MODULE- 1

Introduction of Organizational Behaviour

The study of organizational behaviour is very interesting and challenging too. It is related to
individuals, group of people working together in teams. The study becomes more
challenging when situational factors interact. The study of organizational behaviour relates
to the expected behaviour of an individual in the organization. No two individuals are likely
to behave in the same manner in a particular work situation. It is the predictability of a
manager about the expected behaviour of an individual. There are no absolutes in human
behaviour. It is the human factor that is contributory to the productivity hence the study of
human behaviour is important. Great importance therefore must be attached to the study.
Researchers, management practitioners, psychologists and social scientist must understand
the very credentials of an individual, his background, social framework, educational update,
impact of social groups and other situational factors on behaviour. Managers under whom
an individual is working should be able to explain, predict, evaluate and modify human
behaviour that will largely depend upon knowledge , skill and experience of the manager in
handling large group of people in diverse situations. Pre-emptive actions need to be taken
for human behaviour forecasting. The value system, emotional intelligence, organizational
culture can modify individual behaviour. Recent trends exist in laying greater stress on
organizational development and imbibing a favourable organizational culture in each
individual. It also involves fostering a team spirit and motivation so that the organizational
objectives are achieved. There is a need for commitment on the part of the management
that should be continuous and incremental in nature. The scope of organizational behaviour
is as under:
1. Impact of personality on performance
2. Employee motivation
3. Leadership
4. How to create effective teams and groups
5. Study of different organizational structures
6. Individual behaviour, attitude and learning
7. Perception
8. Design and development of effective organization
9. Job Design
10. Impact of Culture on organizational behaviour
11. Management of Change
12. Management of conflict and stress
13. Organizational development
14. Organizational culture
15. Transactional analysis
16. Group Behaviour, Power and politics
17. Study of emotions
18. Job Designs
The field of the organizational behaviour does not depend upon deductions based on gut
feelings but attempts to gather information regarding an issue in a scientific manner under
controlled conditions. It uses information and interpret the findings so that the behaviour of
an individual and groups can be canalized as desired. Employee performance and job
satisfaction are determinants of accomplishment of individual and organizational goals.
Organizations have been set up to fulfill needs of the people. In today’s competitive world,
the organizations have to be growth oriented. This is possible when productivity is ensured
with respect to quantity of product to be produced with zero error quality. Employee
absenteeism and turnover has a negative impact on productivity. Employee who absents
frequently cannot contribute towards productivity and growth of the organization. In the
same manner, employee turnover causes increased cost of production. Job satisfaction is a
major factor to analyse performance of an individual towards his work. Satisfied workers are
productive workers who contribute towards building an appropriate work culture in an
organization. Organizations are composed of number of individuals working independently
or collectively in teams and number of such teams makes a department and number of such
departments make an organization. It is a formal structure and all departments have to
function in a coordinated manner to achieve the organizational objective. It is therefore
important for all employees to possess a positive attitude towards work. They need to
function in congenial atmosphere and accomplish assigned goals. It is also important for
managers to develop an appropriate work culture. Use of authority, delegation of certain
powers to subordinates, division of labour, efficient communication, benchmarking, re-
engineering, job re-design and empowerment are some of the important factors so that an
organization can function as well-oiled machine. This is not only applicable to manufacturing
organizations but also to service and social organizations.
Meaning of Organizational Behaviour
Organizational behaviour is an essential for a firm to achieve effectiveness in its activities. It
refers to the behaviour of individuals and groups within organizations and the interaction
between its members and their external environments.
Stephen P. Robbins- Organizational behaviour is a field of study that investigates the impact
that individuals, groups, structure have on behaviour within organizations for the purpose
of applying such knowledge towards improving an organizations effectiveness.
Fred Luthans- Organizational behaviour is directly concerned with the understanding,
prediction and control of human behaviour.
Keith Davis and John Newstrom- Organizational Behaviour is the study and application of
knowledge of how people act or behave within the organization.
Concept of organizational behaviour is depend on individual differences, a whole person,
caused behaviour, human dignity, social systems, mutuality of interest, holistic concept.
Each of us is a student of behaviour. We are aware that certain types of behaviour are
linked to certain types of responsibilities. As we mature, we expand our observations to
include the behaviour of others. We develop generalizations that help us to predict and
explain what people do and will do. How accurate are these generalizations? Some may
represent extremely sophisticated appraisals of behaviour and prove highly effective in
explaining and predicting the behaviours of others. Most of us also carry about with us a
number of beliefs that frequently fail to explain why people do what they do. As a result, a
systematic approach to the study of human behaviour in organizational settings, the
interface between human behaviour and the organization , and the organization itself.
Importance of the study of Organizational Behaviour
Organizational behaviour is a study involving the impact of individuals, group and structure
or behavioiur within the organization. This study is useful for the effective working of an
organization. It is the study of what people do within an organization and how their
behaviour affects the performance of an organization. Organizational behaviour is
concerned mainly with employment related matters such as job, work, leaves, turnover,
productivity, human performance and management.
Organizational Behaviour does offer challenges and opportunities for
managers since it focuses on ways and means to improve productivity, minimize
absenteeism, increase employee job satisfaction etc. Organization behaviour can offer
managers guidance in creating an ethical work climate. This is because organizational
behaviour can improve prediction of behaviour.
Understanding importance of organizational behaviour provides direction to organization.
Organizational behaviour has great relevance in today’s business environment. Studying
Organizational behaviour helps to understand and predict organizational life. It also helps to
understand nature and activities of people in organization. It has great significance to
motivate employees and to maintain interrelations in organization.
The need and importance of the Organizational behaviour is as under:
1. Skill improvement
 Study of organizational behaviour helps to improve skills.
 This includes ability of employees and use of knowledge to become more
efficient.
 It also improves managers as well as other employees work skill.
2. Understanding Consumer Buying behaviour- It also an important part to improve
marketing process by understanding consumer(buying) behaviour.
3. Employee Motivation-Organizational helps to understand basis of motivation and
different ways to motivate employees properly.
4. Nature of Employees-
 Understanding of personnel and employee nature is important to manage
them properly.
 With the help of Organizational behaviour, we can understand whether
employees or people are introvert, extrovert, motivated, dominating etc.
 5. Anticipating Organizational Events-
 The scientific study of behaviour helps to understand and predict
organizational events.
 For example: Annual Business Planning, Demand Management, Product line
Management, Production Planning, Resources scheduling, Logistics etc.
6. Efficiency and Effectiveness-Study of Organizational behaviour helps to increase
efficiency and effectiveness of organization.
7. Better environment of Organization- Organizational Behaviour helps to create
healthy, ethical and smooth environment in organization.
8. Optimum or Better Utilization of Resources-
 Study of Organizational behaviour helps to understand employees and their
work style and skill better way.
 By understanding this, management can train and motivate employees for
optimum utilization of resources.
9. Goodwill of Organization- Organizational Behaviour helps to improve goodwill of
organization.
This is all aboutsignificance and importance of Organizational behaviour
and its impact on overall business activities. Ultimately Organizational behaviour helps to
increase efficiency and productivity. This may lead to increase profit of organization.
 MODULE- 2
Behaviour and its Causation
Behaviour- Manner of behaving or conducting oneself- the way a person behaves toward
other people.
Behaviour is the range of a mannerism made by the individuals, organisms,
system, or artificial entities in conjunction with themselves or their environment, which
includes the other systems or organisms around as well as the physical environment.
An infant is born with wide variety of behaviours. These are developed depending upon a
complex set of factors, especially interaction with others. Growing up in a human society,
the child learns to compromise and to adapt the characteristics and values of the people in a
particular social environment. The term behaviour includes all motor activities, cognitive
activities and affective activities. The nature of an individual’s behaviour can be influenced
by interaction between an inherited pattern of genes and a particular environment, physical
characteristics and cultural behaviour observed as a result of learning but not of born racial
characteristics.
Causation in Behaviour
Behaviour is the product of two things, the nature of the individual and the nature of
situation. Situation is the source of stimuli and behaviour is the organism’s response to the
stimulation from the environment.
Factors affecting the nature of an individual are heredity, culture, response
and learning, sensitivities, intelligence and personalities, race, specie, group.
Individual Similarities- Biological or cultural in nature due to common experiences.
In psychology, it is more concerned with the contribution of the organism to behaviourand
also with determining the likeness and difference that exist within specie, races and groups.
Interaction between person and situation
 Persons reaction to stimuli- It depends on the condition at the moment and his
nature(personality)
In combined stimuli- Selects stimuli that dominates and acts. Meaning, an individual
organizes or interprets the environment in which he lives.
 Perception- Product of interaction between stimulus and organism, rather than
reaction of organism to the stimuli- a thing is viewed in quite different ways.
 Understanding behaviour requires not only determining stimulus but also
discovering how new stimuli are organized.
 Perception gives the stimuli this meaning and people’s responses are determined by
these meaning.
 Ex: A supervisor- may be viewed differently, hot tampered, authoritarian or simply
someone who is doing his job(Though he treats his men alike)
Reasons: a. Depends upon the environment temperature, etc
b. State of fatigue
c. Previous contact with him or other supervisors(past experiences)
d. Employees personality (basic nature of the organism)
Therefore, understanding a behaviour not only requires determination of stimulus
but also how the stimuli was organized.

Behaviour and Accomplishment

 Accomplishment- Product of behaviour and not the cause of behaviour.
 McGregor states that the source of management failures is the tendency to blame
people rather than search for cause.
 Accomplishment as cause when it plays a part in organism’s planning, something
that is anticipating hence precedes the behaviour.
The Causal Sequence in Behaviour
SOBA
S- Stimulus Situation- It includes light, sound, job, routines, other people, actions of
supervisor, and any aspects of the environment to which a person is sensitive.
O- Organism- It includes heredity, maturation, biological needs and many learnings such as
knowledge, skills, certain needs attitudes, and values.
B- Behaviour- It includes body movements, talking, facial expression, emotional responses
and thinking.
A- Accomplishment- It includes change in stimulation, survival escape etc.
Basic Causes of Behaviour often unknown to the individual
 It does not reach level of consciousness.
 Not by merely analyzing demands or expressed purposes
 Frequently goes back to situation entirely unrelated to the present difficulty.
Excuses are not causes
 Many purposes or reasons for behaviour are justifications or excuses rather than
causes
 Sometimes man knows that expressed reasons are false, but often intrigued by
reasons thus believing they are the causes.
 Psychologist prefers to analyze situation and behaviour then verbal reports.
Introduction to Personality
In 400 BC, Hippocrates, a physician and a very acute observer, claimed that different
personality types are caused by the balance of bodily funds. The terms he developed are still
sometimes used today in describing personality. Phlegmatic(or calm) people were thought
to have a higher concentration of phlegm; sanguine(or optimistic) people had more blood;
melancholic(or depressed) people had high levels of black bile; and irritable people had high
levels of yellow bile
Hippocrates views about the biological basis of personality are echoed in contemporary
theories that link the presence of brain chemicals such as noradrenaline and serotonin to
mood and behaviour.
But how do we define ‘personality’? Within psychology two classic definitions are often
used:
Personality is a dynamic organization, inside the person, of psychological systems that
create the person’s characteristics patterns of behaviour, thoughts and feelings. G.W.
Allport, 1961
More or less stable, internal factors…. Make one person’s behaviour consistent from one
time to another, and different from the behaviour other people would manifest in
comparable situations. Child, 1968
Both these definitions emphasize that personality is an internal process that guides
behaviour. Gordon Allport(1961) makes the point that personality is psychophysical, which
means both physical and psychological. Recent research has shown that biological and
genetic phenomena do have an impact on personality. Child(1968) makes the point that
personality is stable- or at least relatively stable. We do not change dramatically from week
to week. We can predict how our friends will behave, and we expect them to behave in a
recognizably similar way from one day to the next.
Child(1968) includes consistency(within an individual) and difference(between individuals)
in his definition. These are also important considerations. So, personality is what makes our
actions, thoughts and feelings consistent(or relatively consistent), and it is also what makes
us different from one another.
Introduction to Perception
In our interaction with the physical outside world, it is necessary to process information
from it for the purpose of making sense of the world and also making ourselves safe and
reassured. And since our human beings enjoy the abilities to hear, see, smell, touch and
taste, we are able to sense the outside and be aware of what happens around-this process
of sensing the outside world is completed by our perception, which with our sensory organs,
allows us to recognize and identify the existence of all kinds of stimuli and then evaluate and
give meanings to them.
In common terminology, perception is defined by Longman Dictionary of Contemprorary
English as “a) the way you think about something and your idea of what it is like; b) the way
that you notice things with your senses of sight, hearing etc; c) the natural ability to
understand or notice things quickly.”
In philosophy, psychology, and cognitive science, perception is the process of attaining
awareness or understanding of sensory information. The word “perception” comes from the
latin words perception, percipio, and means “receiving, collecting, action of taking
possession and apprehension with the mind or senses.”
Introduction to Learning
One of the most important characteristics of human beings is their capacity to learn. An
individual starts learning immediately after his birth. Our personality, our habits, skills,
knowledge, attitude and interest is largely the result of learning. All our adaptive as well as
maladaptive, and cognitive as well as affective behaviour formed by learning process. These
are the vital important in helping the individual to adapt to his environment.
The term learning covers every modification in behaviour to meet environmental
requirements. Learning is the acquisition of habits, knowledge and attitudes. It involves new
ways of doing things and it operates on an individual’s attempt to overcome the obstacles or
to adjust the new situations, it represent progressive changes in behaviour. It enable him to
satisfy interests to attain goal. Learning is a process. It involves all those experiences and
training of an individual which help to change his behaviour. Learning prepares the
individual to adjust and adopt in the situations. All the learning is purposeful and goal
oriented. It is universal and continuous.
A relatively permanent change in behaviour, which occurs as a result of activity, training,
practice or experience.
Introduction to Attitude
An attitude is a positive, negative or mixed evaluation of an object that is expressed at some
level of intensity. It is an expression of a favourable or unfavourable evaluation of a person,
place, thing or event. These are fundamental determinants of our perceptions of, and
actions towards all aspects of our social environment.
Attitudes involve a complex organization of evaluative beliefs, feelings, and tendencies
towards certain actions.
How much we like or dislike something determines our behaviour towards that thing. We
tend to approach, seek out or be associated with things we like; we avoid, shun or reject
things we do not like.
Some examples of attitude are- he has a positive attitude about the changes, she is friendly
and has a good attitude, he was showing some attitude during practice today, so the coach
benched him, I like my friends that means I am expressing my attitudes towards my friends.
Attitude is manner, disposition, feeling and position with regard to a person or thing ,
tendency or orientation especially in the mind.
According to Gordon Allport” An attitude is a mental and neural state of readiness,
organized through experience, exerting a directive or dynamic influence upon the
individual’s response to all objects and situations with which it is related.
Frank Freeman,” An attitude is a dispositional readiness to respond to certain institutions,
persons ore objects in a consistent manner which has been learned and has become one ‘s
typical mode of response.”
Attitude can be defined as a tendency to react positively or negatively to a person or
circumstantces.
It has been defined as a mental state of readiness; organize to through experience which
exerts a directive or dynamic influence on the responses. These can also be explicit and
implicit. Explicit attitudes are those that we are consciously aware of and that clearly
influence our behaviours and beliefs. Implicits attitudes are unconscious, but still, have an
effect on our beliefs and behaviours. It includes certain aspects of the personality as
interests, appreciation and social conduct.
 MODULE- 3
Importance of Psychological Process of Motivation
 Motivation is important to launch your ideas and strategies for your as well as
organization’s benefits.
 Align the employees to create a good work culture.
 Increase company value and profits.
 Foster a sense of job security and thus promote employee retention.
 Lay the seeds of a successful company and produce better products and results.
 There are factors of motivation for employees:
1. The Reward System- Every organization is characterized by a particular type of
reward structure, often differing from person to person and department. If you
want more of something in an organization , simply increase greater rewards for
that behaviour. People respond to incentives. Employees are motivated to
acquire stuff. Leverage the drive to acquire. Utilize incentives to drive
performance and create a culture of recognition and reward. The “Acquire”
drive is relative. Find out who your employees compare themselves to and make
the rewards comparable.
2. The Leadership Style- This is a key factor in determining how people feel about
the company and how motivated they are. The appropriate leadership style
depends on the goals and objectives of the organization, the people within the
company, and the external environment. The manager is required to use
different leadership stylers for different people under different circumstances.
Just changing the leader changes the psychological climate of the company and
in turn, the whole performance of people in the organization.
3. Organizational Climate-
 Is your company a “ great place to work”?
 The organizational climate is deliberately created and maintained by
management.
 It largely consists of the way people treat each other up and down the
line. Employees have a drive to bond. These bonds instil loyalty and
engender positive emotions about the company. Managers should foster
bonding and create opportunities for social interaction. This leads to
employees identifying themselves as a team with more motivation.
4. The structure of the work-
 Some work is inherently motivational , requiring creativity and
imagination.
 Some work may require high levels of physical energy and stamina.
  Work that involves communicating, negotiating, and interacting with
other people in order to gain their cooperation to get the job done
quickly and well brings out the best energies of the individual.
 It is exciting, challenging and usually high rewarding as well.
 An enormous amount of work must be standardized, routinized, and
made relatively unexciting in order to be done efficiently and cost
effectively.
 Good organizations are always trying to structure the work so as to
match the nature of the employees so as to make the work as interesting
and enjoyable as possible.
 Happy employees and higher motivation- Standardize, match job to
employee.
Salient Motivation Tools
When companies have unhappy, unmotivated employees, productivity and work
relationships may suffer as a result. For this reason, companies often spend a great deal of
energy trying to findout how to best motivate their employees . The tools companies use to
motivate employees ultimately depend on the dynamics of their entire employees work
force.
Tools for motivating employees fall into two basic categories:
 The first is external or extrinsic. These tools deal with physical or monetary rewards
such as bonuses, child care.
 The second category is internal or intrinsic. These rewards meet a psychological or
personality need of employees, such as feelings of validation or pride in a job well
done . Although many companies focus on external motivators , addressing internal
motivators is equally important because external motivators tend to become less
effective over time.
Example: Empowerment
Empowerment is an intrinsic motivator. Companies can empower employees by giving them
individual responsibilities and the authority to make at least basic decisions. They can also
motivate employees by encouraging them to be as creative and innovative as possible.
These techniques allow employees to feel like active participants in the company who are
capable of contributing something meaningful. When employees feel like they are part of
the company, they are more likely to move toward the company’s objectives.
Example: Self - Improvement
Self – Improvement allows employees to receive the training or classes they need to be
better at their jobs. This motivate employees in two ways. First, it shows employees the
company believes they are capable of achieving with additional skills or information. It also
provides information that often can inspire new concepts or products. Less common forms
of self-improvement could include opportunities for meditation or physical exercise, both of
which can make a person feel more mentally alert and prepared.
Example : Life Enhancement
Some employees underperform or resist company change or instructions because of things
happenings in their lives. Companies that accommodates these factors may reduce stress
for their employees and therefore get better work results.
Bottom line
Each employee is an individual with very different desires, needs and personality traits.
What motivates one employee will not necessarily motivate another. For this reason,
companies that want to motivate all employees have to get know them and vary what
motivators they allow. Companies should not assume that external motivators are not
enough; they should use internal motivators like praise and recognition in addition to
traditional pay increases and similar benefits.
Need Theories
McClelland’s Needs Theory was proposed by a psychologist David McClelland, who believed
that the specific needs of the individual are acquired over a period of time and gets molded
with one’s experience of the life. McClelland’s Needs Theory is sometimes referred to as
Three Need theory or Learned Needs Theory.
McClelland has identified three basic motivating needs, Viz. Need for Power, Need for
Affiliation and Need for Achievement and, along with his associates performed a
considerable research work on these basic needs.
Need for Power (n-pow): What is Power? Power is the ability to induce or influence the
behavior of others. The people with high power needs seek high-level positions in the
organization, so as to exercise influence and control over others. Generally, they are
outspoken, forceful, demanding, practical/realistic-not sentimental, and like to get involved
in the conversations.
Need for Affiliation (n-affil): People with high need for affiliation derives pleasure from
being loved by all and tend to avoid the pain of being rejected. Since, the human beings are
social animals, they like to interact and be with others where they feel, people accept them.
Thus, people with these needs like to maintain the pleasant social relationships, enjoy the
sense of intimacy and like to help and console others at the time of trouble.

Need for Achievement (n-ach): McClelland found that some people have an intense desire
to achieve. He has identified the following characteristics of high achievers:
High achievers take the moderate risks, i.e. a calculated risk while performing the activities
in the management context. This is opposite to the belief that high achievers take high risk.
High achievers seek to obtain the immediate feedback for the work done by them, so as to
know their progress towards the goal.
Once the goal is set, the high achiever puts himself completely into the job, until it gets
completed successfully. He will not be satisfied until he has given his 100% in the task
assigned to him.
A person with a high need for achievement accomplishes the task that is intrinsically
satisfying and is not necessarily accompanied by the material rewards. Though he wants to
earn money, but satisfaction in the accomplishment of work itself gives him more pleasure
than merely the cash reward.
Hence, McClelland’s Needs Theory posits that the person’s level of effectiveness and
motivation is greatly influenced by these three basic needs.
Content Theories(Maslow Hierarchy of needs)
Maslow’s hierarchy of needs is a theory in psychology proposed by the American
psychologist
Abraham Maslow in his 1943 paper “A Theory of Human Motivation”. Maslow developed a
theory that suggests we are motivated to satisfy five basic needs. These needs are arranged
in a hierarchy.
Maslow suggests that we seek first to satisfy the lowest level of needs. Once this is done, we
seek to satisfy each higher level of need until we have satisfied all five needs.While modern
research shows some shortcomings with this theory, Maslow’s Hierarchy of Needs
Theory remains an important and simple motivation tool for managers to understand and
apply.
The Hierarchy of Needs is as follows:
1. Physiological Needs (basic issues of survival such as salary, stable employment, able to
eat/drink/sleep well)
2. Security Needs (stable physical and emotional environment issues such as benefits,
pension, safe , work environment, and fair work practices; job security)
3. “Belongingness” Needs (social acceptance issues such as friendship or cooperation on the
job; feeling part of a group/team)
4. Esteem Needs (positive self-image and respect and recognition issues such as job titles,
nice work, spaces, and prestigious job assignments; being recognised for
achievements/improvements)
5. Self-Actualization Needs (achievement issues such as workplace autonomy, challenging
work, and subject matter expert status on the job, the need for personal growth and
development)
1. Physiological Needs - With Maslow’s theory, an employee’s beginning emphasis on the
lower order needs of physiology and security makes sense. Generally, a person beginning
their career will be very concerned with physiological needs such as adequate wages and
stable income and security needs such as benefits and a safe work environment. We all
want a good salary to meet the needs of our family and we want to work in a stable
environment. Demonstrating to staff that you undertake regular salary reviews, benchmark
them with similar industries, review your employee benefits etc. will show commitment to
financial aspects of their employment. Employees whose lowest level needs have not been
met will make job decisions based on compensation, safety, or stability concerns. Also,
employees will revert to satisfying their lowest level needs when these needs are no longer
met or are threatened (such as during an economic downturn). This places an extra
obligation on managers to act humanely when difficult organizational decisions such as staff
reductions have to be implemented. Callous implementation of difficult decisions will cause
the remaining employees in the organization to feel threatened about the ability or desire of
the organization to continue to meet their physiological and security needs. Abraham
Maslow realized that people need to deal with the survival needs before they move on to
any other level of needs. If they do not have the necessary food, clothing, water, shelter —
or comparable elements to survive — they are not likely to be concerned about learning
new skills to qualify them for future jobs. In the workplace, simple things like snacks, clean
water (such as that from the watercooler) and coffee will go a long way in meeting your
employees’ basic physiological needs. Checking with employees that these are adequate will
demonstrate that you are giving consideration to their psychological needs.
2. Security Needs- To address this level of the hierarchy, you must consider physical as well
as psychological safety and security. As a manager you can do common sense things like
make sure that the working environment contains no safety hazards; You can also provide
mental security by explaining the current working climate and the important roles they play
in meeting the wider company strategy, therefore helping them feel safer in their position
with the company.
3. “Belongingness” Needs- This level of Maslow’s theory deals with love, acceptance,
friendship, and companionship. The level of social interaction an employee desires will also
vary based on whether the employee is an introvert or extrovert. Finding out how people
are motivated goes a long way in meeting their individual needs. Effective interpersonal
relations are also a crucial aspect of ‘belonging’. Managers can create an environment
where staff co-operation is rewarded on both an individual and team level on a regular
basis. This will encourage interpersonal effectiveness and improve team dynamics and
performance. Ongoing managerial communication about operational matters is also an
important component of meeting employee’s social needs. Employees who are “kept in the
dark” about operational matters and the future plans of the organization often feel like they
are an organizational outsider. Managing and dealing with change effectively and on an
ongoing basis is critical to meeting these needs.
4. Esteem Needs- At this point of Maslow’s hierarchy, the focus shifts to the personal ego;
self-respect, achievement and receiving recognition for efforts given. Employees want to be
respected and appreciated by their co-workers and their bosses. In a learning environment,
you can address this need by deferring to someone’s expertise or knowledge, recognizing
accomplishments, and otherwise providing an environment where learners can feel the
satisfaction of having others applaud their accomplishments. You can also build in little
accolades during the working day in which participants recognise the efforts of someone
who accomplishes something, offers a solution, goes the extra mile or otherwise does
something worthy of yours or the team’s recognition. A simple round of applause for a good
response might be appropriate from time-to-time to meet this need. Esteem needs are also
tied to an employee’s image of himself and his desire for the respect and recognition of
others.
5. Self-Actualization Needs- Even if an individual does not want to move into management,
he/she probably does not want to do the same exact work for 20 years. They may want to
be on a project team, complete a special task, learn other tasks or duties, or expand their
duties in some manner. Cross-training, job enrichment, and special assignments are popular
methods for making work more rewarding. Further, allowing employees to participate in
decision making on operational matters is a powerful method for meeting an employee’s
esteem needs. Finally, symbols of accomplishment such as a meaningful job title, job perks,
awards, a nice office, business cards, work space, etc. are also important to an employee’s
esteem. The important consideration for managers is that they must provide rewards to
their employees that both come from the organization and from doing the work itself.
Rewards need to be balanced to have a maximum effect (and not just financially based –
remember that non- financial rewards can often go much further.) With self-actualization,
the employee will be interested in growth, building skills and individual development. They
may want a challenging job, an opportunity to complete further education, increased
freedom from supervision, or autonomy to define their own processes for meeting
organizational objectives. At this highest level, managers need to focus on promoting an
environment where an employee can meet his/her own self-actualization needs.
To this effect, as a Manager, it’s important that you identify where your employees hope to
go as it relates to the level of achievement in your company and help them get there.
Alderfer’s ERG Theory
Clayton Paul Alderfer is an American psychologist who developed Maslow’s hierarchy of
needs into a theory of his own. Alderfer’s ERG theory suggests that there are three groups
of core needs: existence (E), relatedness (R), and growth (G)—hence the acronym ERG.
These groups align with Maslow’s levels of physiological needs, social needs, and self-
actualization needs, respectively.
Existence needs concern our basic material requirements for living. These include what
Maslow categorized as physiological needs (such as air, food, water, and shelter) and safety-
related needs (such as health, secure employment, and property).
Relatedness needs have to do with the importance of maintaining interpersonal
relationships. These needs are based in social interactions with others and align with
Maslow’s levels of love/belonging-related needs (such as friendship, family, and sexual
intimacy) and esteem-related needs (gaining the respect of others).
Finally, growth needs describe our intrinsic desire for personal development. These needs
align with the other portion of Maslow’s esteem-related needs (self-esteem, self-
confidence, and achievement) and self-actualization needs (such as morality, creativity,
problem-solving, and discovery).
Alderfer proposed that when a certain category of needs isn’t being met, people will
redouble their efforts to fulfill needs in a lower category. For example, if someone’s self-
esteem is suffering, he or she will invest more effort in the relatedness category of needs.

Process Theories(Herzberg’s Two Factor Theory and Vroom’s Expectancy Theory)

Herzberg’s Two Factor Theory
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to
Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of
“Dissatisfaction” is “No Dissatisfaction”.
Herzberg classified these job factors into two categories-

Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if
these factors are absent / if these factors are non-existant at workplace, then they lead to
dissatisfaction. In other words, hygiene factors are those factors which when
adequate/reasonable in a job, pacify the employees and do not make them dissatisfied.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or
maintenance factors as they are required to avoid dissatisfaction. These factors describe the
job environment/scenario. The hygiene factors symbolized the physiological needs which
the individuals wanted and expected to be fulfilled. Hygiene factors include:
Pay - The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
Company Policies and administrative policies - The company policies should not be too rigid.
They should be fair and clear. It should include flexible working hours, dress code, breaks,
vacation, etc.
Fringe benefits - The employees should be offered health care plans (mediclaim), benefits
for the family members, employee help programmes, etc.
Physical Working conditions - The working conditions should be safe, clean and hygienic.
The work equipments should be updated and well-maintained.
Status - The employees’ status within the organization should be familiar and retained.
Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
Job Security - The organization must provide job security to the employees.

Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are
called satisfiers. These are factors involved in performing the job. Employees find these
factors intrinsically rewarding. The motivators symbolized the psychological needs that were
perceived as an additional benefit. Motivational factors include:
Recognition - The employees should be praised and recognized for their accomplishments
by the managers.
Sense of achievement - The employees must have a sense of achievement. This depends on
the job. There must be a fruit of some sort in the job.
Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but retain
accountability.
Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
Vroom’s Expectancy Theory
Vroom’s expectancy theory of motivation says that individuals are motivated to do
something by three things. They are motivated when they value the reward associated with
an action, trust that they’ll receive the reward if they do a good job and believe that they
have the ability to achieve their objectives by working hard.
Victor Vroom’s expectancy theory of motivation is a process theory of motivation. It says
that an individual’s motivation is affected by their expectations about the future.
Specifically, Vroom says that an individual’s motivation is affected by how much they value
any reward associated with an action (Valence), how much they believe that by putting
effort into something they will be able to generate good results (Expectancy) and how much
they believe that generating good results will result in a reward (Instrumentality).
It’s important to note that rewards could be intrinsic or extrinsic. Extrinsic motivations are
external things such as money and promotion. Intrinsic motivations are internal things such
as a sense of fulfillment and achievement.
M=V*I*E
Motivation is a function of valence, instrumentality and expectancy.
Vroom says that an individual’s motivation is product of several factors:

Valence: How much they value the potential rewards associated with the specific results or
behaviors,
Expectancy: How much they believe that their additional effort will help them achieve the
target results of behaviors, and
Instrumentality: How much they believe the rewards will actually appear should they
achieve the desired outcomes or behaviors.

MODULE- 4
Leadership and Group Dynamics

Historically Important(Ohio State and Michigan leadership Theories)

Ohio State leadership Theories
Ohio State Leadership Studies is Behavioral Leadership Theory. A series of studies on
leadership was done by Ohio State University in 1945 to identify observable behaviors of
leaders instead of focusing on their traits.
They found two critical characteristics of leadership either of which could be high or low or
independent of one another.
The research was based on questionnaires to leaders and subordinates of the organizations.
These are known as the Leader Behavior Description Questionnaire (LDBQ) and the
Supervisor Behavior Description Questionnaire (SBDQ).
Ultimately, these studies narrowed the description of leader behavior into two dimensions:
Initiating Structure Behavior: The behavior of leaders who define the leader-subordinate
role so that everyone knows what is expected, establish formal lines of communication, and
determine how tasks will be performed.
Consideration Behavior: The behavior of leaders who are concerned for subordinates and
attempt to establish a warm, friendly, and supportive climate.
The Ohio State Leadership Studies also showed that initiating structure and consideration
are two distinct dimensions and not mutually exclusive.
A low score on one does not require a high score on the other.
Hence, leadership behavior can be plotted on two separate axes rather than on a single
continuum, as shown in the following diagram;
The 4 quadrants in the above figure show various considerations of initiating structure and
consideration.
In each quadrant, there is a relative mixture of initiating structure and consideration and a
manager can adopt any one style.
Although an early study, this is still often referenced.
Notably, the two factors correlate with the people task division that appears in other studies
and as preferences
The findings of Ohio State Leadership Studies suggest that effective leaders possess a strong
ability to work with others and build a cohesive team that is balanced with the capability to
create structure within which activities can be accomplished.

Michigan Leadership Theories

Michigan Leadership Studies is a behavioral Leadership Theory that indicates the Institute
for Social Research at the University of Michigan conducted empirical studies to identify
styles of leader behavior that results in higher performance and satisfaction of a group.
The studies identified two distinct styles of leadership;
Job-centered Leadership: Managers using job-centered leader behavior pay close attention
to subordinates’ work, explain work procedures and are keenly interested in performance.
Employee-centered Leadership: Managers using employee-centered leader behavior are
interested in developing a cohesive workgroup and ensuring that employees are satisfied
with their jobs. The Michigan Leadership Studies found that both the styles of leadership led
to an increase in production, but it was slightly more in case of production of job-centered
style.

However, the use of direct pressure and close supervision led to decreased satisfaction and
increased turnover and absenteeism.
The employee-centered approach led to the improved work-flow procedure and more
cohesion in interactions resulting in increased satisfaction and decreased turnover and
absenteeism.
This suggested the superiority of the employee-centered leadership style.
The Michigan Leadership Studies were conducted around the same time as the Ohio State
Leadership Studies, which also identified the focus on tasks and people.
The Michigan Leadership Studies added “Participative leadership” to the Ohio findings,
moving the debate further into the question of leading terms rather than just individuals.
Evaluation of Michigan Leadership Studies
The value of Michigan Leadership Studies lies in the analysis of two leadership styles—task
and employee-oriented styles. Instead of restricting to traits of leaders, they concentrated
on the behavior of leaders.
These ‘studies are criticized on the following grounds:
The Michigan Leadership Studies failed to suggest whether leader behavior is a cause or
effect. They did not clarify whether the employee-centered leadership makes the group
productive or whether the highly productive group induces the leader to be employee-
centered.
The Michigan Leadership Studies did not consider the nature of the subordinates’ tasks or
their characteristics. Group characteristics and other situational variables were also ignored.
The behavioral styles suggested by Michigan Leadership Studies have been termed as static.
A leader is supposed to follow either of the two styles, viz., task orientation and employee
orientation. But in practice, a practical style may succeed in one situation and fail in
another.
Moreover, leaders don’t restrict themselves to a particular style. They adopt both the
orientations in varying degrees to suit the particular situation.
Traditional Theories(Trait theory and contingency theory)
Trait Theory
The trait theory of leadership focuses on identifying different personality traits and
characteristics that are linked to successful leadership across a variety of situations. This line
of research emerged as one of the earliest types of investigations into the nature of
effective leadership and is tied to the "great man" theory of leadership first proposed by
Thomas Carlyle in the mid-1800s.
Trait Theory of Leadership Rationale
According to Carlyle, history is shaped by extraordinary leaders. This ability to lead is
something that people are simply born with, Carlyle believed, and not something that could
be developed. Carlyle's ideas inspired early research on leadership, which almost entirely
focused on inheritable traits.
Carlyle's theory of leadership was based on the rationale that:
Certain traits produce certain patterns of behavior.
Patterns are consistent across different situations.
People are "born" with leadership traits.
Even today, books, and articles tout the various characteristics necessary to become a great
leader, suggesting that leadership is somehow predestined in some (or is at least more
likely) while unlikely, if not impossible, in others.
Since the publication of Carlyle's thesis, psychologists have examined and argued about the
trait-based theory of leadership. From the 1940s to the 1970s, psychologist Ralph Melvin
Stogdill suggested that leadership is the result of the interaction between the individual and
the social situation and not merely the result of a predefined set of traits.3
Soon after in the 1980s, James M. Kouzes and Barry Z. Posner posited that credibility was a
key indicator of leadership skills, characterized by such traits as being honest, forward-
looking, inspiring, and competent.
Leadership Traits
While the list of leadership traits can vary by whoever is drawing up the list, a recent study
outlined behavioral traits that separated lower-level supervisors from higher-level
supervisors.
According to the researchers, the traits most commonly associated with great leadership
include:
Adaptability and flexibility: Effective leaders don't get stuck in a rut. They are able to think
outside of the box and adapt quickly to changing situations.
Assertiveness: A great leader is able to be direct and assertive without coming off as overly
pushy or aggressive.
Capacity to motivate people: A great leader knows how to inspire others and motivate them
to do their best.
Courage and resolution: The best leaders are brave and committed to the goals of the
group. They do not hide from challenges.
Creativity: Perhaps most importantly, great leaders not only possess their own creativity,
but they are also able to foster creativity among members of the group.5
Decisiveness: A great leader is capable of making a decision and is confident in his or her
choices.
Eagerness to accept responsibility: Strong leaders take on responsibility and don't pass the
blame on to others. They stand by their success and take ownership of their mistakes.
Emotional stability: In addition to being dependable overall, strong leaders are able to
control their emotions and avoid overreactions.
Intelligence and action-oriented judgment: Great leaders and smart and make choices that
move the group forward.
Need for achievement: Strong leaders have a need to succeed and help the group achieve
goals. They genuinely care about the success of the group and are committed to helping the
group reach these milestones.
People skills: Excellent interpersonal skills are essential for leading effectively. Great leaders
know how to interact well with other leaders as well as with team members.
Perseverance: Strong leaders stick with it, even when things get difficult or the group faces
significant obstacles.
Self-confidence: Many of the best leaders are extremely self-assured. Because they are
confident in themselves, followers often begin to share this self-belief.
Task competence: A great leader is skilled and capable. Members of the group are able to
look to the leader for an example of how things should be done.
Trustworthiness: Group members need to be able to depend upon and trust the person
leading them.
Understanding their followers and their needs: Effective leaders pay attention to group
members and genuinely care about helping them succeed. They want each person in the
group to succeed and play a role in moving the entire group forward.
Contingency Theory
The contingency theory of leadership puts forth the idea that the success of a leader hinges
on the specific situation at hand. Certain factors come into play that define whether a
particular leader or leadership style will be effective for the given situation. Those factors
include the task, the personality of the leader and the composition of the group that is
meant to be led. Its basic assumption is that leadership – success or failure – is situational.
Contingency Leadership Models
There are several different models of contingency leadership that fall under the general
contingency theory umbrella. They include Fiedler’s Contingency Theory, the Situational
Leadership Theory, the Path-Goal Theory and the Decision-Making Theory. While all of these
contingency leadership models are similar on the surface, they each offer their own distinct
views on leadership.
Fiedler’s Contingency Theory
Fiedler’s Contingency Theory puts forth the idea that effective leadership hinges not only on
the style used by the leader, but also on the control held over the situation. In order to
succeed, there must be strong leader-member relations. Leaders must also present tasks
clearly and with goals and procedures outlined. They need to possess the ability to hand out
punishments and rewards, as well.
Fiedler’s Contingency Theory only fits situations where groups are closely supervised and
not team-based. It also uses a least preferred co-worker (LPC) scale to help determine the
type of worker the leader least likes working with. This contingency model emphasizes the
leader’s disposition as the main trait that defines the ability to lead.
Situational Leadership
More formally called Hersey and Blanchard’s Situational Leadership Theory, this contingency
model focuses on leadership style and the maturity of those being led. Situational
leadership theory puts forth the idea that leadership styles hinge on four behaviors: telling,
selling, participating and delegating.
The maturity levels range from an incompetence or unwillingness to perform the task, to a
willingness and ability to perform. The idea is that a successful leader will adapt leadership
techniques to fit the maturity level of the group in question on a situational basis.
Path-Goal Theory
Path-Goal Theory combines two popular theories – goal-setting and expectancy – into one.
It puts forth the idea that effective leaders help those in their direction attain their goals.
Under this contingency model, leaders have the responsibility of making sure their
subordinates have the support and information required to achieve the goals set forth.
Essentially, this theory holds that effective leaders create clear paths to help their
subordinates achieve goals and that they work to remove obstacles that stand in the way.
Decision-Making Theory
Also known as the Vroom-Yetton-Jago Decision-Making Model of Leadership, this
contingency leadership model puts forth the idea that effective leaders size up situations,
assess them and then determine how much support the group will give toward the effort,
adjusting their preferred leadership style to fit.
Applying Contingency Theory in the Workplace
While contingency leadership models diverge on some points, they all share a common
thread. The overlying viewpoint of the contingency theory of leadership is that effective
leadership is contingent on the situation, task and people involved.
Different leaders, each with their own leadership style, will respond differently to a myriad
of factors in the workplace. Among the factors that can affect a leader’s effectiveness are
things like project scope, the size of their team, resources and deadlines. According to
contingency theory, leaders will always find particular situations that challenge them and
must be willing to acknowledge that their success partially depends on their circumstances.
To be great leaders for their teams, managers and supervisors may need to adapt their
leadership style to the current situation. Leadership education and training can help
professionals understand and respond to the complexities of the workplace and excel in
their leadership roles.
Mordern Theories(Charismatic Theories)
Etymology helps to understand and define "charismatic." The word “charisma” is rooted in
the ancient Greek word “kharisma,” meaning “favor or divine gift.” It has come to refer to a
specific set of personal traits that have profound effects on other individuals.
Charismatic leadership is centered in an ability to charm and persuade. When a business,
political or organizational leader is capable of inspiring and triggering emotional responses
in followers, that leader is said to be charismatic. True charismatic leadership evokes
genuine emotional changes in others.
Charismatic leadership isn’t merely the ability to excite an audience. It also includes the
ability to motivate and persuade followers to commit to a goal and take action as part of a
group effort. Charismatic leaders demonstrate sincerity in commitment to a cause (for
example, a business goal). They also exhibit willingness to take reasonable risks or sacrifice
their own comfort in order to achieve the goal. This, in turn, often inspires listeners and
followers to do the same in an effort to take on the leader’s traits and qualities for
themselves.
Modern experts generally identify five characteristics of the charismatic boss:
Confidence: Charismatic leaders exude a calm, strong sense of faith in their skills, experience
and abilities.
Communication: The key to charismatic persuasion rests in the leader’s communication
skills, including the ability to listen proactively.
Focus: Charismatic leaders can focus with laser-like precision on goals, never allowing
distractions to take root or steer them off course.
Creativity: Charismatic leaders generally exhibit a higher degree of creativity and ingenuity
at work, coming up with new ideas and suggestions.
Vision: Finally, leaders with charisma are capable of big-picture creativity, aiming for
inspiring and challenging goals that help inspire others.
Early Development of Charismatic Leadership Theory
While the ideas behind charismatic leadership have been around for a century or more,
modern charismatic leadership theory began in the 1970s with an academic focus on a
leader’s self-assessment. In other words, individual leaders were asked to assess their own
personal traits and behaviors that were believed to be part and parcel of charisma. So, for
example, leaders were identified who believed they shared certain traits in common, such
as confidence or greater than average communication skills. These traits then became part
of the charismatic leader profile.
This theory was further refined over the next two decades to focus on the effect of such
leaders on their followers or team members. When groups of individuals responded with an
emotionally positive impression to a leader’s input and were then motivated to pursue the
leader’s goals and even emulate his behavior, then the leader was deemed to be
charismatic.
Attributional Charismatic Leadership Theory
Another paradigm for evaluating charismatic leadership also focused on traits, qualities and
behaviors but from the viewpoint of others. Charismatic leadership qualities were evaluated
based on how followers assigned certain attributes to persuasive, inspirational or
charismatic leaders.
Charismatic leaders were identified as utilizing interpersonal skills such as social and
personal identification, rapport-building and the internalization of common values in order
to develop emotionally-resonant connections with their followers. However, this theory
focuses on what the follower believes about the leader rather than how the leader behaves
with the follower. In essence, it operates from the principle that charismatic leadership
exists when a follower says it exists.

The Development of Transformational Leadership Theory

Perhaps the biggest development in the study of charismatic leadership is the theory of
transformational leadership. It may be the most studied aspect of leadership in modern
academics.
Its origins lie in the work of political scientist James MacGregor Burns, who established a
paradigm or framework for viewing leadership from a transformational perspective by
contrasting it with what he termed "transactional leadership." This type of leadership
focuses solely on an exchange, much like a consumer purchase, where a buyer exchanges
money for a product. This form of leadership never transcends the specific transaction,
Burns believed.
On the other hand, transformational leadership involved a nurtured relationship in which
both leader and follower feed each other and help inspire change in each other. Through
this continually growing relationship, the parties essentially change the moral norms of
behavior. The leader begins a continuing cycle of change in which the organization itself is
ultimately transformed.
Formal Groups and Informal Groups
Formal Groups
The Formal Groups are formed deliberately and consciously collectively to direct the efforts
of group members, especially the employees towards the accomplishment of organizational
objectives.
The formal groups are formed to fulfill any of the following purposes:
To capitalize the expertise of each individual towards the accomplishment of complex tasks.
To make use of synergy, i.e. collective efforts of group members yields better results than an
individual working separately.
To facilitate a proper decision-making, as with many people in a group the conflicting ideas
and thoughts arise that could be considered to formulate a better decision.
To help others in the group to learn new skills and to know about the details of the
organizational environment.
To satisfy the personal needs of social affiliations, i.e. need to get accepted by others.
The several groups are formed to serve the specific needs of the organization and can be in
any of the following forms:
Committees
Task Force
Quality Circle
The formal groups, mostly relate to the organizational missions and can either be
permanent or temporary. The permanent formal groups are in the form of top management
team such as the board of directors, management committees, several departments within
the organization etc. The temporary formal groups are created to fulfill the specified set of
objectives.
Informal Groups
The Informal groups are those groups that get created spontaneously as soon as individuals
start interacting with each other.
The informal groups are formed by the individuals to satisfy their social needs of affiliation,
and they emerge on their own and hence not created by the management of the
organization. Now the question arises that how the informal groups come into the
existence? For this, various theories have been proposed by several theorists, which are as
follows:
Propinquity Theory: The propinquity means nearness, hence an individual forms an
affiliation with others due to the geographical proximity amongst them. In the
organizational context, it is often seen that individuals working in the same department
tend to affiliate with each other more than with the others who work in different
departments.
Homan’s Interaction Theory: According to this theory, the affiliations are based on the
interactions, activities and sentiments. It is assumed that more activities people share with
each other more will be the interaction among them and more sentiments they generate for
each other. Here, the groups are formed not only on the basis of physical proximity but also
to accomplish some common group goal.
Balance Theory: This theory posits that people get attracted towards each other on the basis
of the similar attitudes and common behavior they carry towards the given set of objects or
goals. Once the group is formed on these common traits the group members try to maintain
that balance and in case the balance is not restored, the group gets dissolved.
Exchange Theory: This theory is based on the assumption that people involve in social
affiliation on the basis of perceived reward-cost relationship, i.e. what an individual gets or
has to forego to be a member of a certain group. The reward here means, gratifying the
needs while the cost is in the form of anxiety, embarrassment, fatigue, etc.
The important thing to note is that these groups are not formal and hence are not
controlled and regulated by the organization.
Role Concept
A concept is a role if it is not rigid, which means it is not essential to all or some of its
instances. For example, invasive species is a role because certain species may become
invasive at some point in time and become native at a later point in time.
The concept underlying this approach is the recognition that man is a role player, that every
individual is characterized by a certain range of roles which dominate his behavior, and that
every culture is characterized by a certain set of roles which it imposes with a varying
degree of success upon its membership.
A role is a comprehensive pattern of behaviour that is socially recognized, providing a means
of identifying and placing an individual in a society. It also serves as a strategy for coping
with recurrent situations and dealing with the roles of others (e.g., parent–child roles).
 MODULE 5
Improving Interpersonal Effectiveness
Interpersonal Communication
Interpersonal communication is the process of exchange of information, ideas and feelings
between two or more people through verbal or non-verbal methods.
It often includes face-to-face exchange of information, in a form of voice, facial expressions,
body language and gestures. The level of one’s interpersonal communication skills is
measured through the effectiveness of transferring messages to others.
Commonly used interpersonal communication within an organization include daily internal
employee communication, client meetings, employee performance reviews and project
discussions. In addition, online conversations today make a large portion of employees’
interpersonal communication in the workplace.
Therefore, interpersonal skills are crucial for business success. Let’s now take a look into
why interpersonal communication is crucial for your career development and productivity in
the workplace.
1. Problem solving
Interpersonal communication skills are necessary because they allow people to discuss
problems and weigh the pros and cons of alternatives before coming up with the final
solution.
For example, brainstorming exercises are situations in which interpersonal communication
comes into play as it is very important that everyone feels respected and free to share their
voice, ideas and views.
2. Alignment with business goals
Poor communication between employers and employees can harm the business in many
ways. When managers and leaders are unable to clearly communicate tasks, workers can
quickly become frustrated and disconnected with the business goals.
Moreover, many employees say that their managers don’t give them clear directions and
goals for their work.
Therefore, managers should be able to, with proper online and offline communication as
well as the right internal communication tools, continuously align employees with the
business strategy.
3. Trust
According to the American Psychological Association, a quarter of employees in the US do
not trust their employers, and only about 50% of them believe that their bosses are open
with them.
Lack of trust and transparency are some of the most common causes of poor workplace
communication.

Interpersonal communication skills are crucial for improving trust and workplace
communication, and all employees, especially business leaders, should therefore improve
communication with their employees.
4. Change management
Good interpersonal communication is very important during change management efforts
within organizations.
Effective employee communication helps employees better understand the change, align
with it and collaboratively work towards implementing the change successfully.
5. Company culture
Interpersonal relationships, especially when executed well, are important for an
organizational culture to thrive.
When employees possess good interpersonal communication skills, organizational culture
becomes more synergic and positive. With bad interpersonal relationships, on the other
hand, negativity, confusion, and conflicts become inevitable.
This ultimately ruins the work environment, reduces employee productivity, and adversely
affects the company’s bottom line.
6. Employee recognition
Good interpersonal communication drives more employee recognition. When employees
have good interpersonal relationships with each other and their managers, they are more
likely to recognize each others’ good work and give constructive feedback.
7. Workplace miscommunication
Managers who maintain professionalism, open workplace communication and a positive
attitude are more likely to be seen as approachable by their employees.
When employees feel like they can speak openly with decision-makers, workplace
miscommunication, gossip and rumors are much less likely to happen.
8. Personal relationships
Interpersonal skills are extremely important for creating and maintaining meaningful
personal relationships in the workplace.
People with good interpersonal communication skills can, therefore, build healthy
relationships with their colleagues and work much better as a team.

9. Effective management and leadership

The ability to foster interpersonal relationships, establish trust and communicate clearly are
all crucial skills for an effective leader.
When a manager has poor interpersonal communication skills, they can expect to irritate
and confuse employees. In fact, there is a greater need for managers to work on their
interpersonal skills than there is for the average employee.
10. Employee success
Good interpersonal communication skills are also necessary for managers to help their
employees do their jobs successfully. Leaders need to be able to pass on the right skills to
the employees that will enable them to perform their tasks and achieve business goals.
Moreover, they should be the ones to teach their employees interpersonal communication
skills.
11. Conflict management
Conflict is normal in the workplace, and we can’t always expect from our employees to
resolve conflicts in a calm and timely manner. When conflicts like this arise, interpersonal
communication becomes crucial for resolving them.
Conflict management cannot happen without effective interpersonal communication. In
fact, all conflict management strategies that use communication to soften situations in
stressful environments are much more successful.
12. Career development
As many employers are looking for workers with good communication skills, continuous
improvements of interpersonal communication skills can bring career progressions for many
employees.
Moreover, in a survey conducted by Workforce Solutions Group, it was revealed that more
than 60% of employers say that applicants are not demonstrating sufficient communication
and interpersonal skills to be considered for jobs.
In addition, the increasing prevalence of communication technologies means that
employees and communicators now have to adapt to the new employee communication
trends.
13. Remote work
This year, we have all witnessed the importance of communication in the workplace. With
the emergence of remote work, interpersonal communication among peers, colleagues,
managers and leaders has been disrupted. Yet, it is more important than ever before.
In order to keep their cultures open and transparent, employers need to continue to drive
engaging workplace conversations even when employees are physically dispersed.

14. Crisis management

In addition to remote work, many employers will remember 2020 as the year of crisis
management. One of the characteristics of companies that manage crisis more successfully,
is the ability to drive interpersonal communication within the workplace.
When employees are connected and have the ability to collaborate efficiently, it is much
easier for organizations to communicate the impact of the crisis on both personal and
company-wide levels.
Introduction to TA
Transactional Analysis (TA) is a model for understanding human behaviour, communication
and relationships. It was originally developed in the 1950s by the late Eric Berne, MD. This
introductory course will examine the theory of TA, including the structure of personality;
transactions, or the way we relate to others; time structuring; the psychological “games” we
play; and life scripts. Members of the course will have the opportunity to apply the theory
to their own behaviour and the behaviour of others in the group.
Transactional Analysis (TA) is a psychological method and initially reminds many people of
bank transactions. But the technical-sounding word says exactly what it's all about:
Transactional Analysis focuses on transactions of communication units. It's about
conversation transactions when two people talk. Already after reading this text, you might
get an idea of why communication sometimes goes wrong and how you can change that.
When you engage in contact with a human being, the smallest communication components
(transactions) are transferred back and forth. Those who can analyze these transactions can
draw conclusions about psychological processes in humans, namely:

about the personality of other

about your own personality
about the dynamics of your relationship
You meet me - I react to that - this is a transaction. These transactions can be analyzed:
Transactional Analysis!
TA was developed in the mid 20th century by psychiatrist Eric Berne (1910-1970). Its models
are constantly evolving.
Transactional Analysis is a collection of concepts that can help you better understand
yourself and others. With it you can improve your communication skills. For example, to
better resolve a conflict. With its comprehensible concepts and tools, it gives you
opportunities to lead a more self-determined life.

TA offers suitable concepts for different personalities, circumstances and situations. Let's
name a few. See below for a first explanation or click on the link to get a detailed
description of the concept:
Ego states
Transactions
Life Script
Psychological Games
Drivers
Rackets and feelings
Passivity concept
and many more
What exactly is a concept?
Concepts can be seen as maps. Maps depict important information of reality. There are
roads that lead to our destination. They serve as orientation. When moving around as a
stranger in unfamiliar surroundings, it is good to have helpful information for orientation.
Depending on the situation, it seems reasonable to have different maps. A map for hiking,
cycling, motorways or a map for mountain hiking. This is no different in Transactional
Analysis. The individual concepts are like road maps for social situations. What should be
done to avoid conflicts? How can I avoid misunderstandings? How can goals be achieved in a
fair way? These kinds of mental maps are offered Transactional Analysis.
 MODULE 6
Conflict Management and Team Building
Sources of Conflict
There are several sources of conflict. However, these sources depend on the mode
(mindset) of the parties involved in a situation. Their mutual understanding, trust and
openness determine the mode. The mode influences their perception which may cause
conflict. For example, a difference in the goals of two individuals in a group of a potential
source of conflict. One member's goal may be to turn out the maximum number of product;
the goal of other member may be to ensure quality of the product. Different researches
have shown or identified different sources of conflicts. Poor communication, incompatible
goals, value and culture clashes, task inter-dependencies, incentive and reward system and
resource allocation and scarce are the basic sources of having conflict in an organization.
1. Poor Communication
The greatest source of organizational conflict is poor communication. Communication
breakdown may happen where many different people work together, each focusing on work
problems in their own way without consulting each other. In other words, the
communication source relates to three contradictory forces which steam from semantic
problems, insufficient exchange of information, misunderstandings and noise. Although all
conflicts are not the outcome of poor communication, there exists evidence to support the
assumption that communication gaps hamper collaboration and foster misunderstanding.
Semantic problems are caused on account of divergent training, selective perception and
insufficient information about others. The potential for conflict intensifies in the face of
either has little or too much communication.
2. Incompatible Goals
Differences in group goals can easily lead to group conflict. Goal compatibility implies goals
attainment by one or more other groups. The achievement of one department's goal often
interferes with another department's goal. Quite often this is due to high horizontal
differentiation and task specialization. For example, the production department might
perceive its goals as being potentially incompatible with those of marketing. Production
department may pose such questions:
Why do not we have accurate sales forecasts?
Is it possible to keep everything in inventory?
Why don't we have enough capacity?
Why don't we ever have the right merchandise in inventory?
3. Values and Culture Clashes

Differences in values can cause conflicts between generations, between men and women
and between people with different value priorities. Consider the conflicts that might arise
between workers, who realize the value of money in place of unused holiday, and
executives, who never take time off, but scowl on those who do not take holidays and prefer
to do extra work for extra pay. In other words, the differences in goals among members at
the various departments in the organization are frequently accompanied by difference in
attitudes, value and perceptions that can also lead to conflict.
Similarly, culture clashes can occur between workers, not only from different countries but
also from different parts of the same country. Today's diverse work force is a kaleidoscope
of cultures, each with its own unique qualities. The individual bearers of different cultural
traditions could easily come into conflict with one another. The issues may be as simple as
one person's desire to dress in ethnic fashion and a supervisor's insistence on strict
adherence to the company dress code to as complex as work ethics.
4. Task Interdependence
Task interdependence refers to the dependence of one unit on another for resources of
information. In other words, task interdependence relations exist when two groups
coordinate or collaborate with one another. Coordination and collaboration exist when the
sub-tasks allocated to different groups need to be sequenced and agreed upon by the two
groups. Collaboration occurs when the two groups share joint responsibility for certain
tasks. A dependent task relationship exists between two groups of one group is dependent
upon the former for resources. The relationship between mutual task dependence and
conflict is not direct. But, in general, it can be said that as interdependence increases, the
potential for conflict increases.
5. Incentive and Reward System
When tasks are independent, competition can hurt cooperation among members and
performance may actually decline. For example, when all students in a group received the
same grade regardless of individual contribution, coordination, communication and quality
seem better. But when students are graded according to their personal contributions to the
group, they try to succeed at the expense of others and seem more frequently in conflict.
Similarly, inter-group conflict is more likely to occur when the reward plan is tied to
individual group performance rather than to overall organizational performance. If
departments are regarded only for departmental performance, managers are motivated to
excel at the expense of others.
6. Resource Allocation and Scarce
Resources symbolize power and influence and are means of accomplishing goals. Resources
are always scarce. In our organization, conflict arises at the time of allocating the resources
like money, material, manpower, furniture, space etc. Conflict may be minimized if the
organization is prospering and new resources are growing by allowing a greater share to
each and every department.
According to some other researches completed by experts, source of conflict arise due to
the following four sources.
Personal differences (Perceptions and expectations)
Informational deficiencies (Misinformation and misrepresentation)
Role incompatibility (Goals and responsibilities)
Environmental stress (Resource scarcity and uncertainty)
Types of Conflict
They are:
Intrapersonal
Interpersonal
Intragroup
Intergroup
Intrapersonal Conflict
The intrapersonal conflict is conflict experienced by a single individual, when his or her own
goals, values or roles diverge. A lawyer may experience a conflict of values when he
represents a defendant he knows to be guilty of the charges brought against him. A worker
whose goal it is to earn her MBA might experience an intrapersonal conflict when she’s
offered a position that requires her to transfer to a different state. Or it might be a role
conflict where a worker might have to choose between dinner with clients or dinner with
family.

Interpersonal Conflict
As you might guess, interpersonal conflict is conflict due to differences in goals, value, and
styles between two or more people who are required to interact. As this type of conflict is
between individuals, the conflicts can get very personal.

Intragroup Conflict
Intragroup conflict is conflict within a group or team, where members conflict over goals or
procedures. For instance, a board of directors may want to take a risk to launch a set of
products on behalf of their organization, in spite of dissenting opinions among several
members. Intragroup conflict takes place among them as they argue the pros and cons of
taking such a risk.

Intergroup Conflict
Intergroup conflict is when conflict between groups inside and outside an organization
disagree on various issues. Conflict can also arise between two groups within the same
organization, and that also would be considered intergroup conflict.
Within those types of conflict, one can experience horizontal conflict, which is conflict with
others that are at the same peer level as you, or vertical conflict, which is conflict with a
manager or a subordinate.
Negotiation Process

Negotiation process permeates the interactions of almost everyone in groups and

organizations.
In today’s loosely structured organizations, in which members work with colleagues over
whom they have no direct authority and with whom they may not even share a common
boss, negotiation skills become critical.

The essence of the five steps of the negotiation process is the actual give and take in trying
to hash out an agreement, a proper bargain suitable for all parties.

The 5 steps of the negotiation process are;

Preparation and Planning.

Definition of Ground Rules.
Clarification and Justification.
Bargaining and Problem Solving.
Closure and Implementation.
1. Preparation and Planning
Before the start of negations, one must be aware of the conflict, the history leading to the
negotiation of the people involved and their perception of the conflict, expectations from
the negotiations, etc.

Before starting the negotiation, it needs to do homework.

What’s the nature of the conflict?
What’s the history leading up to this negotiation?
Who’s involved and what are their perceptions of the conflict?
Moreover before any negotiation takes place; a decision needs to be taken as to when and
where a meeting will take place to discuss the problem and who will attend.

Setting a limited time-scale can also be helpful to prevent disagreement from continuing.
This stage involves ensuring all the pertinent facts of the situation are known in order to
clarify own position.
It also needs to prepare an assessment of what the other parties’ negotiation’s goals are.
What are they likely to ask for?
2. Definition of Ground Rules
Once the planning and strategy are developed, one has to begin defining the ground rules
and procedures with the other party over the negotiation itself that will do the negotiation.

Where will it take place?

What time constraints, if any will apply?
To what issues will negotiations be limited?
Will, there be a specific procedure to follow in an impasse is reached?
During this phase, the parties will also exchange their initial proposals or demands.
3. Clarification and Justification
When initial positions have been exchanged both the parties will explain amplify, clarify,
bolster and justify their original demands. This need not be confrontational.
Rather it is an opportunity for educating and informing each other on the issues why they
are important and how each arrived at their initial demands.

This is the point where one party might want to provide the other party with any
documentation that helps support its position.

4. Bargaining and Problem Solving

The essence of the negotiation process is the actual give and take in trying to hash out an
agreement, a proper bargain. It is here where concessions will undoubtedly need to be
made by both parties.

5. Closure and Implementation

The final step in the negotiation process is a formalization of the agreement that has been
worked out and developing and procedures that are necessary for implementation and
monitoring.
For major negotiations – this will require hammering out the specifics in a formal contract.

Negotiation Process has five stages. In all steps of a negotiation process, the involved parties
bargain in a systematic way to decide how to allocate scarce resources and maintain each
other’s interests.

Negotiation Issues

As you might guess, negotiations don’t always go smoothly. Before you step into a
negotiation, you’ll want to understand what kind of issues could throw a wrench into the
bargaining machinery and how others manage those variables. Let’s take a look at some
common issues that contemporary negotiators face, and how they can be overcome.

Personality
If “talent is just personality in the right place,” then what are the right and wrong kinds of
personality traits for negotiation? Tomas Chamorro-Premuzic, professor of business
psychology at University of London and Columbia University, suggests that high emotional
intelligence is key if a negotiator is going to be successful. Emotional intelligence is the
capacity to be aware of, control, and express one’s emotions, and to handle interpersonal
relationships judiciously and empathetically.

In his article, “The Personality Traits of Good Negotiators,” for the Harvard Business Review,
Chamorro-Premuzic cites people who show neurotic tendencies and “Machiavellianism” (a
term that describes a person’s tendency to exploit and manipulate others) as those who can
expect to experience less attractive results at the negotiation table.

If the process is followed and strategic considerations are made for the problem and people
involved, personality should neither help nor hinder the negotiation process.

Gender
Men and women don’t necessarily negotiate differently; studies show that men negotiate
slightly better outcomes than women do in the same situations, but the difference is often
nominal. Continued emphasis is placed on collaborative, integrative negotiation, and both
men and women can succeed with this approach. But there is evidence that gender affects
the outcome of bargaining. Why is that?

Statistically speaking, women tend to fall short of their male counterparts is when they’re
negotiating for themselves; however, research has shown that when women negotiate for
others, they often outperform men. What’s the trick to getting past this? Fatimah Gilliam,
founder and CEO of The Azara Group, a leadership development and strategy consulting
business, offered advice on overcoming this hurdle in an article for University of
Pennsylvania’s Wharton School of Business. “Change your perspective…think beyond
yourself,” she said. “You’re negotiating for your family. You’re negotiating, if it’s
compensation, so that you can have more money to take care of your parents when they’re
old, right?”

Research also shows that women have less confidence in their negotiation abilities, which
may lead to hesitation to engage in negotiation practices. Women penalize themselves by
avoiding these situations when engagement is in their best interest.

Cultural Differences
Negotiation styles vary across cultures, and it’s helpful to keep in mind cultural differences
when engaging in negotiations. While we don’t want to risk sounding stereotypical, here are
some examples of how different cultures approach negotiation:

Italians, Germans, and French don’t “soften up” a party in the negotiation with praise, and
hearing another party do this seems manipulative to them.
The French enjoy conflict, so they tend to be longer in the negotiation process and aren’t
terribly concerned with whether the other party likes them.
The Chinese also draw out negotiations because their belief is that they never end, so when
parties from other cultures feel like they’re coming to a conclusion, the Chinese party may
just decide to start over.
Japanese negotiators work to develop relationships, so tying up loose ends and details in an
agreement may have no importance to them.
The British often complain that their U.S. counterparts talk too much.
Indian executives often interrupt each other, and when other parties are listening intently
and not interrupting, they feel as though they aren’t being heard.
Americans mix business and personal lives, and other cultures compartmentalize them, so
when Americans ask, “How was your weekend?” it can seem intrusive to other cultures.
Russians ignore deadlines and make no concessions because they view concessions as a sign
of weakness.
The cultural aspect of negotiation significantly affects the amount of time for preparation
and planning, so the negotiator can determine how to handle these cultural differences.

Negotiations are often difficult even when there are no obstacles involved, but being aware
of issues triggered by personality, gender and culture can help the parties overcome them
and deal with the matter at hand.

Unethical Negotiations
When a person is in a negotiation process to get something he or she needs, ethical
concerns may surface. How far do you go to get what you want? Should you always tell the
truth and reveal your plan, or does doing so compromise your position? Difficult questions
like these arise often in negotiations.

Some unethical (or at least questionable) behaviors that often occur during negotiations
include:

Selective disclosure: highlighting positive information and downplaying (or omitting)

negative information
Misrepresentation: negotiators misstate facts or misstate their position (e.g., they are
willing to accept a lower price than they originally stated)
Deception and lying: negotiators provide factually incorrect information that leads to
incorrect conclusions
False threats and false promises: negotiators mislead the other party as to actions they
might take at the end of the negotiation process
Inflicting direct or indirect harm: negotiators intentionally sabotage the other party’s
chances of success
Just because something is unethical does not mean that it’s illegal. A lot of unethical
behavior is still on the right side of the law. The most you can do to monitor ethical behavior
in a negotiation is to bring it to the table yourself and be willing to say no and walk away if
the other party does not.

Mistakes in Negotiation
Preparation and planning are key in avoiding common negotiation mistakes, but even the
most experienced negotiator can still make them. Perceptual bias and poor decisions
account for most of them. Let’s look at a couple:

Winner’s curse. This is when a negotiator makes a high offer quickly and it’s accepted just as
quickly, making the negotiator feel as though he is being cheated. Lack of information and
expertise are chief among the issues that cause this mistake.
Mythical fixed pie. The negotiator assumes that what’s good for the other side is bad for his
side. For instance, imagine that two parties that want an orange. If a negotiator makes the
mythical-fixed-pie mistake, he divides that orange in half and gives each party a piece. He’s
let competitiveness get in the way of coming up with a creative solution, and if he’d
listened, he’d have understood that one party wanted the meat of the orange and the other
wanted the rind.
Overconfidence. The negotiator puts too much stock in his ability to be correct, and thus
uses high anchors for his initial offers and adjustments. His lack of information and distorted
self-perception will cost him a fairly negotiated deal.
Irrational escalation of commitment. This is when the negotiator continues a course of
action long after it’s been proven to be the wrong choice. Causes of this include an
insatiable need to win and ego, and it shows a lack of commitment to actually arriving at a
fair deal.
 MODULE 7

Concepts of Organizational Culture and Organizational Development

Definition of Organizational Culture

Organizational culture (OC) is composed of beliefs and expectations shared by members of

an organization. Organizational culture consists of common norms, values, and beliefs of
individuals within that group.In a historical context, this could be considered the cultural
equivalent of the rituals, rites, symbols, and stories of a people.By today’s standards,
organizational culture usually refers to the mutual outlook, assumptions, and standards of
an organization’s membership. Organizational culture determinants include an
organization’s structure, leadership, mission, and strategy. Organizational culture can give
employees a feeling of unity and purpose and can help a team cope with complex and
dynamic changes.A strong organizational culture can serve as an asset in helping team
members accomplish goals and to experience fulfillment in their careers.In fact, an analysis
of a company’s OC can be a predictor of factors such as job satisfaction, employee
commitment to the organization, or the likelihood of success of a quality improvement
initiative.

Culture can be framed through various lenses. For example, one framework is Hofstede’s
cultural dimensions, which contends that culture is based on the dimensions of masculinity,
power distance index, uncertainty avoidance, and pluralism.

MODULE 8
Organizational Development
Concept of OD

Organizational development, also known as OD, has a number of meanings. It may refer to a
planned and systematic approach to improving the effectiveness of a company, government
department, or any organization – one that aligns strategy, individuals and processes. It
includes the practice of planned, systematic change in the values, attitudes, and beliefs of a
company’s employees through the creation and reinforcement of medium- or long-term
training programs.

A growing field of Human Resource Management, organizational development is the study

of successful organizational performance and change. The subject emerged in the 1930s
from human relations studies, during which psychologists became aware that organizational
structures and processes influence the motivation and behavior of the workforce.
OD today also encompasses the aligning of organizations with their complex and rapidly
changing environments through organizational learning, knowledge management, and
adapting organizational values and norms.

Phases of OD

1: Recognition: Recognition of a need for change can be brought about by many different
events. An updated disaster assessment, a budget analysis, or periodic audits may reveal
problems which must be dealt with. It is important that managers identify sources of
feedback so that an information system can be developed and the need for change can be
identified promptly.
2: Diagnosis of Problems: Before appropriate action can be taken, the problem is defined
and all its aspects are examined. To diagnose the problem: identify the problem; determine
what must be changed to resolve it; and determine what objectives are expected from the
change (and how they can be measured).
3. Planning for Change: When the real problem of the organization is identified, OD
consultant plans the various courses of action in the light of these problems. Since there are
many techniques involved programme, attempts are made to transform diagnosis of the
problems into proper action plan involving over all goals for OD, determination of the
approach suitable for attaining goals, and sequence for implementing the approach.
4. Intervention in the System: After the techniques for OD programme and time sequence
are determined, OD consultant attempts to change the organization and its people. It is a
long affair and hence a gradual process. For example, most OD programmes begin with
training the people in the light of the proposed organizational
change. Gradually intervention may be attempted at all the three level – individual, group
and organization.
5. Evaluation and Feedback: OD work must include a high degree of accountability
for results. Processes, results, successes and failures should be measured and
documented. Progress of implementation as reflected in data associated with
indicators should be monitored and adjustments should be made as needed.
Careful monitoring and evaluation of the results of OD programmes provide
feedback regarding what is going on. When any discrepancy appears between
what is intended and what is happening, the change agent goes back almost to
the first step, that is problem identification and diagnosis, though in this case,
work involved may be slightly different. In the very beginning of problem
identification and diagnosis, emphasis is more on data collection and its analysis;
at this stage, emphasis may be more on analysis of OD programme techniques
themselves. Moreover, feedback can be used as an energizing factor which will
indicate what further action is necessary. Most common techniques for getting
feedback are critique sessions, systematic appraisal of change efforts, and
analysis of pre-training and post-training behavioural patterns based on actual
operation.
OD Interventions

14 Type of OD Interventions techniques is discussed briefly below:

 Diagnostic activities: These are fact-finding activities designed to find the current
state of a client system.

 Team building activities: These are designed to enhance the effective operation of
teams.

 Intergroup activities: these are the activities designed to improve the effectiveness
of interdependent groups.

 Survey feedback activities: These activities rely on gathering the information that is
used in understanding problems or opportunities.

 Education and training activities: – Activities designed to improve individual’s skills

abilities and knowledge.

 Techno structural or structural activities: Activities designed to improve the

effectiveness of organizational structure & Job design.

 Process consultation activities: The activities that are designed in consultation to

help the client to perceive understand and act upon events that occur in the client’s
environment.

 Grid organisation development activities: These activities are developed by Robert

Blake and Mouton which constitutes of six phase model involving the total
organisation.

 Third party peacemaking activities: Activities designed and conducted by a skilled

consultant to manage interpersonal conflict in the process of organizational change.

 Coaching & Counseling activities: Activities that help the individual to define learning
goals, to understand others behaviour & to see how others see their behaviour.

 Life & Career planning activities: Activities that enable individuals to focus on their
life and career objectives & way to achieve them.
  Planning & goal-setting activities: Activities that include goal setting, problem solving,
discrepancies if any to achieve objectives.

 Strategic Management activities: Activities that link the interventions with basic
mission & environmental scanning & which helps in long-range planning.

 Organization Transformation activities: Activities that involve large scale system

changes or fundamental change in the nature of an organization.

Limitations of OD Interventions

1. Major time requirements: OD programs take a long time. Not only that for taking any
action plan for OD, but planners also take much time.

2. Substantial expenditure: It costs many. A lot of funds are required to execute to OD

program. Sometimes an organization cannot manage funds.

3. Delayed pay off period: In some cases, the OD program is affected by delayed pay off
period. That is why some organizations become reluctant.

4. Possible failure: OD program may be failed due to some reasons. These failures are both
human-related and non-human related.

5. Possible envision of privacy: The privacy of the organization may be leaked out through
the OD program. Due to the involvement of irresponsible people, it happens so.

6. Possible psychological harm: Some psychological harm is experienced while taking the OD
program. Employees with strong psychology can protect it.

7. Potential conformity: Due to potential conformity with and results of different actions,
OD programs might create misunderstanding and confusion.

8. Emphasis on group process: Very often the emphasis is laid on the group process. If the
group does not mean so or take it seriously, and the OD program is affected.

9. Conceptual ambiguity: OD program concept, its operational possibility potential output,

etc. may not be clearly understood by some people who are involved with OD.

10. Difficulty in evaluation: The evaluation of the OD program does not take place properly.
This can raise many objectives from some corners.
11. Cultural incompatibility: If the OD program does adjust with the existing culture, it can
bring desired results.

Concept of Morale

The organisation’s focus is always on performance. The performance and efficiency of

operation depends upon employee’s morale. ‘Morale’ is an attitude of satisfaction with
desire to continue in and willingness to strive for the goals of a particular organization. It
generally refers to feeling of enthusiasm, zeal, confidence in individuals or groups that they
will be able to complete the tasks assigned to them. A person’s enthusiasm for his job
reflects his attitude of mind to work, environment and to his employer, and his willingness
to strive for the goals set for him by the organization in which he is employed.

Concept of Job Satisfaction

Job satisfaction is one of the most researched variables in the area of workplace psychology
and has been associated with numerous ranging from leadership to job design. It can be
defined as an employee’s attitude towards the job. It is not same as motivation, rather it is
concerned with the attitude and internal state of an individual regarding a particular job. It
could, for example, be associated with a personal feeling of achievement, and hence,
shaped or determined by pay, supervisory style, and age factors. If the existing job fails to
provide psychological or physiological need of an individual, satisfaction from the job might
be low.

The concept of job satisfaction, viewed through different lenses by various scholars, is
defined differently. Greenberg and Baron (2008), for instance, viewed job satisfaction as a
feeling that can produce a positive or negative effect toward one’s roles and responsibilities
at work and added that it is important to understand the concept of job satisfaction as there
is no single way to satisfy all workers in the workplace.

More specifically, job satisfaction can be explained as an employee’s general attitude

towards the job. It is a pleasurable feeling that results from an employee’s perception of
achieving the desired level of need or satisfaction. Job satisfaction fulfills an individual’s
psychological and physiological needs through the organizational process. It is a
multidimensional attitude which is made up of the attitude towards pay, promotions, co-
workers, supervision, the work environment and so on. High job satisfaction implies that the
employees are liking the job, whereas, low job satisfaction relates to the disliking of the job
by individuals. Job satisfaction is an intangible variable which is expressed through
emotional feelings.

Therefore, we can conclude that job satisfaction is an employee’s positive response toward
the various aspects of a job. It helps to improve job performance and can be determined by
the deviation between employee’s expectation about job outcome and what the job
actually offers.

Considering that job satisfaction impacts every employee across the globe it is hardly
surprising that it has received a lot of attention in the research literature. However, this has
lead to a large number of definitions, theories, and measures. At a European level, the focus
has been less about these traditional theories of job satisfaction. Instead, job satisfaction is
typically examined as a consequence of workplace stress and the job demand-control
model.