward-personal to socio-psychological needs that cannot be satisfied
goal relationships. by money alone at higher level of managerial hierarchy.
CHECK YOUR PROGRESS So, management provides non-financial incentives to
motivate people in the organisation in addition to
Q. 1. Mention various forms of financial financial incentives.
incentives. It can be concluded that the importance of non-
Ans. Financial motivators can be related to money financial incentive is to provide psychological and
or any other sort of benefits that can expressed or emotional satisfaction rather than financial satisfaction.
converted into monetary unit. In modern times, money For instance, receiving promotion in the organisation
has become prime source of life and becomes an delivers psychological satisfaction. The promotion
important means to satisfy the physical needs. It can forms a good source of psychological satisfaction as it
also be described as an instrument of obtaining social offers better status, authority, more challenging job etc.
position and power. As a result, money has become a The major non-financial incentives include status,
basic incentive for present day individuals. Financial promotion, responsibility, recognition, job security, etc.
motivators comprises of wages, salaries, allowances, Q. 3. List the motivational propositions of
bonus, financial incentives, commission etc. These Maslow model.
enlisted financial motivators motivate individuals to join Ans. The theory based on various needs was
the organisations. The offered financial package should advocated by Abraham Harold Maslow. He identified
deliver motivation for present and prospective five distinct categories of needs and arranged them into
employees. a hierarchy. According to him, individuals wish to satisfy
It can be concluded and understood well that money particular need to a moderate extent and then try to
is not an end but a means of an end. Money can satisfy satisfy the next need in the hierarchy.
both safety and physical needs. There are some persons Maslow identified human needs into five distinct
who pay little heed on money irrespective of their categories and is arranged in the order of their
possession. On the other hand, certain persons are importance forming a hierarchy. The five distinct
continuously driven by the desire to acquire money even categories needs is given below:
if they possessed wealth to satisfy their basic needs. (i) Self Actualization Needs
This insatiable desire can also be to satisfy their (ii) Self-esteem Needs
desire for status, esteem and self-actualization. It can (iii) Social Needs or Belonging and Love and
be revealed that money works like an instrument by Affection Needs
which a person can satisfy various types of needs. There (iv) Security Needs
are some researches and reports that show that money (v) Physiological Needs or Basic Needs.
can be used in satisfying esteem and recognition needs According to Maslow, certain concepts like pre-
as well as for basic physiological needs. potency, deprivation, domination, gratification and
The aforementioned discussion concludes that activation are relevant for understanding the needs. Pre-
money works as a motivator. The role of money in potency can be described as the strength that is
motivation is unquestionable. On contrary, behavioural associated with the needs.
theories lay emphasizes on non-monetary rewards and Physiological needs have greater pre-potency.
suggested that if money only motivates then could have Deprived needs have high pre-potency as deprivation
is the perception of an obstacle for satisfaction of a needs in an individual emerges from the basic urge of
need. Domination is attaching importance to a need. A individuals to associate, belong with others, make
deprived need dominates the individual. In order to friendship, make companionship, desire to be accepted
reduce dissonance or difference of opinion associated by others and seek affection. These types of needs are
with the deprivation, individuals should try to gratify secondary in nature. The propositions relating to social
by undertaking some action. As a result, gratification needs are that these needs are satisfied by symbolic
is the satisfaction of the need. The gratified needs does behaviour and through physic and psychic contact with
not dominate and at the end activation of need determine others in the society. These needs are substantially
infinite and exist till the end of human life. Organisations
motivation. Need satisfaction activates the needs from
should offer scope for formation of informal groups,
one level to next higher levels.
encourage working in teams, and provide scope for
According to Maslow, they repeat as a cycle until
interpersonal communication, interpersonal relationships
the highest level need is satisfied. On the basis of this and interpersonal understanding to motivate employees.
concept, Maslow identified five categories of needs and (iv) Esteem Needs: Maslow considers that group
their role in motivating individuals. looks for growth. They have normal longing to be
They are described below: recognized and appreciated. This nature is called as
(i) Physiological Needs: The physiological needs esteem. Esteem needs are related to self-esteem and
are basic and primary needs required for human esteem from others. The requirement for authority, self-
existence. These types of needs relate to biological and respect, autonomy, self-confidence, achievement,
are required for preservation of basic human life. recognition of competence, knowledge, desire to have
Physiological needs are identified to the human organ freedom, status and secure attention of others,
in the body and can be described as finite needs. These appreciation are some of the esteem needs individual
types of needs are to be satisfied repeatedly till human wishes to satisfy. Maslow had recognized them, as high
being survives. These types of needs are not associated order needs. The nature of esteem needs is that they are
with money alone and comprises of hunger, thirst, sleep, dormant until basic, security and social needs are fairly
shelter, sex and other bodily needs. The suggestion satisfied. Satisfaction of esteem needs produce a feeling
relating to basic needs are that they are primary of self-confidence, strength, capability and adequacy in
motivators to any individual and once they are satisfied, the individuals.
they no longer motivate. The next level need becomes (v) Self Actualization Needs: Self-actualization is
alteration of awareness and dream into actuality.
essential for satisfaction until the basic need is dormant.
Individuals have inner impending to do a number of
The provision of giving adequate monetary rewards to
things unusual from others. Realizing the full inner
satisfy these needs motivate employees in organisations.
possible, one wishes to become what he is able of
(ii) Safety Needs: The individuals seek out for
suitable. To attain the level of completion of self-
protection from natural environment, biological danger, actualization needs is a difficult task as individuals are
economic deprivation and emotional threat from other not clear about their inner potentials until a chance is
beings and animals. He hunts for safety in order to supposed. Besides these needs change with a
protect himself from such factors. The protection can modification in human life. The strength of self-
come in the form of seeking a shelter and forming into actualization modifies over life cycle, vary from person
primary groups to combat threat from the natural beings. to person and surroundings.
The motivational proposition is that the safety needs The following propositions are made about the
dominate as soon as physiological needs are satisfied, motivation of individuals based on the Maslow hierarchy
and after individual seeks to satisfy fairly the security of needs they are:
needs they do not motivate him. Organisations provide (i) Five needs are classified into lower order
fringe benefits, health and accident insurance, housing needs and higher order needs. While
loans etc. to motivate their employees. physiological, safety and security needs are
(iii) Social Needs: An individual is a social being lower order needs, esteem and self-
and cannot survive in isolation and silence. So, he needs actualization needs are advanced needs.
to develop and establish relationship with other human (ii) Lower order needs are fulfilled externally and
beings and some time wish to rear animals. The social advanced needs are pleased on the inside.
MOTIVATION / 97
(iii) Individuals start fulfilling lower order needs from country to country and from situation
first and carry on satisfying higher order to situation.
needs later. (viii) Persons are destructive in the contentment
(iv) There is no need to be fully satisfied during of essential wants and unconsciousness
the life period of persons. A requirement for stresses the contentment. Nevertheless, they
significant contentment does not motivate for use social awareness in the happiness of the
a long duration. requirements of others.
(v) A substantially pleased need produces Maslow’s need hierarchy theory of motivation was
fulfilment and it becomes inactive. Straight well thought-out reasonable and straightforward to
away the subsequent level need becomes appreciate human incentive. The theory has
energetic. Consequently, a person is acknowledged the attention of working managers as they
constantly forced to convince discontented feel that recognition of needs of workers provides an
requirements. Consequently, motivation is a insight to inspire them. This theory recommended that
non-stop process to satisfy the needs. giving same compensation to a person who do not expect
(vi) Satisfaction of inferior category wants does will lead to diminishing marginal utility and hence will
not create satisfaction. In fact, they produce have specific significance to the practicing managers.
disapproval to convince additional Q. 4. Mention the characteristics of general and
requirements. organisational context of Maslow’s needs from your
(vii) All persons have the identical right of way experience.
to please the requirements. Priorities vary
Ans. The characteristics of general and organizational context of Maslow’s needs can be expressed as below:
Needs General Context Organizational Context

Physiological needs These types of needs are not associated The provision of giving adequate
with money alone and comprises of monetary rewards to satisfy these needs
hunger, thirst, sleep, shelter, sex and motivate employees in organisation.
other bodily needs. The suggestion
relating to basic need are that they are
primary motivators to any individual and
one they are satisfied, they no longer
motivate.
Safety needs The protection can come in the form of Organisations provide fringe benefits,
seeking a shelter and forming into health and accident insurance, housing
primary groups to combat threat from loans etc. to motivate their employees.
the natural beings.
Social needs The propositions relating to social needs

Organisations should offer scope for
are that these needs are satisfied by formation informal groups, encourage
symbolic behaviour and through physic working in teams, and provide scope for
and psychic contact with others in the interpersonal communication, interpe-
society. rsonal relationship and interpersonal
understanding to motivate employees.
Esteem needs The nature of esteem needs is that they The requirement for authority, self-
are dormant until basic, security and respect, autonomy, self-confidence,
social needs are fairly satisfied. achievement, recognition of compe-
Satisfaction of esteem needs produce a tence, knowledge, desire to have

feeling of self-confidence, strength, freedom, status and secure attention of
capability and adequacy in the others, appreciation are some of the
individuals. esteem needs individuals wishes to
satisfy.
Self-actualization needs Realizing the full inner possible one The strength of self-actualization
wishes to become what he is able of modifies over life cycle, vary from
suitable. To attain the level of person to person and surroundings.
completion of self-actualization needs is Therefore, proper care should be taken
a difficult task as individuals are not by the superiors regarding this.
clear about their inner potentials until a
chance supposed.
Q. 5. List the motivational implications of theory Accommodating the critics, McGregor have developed
X and theory Y. the theory ‘Y’ which is based on the human relations
Ans. According to theory ‘X’ managers lay down approach developed by Hawthorne studies.
objectives for subordinates and there will be very less According to theory ‘Y’ subordinates are permitted
contribution of the subordinates in setting objectives to contribute and discover substitute in the growth of
and plans. Therefore, there is less dedication towards plans and objectives. This allows the superior and
the plans. The organisation structure is modified on the subordinate to set objectives and plans jointly ensuing
basis of traditional outline of hierarchical structure, into high incentives and promise to objectives and plans.
communication channels, centralized decision-making, Organisation structure is formulated on human relations
specialization etc. Leadership is dictatorial and and highlights the human needs. Leadership is self-
communication is one way upward. It will also have a governing, participative and has two way communications.
proper feedback of the work accomplished between the Therefore, persons experience responsibility,
superiors and the subordinates. The superiors are the accountability and committed to perform well due to
judges and controls the working of the organization and positive motivation. There is high faith in evaluation of
the subordinates. presentation.
The main procedure will be to discover liability The system of provide control also emphasizes
and give punishments. As a result motivation is through problem solving. Therefore, the incentive is optimistic
threats and punishments and it is purely financial. and usually non-financial.
This theory was criticized on the view that it is based
on ability theory and false impression of human nature.
Q. 6. Distinguish between the characteristics of American and Japanese Organisations.
Ans. The difference between the characteristics of American and Japanese Organizations is as follows:
S.No Characteristics American organizations Japanese organizations
1 Decision-making Decisions are made Decisions are made in
by the managers. consultation with the
group members.
2. Responsibility Control It is assigned on the basis of It is shared equally and
the persons and his abilities. collectively by the
group members.
3. Performance evaluation and It is very fast promotion as It has a very slow promotions
promotion of personnel the job is hopping
4. Career Paths It has very specialized career It is very general as employees
and people try to remain with are allowed to train themselves
MOTIVATION / 99
their area of specialization to in almost all the areas

bring efficiency in work. of operations.
5. Concern for personnel They are only concerned with They are concerned with the
the work life of the organization. whole life business and social.
Q. 7. Mention the characteristics relating to organisation structure, management, motivation, controls,
leadership styles, decision-making and communication in the following theories of motivation. Theory X;
Theory Y; Theory Z.
Ans. Comparison at the characteristics of Theory X, Y and Z can be done as follows:
S.No Characteristics Theory X Theory Y Theory Z
1 Organizational It is based on the It is based on the It emphasizes on the
structure conventional approach modern approach. group participation.
to understand motivation.
2. Management Managed by the Suggestions and Collective participation
of
superiors. participation of the the group members
subordinates in the irrespective of the level
management. of management.
3 Motivation Low commitment More committed Group is motivated
towards plan. towards plan. towards a common goal.
4 Controls Formal control. Informal control. Informal control to
ensure quality
performance.
5 Leadership styles Based on the It is based on the Very general as it
individual itself. group activity. allows job rotation.
6 Decision-making Decisions are taken Decisions are Decisions are collectively
by the superiors. collectively taken taken by the group.
by the group.
7 Communication It has communication No communication gap No communication gap
gap between the as the superiors are in as the superiors and
superiors and the constant touch with subordinates work as a
subordinates as they their subordinates group and not as seniors
have hierarchical due to informal or juniors.
structure. participation in
decision-making
process.
Q. 8. List the assumptions and proposition of (i) The needs are divided into different
ERG theory.
categories.
Ans. Clayton Alderfer advocated ERG theory of
motivation. This theory is a development of Maslow (ii) The basic difference survives among lower
and Herzberg’s motivation theories. ERG theory is and higher order needs.
based on the perception of existence needs, related needs
(iii) The needs keep on variety instead of having
and growth needs used in the model. The model assumes
the following assumptions: a hierarchical approach.
(iv) They are inadequately contented and needs employee will be motivated towards
to be fulfilled from time-to-time as the unconvinced requirements. Therefore, he
expectations are higher. works hard to realize his prospective to
(v) To aspire for contentment of higher order acquire the next encouragement.
needs which arises after lower level needs ERG theory is related to work motivation. The
are fulfilled. theory has been measured workable and realistic. This
(vi) The motivation arises out of need frustration. approach provides a clear perceptive of human
(vii) If the needs are more than one, then only it behaviour by recognizing personal disparities or
enables to motivate a person. difference of opinions.
ERG theory advocated a new element known as Q. 9. Mention the similarities and dissimilarities
‘frustration regression’. Consequently, a person makes in the needs stated in the following theories.
an attempt to convince a lower order need, if he is (i) Need Hierarchy Theory (ii) Two Factors
frustrated with satisfaction of a higher order need. As a Theory (iii) ERG Theory.
result, discontented senior order need brings back to Ans. Maslow’s theory of need hierarchy and
junior order need. Therefore, the theory of need Herzberg’s two-factors theories are similar and
satisfaction occurs out of annoyance is the basic idea of dissimilar in certain respects.
ERG theory. The following points of similarities are observed
The theory made the following propositions: in both theories.
(i) Person intends to convince for a requirement, (i) Maslow and Herzberg’s theories have
when he feels depressed of gratifying it. So, recognized that motivation is a procedure and
deficiency leads to incentive. it results in to presentation.
(ii) Requirements are not pleased in a (ii) Both the theories have measured the entirety
classification as suggested by Maslow. For of needs. Herzberg measured positive needs
example, if an employee has a strong desire as motivators. Maslow measured the same
to live in a higher place as on the higher needs as esteem and self-actualization.
qualification, even before he fulfils the (iii) Both theories have measured that
essential requirements. requirements to establish the motivation and
(iii) Two relationships are significant to recognize motivation determines the behaviour of
incentive. One is relationship between persons.
satisfaction and motivation and the second Similarly, ERG theory is also related to work
is the relationship between frustration and motivation. The theory has been measured workable and
motivation. An example makes this clear. realistic. This approach provides a clear perceptive of
Giving promotion inspires an employee who human behaviour by recognizing personal disparities
was not given promotion. This drives him to or difference of opinions.
frustration. But after being promoted,
The difference between the three theories can be expressed as follows:
S.No Differences Maslow’s Need Herzberg’s Two ERG Theory
Hierarchy Factors Theory
1. Nature It is descriptive. It is prescriptive. It has a hierarchical
approach.
2. Arrangement The needs are having There is no sequential It has sequential as well
of Needs sequential arrangement. arrangement. as motivational needs.
3. Classification It has both higher It is more based on It has lower as well
order and lower the hygiene and as higher order needs.
order needs. motivators.
4. Relationship Due to unsatisfied need It has satisfied needs The relationships are
it causes behaviour and which gives positive significant to
MOTIVATION / 101
behaviour leads to performance. recognize incentive.

performance.
5. Motivation It has satisfied need It has higher order In this the motivation
which is not a needs are motivators. arises out of need
motivating factor for and frustration.
the organisation.
6. Financial The pay and financial The financial benefits The expectations are
factors benefits are motivators. are not motivating . higher, therefore, it needs
to overcome the
frustration by fulfilling
the desires.
7. Applicability It has a macro view It considers micro The deficiency leads
and applicable to view and applicable to incentive to fulfils
general motivation. to work motivation. the needs.
8. Relevance It is relevanat to It is relevant to white The needs are divided
all individuals. collar and professional. into different categories
it has hierarchical
approach.
Q. 10. Write the four proposition of Expectancy (ii) Motivation is negative when all or any one
theory. of the variables is negative.
Ans. The four propositions of Expectancy theory (iii) Motivation is zero even when any one of the
are: variables is zero.
(i) Motivation is positive only when all variables (iv) Motivation is also low even when any one of
are positive. the variables is low.
Q. 11. Mention the mathematical characteristics of valence, instrumentality and expectancy.

Ans. The mathematical characteristics of valence, instrumentality and expectancy are as follows as as given by
Expectancy theory:
Valence Instrumentality Expectancy Motivation
High High High Strong motivation
Low High High Moderate motivation
High Low High Strong avoidance
Low Low High Moderate avoidance
High High Low Moderate motivation
Low High Low Weak avoidance
High Low Low Moderate avoidance
Low Low Low Strong avoidance
Q. 12. List the variables in Porter and Lawler performance of a task. It can be articulated in monetary
motivation model. terms or non-monetary terms.
Ans. The variables of this theory are: (ii) Perceived Effort Reward Probability:
(i) Value of Rewards: It deals with the evaluation Individuals place a probability of the reward for the
of a person’s reward that he should receive after the
effort. The observation verifies the attempt. If a person Q. 15. What do you mean by need for affiliation?
perceives better chance for the reward, his effort will Ans. The need for affiliation is very well defined
be better. in the commonly used approach called Management by
(iii) Effort: It is the effort a person proposes to set Objectives (MBO). It is a method of allowing for the
in relation to the rewards perceived by him. allocation of the goals along with the contribution and
(iv) Abilities and Traits: A person’s effort depends active involvement of manager and subordinates of the
on his inherent ability and the qualities that he possesses. organization. This makes them to feel individual
(v) Role Perception: Role is the probable means accountable with an attitude to achieve the goals
of behaviour of a person. The way he perceives his effectively.
position in the organization enables him to determine Q. 16. How employee’s involvement motivates
his motivation. the employees?
(vi) Performance: It is associated with the Ans. The involvement of employees is a very big
achievement of everyday jobs or achieving the goals. tool which makes them feel comfortable and important
(vii) Intrinsic Rewards: The reward that is given and thus motivates them to work efficiently. Their active
while on the job is called intrinsic reward. It is participation in management decisions have been proved
acknowledged when the job is executed. The intrinsic as a successful method of motivating workers.
rewards given for the performance are recognition, Participation allows workers to communicate their
esteem, responsibility etc. views. It helps in rising better communication among
(viii) Extrinsic Rewards: The rewards that are superiors and subordinates. Employees develop
acknowledged after the job is done is known as extrinsic sensitivity towards the organizational goals and
rewards such as salary, fringe benefits, incentives, etc. objectives. It gives them confidence that their
(ix) Perceived Equitable Rewards: suggestions are established in the procedure of decision-
Persons’reaction with the intention of evaluating the making. It improves recognition of decisions and acts
reward as fair and equitable to the effort decides the as a motivating force.
persons’ enthusiasms to put promote his attempt. Q. 17. How quality of work life motivates the
(x) Satisfaction: This is the result of the procedure. employees?
It is the quantity of satisfaction that person feels about Ans. Quality of work life is one of the new concepts
the work. Satisfaction is an etheral feature. It can only to facilitate the attention of the superiors these days. It
be calculated in terms of language and feelings. has diverse significance to different people. It is a
Q. 13. Mention four relationship dimensions motivational technique as it includes: provision of
between motivation and satisfaction. adequate and fair compensation and safe and healthy
Ans. Relationship between motivation and work environment, continuous effort of employees
satisfaction: development, provision of growth potentials in the job,
(i) To clarify all doubts about ability, skill or protecting self-esteem, creating a sense of identity, up-
knowledge. keeping self-respect, equity and dignity of employees
(ii) To remove ambiguity in the job requirement. and integration of job with family life.
(iii) To provide interdependence of the job with
TERMINAL QUESTIONS
other people or activities.
(iv) To clarify physical or practical possibility of Q. 1. ‘Non-financial motivators play a signifi-
the job. cant role in motivation Discuss. What are the
Q. 14. Enumerate the techniques for enhancing limitations of financial motivators?
achievement motivation. Ans. Financial incentives motivate employees for
Ans. The commonly used techniques used to superior job. On the other hand, persons have
motivate employees are given below: multiplicity of needs that they want to convince while
(i) Money is used as a Powerful Motivator working in the organizations.
(ii) Active Involvement of Employees There are some people who try to put a strong
(iii) To enhance the Quality of Work Life emphasis on the socio-psychological needs that cannot
(iv) Management by Objectives. be satisfied by money alone at higher level of managerial
MOTIVATION / 103
hierarchy. So, management provides non-financial The provision of giving adequate monetary rewards to
incentives to motivate people in the organization in satisfy these needs motivate employees in organisations.
addition to financial incentives. (ii) Safety Needs: The individuals seek out for
It can be concluded that the importance of non- protection from natural environment, biological danger,
financial incentive is to provide psychological and economic deprivation and emotional threat from other
emotional satisfaction rather than financial satisfaction. beings and animals. He hunts for safety in order to
For instance, receiving promotion in the organization protect himself from such factors. The protection can
delivers psychological satisfaction. The promotion come in the form of seeking a shelter and forming into
forms a good source of psychological satisfaction as it primary groups to combat threat from the natural beings.
offers better status, authority, more challenging job etc. The motivational proposition is that the safety needs
The major non-financial incentives include status, dominate as soon as physiological needs are satisfied,
promotion, responsibility, recognition, job security, etc. and after individual seeks to satisfy fairly the security
There are certain limitations of financial motivators needs they do not motivate him. Organisations provide
they are: fringe benefits, health and accident insurance, housing
(i) Physiological needs are to be satisfied loans etc. to motivate their employees.
repeatedly till human being survives. These (iii) Social Needs: An individual is a social being
types of needs are not associated with money and cannot survive in isolation and silence. So, he needs
alone and comprises of hunger, thirst, sleep, to develop and establish relationship with other human
shelter, sex, and other bodily needs. Thus, beings and some time wish to rear animals. The social
financial motivation cannot satisfy needs in an individual emerges from the basic urge of
physiological needs of a person. individuals to associate, belong with others, make
(ii) Self-actualization needs cannot be reached friendship, make companionship, desire to be accepted
easily through financial motivators. by others and seek affection. These types of needs are
(iii) The social needs are satisfied by symbolic secondary in nature. The propositions relating to social
behaviour and through physic and psychic needs are that these needs are satisfied by symbolic
contact with others in the society and not by behaviour and through physic and psychic contact with
money. others in the society. These needs are substantially
Q. 2. Critically examine the need hierarchy infinite and exist till the end of human life. Organisations
theory of motivation. Do you think that the should offer scope for formation of informal groups,
assumptions of Maslow are hypothetical? encourage working in teams, and provide scope for
Ans. The need hierarchy theory of motivation of interpersonal communication, interpersonal
Maslow states that motivators are repeated as a cycle relationships and interpersonal understanding to
until the highest level need is satisfied. On the basis of motivate employees.
this concept, Maslow identified five categories of needs (iv) Esteem Needs: Maslow considers that group
and their role in motivating individuals, they are: looks for growth. They have normal longing to be
(i) Physiological Needs: The physiological needs recognized and appreciated. This nature is called as
are basic and primary needs required for human esteem. Esteem needs are related to self-esteem and
existence. These types of needs relate to biological and esteem from others. The requirement for authority, self-
are required for preservation of basic human life. respect, autonomy, self-confidence, achievement,
Physiological needs are identified to the human organ recognition of competence, knowledge, desire to have
in the body and can be described as finite needs. These freedom, status and secure attention of others,
types of needs are to be satisfied repeatedly till human appreciation are some of the esteem needs individual
being survives. These types of needs are not associated wishes to satisfy. Maslow had recognized them, as high
with money alone and comprises of hunger, thirst, sleep, order needs. The nature of esteem needs is that they are
shelter, sex, and other bodily needs. The suggestion dormant until basic, security and social needs are fairly
relating to basic needs are that they are primary satisfied. Satisfaction of esteem needs produce a feeling
motivators to any individual and once they are satisfied,
of self-confidence, strength, capability and adequacy
they no longer motivate. The next level need becomes
in the individuals.
essential for satisfaction until the basic need is dormant.
(v) Self-Actualization Needs: Self-actualization stresses the contentment. Nevertheless, they

is alteration of awareness and dream into actuality. use social awareness in the happiness of the
Individuals have inner impending to do a number of requirements of others.
things unusual from others. Realizing the full inner The hierarchy theory of motivation was reasonable
possible, one wishes to become what he is able of and straightforward to appreciate human incentive. The
suitable. To attain the level of completion of self- theory has acknowledged the attention of working
actualization needs is a difficult task as individuals are managers as they feel that recognition of needs of
not clear about their inner potentials until a chance is workers provides an insight to inspire them. This theory
supposed. Besides these needs change with a recommended that giving name compensation to a
modification in human life. The strength of self- person who do not expect will lead to diminishing
actualization modifies over life cycle, vary from person marginal utility and hence will have specific significance
to the practicing managers.
to person and surroundings.
Q. 3. Distinguish between hygiene factors and
The following assumptions are made regarding the
motivators. Examine the applicability of two factors
motivation of individuals based on the Maslow
theory in Indian context.
hierarchy of needs, they are:
Ans. Hygiene Factors: Factors which are based
(i) Five needs are classified into lower order on the basic hygiene factors of the working conditions.
needs and higher order needs. While It is related to the adequate company policy and
physiological, safety and security needs are administration to provide proper hygiene factors to the
lower order needs, esteem and self- employees. The relationship should be superior and
actualization needs are advanced needs. refined with the co -workers. Proper and healthy salary
(ii) Lower order needs are fulfilled externally and relationships should be maintained with peers. The
advanced needs are pleased on the inside. presence of the hygiene factors helps in preventing
(iii) Individuals start fulfilling lower order needs dissatisfaction. The absence of the same increases
first and carry on satisfying higher order dissatisfaction
needs later. Motivational Factors: These are the internal
(iv) There is no need to be fully satisfied during factors with the aim to give job satisfaction to the
the life period of persons. A requirement for employees. The main aim is to achieve recognition at
significant contentment does not motivate for the workplace. To be responsible growth with the
a long duration. advancement in the working style its presence leads to
(v) A substantially pleased need produces satisfaction and motivation and absence prevents both
fulfilment and it becomes inactive. Straight satisfaction and motivation.
away the subsequent level need becomes The applicability of two factors theory in Indian
context is to be more committed towards plan. It has
energetic. Consequently, a person is
informal control over the subordinates, thus, have
constantly forced to convince discontented
smooth functioning and makes the work easy to be
requirements. Consequently, motivation is a
adopted in Indian companies also. It is based on the
non-stop process to satisfy the needs.
group activity and thus is open to invite suggestions
(vi) Satisfaction of inferior category wants does from the subordinates. It gives motivation and job
not create satisfaction. In fact, they produce satisfaction to them. This theory has become very
disapproval to convince additional popular in India as it is easy to follow and gives good
requirements. and constructive results.
(vii) All persons have the identical right of way Q. 4. Bring out the similarities and distinctions
to please the requirements. Priorities vary between Maslow and Herzberg’s theories of
from country to country and from situation motivation.
to situation. Ans. Maslow’s theory of need hierarchy and
(viii) Persons are destructive in the contentment Herzberg’s two-factors theories are similar and
of essential wants and unconsciousness dissimilar in certain respects.
MOTIVATION / 105
The following points of similarities are observed as motivators. Maslow measured the same
in both theories. needs as esteem and self-actualization.
(i) Maslow and Herzberg’s theories have (iii) Both theories have measured that
recognized that motivation is a procedure and requirements to establish the motivation and
it results in to presentation. motivation determines the behaviour of
(ii) Both the theories have measured the entirety persons.
of needs. Herzberg measured positive needs
Difference between Maslow’s Theory of need hierarchy and Herzberg’s two factors is as follows:
S.No. Differences Maslow’s Need Herzberg’s Two
Hierarchy Factors Theory
1. Nature It is descriptive It is prescriptive.
2. Arrangement The needs are having There is no sequential
of Needs sequential arrangement. arrangement.
3. Classification It has both higher order It is more based on the
and lower order needs. hygiene and motivators.
4. Relationship Due to unsatisfied needs It has satisfied needs

it causes behaviour and which gives positive
behaviour leads to performance.
performance.
5. Motivation It has satisfied need It has higher order
which is not a needs are motivators.
motivating factor for the
organisation.
6. Financial factors The pay and financial The financial benefits
benefits are motivators. are not motivating.
7. Applicability It has a macro view and It considers micro view
applicable to general and applicable to work
motivation. motivation.
8. Relevance It is relevant to all It is relevant to white
individuals. collar and professional.
Q. 5. ‘Theory X and Theory Y are dialectically opposite in their assumptions about the predispositions
of the individuals’. Discuss.
Ans. The difference between the basic characteristics of Theory X and Y help in analyzing the assumptions about
them are:
S.No. Characteristics Theory X Theory Y
1. Organizational structure It is based on the It is based on the
conventional approach modern approach.
to understand motivation.
2. Management Managed by the superiors. Suggestions and participation
of the subordinates
in the management.
3. Motivation Low commitment towards More committed towards
plan. plan.
4. Controls Formal control. Informal control.

5. Leadership styles Based on the individual It is based on the
itself. group activity.
6. Decision-making Decisions are taken Decisions are collectively
by the superiors. taken by the group.
7. Communication It has communication gap No communication gap as
between the superiors the superiors are in
and the subordinates constant touch with their
as they have subordinates due to
hierarchical structure. informal participation
in decision-making process.
Q. 6. What are the characteristics of high an attitude to reaching leaning goals.

achievers? What are the strategies of enhancing (iii) Job Redesign: In order to develop inspiration
achievement motivation? towards achieving a successful goal it is to advisable to
Ans. The characteristics of high achievers are as redesign the tasks by accumulation more responsibilities
follows: and setting challenging goals. If jobs are very easy to
(i) It is sure that monetary rewards do not achieve, employees are not motivated. Likewise,
motivate high achievers as they are more workers who are not capable to reach to the level of
inclined toward the achievement of goals difficult jobs feel irritated and de-motivated.
than to work for money only. As a result, jobs should be planned in such a way
(ii) The high achievers attempts to create so as to provide reasonably challenging goals. The jobs
situations in where they can achieve personal should also be made independent. Therefore, employees
responsibility for finding solutions to feel independence in realization of goals. The job should
problems. be redesigned in such a way that the outcome of the job
(iii) They always set reasonably difficult goals in is assessable and employee’s contribution is specialized.
order to prevent dissatisfaction. At the same This provides satisfaction to the workers.
time, they are not satisfied with easy tasks. (iv) Attitude Change Management: As,
(iv) High achievers do not depend on probability McClelland refers that attainment of motivation can
rather take the work with responsibility. be educated. Workers’ attitude should be changed to
(v) They are willing to work without help as they think positively, innovative and imaginative. This helps
have an inclination to create relationship and influences them to motivate towards the
between their effort and success. achievement of their goals successfully.
(vi) They try to overcome the difficulties by (v) Measurable Outcomes: The high achievers
themselves. consider in individual success. They desire to have
McClelland theory suggested various techniques measurable and identifiable outcomes to their individual
for enhancing achievement motivation, they are: performance. This gives identity to employee’s skills
(i) Feedback: Feedback is the procedure to provide and performance which leads to achievement
information to the workers. Regular remarks on the motivation.
workers performance facilitate them to review their As a result, the theory stated that enhancing
performance and learn from their mistakes. This helps employee’s achievement potentials could motivate them.
them to set demanding goals. Q. 7. Critically evaluate the need for
(ii) Model Building: The high achievers can be achievement theory of motivation.
revealed as models. Workers with challenging goals are Ans. David C. McClelland has given the
preferred and their distinctiveness is told to others. This achievement motivation theory. It is also recognized,
allows other workers to follow the characteristics of the as three needs theory. It is required due to the following
model employees. This provides a chance to develop reasons:
MOTIVATION / 107
(i) Need for Achievement: It is needed to surpass, recommended that need for affiliation is based on the
to accomplish the relation to a place of standards. concept of belongingness as defined by Maslow.
According to this theory, some people have internal Affiliation oriented persons display high inclination
desire to accomplish something and do something towards inter-personal relationships, by establishing
different from others. This is called realization of goal. psychological contact with others and desire for social
As a result, challenging goals become motivators. acceptance. They always endeavour for companionship
People with high need for achievement are high and prefer co-operative situations. They wish to develop
achievers. relationships with high degree to have shared
(ii) Need for Power: Some people obtain content- understanding.
ment by exercising control over others. They believe As a result, the theory relates that association
that they have capability to control others. They want oriented atmosphere, inter-personal understanding and
that way to achieve goals and it should be related to the inter-personal communication enables to develop
exercise of power. The individuals with high need for motivation among the workers.
power prefer competitive and status leaning situations.
(iii) Need for Affiliation: It is the need for sociable
and secure interpersonal relationships. McClelland ■■
108
Job Design and Job Satisfaction

11
INTRODUCTION the roles and responsibilities and removes overlapping
of responsibilities. Job design helps in rationalizing tasks
Job design is a process that restructures job suitable and enables operational control over performance. It
to the employees and organisational demands. Job provides flexibility for adoption of environmental
design helps in structuring of job tasks and changes. It is a complex process and is aimed towards
responsibilities. It is directly concerned with job, directing employee’s energy at goals realization.
motivation and behaviour of individuals. Its basic aim There are numerous factors that influence job
is to maximize efficiency of employees in jobs. It is design and they can be classified into external and
concerned with standardization of job functions. It helps
internal factors. Factors like goals, task
in rationalizing tasks and enables organisational control
accomplishments, employee response, task variety, task
over performance. These are external and internal
factors that influence job designs. Its techniques consist identity, task significance, task complexities, job
of job enrichment, job enlargement, job rotation and functions, job relations, job techniques affecting job
job re-engineering. Job enrichment is related to the designs. Many theories related to job design have been
vertical expansion of job, while job enlargement is proposed where factors like task characteristics,
related to the horizontal expansion of jobs. Job rotation environmental contingencies and motivational potentials
is moving of an employee from one job to another. Job are considered.
re-engineering means re-allocation of jobs to achieve Job design is a process that restructures the job
set goals and enhancing employee’s satisfaction in an suitable to the employees and organisational demands.
organisation. Organisational and personal factors Job design techniques comprises of job enrichment, job
determine the job satisfaction in an organisation. enlargement, job rotation and job re-engineering. Job
Organisational determinants like wages, nature of work, enrichment is a process where vertical expansion of jobs
working conditions, job content etc. are organisational
takes place. Job enlargement is a process where
factors that determine job satisfaction of the employees.
horizontal expansion of jobs takes place. Job rotation
Personnel determinants also determine job satisfaction
of the employees. involves moving of an employee from one job to another.
Job re-engineering is re-allocation of jobs to achieve
SUMMARY desired goals and enhance employee’s satisfaction in
Job design can be described as process that helps an organisation.
in structuring of job tasks and responsibilities. It is both Factors that influence job re-engineering are
managerial as well as technical and is related to the information systems, government policies,
quality of work. Job design is concerned with job organisational policies, technology, competition,
motivation and behaviour of individuals. The basic goal appraisal of costs and benefits and prospective
of job design is to maximize the efficiency of employees challenges. Job satisfaction is a permanent impression
in jobs. It concerns with standardisation of job functions formed about the job. It is a psychological aspect that
and a process of developing complete written describes the feeling of employees towards his job. The
instructions, task characteristics and job components. impression about the job is formed by job, working
A well structured job design is required for effective condition, organisation, superiors, subordinates and
performance of employees in an organisation. It clarifies
JOB DESIGN AND JOB SATISFACTION / 109
peers. The factors that determine job satisfaction are (iv) Job design allows operational control over
organisational and personal. work performance and results.
Organisational determinants are the organisational (v) Job design allows incorporation of
factors that determine job satisfaction of the employees. environmental changes in the job.
They are wages, nature of work, working conditions, (vi) Job design provides flexibility and so
job content, organisational level, opportunities for employees are prepared to accept changes
promotion, work group and leadership styles. without much resistance.
Personal determinants are psychological factors that (vii) Job design urges work motivation and allows
determine job satisfaction of the employees. They are managers to understand organisational
personality, age, education, gender differences. The behaviour.
methods used in the measurement of job satisfaction (viii) An appropriate and suitable job design leads
are rating scales, personal interviews, observation of to better quality of work life among
tendencies and critical incidents. Job satisfaction has employees.
negative as well as positive effect on jobs, workers and (ix) Job design helps in relieving stress and also
organisation and is positively related to the productivity improves performance and organisational
of organisation. effectiveness.
Q. 3. Mention the propositions of Task
CHECK YOUR PROGRESS Characteristics Theory.
Q. 1. List out the characteristics of Job design. Ans. Turner and Lawrence made comprehensive
Ans. The characteristics of job design are as research and studies in developing out Task
follows: Characteristic theory. The studies were based on an
(i) Job design is structuring of job tasks and assessment that was made about the effect of different
responsibilities. kinds of jobs on employee satisfaction and absenteeism.
(ii) Job design and quality of work life are The scores were given by identifying the task
related. characteristics. The jobs were considered more complex
(iii) Job design is both technical and managerial. when high scores were given on the characteristics and
(iv) Job design is concerned with job, motivation vice versa. The major conclusion was drawn from this
and behaviour of individuals. theory that employee preferred complex and challenging
(v) Job design is concerned with standardization tasks. The challenging jobs provide more satisfaction.
of job functions. It resulted in low absenteeism rate. During this process,
(vi) The goal of job design is to maximize human the theory identified certain task characteristics such as
efficiency in jobs. variety, autonomy, responsibility, knowledge, skill,
Q. 2. What are the importances of job design? social interaction and optional social interaction.
Ans. The goal of job design is to maximize human Q. 4. Mention the propositions of SIP model of
efficiency in jobs. It is essentially a strategy of human job design.
resource management. It has a number of potential Ans. SIP model of job design is Social
benefits as it is concerned with job, motivation and Information Processing Model of job design:
behaviour of individuals. The importance of job design Individuals are essential elements of the society and
is as follows: have inherent desire to associate and belong to others.
(i) Job design avoids ambiguities in the Individuals prefer to work in groups rather than working
performance of jobs and clarifies tasks and alone in isolation. In addition to these factors,
roles. individuals focus on observational learning and develop
(ii) Job design removes overlapping in attitudes by social learning. According to SIP model of
responsibilities and this leads to the job design, employees adopt attitudes and behaviour in
rationalization of tasks. It also helps in response to the social signals that are provided by work
avoiding conflicts among personnel. and other groups with which they associate. The groups
(iii) Job design helps in allowing proper are co-workers, superiors, subordinates, reference
placement of employees. It helps in fitting groups, friendship groups, family and customers. It
suitable employee for a suitable job. signifies that the information provided by the group on
job aspects is more relevant than the basic job Therefore, this model helped in the incorporation
characteristics, employee’s psychological states and of all the factors such as cultural, social, and technical
outcomes of the jobs. So, the managerial strategy of and other situational factors in the procedure of job
job design considers information that is shared by the design.
groups about the job. Some of the factors of job design are: core design
Q. 5. What are the organisations practicing the factors; individual factors; organisational factors and
socio-technical model? situational factors. It further states the fact that job design
Ans. The organizations who want to establish good is developed on the basis of possibility of a situation.
and healthy relationships between the superiors and the Jobs which are designed ignoring the situational factors
subordinates practice the model of socio-technical do not bring efficiency and contentment in the
model. It is so because socio-technical model emphasize organizational work and workers.
on the theory that workers are important for the Q. 7. Mention the points of distinctions of job
organizations. They should be provided with the good enrichment and job enlargement you have observed
quality of working environment. Person’s development in the organisation.
is necessary for organizational development. Therefore, Ans. Job Enrichment is a process that contains
the model recommended that jobs should be designed certain activities and is not a single time activity. The
and redesigned to fulfil the needs of the employees. activities comprises of combining tasks, creating natural
The ideology of the model is that job design should work units, establishing relationships among personnel,
be developed on the basis of technical as well as social expanding job vertically and providing feedback
factors. Technical factors are related to the input channels. The advantages of job enrichment are:
processing and output mechanism. (i) Increase in quality and productivity
Social factors refer to the associations established (ii) Enhanced motivation and job satisfaction
among employees and management. A suitable job (iii) Development of additional skills
design will maintain balance among the employees, (iv) Less work load on employees
jobs, technology and environment. (v) Enhanced creativity in employees
This model also believes that social factors should (vi) Increase in pay and perquisites
be changed constantly. Therefore, job design should (vii) Decreased absenteeism and turnover
include three important factors they are socio-technical (viii) Less number of grievances
impacts, work teams and flexible work schedules. (ix) Optimum use of human energy
(x) Increased social benefits due to increase in
The model was measured as suitable in developing
quality and productivity.
job design as it is measured on the technical and
Job Enlargement: Job enlargement can be termed
structural aspects along with human aspects. It was also
as complementing variety of tasks in the job. Job
established that labour management conflicts reduced
enlargement refers to the horizontal expansion of jobs.
and quality of the product improves by implementing
It is expansion done to include more variety of tasks
this model successfully.
within the scope of the job. Job enlargement works
The merits of using this model are cost reduction,
effectively when an employee feels his job to be less
increased turnover, quality of work life, innovation and
challenging and desires for something that is more
creativity, product quality and positive behavioural
adventurous and challenging in his job. It can be also
changes. due to less diversity and unsubstantial professional
On the other hand, the model was criticised for the satisfaction where an employee might feel dissatisfied.
hypothesis that workers are matured enough to work Job enlargement provides variety of tasks that can be
as teams and would like to adopt flexible work plan. performed within his job.
Q. 6. Mention the variables of core design, For example, if a worker is designated with the job
individual, organisational and situational factors in of counting the finished products and predictably he finds
the Integrative Job Design Model. it boring and repetitive. Then the job can be enlarged by
Ans. Integrative job design model measured that including certain tasks connected to the job. It can be
job design is self-motivated. The idea of job design is checking the products before counting, packing and
to create good and interesting working conditions and delivering the products at the finished goods warehouse.
to satisfy the workers. etc.
The potential benefits of job enlargement are as (v) Job rotation provides greater adaptability to
follows: change.
(i) Reduction in the Level of Boredom: Job (vi) Job rotation enhances motivation and job
enlargement helps in reducing boredom and satisfaction in employees.
repetitiveness of the employee in the job. It provides Q. 9. Enumerate the principles of job
possibility of increasing the number of tasks performed engineering.
by the employee. Ans. Job re-engineering engages utilization of new
(ii) Utilization of Skills: Job enlargement helps in technology and changes in the process of work. The
utilizing the skills and abilities of employees in the job main purpose of job re-engineering is to attain group
to the full extent. The feeling of proper utilization of objectives and goals through increased worker
satisfaction. Some of the corporate goals achieved
employee’s skills provides them with greater satisfaction
through job re-engineering are customer satisfaction,
and further motivates them.
profit maximization, growth and enhancing corporate
(iii) Quality and Efficiency: Job enlargement
image. Factors that influence job re-engineering are
enhances the efficiency and effectiveness of employees
information systems, government policies,
as they are formally trained for the new added jobs. It organisational policies, technology, competition,
results in higher productivity and the overall appraisal of costs and benefits and prospective
effectiveness of the organization. challenges.
(iv) Job Enjoyment: Job enlargement provides The nature of job, personality, experience of
satisfaction and so employees feel less fatigued and employees, job performance and satisfaction are some
exhausted. The variety of tasks in the job makes of the factors which are measured in re-engineering the
employees happy and delighted. jobs. It differs from person to person, job to job and
(v) Feedback: Job enlargement comes out as company to company. Therefore, it depends on different
effective measure where an employee can get the levels and nature of job.
feedback of his performance. It enables him to develop Edward E. Lawler supports that organizations
his career and also delivers positive motivation for the must identify the importance to take care of people in a
future. different way and placing them in environments and
Q. 8. Enumerate the benefits of job rotation. work situations that fit their distinctive needs, skills and
Ans. Job rotation is also known as cross training. abilities. Job re-engineering leads to job enrichment.
It is referred to the periodical shifting of an employee The following are the principles of job re-
from the existing job to another job at the same level of engineering.
skill requirements. (i) To allocate the jobs according to employees’
Factors like over routine jobs, boring jobs, non- interest.
challenging jobs and jobs with poor achievement (ii) Employees who prefer routine jobs are
orientation prove to be the need of job rotation. It kills allowed to perform routine jobs.
(iii) Low skilled employees are assigned jobs
monotony in the employee as it helps him to perform
requiring low skills.
all tasks in the job.
(iv) To achieve the fact that oriented employees
Job rotation has the following benefits and they are:
are given demanding jobs.
(i) Job rotation helps in reducing boredom and
Q. 10. Mention the organisational and personal
employee turnover.
determinants of job satisfaction.
(ii) Job rotation provides better diversification Ans. Job satisfaction is a multi-variable and
and development of wide range of skills. It indescribable concept. There are number of factors that
helps in building competent employees. influence job satisfaction of employees. These factors
(iii) Job rotation provides greater challenges in can be classified into two categories. They are:
the job leading to variety of jobs. (a) Organizational and
(iv) Job rotation helps in increasing the flexibility (b) Personal variables.
of jobs. It further helps in providing scope (a) The organizational determinants of job
for better job scheduling. satisfaction plays a very important role. The employees
spend major part of their time in organisation so there on the satisfaction of employees. The satisfaction of an
are number of organisational factors that determine job individual is dependent on largely on the relationship
satisfaction of the employees. The job satisfaction in with the group members, group dynamics, group
the organizations can be increased by organising and cohesiveness and his own need for affiliation.
managing the organisational factors. The organisation (viii) Leadership Styles: The satisfaction level on
determinants of job satisfaction are as follows: the job can be determined by the leadership styles. Job
(i) Wages: Wage can be described as the amount satisfaction is greatly enhanced by democratic style of
of reward that a worker expects from the job. Wages leadership. It is because democratic leaders promote
are an instrument of fulfilling the needs as every worker friendship, respect and warmth relationships among the
expects to get an appropriate reward. The wages are employees. On contrary, employees working under
supposed to be fair, reasonable and equitable. A feeling authoritarian and dictatorial leaders express low level
of job satisfaction is felt by attaining fair and equitable of job satisfaction.
rewards. (b) The personal determinants also help a lot in
(ii) Nature of Work: The nature of work has maintaining the motivation and personal factors of the
significant impact on the job satisfaction. Job satisfaction employees to work effectively and efficiently. Job
is highly influenced by the nature of work. Employees satisfaction can be related to psychological factors and
are satisfied with job that involves intelligence, skills, so numbers of personal factors determine the job
abilities, challenges and scope for greater freedom. Job satisfaction of the employees. They are as follows:
dissatisfaction arises with a feeling of boredom, poor (i) Personality: The personality of an individual
variety of tasks, frustration and failures. can be determined by observing his individual
(iii) Working Conditions: Employees are highly psychological conditions. The factors that determine
motivated with good working conditions as they the satisfaction of individuals and his psychological
provided a feeling of safety, comfort and motivation. conditions is perception, attitudes and learning.
On contrary, poor working conditions brings out a fear (ii) Age: Age can be described as a noteworthy
of bad health in employees. determinant of job satisfaction. It is because younger
(iv) Job Content: Factors like recognition, age employees possessing higher energy levels are likely
responsibility, advancement, achievement etc. can be to be having more job satisfaction. In older age, the
referred to as job content. A job that involves variety aspiration levels in employees increase. They feel
of tasks and less monotonous results delivers greater completely dissatisfied in a state where they are unable
job satisfaction. A job that involves poor content to find their aspiration fulfilled.
produces job dissatisfaction. (iii) Education: Education plays a significant
(v) Organisational Level: The jobs that are at determinant of job satisfaction as it provides an
higher levels are viewed as prestigious, esteemed and opportunity for developing one’s personality. Education
opportunity for self-control. The employees that are develops and improves individual wisdom and
working at higher level jobs express greater job evaluation process. The highly educated employees can
satisfaction than the ones working at lower level jobs. understand the situation and assess it positively as they
(vi) Opportunities for Promotion: Promotion can possess persistence, rationality and thinking power.
be reciprocated as a significant achievement in the life. (iv) Gender Differences: The gender and race of
It promises and delivers more pay, responsibility, the employees plays important determinants of job
authority, independence and status. So, the opportunities satisfaction. Women, the fairer sex, are more likely to
for promotion determine the degree of satisfaction to be satisfied than their male counterpart even if they are
the employees. employed in small jobs.
(vii) Work Group: There is a natural desire of The job satisfaction can also be determined by other
human beings to interact with others and so existence factors like learning, skill autonomy, job characteristics,
of groups in organisations is a common observable fact. unbiased attitude of management, social status etc. It is
This characteristic results in formation of work groups important for managers to consider all these factors in
at the work place. Isolated workers dislike their jobs. assessing the satisfaction of the employees and
The work groups make use of a remarkable influence increasing their level of job satisfaction.
Q. 11. What are the techniques of measurement provides flexibility for adoption of environmental
of job satisfaction? changes. In other words, job design is significant in
Ans. Job satisfaction is a qualitative aspect and directing the employees’ energy towards realisation of
cannot be understood in strict quantitative terms. It is goals.
an intangible and psychological concept. It was The characteristics of job design are as follows:
concluded that job satisfaction should be measured (i) Job design is structuring of job tasks and
through survey of employees’ attitudes. In most of the responsibilities.
organisations, there is a practice of conducting surveys (ii) Job design is related with quality of work
of employee’s intentions in a regular manner. The life.
commonly applied techniques employed to measure job (iii) Job design is both technical and managerial.
satisfaction are discussed below: (iv) Job design is concerned with job, motivation
(i) Rating Scales: Rating scales are the commonly and behaviour of individuals.
adopted method that is used for the measuring job (v) Job design is concerned with standardisation
satisfaction. It comprises of certain statements of job functions.
describing the attitude of the employees with respect to (vi) The objective of job design is to maximise
the job, organisation and personal factors. For each human efficiency in jobs.
declaration or statement, the employee is invited to Q. 2. ‘Job design is essentially a strategy of
express his opinion on a scale consisting of different human resource management’ Elucidate.
expressions. Ans. Job design is basically a policy of human
(ii) Personal Interviews: Conducting personal resource management. It has a number of prospective
interviews has also proved important method of merits, they are:
(i) Job design simplifies the tasks and roles.
measuring job satisfaction of the employees. The experts
Therefore, it evades the indistinctness in the
conduct these personal interviews where employees
performance of jobs.
express their opinions on job satisfaction. The responses
(ii) Job design takes away the common
delivered through these interviews are analyzed to find
characteristics in tasks. This shows them the
their level of job satisfaction. It is believed that this
way to rationalization of tasks. Conflicts
method is likely to have personal biased views of the
among personnel are kept away from them
interviewer also.
to maintain peace and harmony in the
(iii) Tendencies: The employees are asked to
environment.
express their tendency or inclination on several aspects
(iii) Job design permit proper placement of
and this reveals their satisfaction or dissatisfaction.
employees. Therefore, a suitable job fit
(iv) Critical Incidents: Herzberg made developed
should be reached.
approach to measure job satisfaction. In this particular (iv) It permits to monitor functional control over
method, the employees were asked to describe incidents the performance and consequences of the job
on their job when they were particularly satisfied or design.
dissatisfied. These set of incidents were then analyzed (v) Job design allocates the merging of
to determine their positive and negative attitudes. environmental changes in the job.
TERMINAL QUESTIONS (vi) It offers elasticity; therefore, workers are
ready to accept changes without much
Q. 1. Define job design. What are the resistance.
characteristics of job design? (vii) It encourages work motivation and also
Ans. Job design can be defined as a process of allows managers to understand organisa-
developing complete written instructions, task tional behaviour.
characteristics and job components. It is important to (viii) Appropriate job design leads to enhanced
have a proper job design to deliver effective quality of work.
performance. It clarifies the roles and responsibilities, (ix) Job design enables to relieve the stress and
removes overlapping of responsibilities and rationalises develop the working routine and
tasks, enables operational control over performance and organizational success.
Q. 3. Job design encompass a number of factors: (vii) It encourages work motivation and also
organisational context factors, task factors, job allows managers to understand organisat-
context and content factors, and employee factors. ional behaviour.
Discuss with examples. (viii) Appropriate job design leads to enhanced
Ans. Job design is a process of increasing total quality of work.
written directions, task characteristics and job
(ix) Job design enables to relieve the stress and
components. It is important to have a proper job design
develop the working routine and organizat-
to deliver effective performance. It clarifies the roles
and responsibilities, removes overlapping of ional success.
responsibilities and rationalizes tasks, enables Q. 4. Examine the task characteristic theory of
operational control over performance and provides job design.
flexibility for adoption of environmental changes. In Ans. Turner and Lawrence made comprehensive
other words, job design is important in expressing the research and studies in developing out Task
employees’ energy towards realization of goals. Characteristic Theory. In these studies, an assessment
The characteristics of job design are as follows: was made about the effect of different kinds of jobs on
(i) Job design is structuring of job tasks and employee satisfaction and absenteeism. The scores were
responsibilities. given by identifying the task characteristics. The jobs
(ii) Job design is related with quality of work were considered more complex when high scores were
life.
given on the characteristics and vice versa. The major
(iii) Job design is both technical and managerial.
conclusion was drawn from this theory that employee
(iv) Job design is concerned with job, motivation
and behaviour of individuals. preferred complex and challenging tasks. The
(v) Job design is concerned with standardization challenging jobs provide more satisfaction. It resulted
of job functions. in low absenteeism rate. During this process, the theory
(vi) The objective of job design is to maximize identified certain task characteristics such as variety,
human efficiency in jobs. autonomy, responsibility, knowledge and skill, social
Job design is basically a policy of human resource interaction and optional social interaction.
management. It has a number of prospective merits they Q. 5. What is MPS? Explain its mathematical
are: properties of motivating potential score.
(i) Job design simplifies the tasks and roles. Ans. MPS means Motivating Potential Score
Therefore, it evades the indistinctness in the Model. This model was introduced on the basis of the
performance of jobs.
characteristics of the job. The model confirmed that
(ii) Job design takes away the common
three potential scores on the three core dimensions of
characteristics in tasks. This shows them the
job characteristics model have preservative property.
way to rationalization of tasks. Conflicts
among personnel are kept away from them The self-sufficiency and feedback are multiplicative in
to maintain peace and harmony in the character. Therefore, a motivating potential score is
environment. designed. The motivating potential score is equal to the
(iii) Job design permit proper placement of product of the average scores of skill variety, task
employees. Therefore, a suitable job fit identity and task implication and autonomy and feed-
should be reached. back.
(iv) It permits to monitor functional control over As a result, the model recommends those groups
the performance and consequences of the job who work on jobs with high foundation job dimensions
design. are usually forced, satisfied and productive. Job
(v) Job design allocates the merging of
dimensions functions through psychological states in
environmental changes in the job.
controlling the personal and work variables rather than
(vi) It offers elasticity; therefore, workers are
ready to accept changes without much to influence them. The model has established admiration
resistance. for its mathematical properties.
Q. 6. Explain the social information-processing established that labour management conflicts reduced
model. and quality of the product improves by implementing
Ans. SIP model of job design is Social Information this model successfully.
Processing model of job design. The merits of using this model are cost reduction,
Individuals are essential elements of the society and increased turnover, quality of work life, innovation and
have inherent desire to associate and belong to others. creativity, product quality and positive behavioural
Individuals prefer to work in groups rather than working changes.
alone in isolation. In addition to these factors, On the other hand, the model was criticized for the
individuals focus on observational learning and develop hypothesis that workers are matured enough to work as
attitudes by social learning. According to SIP model of teams and would like to adopt flexible work plan.
job design, employees adopt attitudes and behaviour in Q. 8. Discuss the employee development model
response to the social signals that are provided by work of job design.
and other groups with which they associate. The groups Ans. The employee development model was based
are co-workers, superiors, subordinates, reference on the development of employees in the organisations.
groups, friendship groups, family and customers. It The employee development was closely related with
signifies that the information provided by the group on organisational development in modern organisations. In
job aspects is more relevant than the basic job modern organisations, employees were considered as
characteristics, employee’s psychological states and human assets. It was believed that employee needs career
outcomes of the jobs. So, the managerial strategy of growth and development. It was not enough to consider
job design considers information that is shared by the technical and social issues in job design but their
groups about the job. development has to be given importance. The jobs were
Q. 7. ‘Socio-technical impacts, work teams and
designed accordingly keeping in view the long run
flexible work schedules determine the job design.’
interest of the employees. The central theory of the
Discuss.
model is that employees should be competent,
Ans. The organizations who want to establish good
responsible and satisfied. It identified several aspects
and healthy relationships between the superiors and the
in the re-design of jobs. These aspects are scope for
subordinates practice the model of socio-technical
alcoholism treatment, non-discrimination, encouraging
model. It is so because socio-technical model emphasize
discipline, creating consciousness, responsibility and
on the theory that workers are important for the
providing generic monitoring and direction.
organizations. They should be provided with the good
Q. 9. ‘Job design is developed to integrate all
quality of working environment. Person’s development
the factors such as cultural, social, technical and
is necessary for organizational development. Therefore,
other situational factors’. Explain.
the model recommended that jobs should be designed
and re-designed to fulfil the needs of the employees. Ans. It states that integrative job design model has
The ideology of the model is that job design should been designed to make the job lively. The idea behind
be developed on the basis of technical as well as social job design is to make the work motivating and employee
factors. Technical factors are related to the input satisfying. Therefore, the model developed addition of
processing and output mechanism. all the factors such as cultural, social, technical and other
Social factors refer to the associations established situational factors in the process of job design.
among employees and management. A suitable job Some of the factors of the job design are core design
design will maintain balance among the employees, jobs, factors; individual factors; organisational factors and
technology and environment. situational factors.
This model also believes the social factors should In general, the model recommended that job design
be changed constantly. Therefore, job design should is based on the contingency of a situation. Jobs designed
include three important factors they are socio-technical do not take into account the situational factors do not
impacts, work teams and flexible work schedules. produce effectiveness and contentment.
The model was measured as suitable in developing Q. 10. Examine various job redesign strategies.
job design as it is measured on the technical and Do you think that they help in improving the
structural aspects along with human aspects. It was also organisational efficiency? Discuss.
Ans. Job Enrichment is a process that contains (iii) Quality and Efficiency: Job enlargement
certain activities and is not a single time activity. The enhances the efficiency and effectiveness of employees
activities comprises of combining tasks, creating natural as they are formally trained for the new added jobs. It
work units, establishing relationships among personnel, results in higher productivity and the overall
expanding job vertically and providing feed-back effectiveness of the organization.
channels. The advantages of job enrichment are: (iv) Job Enjoyment: Job enlargement provides
(i) Increase in quality and productivity satisfaction and so employees feel less fatigued and
(ii) Enhanced motivation and job satisfaction exhausted. The variety of tasks in the job makes
(iii) Development of additional skills employes happy and delighted.
(iv) Less work load on employees (v) Feedback: Job enlargement comes out as
(v) Enhanced creativity in employees effective measure where an employee can get the
(vi) Increase in pay and prequisites feedback of his performance. It enables him to develop
(vii) Decreased absenteeism and turnover his career and also delivers positive motivation for the
(viii) Less number of grievances future.
(ix) Optimum use of human energy Q. 11. Distinguish between job enrichment and
(x) Increased social benefits due to increase in job enlargement.
quality and productivity. Ans. Job Enrichment: Job Enrichment is a process
Job Enlargement: Job enlargement can be termed that contains certain activities and is not a single time
as complementing variety of tasks in the job. Job activity. The activities comprises of combining tasks,
enlargement refers to the horizontal expansion of jobs. creating natural work units, establishing relationships
It is expansion done to include more variety of tasks among personnel, expanding job vertically and
within the scope of the job. Job enlargement works providing feed-back channels. The advantages of job
effectively when an employee feels his job to be less enrichment are:
challenging and desires for something that is more (i) Increase in quality and productivity
adventurous and challenging in his job. It can be also (ii) Enhanced motivation and job satisfaction
(iii) Development of additional skills
due to less diversity and unsubstantial professional
(iv) Less work load on employees
satisfaction where an employee might feel dissatisfied.
(v) Enhanced creativity in employees
Job enlargement provides variety of tasks that can be
(vi) Increase in pay and perquisites
performed within his job.
(vii) Decreased absenteeism and turnover
For example, if a worker is designated with the job
(viii) Less number of grievances
of counting the finished products and predictably he
(ix) Optimum use of human energy
finds it boring and repetitive. Then the job can be
(x) Increased social benefits due to increase in
enlarged by including certain tasks connected to the job.
quality and productivity.
It can be checking the products before counting, packing
Job Enlargement: Job enlargement can be termed
and delivering the products at the finished goods as complementing variety of tasks in the job. Job
warehouse. etc. enlargement refers to the horizontal expansion of jobs.
The potential benefits of job enlargement are as It is expansion done to include more variety of tasks
follows: within the scope of the job. Job enlargement works
(i) Reduction in the Level of Boredom: Job effectively when an employee feels his job to be less
enlargement helps in reducing boredom and challenging and desires for something that is more
repetitiveness of the employee in the job. It provides adventurous and challenging in his job. It can be also
possibility of increasing the number of tasks performed due to less diversity and unsubstantial professional
by the employee. satisfaction where an employee might feel dissatisfied.
(ii) Utilization of Skills: Job enlargement helps in Job enlargement provides variety of tasks that can be
utilizing the skills and abilities of employees in the job performed within his job.
to the full extent. The feeling of proper utilization of For example, if a worker is designated with the job
employee’s skills provides them with greater satisfaction of counting the finished products and predictably he
and further motivates them. finds it boring and repetitive. Then the job can be
enlarged by including certain tasks connected to the job. Q. 14. ‘Job satisfaction is an inner feeling; it is
It can be checking the products before counting, packing influenced by various organisational and personal
and delivering the products at the finished goods variables’. Elucidate.
warehouse. etc. Ans. Job satisfaction is a multi-variable and
Q. 12. ‘Several environmental factors are indescribable concept. There are number of factors that
considered in the job re-engineering’. Discuss. influence job satisfaction of employees. These factors
Ans. There are several factors which are considered can be classified into two categories. They are
in the process of job re-engineering. They are organisational and personal variables.
information system, government policies, organizat- Organisational Determinants
ional policies technology, competition, appraisal of costs The employees spend major part of their time in
and benefits and prospective challenges. organisation so there are number of organisational
Job re-engineering is a significant method of job factors that determine job satisfaction of the employees.
redesign in the modern organizations. It has a number The job satisfaction in the organizations can be increased
of probable benefits they are improved customer service, by organising and managing the organisational factors.
increased growth opportunities, improved decision The organisation determinants of job satisfaction are as
making, and learning skills, easy and comfortable follows:
attainment of tasks, effective inter personal interaction,
(i) Wages: Wage can be described as the amount
inter-personal communication and improved inter
of reward that a worker expects from the job. Wages
personal relationships.
are an instrument of fulfilling the needs as every worker
Lastly, it should be eminent that alteration brought
expects to get an appropriate reward. The wages are
by globalization, liberalization and privatization have
supposed to be fair, reasonable and equitable. A feeling
forced organization to go for job re-engineering. This
of job satisfaction is felt by attaining fair and equitable
is for the reason that successful re-designing of
rewards.
managerial practices and organization structure adds
importance to the product and service of the (ii) Nature of Work: The nature of work has
organization. Furthermore, re-engineering give out with significant impact on the job satisfaction. Job satisfaction
conventional methods of work procedure. is highly influenced by the nature of work. Employees
Q. 13. Define job satisfaction. Explain its are satisfied with job that involves intelligence, skills,
characteristics. abilities, challenges and scope for greater freedom. Job
Ans. Job satisfaction is an expression of feeling dissatisfaction arises with a feeling of boredom, poor
about the job. It is an attitude and a permanent variety of tasks, frustration and failures.
impression formed about the job. When employees (iii) Working Conditions: Employees are highly
interact with people and other resources while working motivated with good working conditions as they provide
with the job, they experience positive or negative a feeling of safety, comfort and motivation. On contrary,
feelings about the job context and content. The concept poor working conditions bring out a fear of bad health
of job satisfaction has gained significance ever since in employees.
the human relations approach has become popular. Job (iv) Job Content: Factors like recognition,
satisfaction is a psychological aspect that deals with the responsibility, advancement, achievement etc can be
expressions of employees feelings about the job. referred to as job content. A job that involves variety
The characteristics of job satisfaction are: of tasks and less monotonous results delivers greater
● Job satisfaction is an inner feeling. It can be
job satisfaction. A job that involves poor content
inferred through the expression of behaviour.
produces job dissatisfaction.
● Job satisfaction is an attitude. It is a sub-set
(v) Organisational Level: The jobs that are at
of attitude.
higher levels are viewed as prestigious, esteemed and
● Job satisfaction influences the skill and
opportunity for self-control. The employees that are
energy of individual.
● It can be positive or negative. It is expressed
working at higher level jobs express greater job
in a high or low degree. satisfaction than the ones working at lower level jobs.
● Job satisfaction is associated with the
(vi) Opportunities for Promotion: Promotion can
emotional state of human mind. be reciprocated as a significant achievement in the life.
It promises and delivers more pay, responsibility, satisfaction. Women, the fairer sex, are more likely to
authority, independence and status. So, the opportunities be satisfied than their male counterpart even if they are
for promotion determine the degree of satisfaction to employed in small jobs.
the employees. The job satisfaction can also be determined by other
(vii) Work Group: There is a natural desire of factors like learning, skill autonomy, job characteristics,
human beings to interact with others and so existence unbiased attitude of management, social status etc. It is
of groups in organisations is a common observable fact. important for managers to consider all these factors in
This characteristic results in formation of work groups assessing the satisfaction of the employees and
at the work place. Isolated workers dislike their jobs. increasing their level of job satisfaction.
The work groups make use of a remarkable influence Q. 15. How do you measure job satisfaction?
on the satisfaction of employees. The satisfaction of an Explain.
individual is dependent on largely on the relationship Ans. Job satisfaction is a qualitative aspect and
with the group members, group dynamics, group cannot be understood in strict quantitative terms. It is
cohesiveness and his own need for affiliation. an intangible and psychological concept. It was
(viii) Leadership Styles: The satisfaction level on concluded that job satisfaction should be measured
the job can be determined by the leadership styles. Job through survey of employees’ attitudes. In most of the
satisfaction is greatly enhanced by democratic style of organisations, there is a practice of conducting surveys
leadership. It is because democratic leaders promote of employee’s intentions in a regular manner. The
friendship, respect and warmth relationships among the commonly applied techniques employed to measure job
satisfaction are discussed below:
employees. On contrary, employees working under
(i) Rating Scales: Rating scales are the commonly
authoritarian and dictatorial leaders express low level
adopted method that is used for the measuring job
of job satisfaction.
satisfaction. It comprises of certain statements
Personal Determinants
describing the attitude of the employees with respect to
Job satisfaction can be related to psychological
the job, organisation and personal factors. For each
factors and so numbers of personal factors determine
declaration or statement, the employee is invited to
the job satisfaction of the employees. They are as
express his opinion on a scale consisting of different
follows:
expressions.
(i) Personality: The personality of an individual
(ii) Personal Interviews: Conducting personal
can be determined by observing his individual
interviews has also proved important method of
psychological conditions. The factors that determine
measuring job satisfaction of the employees. The experts
the satisfaction of individuals and his psychological
conduct these personal interviews where employees
conditions is perception, attitudes and learning.
express their opinions on job satisfaction. The responses
(ii) Age: Age can be described as a noteworthy
delivered through these interviews are analyzed to find
determinant of job satisfaction. It is because younger
their level of job satisfaction. It is believed that this
age employees possessing higher energy levels are likely
method is likely to have personal biased views of the
to be having more job satisfaction. In older age, the interviewer also.
aspiration levels in employees increase. They feel (iii) Tendencies: The employees are asked to
completely dissatisfied in a state where they are unable express their tendency or inclination on several aspects
to find their aspiration fulfilled, and this reveals their satisfaction or dissatisfaction.
(iii) Education: Education plays a significant Q. 16. ‘Job satisfaction has both positive and
determinant of job satisfaction as it provides an negative impacts’. Explain.
opportunity for developing one’s personality. Education Ans. Job satisfaction is an emotional feature. It is a
develops and improvies individual wisdom and term used for the sensitivity about the job. Job
evaluation process. The highly educated employees can satisfaction is an approach. It is an everlasting thought
understand the situation and assess it positively as they created regarding the job. Employees work together with
possess persistence, rationality and thinking power. people and other resources while working with the job.
(iv) Gender Differences: The gender and race of In the procedure, they experience positive or negative
the employees play important determinants of job feelings about the job context and content.
The concept of job satisfaction has achieved a lot According to Locke, job satisfaction is an agreeable
of importance ever since the human relations approach or positive emotional state which is the outcome of the
has become trendy. Job satisfaction is an etheral evaluation of one’s job or job experience. Andrew Brin
variable. It consists of a compound number of variables, declared that job satisfaction as the quantity of
conditions, feelings and behavioural tendencies. enjoyment or satisfaction connected with a job. More
According to Roberts Dictionary, job satisfaction or so, he acknowledged that if one likes a job strongly
is defined as those external or internal expressions which he will practice high job satisfaction and if he dislikes
give the person a sense of delight or achievement in the the job strongly he will experience job dissatisfaction.
performance of his work. ■■
120
Group Behaviour
Group Formation and Structure

12
INTRODUCTION (a) Formal Work Groups
(b) Informal Work Groups.
Group is communion of two or more individuals Formal groups are the one that are created by the
interacting among themselves for the accomplishment
organisation for some specific purposes. There are four
of similar goals. Its important elements are group
types of formal work groups in an organisation and they
interaction and common goals. Group is formed to
are:
satisfy the needs of an organisation. Team is a group
(i) Command Group
that is formed formally by the organisation for fulfilment
(ii) The Committees
of common goals. On the basis of formation, groups in
an organisation can be classified as formal work groups (iii) The Team
and informal work groups. Formal groups are created (iv) Self-managed Work Teams.
by the organisations and there are four types of formal Informal groups are formed by the individual
groups. They are command group, the committees, the employees and emerge naturally in organisation. They
team and the self-managed work teams. Informal groups are perceived as it is difficult for their organisation to
are formed by individual employees and can be divided formally fulfil some of their bare needs. Sometimes,
as friendship groups and interest groups. Group sizes some employees form informal groups due to their
are of two types –small and large groups. The ideological similarities. These work groups are
development of groups is divided into five stages: considered shadow of the formal organisation. They can
forming, storming, norming, performing and adjourning. be divided into two types and they are:
. (a) Friendship Groups
SUMMARY (b) Interest Groups.
A person joins any company as an individual and The size of the group is an important aspect to
after that he joins a group or forms a group. It is done as determine the functioning and performing of its
to satisfy the needs of an organisation. These needs can members. It is measured by the number of full-time
be psychological, social, safety, economic and cultural members who are involved in achieving set goals. Group
needs which may not be fulfilled by the organisation. sizes are of two types and they are:
Group can be defined as communion of two or more (i) Small Groups
individuals interacting among themselves for the (ii) Large Groups.
fulfilment of similar goal. The important elements of According to Tuckmann, the developments of
group are–group interaction and common goals. group can be divided into five stages and they are
Team is a group which is formally formed by the forming, storming, norming, performing and adjourn-
organisation for the achievement of common goal. The ing. Group cohesiveness is the attractiveness of a group
factors that influence the formation of groups in to its members. Highly cohesive group attracts to its
organisation are psychological, social, security, members and there are many factors which influence
economic, cultural, proximity, interactive interest and the level of cohesiveness of a group. These factors are
influence. The groups in an organisation can be size of the group, homogeneous character of group
classified on the basis of their formation. There are two members, success of the group, competition with other
types of work groups and they are: group and the exclusiveness of the group.
GROUP FORMATION AND STRUCTURE / 121
Group structure helps in enabling to create position together for making effort in the direction of realization
and power of every individual in the group. It influences of the goals effectively and efficiently.
and affects the behaviour of its members and facilitates Team is a group which is formally formed by the
communication within the group. The various structural organization for the achievement of common goal. The
variables that govern groups are formal leadership, factors that influence the formation of groups in
norms, roles, group size and group cohesiveness. organization are psychological, social, security,
Group norms are developed when members in a economic, cultural, proximity, interactive interest and
group share a common idea of acceptable behaviour. It influence.
monitors and checks each other behaviour in the group. Q. 3. Why do people form groups in
It is advantageous and enables a group to accomplish organisations?
its goals. Ans. There are a range of factors, which enables
Group dynamics refers to the forces and interaction the formation of groups in organisations. Some of the
between members of group in a social situation. important factors of group formation are:
Group decision refers to the collective decision (i) Psychological Factors: After associating in a
taken by the entire group for achieving the desired goal particular organisation, a person joins a particular group
in an organization. It has its merits and works better in which he/she finds him/her interest, attitude,
than an individual decision. personality, perception etc. corresponding with other
CHECK YOUR PROGRESS individuals within the department or the organisation.
Thus, a group is formed.
Q. 1. What is Group?
(ii) Social Factors: Persons also form or join the
Ans. Group refers to the relationship of two or more
group depending upon their social class, caste, and
persons working together for the achievement of
religion to satisfy their social needs. They do it mainly
common goal. Jennifer and Gareth have defined a
to satisfy their love, affection and care needs, which at
group as set of two or more people who interact with
first, they think that they are deprived of after leaving
each other to achieve certain goals or to meet certain
their families.
needs.
(iii) Security Factors: When a person feels
Group communication and their initiation towards
insecure over astonishing developments such as sudden
common goal are very important fundamentals of group.
health problem, termination, suspension, local problems
The interaction proves that regular negotiations and
etc., consequently, everyone likes to be in a group to
communication may influence the behaviour of the
feel secured to work. Particularly in a new place of work,
group members.
a new employee needs more security cover than the
In addition to this, the group members may be of
existing ones and thus it also becomes one of the reason
the same opinion to achieve some common goals which
to join the existing group for security.
is termed as group goal. The group goal connects the
(iv) Economic Factors: When persons work in an
members together for making effort in the direction of
organisation, they get every type of economic incentives
realisation of the goals effectively and efficiently.
Q. 2. Distinguish between group and team. and benefits available within the rules and regulations.
Ans. Group refers to the relationship of two or more At times organisations cannot meet up an individual’s
persons working together for the achievement of unintended or obligatory needs like money for marriage,
common goal. Jennifer and Gareth have defined a house construction, medical care and other proposes.
group as set of two or more people who interact with Therefore, they try to be associated with those people
each other to achieve certain goals or to meet certain who will help them at the time of need.
needs. (v) Cultural Factors: Persons are coming to work
Group communication and their initiation towards from various societies and cultures. It so happens when
common goal are very important fundamentals of group. their place of work is far from their place of origin,
The interaction proves that regular negotiations and region and culture; they do not feel comfortable at work.
communication may influence the behaviour of the The reason could be the absence of cultural celebrations.
group members. The group members may be of the same This is also one of the reasons for which individuals
opinion to achieve some common goals which is termed coming from same culture, tradition and speaking similar
as group goal. The group goal connects the members language usually form the group.
Q. 4. Distinguish between Formal and Informal can predict whether a group is small or large. There are
Group. two types of groups – Large Groups and Small Groups.
Ans. Formal work groups are the groups that are Small Groups: In a small group, the group members
formed by the organisations. These groups are formed are likely to interact regularly and get familiar with each
and aim at achieving specific organisational goals. The other in less time. In this type of group, it is reasonably
goals of formal work group are determined as per the easier for the group members to share information and
needs of the organisation. The formal groups can be of recognize individual’s contribution to the group. The
the different like purchase committee, quality control small group members identify themselves easily and
group, disciplinary action committee etc. These types quickly associate themselves with the group’s goals. The
of formal groups are established to accomplish certain motivation and commitment of its members to group
organisational goals like increasing product quality, goals is very high. It is presumed that the members of
safety, discipline, etc. in an organisation. this group derive higher levels of satisfaction.
Informal work groups are the groups that emerge Large Groups: In a large group, the group is large
or materialize naturally in organisations. It can be called and comprises of many group members. As they are large
as the shadow of the formal organisation. They are in numbers, they are less likely to know one another and
called informal groups because organisational perceive may have little personal interaction with each other on a
that it is difficult for their organisations to formally fulfil day-to-day routine basis. So, there exists lower level of
some of the bare needs. It forces to them to feel that interaction among members of this group. It also makes
membership in a group can help them to achieve their information sharing difficult among group members.
goals and meet their needs. For instance, a group of There may be disparity of opinions in identifying
five to six organisational members forms a group to go personal goals and organisational goals for individuals
out for holidays, picnic, movie etc to satisfy their and, hence, there is reduction of their motivation and
common need for affiliation and friendship. There are commitment towards their group. In large groups, the
instances of forming informal groups when some individuals tend to be less satisfied.
employees share some ideological similarity like caste, Q. 7. Enumerate the process of development of
creed, religion etc. group.
Q. 5. What is Self-managed Work Team? Ans. The groups in organisations that we find in
Ans. Self-managed Work Team: In the recent our routine life are not formed over night. There are
years, the concept of self-managed work team is gaining important factors like employee turnover, new selection,
popularity and they have created a remarkable impact transfers and promotions of the employees in the
on organisations as well as on their members. The self- organisation that makes strong impact upon the group
managed work teams are slightly different from normal status. These factors further bring change in the existing
teams. The leader of the self-managed team is identified group. The changes in the groups also bring changes in
by its members. The members of self-managed work group tasks and goals. It is very interesting and
teams are responsible for ensuring that their team significant to observe the change in group in this due
achieves its set goals. The performance of leadership course of time. It becomes important to enhance group
tasks is assigned to individual group members. The team performance and so it is very important to manage these
uses its full power to discipline its members who are changes effectively.
not performing at adequate levels. There are efforts to According to Tuckman, the developments of a
coordinate group members and processes like hiring group can be divided into five stages and they are
and firing of employees for and within the team is done forming, storming, norming, performing and adjourning.
by the team itself. Forming: Forming is the first stage of group
Q. 6. Distinguish between small and large group. development. In forming, members try to know and
Ans.The most important determinant to judge identify each other and establish a common
behaviours of group members is Group Size. Generally understanding among them. The group members struggle
speaking, the size of group is measured by the number to clarify group goals and determine appropriate
of its full-time members who take active part in behaviour within the group. The first stage of forming is
achieving group’s goals. The group can comprise of completed once individuals within the group feel that
two or more people. The numbers of group members they are important elements of the group.
Storming: The word “storm” signifies violent Q. 8. What is Group Cohesiveness?

atmospheric disturbance or conflict. The second stage Ans. The group develops maturity and becomes
is called storming. This second stage is characterised cohesive or interconnected with the passage of time.
by considerable amount of conflict. In storming, group Cohesiveness in a group is achieved when the group
members try to resist for being controlled by the group appears to be very attractive to its group members. In
very often. It is a stage where the members disagree such type of cohesiveness, individuals value their group
about who should lead the group. The group members membership and have a very strong enthusiasm and
also have difference of opinion over the strength and motivation to remain members of the group. Group
might of their group leader. This stage of storming is cohesiveness can be described as the attractiveness of a
completed when group members no longer resist the group to its members. A highly cohesive group appeals
group’s control and there is mutual understanding and a lot to its members. The cohesiveness of a group plays
agreement over the leadership of the group. This stage important role in the performance and effectiveness of
of Storming is assumed to be completed normally when the group. There are a large number of factors that
group members consider that it is better to work together influence cohesiveness level of a group. Those important
for the achievement of the group goals than sharing factors can be broadly categorised into five types. They
different opinions. . are : size of the group, homogeneous character of group
Norming: Norming is the third stage in the group members, success of the group, competition with other
development. In norming, group members really start groups and the exclusiveness of the group.
feeling that they belong to the group. The group (i) Size of the Group: As we know the fact that
members develop a close understanding and relationship small family is more cohesive or interconnected and so
with each another. The bond of friendship and fraternity is the group. The smaller the group, the more will be
develops between group members. It also develops a cohesiveness and more will be their satisfaction. The
well-developed sense of common purpose among the larger group will deliver dissatisfaction to its members
group members. In norming stage, group members have and will be having cohesiveness. In large groups, it is
the same opinion on standards to guide the behaviour normally observed that only few members of the groups
try to dominate everything such as suggestion, opinion,
in the group.
routine functioning etc. It does not give other members
Performing: The stage of performing is reached
opportunity to be part of this decision-making process.
when the group is ready to tackle all types of group
So, the large groups are more prone to conflict, members
tasks. The members of the group work towards
develops incompatibility with each other than small or
accomplishment of the group goals. In this stage, the
medium size group in terms of cohesiveness.
real work of the group gets accomplished. Groups
(ii) Homogeneous Character of Group
should not take very long time to arrive at the stage of
Members: The greater amount of similarity felt by
performing.
group members with each others helps in building bonds
Adjourning: Adjourning is the last stage of the
of faith, trust and satisfaction among them. It enhances
group development. In adjourning, a group disbands or
communication in group members. The group can be
disperses after achieving its goals. The consistently
considered to be most cohesive when its members are
working work groups in organisations do not go through
more homogeneous in terms of age, sex, education,
this stage as they remain at the performing stage. martial status etc. The members also share certain
The five-stages model of group development attitudes, values, experiences and other characteristics
comprising of forming, storming, norming, performing that are common to each other.
& adjourn-ing though sounds and rational. The research (iii) Success of Group: The success of the group
reveals that all groups do not go through each of the makes it cohesive. The sense of realization is developed
stages and groups do not necessarily go through the among group members to avoid differences for
stages in these sequences. They observed that there can accomplishing group goals. The groups becomes
be considerable levels of conflict throughout their attractive to its members when the groups become
existence. So, the elements of storming stage carry on successful in achieving its goals. This further enhances
for a long time. cohesiveness in the group.
(iv) Competition with other Groups: Group It becomes difficult and impossible to evaluate and
cohesiveness is increased in the organisation when identify the individual levels of performance by
competition between groups increases. The growing supervisor. The members of group realize that he will
competition among groups in an organisation motivates not receive any positive outcomes for performing at a
members of each group to come together for achieving low level.
group goals. This is the one basic reason where The lack of connection between inputs and
organisations promote group cohesiveness by having outcomes can be the reasons for the lower level of the
work groups competition in the organisation motivation of the group members. Social loafing also
between /among groups over sales target, zero defect takes place in workers who believes that their own efforts
production, minimization of wastages; etc. The are insignificant or not really needed, and this belief
recognition of group names and publicizing gives them lowers their level of motivation.
encouragement and also encourages healthy Social loafing is a serious problem for work groups.
competition. It maintains good quality and maintains It results in a process loss that lowers group
extraordinary working levels among the groups. performance. During the occurrence of social loafing,
(v) Exclusiveness: The group exclusiveness states actual group performance is lower than potential
the status of the group in the organisation. It implies to performance. It encourages developing an attitude of
the superiority and selectiveness of a group that it working individually for an individual than working
possesses to appoint its members. It is also the extent together in a group. The social loafing can be reduced
where an outsider looks up to its ground members. It by reducing the size of the groups.
also provides special rights and privileges to its group Q. 10. Distinguish between group roles and
members. The cohesive group members become more group norms.
active participants in the group activities. It also Ans. If a group comprises more than one individual
increases the level of communication within the group. in it then there is every possibility of tension, confusion
The cohesive group members share a common goal and and conflict over the rights, duties and status of the group
develop high group loyalty and unit together to fight among its members. Every group, develops its role
out any threat. The flow of information is very fast in
norms, and rules irrespective of its type for its smooth
cohesive work group.
functioning. The group members as well as managers
Q. 9. What do you mean by social loafing?
are helped by roles and rules to control the member’s
Ans. Social loafing can be expressed as the
behaviour in the group. It also specifies the behaviour
inclination of individuals to apply fewer attempts while
of each member of the group. It is done to make group
at work in a group than when they work alone. Every
effective and perform at highest level to achieve its set
time persons working together in a group, it becomes
of goals. The roles and rules prove to be formal
difficult to evaluate and identify an individual’s
contribution to group performance by the other group requirements to facilitate the smooth functioning of
members or by the supervisors under whom they work. group.
For example, group of workers who are mutually On the other hand, norms are the unwritten rules
responsible for quality control in an organisation can and regulations that govern the behaviour and actions
not be individually assigned to particular areas but have of its members. Norms are the acceptable standards of
to work together to deliver the desired result. There is a behaviour of a group which is commonly shared by its
strong chance for social loafing when individuals work members. A group can be termed as effective group
in groups and their performances are not readily that control the behaviour of its members through its
observable. norms and channelize their efforts for the
Social loafing makes great impact upon the group accomplishment of organisational as well as personal
effectiveness. The efforts and performance of goals. The group rewards the members who conform to
individuals in a group are likely to be highest when the norm in a specified manner through verbal praise
outcomes of such as praise and pay are administered to and they also get help from other members. The group
members individually based on the level of their also delivers punishment to the members who deviate
individual performance. from the norm.
The norms are developed when members in a group competition. It maintains good quality and maintains
share a common idea of acceptable behaviour that extraordinary working levels among the groups.
monitors each other’s behaviour in the group. It is (iii) Exclusiveness: The group exclusiveness states
observed that many norms are developed through the the status of the group in the organisation. It implies to
past experiences of several members from other groups the superiority and selectiveness of a group that it
and from other organisations. There are occasions when possesses to appoint its members. It is also the extent
some critical incidents in life of the organisations set where an outsider looks up to its ground members. It
the norms for the group. also provides special rights and privileges to its group
Compliance is the first and the most commonly used members. The cohesive group members become more
criteria for conformity of the group norms. It is active participants in the group activities. It also
confirmatory to a norm in order to attain rewards or increases the level of communication within the group.
avoid punishment. A sense of realisation is developed The cohesive group members share a common goal and
among them that the compliance of norm will bring develop high group loyalty and unit together to fight
certain benefits and ignoring it will bring certain costs. out any threat. The flow of information is very fast in
For the conformity of group norms, groups put extra cohesive work group.
pressure on the members to change their attitude and Heterogeneous group
behaviour. (i) Group Status: Group status has its importance
Q. 11. Distinguish between homogeneous groups and status in the organisation as it depends upon the
and heterogeneous groups. tasks performed by a group in an organisation. It is not
Ans. Homogeneous Character of Group expressed but the status of a group is absolutely agreed
Members: The greater amount of similarity felt by upon. For instance, a top management has a very high
group members with each others helps in building bonds status as it set organisation goals as well as know the
of faith, trust and satisfaction among them. It enhances means of achieving these goals in the organisation. The
communication in group members. The group can be higher will be the status if the task performed by a group
considered to be most cohesive when its members are is higher in importance. The members of organisation
more homogeneous in terms of age, sex, education, gets motivated to perform at the highest level through
marital status etc. The members also share certain the status of the group.
attitudes, values, experiences and other characteristics (ii) Group Roles: The structure of the group states
that are common to each other. the rules of its roles of the members to smoothen the
(i) Success of Group: The success of the group progress of the control of behaviour. Group roles tells
makes it cohesive. The sense of realization is developed group members about their set tasks. The role enables
among group members to avoid differences for the group to hold its members responsible for their
accomplishing group goals. The groups become behaviour and provide the group with a standard of
attractive to its members when the groups become evaluation through which the behaviour of the individual
successful in achieving its goals. This further enhances member and the group as a whole can be evaluated.
cohesiveness in the group. The role relationships may be formally specified in a
(ii) Competition with other Groups: Group written job description. The description tells that about
cohesiveness is increased in the organisation when an expected role of occupant to interact with others to
competition between groups increases. The growing achieve group’s or organisation’s goals.
competition among groups in an organisation motivates (iii) Written Rules: Written rules have to be
members of each group to come together for achieving established in a group to control the behaviours of its
group goals. This is the one basic reason where members, to ensure high levels of performance and the
organisations promote group cohesiveness by having attainment of group goals. These rules specify
work groups competition in the organisation behaviours that are required by group members and
between /among groups over sales target, zero defect behaviours that are not allowed. These rules have several
production, minimization of wastages; etc. The advantages in controlling and managing behaviour and
recognition of group names and publicizing gives them performance of the members of the group. It helps the
encouragement and also encourages healthy groups to ensure that at what time and how will their
members perform their assigned task. It will be in the organisation. It helps them to work to
contributing factor to group and organisational implement the decision wholeheartedly to
effectiveness and avoid behaviours that weaken the achieve the group as well as organisational
performance and goal attainment. The rules help goals.
beginners to learn the accurate way of performing their The major limitations of group decisions are as
roles. Written rules can be developed at any stage of its follows:
development. Generally speaking, the rules that are It is time consuming to arrive at a consensus when
developed at early stages are often changed or decision is to be taken by the group. It happens due to
abandoned as the nature of the group’s work, group goals complexity of the problems, personality differences and
or organisational goals changes. politics within the group.
Q. 12. Compare the merits and limitations of (i) Group decisions are time consuming. It
group decisions. demands lot of time to arrive at a consensus
Ans. Decision making is considered to be one of when decisions are to be taken by the group.
the most significant function of a manager. The decision This is due to the factors like complexity of
can be taken by group or by an alone individual. The the problems, personality differences and
decision taken alone by a manager is called individual politics within the group.
decision-making and when a group takes a decision, it (ii) In group decisions there is big probability
is called group decision-making. The decisions can be that confidentiality may not be maintained.
taken individually or by groups as they are decided by (iii) Group decision is expected to be dominated
the nature of the problem and situation. Group decisions by a few members and this can ultimately
are considered to be more effective and better than the affects its spirit and effectiveness.
individual decisions. In modern day organizations, they (iv) Nobody likes to share any responsibility in
constitute teams, groups and committees to take group decisions and so sometimes it comes
decisions. Group decisions have its merits and to be out to be a heartless, ineffective and
limitations. delayed decision.
(v) Due to non-cohesiveness in group, it
Merits of Group Decisions:
becomes difficult in decision-making as
(i) If there is agreement and harmony among the
difference of opinions may hinder group
members of a group, group decisions can be
decision-making. It is desired t o have
better than the individual decisions. It is
because; individual has limited knowledge, cohesive work groups to arrive at a definite
capabilities, ideas and alternatives. The decision.
unanimous decision taken by the group is TERMINAL QUESTIONS
more effective and clearer in all respects.
(ii) Group decisions are based on the collective Q. 1. What is a group? Why do people form
knowledge, experiences and information of groups in organisation? Do you think that formation
several members of the group. The decisions of group serve their purposes? Discuss.
taken by the group improves the quality of Ans. Group refers to the relationship of two or more
decision. It can also be that their decision- persons working together for the achievement of
making takes into account more alternatives. common goal. Jennifer and Gareth have defined a
(iii) Due to large number of people participating group as set of two or more people who interact with
in it, it builds a feeling of togetherness among each other to achieve certain goals or to meet certain
members that ultimately enhances the needs.
commitment, satisfaction and participation Group communication and their initiation towards
level of members to implement the decision. common goal are very important fundamentals of group.
(iv) Group decision helps in personality The interaction proves that regular negotiations and
development and creating awareness of the communication may influence the behaviour of the
members of the group about the ongoing group members.
activities of the organisation. It also exposes In addition to this, the group members may be of
them to the limitations and controls existing the same opinion to achieve some common goals which
is termed as group goal. The group goal connects the Ans. Group refers to the relationship of two or
members together for making effort in the direction of more persons working together for the achievement of
realisation of the goals effectively and efficiently. common goal.
There are a range of factors, which enables the Group communication and their initiation towards
formation of groups in organisations. Some of the common goal are very important fundamentals of group.
important factors of group formation are: The interaction proves that regular negotiations and
(i) Psychological Factors: After associating in a communication may influence the behaviour of the
particular organisation, a person joins a particular group group members. The group members may be of the same
in which he/she finds his/her interest, attitude, opinion to achieve some common goals which is termed
personality, perception etc. corresponding with other as group goal. The group goal connects the members
individuals within the department or the organisation. together for making effort in the direction of realization
Thus, a group is formed. of the goals effectively and efficiently.
(ii) Social Factors: Persons also form or join the Team is a group which is formally formed by the
group depending upon their social class, caste, and organization for the achievement of common goal. The
religion to satisfy their social needs. They do it mainly factors that influence the formation of groups in
to satisfy their love, affection and care needs, which at organization are psychological, social, security,
first they think that they are deprived of after leaving economic, cultural, proximity, interactive interest and
their families. influence.
(iii) Security Factors: When a person feels Formal work groups are the groups that are formed
by the organisations. These groups are formed and aim
insecure over astonishing developments such as sudden
at achieving specific organisational goals. The goals of
health problem, termination, suspension, local problems
formal work group are determined as per the needs of
etc., consequently, everyone likes to be in a group to
the organisation. The formal groups can be of different
feel secured to work. Particularly in a new place of work,
types like purchase committee, quality control group,
a new employee needs more security cover than the
disciplinary action committee etc. These types of formal
existing ones and, thus, it also becomes one of the reason
groups are established to accomplish certain
to join the existing group for security.
organisational goals like increasing product quality,
(iv) Economic Factors: When persons work in an
safety, discipline, etc. in an organisation.
organisation, they get every type of economic incentives Q. 3. What do you mean by group development?
and benefits available within the rules and regulations. Explain different stages of the development of a
At times organisations cannot meet up an individual’s group.
unintended or obligatory needs like money for marriage, Ans. The groups in organisations that we find in
house construction, medical care and other proposes. our routine life are not formed over night. There are
Therefore, they try to be associated with those people important factors like employee turnover, new selection,
who will help them at the time of need. transfers and promotions of the employees in the
(v) Cultural Factors: Persons are coming to work organisation that makes strong impact upon the group
from various societies and cultures. It so happens when status. These factors further bring change in the existing
their place of work is far from their place of origin, group. The changes in the groups also bring changes in
region and culture; they do not feel comfortable at work. group tasks and goals. It is very interesting and
The reason could be the absence of cultural celebrations. significant to observe the change in group in this due
This is also one of the reasons for which individuals course of time. It becomes important to enhance group
coming from same culture, tradition and speaking similar performance and so it is very important to manage these
language usually form the group. changes effectively.
Yes, the formation of group does solve the purpose According to Tuckman, the developments of a
of the organization after analyzing the characteristics group can be divided into five stages and they are
of group formation as it fulfils all the aspects of a forming, storming, norming, performing and adjour-
personality and of the organisation as a whole. ning.
Q. 2. How is group different from team? Explain (i) Forming: Forming is the first stage of group
the features of different types of formal work group. development. In forming, members try to know and
identify each other and establish a common understand- Q. 4. What is group structure? Why do a group
ing among them. The group members struggle to clarify needs a structure? How does the structure serve the
group goals and determine appropriate behaviour within purpose of group members?
the group. The first stage of forming is completed once Ans. A structure has to be constructed in a group
individuals within the group feel that they are important of its own to establish and maintain norms. The structure
elements of the group. of the group will make possible to create position and
(ii) Storming: The word “storm” signifies violent power in the group. Leadership can be rotated
atmospheric disturbance or conflict. The second stage throughout the membership but the structure requires a
is called storming. This second stage is characterised leader to lead the group. It will designate the desired
by considerable amount of conflict. In storming, group duties to the concerned persons in the group. The status
members try to resist for being controlled by the group in a group is earned by its members by enhancing the
very often. It is a stage where the members disagree
interest of the group. The group structure makes strong
about who should lead the group. The group members
impact and influences on the behaviour of its members.
also have difference of opinion over the strength and
might of their group leader. This stage of storming is It facilitates the progress of communication within the
completed when group members no longer resist the group. In desired circumstances, the group leader will
group’s control and there is mutual understanding and be in a position to control the behaviour and activity of
agreement over the leadership of the group. This stage its members because of the group structure. The group
of storming is assumed to be completed normally when structure enables to maintain discipline and cooperation
group members consider that it is better to work together throughout the group meeting. Formal leadership,
for the achievement of the group goals than sharing norms, roles, group size and group cohesiveness are the
different opinions. various structural variables that govern groups.
(iii) Norming: Norming is the third stage in the There is every possibility of tension, confusion, and
group development. In norming, group members really conflict over the rights, duties and status in a group
start feeling that they belong to the group. The group among its members when there are more than one
members develop a close understanding and relation- individual in a group. Every group, develops its role
ship with each another. The bond of friendship and
norms, and rules irrespective of its type for its smooth
fraternity develops between group members. It also
functioning. The roles and rules help the group members
develops a well-developed sense of common purpose
of the group emerges among the group members. In as well as managers not only to control the member’s
norming stage, group members have the same opinion behaviour in group. It also specify about the behaviours
on standards to guide the behaviour in the group. to be imbibed by group members for the effective
(iv) Performing: The stage of performing is functioning and performing at highest level to achieve
reached when the group is ready to tackle all types of set goals. These roles and rules are the formal
group tasks. The members of the group work towards requirements to make possible the smooth functioning
accomplishment of the group goals. In this stage, the of group.
real work of the group gets accomplished. Groups Norms are the unwritten rules and regulations that
should not take very long time to arrive at the stage of govern the behaviour and actions of its members. It is
performing. the acceptable standards of behaviour of a group which
(v) Adjourning: Adjourning is the last stage of is commonly shared by its members. A group can be
the group development. In adjourning, a group disbands termed effective that control the behaviour of its
or disperses after achieving its goals. The consistently members through its norms and channelise their effort
working work groups in organisations do not go through for the accomplishment of group as well as the
this stage as they remain at the performing stage. The organisational goals. The group appreciates and rewards
five-stages model of group development comprising of
its members who conform to the norm in a specified
forming-storming-norming-performing-adjourning
manner through verbal praise and they also get help from
though sounds and rational. The research reveals that
all groups do not go through each of the stages and other members. On the other hand, group punishes its
groups do not necessarily go through the stages in these members when anybody in the group deviates from the
sequences. They observed that there can be considerable norm.
levels of conflict throughout their existence. So, the The norms are developed when members in a group
elements of storming stage carry on for a long time. share a common idea of acceptable behaviour that
monitors each other’s behaviour in the group. There are Merits of Group Decisions:
many norms that get developed because several (i) If there is agreement and harmony among the
members bring their past experiences from other groups members of a group, group decisions can be
and from other organisations. In many cases, some better than the individual decisions. It is
critical incidents in the life of the organisation may also because; individual has limited knowledge,
set the norm for the group. capabilities, ideas and alternatives. The
Compliance is the first and the most commonly used unanimous decision taken by the group is
criteria for conformity of the group norms. It is more effective and clearer in all respects.
confirmatory to a norm in order to attain rewards or (ii) Group decisions are based on the collective
avoid punishment. A realisation is developed among knowledge, experiences and information of
members that the compliance of norm will bring certain several members of the group. The decisions
benefits and ignoring it will bring certain costs. The taken by the group improves the quality of
groups lay tremendous pressure on their members to decision. It can also be that their decision-
change their attitude and behaviour for the conformity making takes into account more alternatives.
of group norms. (iii) Due to large number of people participating
The advantages of norms for a group are as follows: in it, it builds a feeling of togetherness among
(i) The norms enable a group to accomplish its members that ultimately enhances the
commitment, satisfaction and participation
goals.
level of members to implement the decision.
(ii) It helps the group to control and regulate the
(iv) Group decision helps in personality develop-
behaviour of its members without the help
ment and creating awareness of the members
of external influence.
of the group about the ongoing activities of
(iii) The norms make possible for a group to
the organisation. It also exposes them to the
survive in the face of threat and competition
limitations and controls existing in the
from other groups. Norms protect the group organisation. It helps them to work to
and its members from outside pressure and implement the decision whole heartedly to
interference. achieve the group as well as organisational
(iv) The norms help the group and its member to goals.
express group’s value and give it a unique Limitations of Groups Decisions
identity of its own. The major limitations of group decisions are as
(v) The norms of the group enhance the follows:
predictability of group members in terms of It is time consuming to arrive at a consensus when
performance, appearance etc. decision is to be taken by the group. It happens due to
Q. 5. What is group decision? Explain its merits complexity of the problems, personality differences and
and limitations. Do you think that group decision is politics within the group.
better than individual decision? Give your (i) Group decisions are time consuming. It
arguments. demands lot of time to arrive at a consensus
Ans. Decision-making is considered to be one of when decisions are to be taken by the group.
the most significant functions of a manager. The decision This is due to the factors like complexity of
can be taken by group or by an alone individual. The the problems, personality differences and
decision taken alone by a manager is called individual politics within the group.
decision-making and when a group takes a decision, it (ii) In group decisions there is big probability
is called group decision-making. The decisions can be that confidentiality may not be maintained.
taken individually or by groups as they are decided by (iii) Group decision is expected to be dominated
the nature of the problem and situation. Group decisions by a few members and this can ultimately
are considered to be more effective and better than the affects its spirit and effectiveness.
individual decisions. In modern day organizations, they (iv) Nobody likes to share any responsibility in
constitute teams, groups and committees to take group decisions and so sometimes it comes
decisions. Group decisions have its merits and to be out to be a heartless, ineffective and
limitations. delayed decision.
(v) Due to non-cohesiveness in group, it among them that the compliance of norm will bring
becomes difficult in decision-making as certain benefits and ignoring it will bring certain costs.
difference of opinions may hinder group For the conformity of group norms, groups put extra
decision-making. It is desired to have pressure on the members to change their attitude and
cohesive work groups to arrive at a definite behaviour.
decision. The advantages of group norms are as follows:
Q. 6. Write notes on: (i) Norms enables a group to accomplish its
(i) Group norms goals.
(ii) Social loafing (ii) Norms help the group to control and regulate
(iii) Group dynamics the behaviour of its members without
(iv) Small and large groups external influence.
Ans. (a) Group norms: If a group comprises more (iii) Norms enable a group to survive in the face
than one individual in it then there is every possibility of threat and competition from other groups.
of tension, confusion and conflict over the rights, duties They protect the group and its members from
and status of the group among its members. Every group, outside pressure and interference.
develops its role norms, and rules irrespective of its type (iv) Norms help the group and its members to
for its smooth functioning. The group members as well express group’s value and give the group a
as managers are helped by roles and rules to control the unique identity of its own.
member’s behaviour in the group. It also specifies the (v) Norms of the group enhance the predicta-
behaviours of each member of the group. It is done to bility of group members in terms of
make group effective and perform at highest level to performance, appearance etc.
achieve its set of goals. The roles and rules prove to be (ii) Social loafing: Social loafing can be defined
formal requirements to facilitate the smooth functioning as the tendency of individuals to exert less effort when
of group. they work in a group when they work alone. Whenever,
On the other hand norms are the unwritten rules individuals work together in a group, it sometimes
and regulations that govern the behaviour and actions becomes difficult to evaluate and identify an individ-
of its members. Norms are the acceptable standards of ual’s contribution to group performance by the other
behaviour of a group which is commonly shared by its group members or by the supervisors under whom they
members. A group can be termed as effective group work.
that control the behaviour of its members through its For instance, group of workers who are jointly
norms and channelize their efforts for the accomplish- responsible for quality control in an organisation can
ment of organisational as well as personal goals. The not be individually assigned to particular areas but have
group rewards the members who conform to the norm to work together to deliver the desired result. There is a
in a specified manner through verbal praise and they strong possibility for social loafing when individuals
also get help from other members. The group also work in groups and their performances are not readily
delivers punishment to the members who deviate from observable.
the norm. Social loafing makes great impact upon the group
The norms are developed when members in a group effectiveness. The efforts and performance of individ-
share a common idea of acceptable behaviour that uals in a group are likely to be highest when outcomes
monitors each other’s behaviour in the group. It is of such as praise and prey are administered to members
observed that many norms are developed through the individually based on the level of their individual
past experiences of several members from other groups performance.
and from other organisations. There are occasions when It becomes difficult and impossible to evaluate and
some critical incidents in life of the organisations set identify the individual levels of performance by
the norms for the group. supervisor. The members of group realize that he will
Compliance is the first and the most commonly used not receive any positive outcomes for performing at a
criteria for conformity of the group norms. It is low level.
confirmatory to a norm in order to attain rewards or The lack of connection between inputs and
avoid punishment. A sense of realisation is developed outcomes can be the reasons for the lower level of the
motivation of the group members. Social loafing also involves the argument of internal and external
takes place in workers who believes that their own efforts determinants of a group change and theories of group
are insignificant or not really needed, and this belief formation.
lowers their level of motivation. (iv) Small and large groups: Group size is an
Social loafing is a serious problem for work groups. significant tool to enumerate the behaviour of a group.
It results in a process loss that lowers group The size of a group is normally calculated by the number
performance. During the occurrence of social loafing, of full-time individuals who are involved in achieving
actual group performance is lower than potential the group’s goals. On the other hand, a group can be
performance. It encourages developing an attitude of collection of just two or more people. On the basis of
working individually for an individual than working number of members, a group can be a small or large
together in a group. The social loafing can be reduced group.
by reducing the size of the groups. (a) Small groups: In a small group, associates are
(iii) Group dynamics: While evaluating the group expected to know everybody and communicate regularly
from the beginning to development stage of with each other. In a small group, it is comparatively
organization, it is expected to go through various stages easy for members to share information and be familiar
and may find many ups and downs in the course of with individual’s involvement to the group. The
action. Groups are not easily formed. A group can never members of a small group identify the goals of the group
be stationary for ever. In case a group remains stationary, easily and quickly. The motivation and commitment
it will not attain efficiency on its own and may not be level of the members is higher towards the group goals,
very useful for the organisation and for the group. therefore, the member of this group obtain higher levels
Group dynamics is defined as the exchanges and of contentment.
services between group members in social (b) Large groups: In a large group, members are
circumstances. It relates to alterations which takes place more in number as compared to the small group. Due to
in groups and is related with the interaction and forces large number of people in a group, they are less expected
obtained among group members in a social situation. to know one another and, thus, have very less personal
In the perspective of organisational behaviour, it is contact with each other. It results in the lower level of
related to the dynamics of members of both formal and interaction among members of this group and it makes
informal groups which exist in organisations. information sharing difficult between the group
Kurt Lewin has given due importance to the term members.
group dynamics in the year 1930s. There are different At times, the aspect which individuals consider
observations about group dynamics. One is that group might lead to their own assistance to the group. It may
dynamics includes the internal structure, formation and turn out to be unimportant to the group, which eventually
process of the group which controls the group itself and reduces their motivation and commitment towards
the other groups in the organisation. The other group. Therefore, people normally tend to be less
observation conveys that it as a set of methods and satisfied in larger groups.
associates it with role playing, group therapy sensitivity
training and other techniques. Group dynamics also ■■
132
Communication
13
programmes and policies of the organisation. It is a
INTRODUCTION
continuous and dynamic process. In communication, the
Communication is a process through which sender encodes an idea that gets transmitted through a
information and ideas gets transformed from one person channel to receiver who decodes message and then gains
to another. Good communication plays an important role an understanding of the idea to the sender. The same
in the smooth functioning of the organisation. It pattern is followed in the reverse process of feedback.
enhances efficient managerial activities in an The process of communication includes the following
organisation. The elements of communication are steps:
communicator, encoding, message, medium, decoding, (i) Understandable perception of idea or
receiver and feedback. Communication network is made problem
up of two channels and they are formal and informal. (ii) Participation of other persons involved
Formal communication is purposely created path (iii) Transmission of the message
prescribed by officials for the flow of communication (iv) Motivating the receiver of the message
among various positions in the organisations. Informal (v) Evaluation of the effectiveness of the
communication or grapevine is the mode of communication.
communication by which people carry on social, non- The various elements of communication are:
programmed activities within formal boundaries of the (i) Communicator
system. Communication is two-way traffic but can face (ii) Encoding
barriers due to delay, distortion and dilution. The (iii) Message
methods to overcome barriers in communication help (iv) Medium
in enhancing the efficiency of the organisation. (v) Decoding
SUMMARY (vi) Receiver
(vii) Feedback.
Communication can be defined as the process by
which information and ideas get transferred from one Communication Network is referred to as the sum
person to another. A successful and effective of those channels that connects various positions for
communication always aims at imparting ideas and the purposes of communication. They are made up of
information that makes one-self understand by the two types of channels and they are:
others. The success of any organisation depends upon (i) Formal
good communication and it plays an important role in (ii) Informal.
the functioning of the organisation. Communications Formal communication is purposely created path
enhances efficient managerial activities in an that official prescribed the path for flow of
organisation. It plays major part in manager’s working communication among various positions in the
as his working time is mainly devoted to effective organisation. The channel of communication under this
communicating. Communication has its major impact system is narrow and helps in exercising control over
in conveying the right messages, establishing coordina- subordinates. It has its limitations as it enhances
tion, development of managerial skills and maintaining organisational distance, bottlenecking in the flow, higher
good industrial relationships through execution of possibility of transmitting errors etc.
COMMUNICATION / 133
Informal Communication or Grapevine is the communication through proper channel, sharing

process by which people carry on social, non- responsibilities of jobs, facilitating adequate
programmed activities within the formal boundaries of conveniences and facilities to promote communication,
the system. It is generally multiple in nature and channel developing better inter-personal relationships and
where same person have social relationship with various continuous evaluation of the flow of communication in
persons working in the same organisation. The term different directions. Latest developments and new
“Grapevine” was coined during U.S Civil War where methods in the field of communication have made life
intelligence telephone lines were held loose from tree easier for people and have brought them closer.
to tree in the manner of grapevine. It was later used
synonym for informal communication. There are CHECK YOUR PROGRESS
different types of grapevine and they are as follows: Q. 1. What is the concept of communication
(i) Single Stand process?
(ii) Gossip Ans. Communication can be defined as the process
(iii) Probability by which information and ideas get transferred from
(iv) Cluster. one person to another. A successful and effective
Communication must be moving in two-way traffic communication always aims at imparting ideas and
as it will acquire greater efficiency in achieving set goals information that makes one-self understand by the
for an organisation. The chain between management and others. The success of any organization depends upon
the operating force are supervisors. They interpret good communication and it plays an important role in
communication from management and correlate the the functioning of the organization. Communication
attitude and thinking of people that helps in making enhances efficient managerial activities in an
necessary amendments in their commands. organisation. It plays major part in manager’s working
Good communication must reflect the policies and as his working time is mainly devoted to effective
practices of management and should be as direct as communicating. Communication has its major impact
possible. There are major principles of communication in conveying the right messages, establishing
that guides the management in the foundation of policies. coordination, development of managerial skills and
These principles are as follows: maintaining good industrial relationships through
(i) Clarifying the ideas before communication execution of programmes and policies of the
(ii) Object of communication organization. It is a continuous and dynamic process.
(iii) Environmental factors In communication, the sender encodes an idea that gets
(iv) Consultation with others transmitted through a channel to receiver who decodes
(v) Tone and contents of the message message and then gains an understanding of the idea to
(vi) Convey things for help and value to listeners the sender.
(vii) Follow-up communication Q. 2. Prepare a list of most frequently used
(viii) Communication for present and future informal channel of communications.
(ix) Correlation between action and communi- Ans. There are four types of informal communi-
cation cation channels that have been identified and they are:
(x) Be a good listener. single strand, gossip, probability and cluster.
Communication can face barriers and it can be due (i) The individual in the single strand network
to delay, distortion and dilution. The reasons that can communicates with other individuals’
cause interferences in communication are personal, through intervening persons.
physical and semantic (science of sound). These barriers (ii) The individual in the gossip network
need to be lowered to achieve effectiveness in communicates non-selectively.
communication. There have to be methods to overcome (iii) The individual in the probability network
these barriers as they help in enhancing the effectiveness communicates randomly with other individ-
in communication. The measures taken to overcome uals according to the law of probability.
these barriers mainly include factors like making (iv) The individual in the cluster network
organisational policies clear and explicit, specifying the communicates with only those individuals
subject-matter to be communicated, propagating whom he trusts.
Q. 3. What kind of barriers do you experience (i) The policy of the organization must be clear
while communicating in your organisation? and explicit. It should be designed in such a
Ans. Communication can face barriers and it can way so that it encourages communication
be due to delay, distortion and dilution. When the flow. It should be easily understandable by
information gets distorted due to the faulty system or all the levels. The policies for communication
jealousy or faulty listening or inadequate vocabulary should be clear and should favour the
or badly chosen words, it looses its meaning. There promotion of communication in the organiz-
are psychological barriers which are caused by ation.
prejudice, preconceived notion, distrust of the (ii) The policy should be able to specify the
communicator, misinterpretation of his intention and subject to be communicated to others. It
the things like. Dilution is caused by a person who is means that the subject-matter should be
posing as a yes man as to what he expects to hear rather expressive enough to determine the needs of
than presenting the actual feedback of the matter the organization rather than creating any
concerned. confusion.
The reasons that can cause interferences in (iii) Communication through proper channel
communication are personal, physical and semantic works out effectively. But the flow of
(science of sound). These barriers need to be lowered communication in the orderly form should not
to achieve effectiveness in communication. There have be insisted upon every time. At times it can
to be methods to overcome these barriers as they help be ignored and not strictly followed in order
in enhancing the effectiveness in communication. to keep the functioning of the organization
smooth and effectively.
Q. 4. In your opinion what may be the coping
(iv) There should be an adequate facility of
strategy to overcome the semantic barriers.
promoting communication in an organiz-
Ans. Effective communication is very important ation. Proper attention should be given for
for the effective functioning of the organization. It is a the effective use of words and language.
very important part of an organization, therefore, it Superiors should take care of using supportive
becomes an integral part of the organization to attitude methods and proper behavioural
overcome the barriers of communication. The main needs to overcome any embarra-ssing
objective behind the measures to overcome these situation.
barriers is to have effective flow of communication in
Q. 6. What are the significance of communication
all the directions. Communication barriers can be
in an organisation?
classified into three categories they are: personal,
Ans. Communication enhances efficient managerial
physical and semantic.
activities in an organization. It plays major part in
Semantic barriers are the once which widens the manager’s working as his working time is mainly devoted
communication gap between the persons or individuals. to effective communicating. Communication has its
It is the science which deals with phonetics i.e based major impact in conveying the right messages,
on sounds. These barriers arise due to limited symbols establishing coordination, development of managerial
of communication. Every word has a different meaning skills and maintaining good industrial relationships
for a different person. The expression used in the words through execution of programmes and policies of the
for communication should be clear and easy to organization. It is a continuous and dynamic process. In
understand. Words with more than one meaning should communication, the sender encodes an idea that gets
be avoided as it might lead to misunderstanding. transmitted through a channel to receiver who decodes
Q. 5. Identify four methods of overcoming message and then gains an understanding of the idea to
communication barriers. the sender. The same pattern is followed in the reverse
Ans. Communication is the integral part of an process of feedback.
organization, therefore, it becomes necessary to (i) To develop and maintain a system of effective
overcome the barriers in order to minimize the effect communication.
of these barriers. There are many methods to overcome (ii) To encourage better performance and job
these barrier they are: satisfaction when they realize that their job
COMMUNICATION / 135
is better and they feel the part of the organisational development where various concepts are
organisation. used at macro level to evaluate the style of an
(iii) Management helps in accomplishing various organization. It helps in having the integrated view of
tasks of the organization in order to achieve personality, communication, and destiny. It gives an
the goals effectively. opportunity to everybody the superiors as well as the
(iv) Good and effective communication should subordinates to improve their behaviour and is motivated
have two way flow of information i.e. from to do the effective work
top to bottom and from bottom to top.
(v) To be able to transmit order for work. TERMINAL QUESTIONS
(vi) It is an aid for accomplishing the work Q. 1. Define Communication Point out the
effectively. salient features of communication in an organization.
(vii) It helps in maintaining proper and effective Ans. Communication can be defined as the process
relationship between employees and by which information and ideas get transferred from
employer. one person to another. A successful and effective
Q. 7. What do you mean by transactional communication always aims at imparting ideas and
analysis? information that makes one-self understand by the
Ans. Transactional analysis is an interpersonal others. The success of any organization depends upon
communication within the organization and outside the good communication and it plays an important role in
organization. It gives new outlook of the management the functioning of the organization. Communication
and leadership style which enables to contribute in the enhances efficient managerial activities in an organiz-
development of appraisal and counselling skills. It helps ation. It plays major part in manager’s working as his
in developing the creativity, problem-solving and working time is mainly devoted to effective
decision-making skills of the groups. It helps in team communicating. Communication has its major impact
building in an organization to achieve the goal in conveying the right messages, establishing
effectively. It has a general contribution towards coordination, development of managerial skills and
organizational development where various concepts are maintaining good industrial relationships through
used at macro level to evaluate the style of an execution of programmes and policies of the
organization. It helps in having the integrated view of organization. It is a continuous and dynamic process.
personality, communication, and destiny. It gives an In communication, the sender encodes an idea that gets
opportunity to everybody the superiors as well as the transmitted through a channel to receiver who decodes
subordinates to improve their behaviour and is motivated message and then gains an understanding of the idea to
to do the effective work. It gives the effective language the sender. The same pattern is followed in the reverse
to be used for interaction and analyzing the behaviour process of feedback.
of others. It related to various theories and ideas viz. Q. 2. Discuss the various steps in the communi-
Maslow’s Hierarchy of Needs, McGregor’s Theory X cation process.
and Y, Herzberg’s Motivation-hygiene Theory, Likert’s Ans. The entire procedure of communication
Management Systems; Blake’s Managerial Grid, etc. implies the reality of a sender, a receiver, a message
Q. 8. How do transactional analysis help in and a motivating climate for it. The process includes
improving the communication in the organisation? the following steps:
Ans. Transactional analysis is the means to improve (i) Clear Perception of the Idea or Problem:
the interpersonal relations of the business, within the The message cannot be conveyed properly
organization as well as outside the organization. It helps if the idea or problem is originated with
in having a new outlook of the management and simplicity of thought and perception. It is the
leadership style which enables to contribute in the basis of clear judgment that the
development of appraisal and counselling skills. It helps communicator can make a decision on the
in developing the creativity, problem-solving and means to be implementing to pass on the
decision-making skills of the groups. It helps in team message.
building in an organization to achieve the goal (ii) Participation of others involved: The next
effectively. It has a general contribution towards step is to make safe the contribution of other
persons in the decision to correspond a The reasons that can cause interferences in
message. This may be supportive in communication are personal, physical and semantic
clarifying the ideas through interaction with (science of sound). These barriers need to be lowered
others, gathering new ideas and suggestions, to achieve effectiveness in communication. There have
and in generating an inspiring climate to to be methods to overcome these barriers as they help
secure positive response to the message. in enhancing the effectiveness in communication.
(iii) Transmission of the Message: Whatever Communication is the integral part of an
has to be exchanged and with whom it has to organization, therefore, it becomes necessary to
be exchanged and how the message is overcome the barriers in order to minimize the effect of
expected to be resolute before actual co- these barriers. There are many methods to overcome
mmunication of the message. Actual comm- these barriers they are:
unication engages preparing the matter and (i) The policy of the organization must be clear
the form of communication and selecting the and explicit. It should be designed in such a
medium or means of communication by way so that it encourages communication
keeping in view the nature of persons or flow. It should be easily understandable by
groups to be addressed. all the levels. The policies for communic-
(iv) Motivating the Receiver of the Message: ation should be clear and should favour the
The conversationalist cannot depend on the promotion of communication in the organiz-
significance alone to get a suitable reply from ation.
the receiver. An individual must ensure that (ii) The policy should be able to specify the
the receiver of the message is not only able subject to be communicated to others. It
to understand the message correctly but is means that the subject-matter should be
also able to act accordingly. Therefore, to expressive enough to determine the needs of
one side from the clarity of the message, it the organization rather than creating any
should motivate the recipient to do or behave confusion.
as preferred by the correspondent of the (iii) Communication through proper channel
message. works out effectively. But the flow of
(v) Evaluation of the Effectiveness of the communication in the orderly form should
Communication: When the message is been not be insisted upon every time. At times it
transmitted and accepted by the recipient, it can be ignored and not strictly followed in
important for the communicator to determine order to keep the functioning of the
and assess the nature of the communication. organization smooth and effectively.
This decides whether and to what extent the (iv) There should be an adequate facility of
receiver has positively responded to the promoting communication in an organiz-
message being sent to him. ation. Proper attention should be given for
Q. 3. What are the main barriers to commun- the effective use of words and language.
ication? How can these barriers be removed? Superiors should take care of using
supportive attitude methods and proper
Ans. Communication can face barriers and it can
behavioural needs to overcome any
be due to delay, distortion and dilution. When the
embarrassing situation.
information gets distorted due to the faulty system or
jealousy or faulty listening or inadequate vocabulary or Q. 4. How can we make goods communication
badly chosen words, it looses its meaning. There are in our organisation?
psychological barriers which are caused by prejudice, Ans. There are some principles that make good
preconceived notion, distrust of the communicator, communication in our organisation. The principles are
misinterpretation of his intention and the things like. those fundamental rules that guide the management in
Dilution is caused by a person who is posing as a yes the formulation of policies.
man as to what he expects to hear rather than presenting The major principles of communication are as
the actual feedback of the matter concerned. follows:
COMMUNICATION / 137
(i) Clarify the Ideas before Communication: It language used and the manner in which the message is
is important to clarify all the ideas before to be communicated. The language used should be
communication. The problems that are to be congenial and should not offend the sentiments and self-
communicated to the subordinates should be made respect of the listeners. It should be motivating to evoke
understandable in all perspectives to the executive response from the listeners. The choice of language and
himself. The entire problem should be studied in depth, the awareness of the words used predetermine the
analyzed and then stated in such a manner that it sounds reaction of the listeners. Traditionally speaking, it has
understandable to the subordinates. The competence and been said that the word of mouth may turn the best friend
skills of subordinates, their attitudes and aspirations and into an enemy.
their environments of work have to be taken into account (vi) Convey Things for Help and Value to
for this purpose, before they are asked to respond. The Listeners: It is important to convey things for help and
executive should answer each of the queries made by value to the listeners. It is important to know the interests
subordinates besides providing the needed guidance for and needs of the people with whom to communicate the
implementing the tasks into actual practice. message, while passing on message to others. It will
(ii) Object of Communication: The object of surely evoke responses from communicatees, if it is
communication is another important aspect and it has directly or indirectly related to such interests and needs.
to be crystal clear to the communicator. It is important (vii) Follow-up Communication: To make
to have the information about the object to be achieved commun-ication effective, follow-up action is followed.
by transmitting message to the communicatee. It is The communicator makes sure about the success of
important to know whether he wants certain information communication by asking questions concerning the
or wants to initiate certain action or change in the attitude efficiency of communication. The receiver of commu-
of the subordinates. The object is related to the nication should be encouraged to respond to the
mechanics of communication that determine the communication. If there is any appropriate need or desire
language, tone and the style of communication. This that arises, the communication process can be
type of object should be clear for each communication. improvised by the feedback that is received to make it
(iii) Environmental Factors: The process of more responsive.
communication is influenced by the environments in (viii) Communication for Present and Future:
which the communicator and the communicatee have The process of communication should benefits the
to interact. The attitudes and aspirations of superiors present and the future of the organisation. In general,
and subordinates are determined by the environments communication is needed to meet the existing
within the organisation. It is important to understand as commitments. In order to maintain consistency, the
to what extent are subordinates permitted to participate communication should aim at future goal of the
in the communication process. It is also important to enterprise as well. For example, if you postpone pointing
know whether the subordinates are responsive to out deficiency and limitations to loyal subordinates, it
commands of superiors. All such variables are will create problems in future. It will make subordinates
dependent on environmental factors. The socio-political feel embarrassed but also feel insulted if these types of
environments that determine the behaviour pattern of shortcomings are pointed out in future. On the other
unions are ultimately related to the effectiveness of the hand, the enterprise will get a setback in its plan of
communication system. action. As a result, to be consistent at long-term goals,
(iv) Consultation with Others: It is important to the subordinates should be properly educated for their
involve others in developing a plan for communication shortcoming after they get noticed.
before communicating the message. The consultation (ix) Correlation between Action and Commun-
will be helpful in crystallizing the problem and helps in ication: There has to be good correlation between action
delivering out the relevant methodology for its and communication and it should be free from any sort
execution. The consulted persons will feel motivated of contradiction. The effective communication is about
because this may satisfy his/her ego needs. the effective part of action. This requires good superv-
(v) Tone and the Contents of the Message: The ision, clear assignment of authority and responsibility,
other important elements of effective communication proper reward system and the enforcement of sound
are the contents of the message and the tone i.e., the policies.
(x) Be a Good Listener: Good listening is a (iv) Importance of Listening Carefully: Listening
positive trait that enhances communication. The process to verbal messages carefully means a lively method.
of communication depends on commands as well as on Half-hearted communication leads to misapprehension
the resourcefulness of patientce listening. There might and misunderstanding. A listener has to be patience
be situations where subordinates may experience mentally composed, in order to keep away from
problems of understanding, execution and coordination. distractions while getting the communication. They
These experienced problems could be removed if you should be able to contemplate on the message and seek
could listen to the queries of the subordinates with explanation, if required.
patience and then deliver necessary advice and guidance (v) Restraint over Emotion: Sturdy approach and
that can sort out the matters. disturbing pressure on the part of either the sender or
Q. 5. What is effective communication? Discuss receiver of communication are grave handicaps in the
the significance of communication in an communication process. In order to avoid any
organisation. unenthusiastic force of emotion on the content of the
Ans. The principles or guidelines for making communication, the sender may postpone the
communication effective are of a general nature; communication for a while or consult to exercise self-
operationally speaking a number of more exact discipline over his psychological feelings to avoid
suggestions can be made to ensure the effectiveness of misunderstanding.
communication. (vi) Non-verbal Signals of Compliance: Verbal
The procedures to be followed for making the communication is usually established orally by the
communication effective are as follows: receiver. But it may or may not follow the acceptance
(i) Regulating the Flow of Communications: To of the communication. It is, for that reason, recomm-
plan the communication and determining the precedence ended that in the case of verbal communication the
of messages to be communicated, therefore, that sender should view the achievement of the receiver to
managers may contemplate on more important message determine whether the actions are in compliance with
of high precedence. If not, there is a possibility of the intention and accepting of the same.
managers being jammed with the assignment of (vii) Mutual Trust and Faith: Mutual trust and
communication. Likewise, incoming communication faith are the best means of building good and effective
should be reduced and made strong, if feasible it should communication among people in an organisation.
be reduced so that the chances of overlooking or Nevertheless, it takes time to build such type of
ignoring important messages conventional. conditions. Managers and subordinates encompass to
(ii) Feedback: Besides communication there is a cooperate for the purpose to make suggestions and
requirement for the feedback, which means that, correct point of view and eliminate any lack of
communication of the response or reaction to the original understanding.
communication. Feedback may include the receiver’s Q. 6. What is grapevine? What are its causes?
recognition and acceptance of the message, his action How would you tackle the problems of grapevine?
or behavioural response, and, thus, result is Ans. The term “grapevine” is used for the informal
accomplished. Two-way communication is thus channel of communication. It is the result of the
measured to be helpful in instituting common thought operation of social forces at work place. Any rumour in
than one-way communication. the working place can take the shape of grapevine. If
(iii) Language of the Message: The proper formal communication exists to meet the serviceable
language is necessary for effective communication. needs of the organisation then the informal
While organizing the communication, it must keep in communication is the process by which people carry on
view the ambiance, as well as the aptitude of receiver social, non-programmed activities within the formal
to understand the message precisely. Theoretical ideas boundaries of the system. The informal channel of
should be enlightened and vague expressions kept away. communication or “grapevine” exists outside the official
It must be kept in view the semantic problem, that is, network, though continuously interacting with it. This
using particular words having more than one meaning. informal channel is generally multiple in natures. It
COMMUNICATION / 139
means that same person is having social relationships grapevine and in most cases is considered as incorrect
with various number of people while working in the information. Rumour it is presumed to be the most
same organisation. It also satisfies the communication undesirable feature of grapevine. It is a product of
needs of the various persons in the organisation. It works interest and ambiguity in a situation. The rumour tens
well specifically for those persons who mix up with to change from person to person as perception of interest
others freely and rely upon informal relationships. and ambiguity differs among individuals. Each person
There are four types of informal communication subtracts or adds as per his interest to the original
channels that have been identified and they are: single message through the process of elaboration and
strand, gossip, probability and cluster. assimilation.
(i) The individual in the single strand network On the other hand, informal communication has
communicates with other individuals’ certain basic limitations as it is less orderly and less
through intervening persons. static. In many times, messages communicated through
(ii) The individual in the gossip network the informal channel are so erratic and inconsistent that
communicates non-selectively. any action based on these may lead to a complicated
(iii) The individual in the probability network situation in the organisation.
communicates randomly with other In such case, the most important factor is the
individuals according to the law of irresponsibility of the persons communicating through
probability. the informal channel. It is difficult to assign
(iv) The individual in the cluster network responsibility for false information or morale lowering
communicates with only those individuals rumours as it is difficult to locate and identify the origin
whom he trusts. and direction of flow of information. The informal
Cluster is the most popular among these informal communication problems can multiply as each person
networks. The word “rumour” has been used as synonym conveying the message may add, subtract or change the
for the entire informal communication but there is original message according to his motive. There may
difference between the two of them. be probability that by the time a communication
Rumour can be termed as “grapevine” information completes a complex journey, it may get completely
that is communicated without secure standard of distorted.
evidence. It is the injudicious and untrue part of the ■■
140
Conflict Management
14
incompatible goals, believes, behaviour which prevents
INTRODUCTION
them from their goal achievement. It is a process in
Conflict is a form of disagreement that arises which one group or individual perceives that their
between two or more persons. In organizations, there interests are being opposed or are affecting the other
are many occasions where a conflict arises but they can parties negatively. At times, conflict leads to serious
be overcome through full understanding and positive problems in an organization. But at the same time it
attitude. The state of conflict arises due to difference of can create positive results also. An absence of conflict
opinions, emotional disturbance, distrust, dislikes, fear can lead to apathy and lethargy as it helps in stimulating
or resentment. There are two types of conflicts, they new ideas, providing healthy competitions and
are functional and dysfunctional. Functional conflicts energizing behaviour of an individual in an organiz-
are those which results in the improvement of group’s ation. Therefore, it is very important for an organization
performance. Dysfunctional conflicts are those that to manage the conflict and formulate various strategies
obstruct and decreases group’s performance. Conflicts to resolve the conflicts arising between the individuals
can have positive as well as negative effects, depending in an organization.
upon the situation and individuals. In organizations there
Conflict arises due to difference of opinion,
are three types of conflicts and they are task conflicts,
emotional disturbance due to anger, distrust, dislikes,
relationship conflicts and process conflicts. In
fear or resentment. There are two types of conflicts
organizational life, there are three levels of conflicts
functional and dysfunctional conflicts. The conflicts
and they are intra-personal conflict, interpersonal
conflict and intergroup and organizational conflict. which do not support goals of the group and results in
the improvement of group’s performance are called
SUMMARY functional conflicts as they are not affecting the basic
functioning of the organization. The conflicts which
The organizational work involves communication
decreases and obstructs the group performance are
and interpersonal relations inside as well as outside the
called dysfunctional or destructive forms of conflicts.
organization. There are various occasions when there
are differences and disagreements due to difference in The effect of these conflicts can be positive, neutral
the opinions and views. To overcome these barriers there or negative, depending upon the situation and
is a need to have healthy environment which is full of individuals due to which the conflicts have been arise.
understanding and conflict free. Every organization has three types of conflicts such as
It is very difficult to imagine a conflict free world task conflicts, relationship conflicts and process conflict.
and a conflict free organization as every individual has Task conflicts deals with content and goals, relationship
a unique behaviour, personality and ideas. Perception, conflicts are focussed on interpersonal relations and
attitudes and motivation varies from a person to person. process conflicts are related to the process of doing the
These factors led to the conflicts which we encounter work. Out of these relationship conflicts are termed as
from time-to-time everywhere at home or at workplace. dysfunctional, as it causes difference of opinion, ego
clashes and fights which is causing an unnecessary and
Conflict is a natural disagreement arising between
untimely blockage of work in an organization.
two or more persons or individuals due to their
CONFLICT MANAGEMENT / 141
To evaluate and understand the nature of conflict accordingly. There are various modes through which
there is a need to examine the same by observing them conflict can be handled successfully they are by
in four stages. Stage one shows the antecedent stimulating functional conflict by handling the situations
conditions due to which the conflict has arouse. It will where conflict is required for enhancing the perform-
help in allocating the source of conflict. Stage two helps ance. It is further stimulated by manipulating the
in perceiving the threats of conflicts to be developed communication channels, by redefining jobs, tasks and
and makes the persons realize the damage it is going to activities and by altering behaviour patterns.
cause to the organization. In the third stage, a party If conflicts are prolonged unnecessarily then it will
engages in action which was planned in the stage one affect adversely in the relationship between groups
as now the conflict comes out in open. The fourth stage therefore, it is better to clarify the issues. It can increase
is decisive as the outcome of the conflict can be innovation and cohesiveness. It can become task
functional as well as dysfunctional. It is a very useful oriented and might solidifies intergroup relationships.
structure to understand the different forms of conflicts. Feldman have suggested various resolution
The inter-group conflicts lead to many changes strategies for conflict they are conflict-avoidance
within the group and they are increase in group strategies, conflict-diffusion strategies, conflict-
cohesiveness, group becoming task oriented, leadership containment strategies and conflict-confrontation
turning more directive, rigidification of organisational strategies.
structure and stressing of group unity. There are many
benefits of inter group conflicts as the conflict clarifies CHECK YOUR PROGRESS
the real issue, increases innovation, produces Q. 1. Distinguish between functional and
cohesiveness within the group, serves as catharsis. The dysfunctional conflict.
conflict solution helps in solidifying intergroup
Ans. Functional conflict is the one which does not
relationships.
affect the performance of the group. They have positive
There are three levels of conflicts in organisational impact on the group functioning. It is due to Task
life and they are: Conflict and Process Conflict. It is a type of conflict
(i) Intra-personal Conflict. which a positive impact on the performance of the group
(ii) Inter-personal Conflict. as it stimulates the discussion of ideas that enables group
(iii) Inter-group and Organisational Conflict. to perform better.
Intra-personal Conflict is a conflict within the Whereas, dysfunctional conflict is the one which
individual while Inter-personal Conflict arises between affects or decreases and obstructs the working of the
two or more persons in the organisation. Intra-personal group. It has negative impact on the group performance.
Conflict comprises of two types of conflicts and they It is due to relationship conflicts between the group
are goal conflict and role conflict. There are four major members. It increases ego clashes and decreases mutual
sources of inter-personal conflict and they are personal relationship.
difference, information deficiency, role incompatibility Q. 2. Why are relationship conflicts dysfunc-
and environmental stress. Inter-group and organisat- tional?
ional conflict are referred to conflict between two
Ans. Relationship conflicts are dysfunctional
groups, departments or sections in an organisation. The
because they encourage ego clashes between the co-
reasons responsible for Inter-group and organisational
workers and thus affects the mutual relationship and
conflict are task inter-dependence, task ambiguity, goal
spoils the atmosphere of the organization. The working
incompatibility, competition for limited resources,
environment becomes non-functional as there is lot of
competitive reward system and line and staff.
disputes between the co-workers which results in mis-
Managers are required to know the ways to resolve understanding and unnecessary confusions regarding the
the conflicts in order to maintain a balance between work negative attitudes due to conflict. It enhances the
and subordinates of the organization. He should be able performance of a group as the conflict level is low, which
to determine the source of conflict and try to resolve makes the function stagnant and non-responsive.
Q. 3. Draw a flow chart of conflict process.

Ans.
Stage I Stage II Stage III Stage IV
Antecedent Perceived
Conditions Conflict Manifest
Consequences
Conflict
Felt
Conflict
Conflict
Management
Strategy
Stimulation
Resolution
Adapted from Stephen Robbins “Organisational Behaviour” 9th Ed., 2003
Q. 4. Distinguish between intra-personal (i) Personal differences

conflict and inter-personal conflict. (ii) Information deficiency
Ans. Intra-personal conflict is a conflict between (iii) Role incompatibility
the people which arises due to frustration, demanding (iv) Environmental stress.
equal attention and goals and thus have negative as Q. 5. Distinguish between approach-approach
well as positive impact on the functioning of the group. conflict and approach-avoidance conflict.
It includes: Ans. Approach-approach conflict arises due to the
(i) Goal conflict persons having mutually exclusive goals. It is exactly
(ii) Role conflict. not a conflict as the choice of the person makes him to
(i) Goal conflict is due to the efforts being made have a positive outcome of the problems arising between
towards one common goal and ignoring the other goals the persons.
of the group. It can be of three types:
Approach-avoidance conflict arises when a person
(a) Approach-approach conflict
is continuously involved and keeping away due to a
(b) Approach-avoidance conflict
single object or goal. These conflicts are generally
(c) Avoidance-avoidance conflict.
pervasive and not easy to solve.
(ii) Role conflict means it is the final reason for
intra personal conflict which is the basic requirement Q. 6. What do you mean by inter-group conflict?
of the person to have a significant role altogether along Ans. Inter-group conflict is the one which is related
with the availability of time and resources to match the to the organizational conflict between two groups,
requirements. departments or sections. These types of conflicts are
Inter-personal conflict is usually between two or very much visible and are very frequent to occur in the
more persons in an organization which arises due to organization. The reason of these conflicts are:
the differences of perception, temperament, person- (i) Task Inter dependence
ality, value systems, socio-cultural factors and role (ii) Task Ambiguity
ambiguities. Usually, the superiors who have conflicts (iii) Goal Incompatibility
with their co-workers or subordinates is due to the (iv) Competition for Limited Resources
personality problem and attitude. There are four sources (v) Competitive Reward Systems
of inter-personal conflict, they are: (vi) Line and Staff.
Q. 7. Distinguish between conflict avoidance (ii) To solve the integrated problems by giving
strategy and conflict diffusion strategy. ample time so that it can reach to the success
Ans. Conflict avoidance strategy is referred to an without any pressure and the problem can
effort to avoid the conflict or difference of opinion. It is be resolved quickly.
due to the absence of the action being taken by the Q. 9. Enumerate the strategies for inter-group
superiors in the organization. It results in the situation conflict resolution.
becoming bad over a period of time. Although at times Ans. The strategies taken to resolve intergroup
the conflicts are easy to resolve depending upon the conflicts are:
situation. Resolving the problem is not an end to the (i) Problem Solving: Efforts are made to resolve
conflict but a timely respite as there are various other the conflicts between the groups or individuals by
important issues to be looked after. Conflicts can be finding adequate solutions to the problems prevailing
avoided by forcing the groups under conflict to follow between them.
the solutions being laid down by the superiors to resolve
(ii) Organizational Redesign: By redesigning the
them. The implementation by force will definitely reduce organizational structure especially when the conflicts
the level of conflict between the individuals or groups are arising due to the working of various departments
under conflict. or divisions.
Conflict diffusion strategies are the ones which are (iii) Super Ordinate Goals: It is a very strategy
framed to keep the conflict away from the working used as it deals with the common goals of the two
environment before it is going to start. It is done by individuals or groups and hence is easy to resolve the
soothing the environment being created for conflicts conflicts between them.
by the group. The groups are convinced by the superiors
(iv) Expansion of Resources: To remove the
that their views are not negative or ineffective. The
scarcity of resources in the organization as it helps in
bad feelings are tried to be away from them by giving
resolving the conflicts between the groups who are using
importance to the other issues than on the conflicting
the common resources to accomplish their work.
ones. At times soothing does not work to end the conflict
(v) Avoidance: This strategy is used when the
or avoid the conflict because it does not have important
problem is insignificant, so it will be better to avoid
issues to touch the conflict cord and, thus, it amounts to
such problems as they are a mere waste of time.
a failure.
(vi) Smoothening: To smooth down the problems
Conflicts can be avoided by giving more import-
between the groups or the individuals by highlighting
ance to the constructive goals than on the conflicting
their common objectives and goals.
group. The more superiors will ignore the better the
conflicts will be diffused and will not hamper the TERMINAL QUESTIONS
working of the organization.
Q. 1. What do you mean by conflict? Explain
Q. 8. What do you mean by conflict confron- the process of conflict in an organisation.
tation strategy?
Ans. Conflict is a natural disagreement arising
Ans. Conflict confrontation strategy is the plan to between two or more persons or individuals due to their
resolve the problem by facing it. It means to find the incompatible goals, believes, behaviour which prevents
solution of the problem which will resolve the conflict them from their goal achievement. It is a process in
and will satisfy the needs of both the groups under which one group or individual perceives that their
conflict. It is resolved by exchanging task related interests are being opposed or are affecting the other
information and the feelings generated between the parties negatively. At times, conflict leads to serious
group members. In order to solve the problem there problems in an organization. But at the same time it
are two pre-conditions which are important they are: can create positive results also. An absence of conflict
(i) Minimum level of trust between the groups can lead to apathy and lethargy as it helps in stimulating
because without trust there will be a constant new ideas, providing healthy competitions and
fear of manipulation and will not be able to energizing behaviour of an individual in an organization.
get the proper care and consideration to the Therefore, it is very important for an organization to
problem. manage the conflict and formulate various strategies to
resolve the conflicts arising between the individuals in Ans. The impact of conflict on the working of an
an organization. organization can be positive and negative. Schein has
The process of conflict in an organization is in four given various points of changes according to the nature
stages they are: of conflicts they are:
(i) Inter-group conflict can lead to increase in
(i) Stage I: When one group tries to block the plans
group cohesiveness, group become task
of the other group within the organization it amounts to
oriented, leadership become more directive,
a potential threat to the working condition of the
rigidity in the organizational structure and
organization. At this stage the superiors try to find the group unity is stressed.
source of conflict and then try to analyze it to find the (ii) Prolonged conflicts affects the relationship
adequate solution to the same. The reasons could between groups as the group becomes
scarcity of resources, heterogeneity of members, antagonistic towards each other, perceptual
diversity of goals, values, perception and also the degree distortion, ineffectiveness or absence of
of dependence between groups and insufficient communication and groups apply a double
exchange of information. standard.
(ii) Stage II: At the second stage the problems are (iii) Potential conflicts leads to classification of
perceived and the concerned persons are made to realize real issues, increases innovation, produces
the loss that is being done to the organization due to cohesiveness within the group, serves as a
their differences. They are emotionally tackled to resolve catharsis and resolution of conflicts leads to
the conflicts. If they are not tackled carefully and in the solidification of inter-group relationships.
stipulated time then it can lead to frustration, anxiety Schein concluded that conflict potential to improve
and tension and, thus, the conflict will never be resolved. the performance of the organization through its effects.
(iii) Stage III: In this stage the action planned in The conflicts which improve the performance of the
organization are called functional conflicts. These types
Stage I will be implemented to the concerned persons
of conflicts help the employees to realize their goals
or groups under conflict. The behaviour of the group is
and objectives. The conflicts which hamper the working
monitored by using indirect approach by the superiors
performance of the organization are called dysfunc-
to know the intensity of the conflict. This stage is very
tional conflicts.
crucial as it can lead to major break-downs in the
Thus, the impact of conflict on organization entirely
organization like strike or lockouts which causes great
depends upon the nature, intensity, duration and the
deal of loss to the organization. Therefore, it is very
manner in which the conflicts are handled.
important to tackle the conflicting groups in time to
avoid such unwanted and unfavourable situations in the It becomes very important to identify the conflicts
and its nature whether it is functional or dysfunctional
organization.
and act accordingly.
(iv) Stage IV: This stage is very useful as it will
Q. 3. Explain various levels of conflict. How do
enable the superiors to understand various forms of
these levels influence the organizational efficiency?
conflicts. It will also help in resolving the conflict in
Discuss with examples.
time and to make it effective. The action to be taken in
Ans. There are three levels of conflict they are:
respect of resolving the conflict in time will result as
functional conflict and if the same is mismanaged then (i) Intra-Personal Conflict: Intra-personal conflict
it will result in dysfunctional conflict. is a conflict between the people which arises due to
frustration, demanding equal attention and goals, and
Therefore, all the four stages are very crucial to thus have negative as well as positive impact on the
resolve the conflicts and must be handled with care as functioning of the group. It includes:
and when the conflict arise between the persons or (i) Goal conflict
groups of an organization. (ii) Role conflict.
Q. 2. Discuss the impact of conflict in an (i) Goal conflict is due to the efforts being made
organization. Do you think that conflict reduces the towards one common goal and ignoring the
efficiency and productivity in the organization? other goals of the group. It can be of three
Discuss. types:
(a) Approach-approach conflict Collaboration should be properly monitored in

(b) Approach-avoidance conflict order to help the persons to know that their goals are
(c) Avoidance-avoidance conflict. for the benefit of the organization and in the interest of
(ii) Inter-personal Conflict: Inter personal conflict it only. Therefore, if the conflict will arise between the
is usually between two or more persons in an co-workers then goals will be ignored and will become
organization which arises due to the differences of incompatible. Managers might need different ways to
perception, temperament, personality, value systems, help the affected groups or individuals by simply
socio-cultural factors and role ambiguities. Usually, the avoiding them if the conflicts are not worth calling any
superiors who have conflicts with their co-workers or immediate attention and is not affecting the effective-
subordinates is due to the personality problem and ness and efficiency of the organizational work.
attitude. There are four sources of inter-personal conflict It can be done by stimulating functional conflicts
they are: as avoidance does not help always and there may be a
(i) Personal differences need to stimulate the functions by managing the conflicts
(ii) Information deficiency in time. There are various situations under which conflict
(iii) Role incompatibility is needed to enhance the performance they are:
(iv) Environmental stress. (i) When the organization is filled with YES
(iii) Inter-group and Organizational Conflict: men.
Inter-group conflict is the one which is related to the (ii) When employees are afraid to admit
organizational conflict between two groups, depart- ignorance.
ments or sections. These types of conflicts are very much (iii) When the compromise is emphasized in
visible and are very frequent to occur in the organization. making any decision.
The reason of these conflicts are: (iv) When manager stresses more on the peace
(i) Task Inter dependence and harmony between the employees.
(ii) Task Ambiguity (v) When popularity has more importance than
(iii) Goal Incompatibility technical competence.
(iv) Competition for Limited Resources (vi) When individuals are showing more
(v) Competitive Reward Systems resistance to change.
(vi) Line and Staff. (vii) When there is unusual rate of employee
Q. 4. How can you manage the conflict? turnover.
Illustrate with examples. After the conflict has been identified by the
Ans. It is very important for the organization to managers then it becomes their prime duty to adapt any
manage and resolve the conflicts arising between the of the following techniques to resolve them they are:
employees. Whenever, a conflict arises which is (i) Manipulate communication channels by
potentially harmful, it becomes the prime duty of the deviating messages from traditional chann-
managers to resolve it as soon as possible. Remedial els, suppressing information, transmitting too
strategies should be adopted by the managers to reduce much information and by transmitting
or resolve the conflicts so that it should not affect the ambiguous or threatening information.
working environment of the organization. First of all (ii) Organizational restructure by increasing unit
the sources of the conflict should be determined. The size, increasing the specialization, including
destructive conflict is arises due to the internal sources or excluding or transfer members and by
as well as external sources. The internal sources are increasing interdependence between units.
the groups or employees having common goal or (iii) Alter behaviour patterns by attempting to
scarcity of resources, if it so then alternative steps should change the personality characteristics,
be taken to alter the membership of one or both groups. creating role conflicts and developing role
If the conflicts are not managed properly then it becomes incongruence.
difficult to achieve the goals in time. Depending upon Q. 5. Explain various strategies meant for
the nature of the conflict the reactions to the conflicts resolution of conflicts. Do you think that these
can be avoidance, accommodation, competition, strategies remove conflicts in the organizations?
collaboration and compromise. Discuss with examples.
Ans. Conflicts need to be resolved if it is creating of the conflicting groups than to meet the entire group
problems in the working environment of the to resolve the conflicts. In most of the cases the
organization. The organizations where there are high resolution of the group results in a negative manner. It
level conflicts, Feldman has suggested some strategies is so because the representatives are not free to negotiatie
to resolve them they are: and are only motivated towards the success of their
(i) Conflict avoidance strategies: Conflict goals. Usually the persons who might be discarded may
avoidance strategy is referred to an effort to avoid the try to impasse a resolution. The best way is to resolve
conflict or difference of opinion. It is due to the absence such conflicts through the representatives of the
of the action being taken by the superiors in the respective groups to resolve it easily and effectively.
organization. It results in the situation becoming bad Managers will try to stimulate healthy interaction in
over a period of time. Although at times the conflicts order to distress conflicts arising between the groups or
are easy to resolve depending upon the situation. individuals. It can be done in two situations i.e. When
Resolving the problem is not an end to the conflict but earlier efforts to confer subject explicitly led to conflict
a timely respite as there are various other important rise rather than problem solution and when esteemed
issues to be looked after. Conflicts can be avoided by third party is available to provide and implement some
forcing the groups under conflict to follow the solutions structure in the interactions between the groups. At times
being laid down by the superiors to resolve them. The bargaining strategy is also adopted under this process
implementation by force will definitely reduce the level of resolution until unless a concrete solution is not being
of conflict between the individuals or groups under implemented or given an attempt to resolve the conflicts.
conflict. It is nothing else but a negotiation union which fails to
deal with the problem in a normal manner and is not in
(ii) Conflict diffusion strategies: Conflict
the long-term welfare of the conflicting groups.
diffusion strategies are the ones which are framed to
keep the conflict away from the working environment (iv) Conflict confrontation strategies: It is a strat-
before it is going to start. It is done by soothing the egy with is used to make an attempt to achieve resolution
environment being created for conflicts by the group. by confronting the problems related to conflicts. It is
The groups are convinced by the superiors that their aimed at finding a concrete solution to the problems. It
views are not negative or ineffective. The bad feelings is like an open appearance of approach and identifying
are tried to be away from them by giving importance to satisfactory solutions to the conflicts. It needs to have
the other issues than on the conflicting ones. At times two pre-conditions to solve the problems they are:
soothing does not work to end the conflict or avoid the (i) A negligible level of faith between the groups
conflict because it does not have important issues to because without faith the group might face
touch the conflict cord and, thus, it amounts to a failure. exploitation and will not be able to disclose
its factual inclination.
(iii) Conflict containment strategies: These are
(ii) Integrative problem solving takes a lot of
the strategies which are used to represent the content of
time and can achieve something only in the
the conflict. Managers try to meet the representatives
dearth of stress for a rapid resolution.
■■
147
Team Building and Leadership

15
There are two types of teams–formal and informal
INTRODUCTION teams. Formal teams or groups are the teams that are
The two prime objectives of managers in an deliberately created by managers to carry out specific
organization are team building and team spirit. Team tasks for accomplishing organizational goals. Command
can be termed as a group of two or more persons working team and committee are the two major types of formal
for similar goals. Formal and informal teams are two groups that have found its relevance in modern
types of team. Formal teams are deliberately created by organisations. Informal teams or groups are created
managers while informal teams are created when people when people come together and interact regularly to
came together and interact. Team members pass through attain common goals. These types of groups can develop
several stages for the development of team and the stages within the framework of formal organizational structure.
are forming, storming, norming, forming and The team members pass through several stages for
adjourning. Team building is the proper shaping of the the development of the team. These stages are forming,
team and team effectiveness to the degree of achieving storming, norming, performing and adjourning. Forming
organizational goals. Team design consists of task is the first stage of team development where members
characteristics, team size and team compositions. Team try to explore and understand the behaviour of the team
process consists of team development, team norms, team members. Storming is a stage where members start
votes and team cohesiveness. Leadership is influencing competing for status, leadership and control in the group.
group activities that are directed towards accomplish- Norming is a stage where members start moving in a
ment of organization goals. It involves inter-personal cohesive manner in establishing a balance among
relationship. There are three types of leadership styles various conflicting forces. Performing is the stage where
– autocratic, liazzez faire and democratic style. team makes effort for the performance of task and the
accomplishment of organisational objectives.
SUMMARY Adjourning refers to the suspending of the team after
Team building and team spirit are two most prime the fulfilment of the tasks. According to Kormanski
objectives of managers in an organisation. It is a difficult and Mozenter, the stages of team development include
task and requires dynamic leadership. Team is a group awareness, conflict, cooperation, productivity and
of two or more persons working for similar goals. Its separation.
characteristic comprises of interaction among members, Team building is the proper shaping of the team
interdependence, mutual accountability, social entity and for the smooth functioning in the organisation. It is a
achievement of common goal. It becomes difficult to formal intervention that is directed towards the
form team because people with individual differences improvisation of development and functioning of a team
join organisation with different personalities, value work. Team effectiveness can be defined as the degree
system, attitude and needs. The leader should be able to which the team achieves its objectives and achieves
to understand the needs of the persons, hierarchy, their the demands and aims of its members. Its important
problems, attitude and value system to run organisation parameter also includes its ability to survive. Team
efficiently. effectiveness has its important elements and they are
organisational and team environment, team design, team production and restraining the growth of future
process. managers among their subordinates.
Organisational and team environment relates to In democratic style of leadership, decisions are
elements like reward system, communication systems, taken by leader in consultation with the subordinates.
physical space, organizational environment, organizat- They are also taken into confidence in decision-making
ional structure and organizational leadership. Team process. It is also known as participative style of
design comprises of elements like task characteristics, leadership and has its benefits like helping subordinates
team size and team composition. Team process consists in developing their potential abilities and assuming
of elements like team development, team norms, team greater possibilities, job satisfaction, improving morale
roles and team cohesiveness. of employees, enhancing group performance that is
Leadership is a process of influencing group sustained at higher level due to cohesive nature of the
activities that are directed towards the achievement of group.
certain organization goals. Leaders are the person who Laissez faire leadership is an autocratic style which
can guide and direct other people and provides purpose is adopted by the managers to give up their leadership
and direction in their efforts. Leader is the person who roles in the organization. It is suitable when a leader is
has the capability of influencing the group to work interested in delegating decision-making, when
willingly to achieve goals. Leadership involves inter- subordinates are well trained and highly knowledgeable
personal relationship that helps in sustaining the and when organizational goals have been communic-
followers to accept leader’s proper guidance to achieve ated well.
specified goals. There is no extreme situation when a manager
Trait theory is the earliest theory that is based on a should adopt this behaviour as it depends upon mainly
distinction between the personal qualities or traits of three situations when a manager is forced to value the
successful leaders. It was not considered valid theory. system, confidence in his subordinates, leadership
Behavioural theory is based on the belief that leaders inclinations and his feelings of security at a given
can be identified by reference to their behaviour in situation. Secondly, when there is a need for indepen-
relating to their followers. According to this theory, there dence, readiness to assume responsibility for decision-
are “employee centred’’ and “production centred” making, level of tolerance for ambiguity, understanding
leaders. Situational theory is a theory which states that and identifying organizational goals, interest in the
success of leadership depends upon the situation in problem, knowledge and experience to deal with the
which the leader operates. problems and learning to expect to share in decision
Managerial leadership is a continuous process making. Thirdly, when it is dealing with various
where managers influence, guides and directs the organizations, group effectiveness, the problems related
behaviour of subordinates. Its main purpose is to get to himself and the pressure of time.
willing cooperation of work group for the accomplish- Therefore, a successful leader is supposed to be
ment of specified goals. It also ensures the fulfilment the one who is aware of the various forces which are
of individual’s goals. Leadership style is the dominant relevant to the behaviour at a given situation while
behaviour pattern of a leader-manager in relation to his dealing with groups, people or organizations. He can
subordinates. There are three basic types of leadership be classified as an outstanding manager if he has strong
styles and these styles are autocratic, Laissez faire and leadership, being insightful and flexible.
democratic style. There are various functions of leadership they are
In autocratic style of leadership, the leader to develop team work, to act as a representative of the
centralizes power and decision-making and exercises work group, to act as a counsellor of the people at work,
complete control over subordinates. In this style of time management, proper use of power, and source
leadership, followers are compelled to follow leader’s effectiveness group effort.
orders under threat or penalties. It had its limitations as There are various styles of leaderships reflected
it resultes in low morale of employees, lowering of through behaviour pattern of the superiors. It depends
TEAM BUILDING AND LEADERSHIP / 149
upon the type of leadership adopted by the manager to are created or formed to deal with a specific problem.
lead their subordinates. It also depends upon the people They are dispersed when the task is completed or the
and his concern for them for the sake of production of problem is solved.
the organization. This is known as management grid. When people come together and interact regularly
This grid refers to the graphic representation of the then they emerge out as informal teams or groups. These
various combinations possible for the concern of people types of informal groups are developed within the formal
and production of the organization. This method helps organisational structure. The members of informal teams
in improvising the style of management, task tend to assist some of their individual needs and team
management and group management of the organization supports and protects them in return. The activities of
by the manager. informal teams may be additional to the interests of the
The styles of management can be effective as well organisation. For instance, workers may interact for the
as ineffective. The most effective styles are executive, betterment of their organisational sanitation or health
developer, benevolent autocrat, bureaucrat, compro- programmes etc.
miser, missionary, autocrat and deserter. The factors Q. 2. Distinguish between storming and
which influence the effectiveness of leadership are norming.
personality, experience, expectations, behaviour,
Ans. Storming is the second stage of team
requirements of tasks performed by subordinates,
development. In storming, members start competing for
behaviour with fellow managers and organizational
status, leadership and control in the group. The
culture and climate.
individuals understand other behaviours and emphasize
The qualities of an effective leader are mental and their role in the group. It results in the inter-personal
physical health, empathy, self-confidence, awareness of conflicts. The members try out for a definite resolution
others opinion about himself, objectivity, knowledge to the issues that are related to the task and working
and intelligence, decisiveness, ability to communicate, relations. The members also try to resolve those issues
sense of purpose and responsibility and other qualities that are related to the role of the individual in the group.
like enthusiasm, sense of direction, judgement, etc.
Norming is the third stage of team development.
There has been a considerable change in the In norming, the members start moving in cohesive or
leadership styles due to urbanization of the organizations interconnected manner. The members establish a
which can be divided into two categories as personal balance among various conflicting forces. They develop
qualities and role related qualities. group norms and consensus to achieve the group goals.
CHECK YOUR PROGRESS The norming stage develops a feeling of cooperativeness
or togetherness among the team members.
Q. 1. Distinguish between formal team and Q. 3. Enumerate five most suitable processes of
informal team. team building.
Ans. The teams that are deliberately created by the Ans. The five most suitable processes of team
managers to carry out specific tasks to help organisation building are forming, storming, norming, performing
to achieve its goals are termed as formal teams or and adjourning. They are discussed below:
groups. Command team is the prevalent type of formal
(i) Forming: Forming is the first stage of team
group. It includes a manager and all employees who
development. In forming, members try to explore and
report to that manager. Committee is another type of
formal team. It has longevity in terms of survival and understand the behaviour of team members. The
generally deals with recurrent problems and decisions. members make their earnest efforts in understanding
A university or college probably has a committee for the expectations of the team members. In this first stage,
student affairs that involves with their welfare. The the members are tend to be polite and are keen to make
members of committee may come and go but the themselves accessible to the requirements of their team.
committee remains in place over time. There are some (ii) Storming: Storming is the second stage of team
formal teams that are temporary and they are called development. In storming, members start competing for
project teams or task forces. These types of formal teams status, leadership and control in the group. The
individuals understand other’s behaviours and The managers in the organisations have to guide
emphasize their role in the group. It results in the inter- and lead their subordinates towards the accomplishment
personal conflicts. The members try out for a definite of group goals. If a manager is a good leader then he
resolution to the issues that are related to the task and can be more effective in his work. An ideal manager
working relations. The members also try to resolve those will exercise leadership influence for the purpose and
issues that are related to the role of the individual in the will not depend only on his positional power or formal
group. authority to secure group performance.
(iii) Norming: Norming is the third stage of team The manager as a leader can influence the conduct
development. In norming, the members start moving in and behaviour of the team members in the organisational
cohesive or interconnected manner. The members interest as well as for his subordinates and for the entire
establish a balance among various conflicting forces. group. Despites such inter-relationship, management
They develop group norms and consensus to achieve and leadership are not the same thing. The process of
the group goals. The norming stage develops a feeling management involves planning, organising,
of cooperativeness or togetherness among the team coordinating and controlling operations in achieving
members. various organisational goals.
(iv) Performing: Performing is the fourth stage of On the other hand, leadership is a process of
team development. In performing, team makes efforts influencing the people and inspiring them to willingly
for the performance of the task and the accomplishment achieve the organisational objectives. It can be
of goals or objectives. The coordination among concluded that manager is more than a leader. For
members gets improvised through established pattern example, the leader of an informal group may influence
of relationships. It helps in resolving conflicts. It is a the conduct of his fellow members but he may not be
stage where members trust each other and extend their the manager. The leadership position is given to him by
full cooperation for the accomplishment of group goals. his followers. On contrary, manager who acts as a leader
(v) Adjourning: Adjourning is the fifth stage of has the powers delegated to him by his superiors. His
team development. The team gets dispersed or leadership is a complementary addition of his position
disbanded when the purpose is fulfilled. The breaking as a manager having an organised group of subordinates
up of the team is referred to as adjournment. working under his authority.
Q. 4. What do you mean by team effectiveness? The characteristics of managerial leadership are
as follows:
Ans. There are some teams in an organisation that
(i) The managerial leadership is a continuous
are very successful and work effectively than other
process whereby the manager influences,
teams. It brings forward the need of team effectiveness.
guides and directs the behaviour of his
According to Steve and Mary, the team effectiveness
subord-inates.
is the extent to which the team accomplishes its goals
(ii) The effective combination of manager-leader
and accomplishes the needs and objectives of its
is able to influence his subordinate’s behavi-
members and maintains its high standards over time.
our at work by posing himself as a role model
The elements of team effectiveness are organisational
leader.
and team management, team design and team processes.
(iii) The basic principle of managerial leadership
Q. 5. What are the importance of managerial is to get willing cooperation of the work
leadership? group in the accomplishment of specified
Ans. Leadership is a process of influencing group goals.
activities towards the achievement of certain goals. (iv) The success of a manager as leader depends
The leader can be described as a person in a group on the acceptance of his leadership by the
who has the capability of influencing the group to work subordinates.
willingly. A good and ideal leader guides and directs (v) In managerial leadership, it is required that
other people and provides purpose and direction to individual goals are also accomplished while
their efforts. pursuing group goals.
Q. 6. Distinguish between trait theory and Q. 7. Distinguish between Autocratic style and
behavioural theory of leadership. Democratic style of leadership.
Ans. Trait theory is the earliest theory that is based Ans. Autocratic or Authoritative Style: An
on the distinction between the personal qualities or traits autocratic leader is a type of leader who centralises
of successful leaders. The trait theory suggests a list of power and decision-making within himself and
personality traits or characteristics that are essential in implement his complete control over the subordinates.
a person for his success as a leader. The trait theory In autocratic style of leadership, subordinates are
suggests that the leader must be strongly built, compelled to follow the orders of the leader under the
intelligent, honest and should be mentally mature to take threat or penalties. The subordinates are given no
favourable decisions. The individual who had these opportunity to be part of goal setting or taking any
qualities were considered potential leaders and so this initiative or giving any suggestion. They are subject to
theory had some limitations. It was not accepted as a close supervision and thus have a tendency to avoid
responsibility. The autocratic manager pays least
valid theory. There was no universally approved list of
concern for his employee’s well-being as they suffer
traits that can be associated with successful leaders. The
from frustration and low morale.
traits were not measurable and so it was difficult to
distinguish between leaders and followers. Democratic or Participative Style: Democratic
style of leadership is also called participative style of
As the name suggests, the behavioural theories of
leadership. In democratic style of leadership, decisions
leadership are based on the belief that leaders can be are taken by the leader after consulting with his
identified by reference to their behaviour in concerning subordinates and with their participation in the decision-
to the followers. The theory suggested that leadership making process. The participative leader or democratic
can be described in terms of the performance of leaders leader encourages his subordinates to make suggestions
than their actual identity. The behavioural theory was and further encourages them to take initiative in setting
presented on the basis of research studies. The leaders goals and implementing decisions. It enables the
who treat their subordinates as human beings and are subordinates to satisfy their social and ego needs that
concerned for their well-being, and encourage and result in their commitment to organisational goals and
involve them in goal setting, are considered to be more higher productivity. The regular and repeated
effective and successful. Such types of leaders are interactions between the subordinates and managers
described as ‘employee-centred’ leaders. The leaders help in building bonds of faith and confidence.
who give emphasis to job performance in conformity Q. 8. Enumerate five most important functions
with prescribed standards are termed as ‘production- of leadership.
centred’ leaders. These type of leaders exercises close Ans. The leadership functions of the managers are
control over the employees as if they were tools of closely related with his managerial functions. The
production. It is observed that this type of leadership functions are different as well as overlapping in some
results in low morale of employee and is associated with ways. The leader working as manager has to set the
unsatisfactory work performance. There are two group goal, make plans, motivate and inspire
dimensions of leader’s behaviour and they are initiating subordinates, supervise performance but has to perform
structure and consideration. several other functions as leader of the group. The five
important functions of leadership are as follows:
Initiating structure is referred to the leader’s
behaviour in by outlining the relationship between him (i) To develop team work: The first basic function
and members of the work group and in earnestly of the leader is to develop his work-group as a team.
attempting to establish well-defined pattern of The responsibility of a leader is to create a friendly
work-environment by keeping a close view of his
organisation, channels of communication and methods
subordinate’s competence, needs and potential
of procedure. On contrary, consideration is referred to
abilities.
behaviour indicative of friendship, mutual trust, respect
(ii) To act as a representative of the work-group:
and warmth in the relationship between leader and his
The second function of leader is to act as a represen-
fellow members.
tative of the work group. The leader of a work-group is
to expect to act as a link between the group and top According to the degree of effectiveness, the basic
management. The leader is expected to communicate styles of leaderships are further divided into eight styles.
the problems and grievances of his subordinates to top The more effective styles are as follows:
management in desired circumstances. (i) Executive: This type of leadership style is used
(iii) To act as a counsellor of the people at work: by the managers. It attaches maximum importance to
The third function of leader is to act as a counsellor of work as well as to the concerned people. In this style,
the people at work. The leader is expected to guide and manager is able to motivate people and utilize the team
advise the concerned subordinate when he is facing effectively. The manager-leader can set high standards
problems in connection with his performance at the of performance and can successfully achieve goals.
work. The concerned problem can be technical or (ii) Developer: The manager adopting “developer”
emotional in nature. style of leadership attaches maximum importance to the
(iv) Time management: The fourth important people at work and shows minimum concern for work.
function of leader is time management. The leader’s The manager believes in the capabilities of individual
function is to check the timeliness completion at subordinates and devotes maximum attention to their
different stages of work and also ensuring quality and development.
efficiency of work performed by the group. (iii) Benevolent Autocrat: The manager
(v) Proper use of power: The fifth most important possessing the style and attitude of benevolent autocrat
function of leader is the proper use of power. The leader shows low concern for people and high concern for
should be intelligible and observant enough to exercise work. Despite his low concern for people, he is able to
his power in relation to his subordinates in different achieve goals without causing any dislike among his
ways as per the needs of the situation. The leader can subordinates.
use powers like reward power, coercive power or expert (iv) Bureaucrat: The manager adopting bureauc-
power, formal or informal power to stimulate positive ratic style of leadership is able to control the work-
response from his subordinates. situation and achieve goals by means of rules and
Q. 3. What do you mean by leadership effective- procedures. This type of leader has minimum concern
ness? for people as well as for work.
Ans. The different styles of leadership reveal the There are some ineffective styles of leaderships that
behavioural pattern of the leaders. The effectiveness of have proved inappropriate to the situations. They are
manager-leader depends upon the adopted leadership as follows:
style by him. It can be employee-centred leadership (v) Compromiser: A compromiser is the type of
(relations-oriented) or production-centred style of manager who compromises with the situation and
leadership (task-oriented). The leadership styles reflect emphasis his decision due to pressure that may be either
leader’s concern for their people or concern for concerning with people or work. Such types of manager
production. The leader may combine his concern for have proved to be poor decision-maker and ineffective
people as well as for production with different degrees manager-leader.
of emphasis on each aspect. This idea was developed (vi) Missionary: This type of manager is least
in the form that is known as Managerial Grid. concerned with work and aims primarily at building
Blake and Mounton developed the concept of harmonious relationships among people. The situation
managerial grid in the year 1964. It refers to the desires more concerns for work as so he is unable to
diagrammatic representation of the possible deliver good results.
combinations for concern for people and concern for (vii) Autocrat: The manager who shows his only
production that may be reflected in the leadership styles. interest in work and its results are autocratic managers.
The effectiveness in leadership depends upon the This type of manger lacks confidence in his subordinates
situations demands of a specific environment. The as the situation demands relation-orientation. This type
leadership style is termed effective when it is appropriate of manager-leader depends on high-handed or
to a given situation. If the style is inappropriate, then it domineering management and so his leadership fails to
is termed as ineffective. last long.
(viii) Deserter: The “deserter” type of the manager-

TERMINAL QUESTIONS
leader is the one who is neither concerned with people
nor with work. This type of leader shows passive attitude Q. 1. What do you mean by team? Discuss the
towards his job and is rated as an escapist. stages of team development.
The factors influencing leadership effectiveness are Ans. Team is a group of two or more persons
leader’s own personality, past experience and working for similar goals. Its characteristic comprises
expectations, expectations and behaviour of his of interaction among members, interdependence, mutual
superiors, subordinates’ characteristics, expectations accountability, social entity and achievement of common
and behaviour, requirements of tasks to be performed goal. It becomes difficult to form team because people
by subordinates, expectations and behaviour of fellow with individual differences join organisation with
managers (peers), organisational culture (climate) and different personalities, value system, attitudes and needs.
policies. The leader should be able to understand the needs of
Q. 9. Enumerate five most important role related the persons, hierarchy, their problems, attitude and value
qualities of leader. system to run organisation efficiently.
Ans. The leader has to possess certain qualities of The five most suitable stages of team building are
head and heart to be effective. There has to be number forming, storming, norming, performing and adjourning.
of qualities that need to be possessed by effective leader, They are discussed below:
regardless of his responsibilities related to the nature of (i) Forming: Forming is the first stage of team
leader-manager job or leadership style adopted by him. development. In forming, members try to explore and
These qualities are as follows: understand the behaviour of team members. The
(i) Mental and Physical Health: A leader needs members make their earnest efforts in understanding
to possess good state of physical and mental strength to the expectations of the team members. In this first stage,
bear the pulls and pressures of the leadership. He needs the members tend to be polite and are keen to make
to have balanced temperament and optimistic outlook. themselves accessible to the requirements of their team.
The leader should have stamina and sound health to (ii) Storming: Storming is the second stage of team
bear the burden of his work. development. In storming, members start competing for
(ii) Empathy: A leader must have empathy or status, leadership and control in the group. The
compassion for his subordinates and should have vision individuals understand other’s behaviours and
to look things from his subordinate’s angles. He should emphasize their role in the group. It results in the inter-
have capacity to appreciate others and his attitude should personal conflicts. The members try out for a definite
be motivating towards his subordinates. resolution to the issues that are related to the task and
working relations. The members also try to resolve those
(iii) Self-confidence: The self-confidence is an
issues that are related to the role of the individual in the
essential element in an effective leader as it helps him
group.
to analyze and face different situations and adopt
suitable style. (iii) Norming: Norming is the third stage of team
development. In norming, the members start moving in
(iv) Awareness of other’s opinion about himself:
cohesive or interconnected manner. The members
A leader should have self-confidence so that he can be
establish a balance among various conflicting forces.
observant enough about other’s attitude of perceiving
They develop group norms and consensus to achieve
him as a leader. A leader should be aware of his strength
the group goals. The norming stage develops a feeling
and weakness with respect to his subordinates.
of co-operativeness or togetherness among the team
(v) Knowledge and Intelligence: An effective members.
leader should have knowledge of group behaviour,
(iv) Performing: Performing is the fourth stage of
human nature and activities involving technical and
team development. In performing, team makes efforts
professional competence. A leader should possess
for the performance of the task and the accomplishment
intelligent perception of human psychology to judge
of goals or objectives. The coordination among
human nature and group behaviour. He should have
members gets improvised through established pattern
the ability to think clearly and should argue convincingly
of relationships. It helps in resolving conflicts. It is a
on the points of dispute.
stage where members trust each other and extend their behaviour. In this state of affairs, the team member’s
full co-operation for the accomplishment of group goals. discover the most efficient way of dealing with the
(v) Adjourning: Adjourning is the fifth stage of disputes and meet the necessities and the prospect of
team development. The team gets dispersed or the team.
disbanded when the purpose is fulfilled. The breaking (vi) The Action Research Approach: In this
up of the team is referred to as adjournment. approach, the entire range of behaviour is analyzed and
Q. 2. What is team building? Explain various assessed. The investigator interact with the team
approaches of team building. Do you think that these members and evaluate their behaviour. The effort is
approaches are helpful in the process of team prepared to discover the most suitable behaviour of the
building? team.
Ans. Team building means to shape the team for (vii) The Appreciative Inquiry Approach: This
smooth functioning of an organization. Steven and approach spotlights on the recognition of positive
Mary have defined team building as any formal character in the team members. The attempt is made to
intervention that is directed towards civilizing the channelise these positive qualities towards the
development and functioning of a team work. The accomplishment of the team goal.
process of team building endeavours on the enhancing Q. 3. What is team effectiveness? Discuss various
of efficiency of a team. elements of team effectiveness.
Pareek Udai has recommended following appro- Ans. There are some teams in an organisation that
aches for team building they are: are very successful and work effectively than other
(i) The Johari Window Approach: This approach teams. It brings forward the need of team effectiveness.
means to help the members in expressing their feelings, According to Steven and Mary, the team effectiveness
opinions reactions and accept feedback from team is the extent to which the team accomplishes its goals
members. This develops their understanding towards and accomplishes the needs and objectives of its
the team members. members and maintains its high standards over time.
The elements of team effectiveness are organisational
(ii) The Role Negotiation Approach: This
and team management, team design and team processes.
approach spotlight on perceptive of the potential of the
(i) Organisational and Team Environment:
team members and accepting their behaviour according
Organisational and team environment relates to
to the opportunity. This enhances the joint effort of the
the elements like Reward System, Communication,
team.
Systems, Physical Space, Organisational Environment,
(iii) The Team Roles Approach: This approach Organisational Structure, and Organisational Leadership.
believes that there are positive roles which each team
(ii) Team Design: It involves elements like task
member is likely to perform. Belbin has recognized
characteristics, team size, and team composition.
eight roles. They are: Chairman, shaper, plant, monitor/
(iii) Team Processes: It includes elements like
evaluator, company worker, resource investigator, team
team development, team norms, team roles and team
worker and completer. The level performance of these
cohesiveness.
roles conveys synchronization in the attempt of the team.
Q. 4. What is leadership? Explain various
(iv) The Behaviour Modification Approach: This
theories of leadership.
approach spotlights on group member’s behaviour
Ans. Leadership is a process of influencing group
towards the team. The individual member evaluates their
activities towards the achievement of certain goals. The
behaviour and finds out the most appropriate behaviour.
leader can be described as a person in a group who has
Then they adopt the most appropriate behaviour for the
the capability of influencing the group to work willingly.
presentation of the team.
A good and ideal leader guides and directs other people
(v) The Simulation Approach: In this approach a and provides purpose and direction to their efforts.
simulated team is shaped where members act together, The managers in the organisations have to guide
discuss, deliberate and learn from other members and lead their subordinates towards the accomplishment
of group goals. If a manager is a good leader then he control over the employees as if they were tools of
can be more effective in his work. An ideal manager production. It is observed that this type of leadership
will exercise leadership influence for the purpose and results in low morale of employee and is associated with
will not depend only on his positional power or formal unsatisfactory work performance. There are two
authority to secure group performance. dimensions of leader’s behaviour and they are initiating
The manager as a leader can influence the conduct structure and consideration.
and behaviour of the team members in the organisational Initiating structure is referred to the leader’s
interest as well as for his subordinates and for the entire behaviour in by outlining the relationship between him
group. Despites such inter-relationship, management and members of the work group and in earnestly
and leadership are not the same thing. The process of attempting to establish well defined pattern of
management involves planning, organising, coordina- organisation, channels of communication and methods
ting and controlling operations in achieving various of procedure. On contrary, consideration is referred to
organisational goals. behaviour indicative of friendship, mutual trust, respect
There are two theories of behaviour, they are trait and warmth in the relationship between leader and his
theory and behavioural theory, they can be explained group members.
as: Q. 5. Compare and contrast the behavioural
Trait theory is the earliest theory that is based on theory and situational theory of leadership.
the distinction between the personal qualities or traits Ans. The behavioural theories of leadership are
of successful leaders. The trait theory suggests a list of based on the belief that leaders can be identified by
personality traits or characteristics that are essential in reference to their behaviour in concerning to the
a person for his success as a leader. The trait theory followers. The theory suggested that leadership can be
suggests that the leader must be strongly built, described in terms of the performance of leaders than
intelligent, honest and should be mentally mature to take their actual identity. The behavioural theory was
favourable decisions. The individuals who had these presented on the basis of research studies. The leaders
qualities were considered potential leaders and so this who treat their subordinates as human beings and are
theory had some limitations. concerned with their well-being, and encourage and
It was not accepted as a valid theory. There was no involve them in goal setting, are considered to be more
universally approved list of traits that can be associated effective and successful. Such types of leaders are
with successful leaders. The traits were not measurable described as ‘employee-centred’ leaders. The leaders
and so it was difficult to distinguish between leaders who give emphasis to job performance in conformity
and followers. with prescribed standards are termed as ‘production-
As the name suggests, the behavioural theories centred’ leaders. These type of leaders exercises close
of leadership are based on the belief that leaders can be control over the employees as if they were tools of
production. It is observed that this type of leadership
identified by reference to their behaviour in concerning
results in low morale of employee and is associated with
to the followers. The theory suggested that leadership
unsatis-factory work performance. There are two
can be described in terms of the performance of leaders
dimensions of leader’s behaviour and they are initiating
than their actual identity. The behavioural theory was
structure and consideration.
presented on the basis of research studies. The leaders
who treat their subordinates as human beings and are Initiating structure is referred to the leader’s
concerned with their well-being, and encourage and behaviour in by outlining the relationship between him
involve them in goal setting, are considered to be more and members of the work group and in earnestly
effective and successful. Such types of leaders are attempting to establish well defined pattern of
organisation, channels of communication and methods
described as ‘employee-centred’ leaders. The leaders
of procedure. On contrary, consideration is referred to
who give emphasis to job performance in conformity
behaviour indicative of friendship, mutual trust, respect
with prescribed standards are termed as ‘production-
and warmth in the relationship between leader and his
centred’ leaders. These types of leaders exercises close
group members.
In the situational theory of leadership the compelled to follow the orders of the leader under the
achievement of leadership depends upon the circum- threat or penalties. The subordinates are given no
stances in which the leader operates. opportunity to be part of goal setting or taking any
The leadership contingency model developed by initiative or giving any suggestion. They are subject to
Fred E. Fiedler says that the leader’s efficiency depends close supervision and thus have a tendency to avoid
upon three situational factors they are: responsibility. The autocratic manager pays least
concern for his employee’s well-being as they suffer
(i) Leader follower’s relations which is the
from frustration and low morale. There are several
degree of follower’s trust, confidence and
limitations of autocratic style of leadership.
respect for the leader.
(ii) The level to which the task is to be executed (ii) Democratic or Participative Style:
by subordinates is routine or non-routine. Democratic style of leadership is also called
(iii) The authority of the leader, that is, the power participative style of leadership. In democratic style of
connected with the rank and position of the leadership, decisions are taken by the leader after
leader in the organisation. consulting with his subordinates and with their
He defined favourableness of a state of affairs as participation in the decision-making process. The
the degree to which the situation facilitates the leader participative leader or democratic leader encourages his
to exercise his power over his group. subordinates to make suggestions and further
The most favourable state of affairs for leaders to encourages them to take initiative in setting goals and
persuade their group when they are well liked by the implementing decisions. It enables the subordinates to
members, the task is highly structured. satisfy their social and ego needs that result in their
commitment to organisational goals and higher
Q. 6. Do you think that democratic style of
productivity. The regular and repeated interactions
leadership is the best style of leadership? Give your
between the subordinates and managers help in building
arguments comparing all styles of leadership.
bonds of faith and confidence.
Ans. There are three styles of leadership they are:
(iii) Laissez faire leadership: Laissez faire
(i) Autocratic or Authoritative Style
leadership is an autocratic style which is adopted by
(ii) Democratic or Participative Style, and
the managers to give up their leadership roles in the
(iii) Laissez-faire or Free-rein Style.
organization. It is suitable when a leader is interested
(i) Autocratic or Authoritative Style: An
autocratic leader is a type of leader who centralises in delegating decision-making, when subordinates are
power and decision-making within himself and well trained and highly knowledgeable and when
implement his complete control over the subordinates. organizational goals have been communicated well.
In autocratic style of leadership, subordinates are ■■
157
Power and Politics

16
defined as the ability of one person or group to cause
INTRODUCTION
another person to do that they might not have done on
Power and politics plays significant part in the their own. It resides in individuals and is the ability to
efficient functioning of the organizations. Power is the influence others successfully in the desired fashion. In
ability of one person or group to cause another person organizations, manager’s ability to get work done
for work. It is the ability to influence others successfully. depends upon the power possessed by him or her. The
Power is different from authority but both plays vital knowledge of power plays vital role in smooth
role in efficient functioning of the organization. functioning of the organization as the peoples can
Authority is major source of power. It moves manage their activities in proper ways. Power and
downwards. Power can be positive as well as negative authority are two different terms and have their own
and moves in all directions depending upon its usage meaning and significance. If power refers to influencing
by the person in the organization. Power can be used to others successfully then authority means right to
engage in politics and influence decision-making command. Authority is major source of power and is
process. Power is of two types: they are formal and positional, concerned with position and legitimate.
informal power. Formal power is occupied by the person Authority moves downwards only but power moves in
in the organization. They are of four types: they are all directions depending upon the usage of power being
legitimate, reward, coercive and informative power. used by the person in the organization. Power is termed
Informal power is not formal given by the organization. “positive” when it is used to help the organization. In
They are of three types: they are expert, referent and such cases, individuals try to maintain equilibrium of
charismatic power. their personal interest and organizational goals. The term
Politics is associated with resource allocation, “power” has no “negative” association in organizational
conflict resolution and decision-making process in the context. It turns negative when the powers possessed
organisation. Organisational politics has positive as well by individuals are used for their personal advantage.
as negative aspects. Individual factors and organizational Power helps the organization to control people and
factors influence the political behaviour of individuals in other resources so that they collectively corporate to
the organization. Legitimate and illegitimate political achieve common organizational goals. It can be used to
behaviour is of two types of political behaviour of the engage in politics and influences decision-making
individuals in the organization. process. It further helps in promoting new and
appropriate organizational goals. Power influences
SUMMARY
complexity, formality and centralization of activities in
In every organization, the concept of power and the organization. The powerful persons in the
politics plays significant part. Every person from top to organization have the strength for determining the size
bottom should known the importance of power and of the organization, allocation of rewards, selection of
politics in an organization. It helps them to manage and technology etc. It plays a very significant role in the
get managed properly. Power is one common concept efficient functioning of the organization.
that exists in all social situations and prevails There are two types of power-formal power and
significantly in all types of organizations. Power can be informal power. Formal power refers to power that is
occupied by the person in the organization. This type is balanced following of individual as organizational
of power is derived from the organization structure and goals. It also encourages problem solving methods and
positions being occupied by the persons in the enhances analyzing the situation for smooth functioning
organization structure. There are four types of formal of the organization. The negative aspect is where the
powers that are found in organizations and they are self-interest plays more importance over organizational
legitimate, reward, coercive and informative power. goals.
Legitimate power is the power to control and use the There are two types of political behaviour of the
organizational resources for the accomplishment of individuals in the organizations and they are legitimate
organizational goals. Reward power is the power to political behaviour and illegitimate political behaviour.
provide promotion, praise, raise, projects and other The political activities in the organizations can be broadly
kinds to rewards that can be encouraging to divided into seven categories and they are attacking or
subordinates. Coercive power is the power to give blaming others, selectively distributing information,
punishment or withhold it and is just the opposite of controlling information channels, forming coalitions,
reward power. This power helps in demoting, cultivating networks, creating obligations and managing
terminating and suspending etc. others. Informative impressions.
power is exercised by the person who has access and
There are two types of factors namely individual
control over information in the organization.
factors and organizational factors that influence the
Informal power is a power that is not given formally
political behaviour of individuals in the organization.
by the organization. Persons having informal powers
Individual factors are those where individuals play
do not have positional power in the organization. There
politics to satisfy their individual needs and to influence
are three types of informal powers and they are expert
decision-making process of the organization. There are
power, referent power and charismatic power. Expert
many organizational factors that influence individuals
power is a power that is non-existent in every
to play politics in the organization. Due to optimum
organization and is influenced by individuals who
resources in the organization, individuals get engaged
possess expertise, special skills or knowledge that helps
in the politics to get maximum advantage of distribution
in smooth functioning of the organization. Referent
of the resources. The position, power, promotion etc
power is a power that is based on identification with a
falls prey to the politics in the organization. Sometimes,
person who has desirable position, power, resources or
individuals play politics to get advantage of the situation
personal traits. Charismatic power is a power that is
where state of ambiguity and uncertainty in decision-
based on the emotions and feelings of the followers and
is often referred to as deep-rooted form of referent making arises. The politics is played by individuals in
power. their favour when performance evaluation and its
outcomes are subjective, qualitative and unclear.
Many individuals use popular tactics to gain power
in the organizations. These tactics are friendliness, CHECK YOUR PROGRESS
making oneself irreplaceable, networking with powerful
Q. 1. Why is power important for the
people, building coalition, being assertive and
organisation?
establishing credibility and building pressure. The terms
“power” and “politics” are closely related to each other. Ans. Power can be explained as the ability of one
The politics in the organizations is associated with person or group to cause another person to do that they
resource allocation, conflict resolution and decision- might not have done on their own. It resides in
making process. The employees when convert their individuals, formal groups and informal groups. Power
power into action then they are presumed to be playing is also a major resource of directing and controlling
important part in the politics of the organization. In organisational goals and activities.
organizations, individuals play politics to obtain more It is very important aspect and plays significant role
power, command over resources, powerful in decision- in the organisations. It’s not only organisation but people
making to fulfil their personal goals. The organizational in the organisation also seek power. It is important for
politics has two sides–positive and negative. The the organisation and for its people due to the following
positive aspect of organizational politics is where there reasons and they are:
POWER AND POLITICS / 159
(i) Power helps in controlling the people and Q. 3. Distinguish between legitimate power and
other resources in the organisations so that coercive power.
they cooperate and help to achieve an Ans. Legitimate Power and Coercive Power are
organisation’s current goals. formal powers. Both these forms of power are derived
(ii) Power is used to engage in politics and from the organisation structure and positions being
influence decision-making process. It helps occupied by the individuals in the organisation structure.
in promoting new and more appropriate They are of same category but are different in many ways.
organisational goals. Legitimate power is a type of formal power that is
(iii) Power influences complexity, formality and used to control and use the organisational resources to
centralisation of activities in the organi- achieve organisational goals. It provides the legal
sations. authority to the person over the organisational resources.
(iv) The individuals who possess power can Legitimate power is considered to be the most powerful
determine the size of the organisation, and ultimate source of an individual’s power in the
allocation of rewards, selection of organisation. It is also broader than the coercive power
technology etc. and reward power. The legitimate power includes
(v) Power is an important aspect that is required acceptance of positional authority by members of an
organisation. This type of power helps a manager to
for the efficient functioning of the
control the organisational resources as well as can control
organisation.
the behaviour of their subordinates.
Q. 2. Distinguish between formal and informal
Coercive power is a type of power that is dependent
sources of power.
on fear. It is the power to give punishment or withhold
Ans. Formal power is a type of power that is it. This type of power is used by the people out of fear
occupied by the person in the organisation. It comes of negative results that might occur if one failed in his
from the position being occupied by the person in the goals. Coercive power can demote, terminate and
organisation. This type of power is derived from the suspend others. Coercive power includes frustrating
organization structure and positions being occupied by others through restriction of movement or controlling
the persons in the organization structure. The higher by force the basic physiological or safety needs,
position in organisation structure means that the person withholding praise and goodwill. Coercive power is
enjoys more power in the organisation. Whenever any exercised by the individual because of his physical
individual accepts some formal position in the strength, high tones, filthy languages, or the ability to
organisation of performing routine jobs then grant or withhold emotional support from others.
organisation gives him formal power and authority to Q. 4. Distinguish between expert power and
accomplish jobs that are related to jobs and tasks. The charismatic power.
persons having formal powers are generally considered Ans. Expert power is a type of informal power that
more powerful than persons having informal powers. exists in every organisation. This type of power is
There are four types of formal powers that are found in influenced and wielded as a result of expertise, special
organisations and they are legitimate, reward, coercive skill or knowledge possessed by the individuals. In
and informative power. modern world, expertise has become one of the most
Informal power is a type of power that is not given powerful sources of influence. As the world is becoming
formally by the organization. The persons who hold more technically oriented, the importance of expert
informal powers do not have positional power in the power has increased manifold. The influence of expert
power is immense in every branch of modern
organisation.
organisations, individuals possessing unique knowledge
Despite the fact that they hold positional powers,
and skills are able to wield power as a result of their
these people are as powerful as them. This is because expertise.
of their knowledge, skills, personality etc. There are
Charismatic power is a deep-rooted form of referent
three types of informal powers and they are expert
power. This type of power is based on the emotions and
power, referent power and charismatic power. feelings of the followers. It is based on the assumptions
and belief that the leader has some exceptionally (iv) Building Coalition: The individual’s forms
charismatic personality, ability and other characteristics alliance and coalition with each other over issue based
that influence and inspire his followers to believe and matter to get their work done. The coalition has to be
follow that person. Charismatic power is normally found actively as interests of individual’s changes from time
in religion, politics and unionism. The impact of to time. Each group tries to obtain greater share of power
charismatic power diminishes the importance of in coalition. When there is a great deal of task and
legitimate, coercive and reward power. Charismatic resource interdependence, more coalitions are created
power vanishes if the leader vanishes from the scenario.
in the organisation. There is less coalition formation
This type of power cannot be delegated as the other
among the sub-units when there is less interdependence
fellows might not possess the same characteristics that
among subunits. The coalition formation is also low
were found in a charismatic leader. It has it demerits as
the followers blindly follow their charismatic leader when the subunits are largely self-sufficient or have
without understanding their responsibilities. plenty of resources.
Q. 5. Enumerate the process of obtaining power. (v) Being Assertive and Establishing Credibility:
Ans. The individuals use different tactics in the If an individual has to be powerful in the organisation
organisation to obtain power. The popular tactics that he has to assert oneself by using direct and forceful
are used to obtain power by the individuals in the approach such as demanding compliance with requests,
organisation are as follows: repeating reminders, citing rules that require
(i) Friendliness: Many individuals tries to make compliance. An individual tends to establish his
themselves powerful in the organisation by taking the credibility in terms of sincerity, honesty and punctuality
help of flattery, creation of goodwill, acting humble and in words as well as in deals.
being friendly with powerful persons. These individuals (vi) Building Pressure: This is considered to be
try to create a power base for themselves and make argumentative and hostile method of gaining power. This
request to powerful persons to give him/her the favour. type of tactics is generally employed by trade unions in
These tactics helps them in identifying them with these the organisations. It results in strike or showdown if
individuals and becoming powerful figure in the management decline to their demands. In such hostile
organisation.
methods, the use of threats may provoke counter-threats
(ii) Making Oneself Irreplaceable: The than concessions. Pressure tactics has always been major
individuals have to develop their specialised knowledge,
source of obtaining power in the organisations and
skill and relationship with such great precision and
individuals becomes leader of unions to build pressure
efficiently that it will be almost impossible for the
of gaining power in the organisations.
organisation to find a substitute for their replacement.
This can be achieved by deliberately accepting Q. 6. Distinguish between legitimate and
responsibility that automatically brings him in contact illegitimate political behaviour.
with many managers. It results him in getting favours Ans. When there is too much compliance or
from them and help him in getting promotion, rewards conformity to the rules and the regulations of the
etc. organisation by the individuals then it is called legitimate
(iii) Networking with Powerful People: The political behaviour. It includes complaining to one’s
networking with powerful persons in the organizations supervisor, by-passing the chain of command, forming
helps individuals in getting major recognition as they coalitions, obstructing organisational policies
become cult figures. In order to be powerful in developing contacts outside the organisation through
organizations, individuals try to identify with powerful one’s professional activities.
individuals in terms of their influence in the
When individuals who practices extreme or
organisation, higher level of authority, status symbol,
position, control over resources, expertise etc. This type aggressive activities such as any type of sabotage,
of networking that makes them identify and establishing whistle-blowing, and symbolic protests, like wearing
themselves with such powerful persons helps them in unorthodox dress or groups of employees calling in sick,
obtaining power. then it is referred to as illegitimate political behaviour.
Q. 7. What do you mean by managing resources feels that they may be deprived of
impressions? such resources in the process of distribution
Ans. As the name suggests, managing impressions of resources and so they play politics in the
refers to creating favourable impressions or images in organisation.
the organisation. This is a process where the powerful (iii) Uncertainty in decision-making: There are
persons exhibit their behaviour in such manner that some individuals who take advantage of the
others develop a favourable image about them. These situation where there is uncertainty and
types of powerful persons try to be charismatic or ambiguity in decision-making because of
influential by posing themselves as the protectors of unclear rules and policies.
member’s interest or might make their presence at the (iv) Performance evaluation: The individuals
time of crisis. It makes them attracts others attention tend to play politics in the organization when
and create favourable image for themselves. performance evaluation and its outcome are
Q. 8. Enumerate the factors influencing the subjective, qualitative and unclear.
organisational politics. (v) High performance pressure: The
individuals play politics when they are
Ans. The political behaviour of individuals in the
enforced with high performance pressure.
organisation is influence by variety of factors. These
Playing politics in the organization becomes
factors can be broadly categorised into individual and
a measure to pressurize authority to withdraw
organisational factors.
control and lower the performance target.
(i) Individual Factors: There are individual factors
(vi) Decision-making culture: Democratic and
where individuals play politics to satisfy their personal
participative decision-making culture of the
needs. These personal or individuals needs are like to
organisation is also liable to organisational
gain power for control and to influence decision-making
politics as every individual wants to enhance
process of the organisation. The aim of such individuals
his/her importance and thereafter give
is to increase the area of their influence. They try to
opinion on crucial and important matters.
sustain power as it helps to obtain personal needs and
(vii) Affecting lower level persons: The lower
fulfill desires. In organistions, individuals play politics
level persons get affected when they
as they have great desire and high need of gaining power.
experience persons at higher level playing
Such types of individuals are basically internals and self-
politics.
monitored people. There are many individuals who play
politics because of their expectation of quick success TERMINAL QUESTIONS
in life at any cost.
Q. 1. What is power? Why do people need
(ii) Organisational Factors: There are some of
power?
the organisational factors that influence the individuals
to play politics in the organisation. These factors are as Ans. Power can be explained as the ability of one
follows: person or group to cause another person to do that they
(i) Limited Resources in the organisation: - might not have done on their own. It resides in
When there are limited resources in the individuals, formal groups and informal groups. Power
organisation then every individual in the is also a major resource of directing and controlling
organisation wants to have optimum organisational goals and activities.
resources. It results in making individuals It is very important aspect and plays significant role
getting engaged themselves in politics to get in the organisations. It’s not only organisations but
the maximum advantage of distribution of people in the organisation also seek power. It is
the resources. important for the organisation and for its people due to
(ii) Interpretation of limited resources: The the following reasons:
interpretation of limited resources like (i) Power helps in controlling the people and
position, power, promotion etc. in the other resources in the organisations so that
organisation makes individuals engage in the they cooperate and help to achieve an
politics. The individual who craves for such organisation’s current goals.
(ii) Power is used to engage in politics and resources as well as can control the behaviour of their
influence decision-making process. It helps subordinates.
in promoting new and more appropriate (ii) Reward Power: Reward power is the power
organisational goals. to provide promotion, praise, raise, projects and other
(iii) Power influences complexity, formality and kinds to rewards that can be encouraging to
centralisation of activities in the organisa- subordinates. It is just the opposite of coercive power.
tions.
The reward can be tangible or intangible or both. This
(iv) The individuals who possess power can
type of power also includes friendly colleagues,
determine the size of the organisation,
allocation of rewards, selection of technology important information, and preferred work shifts etc.
etc. The person distributing rewards and that others view it
(v) Power is an important aspect that is required as valuable will have power over them. This type of
for the efficient functioning of the power hold it’s relevant, till the subordinates value the
organisation. worth of rewards. In some cases, persons having reward
Q. 2. Do you think the positional power is the power may find it difficult to motivate subordinates
most powerful power in the organisation? Why so? when he /she needs substantial rewards.
Explain different types of formal power in the (iii) Coercive Power: Coercive power is a type of
organisation. power that is dependent on fear. It is the power to give
Ans. Formal power is a type of power that is punishment or withhold it. This type of power is used
occupied by the person in the organisation. It comes by the people out of fear of negative results that might
from the position being occupied by the person in the occur if one failed in his goals. Coercive power can
organisation. This type of power is derived from the demote, terminate and suspend others. Coercive power
organization structure and positions being occupied by includes frustrating others through restriction of
the persons in the organization structure. The higher movement or controlling by force the basic physiolo-
position in organisation structure means that the person gical or safety needs, withholding praise and goodwill.
enjoys more power in the organisation. Whenever, any Coercive power is exercised by the individual because
individual accepts some formal position in the of his physical strength, high tones, filthy languages, or
organisation of performing routine jobs then the ability to grant or withhold emotional support from
organisation gives him formal power and authority to others.
accomplish jobs that are related to jobs and tasks. The
(iv) Information Power: Informative power is
persons having formal powers are generally considered
exercised by the person who has access and control over
more powerful than persons having informal powers.
There are four types of formal powers that are found in information in the organization. The individuals having
organisations and they are legitimate, reward, coercive this power can get their work done because of their
and informative power. position or access and control over the information.
The different types of formal power in the The greater is the information power when there is
organisations are as follows: greater access and control over the information.
(i) Legitimate Power: Legitimate power is a type Q. 3. What is informal power? Explain different
of formal power that is used to control and use the types of informal power in the organisation.
organisational resources to achieve organisational goals. Ans. Informal power is a type of power that is not
It provides the legal authority to the person over the given formally by the organization. The persons who
organisational resources. Legitimate power is hold informal powers do not have positional power in
considered to be the most powerful and ultimate source the organisation.
of an individual’s power in the organisation. It is also Despite the fact that they hold positional powers,
broader than the coercive power and reward power. The these people are as powerful as them. This is because
legitimate power includes acceptance of positional of their knowledge, skills, personality etc. There are
authority by members of an organisation. This type of
three types of informal powers and they are: expert
power helps a manager to control the organisational
power, referent power and charismatic power.
(i) Expert Power: Expert power is a type of (i) Friendliness: Many individuals tries to make
informal power that exists in every organisation. This themselves powerful in the organisation by taking the
type of power is influenced and wielded as a result of help of flattery, creation of goodwill, acting humble and
expertise, special skill, or knowledge possessed by the being friendly with powerful persons. These individuals
individuals. In modern world, expertise has become one try to create a power base for themselves and make
of the most powerful sources of influence. As the world request to powerful persons to give him/her the favour.
is becoming more technically oriented, the importance These tactics helps them in identifying them with these
of expert power has increased manifold. The influence individuals and becoming powerful figure in the
of expert power is immense in every branch of modern organisation.
organisations, individuals possessing unique knowledge (ii) Making Oneself Irreplaceable: The
and skills are able to wield power as a result of their individuals have to develop their specialised knowledge,
expertise. skill and relationship with such great precision and
(ii) Referent Power: Referent power is referred efficiently that it will be almost impossible for the
organisation to find a substitute for their replacement.
to as giving some one’s reference or getting identified
This can be achieved by deliberately accepting
with some person with position and power. In
responsibility that automatically brings him in contact
organisations, some individual get their things done as
with many managers. It results him in getting favours
they wish. It has a lot of similarity with charismatic
from them and help him in getting promotion, reward
power. This type of power is based on identification
etc.
with a person who has desirable position, power,
(iii) Networking with Powerful People: The
resources or personal traits. In a situation, where some
networking with powerful persons in the organizations
individual admires and identifies with a political leader
helps individuals in getting major recognition as they
or an influential person in the locality or the state, he /
become cult figures. In order to be powerful in
she can exercise power over others. Referent power
organizations, individuals try to identify with powerful
develops out of admiration of some powerful persons.
individuals in terms of their influence in the
(iii) Charismatic Power: Charismatic power is a organisation, higher level of authority, status symbol,
deep-rooted form of referent power. This type of power position, control over resources, expertise etc. This type
is based on the emotions and feelings of the followers. of networking that makes them identify and establishing
It is based on the assumptions and belief that the leader themselves with such powerful persons help them in
has some exceptionally charismatic personality, ability obtaining power.
and other characteristics that influence and inspire his (iv) Building Coalition: The individual’s forms
followers to believe and follow that person. Charismatic alliance and coalition with each other over issue based
power is normally found in religion, politics and matter to get their work done. The coalition has to be
unionism. The impact of charismatic power diminishes actively as interests of individual’s changes from time-
the importance of legitimate, coercive and reward power. to-time. Each group tries to obtain greater share of power
Charismatic power vanishes if the leader vanishes from in coalition. When there is a great deal of task and
the scenario. This type of power cannot be delegated as resource interdependence, more coalitions are created
the other fellows might not possess the same in the organisation. There is less coalition formation
characteristics that were found in a charismatic leader. among the subunits when there is less interdependence
It has it demerits as the followers blindly follow their among subunits. The coalition formation is also low
charismatic leader without understanding their when the subunits are largely self-sufficient or have
responsibilities. plenty of resources.
Q. 4. Explain the tactics people adopt to gain (v) Being Assertive and Establishing Credibility:
power in organisations. If an individual has to be powerful in the organisation
Ans. The individuals use different tactics in the he has to assert oneself by using direct and forceful
organisation to obtain power. The popular tactics that approach such as demanding compliance with requests,
are used to obtain power by the individuals in the repeating reminders, citing rules that require
organisation are as follows: compliance. An individual tends to establish his
credibility in terms of sincerity, honesty and punctuality This can be achieved by deliberately accepting
in words as well as in deals. responsibility that automatically brings him in contact
(vi) Building Pressure: This is considered to be with many managers. It results him in getting favours
argumentative and hostile method of gaining power. This from them and help him in getting promotion, reward
type of tactics is generally employed by trade unions in etc.
the organisations. It results in strike or showdown if (iii) Networking with Powerful People: The
management decline to their demands. In such hostile networking with powerful persons in the organizations
methods, the use of threats may provoke counter-threats helps individuals in getting major recognition as they
than concessions. Pressure tactics has always been major become cult figures. In order to be powerful in organiz-
source of obtaining power in the organisations and ations, individuals try to identify with powerful
individuals become leader of unions to build pressure individuals in terms of their influence in the
of gaining power in the organisations. organisation, higher level of authority, status symbol,
Q. 5. What is politics? Why people play politics position, control over resources, expertise etc. This type
in the organisation? of networking that makes them identify and establishing
Ans. Politics is associated with resource allocation, themselves with such powerful persons helps them in
conflict resolution and decision-making process in the obtaining power.
organisation. Organisational politics has positive as well (iv) Building Coalition: The individual’s forms
as negative aspects. Individual factors and organizational alliance and coalition with each other over issue based
factors influence the political behavior of individuals in matter to get their work done. The coalition has to be
the organization. Legitimate and illegitimate political actively as interests of individual’s changes from time-
behaviour is of two types of political behaviour of the to-time. Each group tries to obtain greater share of power
individuals in the organisation. in coalition. When there is a great deal of task and
Many individuals use popular tactics to gain power resource interdependence, more coalitions are created
in the organizations. These tactics are friendliness, in the organisation. There is less coalition formation
making oneself irreplaceable, networking with powerful among the subunits when there is less interdependence
people, building coalition, being assertive and establish- among sub-units. The coalition formation is also low
ing credibility and building pressure. The terms “power” when the subunits are largely self-sufficient or have
and “politics” are closely related to each other. The plenty of resources.
politics in the organizations is associated with resource (v) Being Assertive and Establishing Credibility:
allocation, conflict resolution and decision making If an individual has to be powerful in the organisation
process. he has to assert oneself by using direct and forceful
These factors are described in details as: approach such as demanding compliance with requests,
(i) Friendliness: Many individuals tries to make repeating reminders, citing rules that require
themselves powerful in the organisation by taking the compliance. An individual tends to establish his
help of flattery, creation of goodwill, acting humble and credibility in terms of sincerity, honesty and punctuality
being friendly with powerful persons. These individuals in words as well as in deals.
try to create a power base for themselves and make (vi) Building Pressure: This is considered to be
request to powerful persons to give him/her the favour. argumentative and hostile method of gaining power. This
These tactics helps them in identifying them with these type of tactics is generally employed by trade unions in
individuals and becoming powerful figure in the the organisations. It results in strike or showdown if
organisation. management decline to their demands. In such hostile
(ii) Making Oneself Irreplaceable: The methods, the use of threats may provoke counter-threats
individuals have to develop their specialised knowledge, than concessions. Pressure tactics has always been major
skill and relationship with such great precision and source of obtaining power in the organisations and
efficiently that it will be almost impossible for the individuals becomes leader of unions to build pressure
organisation to find a substitute for their replacement. of gaining power in the organisations.
Q. 6. Write notes on: charismatic leader without understanding their

(i) Importance of power in the organisation. responsibilities.
(ii) Charismatic power. (iii) Legitimate and Illegitimate Political
(iii) Legitimate and Illegitimate political Behaviour: When there is too much compliance or
behaviour. conformity to the rules and the regulations of the
(iv) Factors influencing politics in the organisation by the individuals then it is called legitimate
organisation. political behaviour. It includes complaining to one’s
Ans. (i) Importance of power in the supervisor, by-passing the chain of command, forming
organisation: It is very important aspect and plays coalitions, obstructing organisational policies
significant role in the organisations. It’s not only developing contacts outside the organisation through
organisations but people in the organisation also seek one’s professional activities.
power. It is important for the organisation and for its When individuals who practices extreme or
people due to the following reasons: aggressive activities such as any type of sabotage,
(i) Power helps in controlling the people and whistle-blowing, and symbolic protests, like wearing
other resources in the organisations so that unorthodox dress or groups of employees calling in sick,
they co-operate and help to achieve an then it is referred to as illegitimate political behaviour.
organisation’s current goals. (iv) Factors Influencing Politics in the
(ii) Power is used to engage in politics and organisation: The political behaviour of individuals
influence decision-making process. It helps in the organisation is influence by variety of factors.
in promoting new and more appropriate These factors can be broadly categorised into individual
organisational goals. and organisational factors.
(iii) Power influences complexity, formality and (a) Individual Factors: There are individual
centralisation of activities in the organi- factors where individuals play politics to satisfy their
sations. personal needs. These personal or individuals needs are
(iv) The individuals who possess power can like to gain power for control and to influence decision-
determine the size of the organisation, making process of the organisation. The aim of such
allocation of rewards, selection of technology individuals is to increase the area of their influence.
etc. They try to sustain power as it helps to obtain personal
(v) Power is an important aspect that is required needs and fulfil desires. In organistions, individuals play
for the efficient functioning of the organ- politics as they have great desire and high need of
isation. gaining power. Such types of individuals are basically
(ii) Charismatic Power: Charismatic power is a internals and self-monitored people. There are many
deep-rooted form of referent power. This type of power individuals who play politics because of their
is based on the emotions and feelings of the followers. expectation of quick success in life at any cost.
It is based on the assumptions and belief that the leader (b) Organisational Factors: There are some of
has some exceptionally charismatic personality, ability the organisational factors that influence the individuals
and other characteristics that influence and inspire his to play politics in the organisations. These factors are
followers to believe and follow that person. Charismatic as follows:
power is normally found in religion, politics and (i) Limited Resources in the Organisation: When
unionism. The impact of charismatic power diminishes there are limited resources in the organisation then every
the importance of legitimate, coercive and reward power. individual in the organisation wants to have optimum
Charismatic power vanishes if the leader vanishes from resources. It results in making individuals getting
the scenario. This type of power cannot be delegated as engaged themselves in politics to get the maximum
the other fellows might not possess the same advantage of the distribution of resources.
characteristics that were found in a charismatic leader. (ii) Interpretation of Limited Resources: The
It has it demerits as the followers blindly follow their interpretation of limited resources like position, power,
promotion etc. in the organisation makes individuals (v) High Performance Pressure: The individuals
engage in the politics. The individual who craves for play politics when they are enforced with high
such resources feels that they may be deprived of such performance pressure. The playing poltics in the
resources in the process of distribution of resources and organization becomes measure to pressurize authority
so they play politics in the organisation. to withdraw control and lower the performance target.
(iii) Uncertainty in Decision-making: There are (vi) Decision-making Culture: Democratic and
some individuals who take advantage of the situation participative decision-making culture of the organisation
where there is uncertainty and ambiguity in decision- is also liable to organisational politics as every
making because of unclear rules and policies. individual wants to enhance his/ her importance and,
(iv) Performance Evaluation: The individuals thereafter, give opinion on crucial and important matters.
tend to play politics in the organization when (vii) Affecting Lower Level Persons: The lower
performance evaluation and its outcome are subjective, level persons get affected when they experience persons
at higher level playing politics.
qualitative and unclear.
■■
167
Organisational Culture and Development
Organizational Culture and Climate

17
The primary characteristics of an organisational
INTRODUCTION culture are as follows:
Organizational culture determines the way (i) Innovation and risk taking
organizational members interact with each other and (ii) Attention to detail
outsiders. It must be created and sustained to develop (iii) Outcome orientation
congenial environment in the organization. It has three (iv) People orientation
basic elements–artifacts, espoused values and basic (v) Team orientation
assumptions. It is expressed in terms of norms, values (vi) Aggressiveness
attitudes and beliefs shared by organizational members. (vii) Stability
Its major functions include sense of identity, (viii) Individual autonomy
enhancement of commitment and reinforcement of (ix) Structure
behaviour. It has stray impact on the performance of (x) Support
the organization. It is a descriptive study and not (xi) Identity
evaluative study. It has both functional as well as (xii) Performance
dysfunctional aspects. Sociability and solidarity are two (xiii) Conflict tolerance
factors that determine organizational culture. (xiv) Attitude towards change
Organizational climate is a measure to perceive the (xv) Focus
organization by its members. It determines the (xvi) Standard and values
employee’s attitude towards organizational life. It works (xvii) Rituals
on factors like job description, organizational structure, (xviii) Openness, communication and supervision
performance and evaluation standards, leadership styles, (xix) Market and customer orientation
challenges and innovation, motivation, communication, (xx) Excitement, pride and espirit de corps
goals and control process. (xxi) Commitment.
Organizational culture has strong impact on the
SUMMARY performance of the organization. There are several
Organizational culture is a system that determines factors that influence organizational culture that help
the way members of organization interact with each in creation and sustaining of culture in an organization.
other and outsiders. It provides system of shared It creates its impact on work place and so developing
meaning among members. Organisational culture must an ideal organizational culture that helps in smooth
be created and sustained in a way that it can develop functioning of all members of the organization. An ideal
congenial environment in the organisation. Organisation and strong organizational culture can experience some
culture has basic elements of culture and they are barriers and they can be barriers to change, diversity
artifacts, espoused values and basic assumptions. and acquisition and merger.
Organisational culture is expressed in terms of norms, Organisational culture is a descriptive study and
values, attitudes and beliefs shared by organisational not evaluative study. It has its functional as well as its
members. Organisational culture has its major functions dysfunctional aspects. There are two factors that
and they include sense of identity, enhancement of determine organizational culture and they are sociability
commitment and reinforcement of behaviour. and solidarity. These two dimensions yield four types
of organizational culture. They are network culture, Q. 2. What purpose organisational culture
merenary culture, fragmented culture and communal serves in an organisation?
culture. Ans. According to study by Kotter and Heskett,
Organisational climate is a measure by which culture has strong impact on the performance of the
members perceive the organization. It consists of set organisations. This study has delivered four major
of characteristics and factors that are perceived by the conclusions and they are as follow:
employees about their organization. It is like an (i) The corporate culture can have an important
indicator that determines the employee’s attitude and noteworthy impact on a firm’s long-term
towards organizational life. It serves as a major force economic performance.
in influencing employee’s behaviour towards their (ii) The corporate culture will probably be
organization. Organisational climate works on some proving more important factor in determining
main factors and they are job description, organizational the success or failure of firms in future.
structure, performance and evaluation standards, (iii) The corporate cultures that restrain or inhibit
leadership style, challenges and innovations, motivation, long-term financial performance can be many
communication, goals, control process. A healthy and but they can develop easily, even in firms
effective organisational climate is expected to have that are filled with reasonable and intelligent
characteristics that work in effectiveness of persons.
organisations. These characteristics primarily includes (iv) It may be a bit challenging to change
the integration of organizational goals, flexible structure corporate cultures but still they can be made
with nature of authority appropriate leadership, mutual more performance enhancing. In an
trust, recognition of individual differences and organisation, organisational cultures can be
attributes, attention to job design and quality of a perceived as combination of objective factors
working life, equitable system of rewards, etc. (innovation, risk taking, attention to detail,
outcome orientation, people orientation,
CHECK YOUR PROGRESS team orientation, aggressiveness, stability)
Q. 1. How culture in an organisation gets that may be having either high or low strength
established? or in between, leading to performance and
Ans. Culture can be described as pivot of any satisfaction.
society or group as it determines the way members The impact of culture on the effectiveness of the
interact with one another and with outsiders. Culture organisations can be functional as well as dysfunc-tional.
can also be described as the complex mixture of Its positive implies culture has impact on control,
assumptions, behaviours, stories, myths, metaphors and normative order, innovation, promotion and employee’s
other ideas that combine together to deliver an identity performance and satisfaction. On contrary, the negative
to its member in a particular group or society. side implies the fact that culture may lead to groupthink,
Organisational culture is the set of important collective blind spots, resistance to change and
understandings, such as norms, values, attitudes and innovation.
beliefs shared by organisational members. The essential Q. 2. Do you have reasons to believe that
core of organisational culture is the ‘system of shared different organisational climate may suit different
meaning’ among members. types of persons?
The organisation is said to be institutionalised when Ans. Organisational climate reflects a person’s
it takes on a life of its own, apart from any of its members percept of the organization to which he/she belongs. If
and acquires immortality. When any organisation gets organisational culture is concerned with nature of beliefs
an organisational permanence or stability then its and expectations then organisational climate works out
acceptable modes of behaviour becomes largely self- as an indicator of whether those beliefs are expectations
evident to its members. It helps in understanding the are met or not. In other words, organisational climate
formation, creation, sustainability of its organisational can be defined as set of characteristics and factors that
culture. It will further enhance our ability to explain are perceived by the employees about their
and predict the behaviour of people at work. organisations. These factors or characteristics serves as
ORGANIZATIONAL CULTURE AND CLIMATE / 169
a major force in influencing their behaviour. The factors They have also emphasized motivational framework of
perceived by the employees about their organisation organisational climate.
comprises of job description, organisational structure, The motivational framework of climate includes
performance and evaluation standards, leadership style, motives of achievement, expert influence, dependency
challenges and innov-ations, organisational values,
and affiliation.
decision-making processes, motivation,
communication, goals, control processes and so on. TERMINAL QUESTIONS
It signifies that an organisational climate is related
to the prevailing atmosphere surrounding the Q. 1. What do you mean by organisational
organisation and to the level of morale, strength of culture? Discuss the main characteristics of
feelings of belongings, care and goodwill among organisational culture?
members. Ans. Organisational culture is the set of important
According to Tagiuri and Litwin, organisational understandings, such as norms, values, attitudes and
climate can be described as relatively enduring quality beliefs, shared by organisational members. The essential
of the internal environment of an organisation that is core of organisational culture is system of shared
experienced by its members. It influences their meaning among members. Organisational climate has
behaviour to great extent and can be described in terms strong impact on the performance of the organisation. It
of the values of a particular set of characteristics of the has basic elements of culture and they are artifacts,
organisation. espoused values and basic assumptions. It is expressed
According to Hodgetts, organisational climate can in terms of norms, values, attitudes and beliefs shared
be classified into two major categories. The concept of by organisational members. Organisational culture has
organisational climate has been explained by him its key functions and they include sense of identity,
through an analogy or comparison with an iceberg. The enhancement of commitment and reinforcement of
part that is visible from the surface was the first aspect behaviour.
while the another part that is invisible and is under the The primary characteristics of an organisational
water is the second aspect. The visible that can be culture are as follows:
observed includes the structure of hierarchy, goals and
(i) Innovation and risk taking: It can be described
objectives of the organisation, performance standards
as the degree or extent to which employees are
and evaluations, technological state of the operations
encouraged to take innovative steps and calculated risk.
and so on. The second aspect that is invisible and
quantifiable includes subjective areas as (ii) Attention to detail: It can be described as
supportiveness, employees’ feelings and attitudes, degree or extent to which employees are expected to
values, morale, personal and social interaction with pay attention to details.
peers, subordinates and superiors and a sense of (iii) Outcome orientation: It can be described as
satisfaction with the job. the degree or extent to which management focuses
Q. 3. What are the main determinants of outcome rather than on process to achieve outcome.
organisational climate? (iv) People orientation: It can be described as the
Ans. The studies on dimensions of organisational degree or extent to which management gives attention
climate have helped us to understand the factors that to effect of decisions on people working in the
influences organisational climate. According to Likert, organisation and on its shareholders.
there are six dimensions of organisational climate and (v) Team orientation: It can be described as the
they are leadership, motivation, communication,
degree or extent to which works are organised around
decisions, goals and control.
team rather than individuals.
According to Litwin and Stringer, there are seven
(vi) Aggressiveness: It can be described as the
dimensions of organisational climate and they are
degree or extent to which people are aggressive or
conformity, responsibility, standards, rewards,
competitive rather than unconcerned or relaxed.
organisational clarity, warmth, support and leadership.
(vii) Stability: It can be described as the degree or (xxi) Commitment: It can be described as the
extent to which maintaining status quo is emphasized degree or extent to which individuals are willingly
in contrast to growth. working towards goals on a long-lasting basis.
(viii) Individual autonomy: It can be described Q. 2. What are the functions of organisational
as the degree or extent of responsibility, independence, culture? Describe the basic elements and
and opportunities for exercising initiative that determinants of organisational culture.
individuals have in an organisation. Ans. Culture is the social glue that helps to hold
(ix) Structure: It can be described as the degree the organisation together. There are three basic
or extent of rules and regulations and the amount of functions of organisational culture:
direct supervision that is used to supervise and control Culture works like a social adhesive or glue that
behaviour. helps in holding the organisation together. There are
(x) Support: It can be described as the degree or three basic functions of organisational culture and they
extent of assistance and warmth managers provide for are as follows:
their subordinates. (i) Organisational culture provides a sense of
identity for members.
(xi) Identity: It can be described as the degree or
(ii) Organisational culture enhances commitment
extent to which members identify with the organisation
to the organisation’s mission.
as a whole rather than with their particular work group
(iii) Organisational culture clarifies and
or field of professional expertise.
reinforces standards of behaviour.
(xii) Performance-reward: It can be described as
According to Child, culture can be explained as
the degree or extent to which reward in the organisation
one of the strategic tool of control in organisations and
are based on employee work performance.
explained that cultural control helps in four areas:
(xiii) Conflict tolerance: It can be described as (i) It helps in developing strong identification
the degree or extent of conflict present in relationships with management goals.
between peers and work groups as well as the motivation (ii) It helps in developing semi-autonomous
to be honest and open about differences. working with few formal controls.
(xiv) Attitude towards change: It can be described (iii) It has strong emphasis on selection, training
as the response given to new methods, ways and values. and development of personnel.
(xv) Focus: It can be described as the vision of the (iv) It has reward oriented climate towards
goals and objectives of an organisation’s operations as security of tenure and career progression.
communicated by those in control. According to Schein, there are three basic elements
(xvi) Standard and values: The levels of of organisational culture and they are artifacts, espoused
performance and behaviour considered to be acceptable values and basic assumptions.
by both types of criteria-formal and informal. (i) Artifacts: Artifacts is the first level of
(xvii) Rituals: It can be described as the expressive organisational culture and are hard to decipher. It is
events that support and reinforce organisational observable symbols and signs of the organisations and
standards and values. includes visible parts of organisation e.g., structures,
(xviii) Openness, communication and processes etc.
supervision: It can be described as the amount and type (ii) Espoused values: Espoused values is the
of interchange permitted. The communication flow can second level of organisational culture. These values are
be downward, upward, across the organisation and in the reasons (e.g., strategies, goals, philosophies) given
other directions as spelled out by the culture. by an organisation for the way things are done.
(xix) Market and customer orientation: It can (iii) Basic assumptions: Basic assumptions is the
be described as the degree or extent to which the third level of organisational culture and can be described
organisation is responsive to its markets and customers. as the beliefs that are taken for granted by the
(xx) Excitement, pride and esprit de corps: It can organisational members. These are ultimate sources of
be described as a perceptibly good feeling about the values and action that include: unconscious, percep-
organisation and its activities. tions, taken for-granted beliefs, thoughts, feelings etc.
Culture begins through many forces in an Q. 3. How does organisational culture create its
organisation. If the organisational culture is created then impact on work place? Suggest measures for
it is sustained through various other forces. After the developing organisational culture.
formation of culture, the employees learn culture by Ans. According to study by Kotter and Heskett,
merely existing in a particular cultural environment. It culture has strong impact on the performance of the
is important to study and learn the beginning of culture, organisations. This study has delivered four major
sustaining the culture, formation of culture, and learning conclusions and they are as followes:
the culture by employees. (i) The corporate culture can have an important
The process of creation of culture occurs in three and noteworthy impact on a firm’s long-term
ways: economic performance.
(i) The employers only hire and keep employees (ii) The corporate culture will probably be
who think and feel the way they do. proving more important factor in determining
(ii) The employers instructs, trains, teaches and the success or failure of firms in future.
socialise these employees. (iii) The corporate cultures that restrain or inhibit
(iii) The top management possesses behaviour long-term financial performance can be many
that can be posed as a role model for em- but they can develop easily, even in firms
ployees and further encourages them to that are filled with reasonable and intelligent
identify with them. persons.
There are three forces that play significant part in (iv) It may be bit challenging to change corporate
sustaining a culture and they are: cultures but still they can be made more
(i) Selection practices performance enhancing. In an organisation,
(ii) Actions of top management organisational cultures can be perceived as
(iii) Socialisation method. combination of objective factors (innov-
It can be concluded that an organisational culture ation, risk taking, attention to detail, outcome
is formed through interaction of various forces. These orientation, people orientation, team
forces are mainly philosophy of organisation; selection orientation, aggressiveness, stability) that
criteria; top management as role model; and socialisation may be having either high or low strength or
process. in-between, leading to performance and
satisfaction.
There are various mechanisms through which
employees come to know about their organisations The impact of culture on the effectiveness of the
culture. The important key mechanism involved are as organisation can be functional as well as dysfunctional.
follows: Its positive side implies culture has impact on control,
normative order, innovation, promotion and employee’s
(i) Symbols: Symbols can be described as material
performance and satisfaction. On the contrary, the
objects that suggest or indicate meanings and extend
negative side implies the fact that culture may lead to
beyond their intrinsic content.
groupthink, collective blind spots, resistance to change
(ii) Stories: The stories exemplify key aspects of and innovation.
an organisation’s culture. The effective story-telling
It is important to decide the outlook of an
helps in reaffirming those values to employees.
organisation culture before making any attempts of
(iii) Ceremonies: Ceremonies can be described as developing it. The perfect organisational culture can be
repetitive sequences of activities that express and developed if the ideas of Robbins and Kilmaan are
reinforce the key values of the organisation. It helps in shared with the idealistic writings of Rensis Likert. The
identifying and exemplifying important goals, important ideal culture can be proposed for the achievement of an
people etc. These type of special events commemorate organisation’s goal and it will be the one that have the
Corporate values. following features:
(iv) Statement of principles: The statement of (i) The goals and objectives of organisation are
principles defines culture in writing. There are some established and reviewed periodically
organisations that have explicitly written their principles through the participative involvement of all
for universal viewing. individuals and groups in the organisation.
(ii) The decisions are made at the appropriate Q. 4. Explain dimensions of organisational
level in the organisation by the persons who climate. How favourable organisational climate can
believe in its authenticity and relevance. be created?
(iii) The behaviour has to be supportive or helpful Ans. Many theories of dimensions of organisational
to the organisation’s goals and purposes. climate have been laid down. These studies have
(iv) The organisation is supportive or helpful of assisted us to understand what influence organisational
the needs and requirements of the individual climate.
employees. Likert has projected six dimensions of
(v) The individuals and groups tends to show organisational climate they are leadership, motivation,
high level of trust and respect for other communication, decisions, goals and control.
individuals and groups. Litwin and Stringer have anticipated seven
(vi) The superiors and subordinates should be dimensions of organisational climate: conformity,
having high level of trust and confidence in responsibility, standards, rewards, organisational clarity,
each other. warmth and support and leadership. They have also
(vii) The cooperation and teamwork should exist emphasized on the motivational framework of organ-
at all levels in the organisation.
isational climate. Motivational framework of climate
(viii) The methods of reinforcement used have to
includes motives of :
be primarily rewards and participation.
(i) Achievement: It deals with the concern for
(ix) The individuals in the organisation have to
excellence;
be cost conscious.
(x) The messages move upwards, downwards or (ii) Expert influence: It is concerned to make an
across the organisation as needed to deliver impact on others;
the desired information at the appropriate (iii) Control: It deals with the power and orderl-
places. iness;
(xi) The subordinates should accept the down- (iv) Extension: It is concerned with macro issues;
ward communication with an open mind. (v) Dependency: It is related to have a close touch
(xii) The upward communication tends to be with others in a significant way;
accurate and is received with an open mind.
(vi) Affiliation: It deals with the building and
(xiii) The changes are initiated to improvise
maintaining close personal relationships.
performance and goal accomplishment.
(xiv) The changes are received and accepted On the basis of various theories and considerations
openly. with managers, Pareek has recognised twelve processes
(xv) The individuals should speak proudly about of organisational climate, they are:
themselves and their employer. (i) Orientation: It means to give priority to the
(xvi) The time devoted by individuals in members with respect to the concern to stick to reputable
performing tasks has to be related to the rules, the concern for excellence and accomplishment.
contributions of the tasks towards the (ii) Interpersonal relationships: It means to
attainment of the organisation’s goals. depend on the pattern of relationship which can lead to
(xvii) The individuals should be motivated through climate of group formation, or climate of control, or a
enjoyment for achieving organisation’s goals. climate of dependency etc.
(xviii) The conflicts in the organisation should not (iii) Supervision: It deals with the depending on
be viewed as a destructive force but as a supervisory style, the climate may be of extension or it
potentially constructive activity. may be of affiliation.
This idealistic culture may be unrealistic but (vi) Problems: The problems might be taken as an
managers should work out their best to achieve as much occasion or irritants; manager may solve problems alone
possible to have an ideal organisational culture. or jointly by the superior and the subordinates.
(v) Management of mistakes: Attitudes towards (vi) Proper attention to job design and the quality
inaccuracy may be of tolerance or of annoyance; such of working life;
attitudes contribute to organisational climate. (vii) The challenging and responsible jobs with
(iv) Conflict management: Conflict may be high performance standards;
supposed as a chance or as threat; such awareness (viii) The equitable systems of rewards based on
manipulate organisational climate. positive reinforcement;
(vii) Communication: The direction, (ix) The opportunities for personal development,
dispersement, mode and type of communication career progression and advancement;
manipulates climate of an organisation. (x) To have justice in treatment, and fair
(viii) Decision-making: The levels at which personnel and industrial relations policies
decisions are taken, degree of participation in decision- and practices;
making are the issues, which influence organisational (xi) The open discussion of conflict with
climate. emphasis on the settlement of differences
without delay or confrontation;
(ix) Trust: The degree of trust or its absence
(xii) The democratic functioning of the
influence organisational climate.
organisation with full opportunities for
(x) Management of rewards: The observation genuine consultation and participation;
about what is rewarded in the organisation influences
(xiii) A sense of identity with, and loyalty to, the
the organisational climate.
organisation and a feeling of being a needed
(xi) Risk taking: It is an important determinant of and important member of the organisation.
environment.
In order to institute a functional organisational
(xii) Innovation and change: The styles of climate, various interferences have been recognized
organizing change and innovations are critical in which lead to organisational growth. One of such
establishing climate. involvement is building organisational ethos through
Organisational climate controls the level of morale OCTAPACE profile, being developed by Pareek. It
and attitudes, which members of the organisation bring suggests of establishing: openness, confrontation, trust,
to bear on their work performance and personal authenticity, proaction, autonomy, collaboration and
relationships. Therefore, it is important to build a healthy Experimentation. Once these eight factors are
organisational climate. A healthy organisational recognized in the organisation it leads to healthy
climate might be estimated to exhibit such organisational climate.
characteristic features as:
A healthy climate will not necessarily guarantee
(i) Integration of organisational goal and
enhanced organisational efficiency. Nevertheless, an
personal goals;
organisation is improbable to have most favourable
(ii) Flexible structure with a network of authority,
operational performance unless the climate evokes a
control and communications, and with
spirit of cooperation all through the organisation and is
autonomy for individual members;
favourable to motivate members to work freely and
(iii) Various styles of leadership appropriate to
efficiently.
particular work situations;
(iv) The mutual trust, consideration and support
among different levels of the organisation; ■■
(v) The recognition of individual differences
and attributes and of people’s needs and ex-
pectations at work;
174
Organizational Change
18
internal and external forces. Internal forces are the one
INTRODUCTION
that takes place within the organisation. The charac-
It is the change that takes place in an organization. teristics of these internal forces are:
Its aim is directed towards flourishing of organization (i) Change in leadership
and enhances development. The changes that initiate (ii) Change in employee profile
changes in an organization are internal and external (iii) Change in employee morale and motivation
forces. Internal forces take place within the organisation (iv) Union influence
while external forces take place outside the organization. (v) Implementation of new technology.
The change process consists of three steps they are External forces are the one that takes place outside
unfreezing the status, movement to a new stage and the organisation. The characteristics of these external
refreezing the view change to make it permanent. forces are:
Organizational resistance is the attitude or behaviour (i) Competition
that’s shows disapproval for a particular change in an (ii) Economic fluctuations
organization. Social learning is a means of learning (iii) Social trends
where people learn through observations and direct (iv) Global politics.
experience. Factors like analysis of pre-behavioural,
A successful and efficient organisational change
actual behaviour and its consequences help in modifying
process involves three major steps and they are
the behaviour of employees in an organization. The
identifying the need for change, cultivating a new
successful management of organizational change is
influenced by factors like environmental influences, behaviour or substitute a feeling comfortable with the
whole view of organization, support of top management, new situation. According to Lewin model, the change
employee’s participation, open communication, process comprises of three steps and they are:
incentives and rewards. (i) Unfreezing the status 940
(ii) Movement to a new stage
SUMMARY (iii) Refreezing the new change to make it
Organisational change is the change that takes place permanent.
in an organisation. These changes are aimed at According to continuous process model, the
flourishing of an organisation. It refers to setting up new treatment of change is taken from the perspective of
production methods, producing new products, top management. In this model, the top management
restructuring of organisation, adoption of information determines the effectiveness of the change process by
technology and change from public to private ownership evaluating various indications of organisational
and vice-versa. productivity or employee’s morale.
These changes enhance development in Organisational resistance can be defined as the
organisation and make them competent in global market. attitude or behaviour that shows disapproval for a
The changes that initiate changes in an organisation can particular change in an organisation. It serves as a
be broadly divided into two categories and they are feedback to reconsider the proposed change. It can be
ORGANIZATIONAL CHANGE / 175
used as tool for the betterment and benefit of the Ans. Today, organizations operate in a very
organisation. It has six major sources and they are: dynamic and changing environment. In order to become
(i) Structural inertia competitive, they make suitable changes from time-to-
(ii) Limited focus of change time to serve customers better. It also makes these
(iii) Group inertia organisations on par with the latest technology and helps
(iv) Threat to expertise
in maintaining or improvising their existing levels of
(v) Threat to established power relations
profits. All such forces that initiate changes can be
(vi) Resource allocation.
broadly divided into two categories and they are Internal
There may be individual as well as organisational
Forces and External Forces.
resistance that may resist the change in the organisation.
There are methods of overcoming the resistance to Internal Forces
change and they are education and communication, (i) Change in leadership: If there is change in
participation and involvement, facilitation and support, leadership of an organisation then this may result in
negotiation and agreement, manipulation and cooptation change in perceptions, strategies, activities and results.
and explicit and implicit coercion.
(ii) Change in employee’s profile: There are some
The factors that influence successful management changes in the profiles of employees that are inevitable
of organisational changes are environmental influences,
because of death, retirement, transfer, promotion,
whole view of organisation, support of top management,
discharge or resignation. In modern organisations,
employee’s participation, open communication,
incentives and rewards. The changes in the organisation women employment is on the increase and their strength
are carried out to improve the performance of four basic has increased manifold in recent years. In this era of
elements. These elements are human resources, globalisation, employees are recruited from different
functional resources, technological capabilities and national and cultural backgrounds. The human resource
organisational capabilities. There should be some policies and practices have to be reoriented to suit this
strategies that need to be implemented for organisational type of assorted workforce.
changes as to have better results from it. These strategies (iii) Change in employee’s morale and
of changes can be classified as evolutionary and motivation: The changes in leadership, policies and
revolutionary. Evolutionary strategy of changes is the
practices may affect the morale and motivation of the
one that is gradual, incremental and specifically
employees. It can result in the declining productivity,
focussed in its implementation. Revolutionary changes
are the one that is sudden, drastic and organisation wide production and profits.
in its implementation. (iv) Union influence: Despite the implementation
An organisation needs to be effective as it utilizes of policies of liberalisation by many governments, the
its resources in a way that maximizes organisational influence of the union on many organisations in respect
ability to create a value. An effective organisation is of recruitment, service conditions, wage rates etc. is still
the one that secure scarce and valued skills and resources perceptible. The management is desired to make suitable
from outside the organisation. It coordinates creatively changes in response to demands of the union.
with resources and employees skills and efficiently (v) Implementation of new technology: The
converts skills and resources into finished goods and
technological developments in an organisation result
services. There are some factors that help in building
in change of job, production process, and also in the
effective organisation and they are sensitive training,
survey feedback, process consultations, team building, profile of the employee. It results in substantial changes
inter group development innovation. like adding of more computers, automation; and
reengineering programmes in most of the organisations.
TERMINAL QUESTIONS The fast growing technology of broadband and internet
Q. 1. What are the major forces and resistance has its profound impact on the markets of number of
to change? How does organisations should manage organisations. The field of biotechnology has also
the change process? created large numbers of products.
External Forces in loss of loyalty, loss of motivation, increased mistakes,

(i) Competition: The global competition has increased absenteeism etc. When substantial amounts
played vital role in modern-day organisations. It has have already been invested in carrying out the change
resulted in the mergers and acquisitions trends and they in due course of time, differed resistance creates problem
have been increasing year by year. The organisations to the management. The resistance to change may be
have to make suitable changes in response to the introduced by the organisation, the individual or both.
demands from the competition they face in the global Q. 2. What is organisational change? Discuss
market. Organisations should acquire the capacity of the forces influencing the organisational change.
developing new products rapidly and market them Ans. Organisational change can be described as
quickly. These competitive challenges can be faced by the change that takes place in an organisation. These
short production runs, short product cycles by equally changes are aimed at prospering of an organisation. The
flexible and responsive systems. organizational change refers to setting up new
(ii) Economic fluctuations: The economic production methods, producing new products,
fluctuations in the security markets, interest rates, restructuring of organisation, adoption of information
exchange rates etc. continue to impose drastic changes technology and change from public to private ownership
on organisation. and vice-versa.
(iii) Social trends: The changing social trends like Internal Forces
increase in college attendance; delayed marriages by (i) Change in leadership: If there is change in
young couple; economic upliftment of women and leadership of an organisation then this may result in
backward communities etc. are to be considered by change in perceptions, strategies, activities and results.
organisations. These types of changes in social trends
(ii) Change in employee’s profile: There are some
results in fluctuations in the demand for products used
changes in the profiles of employees that are inevitable
by these set of groups.
because of death, retirement, transfer, promotion,
(iv) Global politics: Global politics lay great discharge or resignation. In modern organisations,
emphasis in modern-day organisations and its working. women employment is on the increase and their strength
Global political activities like 9/11 incident, collapse has increased manifold in recent years. In this era of
of Soviet Union, the reunification of Germany, the globalisation, employees are recruited from different
policies of W.T.O., U.S attack on Afghanistan and Iraq national and cultural backgrounds. The human resource
etc. have made their strong impact on the business of
policies and practices have to be re-oriented to suit this
different organisations, where there activities were
type of assorted workforce.
directly related to such developments.
(iii) Change in employee’s morale and
Resistance to change can be described as an
motivation: The changes in leadership, policies and
attitude or behaviour that shows disinclination or
practices may affect the morale and motivation of the
reluctance to approve a particular change. This
employees. It can result in the declining productivity,
resistance is to be overcome for successful change.
production and profits.
There are occasions when resistance to change serves
(iv) Union influence: Despite the implementation
as a feedback to reconsider the proposed change. As a
of policies of liberalisation by many governments, the
result, resistance to change can also be used for the
influence of the union on many organisations in respect
benefit of the organisation. The real meaning of
of recruitment, service conditions, wage rates etc. is still
constructive approach to resistance is to consider
perceptible. The management is desired to make suitable
objections raised and make suitable amendments and
changes in response to demands of the union.
educate the employees about the proposed change.
Resistance can be overt, implicit, immediate and (v) Implementation of new technology: The
differed. technological developments in an organisation result
When the resistance is overt and immediate, the in change of job, production process, and also in the
management can take immediate remedial steps to deal profile of the employee. It results in substantial changes
with such resistance. The implicit resistance may result like adding of more computers, automation; and re-
engineering programmes in most of the organisations. (ii) Change in employee’s profile: There are some
The fast growing technology of broadband and internet changes in the profiles of employees that are inevitable
has its profound impact on the markets of number of because of death, retirement, transfer, promotion,
organisations. The field of biotechnology has also discharge or resignation. In modern organisations,
created large numbers of products. women employment is on the increase and their strength
has increased manifold in recent years. In this era of
External Forces globalisation, employees are recruited from different
(i) Competition: The global competition has national and cultural backgrounds. The human resource
played vital role in modern-day organisations. It has policies and practices have to be re-oriented to suit this
resulted in the mergers and acquisitions trends and they type of assorted workforce.
have been increasing year-by-year. The organisations (iii) Change in employee’s morale and
have to make suitable changes in response to the motivation: The changes in leadership, policies and
demands from the competition they face in the global practices may affect the morale and motivation of the
market. Organisations should acquire the capacity of employees. It can result in the declining productivity,
developing new products rapidly and market them production and profits.
quickly. These competitive challenges can be faced by (iv) Union influence: Despite the implementation
short production runs, short product cycles by equally of policies of liberalisation by many governments, the
flexible and responsive systems. influence of the union on many organisations in respect
of recruitment, service conditions, wage rates etc. is still
(ii) Economic fluctuations: The economic
perceptible. The management is desired to make suitable
fluctuations in the security markets, interest rates,
changes in response to demands of the union.
exchange rates etc continue to impose drastic changes
(v) Implementation of new technology: The
on organisation.
technological developments in an organisation result
(iii) Social trends: The changing social trends like in change of job, production process, and also in the
increase in college attendance; delayed marriages by profile of the employee. It results in substantial changes
young couple; economic upliftment of women and like adding of more computers, automation; and re-
backward communities etc. are to be considered by engineering programmes in most of the organisations.
organisations. These types of changes in social trends The fast growing technology of broadband and internet
results in fluctuations in the demand for products used has its profound impact on the markets of number of
by these set of groups. organisations. The field of biotechnology has also
created large numbers of products.
(iv) Global politics: Global politics lay great
emphasis in modern-day organisations and it working. The external forces of organizational change
Global political activities like 9/11 incident, collapse are:
of Soviet Union, the reunification of Germany, the (i) Competition: The global competition has
policies of W.T.O., U.S attack on Afghanistan and Iraq played vital role in modern-day organisations. It has
etc. have made their strong impact on the business of resulted in the mergers and acquisitions trends and they
different organisations, where there activities were have been increasing year-by-year. The organisations
have to make suitable changes in response to the
directly related to such developments.
demands from the competition they face in the global
Q. 3. Explain in detail the external and internal market. Organisations should acquire the capacity of
forces of organisational change. Which one do you developing new products rapidly and market them
think is more prominent? quickly. These competitive challenges can be faced by
Ans. The internal forces of organizational short production runs, short product cycles by equally
change are: flexible and responsive systems.
(i) Change in leadership: If there is change in (ii) Economic fluctuations: The economic
leadership of an organisation then this may result in fluctuations in the security markets, interest rates,
change in perceptions, strategies, activities and exchange rates etc. continue to impose drastic changes
results. on organisation.
(iii) Social trends: The changing social trends like stabilized. The changes introduced are likely to be
increase in college attendance; delayed marriages by abandoned within a short time or incompletely
young couple; economic upliftment of women and implemented if this stage of refreezing is not done.
backward communities etc. are to be considered by Continuous process model: Lewin’s model is
organisation. These types of changes in social trends considered to be very simple and straightforward as it
results in fluctuations in the demand for products used does not deal with several important issues. As a matter
by these set of groups. of fact, the second model of change process continuous
(iv) Global Politics: Global politics lay great change process model has come into existence and treats
emphasis in modern-day organisations and it working. the change from the perception of the top management.
Global political activities like 9/11 incident, collapse In this approach, the top management perceives that
of Soviet Union, the reunification of Germany, the certain forces or trends call for change and then the
policies of W.T.O., U.S attack on Afghanistan and Iraq issue is referred to organisation’s usual problem solving
etc. have made their strong impact on the business of and decision-making process. The goals to be attained
different organisations, where there activities were after the change are defined by the top management.
directly related to such developments. Thereafter, the proposed alternatives for change are also
Q. 4. What suggestions do you offer for considered and evaluated, and finally an acceptable one
managing organisational change successfully? is selected.
Ans. A successful change process involves three The top management may look out for the
steps they are: assistance of a change agent. A change person is a person
(i) Identifying the need for change; who is responsible for managing the change effort and
(ii) Cultivating a new behaviour or substitute; the person can be a member of the organisation or an
and outsider. An internal change agent is likely to know the
(iii) Feeling comfortable with the new situation. organisation, its people, its tasks, political situations etc.
According to Kurt Lewin, the transformation very well. On contrary, an outsider is likely to view the
process consists of three steps: situation more objectively and independently. From the
(i) Unfreezing the status 940; direction and management perspective of the change
(ii) Movement to a new stage; and agent, the organisation implements the change through
(iii) Refreezing the new change to make it Lewin’s model.
permanent. In this model, the final step is measurement,
Undressing can be described as a process by which evaluation and control. In the course of this process,
people are made to realize the need for change. Factors the top management can determine the effectiveness of
like environmental pressures, declining performance, the change process by evaluating various indicators of
recognition of a problem or availability of a better way organisational productivity or employee’s morale. The
of doing things can increase up the speed up unfreezing employees may take time to even absorb small changes
process. The forces of resistance are to be discouraged but more time and effort may be required for employees
while driving forces of change are to be encouraged. to adapt to complex changes.
The changes that are introduced without undergoing this Transition management can be described as the
process of unfreezing are likely to be unsuccessful due process of systematically planning, organising and
to unawareness and resistance on the part of the implementing change. After the commencement of
employees. The second stage of the process is the change, the organisation is neither in the old state nor
changing or moving stage and it involves taking action in the new state but the businesses will carry on. It
to modify a situation by changing things such as the ensures that business persists and continues while the
people, tasks, structure and technology of the change is occurring. To co-ordinate organisational
organisation. The final stage in the change process is activities with the change agent, the members of the
called re-freezing and this consists of making the new regular management team assume the role of transitional
tasks, technologies, and relations relatively permanent managers. In transition management, communication
and so the introduced changes are thus, re-inforced and about the change is an important step.
Q. 5. What are the important elements to be are defined by the top management. Thereafter, the
targeted for change in an industrial organisation? proposed alternatives for change are also considered
Ans. The change is more often not carried out with and evaluated and finally an acceptable one is selected.
a view to improve the presentation of one or more of The top management may look out for the
the following four elements they are: assistance of a change agent. A change person is a person
(i) Human resources: It includes the most eminent who is responsible for managing the change effort and
feature of an organization. The main success of organi- the person can be a member of the organisation or an
sation depends upon the quality and quantity of workers. outsider. An internal change agent is likely to know the
Therefore, the organisation needs to look for the organisation, its people, its tasks, political situations etc.
effective method to motivate human resources. It needs very well. On contrary, an outsider is likely to view the
to have a proper direction of efforts for the additional situation more objectively and independently. From the
investment to train and develop the activities to enhance direction and management perspective of the change
and implement new skills and abilities by integrating
agent, the organisation implements the change through
workers according to the climate of the organization.
Lewin’s model.
It can be done by changing the various norms and values
of motivation to have multicultural and different In this model, the final step is measurement,
workers. evaluation and control. In the course of this process,
(ii) Functional resources: Every organization has the top management can determine the effectiveness of
to adopt the methods that are helpful in managing the the change process by evaluating various indicators of
basic climate of the organization. It is usually done by organisational productivity or employee’s morale. The
transferring the resources where more potential can be employees may take time to even absorb small changes
gained or acquired to change the structures, culture and but more time and effort may be required for employees
technology of the functioning of the organization. to adapt to complex changes.
(iii) Technological capabilities: It helps to have a Transition management can be described as the
unique and functional means to change and enables to process of systematically planning, organising and
face the market competitions. It helps in developing implementing change. After the commencement of
advanced products to match the increasing technical change, the organisation is neither in the old state nor
changes in the market. It enables to improve the various in the new state but the businesses will carry on. It
production methods to improve the quality of the ensures that business persists and continues while the
products. change is occurring. To co-ordinate organisational
(iv) Organizational abilities: The structure of the activities with the change agent, the members of the
organization and culture enables it to improve its human regular management team assume the role of transitional
and functional resources effectively. The skills and managers. In transition management, communication
abilities of the employees can be enhanced by about the change is an important step.
implementing changes in the production methods. Q. 7. What are the steps to be initiated for
Q. 6. How does Lewin’s three-step model building an effective organisation? Discuss with
explain the process of change? examples.
Ans. Lewin’s model is considered to be very simple Ans. The steps to be initiated for building an
and straightforward as it does not deal with several effective organization are as follows:
important issues. As a matter of fact, the second model
(i) External resource effectiveness: It is a type of
of change process continuous change process model has
effectiveness that correlates the organisations control
come into existence and treats the change from the
over the external environment. It is organisations ability
perception of the top management. In this approach,
to influence the stakeholders’ perceptions in its favour.
the top management perceives that certain forces or
It is also important to receive a positive evaluation by
trends call for change and then the issue is referred to
external stakeholders for the organisations survival. The
organisation’s usual problem solving and decision-
effectiveness of organisations control over the
making process. The goals to be attained after the change
environment can be calculated with the help of
indicators such as stock price, profitability, return on perceive, understand and act upon process events. This
investment etc. It helps shareholders in judging the assists the managers to take corrective steps to develop
control of management over its environment. the condition of the organization.
(ii) Internal systems effectiveness: The (iv) Team building: Modern organisations are
functionality of the organisation helps in judging about progressively more depending upon team to complete
its effectiveness. An organisation should have structure the work of the organization. It helps in utilizing high
and culture that permits adaptability and quick responses communication in group activities to increase faith and
to the changing conditions in the enviro-nment. There honesty among team members. The purpose is to
should be flexibility in the organisation so that it develop the working of members, which will result in
decision-making is faster and also helps in swiftly increased teams performance.
innovating production services. The high degree of (v) Inter group development: It aims to implement
employee’s co-ordination and motivation will be making change in the attitudes and perceptions of different
direct impact on organisations ability to respond to its groups. Every group meets separately to expand lists
environment. its awareness and the awareness of other groups.
Therefore, an attempt is prepared to find out the
(iii) Technical Effectiveness: Technical effective- difference and arrive at the stage of combination.
ness is the extent to organisation converts its skills and
(vi) Innovation: Innovation means to create new
resources into finished goods and services effectively.
idea from the already applied ones in order to improve
It is measured in terms of efficiency and productivity.
the quality and services of the products. Larger the
The examples of technical effectiveness are increase in
innovation the better is the working of the organization
production without increase of cost or reduction per unit
therefore, it should be implemented from time-to-time
cost. Productivity helps in measuring the effectiveness to improve the functional areas of the organization.
of the organisations production operations. The
(vii) Creating a Learning Organisation: It means
productivity and efficiency is also influenced by the
to implement a corrective method in the organisation in
employees attitude and motivation and their desire to
order to develop the continuous capacity. An orga-
cooperate. An organisation can be effective in one area
nisation can be a continuous learner due to the following
but not in others as the overall effectiveness of an reasons:
organisation is guaranteed with the existence of the (a) By establishing a strategy for change,
effectiveness of all the three components-external innovation and continuous improvement;
resources, internal systems and technical matters. The (b) By re-designing the organisation structure to
managers have to take constructive steps in developing facilitate the continuous learning by all the
effectiveness in all these three types of effectiveness. If departments and employees; by re-shaping
organisation fails in any one or more of these areas, the organisations culture to suit the
then it will result in ineffective organisation. continuous learning.
Factors in Building Effective Organisation Q. 8. What is meant by effective organisation?
The following are some of the factors to be Explain the factors influencing the effectiveness of
considered for building effective organisation: an organisation.
(i) Sensitivity training: It is a technique to change Ans. An organisation can be termed as effective
the behaviour in consultation with unorganized organisation that utilises its resources in a way that
interaction of a group. Workers are made to work maximizes the organizations ability to create a value.
together in an independent environment so that they can An organisation can be described effective if it can:
discuss and learn by working and actively participating (i) It can secure scarce and valued skills and
in functioning of the organization. resources from outside the organisation and
this is termed as external resource effe-
(ii) Survey feedback: It includes the use of a
ctiveness.
questionnaire in order to find out the shortcomings (ii) It can resourcefully and creatively co-
between the employees abilities by arranging group ordinate resources with employees’ skills to
meetings and suggesting various methods. innovate products and can adapt to the
(iii) Process consultation: In this method, an changing customer needs. It is termed as
outside advisor is engaged to assist the organisation to internal systems effectiveness.
(iii) It can efficiently convert skills and resources (i) Sensitivity training: It is a technique to change
into finished goods and services. It is termed the behaviour in consultation with unorganized
as technical effectiveness. interaction of a group. Workers are made to work
It is important to consider them in detail and they together in an independent environment so that they can
are as follows: discuss and learn by working and actively participating
(i) External resource effectiveness: It is a type of in functioning of the organization.
effectiveness that correlates the organisations control (ii) Survey feedback: It includes the use of a
over the external environment. It is organisations ability questionnaire in order to find out the shortcomings
to influence the stakeholders’ perceptions in its favour. between the employees abilities by arranging group
It is also important to receive a positive evaluation by meetings and suggesting various methods.
external stakeholders for the organisations survival. The (iii) Process Consultation: In this method, an
effectiveness of organisations control over the outside advisor is engaged to assist the organisation to
environment can be calculated with the help of perceive, understand and act upon process events. This
indicators such as stock price, profitability, return on assists the managers to take corrective steps to develop
investment etc. It helps shareholders in judging the the condition of the organization.
control of management over its environment. (iv) Team building: Modern organisations are
(ii) Internal systems effectiveness: The progressively more depending upon team to complete
functionality of the organisation helps in judging about the work of the organization. It helps in utilizing high
its effectiveness. An organisation should have structure communication in group activities to increase faith and
and culture that permits adaptability and quick responses honesty among team members. The purpose is to
to the changing conditions in the en-vironment. There develop the working of members, which will result in
should be flexibility in the organisation so that its increased teams performance.
decision-making is faster and also helps in swiftly
(v) Inter group development: It aims to implement
innovating production services. The high degree of
change in the attitudes and perceptions of different
employee’s co-ordination and motivation will be making
groups. Every group meets separately to expand lists
direct impact on organisations ability to respond to its
its awareness and the awareness of other groups.
environment.
Therefore, an attempt is prepared to find out the
(iii) Technical effectiveness: Technical Effective- difference and arrive at the stage of combination.
ness is the extent to organisation converts its skills and
resources into finished goods and services effectively. (vi) Innovation: Innovation means to create new
It is measured in terms of efficiency and productivity. idea from the already applied ones in order to improve
The examples of technical effectiveness are increase in the quality and services of the products. Larger the
production without increase of cost or reduction per unit innovation the better is the working of the organization
cost. Productivity helps in measuring the effectiveness therefore, it should be implemented from time to time
of the organisations production operations. The to improve the functional areas of the organization.
productivity and efficiency is also influenced by the (vii) Creating a learning organisation: It means
employees attitude and motivation and their desire to to implement a corrective method in the organisation in
cooperate. An organisation can be effective in one area order to develop the continuous capacity. An or-
but not in others as the overall effectiveness of an ganisation can be a continuous learner due to the
organisation is guaranteed with the existence of the following reasons:
effectiveness of all the three components-external (a) By establishing a strategy for change,
resources, internal systems and technical matters. The innovation and continuous improvement;
managers have to take constructive steps in developing (b) By re-designing the organisation structure to
effectiveness in all these three types of effectiveness. If facilitate the continuous learning by all the
organisation fails in any one or more of these areas, departments and employees; by re-shaping
then it will result in ineffective organisation. the organisations culture to suit the
Factors in Building Effective Organisation continuous learning.
The following are some of the factors to be
considered for building effective organisation: ■■
182
Organizational Development
19
modern approach to management of change for human
INTRODUCTION
resources development.
Organizational development works as important Organisational development concentrates on people
mechanism that helps in impressing the organization dimensions like norms, values, attitudes, relationships
and its employees. It is the systematic process to change etc.
the culture, system and behaviour of organization. It
The characteristics of organisational
includes structural and technological changes. It
development are as follows:
focusses on working relationship of employees with the
(i) It works as educational strategy that attempts
organization. It concentrates on people dimensions like
to bring about planned changes.
norms, values, attitudes, relationships etc. It emphasizes
(ii) Organisational development relates to real
supportive and creative opportunities for growth. The
organisational problems.
process of organizational development comprises of
(iii) Organisational development uses sensitivity
three factors and they are data gathering and
training methods.
organizational diagnosis, actions intervention and
(iv) It is used to describe variety of change
process maintenance. The basic approaches of
programmes and intends to change the
organizational development include techno-structural
organisational philosophies, attitudes and
approach and human process approach. Organizational
skills of people.
development interventions are the set of structured
(v) It is a dynamic process that involves
activities where selected organizational units gets
engaged with task or set of tasks that are related to the considerable investment of money and time.
organizational development. (vi) It is research based activity and aims at
conducting surveys, collection of data and
SUMMARY evaluation of the situation.
(vii) It works on open and adaptive system
Organisational development is the systematic
process to change the culture, system and behaviour of concepts.
organization. It is a process that helps in solving The aims of organisational development can be
organizational problems and achieving organizational achieved by humanising the organizations and
objectives. Organisational development works as encouraging personal growth of individual employees.
significant mechanism that helps in impressing the Its objective primarily includes the following:
organization and its employes through planned and (i) It increases openness of communication
established system. Organisational development within persons of the organisation.
strategies focusses on enhancement of organization (ii) It helps in enhancing commitment, self-
effectiveness and solving organisational problems. direction and self-control.
Organisational development includes structural and (iii) It encourages decision-making for important
technological changes and focusses on working organisational personnel through collaborative
relationships of employees with the organisation. It is efforts.
ORGANIZATIONAL DEVELOPMENT / 183
(iv) It increases the level of trust and mutual Organisational development interventions are the
emotional support among organisational set of structured activities where selected organisational
employees. units gets engaged with task or set of tasks that are either
(v) It helps in developing strategic solutions with directly or indirectly related to the development of the
higher frequency. organisation.
(vi) It encourages people to work as human These interventions can be clubbed into twelve
beings rather than mere resources for the groups and they are diagnostic, team-building, inter-
organisation. group activities, survey feedback methods, education
(vii) It helps in providing opportunities to and training programmes, techno-structural activities,
influence the people, work, environment and process consultation, the management grid, meditation
organisation. and negotiation activities, coaching and counselling and
(viii) It helps in increasing organisational planning and goal setting activities.
effectiveness. There are many factors that help to manage
organisational development process work efficiently.
Organisational development emphasizes supportive
These factors are choosing receptive points, focussing
and creative opportunities for growth. The underlying
on the linkpins, working with autonomous parts, using
values of organisational development form the basis of
and developing internal resources, starting at the top,
organisational development culture in an organisation. working with supportive force, achieving minimum
The process of organisational development is critical concentration, working on perception of
complicated and time-consuming. It comprises of three problems, having multiple point of entry and using
basic factors and they are: proactive attitude.
(i) Data gathering and organisational diagnosis
(ii) Action intervention CHECK YOUR PROGRESS
(iii) Process maintenance. Q. 1. What is Organisational Development?
The process of organisational development Ans. Organisational Development (OD) can be
comprises of following steps: described as the systematic process to change the
(i) Initial diagnosis culture, system and behaviour of organization. It is
(ii) Data collection process that helps in solving organizational problems
(iii) Data feedback and achieving organizational objectives. Organisational
(iv) Selection of interventions development works as important mechanism that helps
(v) Implementation of interventions in impressing the organization and its employee through
(vi) Action planning and problem solving planned and established system. It concentrates on
people dimensions like norms, values, attitudes,
(vii) Team building
relationships, organisational culture etc. The strategies
(viii) Inter-group development
of organisational development focus on enhancement
(ix) Evaluation and follow up.
of organization effectiveness and solving organisational
The basic approaches of organisational problems. It includes structural and technological
development are techno-structural approach and human changes and focusses on working relationships of
processual approaches. Techno-structural approaches employees with the organisation. organisational
relates to theories of intervention into the technology development is the modern approach to management
and the structure of the organisation. They are rooted of change for human resources development.
in the fields of engineering, sociology, psychology, Q. 2. Describe the characteristics of O.D.
economics and open system theory. Ans. The characteristics of Organisational
Human processual approach is focussed on the Development (OD) are as follows:
organisational process as well as on the human (i) Organisational development is an educational
participants. It is through these factors that they achieve strategy that attempts to bring about a planned
their goals as well as organisational goals. change.
(ii) Organisational development relates to real McGregor and emphasizes supportive and
organisational problems instead of creative opportunities for growth. It further
hypothetical cases. emphasizes on providing personal
(iii) Organisational development uses sensitivity responsibility and self-control to the
training methods and lay emphasis on the employees rather than using controls and
significance of experiment based training. punishment. It believes in making an
(iv) Its change agents are almost external individual more independent and auto-
consultants outside of the organisation. nomous.
(v) The external change agents and internal (ii) A new appointed employee needs
organisation executives establish a confirmation and support of other organi-
collaborative relationship that involves sational members. It is important that when
mutual trust, influence and jointly dete- the new employee is appointed then he has
rmined goals. to be taken into confidence and invited to
(vi) The external change agents are humanists work place for discussion on his personal and
and seek to establish a social and altruistic work-related issues in the private meetings.
philosophy within an organisation. (iii) The organisations are benefited by the
(vii) The goals that the change agent seeks to
differences in background, personality and
achieve through Organisational deve-
view points of employees. It is important to
lopment tend to reflect human approach and
accept the contrasts and conflicts of
aims for better conflict resolution, increased
individuals as reality.
understanding and more considerable
(iv) Full range of expression of feelings result in
leadership.
enhancing high motivation, commitment and
(viii) The required changes in the organisation are
creative ability among employees in the
usually the result of some immediate
organisation.
problems but it is a long-term approach
(v) Positive factors like honesty and directness
covering three to five years.
allow people to put their energies together
(ix) It is used to describe variety of change
into the real problems and improve
programmes and intends to change the
organisational philosophies, attitudes and effectiveness.
skills of people. (vi) The executives in the organisation should
(x) It is a dynamic process that involves create and develop cooperation among
considerable investment of money and time. employees for effectiveness and should
(xi) It is research based activity and aims at abstain from wasting human and other
conducting surveys, collection of data and resources.
evaluation of the situation. (vii) The closeness among people can be enhanced
(xii) It works on open and adaptive system by giving attention to process activities at the
concepts and believes that organisational time of assigning activities and also at the later
design and managerial performance are stages.
mutually interdependent. (viii) The containment or suppressing the conflicts
has long run effect on employee morale. It is
Q. 3. Enumerate the underlying values of
important to identify the root cause of the
Organisational development.
problem and then working out it with a
Ans.There are underlying assumptions or values satisfactory solution rather than suppressing
which should be the basis of Organisational the conflict.
development approach. These underlying assumption (ix) The commitment of people can be ensured
or values are for the success of the efforts of through their participation all the way through
Organisational development and there are number of the progress of Organisational development.
such values. They are as follows: (x) Every individual objective is his personal
(i) Organisational development movement growth and it should be directly related with
believes in the assumptions of theory Y of the organisational growth.
The efforts should be directed to implant these to their task performance in team building
underlying values or assumptions as they form the basis activity.Itenhancestruthfulandfearlessdiscussion.During
of Organisational development culture in an or- this exercise, members contribute information
ganisation. thatisconcernedwiththeirindividualperceptionofissues,
Q. 4. How is sensitivity training useful for problems and task relationship. Afterwards,
organisational development interventions? these team members make an agreement for overcoming
Ans. Sensitivity training is also known as laboratory these problems. The basic objective of the meeting is to
training. This type of training is conducted by creating transform the team into a better, effective and efficient
an experimental laboratory situation where employees team.
are brought together to interact in an unstructured Q. 6. How does the third party peace making
environment. It helps in understanding people better and intervention resolve the conflict of the organisation?
develops an understanding of others to develop specific Ans. The Third Party Peace Interventions are based
behavioural skills and helps in gaining insights into the on the thoughts on understanding conflicts and their
group processes. Sensitivity training aims at reducing resolutions at the interpersonal level. This type of
interpersonal friction. Its primary objective is to break intervention smooths the progress of confrontation as a
through the barrier of silence and facilitate verbalization method of resolving the conflicts that arises between
or voice of expression of participants to emphasize on the two parties. These parties are aware of the existence of
process of dialogue rather than on the contents of the the conflicts and want to resolve the issues. The third
training. party as consultant must be skilled in the art of
Sensitivity training aims at brain washing of indivi- diagnosing the conflicts and uses confrontation as a
duals and is not a hidden and manipulation process. This technique. The actual outline that the peace making
type of training is carried out by unstructured groups process takes depends upon the nature and source of
without an agenda, leader and predetermined goals. The the conflict.
group is given complete independence in developing This process focusses on four basic elements of
their own devices, interactions and on going process for conflicts namely:
interaction. Some planned activities may also be in- (i) The conflict issues,
troduced sometimes in the Training Group. (ii) The contributory circumstances,
This type of training may involve role playing, (iii) The conflict related behaviour, and
intergroup competitive exercises, self-insight ques- (iv) The results of the conflict.
tionnaires, lectures and audio visual aids. It provides a Q. 7. Enumerate the approaches of job design.
mechanism for personal learning and development. Ans. Job design is also know as Job re-design is a
Q. 5. How is team building useful for organis- task-technology related approach that aims at making
ational development interventions? changes in the work process of the groups of the
Ans. Team building can be described as an attempt employees. It involves a well planned re-organisation
to assist the work group to identify, diagnose and solve of a job and focuses to improve employee motivation,
its own problems. Groups develop their own norms of commitment, performance, job satisfaction etc.
behaviour that influence individual and group There are different approaches to job design and
behaviour. Organisation development considers work they are as follows:
groups as team that are turning points of introducing (i) Job enrichment: Job enrichment can be termed
change. The concept of team building makes efforts to as the vertical enrichment or addition of tasks to make
effect the improvements in teams operating in an job richer. This type of enrichment includes giving
organization like permanent work teams, task forces, additional responsibilities and expecting more
committees etc. The activities of team building focus on accountability from the employees.
diagnosis, task achievement, team relationships and or- (ii) Job engineering: Job engineering is related to
ganisational process. The external consultant, the the tasks, methods, performance standards, inter-
group leader and the members of the group can be de- dependence of man and machine, work flows etc. It may
scribedastheconstituentpartiesinteambuildingac-tivity. also include replacement of human workers for
The members gather and discuss problems that are related computers.
(iii) Job rotation: Job rotation involves shifting (ii) Organisational development deals with the
of a person from one job to another job to perform organisational problems instead of
variety of tasks. Job rotation helps in reducing boredom hypothetical cases.
and monotony. (iii) Organisational development emphasis on the
significance of experiment based training by
(iv) Job enlargement: Job enlargement includes
using practical methods to resolve them.
expansion of tasks that are to be carried out. This type
(iv) The agents are almost external consultants
of expansion focusses on the horizontal expansion of therefore the work is accomplished smoothly
related tasks without the additional responsibility and and effectively.
accountability. (v) It enables to establish a collaborative
(v) Socio-technical system: Socio-technical relationship that involves mutual trust,
system aims to strike a balance between the technical influence and jointly determined goals.
and social aspects of an organisation. The basic aim of (vi) It helps in establishing a social and altruistic
this system is to optimize the relationships and enhance philosophy within an organisation.
(vii) It aims for better conflict resolution,
or-ganisational effectiveness. This system normally
increased understanding and more
involves a major re-design of the whole range of the
considerable leadership.
ways the jobs are carried out involving social and (viii) It enables to have a long-term approach
technological issues. covering three to five years.
(ix) It intends to change the organisational
TERMINAL QUESTIONS philosophies, attitudes and skills of people.
Q. 1. What do you understand by (x) It involves considerable investment of money
Organisational development? Explain the objectives and time.
and underlying values of Organisational (xi) It aims at conducting surveys, collection of
data and evaluation of the situation.
development.
There are underlying assumptions or values which
Ans. Organisational development can be described
should be the basis of Organisational development
as the systematic process to change the culture, system approach. These underlying assumption or values are
and behaviour of organization. It is process that helps for the success of the efforts of Organisational
in solving organizational problems and achieving development and there are number of such values. They
organizational objectives. Organisational development are as follows:
works as important mechanism that helps in impressing (i) Organisational development movement
the organization and its employee through planned and believes in the assumptions of theory Y of
established system. It concentrates on people McGregor and emphasizes supportive and
dimensions like norms, values, attitudes, relationships, creative opportunities for growth. It further
organisational culture etc. The strategies of or- emphasizes on providing personal
responsibility and self-control to the
ganisational development focus on enhancement of
employees rather than using controls and
organization effectiveness and solving organisational
punishment. It believes in making an
problems. It includes structural and technological individual more independent and auto-
changes and focusses on working relationships of nomous.
employees with the organisation. Organisational (ii) A new appointed employee needs co-
development is the modern approach to management nfirmation and support of other or-
of change for human resources development. ganisational members. It is important that
The objectives of organizational development are: when the new employee is appointed then
(i) Organisational development enables to he has to be taken into confidence and invited
to work place for discussion on his personal
increase the communication among the
and work-related issues in the private
subordinates.
meetings.
(iii) The organisations are benefitted by the (vi) Action planning and problem solving
differences in background, personality and (vii) Team building
view points of employees. It is important to (viii) Inter-group development
accept the contrasts and conflicts of (ix) Evaluation and follow up.
individuals as reality. (i) Initial diagnosis: The initial diagnosis refers to
(iv) Full range of expression of feelings result in finding the inadequacies within the organisation that
enhancing high motivation, commitment and can be corrected by Organisational development
creative ability among employees in the activities then it is necessary to find out the
organisation. professionally competent persons within organisation
(v) Positive factors like honesty and directness to plan and execute Organisational development
allow people to put their energies together activities. The outside consultants can be also employed
into the real problems and improve to help in diagnosing the problems and diagnosing
effectiveness. Organisational development activities. The consultants
(vi) The executives in the organisation should adopt various methods and that primarily includes
create and develop cooperation among interviews, questionnaires, direct observation, analysis
employees for effectiveness and should of documents and reports for diagnosing the problem.
abstain from wasting human and other (ii) Data collection: The survey method is
resources. employed to collect the data for determining
(vii) The closeness among people can be organizational climate. It also helps in identifying the
enhanced by giving attention to process behavioural problems that are rising in the organisation.
activities at the time of assigning activities
(iii) Data feedback: The collected data are
and also at the later stages.
analyzed and reviewed by various work groups that are
(viii) The containment or suppressing the conflicts
formed for this purpose. It is done in order to intervene
has long run effect on employee morale. It is
in the areas of disagreement or confrontation of ideas
important to identify the root cause of the
or opinions.
problem and then working out it with a
satisfactory solution rather than suppressing (iv) Selection of interventions: The interventions
the conflict. can be described as the planned activities that are
(ix) The commitment of people can be ensured introduced into the system to achieve desired changes
through their participation all the way and improvements. The suitable interventions are to be
through the progress of Organisational selected and designed at this stage.
development. (v) Implementation of interventions: The selected
(x) Every individual objective is his personal intervention should be implemented progressively as
growth and it should be directly related with the process is not a one shot, quick cure for orga-
the organisational growth. nisational problems. Consequently, it achieves real and
The efforts should be directed to implant these lasting change in the attitudes and behaviour of
underlying values or assumptions as they form the basis employees.
of Organisational development culture in an (vi) Action planning and problem solving: To
organisation. solve the specific and identified problems by using the
Q. 2. Discuss the process of Organisational collected data, groups prepare recommendation and
development. specific action planning.
Ans. The process of organisational development (vii) Team building: The consultants explain the
comprises of following steps: advantages of the teams in Organisational development
(i) Initial diagnosis process and encourage the employees throughout the
(ii) Data collection process to form into groups and teams.
(iii) Data feedback (viii) Inter-group development: After the
(iv) Selection of interventions formation of groups/teams, the consultants encourage
(v) Implementation of interventions the inter-group meetings, interaction etc.
(ix) Evaluation and follow up: The organisation (iii) Team building: Team building is an attempt
should evaluate the Organisational development to assist the work group to identify, diagnose and solve
programmes and should find out their utility, and its own problems. Actually groups develop their own
develop the programmes further for correcting the norms of behaviour which pressurize the persons and
deviations. The consultants make great significance to group behaviour. Organisation is a system to
the organisation in this respect. The entire steps in the interconnect with groups. Organisational Development
Organisational development processes should be considers that work groups are the teams which are
followed by the organisation in order to derive full range spinning around to introduce changes in the
of Organisational development benefits. organization. Team building actions are taken to develop
Q. 3. Elaborate the desired Organisational a range of groups in an organization like permanent work
development interventions focussing upon people. teams, task forces, committees etc. Team building
Ans. Organisational development interventions are actions focus on finding, task achievement, team
the set of structured activities where selected or- relationships and organisational process. The
ganisational units gets engaged with task or set of tasks component groups in team building activity are: the
that are either directly or indirectly related to the external advisors, the group leader and the members of
development of the organisation. the group.
These interventions can be clubbed into twelve In team building movement, associates meet and
groups and they are diagnostic, team-building, inter- talk about troubles connecting to their course work It
group activities, survey feedback methods, education obtain sincere and courageous argument. In the team
and training programmes, techno-structural activities, building movements, the associate adds the sequence
process consultation, the management grid, meditation relating to their personal observation of issues, problems
and negotiation activities, coaching and counselling and and task relationship.
planning and goal setting activities. (iv) Sensitivity training: It is known as training
(i) Survey feedback: It recounts to an approach being carried out by creating an experimental laboratory
survey through well planned assessment or interviews. circumstances where workers will be brought together
It covers the feedback to the customer organisation. It to do something together in a formless environment.
has a demand and significance in a genuine situation. Sensitivity training helps in understanding people well
The attitude survey can have a purpose to measure the again, to develop appreciation for others, to develop
process; for instance, communication, decision-making specific behavioural skills and to gain effective approach
and leadership at different levels. The data produced into the group development. It also aims at falling
under this system is perceptual and attitudinal. A review interpersonal confrontation.
of the product is prepared in a group discussion. The main aim of sensitivity training is to split all
Generally, feedback of results is specific to the group the methods through the bond of silence and ease the
which prepares the data. As a result strategies are expression of associates to emphasize on the process of
planned to resolve the organisational problems. debate to a certain extent than to fulfil the instructions.
Consequently, the process of survey feedback includes: It is a method which proposes to have brain washing
collection of data, feedback, development of action plan of persons. This training is accepted by formless groups
and follow-up. Therefore, to ensure authentic results without any agenda, leader and pre-determined goals.
the survey should be applicable and dependable. The group is given independence to expand their plans,
(ii) Management grid: The method urbanised by contacts and on going process for interaction. Sensitivity
Robert Blake and Jane S. Mouton is a step to move training gives a technique to enable special knowledge
toward. This grid represents a rational support of and development.
managing people. Growth of management skills from (v) Four system management: Rensis Likert’s
beginning to end grid programme involves wide range Four System Management has given four stages to
of included and instrumented activities are the ways represent the organizational values to include the
having investigational and planned conditions. The essential collection of job bearing and people way.
members are secondary to be pleased about the advances According to Likert, management philosophy can
to integrate people and their invention. be classified into four systems they are:
(a) Exploitative-Autocratic System different orientations related to the tasks they perform.
(b) Benevolent Autocratic System Genuinely, the organisational units in their regular
(c) Consultative Democratic System, and operations they are differentiated along with their
(d) Participative Democratic System. direction. It appears that with the task discrimination
This theory explains that three basic concepts of coordination is not possible. According to contingency
system has four management which will help making approach separation and combination are possible for
the organization effective they are: total organisation’s effectiveness with the help of
(a) To use the principle of supportive relation-
integrative devices. To sum up, high organisational
ship in the organisation;
presentation is well-suited with the existence of both
(b) To use the group decision making and group
methods of supervision in the organisation, separation as well as combination which are required
and as per the stress of their immediate environment. The
(c) To emphasize more on the high performance contingency approach can be useful as an Organi-
goals. sational Development intervention in industrial
(vi) Management by objectives (MBO): It is organizations in the form of inter-group argument
another important tool of Organisational Development meetings of concerned departmental persons.
and involves the process of educating the concerned (ix) Role analysis: In the presentation of their
persons about M.B.O, agreement upon clear cut individual roles persons manifest certain behaviour
quantifiable objectives, evaluation of objectives and which may upset team efficiency. At times it is
feedback for deviation and coercive action. M.B.O is established that the persons are unambiguous about their
wide-ranging overall managerial philosophies that own expected behaviour from the view point of other
focuses upon joint goal setting and synthesize the members of the team. In these circumstances the role
individual’s goal to organisational goals. The entire analysis procedure is used to clarify the role expectations
organization will have the feeling of unity as all levels and obligations of the members of a team. The ensuing
of management of an organization are involved in goal role requirements and the expected behavioural
setting. The programmes relating to M.B.O can be mechanism of each other help the member enjoy an
effective if they are properly implemented and needs equally acceptable behaviour in the team work. In this
the support of the top management. technique, the individual role players analyze the focal
(vii) Process consultation: It can be described as role of the individuals.
the set of activities on the part of the consultant that (x) Inter-group activity: Meager interpersonal
helps the client to perceive, understand and act upon relations are not unusual features in organisational
the process events that take place in the client’s performance. Under these circumstances, inter-group
environment. Process consultation concentrates on the motion spotlights to improve the relationships between
analysis of process of activities like communication, the groups. It helps in the interaction and
leadership etc. It also aims to attempts to develop initial communication between the work groups which
contacts, define relationships, selecting the method of eventually avoids dysfunctional inimical competiti-
work, collection of data and diagnosis. Process veness among them. Inter-group team building entails
consultation is a method of intervening in an on-going the procedure of discrimination and combination.
system and is designed to change attitudes, values, (xi) Organisation mirroring: It monitors the
interpersonal skills, group norms, cohesiveness and activities of group of members and gets the feedback
other process variables. from the members of several other groups about how is
(viii) Contingency approach: This approach was it being professed. Organisational mirroring is used
given by P. Lawrence and J. Lorseh. It is based on when there is complexity with other department in the
the principle that an organisation is a multi-faceted social organisation. A meeting is called and response is sought
system. Its behaviour must be included into a united from other department. During the meeting the correct
effort to enable it to cope with the environment. picture emerges which will determine many mistakes
Theoretically, individuals in different departments have committed between two groups.
(xii) Third Party peace making intervention: process consultation, the management grid, meditation
This intervention is the foundation of the thoughts to and negotiation activities, coaching and counselling and
understand the conflicts and their resolutions at the planning and goal setting activities.
interpersonal level. It helps to confront the method of (i) Survey feedback: It recounts to an approach
resolving the conflicts takes place between two parties survey through well planned assessment or interviews.
who are aware of the existence of the conflicts and want It covers the feedback to the customer organisation. It
to confront the issues. The advisor as a third party must has a demand and significance in a genuine situation.
be accomplished in the art of identifies the conflicts The attitude survey can have a purpose to measure the
and use confrontation as technique. process; for instance, communication, decision-making
This process focusses on four basic elements of and leadership at different levels. The data produced
conflicts they are: under this system is perceptual and attitudinal. A review
(a) The conflict issues, of the product is prepared in a group discussion.
Generally, feedback of results is specific to the group
(b) The contributory circumstances,
which prepares the data. As a result strategies are
(c) The conflict related behaviour, and
planned to resolve the organisational problems.
(d) The results of the conflict.
Consequently, the process of survey feedback includes:
(xiii) Job design/redesign: It is task-technology collection of data, feedback, development of action plan
connected approach and aims at making changes in the and follow-up. Therefore, to ensure authentic results,
work procedure of the groups of employees. Job design the survey should be applicable and dependable.
occupies a well planned re-organization of a job. On
(ii) Management grid: The method urbanized by
the whole it focusses to develop worker’s motivation,
Robert Blake and Jane S. Mouton is a step to move
commitment, performance, job satisfaction etc., through
job enrichment, job engineering, job rotation, job toward. This grid represents a rational support of
enlargement and socio-technical system. managing people. Growth of management skills from
beginning to end grid programme involves wide range
(xiv) Quality circles: Quality circles are semi-
of included and instrumented activities are the ways
autonomous work groups with six persons who
having investigational and planned conditions. The
volunteer to talk about and solve feature related
problems during working hours. It has impact on members are secondary to be pleased about the advances
working conditions, employee’s commitment and self- to integrate people and their invention.
development of employees. (iii) Team building: Team building is an attempt
(xv) Counselling: Counselling is the method to to assist the work group to identify, diagnose and solve
extend the help by a manager to his assistant to enhance its own problems. Actually groups develop their own
his prospective. It plans at hypothesizing and empathize norms of behaviour which pressurize the persons and
with the workers. It assists to bring about self group behaviour. Organisation is a system to
consciousness in the worker about his capability. Single interconnect with groups. Organisational Development
or group of interventions may be used to resolve the considers that work groups are the teams which are
issues. spinning around to introduce changes in the
Q. 4. Identify task-structure related Organi- organization. Team-building actions are taken to develop
sational Development interventions. a range of groups in an organization like permanent work
Ans. Organisational development interventions are teams, task forces, committees etc. Team building
the set of structured activities where selected actions focus on finding, task achievement, team
organisational units gets engaged with task or set of tasks relationships and organisational process. The co-
that are either directly or indirectly related to the mponent groups in team building activity are: the
development of the organisation. external advisors, the group leader and the members of
These interventions can be clubbed into twelve the group.
groups and they are diagnostic, team-building, inter- In team building movement, associates meet and
group activities, survey feedback methods, education talk about troubles connecting to their course work It
and training programmes, techno-structural activities, obtain sincere and courageous argument. In the team
building movements, the associate adds the sequence quantifiable objectives, evaluation of objectives and
relating to their personal observation of issues, problems feedback for deviation and coercive action. M.B.O is
and task relationship. wide-ranging overall managerial philosophies that
(iv) Sensitivity training: It is known as training focuses upon joint goal setting and synthesize the
being carried out by creating an experimental laboratory individual’s goal to organisational goals. The entire
circumstances where workers will be brought together organization will have the feeling of unity as all levels
to do something together in a formless environment. of management of an organization are involved in goal
Sensitivity training helps in understanding people well setting. The programmes relating to M.B.O can be
again, to develop appreciation for others, to develop effective if they are properly implemented and needs
specific behavioural skills and to gain effective approach the support of the top management.
into the group development. It also aims at falling (vii) Process consultation: It can be described as
interpersonal confrontation. the set of activities on the part of the consultant that
The main aim of sensitivity training is to split all helps the client to perceive, understand and act upon
the methods through the bond of silence and ease the the process events that take place in the client’s
expression of associates to emphasize on the process of environment. Process consultation concentrates on the
debate to a certain extent than to fulfil the in-structions. analysis of process of activities like communication,
It is a method which proposes to have brain washing leadership etc. It also aims to attempts to develop initial
of persons. This training is accepted by formless groups contacts, define relationships, selecting the method of
without any agenda, leader and pre-determined goals. work, collection of data and diagnosis. Process
The group is given independence to expand their plans, consultation is a method of intervening in an on-going
contacts and on going process for interaction. Sensitivity system and is designed to change attitudes, values,
training gives a technique to enable special knowledge interpersonal skills, group norms, cohesiveness and
and development. other process variables.
(v) Four system management: Rensis Likert’s (viii) Contingency approach: This approach was
Four System Management has given four stages to given by P. Lawrence and J. Lorseh. It is based on
represent the organizational values to include the the principle that an organisation is a multi-faceted social
essential collection of job bearing and people way. system. Its behaviour must be included into a united
effort to enable it to cope with the environment.
According to Likert, management philosophy can
Theoretically, individuals in different departments
be classified into four systems they are:
have different orientations related to the tasks they
(a) Exploitative-Autocratic System
perform. Genuinely, the organisational units in their
(b) Benevolent Autocratic System
regular operations they are differentiated along with their
(c) Consultative Democratic System, and
(d) Participative Democratic System. direction. It appears that with the task dis-crimination
coordination is not possible. According to contingency
This theory explains that three basic concepts of
approach separation and combination are possible for
system has four management which will help making
total organisation’s effectiveness with the help of
the organization effective they are:
integrative devices. To sum up, high organisational
(a) To use the principle of supportive rela-
presentation is well-suited with the existence of both
tionship in the organisation;
separation as well as combination which are required
(b) To use the group decision-making and group
methods of supervision in the organisation; as per the stress of their immediate environment. The
and contingency approach can be useful as an
(c) To emphasize more on the high performance Organisational Development intervention in industrial
goals. organizations in the form of inter-group argument
meetings of concerned departmental persons.
(vi) Management by objectives (MBO): It is
another important tool of Organisational Development (ix) Role analysis: In the presentation of their
and involves the process of educating the concerned individual roles persons manifest certain behaviour
persons about M.B.O, agreement upon clear cut which may upset team efficiency. At times it is
established that the persons are unambiguous about their commitment, performance, job satisfaction etc., through
own expected behaviour from the view point of other job enrichment, job engineering, job rotation, job
members of the team. In these circumstances the role enlargement and socio-technical system.
analysis procedure is used to clarify the role expectations (xiv) Quality circles: Quality circles are semi-
and obligations of the members of a team. The ensuing autonomous work groups with six persons who
role requirements and the expected behavioural volunteer to talk about and solve feature related
mechanism of each other help the member enjoy an problems during working hours. It has impact on
equally acceptable behaviour in the team work. In this working conditions, employee’s commitment and self
technique, the individual role players analyze the focal development of employees.
role of the individuals. (xv) Counselling: Counselling is the method to
(x) Inter-group activity: Meager interpersonal extend the help by a manager to his assistant to enhance
relations are not unusual features in organisational his prospective. It plans at hypothesizing and empathize
performance. Under these circumstances, inter-group with the workers. It assists to bring about self-
motion spotlights to improve the relationships between consciousness in the worker about his capability. Single
the groups. It helps in the interaction and communication or group of interventions may be used to resolve the
between the work groups which eventually avoids issues.
dysfunctional inimical competitiveness among them. Inter- Q. 5. Identify the organisational problems and
group team building entails the procedure of suggest suitable Organisational Development
discrimination and combination. intervention to resolve them.
(xi) Organisation mirroring: It monitors the Ans. Organisational development interventions are
activities of group of members and gets the feedback the set of structured activities where selected
from the members of several other groups about how is organisational units gets engaged with task or set of tasks
it being professed. Organisational mirroring is used that are either directly or indirectly related to the
when there is complexity with other department in the development of the organisation.
organisation. A meeting is called and response is sought These interventions can be clubbed into twelve
from other department. During the meeting the correct groups and they are diagnostic, team-building, inter-
picture emerges which will determine many mistakes group activities, survey feedback methods, education
committed between two groups. and training programmes, techno-structural activities,
(xii) Third party peace making intervention: process consultation, the management grid, meditation
This intervention is the foundation of the thoughts to and negotiation activities, coaching, counselling,
understand the conflicts and their resolutions at the planning and goal setting activities.
interpersonal level. It helps to confront the method of
(i) Survey feedback: It recounts to an approach
resolving the conflicts takes place between two parties
survey through well planned assessment or interviews.
who are aware of the existence of the conflicts and want
to confront the issues. The advisor as a third party must It covers the feedback to the customer organisation. It
be accomplished in the art of identifies the conflicts has a demand and significance in a genuine situation.
and use confrontation as technique. The attitude survey can have a purpose to measure the
process; for instance, communication, decision-making
This process focusses on four basic elements of
conflicts they are: and leadership at different levels. The data produced
(a) The conflict issues, under this system is perceptual and attitudinal. A review
(b) The contributory circumstances, of the product is prepared in a group discussion.
(c) The conflict related behaviour, and Generally, feedback of results is specific to the group
(d) The results of the conflict. which prepares the data. As a result strategies are
(xiii) Job design/redesign : It is task-technology planned to resolve the organisational problems.
connected approach and aims at making changes in the Consequently, the process of survey feed back includes:
work procedure of the groups of employees. Job design collection of data, feedback, development of action plan
occupies a well planned re-organization of a job. On and follow-up. Therefore, to ensure authentic results,
the whole it focusses to develop worker’s motivation, the survey should be applicable and dependable.
(ii) Management grid: The method urbanized by It is a method which proposes to have brain washing
Robert Blake and Jane S. Mouton is a step to move of persons. This training is accepted by formless groups
toward. This grid represents a rational support of without any agenda, leader and pre-determined goals.
managing people. Growth of management skills from The group is given independence to expand their plans,
beginning to end grid programme involves wide range contacts and on going process for interaction. Sensitivity
of included and instrumented activities are the ways training gives a technique to enable special knowledge
having investigational and planned conditions. The and development.
members are secondary to be pleased about the advances (v) Four system management: Rensis Likert’s
to integrate people and their invention. Four System Management has given four stages to
(iii) Team building: Team building is an attempt represent the organizational values to include the
to assist the work group to identify, diagnose and solve essential collection of job bearing and people way.
its own problems. Actually groups develop their own According to Likert, management philosophy can
norms of behaviour which pressurize the persons and be classified into four systems they are:
group behaviour. Organisation is a system to (i) Exploitative-Autocratic System
interconnect with groups. Organisational Development (ii) Benevolent Autocratic System
considers that work groups are the teams which are (iii) Consultative Democratic System, and
spinning around to introduce changes in the (iv) Participative Democratic System.
organization. Team building actions are taken to develop This theory explains that three basic concepts of
a range of groups in an organization like permanent work system has four management which will help making
teams, task forces, committees etc. Team building the organization effective they are:
actions focus on finding, task achievement, team (a) To use the principle of supportive relationship
relationships and organisational process. The in the Organisational Development
component groups in team building activity are: the (b) To use the group decision making and group
external advisors, the group leader and the members of methods of supervision in the organisation,
the group. and
In team building movement, associates meet and (c) To emphasize more on the high performance
talk about troubles connecting to their coursework. It goals.
obtain sincere and courageous argument. In the team (vi) Management by objectives (MBO): It is
building movements, the associate adds the sequence another important tool of Organisational Development
relating to their personal observation of issues, problems and involves the process of educating the concerned
and task relationship. persons about M.B.O, agreement upon clear cut
(iv) Sensitivity training: It is known as training quantifiable objectives, evaluation of objectives and
being carried out by creating an experimental laboratory feedback for deviation and coercive action. M.B.O is
circumstances where workers will be brought together wide-ranging overall managerial philosophies that
to do something together in a formless environment. focuses upon joint goal setting and synthesize the
Sensitivity training helps in understanding people well individual’s goal to organisational goals. The entire
again, to develop appreciation for others, to develop organization will have the feeling of unity as all levels
specific behavioural skills and to gain effective approach of management of an organization are involved in goal
into the group development. It also aims at falling setting. The programmes relating to M.B.O can be
interpersonal confrontation. effective if they are properly implemented and needs
The main aim of sensitivity training is to split all the support of the top management.
the methods through the bond of silence and ease the (vii) Process consultation: It can be described as
expression of associates to emphasize on the process of the set of activities on the part of the consultant that
debate to a certain extent than to fulfil the instructions. helps the client to perceive, understand and act upon
the process events that take place in the client’s (x) Inter-group activity: Meager interpersonal
environment. Process consultation concentrates on the relations are not unusual features in organisational
analysis of process of activities like communication, performance. Under these circumstances, inter-group
leadership etc. It also aims to attempts to develop initial motion spotlights to improve the relationships between
contacts, define relationships, selecting the method of the groups. It helps in the interaction and communication
work, collection of data and diagnosis. Process between the work groups which eventually avoids
consultation is a method of intervening in an on-going dysfunctional inimical competitiveness among them. Inter-
system and is designed to change attitudes, values, group team building entails the procedure of
interpersonal skills, group norms, cohesiveness and discrimination and combination.
other process variables. (xi) Organisation mirroring: It monitors the
(viii) Contingency approach: This approach was activities of group of members and gets the feedback
given by P. Lawrence and J. Lorseh. It is based on from the members of several other groups about how is
the principle that an organisation is a multifaceted social it being professed. Organisational mirroring is used
system. Its behaviour must be included into a united when there is complexity with other department in the
effort to enable it to cope with the environment. organisation. A meeting is called and response is sought
Theoretically, individuals in different departments from other department. During the meeting the correct
have different orientations related to the tasks they picture emerges which will determine many mistakes
perform. Genuinely, the organisational units in their committed between two groups.
regular operations they are differentiated along with their (xii) Third party peace making intervention:
direction. It appears that with the task discrimination This intervention is the foundation of the thoughts to
coordination is not possible. According to contingency understand the conflicts and their resolutions at the
approach separation and combination are possible for interpersonal level. It helps to confront the method of
total organisation’s effectiveness with the help of resolving the conflicts takes place between two parties
integrative devices. To sum up, high organisational who are aware of the existence of the conflicts and want
presentation is well-suited with the existence of both to confront the issues. The advisor as a third party must
separation as well as combination which are required be accomplished in the art of identifies the conflicts
as per the stress of their immediate environment. The and use confrontation as technique.
contingency approach can be useful as an Organisational This process focuses on four basic elements of
Development intervention in industrial organizations in conflicts they are:
the form of inter-group argument meetings of concerned (a) The conflict issues,
departmental persons. (b) The contributory circumstances,
(ix) Role analysis: In the presentation of their (c) The conflict related behaviour, and
individual roles persons manifest certain behaviour (d) The results of the conflict.
which may upset team efficiency. At times it is (xiii) Job design/redesign: It is task-technology
established that the persons are unambiguous about their connected approach and aims at making changes in the
own expected behaviour from the view point of other work procedure of the groups of employees. Job design
members of the team. In these circumstances the role occupies a well planned re-organization of a job. On
analysis procedure is used to clarify the role expectations the whole it focusses to develop worker’s motivation,
and obligations of the members of a team. The ensuing commitment, performance, job satisfaction etc., through
role requirements and the expected behavioural job enrichment, job engineering, job rotation, job
mechanism of each other help the member enjoy an enlargement and socio-technical system.
equally acceptable behaviour in the team work. In this
(xiv) Quality circles: Quality circles are semi-
technique, the individual role players analyze the focal
autonomous work groups with six persons who
role of the individuals.
volunteer to talk about and solve feature related
problems during working hours. It has impact on (viii) Organisational Development efforts should
working conditions, employee’s commitment and self- emphasize and focuses on the organisation
development of employees. with full totality.
(xv) Counselling: Counselling is the method to (ix) There should be long range of perspectives
extend the help by a manager to his assistant to enhance of the organisation for its improvement.
his prospective. It plans at hypothesizing and empathize Q. 7. Give the tips for managing Organisational
with the workers. It assists to bring about self Development process effectively.
consciousness in the worker about his capability. Single Ans. There are three basic factors that influence
or group of interventions may be used to resolve the the choice of an Organisational Development
issues. intervention and these factors are applicability,
Q. 6. Discuss the prerequisite conditions for feasibility and acceptability. applicability refers to the
effective Organisational Development programme. potential of an intervention to yield the desired results.
Ans. The prerequisite conditions should be Feasibility refers to the practicality of an intervention
understood and established for organisational in a given situation while acceptability refers to the
improvement for success of an Organisational chances of acceptance of an intervention in the client
Development effort. The prerequisite conditions for organisation. The actual choice of an intervention is
effective Organisational Development programme are based upon the perceptive decision taken by the
as follows: Organisational Development consultant.
(i) The important or key persons in the A practical approach is to be expected to ensure
organisation should have clear perception successful implementation of Organisational Develop-
about the organisational problems. ment efforts in an organisation. On contrary, if it is hap-
(ii) To initiate Organisational Development hazardly planned, it may also create disorder in an
efforts, the external behavioural science organisation.
Organisational Development consultant As a result, the following tips are structured to
should be hired. manage the Organisational Development process
(iii) The top level management should whole effectively.
heartedly posses and performs any effort that (i) Choosing receptive points: The areas or
is meant for Organisational Development departments of the organisation where the people want
efforts. change for improvement should be undertaken for
(iv) The complete work team along with the Organisational Development experiment.
group leader and the manager must Organisational Development efforts should be
participate in the Organisational concentrated on these areas or departments. Afterwards,
Development exercises for the successful this process can be moved to other units of the
intervention. organisation.
(v) There has to be full support for entire
(ii) Focussing on the linkpins: The departments
diagnostic activities to collect data about
that have interlinks should be identified to select the
organisational activities.
people. The assurance and self-belief of these linkpins
(vi) Organisational Development efforts should
will help to form a team for Organisational Development
be made identified with all concerned
experimentation.
persons in the organisation for sustaining the
changes. (iii) Working with autonomous parts: The
(vii) There must be inter-connection to all sub- indepen-dent units or departments that have least linkage
systems of an organisation like potential with other departments have to be chosen to minimize
appraisal, career planning, reward system etc. the cost of disturbances.
(iv) Using and developing internal resources: are suitably chosen for use in implementation stage of
The developing and using of internal resources will help the Organisational Development process. Lastly, process
to continue and sustain the Organisational Development maintenance is a management component that
efforts. guarantees the on-going progress to take advantage of
(v) Starting at the top: It is desired to start the the Organisational Development benefits in future.
Organisational Development efforts at the top as there There are various steps of Organisational
is need of support from the top management. It will Development process but the typical process consists
ensure support and commitment. of the following steps:
(vi) Working with supportive force: The (i) Initial diagnosis: The initial diagnosis relates
consultant must identify the roles of enthusiastic to find the inadequacy in the organisation that can be
individuals in the organisation who are excited about acceptable by Organisational Development activities
affecting a change. then it is essential to find out the professionally capable
(vii) Achieving minimum critical concentration: people within organisation to plan and execute
It should not get in the way of the culture of the unit to Organisational Development activities. The outside
a great extent and with the minimum efforts advisor can be also employed to diagnose the problems
Organisational Development activity should be and diagnosing Organisational Development activities.
continued. The consultants uses a variety of methods and that
(viii) Working on perception of problems: The mainly includes interviews, questionnaires, direct
client should be encouraged and aided to identify the observation, analysis of documents and reports for
real problems. diagnosing the problem.
(ix) Having multiple points of entry: After (ii) Data collection: The survey method is engaged
starting off at the receptive points, Organisational to collect the data for formulate the organizational
Development efforts should be gradually extended to climate. It also assists to recognize the behavioural
interrelated points where related problems can be solved problems of the organisation.
in total. (iii) Data feedback: The collected data is analyzed
(x) Using proactive attitude: The proactive or and reviewed by a variety of work groups that are formed
practical attitude of the consultant will bring openness for this intention. It is done in order to mediate in the
and sincerity in resolving the issues. region of disagreement or confrontation of ideas.
Q. 8. Describe the process of Organisational (iv) Selection of interventions: The interventions
Development. can be used for portraying the planned activities that
Ans. Organisational Development process is are initiated in the system to achieve desired changes
defined as the way Organisational Development efforts and improvements. The suitable interventions are to be
works for a particular purpose. The procedure of chosen and calculated at this stage.
Organisational Development is complex and requires (v) Implementation of interventions: The selected
long time for its conclusion. Organisational intervention should be implemented increasingly as the
Development process is self-possessed with. procedure is not a quick cure for organisational
(a) Data gathering and organisational diagnosis problems. As a result, it achieves real and lasting change
(b) Action intervention in the attitudes and behaviour of employees.
(c) Process maintenance. (vi) Action planning and problem solving: This
Data collection and analysis are measured to be action is taken to resolve the exact and recognized
broad job in the Organisational Development process. problems by using the collected data, groups prepare
It engages data collection that is related to a problem recommendations and specific action planning.
area. The method used is action interventions which
(vii) Team building: The consultant gives details programmes and should find out their usefulness and
of the advantages of the teams in Organisational increase the programmes further for correcting the
Development process and encourages the employees deviations. The consultants make great meaning to the
throughout the process to form into groups and teams. organisation. The complete steps in the Organisational
(viii) Inter-group development: After the groups Development processes should be followed by the
or teams are formulated, the consultants give confidence organisation in order to have entire Organisational
the inter-group meetings, interaction etc. Development settlement.
(ix) Evaluation and follow up: The organisation ■■
should assess the Organisational Development
198
Emerging Trends in Organizational

Development
20
INTRODUCTION SUMMARY
Organizations have considerably emerged in the Organizations have developed a lot from the olden
field of structure, operation and people in this modern times in respect of structure, operations and people.
era. Technical advancement has taken the place of There is a considerable change in the cross-culture
manual manpower. Quality based functioning is environment, influence of MNCs, growth in the
preferred than quantity based. Jobs have become technical know-how and quality management which has
instable and insecure for the subordinates. They have provided different environment in the modern
flat hierarchy and horizontal structure which based on organizations.
the tasks to be accomplished. There is rapid increase in Multiculturalism has taken rise in the modern
the competition in the market. Cross culture organizations which has given good insight to
management has emerged which has given a understand the behaviour of people of different cultures.
considerable change in the role of sex differentiation. It helps the managers to handle the employee’s energy
organization has more emphasis on the sound system to accomplish the organizational goals. It further
of training. The new systems demands for more enables employees to be united and grow together.
technical issues, feedback, reference issues, normative There has been a rapid growth in the modern
issues, social feedback which helps in building an ability organizations by keeping their managers engaged in
to perform the job efficiently. It has various features as formulating effective strategies to make the environment
they have to work on different legal, political and compatible both internally and externally. Modern
economic system, face tough competition from organizations have changed a lot as there is a
multinationals as well as from the local industries, need considerable rise in multinational corporations in
to be flexible, organizational structure is flat, prefer to industrial and corporate sector. Cross-culture
appoint the people with global view, need to train multi- environment has emerged at workplace, technical
skills to the employees, special training in respect of workers are preferred more, there is higher degree of
cross culture and socialization, to maintain a balance participation of employees in the decision-making of
between the countries to maintain good relations for the organization, the size of the organization has become
the sake of running effective business in their country. smaller than before and time and place have become
It is very essential to maintain global culture within the flexible, rise in high level training to employees to
organizations to have effective and fruitful business in compete with the latest technical innovations and
various countries by creating clear and simple inventions.
background which supports their culture and needs. The jobs have become instable which has made
They need to develop global career paths and to use the jobs insecure for the people. Executives are more
cultural differences as a major asset. inclined towards profession than to the job. Quality is
EMERGING TRENDS IN ORGANIZATIONAL DEVELOPMENT /199
more emphasized with no compromise of low quality practice of price tag in business, emphasizing more on
work. Modern organizations are more inclined towards improving the system of production and service,
updating themselves with the latest developments by adopting new methods of training, implement leader-
training themselves and marking them self-efficient and ship, be out of fear, to breakdown barriers between staff
areas, to eliminate slogans, exhortation and targets for
more demanding to match with the latest requirements
the workforce, to eliminate numerical quotas, to remove
of the market.
the barriers affecting the pride of the organisation and
There are more employment opportunities such as workforce and to take necessary action for the tran-
information technology, education and training, sformation.
environmental consultants, health care etc. There is
Besides all these steps there is one more approach
computerized performance evaluation which has
called “Six Sigma” approach which defines the concept
generated new avenues for the employment in the
of achieving the targets by determining the product to
modern organizations. Communication is done through
be produced, to determine who are the customers, to
electronic publishing, CD ROM, wireless, which are
determine the suppliers, to find out the process to
quicker and swift means than before. Managers are
accomplish the goal, to evaluate the process and
using coercive power and sharing information with their
eliminate the non-value added steps and to establish
subordinates than to hold them to give a second
the measurement criteria and the drive for continuous
thought themselves. It has led to saving of time and
improvement.
balanced sharing of manager’s duties and
responsibilities among the subordinates for quick Quality should be maintained keeping in mind the
decision-making. orientation of workforce, by empowering job into
business, being loyal, creating open talk show with the
Modern organizations have flat hierarchy and
employees, motivating training programmes and having
horizontal structure as it is based on the processes than
perpetual change to match the flow of the organisation.
tasks. Costs have considerably reduced to one third due
to horizontal structure. Work force is contingent than There are various dimensions to improve the culture
permanent as most of the work is done through part and organizational behaviour they are power distance,
time workers in the modern organization. individualism versus collectivism, masculinity versus
There is a rapid increase in the competition in the femininity, uncertainty avoidance and long term versus
market demand of high quality of products and services short-term orientation. There are various tendencies
which has led to more emphasis on training, autonomy which are analyzed based on these dimensions they are
has emerged as the source of motivation. Organization relationship to environment, time orientation, nature of
has more emphasis on the sound system of training. The people activity orientation, and focus of responsibility
new systems demands for more technical issues, and concept of space.
feedback, reference issues, normative issues, social Cross-culture management has emerged in the
feedback which helps in building an ability to perform organizations which have given rise to differences in
the job efficiently. the role of sex. Men and women both are enjoying the
Teams are built for designing and maintaining higher level jobs and remuneration. It has also given
various strategies to interact with external environment rise to the differences in the achievement motivation
effectively. In order to improve the upward by setting difficult goals, giving lot of feedback, taking
communication surveys are conducted. Increase in the lot of responsibility of work and by encouraging an
use of electronic brainstorming to improve the quality action orientation. Cross-culture has led to differences
of ideas and work. There is a tendency to shift the focus in work values and motivation factors, social loafing,
from time-to-time according to the situations. decision making, conflict handling, leadership
There are various steps which can help in making behaviour and differences in personality.
the quality management such as to create constant Taylor Cox and Stacy Blake has suggested six
purpose to improve the product and service, by adopting arguments to manage the cultural diversity they are cost
new philosophy, avoid mass inspection, to end the argument, resource acquisition argument, marketing
argument, creativity argument, problem solving multicultural behaviour helps the managers to channelise
argument and system flexibility argument. the employee’s energy for the achievement of the
Cox and Blake have given various spheres of organisational goal.
activities to manage cultural diversities as The employees can possibly co-exist and grow
organizational culture, mind-set about diversity, cultural together. These types of changes are keeping
differences, human resource management systems and management as well as functional managers constantly
impartiality. busy in making strategies that can be compatible with
Modernization has given rise to manage the internal and external environment. From the view point
multinational organizations as they are in large number. of organisational behaviour and human resource
The multinationals are spread all over the world but management, organisations are witnessing many
owned and controlled by the headquarters. It has various changes.
features as they have to work on different legal, political Q. 2. How far do you agree with the findings of
and economic system, face tough competition from Hofstede about work place related culture of India?
multinationals as well as from the local industries, need Ans. Geert Hofstede has done thorough study in
to be flexible, organizational structure is flat, prefer to explaining the influence of culture on values. Despite
appoint the people with global view, need to train the fact that his theory is thirty year old, his theory is
multiskills to the employees, special training in respect considered to be authentic and relevant in modern times.
of cross-culture and socialization, to maintain a balance He has done survey in fifty countries and India is one of
between the countries to maintain good relations for the countries where he founded that managers and
the sake of running effective business in their country. employees vary on five value dimensions of national
It is very essential to maintain global culture within the culture. These five dimensions are as follows:
organizations to have effective and fruitful business in (i) Power distance: Power distance can be
various countries by creating clear and simple explained as a national culture characteristic that
background which supports their culture and needs. describes the extent to which a society accepts that power
They need to develop global career paths and to use in institutions and organisations are distributed
cultural differences as a major asset. disproportionately. This variable may range between
relatively equal (low power distance) to extremely
CHECK YOUR PROGRESS
unequal (high power distance). The countries that are
Q. 1. Whether emerging trends have made a found to be having low power distance are Austria,
work place more interesting or more tense? U.S.A., Germany, Netherlands, Denmark, Israel and New
Ans. There are several changes that are witnessed Zealand etc. The countries that are having high power
by organisations and these changes are in its structure, distance are Malaysia, France, Indonesia, Pakistan,
operations and people. The different environment to Columbia, Venezuela, China, Russia, Hong Kong,
the organisations is due to the emergence of cross- Philippines etc. Developed country like Japan was found
cultural environment, the influence of multinational to be having moderate power distance. In a ranking
corporations, the growing technological oriented analysis of fifty countries done with continum from low
operations, and the increasing concern for total quality to high power distance, India was placed at the 42 rank
management. These types of developments influence and it suggested that India is high on power distance.
the whole range of social, political and cultural (ii) Individualism versus Collectivism: Individu-
environment of the organisation. The persons hailing alism can be explained as a national culture characteristic
from different cultural backgrounds have been working that describes the degree to which people prefer to act
together for accomplishing organisational goals. The as individuals rather than a member of groups.
different cultural norms and values have shown the way Collectivism can be explained as a national culture
to the emergence of multi-culturalism in the characteristic that describes a tight social framework in
organisation. The study of cross-cultural management which people expect others in groups of which they are
helps in providing good insight for understanding the a part to look after them and protect them. The countries
behaviour of the people. The proper understanding of that are found to be high on individualism are U.S.A.,
U.K., France, Germany, Netherlands and New Zealand done with continuum, from low to high uncertainty
etc. Country like Mexico is also drifting towards more avoidance, India was ranked at 9th position signifying
degree of individualism. The countries that are found the fact that India is low on uncertainty avoidance.
to be high on collectivism are Guatemala, Columbia, (v) Long-term versus Short-term orientation:
Pakistan, China, Hong Kong, Indonesia etc. Countries Long-term orientation can be described as a national
like Japan and Russia have been found to be mid-way culture characteristic that emphasizes the future, thrift,
between individualism and collectivism. In a ranking and persistence. Short-term orientation can be described
analysis of fifty countries done with continuum, from as a national culture characteristic that emphasizes the
individualism to collectivism India was ranked at 30th past and present, respect for tradition, and fulfilling
position and signifying the fact that India is slightly tilted social obligation. The countries that are high on long-
towards collectivism. term orientation are China, Hong Kong etc. The
(iii) Masculinity versus Femininity: Masculinity countries that are high on short-term orientation are
is a term that is concerned with quantity of life while France, Indonesia, Russia and U.SA. etc. Countries like
term like femininity is concerned with quality of life. Germany, Netherlands etc. are on mid-way between the
Masculinity can be explained as a national culture two orientations.
attribute that describes the extent to which societal Q. 3. What are those work values, which have
values are characterised by assertiveness and mater- shown consistency across cultures?
ialism. Femininity can be explained as a national culture Ans. Many surveys have been conducted to study
attribute that lay emphasize on relationships and concern the basic work values and their different aspects in the
for others. The countries that are high on masculinity cross culture. Nevertheless, a range of motivation
are Japan, Germany, Hong Kong, U.S.A., Austria, theories have been laid down and can be interpreted
Ireland, New Zealand and South Africa etc. In recent differently in different cultures. Maslow recommended
years, developed country like U.S.A. has reported to that groups who start with physiological need and then
be drifting a bit towards femininity. The countries that shift to security need, social need, esteem need, and
are high on femininity are Sweden, Norway, Denmark, self-actualized need. On the other hand in countries
Finland, Netherlands, Chile, Portugal, and Russia etc. where uncertainty avoidance is high such as Japan,
The countries mid-way between masculinity and Greece, Mexico, there the security need might be higher
femininity are China, France and Indonesia etc. In a than other needs. In a culture where womanliness is
ranking analysis of fifty countries done with continuum, higher there the social needs may be on top priority. In
from masculinity to femininity, India was ranked at 30th countries having tendency to take reasonable risk, the
position signifying that India is slightly tilted towards achievement motivation might be high, whereas in
femininity. countries having high degree of uncertainty avoidance
(iv) Uncertainty Avoidance: Uncertainty attribute there the achievement motivation may be low.
can be explained as a national culture characteristic that Q. 4. How can cultural diversity be managed
describes the extent to which a society feels threatened more effectively?
by uncertain and ambiguous situations and tries to avoid
Ans. Now-a-days the world is decreasing into a
them. In a situation where uncertainty avoidance is high,
single global village and as a result multi-national
society prefers structured to unstructured situations, and
business and social interactions need integration of
people have an increased level of anxiety, stress, and
various diverse cultures into organisational philosophy
aggressiveness. The countries that are high on
and operations. The managing of cultural diversity can
uncertainty avoidance are Greece, Portugal, Japan,
improve the performance of the organisation.
Chile, France and Russia etc. The countries that are low
on uncertainty avoidance are Singapore, Denmark, According to Taylor Cox and Stacy Blake, six
Switzerland, Ireland, New Zealand, South Africa, Hong factors are there for managing cultural diversity they
Kong, Indonesia and U.S.A. etc. The countries moderate are:
on uncertainty avoidance are China, Germany, Japan, (i) Cost argument: The managing of cost would
Netherlands etc. In a ranking analysis on fifty countries assist in having more rewards in different environment.
(ii) Resource-acquisition argument: Those who

TERMINAL QUESTIONS
have got the best reputations of managing diversity will
win the competition for the best personnel. Q. 1. Explain some of the emerging trends in
(iii) Marketing argument: The approaching and the fields of organisations and Organisational
Behaviour. How these changes influence the
cultural feeling that an associate has basis in other
organisation?
countries reaches the marketing effort that helps in
Ans. In modern times, organizations are going
improving the efforts in significant ways.
through expected rapid changes. These types of changes
(iv) Creativity argument: Multiplicity of view- are keeping top management as well as functional
points and less stress on conventionality to norms of managers constantly busy in making strategies that are
the past ought to improve the level of creativity; compatible with internal and external environment.
(v) Problem-solving argument: There is a variety Organisations are undergoing many changes as observed
of perspectives that lead to potentially better decisions from the point of view of organisational behaviour and
and critical analysis of issues; human resource Management. These changes are as
(vi) System flexibility argument: Multicultural follows:
model recommended that organization will become (i) The surfacing of multinational corporations.
(ii) Cross-cultural environment at work place.
fewer determinants, less consistent, and, therefore, more
(iii) More technically skilled labour force or
solution; the increased flexibility should create greater
workforce.
plasticity to react to environmental changes. (iv) Managing through higher degree of
Cox and Blake have recommended various spheres participation.
of activities for managing cultural diversity they are: (v) Smaller size of labour force or workforce.
(i) Organisation culture: This activity enables to (vi) The submissive role of seniority, dominant
valuing the differences and cultural addition; role of specialised skills.
(vii) Flexitime and flexiplace.
(ii) Mind-set about diversity: It helps in creating
(viii) It was difficult to maintain jobs for long
supportive environment; without constant high-level training.
(iii) Cultural differences: It enables to promote (xi) Instability in job and making prospect of job
acceptance and reaping benefits of diversity; security weak.
(iv) Education problems: It helps to educate (x) The executives may be less committed to job
management on valuing differences; but were highly committed to profession.
(xi) There has to be more commitment to quality;
(v) Human resource management systems: This
just “OK” quality was not acceptable.
system helps to have no favouritism approach while (xii) OB scientists are busier in updating
recruiting, training and development, performance themselves.
appraisal, compensation, benefits and promotion etc.; (xiii) The training on self-efficacy is more in
(vi) Impartiality: To promote independence on the demand as it helps people to get employment
issues related to gender, race, ethnicity, and nationality. and re-deployment through imparting
Thomas recommended that there are a number of interview skills. It also exposes participants
strategies for managing multiplicity, but he proposes to models of people who searched for and
found a good job.
one test categorically which is called Special
(xiv) A variety of hottest career of this century;
Consideration Test. This test consists one question: Does
Information Technology, Education and
this programme, policy, or principle gives special Training (e.g. cross-cultural trainers,
consideration to one group? Will it contribute to employee trainers, school administrators),
everyone’s success, or will it only produce an advantage Environmental Consultants, Health Care,
for selected group? Is it designed for them as opposed Diversity Managers, Human Resource
to us? Whenever the answer is yes, the management is Managers, Employee Leasing Agents, etc.
not yet on the road to manage diversity. were explored and introduced.
(xv) The concept of Computerized Performance According to Champy and Hammer, the impor-
Evaluation opened another issue related to tant issues that re-engineering can address are speed,
employee’s performance. According to quality of service, and overhead costs. According to
Aiello & Svec, performance on a complex them, there is no such thing as permanent wining
task is highest, when it is not monitored, formula.
moderate when it is monitored in person and In modern era of competition, survival and
still low when performance is monitored by excellence are only possible by maintaining high quality
computer. of products and delivering good services. The concept
(xvi) The communication process in this century of “Quality” is no longer a subject of creating a better-
was done through electronic publishing, CD- than average product at a good price but now refers to
ROM, wireless etc. achieving increasingly better products and services at
(xvii) There was changing phases in managerial progressively more competitive prices. This includes
power and empowerment schemes. The doing the things accurately at the first time, rather than
bosses are using more of expert power than making and correcting mistakes.
coercive power. They are sharing informa- The concern for quality has brought following
tion instead of holding it and are working as changes in the managerial scenario:
internal consultant instead of being (i) There was more importance given on
supervisor. training.
(xviii)The workflow automation has saved lot of (ii) Autonomy emerged out as the strong
time that was wasted on gathering and motivating factor.
transferring paper. (iii) Organisations laying emphasis on the sound
(xix) Flat hierarchy and horizontal structure. system of in doctrination.
(xx) The organisations are being structured (iv) Due to technological advancement and high
around processes rather than on tasks. competition, new recruits in the organi-
(xxi) The positions of executives are being defined sations are seeking more information about
in terms of processes rather than in terms of technical issues, performance feedback,
collection of people. referent issues (what one is expected to do),
(xxii) Organisational charts are changing from a normative issues, and social feedback. This
collection of boxes and was looking more type of information seeking is a good sign,
like a process map. as it helps, to build ability to perform jobs
(xxiii) In many cases, the cost cutting to the extent and helps in evaluating expectations and to
of one-third reported was due to implemen- feel fit into various social groups.
tation of horizontal design. (v) The effective teams are being built in the
organisations through designing strategies to
Organisations are going for complete make-over
interact with external environment.
due to the multiple changes that are taking place
According to studies conducted by Ancona
simultaneously. Michael Hammer along with James
& Caldwell, there are four such strategies
Champy delivered a approach in last decade that was
in ascending order of effectiveness and they
based on reinventing organisations and it was also
are:
reciprocated as practice of reengineering the (a) Isolationist.
corporation. (b) Technical scouting (searching for ideas about
The term “Re-engineering” referred to as radically market, competition, technology and
rethinking and redesigning those processes by which coordinating this information with team
we create value (for customers) and do work. It involves members).
redefining processes as patterns of relationships that (c) Ambassadorial (protecting team from outside
connects organisational members with people outside pressure, persuading others to support team
the organisation. and lobbying for resources).
(d) Comprehensive (ambassadorial plus “Six Sigma” was a significant and effective
coordinating technical information with non- approach that became very popular in the area of quality
team members). management. This approach defined the concept of
(vi) The Survey Feedback was done to improve achieving approximately zero defects (more precisely,
upward communication. 3.4 defects per million or 99.999% defect-free
(vii) The electronic brainstorming worked as a manufacturing).
device for generating ideas. The researches Six steps to Six Sigma are:
conducted suggested that electronic (i) Determining the product to be made.
brainstorming produces more number of (ii) Determining your potential customers.
quality ideas than face-to-face brain- (iii) Determining the prospective suppliers for
storming. which product is to be made.
Q. 2. Describe Total Quality Management and (iv) The workers drawing out the process to fulfil
Business Process Reengineering. How are they mission.
important for the organisation? (v) The evaluation of the process and eliminating
Ans. Total Quality Management is an approach the non-value-added steps or the sources of
that addresses the issue of quality. It is an organisational error.
cultural commitment to satisfying customers through (vi) The establishment of measurement criteria
the use of an integral system of tools, techniques, and and the drive for continuous improvement.
training. It involves the continuous improvement of Q. 3. What are dimensions of cross-cultural
organisational processes that results in high-quality study done by Hofstede? How national culture
products and services. It signifies the attempts to capture influence work culture in organisations?
the essence of W. E. Deming’s philosophy of quality.
Ans. Geert Hofstede have studied the cross-culture
The approach of Deming towards quality and the influence of culture on values. This theory is
management plays important part and it has fourteen considered to be authentic and relevant in modern times.
steps of quality management and they are as follows:
He has done survey in fifty countries and India is one
(i) To create constancy of purpose for
of the countries where he founded that managers and
improvement of product and service.
employees vary on five value dimensions of national
(ii) To adopt the new philosophy.
culture.
(iii) To cease dependence on mass inspection.
(iv) The ending of the practice of awarding These five dimensions given by Hofstede in this
business on price tag alone. respect are:
(v) To constantly and endlessly improving the (i) Power distance: Power distance can be explain
system of production and service. as a national culture characteristic that describes the
(vi) To institute modern methods of training on extent to which a society accepts that power in
the job. institutions and organizations are distributed dis-
(vii) To institute leadership. proportionately. This variable may range between
(viii) To drive out fear. relatively equal (low power distance) to extremely
(ix) To break down barriers between staff areas. unequal (high power distance). The countries that are
(x) To eliminate slogans, exhortation and targets found to be having low power distance are Austria,
for the workforce. U.S.A., Germany, Netherlands, Denmark, Israel and
(xi) To eliminate numerical quotas. New Zealand etc. The countries that are having high
(xii) To remove barriers to pride of workmanship. power distance are Malaysia, France, Indonesia,
(xiii) To institute a vigorous programme of Pakistan, Columbia, Venezuela, China, Russia, Hong
education and training. Kong, Philippines etc. Developed country like Japan
(xiv) To take action to accomplish the trans- was found to be having moderate power distance. In a
formation. ranking analysis of fifty countries done with continuum
from low to high power distance, India was placed at describes the extent to which a society feels threatened
the 42nd rank and it suggested that India is high on by uncertain and ambiguous situations and tries to avoid
power distance. them. In a situation where uncertainty avoidance is high,
(ii) Individualism versus Collectivism: Indivi- society prefers structured to unstructured situations, and
dualism can be explained as a national culture people have an increased level of anxiety, stress, and
characteristic that describes the degree to which people aggressiveness. The countries that are high on
prefer to act as individuals rather than a member of uncertainty avoidance are Greece, Portugal, Japan,
groups. Collectivism can be explained as a national Chile, France, and Russia etc. The countries that are
culture characteristic that describes a tight social low on uncertainty avoidance are Singapore, Denmark,
framework in which people expect others in groups of Switzerland, Ireland, New Zealand, South Africa, Hong
which they are a part to look after them and protect Kong, Indonesia, and U.S.A. etc. The countries
them. The countries that are found to be high on moderate on uncertainty avoidance are China, Germany,
individualism are U.S.A., U.K., France, Germany, Japan, Netherlands etc. In a ranking analysis on fifty
Netherlands, and New Zealand etc. Country like Mexico countries done with continuum, from low to high
is also drifting towards more degree of individualism. uncertainty avoidance, India was ranked at 9th position
The countries that are found to be high on collectivism signifying the fact that India is low on uncertainty
are Guatemala, Columbia, Pakistan, China, Hong Kong, avoidance.
Indonesia etc. Countries like Japan and Russia have been (v) Long-term versus Short-term orientation:
found to be mid-way between individualism and Long-term orientation can be described as a national
collectivism. In a ranking analysis of fifty countries done culture characteristic that emphasizes the future, thrift,
with continuum, from individualism to collectivism, and persistence. Short-term orientation can be described
India was ranked at 30th position and signifying the as a national culture characteristic that emphasizes the
fact that India is slightly tilted towards collectivism. past and present, respect for tradition, and fulfilling
(iii) Masculinity versus Femininity: Masculinity social obligation. The countries that are high on long-
is a term that is concerned with quantity of life while term orientation are China, Hong Kong etc. The
term like femininity is concerned with quality of life. countries that are high on short-term orientation are
Masculinity can be explained as a national culture France, Indonesia, Russia, and U.SA. etc. Countries like
attribute that describes the extent to which societal Germany, Netherlands etc. are on mid-way between the
values are characterised by assertiveness and two orientations.
materialism. Femininity can be explained as a national Q. 4. Suggest measures for managing cultural
culture attribute that lay emphasize on relationships and diversity. How multinational organisations can be
concern for others. The countries that are high on managed more effectively?
masculinity are Japan, Germany, Hong Kong, U.S.A., Ans. Multinational organisation or multinational
Austria, Ireland, New Zealand and South Africa etc. In corporation (MNC) can be described as a large
recent years, developed country like U.S.A. has reported corporation with operations and divisions spread over
to be drifting a bit towards femininity. The countries several countries but are controlled by a central
that are high on femininity are Sweden, Norway, headquarters.
Denmark, Finland, Netherlands, Chile, Portugal, and The features of MNC’s from perspective of human
Russia etc. The countries mid-way between masculinity resource management are as follows:
and femininity are China, France and Indonesia etc. In (i) MNC’s have to work in a different legal,
a ranking analysis of fifty countries done with political, and economic system.
continuum, from masculinity to femininity, India was (ii) MNC’s have to face more tough competit-
ranked at 30th position signifying that India is slightly ions from other MNC’s and local industries.
tilted towards femininity. (iii) People working in MNC’s needs to be
(iv) Uncertainty avoidance: Uncertainty attribute flexible and should be able to stretch their
can be explained as a national culture characteristic that potential.
(iv) Organisational structure of MNC’s need to (i) To create a clear and simple mission state-
be less tall and more flat. ment. It is done to create a feeling of a shared
(v) People selected in the MNC’s should have mission that could unite individuals from
global view. diverse cultural backgrounds.
(vi) Recruitment and selection of the employees (ii) To create systems that ensures an effective
in MNC’s need to be hauled up to meet flow of information. The effective flow of
international challenges. information should be consistent throughout
(vii) People in MNC’s need training in multi- the geographically dispersed organisation.
skilling to accomplish their tasks. (iii) To make managers broad-minded as it will
(viii) People selected in MNC’s need special allow them to think globally.
training in cross-cultural values, sociali- (iv) To develop global career paths.
zation, languages etc. (v) To use cultural differences as a major asset.
(ix) In MNC’s, here is need to strike balance (vi) To implement worldwide education and team
between autonomy and control. development programmes in MNC’s. The
(x) In MNC’s, there is need to strike balance concept of unified training efforts that lay
within and between countries, for working emphasis on corporate values can help
successful as a single system. establish a shared identity among employees.
According to Rhinesmith suggestions, there are ■■
six guidelines that assist in creating a global culture
within organisations. These six guidelines are as follows:

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ORGANISATION THEORY

organisation. But in the past times the policies

general system fog. The main benefit of contingency designs.

Organisation Structure and Effectiveness

(A) Formalization to have absolute centralizations as it would deprive

of working like coordination and communication (iii) Delegation of Authority: Delegation is a

Organisation Behaviour and Individual Perspective-I

Overview of Organisational Behaviour 4

(b) Communication: Communication is a process members of the organisation. An effective organisational

Individual Behaviour and Learning

Attitudes and Values

(iii) Dissonance Arousal According to Baron, Attitude is defined as,

of the work is emotionally involved to person’s It is significant to study values, as it influences

Organisation Behaviour and Individual Perspective-II

Personality and Emotions

(b) Motivation: Motivation is a psychological applications of emotions in an organization. The

rate of illness. Consequently, absenteeism is less in these persuade less.

Needs General Context Organizational Context

Social needs The propositions relating to social needs

Satisfaction of esteem needs produce a tence, knowledge, desire to have

their area of specialization to in almost all the areas

behaviour leads to performance. recognize incentive.

Q. 11. Mention the mathematical characteristics of valence, instrumentality and expectancy.

(v) Self-Actualization Needs: Self-actualization stresses the contentment. Nevertheless, they

4. Relationship Due to unsatisfied needs It has satisfied needs

4. Controls Formal control. Informal control.

Q. 6. What are the characteristics of high an attitude to reaching leaning goals.

Job Design and Job Satisfaction

Group Formation and Structure

Storming: The word “storm” signifies violent Q. 8. What is Group Cohesiveness?

Informal Communication or Grapevine is the communication through proper channel, sharing

Q. 3. Draw a flow chart of conflict process.

Stage I Stage II Stage III Stage IV

Adapted from Stephen Robbins “Organisational Behaviour” 9th Ed., 2003

Q. 4. Distinguish between intra-personal (i) Personal differences

(a) Approach-approach conflict Collaboration should be properly monitored in

Team Building and Leadership

(viii) Deserter: The “deserter” type of the manager-

Power and Politics

Q. 6. Write notes on: charismatic leader without understanding their

Organisational Culture and Development

Organizational Culture and Climate

External Forces in loss of loyalty, loss of motivation, increased mistakes,

Emerging Trends in Organizational

(ii) Resource-acquisition argument: Those who

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