ORGANISATIONAL BEHAVIOUR

II-M.COM

UNIT I
Introduction to Organizational Behaviour and Learning
Introduction to Organizational Behaviour – OB Models - Challenges facing management – Personality – Perception- Attitudes – Values.
Organisational Learning: Meaning, Theories(Chris Argyris and Donald Schon: Espoused theory, Theory-in-use, Three levels of learning)
Introduction to learning organisation.
UNIT II
Motivation and Job Satisfaction
Motivation Theories – Content theories (Maslow, Herzberg, ERG), Process Theories (Vroom, Porter and Lawler) – Job Satisfaction-
Organisational commitment.
UNIT III
Organisational structure and Communication
Organisational structure- Factors, Forms. Importance of virtual organisations -Organisational communication- Importance, Forms, Functions.
Organisational Climate and
Culture. Business communication: Harnessing Business Emails and Corporate Communication tools
UNIT IV
Transactional Analysis and Organizational Conflicts
Transactional analysis: Meaning, Benefits, Levels of self-awareness, Analysis of transactions. Organizational Conflicts – Process, Levels,
Conflict management. Negotiation – Types and Process - Introduction to Workplace Spirituality.
UNIT V
Contemporary practices in Organisational Change and Development International Organisational Behaviour Practices - Organizational Change
and Change Management. Organisational Development – Meaning, Models and Interventions.
UNIT I
Introduction to Organizational Behaviour and Learning
Introduction to Organizational Behaviour – OB Models - Challenges facing management – Personality – Perception- Attitudes – Values.
Organisational Learning: Meaning, Theories(Chris Argyris and Donald Schon: Espoused theory, Theory-in-use, Three levels of learning)
Introduction to learning organisation.

1.1Meaning of OB
Organizational behaviour is the study of individuals, groups and organizational systems.
OB is considered as an art of applied science which deals with the emotions, feelings, believes, perceptions, intellectuality and mentality of
people working in an organisation.

1.2Definitions of OB

According to Clark “Organisational behaviour study means how an individual or a group of individual act in the organisation”

According to Stephen P Robins “it is a systematic study within organisation which is use to exhibit people attitude and their actions towards the
work.”

1.3Scope Of Organizational Behaviour

Individual Behaviour
The study of individual traits and how they influence behaviour at work helps in understanding personality, job performance, employee
behaviour, employee engagement, and job satisfaction.
 Personality and Traits: Individual behaviour studies how unique characteristics like introvert and extrovert employees as well as
emotional stability impact work performance and interactions.
 Attitudes and Job Satisfaction: It examines how employee attitudes towards their job, colleagues, and company affect motivation,
productivity, and retention.
 Perceptions and Cognitive Biases: Understanding how employees perceive their environment and how cognitive biases influence
their decisions and actions helps minimise misunderstandings and errors.
 Motivation and Incentives: This includes understanding what drives employees to perform well, such as intrinsic and extrinsic
motivators, and how incentives can boost engagement and productivity.
 Learning and Development: It focuses on how individuals acquire new skills and knowledge and the impact of training programs on
performance and career progression.

Group Behaviour

Team building is the process of improving collective performance and enhancing communication, collaboration, and overall group effectiveness.

Managing and resolving disputes is crucial for a healthy work environment, requiring an understanding of conflict dynamics.
  Communication Patterns: Group dynamics studies how information is shared within a team, the effectiveness of communication
channels, and how clear and open communication leads to better collaboration.
 Leadership Roles: It examines different leadership styles within groups, how leaders influence group performance and the impact of
leadership on team morale and motivation.
 Team Cohesiveness: Understanding what makes a team cohesive, including trust, shared goals, and mutual respect, and how cohesion
affects productivity and job satisfaction.
 Conflict Resolution: It involves studying the sources of conflict in groups, how conflicts are managed, and strategies for resolving
disputes to maintain a positive and productive team environment.
 Group Decision-Making: Exploring how groups make decisions and how different perspectives lead to innovative solutions.
Organizational Structure

The arrangement of individuals within an organization, based on rank and authority, helps define the chain of command and reporting

relationships. Clear job roles, with specific duties and responsibilities assigned to individuals.
 Hierarchy and Authority: Within the scope of organizational behaviour, emphasis is also put on how different levels of authority and
clear hierarchical structures influence employee behaviour and decision-making efficiency.
 Role Clarity and Responsibilities: It is necessary to understand the importance of well-defined roles and responsibilities in reducing
ambiguity, enhancing performance, and ensuring smooth operations.
 Types of Organizational Structures: Analyzing various structures like flat, hierarchical, and matrix organizations, and their impact
on communication, collaboration, and flexibility.
 Workflow and Coordination: Studying how organizational structure affects workflow, the ease of coordination between departments,
and the overall efficiency of processes.
 Adaptability and Change Management: Exploring how different structures support or hinder the organization's ability to adapt to
changes and implement new strategies or technologies effectively.

Processes & Practices

Effective communication, crucial for coordination and collaboration, involves the exchange of information and understanding between

individuals or groups.
 Technical Skills: The specific technical abilities required to perform certain tasks or jobs are usually outside the focus of
organizational behaviour, which covers the human aspects instead of technical competencies.
 Financial Management: Financial analysis, budgeting, and accounting practices are not within the scope of organizational behaviour
since these focus more on people than financial metrics.
 Product Design and Development: The process of creating and developing new products or services including technical
specifications.
 Operational Processes: Detailed operational procedures, logistics, and supply chain management are not included within the scope of
organizational behaviour. It focuses on human interactions and behaviour rather than technical processes.
 Legal Compliance: Specific legal and regulatory compliance details, such as legal standards and detailed regulatory requirements, are
not covered.

Change Management

Change management involves approaches for implementing organizational change, which include planning, communicating, and executing

change initiatives.

Organizational Development
Promoting diversity and inclusiveness at work sparks creativity and innovation. Programs that enhance staff members' general welfare, such as
their physical, mental, and emotional well-being, may result in higher levels of job contentment and efficiency.
 Economic Conditions: It is important to understand how factors like economic growth, inflation, and unemployment rates influence
organizational strategies, employee behaviour, and overall business performance.
 Technological Advancements: People must study the impact of new technologies on work processes, and employee skills
requirements. It is also important to understand the impact of continuous learning and adaptation.
 Social Trends and Demographics: There is a need to examine how changes in societal values, cultural trends, and workforce
demographics affect organizational policies, diversity initiatives, and employee expectations.
 Regulatory Changes: The impact of laws and regulations on organizational operations and compliance requirements must be
understood. It is also important to understand how companies adapt to new legal standards.
 Globalization and Competition: It is essential to understand how global market trends, competition, and international business
practices influence organizational strategies, cross-cultural interactions, and competitive positioning.

1.4Characteristics of Organizational Behaviour

The following points highlight the characteristics of organizational behaviour:
1. Multidisciplinary Approach
Organizational behaviour or OB integrates concepts and theories from psychology, sociology, anthropology, economics, and political
science. Psychology contributes insights into individual behaviour and mental processes. Sociology examines social structures, relationships, and
group dynamics. Anthropology studies cultural influences and organizational culture. Economics provides models of decision-making and
resource allocation. Political science explores power dynamics and organizational politics.
This broad-based approach allows for a richer, more nuanced understanding of workplace behaviour, offering diverse perspectives that may lead
to effective problem-solving and management strategies.
2. Systematic Study
Organizational behaviour uses scientific methods to study behaviour in organizations. This involves formulating hypotheses, collecting data
through surveys, experiments, or observations, and using statistical tools to analyze data. The goal is to identify patterns and causal relationships
that explain behaviour.
effective and responsive management.
3.Focus on Individuals, Groups, and Structures
Organizational behaviour examines behaviour at multiple levels. At the individual level, it looks at personality, attitudes, perceptions, and
motivations. At the group level, it studies team dynamics, communication, leadership, and conflict. At the organizational level, it analyzes
organizational culture, structure, and processes.
By addressing behaviour at these different levels, Organizational behaviour provides a comprehensive framework for understanding how various
factors interact and influence overall organizational effectiveness. This multi-level approach helps in designing targeted interventions to improve
performance and workplace harmony.
4. Performance-Oriented
Organizational behaviour aims to enhance organizational performance by understanding and influencing employee behaviour. It looks at factors
that drive productivity, efficiency, and effectiveness, such as motivation, organizational behaviour satisfaction, and work environment.
By focusing on performance, Organizational behaviour helps organizations identify and implement strategies that optimize employee output and
contribute to the achievement of organizational goals. This performance orientation ensures that Organizational behaviour contributes directly to
organizational success.
5. Humanistic Orientation
Organizational behaviour emphasizes the importance of considering employees' needs, motivations, and well-being. It advocates for creating a
supportive work environment that values and respects employees as individuals.
A humanistic approach leads to higher organizational behaviour satisfaction, increased motivation, and better employee engagement. This, in
turn, reduces turnover and builds a positive organizational culture where employees can feel valued and motivated to contribute their best.
6. Contingency Approach
Organizational behaviour acknowledges that there is no universal solution to management problems. Instead, it advocates for a contingency
approach, which means that the effectiveness of a management practice depends on the specific context and situation.
This approach encourages flexibility and adaptability in management practices. Managers are trained to assess the situation and choose the most
appropriate strategy, leading to more.

7. Goal Orientation
Organizational behaviour aligns organizational practices with the achievement of specific, measurable goals. It focuses on setting clear objectives
and designing processes that facilitate their attainment.
A goal-oriented approach ensures that all organizational activities are directed towards common objectives. This alignment improves
coordination, enhances focus, and increases the likelihood of achieving desired outcomes, contributing to overall organizational success.
8. Change Management
Organizational behaviour provides insights into managing organizational change. It examines how individuals and groups respond to change and
identifies strategies to facilitate smooth transitions.
Effective change in management helps organizations adapt to new conditions, technologies, and market demands. It minimizes resistance,
reduces disruption, and maintains productivity during periods of change, ensuring that the organization remains competitive and resilient.
9. Ethical Perspective
Organizational behaviour incorporates ethical considerations into organizational practices and decision-making processes. It promotes fairness,
integrity, and respect for individuals.
An ethical perspective fosters a culture of trust and accountability within the organization. It enhances the organization's reputation, builds
stronger relationships with stakeholders, and mitigates the risk of legal and ethical issues, contributing to long-term sustainability.
10. Interdisciplinary Focus
Organizational behaviour leverages insights from various fields to address the complex nature of organizational behaviour. It integrates theories
and practices from different disciplines to provide a comprehensive understanding of behaviour in organizations.
This interdisciplinary approach enriches the analysis and solutions to organizational issues. It allows for innovative and holistic strategies that
consider multiple dimensions of behaviour, leading to more effective and sustainable organizational practices.
1.5Features of Organisational Behaviour
a journey through the world of Organisational B
1)Embracing interdisciplinary perspectives

Organisational Behaviour draws on insights from psychology, sociology, anthropology, and management to offer a comprehensive understanding

of organisational dynamics. By integrating knowledge from diverse fields, OB provides holistic insights into how individuals, groups, and

structures interact within organisations, facilitating informed decision-making and effective management practices.

2) Practical application in science

Beyond theory, OB offers useful applications in management, economics, psychology, and sociology, among other subjects. Organisations may
transform OB ideas into tangible outcomes that propel organisational success by implementing scientific ideas to increase performance,
encourage innovation, and accomplish their strategic goals.

3) Ethical framework in science

Ethics play a crucial role in OB, guiding organisations to conduct business in a socially responsible and sustainable manner. By adhering to
ethical principles, organisations build trust and credibility with stakeholders, fostering long-term relationships and contributing to the greater
good of society.

4) Holistic approach to systems

Organisations are considered by OB as complex systems with interconnected fragments, taking a holistic point of view. Organisational Behaviour
facilitates the understanding of connections within a system and the implementation of methods that improve efficiency and harmony by
considering a variety of elements, including culture, structure, and environment.

5) Analytical levels

OB analyses behaviour on a variety of levels, including the individual, communal, and organisational levels. This enables specific measures and
strategic decisions to promote desired results by enabling an in-depth knowledge of how elements at each level affect organisational
performance.
6) Aimed at achieving goals

The primary objective of OB is to help organisations achieve their goals by understanding and managing human behaviour effectively. By
aligning individual and organisational goals, OB ensures that efforts are directed towards common objectives, driving organisational success and
sustainability.

7) Implementing Organisational Behaviour

Implementing OB involves applying theories and principles to real-world situations. Effective leadership, communication, and change
management strategies are essential to create a positive organisational culture and facilitate the adoption of OB practices throughout the
organisation.

8) Human Resource Management tool

OB serves as a valuable tool for Human Resource Management (HRM), providing insights into employee behaviour, motivation, and
performance. By understanding these dynamics, HR professionals can develop strategies to attract, retain, and develop talent, enhancing
organisational effectiveness and competitiveness.

9) Fusion of science and art

OB combines scientific rigour with artistic creativity to address complex organisational challenges. By fostering innovation, experimentation, and
adaptation, OB encourages organisations to explore new possibilities and find creative solutions to dynamic and evolving environments.

10) Addressing employee needs

OB emphasises the importance of understanding and addressing the diverse needs of employees. Organisations can boost employee happiness,
participation, and general well-being by providing a positive work environment and opportunities for growth.

11) Human-cantered perspective

OB recognises employees as the most important asset of an organisation and places a strong emphasis on their well-being and empowerment.
Managers can foster a healthy workplace culture that respects and appreciates individuals by implementing a people-cantered strategy, which can
result in increased levels of commitment, motivation, and performance.

12) Fulfilment of employee needs

OB seeks to create conditions where employees feel valued, motivated, and fulfilled in their work. By aligning organisational goals with
individual needs and aspirations, organisations can create a positive and productive workplace culture that promotes employee satisfaction,
retention, and organisational success.

1.6Features Of Organizational Behaviour

Systematic Study: Uses scientific research methods to develop and test theories of behaviour within organizations.

Interdisciplinary Nature: Integrates knowledge and approaches from various fields such as psychology, sociology, and anthropology.

Contingency Approach: Recognizes that behaviour can vary based on situational factors, and there is no one-size-fits-all solution.

Integration of Theory and Practice: Applies theoretical insights to practical situations to improve organizational effectiveness.

Focus on Organizational Effectiveness: Aims to enhance productivity, job satisfaction, and overall organizational health.

1.7Objectives Of Organizational Behaviour

Ascertain: It aims to determine and explain how individuals absorb a situation and respond to it. This study determines the factors that make an
individual act in a certain way. This helps the company to analyse the risky situations along with their probabilities, effects and possible
outcomes.
Comprehend: OB follows the behaviours and deduces why people behave in a particular way. It reveals an individual’s work ethic and
commitment towards the organisation.
Forsee: It predicts behaviour and explains how individuals will respond to specific situations. These projections are made based on inherent
behaviour and past trends. It helps the company figure out the future capabilities of its employees and create contextual job design and work
environment policies that can help increase productivity.
Command: OB also aims to control and influence individual and group behaviour. The learning aims to influence a positive impact on the
business. It tries to control the behaviour to bring the desired results.

Understanding Human Behavior: To gain insights into how individuals and groups act within organizations.

Predicting Behavior: To anticipate how people will respond to different managerial actions, policies, and changes.

Controlling and Influencing Behavior: To develop strategies for guiding and influencing employees' behaviour to achieve organizational goals.

Improving Organizational Effectiveness: To enhance productivity, innovation, and employee satisfaction through better management of human

resources.

Facilitating Organizational Change: To effectively manage change processes and help organizations adapt to new conditions and challenges.

1.8Elements Of Organizational Behaviour

People: The individuals and groups who make up the organization. This includes employees, managers, and other stakeholders.

People refer to the employees working in your organization. They work either in groups or individually and make up the whole working structure.
Because the “people” element of organizational behavior is regarded as the most important factor in a business, you should take notice of how
you treat them. There is no alternative in the quality of an employee. They help to achieve the organization’s objectives. Learn to manage and
treat them properly and in return, your business will thrive. It’s important that you pay as much individual attention to employees as you can.
Learning how each one behaves will allow you to know how to treat them in the workplace.

Structure: The organization's formal structure arranges jobs and roles, determining task division, coordination, and supervision.

Structure relates to the roles and relationships of those in an organization. It’s important that an employee’s role in the structure is clearly defined

to them. It will lead to more work efficiency and employees can avoid confusion. Due to engaging employees in work that fits their skills,

business goals are likely to happen.

Technology: The tools, equipment, and processes used to produce goods or services. Technology impacts how work is performed and can

influence behaviour.

With the necessary technology added to your business’ production, tasks can be performed more effectively. Without it, work would be very

difficult to perform. Its presence makes business tasks easy not only for employees but also for you. It doesn’t just supply different machines,

tools, and resources, but also different methods to accomplish work. How much technology you require depends on how much work needs to be

done. Technology provides an important role in work quality and reducing production costs. But be cautious of how much technology interferes

in the workplace. It can place a restriction on your employees’ freedom.

Environment: The external context in which the organization operates, including economic, social, technological, and legal factors.

Finally, there is the business environment. With it, you must keep in mind both internal and external factors. Organizations aren’t able to thrive

on their own and they and the environmental factors surrounding it include government, society, family, and even other organizations.

Organizational culture refers to the internal environment within your business structure. The external environment will pertain to political, social,

cultural, and economic factors. Make sure to study all these factors properly for the benefit of your business and make necessary changes where

you see fit.

Culture: The shared beliefs, values, norms, and practices that shape behaviour within the organization. Culture influences how employees

interact and how they perceive their roles.

1.9Organizational Behaviour Models

Autocratic Model
The root level of this model is power with a managerial orientation of authority. The employees in this model are oriented towards obedience and
discipline. They are dependent on their boss.

Custodial Model
The root level of this model is economic resources with a managerial orientation of money. The employees in this model are oriented towards
security and benefits provided to them.

Supportive Model
The root level of this model is leadership with a managerial orientation of support. The employees in this model are oriented towards their job
performance and participation.

Collegial Model
The root level of this model is partnership with a managerial orientation of teamwork. The employees in this model are oriented towards
responsible behavior and self-discipline.
1.10Organisational Behaviour challenges

1.Improving Employee Skills

Technology is changing so fast it is difficult even for experts to keep up with it. Employees already busy with regular work may need help
updating themselves to the latest technologies.

2.Enhancing Product Quality

Keeping up with customers’ demand for higher quality is not easy. There are various parameters like performance, features, reliability, durability,
service, reputation, etc., based on which customers assess the quality of a product.
3. Managing Diversity In The Workforce
The company must maintain diversity in their workforce. This greatly improves their branding as an employer.

4.Facing Effects Of Globalisation

Globalisation is a phenomenon that affects all organisations. The competition is tougher, and companies have to reach out to customers
irrespective of location. They must expand their operations to new territories with unknown challenges.

5.Delegating Power To Employees

More companies are now delegating power to lower-level employees. They are given the freedom to decide on various aspects like their
schedules, operations, procedures and problem-solving methods. Encouraging workers to participate in the decision-making process greatly
increases their commitment to work.

6.Dealing With Change

As the market keeps changing, there is a need to improve processes and product quality. It means that employees will not be doing the same job
for too long a period. They must be prepared to change their working styles

7.Stimulating Innovation

Companies must be innovative if they want to beat the competition and stay at the front. But it is not easy to be innovative. This needs a lot of
adjustments by the employees, who must be flexible to adopt the latest technologies.

8.Adjusting To E-Commerce

E-commerce is the name of the game now. Unless companies can sell their products effectively online, it is difficult for them to survive. More
and more customers prefer the online route to buy their needs as it is easy and saves a lot of time.

9.Ensuring Ethical Behaviour

The workplace consists of people from different backgrounds, and it is not easy for managers to know how many of them belief in ethical
practices.
10.Ensuring Correct Work-Life Balance
Employees must be able to balance their work and personal life. It is not easy, considering that they must spend more time and effort to move
forward in their careers.
1.11Meaning and Definitions of Personality

The word ‘personality’ has been derived from the Latin word ‘persona’ which means to ‘speak through’. This Latin word means the mask worn
by the actors. Therefore, the personality refers to role which an individual displays to the public. Personality does not only mean the charm,
beauty, smiling face and attitude of a person towards life.
According to Gordon Allport, “Personality is the dynamic organisation within the individual of those psychological systems that determine his
unique adjustment to his environment.”

1.12Type personalities:
Heredity: Heredity is referred to those attributes of personality which are determined at the time of conception of an individual. The
characteristics such as body type, build, facial attractiveness, eye colour, hair colour, height, temperament, sex, energy level
Environment:
Environment of a person which affects his personality is comprised of culture, family, society and situation. Influence of all these factors on
personality of an individual

Culture: Culture defines the norms, values, attitudes and beliefs which are passed from one generation to another generation.

Every culture has its own sub-cultures, which further establish moral values, style of dress, standards of cleanliness, definition of success etc.
These cultural sub groups have great influence on personality development of an individual.

Family: Family is one of very important determinants of personality. It affects the personality development of an individual specifically in the
early phases of the life.

1.13Process Of Perception

Understanding perception in organizational behaviour helps managers and leaders create a more effective and supportive work environment
Selection

Individuals selectively attend to certain stimuli in their environment while ignoring others based on factors such as relevance, salience, and

familiarity. In the workplace, employees may prioritize information related to their job responsibilities, goals, and interests.

Organization

Selected stimuli are organized and categorized into meaningful patterns or schemas based on pre-existing knowledge, experiences, and cultural

norms.

For example, employees may categorize colleagues as friendly or competitive based on past interactions and social cues.

Interpretation

Organized stimuli are interpreted or assigned meaning based on individual perceptions, attributions, and cognitive biases. Interpretations may

vary depending on factors such as personality, values, beliefs, and situational context.
For instance, an ambiguous performance review may be perceived as constructive feedback by one employee and as criticism by another.

Integration

Finally, perceptions are integrated into cognitive structures or mental representations that guide behaviour and decision-making. Integrated

perceptions influence how individuals respond to challenges, conflicts, and opportunities within the organization, shaping their attitudes,

motivations, and interpersonal relationships.

1.14Importance Of Perception In OB
Decision-Making

Perceptions influence decision-making processes by shaping how individuals evaluate risks, opportunities, and alternatives. Biases in perception,

such as confirmation bias or stereotyping, can lead to suboptimal decisions and judgment errors.

Communication

Effective communication relies on accurate perception and interpretation of verbal and nonverbal cues. Misinterpretations or misunderstandings

stemming from perceptual biases can hinder communication effectiveness and lead to conflicts or breakdowns in teamwork.

Leadership

Perceptions of leaders' behaviour, traits, and effectiveness significantly impact employee attitudes, trust, and commitment. Effective leaders are

mindful of how their actions are perceived by employees and strive to cultivate positive perceptions through transparent communication, role

modelling, and interpersonal skills.

Organizational Culture

Perceptions shape the collective beliefs, values, and norms that constitute organizational culture. Positive perceptions of organizational fairness,

supportiveness, and inclusivity contribute to employee morale, engagement, and retention.

Conflict Resolution

Perceptions play a key role in conflict. Recognizing different perceptions can help in resolving disputes and fostering a harmonious work

environment.

1.15Job Satisfaction

Positive perceptions about the work environment, leadership, and team dynamics contribute to higher job satisfaction and employee retention .
1.16Meaning and Definitions of Attitude

Attitudes are evaluative statements which are frequently used to describe people, events and objects. These statements can be either favourable or
unfavourable. Attitude reflects one’s feelings towards particular object, event or person.
For example, when I say ‘I like this pen’, with the help of this statement I am expressing my favourable attitude towards the pen.

According to G.W. Allport, “Attitude is a mental or neutral state of readiness, organised through experience, exerting a directive or dynamic

influence upon the individual’s response to all objects and situations with which it is related.”
1.17Types of Attitudes
Work Situation – Attitude towards the actual job; pay, co-workers, working conditions, etc. – This will influence how the culture is in the
company, how people see the work situation will change their behaviours.
Personality – The way someone attitude is in the first place. – Completely dependant on the actual employee and a reason why the hiring process
can be such a big part of a business.

Values – What comes out of the work. – The attitude towards the standard of work.
Social Influences – What co-workers, managers etc. attitudes are like. – If fellow co-workers are lazy, then the attitude is likely to by ‘well why
should I work harder.

Cognitive-The cognitive component refers to a person's knowledge or belief about something. For example, Tom says he believes all snakes are
deadly; this is Tom's personal cognitive thought about snakes.
Affective-The affective component refers to a person's emotional response to something. For instance, Tom may elaborate that he is terrified of
all snakes; this is Tom's emotional, affective feeling about snakes. He feels terrified of snakes.
Conative-The conative component refers to actions taken. A definition for the conative component is the attitude that influences how we act. For
example, Tom may refuse to take any overgrown, grassy pathways to avoid running into a snake.
1.18Meaning and Definitions of Values

Values can be described as the basic convictions that guide an individual that a particular mode of conduct or final outcome is personally or
socially acceptable or not.

According to Milton Rockeach, “Values are global beliefs that guide actions and judgements across a variety of situations.”
1.19Types of organizational values
 1. Ethical Values: These relate to moral principles that guide actions, like honesty (truthful communication), integrity (acting

consistently with principles), and fairness (equitable treatment of all).

2. Financial Values: These relate to an organization’s financial goals and strategies. They include principles like fiscal

responsibility, profitability, growth, or value creation for shareholders.

3. Market Values: These are values that focus on an organization’s position within its market. They involve competitiveness,

innovation, customer orientation, or adaptability to market changes.

4. Social Values: These demonstrate a company’s societal responsibilities: diversity (inclusive practices), environmental

sustainability (eco-friendly operations), and community engagement (active involvement in local communities).

5. Cultural Values: These shape the company’s internal environment: teamwork (collaborative efforts), respect (valuing differences

and rights of others), and communication (open and effective exchange of information).

6. Innovation Values: These foster a creative climate: innovation (encouraging new ideas), agility (swift adaptation to changes),

and risk-taking (embracing failure as a pathway to success).

7. Performance Values: These drive business outcomes: excellence (striving for high standards), accountability (taking

responsibility for actions), and results-orientation (focus on achieving goals).

8. Customer-Centric Values: These ensure customer satisfaction: customer service (providing quality assistance), quality

(delivering superior products/services), and value (offering practical solutions).

1.20organizational learning
organizational learning is when an entire organization levels up by acquiring the skills, knowledge, and experience it needs to evolve
and improve.

1.21 Principles of organizational learning

 Access to information is easy. Employees have access to all valuable information. With a learning management system (LMS), they
can set up a learning hub where employees can take courses, earn certifications, and access resources.
 Learning is important. Organizations apply learning well and emphasize a learning culture to stay successful. They prioritize
employee training and give everyone a chance to develop their skills.

1.22Learning by Chris Argyris and Donald Schön

According to Chris Argyris (psychologist) and Donald Schön (philosopher) single and double loop learning is therefore required so that the
organization and its employees will improve their understanding of the cause of problems and the effective way of solving them.
Chris Argyris and Donald Schön distinguish three levels of “learning” within organizations:

1. Single loop learning

This form of learning aims at solving the increasing changes and the problems that have risen as a consequence of this. However, this ignores the
real cause of the problem.
2. Double loop learning
This form of learning will go more deeply into the cause of the problem and feedback is used to look at past actions.
What were the considerations of the managers and the employees to adopt certain procedures? What went well and what should be improved.
3. Deutero learning
At this stage, levels 1 and 2 are combined with the aim of improving awareness and learning. People learn from the mistakes of the present and
the past and they must be capable of admitting.
1.23Donald Schon (Schön): learning:
Donald Schon (Schön): learning, reflection and change. Donald Schon made a remarkable contribution to our understanding of the theory and
practice of learning.

1.24Advantages of Learning Organizational Behaviour

The following points highlight the advantages of learning organizational behaviour:
 Enhanced Productivity: Organizational behaviour helps in understanding what motivates employees and how to enhance their
productivity. By applying motivational theories and designing effective reward systems, organizations can boost employee
performance and efficiency, leading to higher output and better results.
  Improved Job Satisfaction: It studies factors that contribute to job satisfaction, such as work environment, management style, and
job design. Whenever employees are satisfied with their jobs, they will be more engaged, committed, and motivated, reducing
turnover and absenteeism rates.
 Better Communication: Organizational behaviour emphasizes the importance of effective communication within the organization.
Clear and open communication reduces misunderstandings, facilitates better teamwork. This ensures that everyone in the
company is aligned with the organization’s goals and values.
 Effective Leadership: It provides insights into various leadership styles and how they impact employee behaviour and organizational
performance. Understanding different leadership approaches helps in developing effective leaders who are inspiring and can guide
their teams towards achieving organizational goals.
 Enhanced Decision-Making: Organizational behaviour helps in understanding how decisions are made within organizations and
factors that influence decision-making processes. Better decision-making leads to more strategic choices, improved problem-
solving, and the ability to respond effectively to challenges and opportunities.
 performance. A strong, positive organizational culture fosters a sense of belonging, enhances employee morale, and supports the
achievement of organizational objectives.
 Increased Innovation: It encourages a culture of creativity and innovation by understanding the factors that promote innovative
thinking. This leads to the development of new ideas, products, and processes that can give the organization a competitive edge in
the market.
 the factors that promote innovative thinking. This leads to the development of new ideas, products, and processes that can give the
organization a competitive edge in the market.
 Strategic Human Resource Management: Organizational behaviour provides a framework for aligning human resource practices
with organizational goals and strategies. It ensures that the organization attracts, retains, and develops the talent needed to achieve
its objectives.
 Better Work-Life Balance: It recognizes the importance of work-life balance and how it impacts employee well-being and
performance. Promoting work-life balance helps in reducing burnout, increasing job satisfaction, and maintaining a healthy and
productive workforce.

Assignment- What is challenging face to our management.

UNIT II
Motivation and Job Satisfaction
Motivation Theories – Content theories (Maslow, Herzberg, ERG), Process Theories (Vroom, Porter and Lawler) – Job Satisfaction-
Organisational commitment.
2.1.Meaning of Motivation
Motivation is the process of stimulating people to action to accomplish desired goals. Motivation is a managerial
function which has been defined by different scholars.
According to Edwin B.Flippo, “Motivation is the process of attempting to influence others to do your will through the possibility of gain or
reward.”
2.2.Process of Motivation

1.Unsatisfied need. Motivation process begins when there is an unsatisfied need in a human being.
2.Tension. The presence of unsatisfied need gives him tension.
3.Drive. This tension creates an urge of drive in the human being an he starts looking for various alternatives to
satisfy the drive.
4.Search Behavior. After searching for alternatives the human being starts behaving according to chosen option.
5.Satisfied need. After behaving in a particular manner for a long time then he evaluates that whether the need is
satisfied or not.
6.Reduction of tension. After fulfilling the need the human being gets satisfied and his tension gets reduced.
2.3.Types of Motivation

1. Achievement Motivation: It is the drive to pursue and attain goals. An individual with achievement motivation wishes to achieve
objectives and advance up on the ladder of success. Here, accomplishment is important for its own shake and not for the rewards that
accompany it. It is similar to ‘Kaizen’ approach of Japanese Management.
2. Affiliation Motivation: It is a drive to relate to people on a social basis. Persons with affiliation motivation perform work better when
they are complimented for their favorable attitudes and co-operation.
3. Competence Motivation: It is the drive to be good at something, allowing the individual to perform high quality work. Competence
motivated people seek job mastery, take pride in developing and using their problem-solving skills and strive to be creative when
confronted with obstacles. They learn from their experience.
4. Power Motivation: It is the drive to influence people and change situations. Power motivated people wish to create an impact on their
organization and are willing to take risks to do so.
5. Attitude Motivation: Attitude motivation is how people think and feel. It is their self confidence, their belief in themselves, their
attitude to life. It is how they feel about the future and how they react to the past.
6. Incentive Motivation: It is where a person or a team reaps a reward from an activity. It is “You do this and you get that”, attitude. It is
the types of awards and prizes that drive people to work a little harder.
7. Fear Motivation: Fear motivation coercion’s a person to act against will. It is instantaneous and gets the job done quickly. It is helpful
in the short run.

2.4.Theories of Motivation
A. Maslow’s Need Hierarchy Theory:
This is the most well-known theory of motivation of Abraham Maslow, a clinical psychologist. A basic assumption of this model is that as we
satisfy one type of need, other needs then occupy our attention. Once we satisfy our need for food, air and shelter

i.Physiological needs: These refer to physical or biological needs meant for survival and maintenance of life. These include food, clothing,
shelter, air, sleep and other basic needs.
ii. Safety needs: Once the physiological needs are satisfied a person aspires for safety needs. These includes security for life, job, protection from
environment, animals etc.

iii. Social needs: After the first two needs are satisfied, social needs become important in the need hierarchy. Need for love, affection, friendship
etc.

iv. Esteem and status needs: these needs are concerned with self-respect, self-confidence, a feeling of personal worth, feeling of being unique,
and recognition.

v. Self-actualisation needs: Self-actualisation is the need to maximize one’s potential whatever it may be. These needs arise only after the four
categories of need are fulfilled.
2.5.Hezberg’s Two-Factor Theory:

i. Hygiene Factors: Herzberg used the term ‘hygiene’ to describe factors which are related to the conditions under which job is performed such
as compensation, job security, organizational politics, working conditions, quality of leadership, and relationships between supervisors,
subordinates, and peers.

ii. 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: achievement, recognition, advancement, works itself, possibility of growth and responsibility.

2.6.McClelland’s Theory of Needs:

Need for achievement (nAch): it is the drive to excel, to achieve in relation to a set of standards, to strive to succeed.

Need for Power (nPow): it is the need to manipulate others or the drive for superiority over others. People with high power need have a great
concern for exercising influence and control.

Need for Affiliation (nAff): It is a need for open and sociable interpersonal relationships. In other words, it is a desire for relationship based on
co-operation and mutual understanding.

2.7.Alderfer’s ERG Theory:

 Existence Needs: it consists of physiological and safety needs such as hunger ,thirst etc (Maslow’s first two levels)
 Relatedness Needs: it consists of social and external esteem needs that involve relationship with other people. (Maslow’s third and
fourth level).’
 Growth Needs: it consists of self-actualization and internal esteem needs like feeling of being unique, feeling of personal growth etc.
(Maslow’s fourth and fifth level)

2.8.Vroom Expectancy Theory: This theory was first proposed by Victor Vroom of the Yale School of Management in 1964. Expectancy theory
says that employees will be motivated to exert a high level of effort when they believe:
 That effort will lead to a good performance appraisal;
 That a good appraisal will lead to organizational rewards, such as bonus, a salary increase, or a promotion; and
 That the rewards will satisfy the employees’ personal goals.
Expectancy theory must focus on three things i.e. Efforts (E), Performance (P) and Outcomes (O). In order to be motivated to act or perform their
job, employees must perceive that their efforts (E) are likely to lead to good performance (P).
2.9.job satisfaction
Job satisfaction explains how much an employee is self-motivated, content, and satisfied with his or her job. Job satisfaction happens when
employees feel like they have a stable job, room to grow in their career, and a good mix between work and personal life.
2.10.Factors of job satisfaction

 Work Environment: A conducive, safe, and positive environment forms the bedrock of job satisfaction. This encompasses not
just the physical space but also the cultural and emotional atmosphere of the workplace.

 Nature of the Work: The intrinsic characteristics of the job, including its meaningfulness, autonomy, and the match between job
demands and personal skills, are crucial factors affecting job satisfaction.

 Compensation and Benefits: Adequate and fair remuneration, alongside comprehensive benefits, are fundamental in making
employees feel valued and financially secure.

 Work-Life Balance:The ability to harmonise professional duties with personal life significantly influences job satisfaction, with
flexible work arrangements being a key factor.

 Recognition and Feedback: Regular acknowledgement of efforts and constructive feedback is vital in fostering a sense of
appreciation and belonging among employees.

 Professional Growth: Opportunities for career advancement and professional development are significant factors determining job
satisfaction, driving a sense of progress and fulfilment.

 Leadership Style and Management: The approach leaders and managers adopt in guiding, supporting, and communicating with
their teams can greatly impact job satisfaction levels.

 Collegial Relationships: Positive interactions and colleague relationships create a supportive network that enhances job
satisfaction.

 Job Security: Ensuring job stability is critical, with uncertainty often leading to stress and dissatisfaction.

 Organisational Policies and Practices: The fairness, transparency, and inclusivity of organisational policies play a significant
role in shaping job satisfaction as a determinant.

2.11.Job satisfaction components

1.Work Environment:

A positive and supportive work environment contributes significantly to job satisfaction. Factors such as good relationships with colleagues, a

fair and transparent organizational culture, and opportunities for growth and development can all influence an employee’s level of satisfaction.

2. Compensation and Benefits:

Fair and competitive pay, along with attractive benefits packages, can enhance job satisfaction. Employees who feel adequately rewarded for their

efforts are more likely to be satisfied with their jobs.

3.Job Role and Responsibilities:

Clarity in job roles and responsibilities is essential for job satisfaction. When employees understand their roles and can utilize their skills and

strengths, they tend to experience greater satisfaction.

4. Work-Life Balance:

Striking a balance between work and personal life is crucial for job satisfaction. Employers that promote work-life balance initiatives demonstrate

a commitment to their employees’ well-being,

5.Recognition and Appreciation:

Employees who receive recognition and appreciation for their contributions are more likely to feel valued and satisfied in their jobs. Simple

gestures of acknowledgment can have a profound impact on morale.

6. Career Advancement Opportunities:

A clear path for career growth within the organization is essential for job satisfaction. Employees want to see opportunities for advancement and

professional development to feel motivated and satisfied with their work.

2.12.organizational commitment
If an organizational commitment is determined it helps predict employee satisfaction, employee engagement, distribution of leadership, job
performance, job insecurity, and similar such attributes.
2.13.Benefits and advantages of organizational commitment
High employee productivity
Committed employees are highly productive. They believe in the organization, its goals, vision, mission, and the leadership team.
Reduced absenteeism
A committed and motivated staff will report much lesser absenteeism than their peers. Committed employees look forward to going to work,
completing their work, helping out projects, and contributing toward organizational goals.
Excellent team players
Since dedicated employees are heavily invested in the organization, and it’s success, they are great at collaborating with, and working in teams.
Strong advocates
Dedicated and committed employees believe in their organization, and hence, are effective and positive advocates of their employers.
2.14.Components of organizational commitment
Affective commitment:
Active commitment also means, an employee is not only happy but also engaged in the organizational activities like, participation in discussions
and meetings, giving valuable inputs or suggestions that will help the organization, proactive work ethics, etc.
Continuance commitment:
This is the level of commitment where an employee would think that leaving an organization would be costly.

Normative commitment:
This is the level of commitment where an employee feels obligated to stay in the organization, where they feel, staying in the organization is the
right thing to do.
Assignment- Employer Job Satisfaction

UNIT III
Organisational structure and Communication
Organisational structure- Factors, Forms. Importance of virtual organisations -Organisational communication- Importance, Forms, Functions.
Organisational Climate and Culture. Business communication: Harnessing Business Emails and Corporate Communication tools.
3.1Communication structure in an organization.

The communication structure in an organization refers to the formal and informal channels of communication that exist between different levels
of employees and departments. It defines the flow of information, the people involved in the process, and the procedures that are used to
communicate information throughout the organization.

3.2.Types of organizational communication:

Formal communication: This type of communication is official and follows a chain of command. It includes memos, reports, emails, and other
written documents. It follows a specific chain of command and is usually written or documented. Formal communication can be downward,
upward, or horizontal.

Informal communication:
Informal communication structure refers to the way information is exchanged among the employees without following the formal channels of
communication.
It can be verbal or non-verbal and can take place during informal meetings, coffee breaks, or social events. Informal communication can help in
building relationships and trust among employees.
Centralized communication structure: In a centralized communication structure, all information flows through a central authority or
department. It is often used in large organizations where there is a need for coordination and control.
Decentralized communication structure: In a decentralized communication structure, information flows freely between different departments
or units.
Network communication structure: Network communication structure refers to the way information flows between different units or
departments through a network. It is often used in organizations that have multiple locations or branches.

3.3.Effective communication structures within an organization

1. Clarity: Communication should be clear and concise so that employees can understand it easily.

2. Consistency: Communication should be consistent across all channels, so that employees receive the same information
regardless of where it comes from.

3. Timeliness: Communication should be timely so that employees have the information they need to do their jobs effectively.

4. Relevance: Communication should be relevant to the employees who receive it, so that they can understand how it relates to
their work.

5. Accessibility: Communication should be accessible to all employees, regardless of their location or position within the
organization.
3.4.Types of Organizational Structures
1.Functional Top-Down
2.Divisional Structure
3.Matrix Organizational Chart

4.Flat Organizational Chart

Functional Top-Down Hierarchy

A functional, top-down organizational chart reflects a traditional business structure. This structure shows the C-Suite at the top, followed by other
senior management, middle managers, and so on. The structure is divided into traditional departments like IT, marketing, finance, human
resources, and operations based on everyone's functional role in the organization.
In such an organizational structure, employees with similar skillsets and specialization are grouped together. However, they often suffer from lack
of visibility and communication with other departments.
In such an organizational structure, employees with similar skillsets and specialization are grouped together. However, they often suffer from lack
of visibility and communication with other departments.

Divisional Organizational Chart

A divisional organizational chart reflects a company organized along a product line or specific geography. For example, in a car company the
divisions may represent SUVs, sedans, and electric cars. Each division than has it own functional structure like IT and marketing.
A company will use a divisional set up like this when one division is sufficiently independent from another, however this kind of structure can
also add some
Matrix Organizational Chart

A matrix organizational chart reflects a company where employees are divided into teams by projects or product lead by a project or product
manager, but also report to a functional manager. It shows a company that operates using cross-functional groups instead of vertical silos.
A matrix organizational structure can help facilitate better, more open communication.
A matrix organizational structure can help facilitate better, more open communication and create a flexible, dynamic work environment that can
easily shift resources where they're needed, but it can also create confusion and frustration with dueling priorities and supervisors.
Flat Organizational Chart

A flat organization structure will show few or no levels of management between executives and all other employees. This type of structure
empowers self-management and greater decision making ability for every employee. It's most often employed by smaller businesses, but it's not
unheard of it even at larger companies.

Functional Structure
The first and most common is a functional structure. It's also referred to as a bureaucratic organizational structure. It breaks up a company
based on the specialization of its workforce.
Most small-to-medium-sized businesses implement a functional structure. Dividing the firm into departments consisting of marketing, sales,
and operations uses a bureaucratic organizational structure.
Divisional or Multidivisional Structure
This type is common among large companies with many business units. It's called the divisional or multidivisional (M-Form) structure.

Team-Based Structure
Team-based organizations segregate into close-knit teams of employees that serve particular goals and functions, similar to divisional or
functional structures.

Flat (Flatarchy) Structure

Flatarchy, also known as a horizontal structure, is used among many startups.

Matrix Structure
Firms can also have a matrix structure. This is the most confusing and the least used.

Circular Structure
Circular structures are hierarchical but they're said to be circular because they place higher-level employees and managers at the center of the
organization with concentric rings expanding outward.

Network Structure

The network structure organizes contractors and third-party vendors to carry out certain key functions.

3.5.Factors of an Organizational Structure

Strategy:
An innovation strategy is one that emphasizes the introduction of major new products and services.
Ideally, an organic, loose organizational structure is more appropriate to support an innovative strategy.

Organization Size:

There is significant research supporting the idea that organizational structure is impacted by the size of the organization in question. Large
organizations tend to have more work specialization, more vertical levels, rules, regulations, and so on. So they tend to be more mechanistic in
nature.

Technology
In this instance, the word technology refers to how the organization transfers its inputs and outputs. Every organization has at least one
technology for converting their resources into products or services.

Environment
General Motors, as we noted earlier, doesn’t face a lot of environmental change. The car market fluctuates a bit here and there, but they basically
make cars and sell them.

3.6.Types of virtual organisation

 Telecommuters – This type of virtual organisation hires employees that work from home and interact with their workplace
via personal computers.

 Completely virtual – This type of virtual organisations are linked to a network of retailers, distributors, suppliers and
customers.

 Outsourcing employees – This type of companies outsource almost all or a significant part of core competencies. The areas
for outsourcing generally include information system, manufacturing, fiancé, engineering etc

3.7.Features/Importance of virtual organisation

1. E-mail integration
An important notable feature of virtual organisation is the integration of SMS or Short Message Service into the e-mail. This is already an
existing infrastructure that enables a company to take advantage of SMS products
2. Technology
Times are changing and we are seeing tremendous advancements in the field of science and technology.
3. Voice mail alert
When the SMS technology is added to the voice mail system it creates a way to receive voice mail alerts
4. Office system integration
The SMS or Short Message Service technology can enhance the new office systems or the existing systems.
5. Mobile data
Another salient feature of the virtual organisation is that it is now possible to retrieve any information anywhere in the world with the help of a
mobile device network.
The laptop can be easily linked with mobile devices so that the user can remain connected to a virtual organisation from any place. Thus mobile
data connections have revolutionised the way organisations are now operating.

 Lower Overhead Costs. Virtual organizations enjoy significant decreases in operating costs. Aetna was able to shed 2.7 million

square feet of office space and save $78 million due to a shift toward virtual teams and remote work. American Express also enjoyed

lower overhead costs to the tune of nearly $15 million thanks to a focus on hiring remote workers.

 Improved Employee Satisfaction. Employees are simply happier when they are able to work from home. 82% of remote

workers have reported that they have lower stress levels. The study also showed that a shift toward remote work led to fewer absences

and a higher morale.

 Larger Talent Pool. Startups who hire workers remotely are able to access a larger pool of talent. You can hire talent from anywhere

in the world without limiting yourself to one specific geographic location.

 Improved Employee Retention. Employees that are happier in their work are more likely to stick around. With competitive salaries,

remote workers are less likely to leave their jobs.

 Access to New Markets. Hiring remotely allows your startup to tap into new markets. This is particularly useful when it comes to

remote sales teams, who will be able to reach out to new customers that otherwise would have been out of reach for your organization.

3.7.Advantages of virtual organisation

1. Higher employee satisfaction

The traditional employee used to work from a physical set-up office space. They are happy working from home with adjusted timings so that they
can complete other urgent work in the meantime.
2. Boost in employee efficiency
An essential advantage of virtual organisation is an increase in employee efficiency.
3. Broader talent pool
Virtual organisation does not need its employees to come and work from a specific address. How to manage transportation to reach the office on
time.
4. Overhead costs are low
Physical organisations are costly as it needs lots of cash to set them up. Handle the work in the physical store, costs of maintenance, expenses like
lighting, furniture, cleaning, stationery, etc.
Immovable property
Physical office space needs overhead costs, but a virtual organisation does not require any such expenses. The company has enough free capital to
improve its growth potential and scalability.
5.Improved employee retention

The employees working in a virtual organisation experience greater job satisfaction and thus are likely to stick
around for a more extended period.

6. Access to new markets

Virtual organisations can tap new markets easily because they do not rely on physical space.
7.:Virtual organisation helps to save time and travel expenses because there is simply no need to reach the workplace. The money that is saved is
savings for the employee.

8.Organized:Although the employees are in various geographic locations, still the virtual organisation works in an organised manner.

9.Balance in life:A virtual organisation offers the employees a golden chance to accommodate and balance their professional and personal life.
Business entities might some time or other need the help of an expert for a specific work.
11. Smooth movement:Tasks and projects are an integral part of the workplace. In a physical organisation, the shifting of employees from one
project to another is a time-consuming process.
12. Multitasking: It is not easy to multitask in a physical organisation until an employee is equipped to handle the responsibility because of his
expertise and he is comfortable to move from one place to another for the project.
13. Swift response time :In a virtual organisation, the relevant information can be accessed at a faster pace through online mediums.
3.8. Disadvantages of virtual organisation
1.Lack of solidarity
In a physical space you will feel the team bonding that nudges employees to work harder for the team. The workforce includes members who
rarely speak face-to-face with other employees.
2.Reputational risks
People are still not comfortable in dealing with companies that do not have a physical presence. They vary from remote employees, and this is
why they do not take such companies seriously.
3.Less communication:
Virtual organisation has the best possible means to have an open channel that will facilitate increased communication between all the members.
4.Compliance and security issues
A virtual organization means passing information remotely. Some data are confidential and very important.
3.9.Importance of organisational communication

 Formal Communication involves official channels and follows the established hierarchy. This includes memos, official meetings,
reports, and company newsletters.

 Informal Communication takes place through unofficial channels and is often spontaneous. Examples include water cooler
conversations, chats, and social interactions among employees.

 Internal Communication focuses on communication within the organization, ensuring employees are well-informed about company
policies, goals, and changes.

 External Communication involves interactions with entities outside the organization, such as customers, suppliers, and the public. It
includes marketing, public relations, and customer support.

 Downward Communication flows from higher levels of management to lower levels. This includes instructions, goals, and
performance feedback.

 Upward Communication involves information moving from lower to higher levels of the organization. Employees provide feedback,
suggestions, and reports to management.

 Lateral Communication occurs between individuals or departments at the same hierarchical level. It facilitates collaboration and
coordination between different units.

3.10.Functions of Organizational Communication

 Control
 Motivation
 Information
 Emotional Expression

Control
Communication acts to control member behavior in several ways. Organizations have power ranking and formal recommendations that

employees are required to follow.

When employees, for example, are necessary to first communicate any job related objection to their instance head, to follow their job

explanation, or to act in accordance with company strategies, communication is executing a control function. But informal communication also

controls behavior. When work groups make fun or provoke a member who build too much (and makes the rest of the group look bad), they are

casually communicating with, and supervising, the member’s behavior.

Motivation

A motivated person plays a useful and active character in an organization. Communication encourages motivation by simplifying to employees

what they must do, how well they are doing it, and how they can enhance if performance is inadequate. Communication motivates and induces

individuals to meet mutually united goals. Sharing success stories of the particular person who has controlled the arguing and have been able to

fulfil their goals can do this. This function of communication, in spite of being appropriate in all walks of life, is more prominent in business and

industry where communication is being progressively used as a tool for motivation.

The establishment of individual goals, opinion on development toward the goals, and benefit for desired behavior all refreshing motivation and

need communication.

Emotional Expression

Emotional expressions are necessary to enhance messages, to convey authenticity and to develop trust. Humans need to show their feelings in two

ways. It can be verbal and nonverbal, emotions are expressed like love, anger, joy, fear, hope or any other emotions.

Emotional expression by way of language comes in a form of exclamation point - for example − Yes!, Oh no!

Information

Organizations need to keep their employees informed of their goals, industry information, preferred processes, new developments and

technology, etc.,

3.11.Different between organisational Climate and Culture

Organization Organizational
Aspect
al Culture Climate
 Values, beliefs, Measurable
myths, aspects of the
Components
traditions, work
norms environment

Measurable with
Difficult to
relative
measure and
Nature precision,
articulate,
tangible and
intangible
observable

Evolves over Evolves in the

time, minds of
Origins influenced by employees
organizational influenced by
history culture

More Strongly
Leadership challenging for influenced by
Influence leaders to day-to-day
directly control leadership style

Endures over
More responsive
the long term,
Endurance to changes and
resistant to
interventions
quick changes

Can be
Difficult to measured more
Measureme measure and precisely,
nt manage providing
directly specific data for
management

3.12.Characteristics of Organizational Climate

1. Perception
Organizational climate is strongly tied to how individuals perceive the organization.

2. Abstract Concept
A key aspect of organizational climate is that it’s abstract and hard to put into concrete terms.

3. Distinctive Identity Factor

Organizational climate plays a crucial role in giving the organization its own unique identity.

4. Long-Term Effort
Creating a positive organizational climate doesn’t happen overnight. It’s a long-term effort that requires consistent actions and commitment over
time.

5. Structure
Structure influences the organizational climate by reflecting how employees perceive constraints and freedom in their roles. It sets the formality
level in the workplace, shaping the overall atmosphere.

6. Trust
Trust is a key factor in determining organizational climate. It affects how comfortable employees feel communicating openly, especially on
sensitive matters. This characteristic establishes a foundation of trust and transparency in the workplace.
7. Innovation
Innovation plays a vital role in shaping organizational climate. It’s not just about new ideas but the perception that change and creativity are
actively encouraged.
3.13.Harnessing the Power Of Email Marketing

 Awareness

If a customer has a specific problem, you can come to the rescue with an informative email that explains how your product can

offer a solution

 Consideration

If a customer is researching and comparing similar products, your email can showcase what makes yours stand out

 Purchase

If a customer needs extra incentives to make a purchase, you can provide an offer or discount

 Retention

If a customer has already made a purchase, you can send an exclusive offer to ensure they remain brand-loyal

 Advocacy

If a customer is willing to share your product or the noteworthy causes you support, they can become a brand advocate.
3.15.Types of organisational culture
1. Inclusive
Within cultures such as this, belonging, trust and sense of community are emphasised. A family-like atmosphere develops where sense of
care, wellbeing and work-life balance are favoured.
2. Supportive
If you have cultivated a Supportive company culture, you’ll notice there is always a helping hand to be found amongst colleagues. Collaboration,
shared responsibility and personal development feature strongly.

3. Stable
Maintaining stability is favoured above all else within this organisational culture. This is established through careful risk management and
minimisation of uncertainty.
4. Ordered
Clear roles, responsibilities and governance are emphasised within an Ordered culture, and it is important that established rules and procedures
are followed.
5. Goal driven
Goal-driven cultures are characterised by a relentless pursuit of ambitious goals and an emphasis on high performance. Decisive action and clear
performance targets are all-important.
6. Competitive
Within a Competitive culture, strong focus is placed on winning in the marketplace and outstripping competitors to become a dominant leader.
7. Autonomous
This culture prioritises being flexible in approach and able to change rapidly to navigate dynamic environments. Autonomy and continuous
improvement are favoured and environments tend to be exciting and stimulating.
3.16.Tools for Corporate Communication
Communication refers to the process of transmitting ideas, thoughts, information, etc.
Communication is a continuous process of creating and sharing ideas, information, views, facts, feelings, etc. among people to reach a common
understanding.
Business communication may be defined as the process of sharing information between people within and outside an organization.
Internal Communication

Internal communication refers to information and ideas exchanged within the organization itself and is the transmission of information between
organizational members or parts of the organization.

3.17.4 types of internal communication:

● Vertical Communication - This communication takes place between employees in different hierarchical positions.

● Downward Communication - In this form of communication, information flows from managers or leaders to employees.

● Upward Communication - In this form of communication, information flows from employees to managers or leaders.

● Horizontal Communication - This refers to communication between individuals in the same hierarchical positions.

External Communication

External communication is the way a business communicates with outside individuals and organizations, such as its shareholders, clients,
suppliers, and customers.

Formal external communication is the initial step in creating the appropriate company image. It includes anything from carefully created
letters, reports, and presentations to web pages.

Informal external communication is a form of communication that establishments can’t regulate directly. During working hours employees are
continuously absorbing information and deepening their knowledge about the organization.

3.18.Different Types of corporate communication tools

Written Communication

1. Email

Email remains one of the most widely used and versatile tools of communication in the business world. It provides a formal means
of communication, suitable for professional correspondence, official announcements, and detailed documentation.

Moreover, important information, decisions, and attachments can be documented within email threads. This creates a historical
record that can be referred back to when needed.

Email enables communication across different time zones and geographic locations. Further, it allows participants to respond at
their convenience.
  Internal Communication: Teams' day-to-day communication, project updates, and sharing internal news.
 External Communication: Businesses communicate with clients, partners, and vendors for proposals, agreements, and general
correspondence.

 Formal Announcements: Company-wide announcements, policy updates, and official communications.

 Project Management: Project managers assign tasks, share project timelines, and update team members on project progress.

3.19.Instant Messaging and Chat

Instant Messaging (IM) has become a cornerstone of real-time communication in business environments. Its effectiveness lies in its ability to
facilitate quick, direct, and informal conversations, even across various geographical locations.

IM allows for more informal and accessible communication compared to formal emails. This makes it suitable for quick questions, updates,
and team bonding. It helps teams stay connected throughout the day, share brief updates, and maintain a sense of camaraderie. Further, it can
reduce the reliance on lengthy email threads and minimizes email overload.

 Team Collaboration: Teams can discuss, brainstorm, and give quick updates for ongoing projects.
 Individual and Group Chats: Employees engage in one-on-one conversations or participate in group chats based on projects,
departments, or common interests.

 Notification of Urgent Matters: Updates on urgent matters that require immediate attention and prompt responses.

 Virtual Meetings: Some IM tools offer audio and video call features, supporting virtual meetings and discussions.

3.20.Document Collaboration Tools

Document collaboration tools provide for real-time collaboration and seamless sharing of information, even across geographical locations. It
can also have version control features, ensuring that everyone is working on the latest documents. This helps reduce errors and discrepancies.

They serve as a centralized hub for documents, making it easy for teams to access, edit, and comment on files. Also, they facilitate
communication through comments and feedback directly within the document. This can streamline the review and approval process.

 Project Planning: Outline objectives, timelines, and progress reports collaboratively.

 Client Collaboration: Used with clients to share proposals, contracts, and project updates securely.

 Meeting Agendas and Minutes: Teams create, edit, and share meeting agendas and minutes, ensuring everyone is on the same page
before, during, and after meetings.

3.21.Discussion Forums

Discussion forums provide a platform for open dialogue, knowledge sharing, and community building within an organization. Team members
can ask questions, share insights, and contribute to conversations on various topics. Also, forums create a sense of community within an
organization.

3.22.Use Cases of Discussion Forums

 Project Collaboration: Discuss project-related matters, share updates, and seek input from members.
 Employee Engagement: Social interactions, discussions on non-work-related topics, and team-building activities.

 Knowledge Repository: Valuable insights of discussions and solutions archived for future reference.

 Ideation and Creativity: Brainstorming sessions, idea generation, and creative discussions.

3.23.Social Media Content Tools

Social media content tools enable organizations to effectively manage, schedule, and optimize their presence on various social media
platforms. They help ensure consistent and coordinated communication across various channels. Businesses also can plan and schedule their
social media posts in advance. This can provide strategic content distribution and maintain a regular and timely online presence.

These tools offer analytics that provide valuable insights into social media content performance. Businesses can track engagement, reach, and
other metrics to refine their communication strategies.
Finally, teams can collaborate on social media content creation. The tools can include approval workflows, ensuring that content aligns with
the organization's messaging and branding guidelines.

 Brand Promotion: Share updates, announcements, and engaging content with their audience across social media platforms.
 Customer Engagement: Facilitate direct communication with customers. This allows businesses to respond to inquiries, address
concerns, and build relationships through social media channels.

 Campaign Management: Plan and execute social media campaigns. They can schedule campaign-related posts, track performance,
and adjust strategies based on real-time data.

 Influencer Collaboration: Collaborate with influencers for marketing purposes and help manage and track influencer partnerships.

Phones

With the growth of technological communication innovations, phones in business might seem quaint. However, phones remain indispensable
tools for verbal communication in business settings. They facilitate instant, real-time communication, allowing for quick decision-making,
issue resolution, and collaboration.

Moreover, verbal communication over the phone adds a personal touch. This can build stronger connections between team members, clients,
and partners. It allows for nuances in tone and expression that written communication may lack.

 Internal Communication: Internal calls, discussions, and coordination between team members, departments, and leadership.
 Client Communication: Communicate with clients, addressing inquiries, providing support, and maintaining regular contact to
strengthen relationships.

 Meetings and Conferencing: Conference calls enable collaboration among team members located in different geographical locations.

 Sales Calls: Outbound calls, conducting sales pitches, and following up with potential clients. It's a direct and persuasive form of
communication.

3.24.Video Conferencing Tools

Video conferencing bridges geographical gaps, allowing teams to engage in face-to-face communication. They allow for visual cues, body
language, and facial expressions conveyed through video enhance collaboration. This can lead to more effective communication and improved
teamwork.

Businesses with international operations rely on video conferencing to connect teams, conduct meetings, and collaborate seamlessly across
different time zones. This helps reduce the need for travel, saving both time and costs associated with commuting or flying to physical
meetings.

3.25.Use Cases of Video Conferencing Tools

 Virtual Meetings: Routine and ad-hoc meetings, enabling a more engaging and interactive communication experience.
 Client Presentations: Virtual client presentations, product demos, and sales pitches.

 Training Sessions: Remote training sessions, workshops, and onboarding processes, allowing for visual instruction and interaction.

 Job Interviews: Interviews for remote hiring processes, enabling face-to-face interactions with candidates regardless of their location.
Assignment – Defining business communication tools.
UNIT IV
Transactional Analysis and Organizational Conflicts:
Transactional analysis: Meaning, Benefits, Levels of self-awareness, Analysis of transactions. Organizational Conflicts – Process, Levels,
Conflict management. Negotiation – Types and Process - Introduction to Workplace Spirituality.

4.1.Meaning of Transactional Analysis:

Transactional analysis is a very popular topic that we deliver on our Management Training and Leadership Development
Training programmes.

4.2.Transactional Analysis Ego States

These life scripts have a profound effect on how we think, feel, and behave. We are conditioned to respond in a certain way, based on the results
we have achieved with that type of behaviour before.
The Child State:The free child state can be seen as a spontaneous nature, intelligent, free-flowing, innovative and creative in their
thinking. The child is the ego state that contains the feelings and emotions related to the external events that were imposed on a person in the first
five years of life. These feelings or emotions are replayed in the person's mind when the corresponding external event is recalled. Examples
would be 'Being approached by a strange person makes me feel nervous,' 'I feel safe when I hold someone's hand,' or 'I am scared of being
burned.'

The Parent State:The parent is an ego state reflected on how the person’s parent figures brought them up. If a
stronger parent figure was a grandparent or teacher. The parent is the ego state that contains the external events that were imposed
on people in the first five years of their life. These are constructs that are imposed on the child. Examples would be 'Don't talk to strangers,'
'Always hold a grown-up's hand when you cross the street,' or 'Don't touch a hot stove.'
The Adult State: This only has one component or division attached to it. Whereas the child and parent state may be

driven by past experiences and conditioning, the adult state considers the here and now situation. The last ego state is
the adult. The adult is the ego state that evaluates what is really going on and makes independent decisions about the world. This ego state
begins forming as soon as we gain the ability to control aspects of our environment. It allows a person to compare what they are told about the
world with what they feel and experience. Let's use the hot stove as an example. The adult is told by the parent not to touch a hot stove and
recognizes that the child's fear of being burned is reasonable. Therefore, the adult determines to use caution when it's necessary to use a hot
stove.
Organizational Analysis:
Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an
organizational analysis is beneficial, as it enables management to identify areas of weakness and then find approaches for eliminating the
problems.
4.3.Characteristics of Organizational Analysis
1.Strength
The competitive edge that an organization enjoys over its competitors is an advantage that defines its success. Assessing the strengths of an
organization involves evaluating management, workforce, resources, as well as current marketing goals. In general, an internal analysis looks at
an entity’s core competencies and resources.
Defining the capability of an organization helps the management team to make sound decisions as they formulate long-term objectives. Other
important aspects of an internal analysis include looking at financial objectives, strategic planning, and operational structure.
Weaknesses

Weaknesses are obviously an aspect of an organization that can affect its performance. Recognizing weaknesses is important, as it enables the
organization to locate problems and implement beneficial changes. In addition, the organization is able to develop appropriate choices in its
strategic planning process, especially when results are not satisfactory.
Potential weaknesses include low morale, poor leadership, poor financials, obsolete technology, and inefficient functions. An example of a
turnaround would be an organization, which previously experienced poor cost control, working hard to manage costs.
Opportunities

Generally, an external analysis weighs the threats and opportunities that are present outside of an organization. An external assessment includes
sizing up the competition, analyzing market trends, and evaluating the impact of technology on the performance of an organization. When
looking at external opportunities, an organization needs to identify current trends in the market, as well as weaknesses and gaps in the market that
it can come in and fill.
An entity also needs to consider technological changes as an opportunity. Innovation helps to create opportunities for business. Therefore,
organizations that set themselves apart in terms of their efficient use of available technology are capable of becoming leaders in their respective
industries.
Threats

Not all threats are detrimental to the success of a business. For instance, labour can be a threat or an opportunity, depending on the prevailing
economic conditions. Legislation and regulations set by the government also exert an effect on how well an organization performs in its industry.
To succeed in a competitive environment, an organization needs to learn to cope and embrace change as it happens.

4.5.Benefits of Organizational Analysis

Final Word
Organizational analysis offers many benefits to a business. For one, it helps businesses improve on their weaknesses. Understanding how a
business functions helps to shed light on areas of weakness that may only require simple changes to spur growth. An organizational analysis helps
businesses find innovative ideas, such as new ways to structure objectives so that employees are more productive.
Final Word
Businesses seeking a competitive edge can benefit from undertaking an organizational analysis. The information generated from an
organizational analysis will help an entity understand what it needs to do in order to turn itself into a more successful, profitable venture. Whether
the business is new or old, an organizational analysis can help owners and managers achieve a better understanding of their business.
Additional Resources:
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)® certification program,
designed to help anyone become a world-class financial analyst.
Financial Analyst Certification:
Become a certified Financial Modeling and Valuation Analyst (FMVA)® by completing CFI’s online financial modeling classes

4.6.components:
 Strategy, which provides a clear blueprint on how to achieve a competitive advantage. It should focus on the long term and be clear in
what it includes.
 Structure, which provides an outline of the different business sections (divisions, units, agencies) and outlines accountability.
 Systems, which identify specifically how business within the organization is done (day-to-day operations).
 Skills, which are the different expertise areas performed by the employees.
 Staff, which involves recruitment and retention as well as how many staff members and what specialties they have.
 Style, which identifies how the company is managed by executive leadership.
 Shared values, which are the beliefs, culture, and ethics of an organization.

4.7.Levels of Self-Awareness
 Differentiation: A baby begins to acknowledge their own reflection. They may detect there is something different or special about
looking at their reflection.
 Situation: A baby begins to recognize their own reflection, being, and movements as separate from those around them.
 Identification: This is the stage during which a child fully knows that it is their own reflection in a mirror. They know, "This is me."
 Permanence: They have a complete sense of themselves and can identify themselves in pictures or videos, even as their appearance
changes.
 Self-consciousness: A child adapts a third-person point of view of themselves; they become aware of the idea that others perceive
them in certain ways.
4.8.Types of Self-Awareness
Public Self-Awareness
This type emerges when people are aware of how they appear to others. Public self-awareness typically emerges in situations when people are at
the center of attention.
You may experience public self-awareness in the workplace, such as when you're giving an important presentation or when telling a story to a
group of friends.
Private Self-Awareness
This type happens when people become aware of some aspects of themselves, but only in a private way. For example, seeing your face in the
mirror is a type of private self-awareness.
For example, journaling, meditating, and practicing mindfulness can help you become more aware of your inner thoughts, feelings, and
sensations.

Definition of Conflicts:
 Stephen P Robbins – Conflict consists of all kinds of opposition or antagonistic interaction. It is based on scarcity of power,
resources, or social position and differing value structures.
4.9.Types of organisational conflict

Task conflict
The first of the three types of conflict in the workplace, task conflict, often involves concrete issues related to employees’ work assignments and
can include disputes about how to divide up resources, differences of opinion on procedures and policies, managing expectations at work, and
judgments and interpretation of facts.

Of the three types of conflict discussed here, task conflict may appear to be the simplest to resolve. But task conflict often turns out to have
deeper roots and more complexity that it appears to have at first glance. For example, co-workers who are arguing about which one of them
should go to an out-of-town conference may have a deeper conflict based on a sense of rivalry.

Task conflict often benefits from the intervention of an organization’s leaders. Serving as de facto mediators, managers can focus on identifying
the deeper interests underlying parties’ positions. This can be done through active listening, which involves asking questions, repeating back what
you hear to confirm your understanding, and asking even deeper questions aimed at probing for deeper concerns. Try to engage the parties in a
collaborative problem-solving process in which they brainstorm possible solutions. When parties develop solutions together, rather than having
an outcome imposed on them, they are more likely to abide by the agreement and get along better in the future.

Relationship Conflict

The second of our three types of conflict, relationship conflict, arises from differences in personality, style, matters of taste, and even conflict
styles. In organizations, people who would not ordinarily meet in real life are often thrown together and must try to get along. It’s no surprise,
then, that relationship conflict can be common in organizations.
Suppose you’ve felt a long-simmering tension with a colleague, whether over work assignments, personality differences, or some other issue.
Before turning to a manager, you might invite the colleague out to lunch and try to get to know him or her better. Discovering things you have in
common—whether a tie to the same city, children the same age, or shared concerns about problems in your organization—may help bring you
together.

If you feel comfortable, bring up the source of the tension and focus on listening to the other person’s point of view. Resist the urge to argue or
defend your position. When you demonstrate empathy and interest, he or she is likely to reciprocate. If the conflict persists or worsens, enlist the
help of a manager in resolving your differences.

Value Conflict

The last of our three types of conflict, value conflict, can arise from fundamental differences in identities and values, which can include
differences in politics, religion, ethics, norms, and other deeply held beliefs. Although discussion of politics and religion is often taboo in
organizations, disputes about values can arise in the context of work decisions and policies, such as whether to implement an affirmative action
program or whether to take on a client with ties to a corrupt government.

According to MIT professor Lawrence Susskind, disputes involving values tend to heighten defensiveness, distrust, and alienation. Parties can
feel so strongly about standing by their values that they reject trades that would satisfy other interests they might have.

Susskind recommends that instead of seeking to resolve a values-based dispute, we aim to move beyond demonization toward mutual
understanding and respect through dialogue.

4.10.Conflict Management Process

1. Identification
The first step is to identify the conflict and understand its nature and source clearly. This involves recognising the issues causing tension, whether
related to miscommunication, conflicting interests, or structural problems within the organisation. For example, a team might discover that
recurring conflicts stem from unclear roles, leading to overlapping responsibilities and frustration among team members.

2. Assessment
Upon identifying a conflict, it’s crucial to assess its impact on the organisation and understand the parties’ perspectives. This includes gathering
information on how the conflict affects productivity, morale, and relationships. Understanding each party’s viewpoint helps in addressing the root
cause of a conflict. For instance, assessing a dispute over project deadlines might reveal differing expectations and pressures faced by team
members.

3. Planning
With a clear understanding of the conflict, the next step is to plan effective strategies for resolution. This involves setting goals, identifying
possible effective solutions, and determining the best approach to resolve the conflict. The planning phase might include preparing for
negotiations, selecting a mediator, or developing a framework for collaborative problem-solving. For example, planning might involve deciding
to hold a series of meetings to discuss and resolve the conflict incrementally.

4. Intervention
Intervention is the active phase of conflict resolution, where parties engage in discussions to resolve the conflict. Depending on the situation, this
might involve negotiation, mediation, arbitration, or other conflict resolution techniques. The goal is to reach a mutually acceptable solution. For
example, a mediator might facilitate a discussion between two departments to agree on allocating resources, ensuring both sides’ needs are met.

5. Evaluation
After the intervention, it’s important to evaluate the effectiveness of the conflict resolution process. This involves reviewing the outcomes to
ensure that the conflict has been resolved satisfactorily and that the solution is sustainable. If any issues remain unresolved or new conflicts arise,
adjustments may be necessary. For instance, evaluating the success of a new team workflow can help identify any lingering issues that need
addressing.

6. Follow-up
Follow-up is critical to ensure that the conflict resolution is lasting. This involves monitoring the situation over time to ensure that the resolution
is effective and that no new conflicts emerge. Regular check-ins with the involved parties can help address any residual issues and reinforce
positive changes. For example, scheduling follow-up meetings can help maintain open communication and prevent conflicts in future .

4.11.Conflict Management
Conflict management is the practice of being able to identify and managing conflicts sensibly, fairly, and efficiently.
4.12.Types conflict management
 Avoidance: This strategy involves ignoring or avoiding the interpersonal conflict. It is often used when the levels of conflict are
minor or when more information is needed before responding. While it can prevent unnecessary confrontations, overuse of avoidance
can lead to unresolved issues accumulating, potentially escalating the conflict in the long run.
 Accommodation: Accommodation emphasizes meeting the needs and desires of the other party, often at the expense of one's own
interests. This approach can be effective in maintaining harmony and showing goodwill, but it may also lead to imbalance if one's own
needs are consistently neglected.
 Competition: This strategy focuses on assertively pursuing one's own interests at the expense of the other party. It can be useful in
situations requiring quick, decisive action, or in high-stakes scenarios where vital interests are at stake. However, it can strain
relationships if used excessively.
 Compromise: Compromise seeks a middle ground where both parties make concessions to reach a mutually agreeable solution in
order to achieve a common goal. This strategy is beneficial when a quick resolution is needed and both parties' interests are
moderately important. It fosters cooperation to a common goal but may not always provide an optimal solution for either party.
Collaboration: Collaboration involves working together to find a win-win solution that fully satisfies the interests of both parties. This
approach is most effective in complex scenarios where the relationship is important. It requires time, open communication, and a high level of
trust but often leads to innovative and lasting solutions.

4.13.Meaning of Negotiation
Negotiation is a fundamental aspect of human interaction. It involves reaching mutually beneficial agreements through communication and
compromise
Successful Negotiation requires careful preparation and planning.

4.14.Types of Negotiation

1.Competitive negotiation
Competitive negotiation thrives on the principle of win-lose outcomes, where one party aims to secure the most advantageous deal possible,
often at the expense of the other party. For instance, in a procurement process, multiple suppliers might bid for a contract, with each aiming
to outdo the others on price or service terms to win the business.

2. Compromising negotiation
In compromising negotiation, parties seek a middle ground, making concessions to achieve a mutually acceptable solution. This approach is
often seen in wage or salary negotiations, where employers and employees agree on a number that balances the company's budget constraints
with workers' demands.

3.Power-based negotiation
Power-based negotiation leverages one party's position of strength over another to dictate terms. A large retailer negotiating supply prices
with a small manufacturer might use its purchasing power to secure lower prices, knowing the manufacturer depends heavily on the retailer's
business.

4. Principled negotiation
Principled negotiation focuses on mutual interests rather than positions, aiming for win-win outcomes. It involves identifying shared goals
and working in collaboration to achieve them. An example is a business partnership where two companies collaborate on a joint venture,
pooling resources and expertise for mutually beneficial outcomes.

5.Team negotiation
Team negotiation involves multiple representatives or negotiators from one or both parties. It is common in complex business deals, such as
mergers and acquisitions, where various departments (legal, financial, operational, etc.) need to agree on different aspects of the deal.

6. Multiparty negotiation
Multiparty negotiation includes more than two parties and is seen in situations like coalition government formations, where multiple political
parties must negotiate to form a government, agreeing on policy priorities and cabinet positions.

7.Adversarial negotiation
In adversarial negotiation, parties view each other as opponents, and the process may be confrontational. Legal disputes often take this form,
with each side aiming to secure a judgment in their favour.

8. One-shot negotiation
One-shot negotiation happens when parties negotiate a single deal with no expectation of future interactions. For example, buying a car from
a dealer you are unlikely to visit again may involve one-shot negotiation as it focuses on getting the best immediate terms.

9. Repeated negotiation
Repeated negotiation occurs between parties with ongoing relationships. It emphasises long-term outcomes and trust. Long-term supplier
agreements are a typical scenario where both sides aim for terms that will sustain their relationship over time.
4.15.Meaning of Workplace Spirituality :

Workplace spirituality is defined as the recognition and integration of spiritual values and practices within a workplace. It is also a process that aims to
foster a sense of purpose, meaning, and interconnectedness among employees.

4.16.Benefits of workplace spirituality

 Improved overall well-being of employees.
 Increased employee productivity.
 Reduced absenteeism.
 Increased motivation and commitment.
 Increased job satisfaction.
 Improved quality of life.
 Increased employee morale.
 Reduced workplace stress.
 Reduced employee burnout.
 Reduced employee turnover rates.
 Improved work performance.

4.17.Types of Workplace Spirituality

 Increased job satisfaction. A 2016 study found workplace spirituality to be positively correlated with job satisfaction and trust

among employees. It’s easy to see how this creates a ripple effect and benefits everyone. When any given person finds sense and

meaning in their job, all the collective tasks become more effortless and on-track.

 Individual growth and fulfilment. In spiritual workplaces, there’s usually more room for individual expression and diversity of

viewpoints. Thanks to that, people know their opinion is valued and become empowered to live and work better. In the long-term, this

makes them more committed to their organizations and prevents burnout.

 Psychological safety. In a culture where competition is prioritized, people often feel pressured to prove their worth through work-

related achievements. This keeps employees on constant edge, never able to relax completely. Conversely, spirituality at work brings

out the values of collaboration and understanding, allowing people to feel at ease inside their teams.

 Enhanced creativity. Creativity is a natural consequence of psychological safety at work. To be creative means to look for solutions

and ideas that weren’t tested before and therefore carry a risk of failure. To explore them, people need to feel that they can afford to

make a mistake. As Teresa Amabile wrote in How to Kill Creativity, “[t]o enhance creativity, there should always be a safety net

below the people who make suggestions.”

UNIT V
Contemporary practices in Organisational Change and Development International:
Organisational Behaviour Practices - Organizational Change and Change Management. Organisational Development – Meaning, Models and
Interventions.
5.1.Meaning of Organisational change Management :
Organizational change refers to the actions in which a company or business alters a major component of its organization, such as its culture, the
underlying technologies or infrastructure it uses to operate, or its internal processes.
 New leadership at the helm of the company or within its departments
 Shifts in the organizational team structure

 The implementation of new technology

 The adoption of new business models

5.2.TYPES OF ORGANIZATIONAL CHANGE MANAGEMENT

Adaptive changes are small, incremental changes organizations adopt to address needs that evolve over time.
Throughout the process, leadership may add, subtract, or refine processes.
One example of an adaptive change is an organization that upgrades their computer operating systems from Windows 8 to Windows 10.
Transformational changes have a larger scale and scope than adaptive changes. They can often involve a simultaneous shift in mission and
strategy, company or team structure, people and organizational performance, or business processes.
For this reason, managers need to understand that the change process must be tailored to the unique challenges and demands of each situation.

5.3.ROLE IN ORGANIZATIONAL CHANGE

 Effective communication, including actively listening to your team and colleagues
 A highly developed level of emotional intelligence
 Strong organizational skills
 Attention to detail
 Problem-solving and decision-making skills
 Delegating without micromanaging

Organizational Change

Organizational change means any significant shift or transformation in how a company operates, particularly regarding its human resources
practices. It includes the organization’s growth and development processes in different forms.

5.4.Types of Organizational Changes

Strategic change

Organizations implement strategic changes to their business to achieve goals, boost competitive advantage in the market, or respond to market
opportunities or threats. A strategic change includes making changes to the business’s policies, structure, or processes. The upper management
and the Chief Executive Officer often bear the responsibility for strategic change.

People-centric organizational change

While all changes affect people, people-centric types of organizational change include instituting new parental leave policies or bringing in new
hires. When implementing a people-centric change, the leadership must bear in mind that employees will naturally resist change. A people‐centric
change requires transparency, communication, effective leadership, and an empathetic approach.

Structural change

Structural changes are changes made to the organization’s structure that might stem from internal or external factors and typically affect how the
company is run. Structural changes include major shifts in the management hierarchy, team organization, the responsibilities attributed to
different departments, the chain of command, job structure, and administrative procedures. Circumstances that lead to structural change include
mergers and acquisitions, job duplication, changes in the market, and process or policy changes. These changes often overlap with people-centric
changes as they directly affect most, if not all, employees.
Technological change
The increasing market competition and constantly evolving technology lead to technological change within organizations. Technology change
often involves introducing new software or systems to improve business processes through SaaS change management. However, technology
project goals are often improperly defined and poorly communicated, which scares and frustrates your employees and ultimately leads to
resistance. Technology change management is all about identifying new technology and implementing a digital strategy for improved
productivity and profitability.
Unplanned change

Unplanned change is defined as a necessary action following unexpected events. An unplanned change cannot be predicted but can be dealt with
by effective change management.
Remedial change
Remedial changes are reactionary. This type of change occurs when a problem is identified, and a solution needs to be implemented. As these
changes are designed to address an issue; they call for immediate action.Reactionary change may not be ideal, but it’s inevitable. The benefit of
the remedial change is that judging its success is quick and simple with just one question – was the problem solved or not.

5.5.Organisational Behaviour Practices

Planning

No lasting positive change ever comes without some advance planning. Ronald Kirk Kandt of NASA's Jet Propulsion Laboratory states that
organizations need to plan for change by minimizing risk and maximizing return. Companies should conduct research to identify barriers to
positive change in the workplace, so they can eliminate potential obstacles from the outset. For instance, McGinnis states that workshops that
help employees identify their own biases about other co-workers can eliminate misunderstanding and open up communication.

Feedback

Most companies and organizations use an evaluation system to ensure that workers are meeting necessary job standards. However, having a
yearly evaluation does little to foster ongoing positive change. Instead, having a positive feedback system in place will result in greater
motivation and change. Employees who are trained to focus on the positive aspects of their own behavior will think and focus on positive change,
rather than what they are doing wrong.
Group Thinking

In some workplace settings, such as the healthcare industry, collective knowledge is important. Sheila K. McGinnis makes this argument and
adds that it's also important for professional healthcare workers to be united by a common purpose. In many instances the margin for error is
minimal. Workers united by a common identity and purpose must be reminded of this shared identity on a regular basis. Other industries can
learn from this example as well. Workers who share a common identity and purpose will be more likely to unite and implement positive change.

Measuring Change

Organizations can also measure change in a number of different ways. For instance, companies can create surveys that measure the willingness of
employees to change certain behaviours or organizational practices. By the same token, the effectiveness of that change can be measured by
evaluating the opinions of employees once changes have been implemented. Through a process of constant testing and evaluation, organizations
can foster a climate of change by utilizing employee input.

5.6.Models of organisational development

1.McKinsey’s 7S Design Model

Strategy defines how the company will compete in the market.

Structure is the way it organizes business functions, reflected in the organization chart.

Systems are the decision framework, processes, and procedures that determine how the company does business.

Skills are the organization’s ability to perform, usually defined in a competency framework that aligns them from organization competencies to
individual knowledge, skills, and abilities and the analytics to manage them.

Staff is the shape of the workforce and how it is managed.

Style refers to the way top-level leaders manage the organization and the symbolic value they present to stakeholders.

Shared Values are the norms and standards that guide behavior at every level of the organization and thus are the core of the 7s model.
2.Jay Galbraith’s Star Model

 Strategy determines goals and objectives, values and missions, and the “basic direction of the company.” It establishes the “criteria

for choosing among alternative organizational forms” to enable strategists to choose the relative importance of activities.

 Structure determines where power and authority lie in the organization based on analysis in four areas:

o Specialization refers to job specialties required to perform work.

o Shape describes the number of people in organization units or span of control at each level.

o Distribution of power can be vertical, determining how flat or hierarchical the organization is; it can also be lateral,

referring to the movement of power to a department dealing with critical issues.

o Departmentalization is the formation of organization units on the dimensions of functions, workflow processes, markets,

customers, and geography.

  Processes are the flow of information and decision processes across the organizational structure. Vertical processes allocate funds and

talent, while horizontal (lateral) processes are the workflow.

 Rewards align employee goals to organizational goals. To do so, they must align with the other design components.

 People refers to aligning human resources policies and functions to develop both people and organizational capabilities.

Weisbord’s Six Box Model

1. Purpose: What business are we in.

2. Structure: How do we divide up the work.

3. Relationships: How do we manage conflict (coordinate among people? With what technologies.
 4. Rewards: Is there an incentive for doing all that needs doing.

5. Leadership: Is someone keeping the boxes in balance.

6. Helpful Mechanisms: Have we adequate coordinating technologies.

4.Transformation Model

Environment. The organization is a living system that can only survive if it maintains “harmony with its external environment.” That

environment includes the competition and “the legal, social, and political climates.”

Strategy is about how the organization will compete by adding value for customers. It includes performance targets and a system for growth. It’s

about where the organization is going.

Core Process is the flow of work in the organization and all enabling technology and resources. It organizes all other business activities around

core processes.

Structure describes how the business organizes people around business processes. It helps us understand boundaries, roles, responsibilities, and

reporting relationships.

Systems are the activities and tasks that organize and coordinate work. We are probably more accustomed to calling them functions.

Interestingly, the Centres’ something of a side note: “the most effective systems are often the simplest.”

Culture is how the organization really operates and how well it translates strategy into practice.

Results are the measures of how well the organization functions. Well-designed metrics are the basis for understanding performance.
Leadership sets goals and monitors results, defines the vision and strategy, and designs the organization.
5.8.
Characteristics of Organisational Development
Planned and Long-Term Approach
OD is not a quick fix but a strategic, long-term commitment to improve the overall functioning of an organization. It involves meticulous
planning and a structured process that spans several years, ensuring that the changes implemented are sustainable and deeply ingrained within the
organizational culture.

Systemic and Systematic

OD views the organization as an interconnected system where changes in one area can impact others. It involves a systematic approach to
understanding and improving the organization’s structure, processes, and culture.
By considering the organization holistically, organizational development ensures that interventions are well-coordinated and aligned with the
overall strategic goals, leading to more effective and integrated solutions.

Action-Oriented
OD focuses on practical implementation rather than theoretical discussions. It emphasizes taking action to address issues and achieve measurable
results. This characteristic of OD ensures that OD initiatives lead to tangible improvements and real-world outcomes, enhancing organizational
performance and effectiveness.
Collaborative Management
OD promotes a collaborative approach to management, involving employees at all levels in the change process. It encourages teamwork, open
communication, and shared decision-making.
Collaboration fosters a sense of ownership and commitment among employees, leading to higher engagement and a more positive organizational
culture.

Change Agent Involvement

OD often involves external consultants or internal change agents who facilitate the change process. These experts provide an objective
perspective and specialized knowledge to guide the organization through the transition.
The involvement of change agents ensures that the OD process is managed effectively, leveraging their expertise to overcome resistance and
drive successful outcomes.

Problem-Solving Focus
OD aims to identify and address specific problems within the organization. It uses data-driven methods, such as action research, to diagnose
issues and develop effective solutions.

Experiential Learning
OD emphasizes learning through experience, allowing participants to apply new concepts and skills in real-world settings. This approach involves
training, workshops, and practical exercises.
Experiential learning enhances the effectiveness of training programs by providing hands-on experience, making it easier for employees to
transfer new knowledge and skills to their daily work.

Feedback Mechanisms
Regular feedback is a core component of OD. It involves collecting data on the effectiveness of interventions and providing feedback to
participants for continuous improvement. Feedback mechanisms ensure that OD initiatives are adaptive and responsive, allowing for course
corrections and refinements based on real-time data and insights.

Humanistic Values
OD is rooted in humanistic values that prioritize the well-being and development of employees. It focuses on creating a supportive and inclusive
work environment that fosters personal and professional growth.
By emphasizing humanistic values, OD helps build a positive organizational culture that enhances employee satisfaction, motivation, and overall
well-being.

Focus on Organisational Culture

OD recognizes the importance of organizational culture in shaping behavior and performance. It involves efforts to understand and transform the
underlying values, beliefs, and norms that define the organization.
A strong focus on culture ensures that OD initiatives are aligned with the organization’s core values, leading to deeper and more meaningful
changes that support long-term success.
5.9.The Benefits of Organisational Development

1.Continuous development
Entities that participate in organizational development continually develop their business models. Organizational development creates a constant
pattern of improvement in which strategies are developed, evaluated, implemented, and assessed for results and quality.
In essence, the process builds a favorable environment in which a company can embrace change, both internally and externally. The change is
leveraged to encourage periodic renewal.
2.Increased horizontal and vertical communication
Of considerable merit to organizational development is effective communication, interaction, and feedback in an organization. An efficient
communication system aligns employees with the company’s goals, values, and objectives.
An open communication system enables employees to understand the importance of change in an organization. Active organizational
development increases communication in an organization, with feedback shared continuously to encourage improvement.
3. Employee growth
Organizational development places significant emphasis on effective communication, which is used to encourage employees to effect necessary
changes. Many industry changes require employee development programs. As a result, many organizations are working toward improving the
skills of their employees to equip them with more market-relevant skills.

4. Enhancement of products and services

Innovation is one of the main benefits of organizational development and is a key contributing factor to the improvement of products and
services. One approach to change is employee development – a critical focal point is a reward for motivation and success.
Successful engagement of employees leads to increased innovation and productivity. Through competitive analysis, consumer expectations, and
market research, organizational development promotes change.
5. Increased profit margins
Organizational development influences the bottom line in many different ways. As a result of increased productivity and innovation, profits and
efficiency increase. Costs come down because the organization can better manage employee turnover and absenteeism. After the alignment of an
entity’s objectives, it can focus entirely on development and product and service quality, leading to improvements in customer satisfaction.

5.10.Types of OD interventions
1.Diagnostic interventions

An OD intervention starts with a diagnostic intervention. It involves collecting data points and information about your organization through. This
is done through things like a SWOT analysis, operations records, surveys, feedback, and more. Every process should help to diagnose
organizational issues. Once you identify a problem area you can move forward with a more specific intervention.

2.Team interventions

An OD team intervention can support teams and groups in your organization to become more effective. You might try team-building activities,
new conflict-resolution techniques, and leadership development programs.

The type of intervention you choose should depend on the specific needs of your organization. For example, teams that have trouble working
together may find benefits in conflict resolution. Driven teams may find benefits in leadership development programs.

3.Structural interventions

Structural interventions aim for the actual structure of your organization. You might redesign job descriptions and shuffle responsibilities to
ensure the right people are on task. Or, you might improve a certain process to optimize workflow between employees.

4.Techno-structural interventions

Technology is changing all the time. That’s why many organizations conduct techno-structural interventions. You might use a new technology or
try automating certain tasks to make your team more efficient. You might tackle workflow optimization with administrative tasks that drive
organizational change.

5.Human resource interventions

Human resource interventions can help make sure your employees are at the top of their game, and they can make it easier to provide support if
they aren’t.

You can use a program like PerformYard to enhance performance management and streamline the review process .
5.11.Objectives of organizational development interventions
  Adapting to Change
Change is difficult, and we normally tend to struggle with it. For the people of an organisation to adapt to internal and external change with least
resistance, it needs to be facilitated in an appropriate way. And organisational development does that job really well.
 Improves Capability
It does this by helping people get self-sufficient when it comes to solving challenges that they may face due to changes that may occur in the
future. This results in improved organisation capability and performance.
 Focuses on the Organisation as a Team
It therefore works on improving the personal and interpersonal behaviours of the people within the organisation. This fosters a better and
healthier work environment and one that believes in teamwork. It also helps in improving trust levels and communication amongst team
members. Which eventually takes the organisation to the next level.

5.12.Benefits of organizational development interventions

 Employee Satisfaction and Retention: At the heart of organizational development is the well-being and sustained contentment of
employees. Organizational design complements this by ensuring the structure of the organization supports the needs and aspirations of
its employees. When individuals clearly understand their roles, responsibilities, and the flow of information, they feel more connected
and committed, leading to greater retention.

 Increased Productivity: Organizational design lays the groundwork for efficient and effective workflows. By creating clear and
concise hierarchies, defining specific and measurable roles, and ensuring open and transparent communication channels, employees
can work seamlessly and efficiently, thus enhancing productivity. With the backing of organizational development principles, this
setup ensures these workflows align with the organization’s goals and values.

 Streamlined Processes: While organizational development can identify and rectify inefficiencies, holistic organizational design puts
in place effective systems and structures that prevent such inefficiencies from arising in the first place. Whether it’s the creation of
collaborative cross-functional teams or establishing a flexible matrix structure, a well-thought-out design can ensure efficient resource
allocation and timely process flow.

 Enhanced Decision-making: A strong organizational design defines clear decision-making paths, empowers decision-makers,
promotes collaboration, and rewards good decision-making. By ensuring that decisions are made at the right levels and by the right
people, coupled with organizational development’s emphasis on open communication, organizations can ensure faster, better-quality
decisions that resonate with the company’s mission.

 Adaptability: Organizational design plays a crucial role in ensuring flexibility. By regularly revisiting and refining the organization’s
structure, companies can remain agile, making them better equipped to handle industry shifts and market changes. Combined with
OD’s broader strategies, this ensures that organizations remain resilient and proactive in the face of change.

 Sustainable Growth: Organizational design, when aligned with OD principles, and accountable to stakeholders, ensures that growth
isn’t just achievable but scalable and sustainable. As companies expand, their structures may need regular re-evaluation and
realignment. A design that promotes collaboration and continuous learning ensures that growth doesn’t come at the cost of efficiency
or employee well-being.

UNIT-I

Assignment- What is challenging face to our management?

UNIT-II
Assignment- Employer Job Satisfaction .
UNIT-III
Assignment – Defining business communication tools.
UNIT-IV
Assignment – Explanation about the analysis.

UNIT-V

Assignment – Organisational modelling and invention.