NOTES ON OB

MODULE – I
ORGANISATION:
An organization is a group of people working together in a formally
organized way to achieve a common objective. The main objective is
profit maximization.
Features of an organization:-
 Group of people
 Formally organized people/structure
 Co-ordination among people
 Rationality
 Purposefully created to achieve a common goal

BEHAVIOUR:
It is how a person behaves. It is an observable and measurable activity of human
being.

ORGANISATIONAL BEHAVIOUR
“It is a field of study that investigates the impact those individuals,
groups; structures have on behavior within the organization, for the
purpose of applying such knowledge towards improving
organizational effectiveness‟.

Hence based on the definition we can say that

 OB is a field of study
 It studies individuals, groups and structures
 It applies the knowledge to improve organizational effectiveness.

Therefore Organization Behavior is concerned with two aspects:-

 How people behave in an organization?
 How their behavior does affect their performance?

KEY ELEMENTS OF ORGANISATIONAL BEHAVIOUR

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OB studies the following aspects
 People: Individuals & Groups
 Structure: Official Relationship
 Technology: Physical, Economic resources
 Environment: Political, Legal an Natural

NATURE OF OB
1. It is just a field of study and not a discipline: OB is accepted science with
theoretical foundation and it serves as a base of research. It is a recent field of
study which has its origin from management. It is broad based and inter
disciplinary in nature. Hence it is not a discipline but a field of study.
2. It is interdisciplinary in nature: It is broad based and inter disciplinary in
nature because it has its origin from subjects like psychology, sociology,
anthropology, medical sciences, political science etc., It is normative science
and value centered :( cause and effect application):A positive science analyses
only the cause and effect relationship but a normative science analyses the cause
and effect and also its application to achieve organizational results. It is also
value centered as it analyses what is acceptable to employees based on the
values they have.
3. It is applied science: The principles of OB are proven and can be applied to
solve organizational problems.
4. It has humanistic approach: OB considers human feelings, their values and
attitudes and considers that human beings are not machines and they too are
cared for.
5. It has optimistic approach: It has positive approach and views that the
employees well contribute positively to achieve the objectives of the
organization. It is directed towards achievement of organizational
objectives: Organizational objectives are given more importance than
individual objectives.
6. It has rational approach: It believes that there is a reason being every
behavior of man and works on the same formula.
7. It is developmental in nature: It aims at the development of its employees
and helps them to attain their goals.
8. It is part of management science: OB is a study that has emerged from the
discipline of management .Hence is a part of management science.
9. It is both science and art: OB is both science and art .It is science because,
like science OB is also a systematic body of knowledge, its analyses is also

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consistent in nature, it can be systematically explained and critically evaluated,
the analyses are based on the findings of management theorists.
It is art because it is related to bringing desired result, it is application of skills
like leadership skills, managerial skills, training skills etc.,
10. It has total systems approach: It takes all variables in consideration. It
studies individuals and groups in formal and informal relations in organizations.
FOUNDATIONS AND BASIC CONCEPT OF OB
1. Individual differences exist: Every individual has a unique personality,
which is stable in nature. Hence each person is different from the other based on
his physiological, psychological and social characteristics. Three aspects should
taken care while studying human behavior:
2. Behavior is caused: Behavior is what a person does and it is cause and effect
relationship. It means that there is a reason behind every single behavior on any
individual. Hence the cause should be evaluated by the manager in an
organization.
3. Behavior is complex: Though OB believes that behavior is caused, yet it is
very difficult to understand human behavior.
4. Value of a person: Human value is given importance. It means one should be
treated with respect and dignity. Values and attitudes should be considered.
Men at workplace should be considered
5. Whole person concept
The concept states that a individual employed by the organization is cannot be
separated form his personal life aspects .Though an organization employs a
person‟s skill & brain in his organization, yet it is a fact that an individual
cannot be separated from his home life and work life.
6. Role of a person
A role is a pattern of actions expected of a person in activities involving others.
Each individual plays different roles in his life time.( Parent, son , Friend ,
Spouse, team member, supervisor, follower, advisor, consumer, investor etc).
Hence it becomes necessary for him to understand the role clearly and act
accordingly.
7. Difference between individual behavior and group behavior:
Individual behavior may be good but group behavior may be bad .Group
behavior may be good but Individual behavior may be bad. As Individual
behavior may vary form group behavior, human behavior should be studied in
both the aspects.

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SCOPE OF OB
OB can be studied in three different levels: -
1. Individual-
 Intra Individual- Understanding human behaviour i.e. how and why an
individual behaves and to understand the factors affecting human
behaviour
 Inter Individual- To understand the working relationships, role analysis
and transaction analysis of individual with others.
2. Group
 Intra Group – understand the group pressure on individuals , influence of
group norms on individuals , communication process in organization.
 Inter Group – Relationship between groups, achievement of group
objectives and group objectives.,
3. Organization:
 Intra- Organization- use of human power in organizations , leadership
qualities, communication in organization.
 Inter –Organization- organization change, external relationships,
Development standards and concepts for future, Scientific and rational
approach to Human Behavior.

DISCIPLINES CONTRIBUTING TO ORGANIZATIONAL BEHAVIOR

1. Sociology: It is the study of people in relation to their fellow human beings,
The field of sociology has made valuable contributions in the study of group of
individuals, group dynamics, formation of groups, communication, formal and
informal organizations etc.,
2. Anthropology: It is the study of societies to learn about human beings and
their activities. It helps us to understand values, attitudes and behavior between
people in different regions and organizations.
3. Economics: It is the science that deals with the production, distribution, and
consumption of goods and services, or the material welfare of humankind.
4. History: It is the study of the origin and evolution of mankind. It help us to
understand the behavior of people and their origins
5. Political science: It helps us to study the current political and legal scenario
and the role of the study of human behavior under the current situations.

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ORGANISATIONAL DESIGN AND ORGANIZATION STRUCTURE
ORGANIZATIONAL DESIGN
Organizational design is the process of aligning the structure of an organization
with its objectives, with the ultimate aim of improving efficiency and
effectiveness.
A company will choose their organizational structure based on their needs. The
organizat ional design will reflect a structure that aligns to the business at any
given moment in time.
More than designing a structure, it involves:
 Understanding the imperative for change and the environment
 Understanding the business processes, workflows, roles and
responsibilities, volumes of work, activity analysis and resources
 Designing and testing new models or structures
 Planning and managing the transition from the old structure to the new
 Implementing and monitoring the change

ELEMENTS OF ORGANISATIONAL DESIGN

1. Departmentalization
Departmentalization is a process wherein jobs/teams are combined together into
functional units called as departments on the basis of their area of specialization,
to achieve the goals of the organisation . It also refers to how the organizational
structure groups the company's functions, offices and teams. Departments are
usually sorted on the basis of the kinds of tasks the workers in each department
perform. It can also be divided based on product or brand lines, geographic
locations or even customer needs.
2. Chain of Command
The chain of command in a company refers to the different levels of command
within the organization. It starts with the top position such as CEO or the
business owner, all the way down to the front-line workers. Companies create a
chain of command in order to flow instructions downward and accountability
upward by providing each level of workers with a supervisor.
3. Span of Control
An organization‟s span of control defines how many employees each manager
is responsible for within the company. There is no single type of span of control
that’s ideal for all companies or even for all businesses in a specific industry.
The optimal span will depend on a number of factors, including the size of the
workforce, how the company is divided into departments and even the

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company’s specific business goals and strategies. Based on the manager’s
individual style or approach, the span of control could range from three or four
to 15 or more. Of course, managers who are placed higher up the chain of
command typically have a tighter span of control, as they are directly
responsible for middle-manager or team leaders.
4. Centralization and Decentralization
Centralizing authority in a business means concentration of power with the
higher authority where the middle management is left with little to no input
about the goals the company sets. This system is typical in larger corporate
organizations, as well as at companies in more conservative industries.. A
decentralized system allows all levels of management the opportunity to give
input on big-vision goals and objectives. Larger, company-wide decisions are
still generally reserved to C-level officers, but departmental managers enjoy a
greater degree of latitude in how their teams operate.
5. Work Specialization
In any business, employees at all levels typically are given a description of their
duties and the expectations that come with their positions. In larger companies,
job descriptions are generally formally adopted in writing. This approach helps
ensure that the company’s specific workforce needs are met, without any
unnecessary duplication of effort. Work specialization ensures that all
employees have specific duties that they are expected to perform based on each
employee's work experience, education and skills. This prevents an expectation
that employees will perform tasks for which they have no previous experience
or training and to keep them from performing beneath their capacities.
6. Formalization
Finally, organizational structures implement some degree of formalization. This
element outlines inter organizational relationships. Formalization is the element
that determines the company’s procedures, rules and guidelines as adopted by
management. Formalization also determines company culture aspects, such as
whether employees have to sign in and out upon arriving and exiting the office,
how many breaks workers can take and how long those breaks can be, how and
when employees can use company computers and how workers at all levels are
expected to dress for work.
ORGANIZATION STRUCTURE
An organization structure explains the position and official relationships
between the various individuals working in an organization

TYPES OF ORGANIZATIONAL STRUCTURES

1. Line organizational structure

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2. Line and Staff organizational Structure
3. Functional organizational Structure
4. Matrix organizational Structure
5. Project organizational Structure
6. Committee organizational Structure
LINE ORGANIZATION STRUCTURE
 It is the simplest form of organization Structure. It resembled old military
organizations.
 Line organization is direct and people at different levels know to whom
they are accountable.
 Any enterprise that starts small probably starts with line type of
organization. . There is a vertical downwards flow of authority and an
upward flow of responsibility in such an organization
 The authority flows directly from the Works Manager to Superintendent
to Foreman and from them to workers.
 The authority is greatest at the top and reduces through each successive
level down the organizational scale. It is known as military organization.
 Here the superior at the top makes decisions and communicates his
decisions and assigns certain work to his immediate subordinate.
 There is a vertical downwards flow of authority and an upward flow of
responsibility in such an organization.

MERITS:
 There is no complicated relationship in this organization . it can easily be
understood by anyone. It clearly defines the authority and responsibility
of each individual.
 Each person knows clearly whom he should report to and who should

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 report to him. There is unity of command i.e. a subordinate gets orders
from one superior only.
 It provides scope for better supervision. This ensures greater discipline.

DEMERITS
 It lacks specialization.
 The line managers are overburdened with lot of work..
 It is always downward communication as result the subordinates may
lose initiative. The line managers enjoy monopoly in the matter of
decision making.
Line organization has been found to be very good for small organization that
employs few workers.
1. LINE AND STAFF ORGANIZATION:
In this type of organization staff experts are specialists in specific areas, assist
the line personnel. The experts do not have the powers to command and
subordinates other than those who are under their direct control .
The staff experts to can advice the line personnel on certain matters but they do
not have authority to take decision on vital issues.
It is for the line manager to decide whether to accept the suggestion of the staff
specialist or not.
The staff experts provide relief to the line personnel when the latter are over
burdened with work.

MERITS
Staff experts provide support to the line personnel. This provides line executives
to perform well.

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The line executive gets relief from work burden.
 The suggestion given by the staff experts helps to take better decisions.
 As every executive performs only a specific task he is able to do it with
full concentration.

DEMERITS
 Conflicts often arise between the line and staff executives.
 The staff experts do not have the authority to make decisions they can
only advice .
 The line and the staff pattern of the organization would enhance the cost
of cooperation.

2. FUNCTIONAL ORGANIZATION STRUCTURE

 The organization is divided into a number of functional areas.
 The specialist in charge of a functional department has the authority over
all other employees for his function.
 It is a kind of Formal Organization whose structure is based on
organizing resources to perform specialized tasks or activities in order to
attain the goals of organization.
 This structure emerges from the idea that the organization must perform
certain functions in order to carry on it’s operations.
 Functional structure is created by grouping the activities on the basis of
functions required for the achievement of organizational objectives.
 It is suitable for large scale organization.

CHARACTERISTICS OF FUNCTIONAL ORGANIZATION

1. Functional authority relationship

2. Limited span of management
3. Line and staff division
4. Organization growth through emphasis on sub goals
5. Specialization on functional areas

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MERITS
1. It promotes specialization, each department specialize in a particular line of
work
2. Each functional head looks after specific activities so no burden.
3. Better control.
4. each individual concentrates on a particular task so maximum efficiency
DEMERITS
1. more number of departments and divisions
2. difficult to control and co ordinate
3. delay in arriving in decisions
4. Expensive to adopt
4. MATRIX ORGANISATION STRUCTURE
 Matrix organisation combines two structures – functional
departmentation and project structure.
 Functional department is a permanent feature of the matrix structure and
retains authority for overall operation of the functional units.
 Project teams are created whenever specific projects require a high
degree of technical skill and other resources for a temporary period.
 Project team form the horizontal chain and functional departments create
a vertical chain of command.
 Members of a particular team are drawn from the functional departments
and are placed under the direction of a project manager who has the
overall responsibility of a particular project. Matrix organizations are
used in industries with highly complex product systems for example,
aerospace industry where project teams are created for specific space or
weapon systems. Suitable where a large number of small projects will
have to be managed.
 A matrix organization is also known as a multiple command system as it
has two chains of command, i.e the flow of authority is both vertical and
horizontal .
 These departments have to share the resources with the rest of the
organization.

Advantage
 Is oriented towards end results.
 Professional identification is maintained
 Pinpoints product-profit responsibility

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Disadvantages
Conflict in organization authority exists.
Possibility of disunity of command exists
Requires manager effective in human relations

5. PROJECT ORGANIZATION STRUCTURE

 The project structure consists of a number of horizontal organizational
units to complete projects of a long duration.
 A team of specialists from different areas is created for each project.
 Usually this team is managed by the project manager.
 The project staff is separate from and independent of the functional
departments.

Advantages
 Special attention can be provided to meet the complex demand of the
project.
 It allows maximum use of specialist knowledge thus chances of failure
are very less.
 Project staff works as a team towards common goal which results in high
motivation level for its members.
Disadvantages
As the project staff consists of personnel from diverse fields, it might be quite
challenging for the project manager to coordinate among them.

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6. COMMITTEE ORGANIZATION STRUCTURE:
Committee Organization is a group of persons entrusted with a certain tasks.
The committee organization members are expected to discuss certain problem
and come with a solution.. Eg. Board of directors in a company. The committee
may meet at regular intervals and discuss the progress of work at a various
levels.
CHARACTERISTICS OF COMMITTEE ORGANIZATION

 A committee is a group of persons there should be at least two persons.

 There is no limitation on the maximum number of persons.
 However, if number of persons rises above seven, communication tends
to become centralized because committee members do not have adequate
opportunity to communicate directly with one another.
 A committee is charged with dealing with specific problems and it cannot
go in for actions in all spheres of activities.
 There are strictly defined jurisdictions within which a committee is
expected to justify its existence. Beyond these limited spheres a
committee is doomed to fail as an organ of action.
 Members of the committee have authority to go into details of the
problems.
 This authority usually is expressed in terms of one vote for each member.
 A committee have the authority either to take a final decision or it may
merely decision or it may merely deliberate on problems without
authority to decide.
 A committee may be constituted at any level of organization.
 Moreover, the members of a committee may be drawn from various
levels. Usually in such a case, all the members of the committee enjoy
equal authority
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TYPES OF COMMITTEES:
A) Standing Committee: is never dissolved, there may be changes in
membership. The committee remains always. Eg.. The board of directors in a
company.
B) Temporary Committee: this one is created for a specific purpose. As soon
as the purpose has been accomplished the committee stands dissolved. Eg. if
there is a strike in the organization it forms a committee.
C) Executive Committee: a Executive committee is one that has powers to
make important decisions for the enterprise. Eg. Board of directors.
D) Advisory Committee: this committee can only make suggestions. It does
not have the powers to make decisions.
E) Formal committee: this is one that is constituted as per the values and
policies of the organization. It has hierarchy. It functions according to the lines
of authority.
F) Informal committee: this is the one that is not constituted as per the rules
and policies of the organization. Such a committee is the outcome of informal
meetings of the workers to discuss their work related problems.
Advantages:
1. Scope for group judgment
2. Secure proper co ordination
3. Committee members feel motivated when they participate in the discussion
4. Committee functions as a democratic organization.
5. Problems that cannot be solved by individual will have to be referred to a
committee.
Disadvantages:
1. Expensive
2. More time for discussions
3. Sometimes compromise decision made.

THEORITICAL FRAME WORK COGNITIVE

The conceptual framework of cognitive social learning theory is a valuable

clinical tool in understanding the reciprocal interactions that shape an
individual's sense of competence. It emphasizes the important influences of
modeled and observed behavior on learning. Mastery of a cognitive or social
task brings to the child a developing sense of competence as an
individual. Cognitive social learning theory takes into account the mutual
influences of the individual, the physical and psychosocial environment and the
task or behavior to be learned. All these factors are important in learning. It is
the triangle connections of motivation, learning & attitude.

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LIMITATIONS OF OB

Some of the limitations of Organizational Behavior are –

1. Organizational behaviour cannot abolish conflict and frustration but can only
reduce them. It is a way to improve but not an absolute answer to problems.

2. It is only one of the many systems operating within a large social system.

3. People who lack system understanding may develop a 'behavioral basis',

which gives them a narrow view point, i.e., a tunnel vision that emphasizes on
satisfying employee experiences while overlooking the broader system of an
organization in relation to all its public.

4. The law of diminishing returns also operates in the case of organizational

behaviour. It states, that at some point increase of a desirable practice produce
declining returns and sometimes, negative returns.

5. The concept implies that for any situation there is an optimum amount of a
desirable practice. When that point is exceeded, there is a decline in returns. For
example, too much security may lead to less employee initiative and growth.
This relationship shows that organizational effectiveness is achieved not by
maximizing one human variable but by working all system variables together in
a balanced way.

6. OB helps an individual to understand human behaviour only at workplace or

he/she may be a failure at domestic front.

7. OB has not contributed to improved interpersonal relations in an

organisation. Jealousies, back stabbing, harassments go side by side with
rewards, lectures, discussions, smiles etc.

8. OB is selfish and exploitive. With emphasis on motivation , efficieny,

productivity there exists a kind of competition among workers and they are not
able to live in harmony.

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 NOTES ON OB
MODULE- I
EVOLUTION OF ORGANISATION BEHAVIOUR

The evoluation of organisation behaviour are the back-bone of an individual’s

behaviour. There are 5 elements which shows the description of an organisation
and they are:

 Article
 Culture
 Belief
 Norms
 Values.
A. SCIENTIFIC MANAGEMENT

In Scientific Management Frederick Taylor has mentioned 3 combination of

elements i.e.

1. Well matched
2. Clearly defined
3. Fixed principles

principles of scientific management

Frederick Taylor has described five principles of management:

 Develop a science for each element of an individual’s work.

 Scientifically select the trainer to develop the worker.
 Heartily co-operate with the worker.
 Divide the work easily with the managers and the workers.
 Improve production efficiency through work studies, tools, economic
incentives.

B. CLASSICAL ADMINISTRATION

According to Henri Fayal there are 14 principles of management and they are
as follows:

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i. Division of labour: Specialization increases output by making employees
more efficient.

ii. Authority: Authority gives management the right to order. Authority goes
with responsibility.

iii. Discipline: Employee must obey and respect the rules. Good discipline is
the result of effective leadership.

iv. Unity of command: Every employee should receive communication from

only one person.

v. Unity of direction: Each group of organizational activities that have the

same objective should be divided by one manager using one plan.

vi. Remuneration: Wages paid to workers should be fair.

vii. Subordination of individual interest: The interest of any one employee or

group should not take precedence over the interests of the organization as a
whole.

viii. Centralisation: The optimum degree of centralization should be

maintained for each situation.

ix. Scalar chain: The Scalar chain measures the line of authority from top
management to the lowest ranks. Communication should follow this chain.

x. Order. Material and people should be in the right place at the right time.

xi. Equity: Managers should be kind and fair to their subordinates.

xii. Stability: High employee turnover is inefficient. Management should

provide personnel planning and ensure replacements.

xiii. Initiative: Employee allowed to originate and carry out plans will exert
high levels of effort.

xiv. Esprit-de-corps: Promoting team spirit will build harmony and unity
within the organization. Fayol also recommended that in order to perform
managerial functions effectively, a manager must possess physical qualities,
mental ability, moral education, general education, experience and special
knowledge etc. Fayol’s principles and functions of management were
appreciated widely, therefore, he is also called father of modern management.

C. HUMAN RELATION APPROACH

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Human Relations management theory is a premise of organizational psychology
from the early twentieth century, which suggests that employee productivity and
motivation can be increased through positive social bonds in the workplace and
acknowledgement of the worker as a unique individual. It holds that improved
working conditions (empowerment, participation, positive treatment) lead to
increased productivity.

Four "Actors" in Human Relations theory

1. The employee
2. Groups of employees
3. Supervisors and managers
4. The organization

1. Treat employees well as individuals

A large portion of employee motivation comes from each person as an
individual. Each individual’s motivation is influenced by their unique
personality, experiences, capabilities, circumstance, thoughts, behaviors, and
other factors.
2. Promote positive group values and relationships
Since individuals have social needs and interact together in the workplace,
group factors must also play a role in employee motivation.

3. Ensure effective management and supervision

An organization must also ensure that managers and supervisors fulfill their
roles and responsibilities as leaders and work in the best interests of their
company as well.
4. Establish effective organizational conditions
This includes the organization ensuring that:
1. Physical working conditions are safe and conducive to employee
performance;
2. Social and other related working conditions promote employee
productivity;
3. Employee compensation and benefits are appropriate and effective;
4. Managers and supervisors have and use appropriate leadership skills;
5. Input from managers, supervisors, and employees is incorporated into the
organization’s policies and procedures; and
6. All parties’ interests are aligned.

D. THE SYSTEMS APPROACH

Systems approach is based on the generalization that everything is inter-related
and interdependent. A system is composed of related and dependent element

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which when in interaction, forms a unitary whole. A system is simply an
assemblage or combination of things or parts forming a complex whole.

OBJECTIVES OF SYSTEM APPROACH

(i) A system consists of interacting elements. It is set of inter-related and inter-

dependent parts arranged in a manner that produces a unified whole.

(ii) The various sub-systems should be studied in their inter-relationships rather,

than in isolation from each other.

(iii) An organisational system has a boundary that determines which parts are
internal and which are external.

(iv) A system does not exist in a vacuum. It receives information, material and
energy from other systems as inputs. These inputs undergo a transformation
process within a system and leave the system as output to other systems.

E. THE CONTINGENCY APPROACH

Contingency theory also proposes structural changes or designs, leadership

styles, and control systems in an organization that allow it to react to
environmental contingencies.

The primary characteristics of contingency theory include:

 Non-universality of management theory - There is no one best way of

doing things.
 Contingency - Management decision making is contingent upon the
situation.
 Environment - Managerial policies and practices to be effective, must
adjust to changes in the environment.
 Diagnostics - Managers must possess and continue to improve diagnostic
skills so as to anticipate and ready for environmental changes.
 Human Relations - Managers should have sufficient human relations
skills to accommodate and stabilize change.
 Information and Communication - Managers must develop a
communication system adequate to deal with environmental changes.

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 NOTES ON OB
MODULE-II
ATTITUDE:
 An attitude is a positive; negative or mixed evaluation of an object that is
expressed at some level of intensity. It is an expression of a favorable or
unfavorable evaluation of a person, place, thing or event.
 Attitudes involve a complex organization of evaluative beliefs, feelings,
and tendencies toward certain actions. How much we like or dislike
something determines our behavior towards that thing.
 According to Stephen P. Robbins – “Attitude is manner, disposition,
feeling and position with regard to a person or thing, tendency or
orientation especially in the mind.”
 Frank Freeman said, “An attitude is a dispositional readiness to respond
to certain institutions, persons or objects in a consistent manner which
has been learned and has become one‟s typical mode of response.”
CHARACTERISTICS OF ATTITUDE :
 Attitudes are the complex combination of things we tend to call
personality, beliefs, values, behaviors, and motivations.
 It can fall anywhere along a continuum from very favorable to very
unfavorable.
 All people, irrespective of their status or intelligence, hold attitudes.
 An attitude exists in every person‟s mind. It helps to define our identity,
guide our actions, and influence how we judge people.
 Although the feeling and belief components of attitude are internal to a
person, we can view a person‟s attitude from his or her resulting
behavior.
 Attitude helps us define how we see situations, as well as define how we
behave toward the situation or object.
 It provides us with internal cognitions or beliefs and thoughts about
people and objects.
 It can also be explicit and implicit. Explicit attitude is those that we are
consciously aware of an implicit attitude is unconscious, but still, have
an effect on our behaviors.
 Attitudes cause us to behave in a particular way toward an object or
person.
 An attitude is a point of view, substantiated or otherwise, true or false
which one holds towards an idea, object or person.
 It has aspects such as direction, intensity, generality or specificity.

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  It refers to one‟s readiness for doing work.
 “Attitudes is a mental and neural state of readiness organized through
experience, exerting a directing or dynamic influences upon the
individuals response to all objects and situations with all circumstances.

FEATURES OF ATTITUDE:-
Attitude affects the behavior: An individual’s behavior is affected by putting
him ready responds favorably or unfavorably to things in the environment.
Attitudes are acquired through learning over the period of time: the process of
learning starts right from childhood and centenaries throughout the life of an
individual.

Attitudes are invisible: They constitute a psychological phenomenon which

cannot be observed directly. They can be observed only by observing the
behavior of an individual.
Attitudes are pervasive: Attitudes are pervasive and every individual has some
kind of attitude towards the object situation or person around them.
FORMATION OF ATTITUDES: Attitudes are not inherited. They are
acquired and learned by the people from the environment in which individual
interacts. The information of attitude is broadly classified into two sources:
 Direct experience
 Social learning
Direct Experience:-One‟s direct experience with an object or person serves as
a powerful source of his/her attitude formation ,i.e. attitudes are formed on
one‟s past experiences. E.g.:- Some of you mav like HR, some other may like
finance and few may like marketing. This is an attitude which is formed by
studying the subject and getting a fair knowledge from the same. Attitudes
derived from direct experience are powerful, stronger, durable and difficult to
change.
Social learning: The process of deriving attitude from family, peer , groups,
religious, organization and culture is called social learning. In social learning an
individual acquires attitudes from his environment in an indirect manner.
Attitudes are derived from peers also.
Social learning starts from early age when children derive attitudes from their
parents, friends, teachers, educational institutions etc. Individuals acquire much
of their attitudes by merely observing their models that they admire and respect.
The observe over hears. Their models expressing their opinion or watches them
displaying their behavior and that reflects their to align with their models.

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An individual’s association with others also shapes his Attitude. Culture of a
country / state also plays a vital role in shaping one‟s attitude.
Learning attitudes involves 4 processes:
Attention: Attention must be focused on model.
Retention: What was observed from the model must be retained.
Reproduction: Behavior must be practiced again and again
Motivation: The learner must be motivated to form the model.
TYPE OF ATTITUDES:-
Though an individual can have numerous attitudes, but OB focuses on job
related attitudes. Job related attitudes are of 3 types:

 Job satisfaction
 Job involvement
 Organizational commitment Job satisfaction:-
Job satisfaction refers to an individual pleasurable or positive emotional state
towards his/her job. Job satisfaction is related with five specific dimensions of
job pay, work itself, promotion, opportunities, supervision and co-workers,
positive attitude towards lead to job satisfaction.
Job Involvement:- It is the degree to which employee immense themselves into
their jobs invest time energy
Organizational commitment:- It is attitude of the employees towards their
organization. It is the measure of the employees willingness to remain with a
firm in the future,
MEASUREMENT OF ATTITUDE:
Measurement in its broadest sense is the assignment of numerals, to objects or
events. The methods are classified in to four types:-
 Self report
 Indirect tests
 Direct observation technique
 Psychological Reaction Techniques.
Self Report:
This technique usually elicits response from employee through questionnaires
dealing with their feelings about their work and related matters. This report is
carried out through the use of attitude surveys. Attitude surveys contain a set of
statement or question to be answered by the employee. A definite assigns to
each answer. Scaling terms assigned are tailored to obtain the information what
managers actually want. E.g.:-Attitude scaling might be dislike statement. My
job makes the best use of my abilities.

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Strongly Agree : 5
Agree : 4
Undecided : 3
Disagree : 2
Strongly disagree : 1
Indirect tests:- These tests may not be brought directly to the employees
notice. But the test will be fixed and employees‟ performance would be
evaluated with out his conscience. Indirect test may be also conducted where the
employee will answer to questions which may seem to be very
simple in answering but these answers when evaluated will help the employee
to know his attitude.
Direct observation technique:-It is very simple where the employee will be
directly observed on his work and his attitude will be known.
Psychological Reaction Techniques:- Employees psychological reaction
towards work and work environment will be judged and their attitudes will be
observed to understand his/her attitude towards job aspects.
How to change attitude:- Fill in the information gap: Unfavorable attitudes can
be changed by filling the information which may change his attitudes.
Use of fear: Low and high degree fear arousal may lead to problems only
median level fear would help the employee to change his attitude.
Resolving discrepancies: -People have different kind of attitude and behavior
and so by proper solving of discrepancies one‟s negative attitude could be
changed.
VALUES : Values are convictions and frameworks of philosophy of an
individual on the basic of which he judges what is good or bad. desirable or
undesirable, ethical or unethical. Rokeach a noted psychologist has defined
values as “Global beliefs that guide actions and judgments across a variety of
situations”
He further defines, Values represent basic convictions that a specific mode of
conduct (or end state of existence) is personality or socially preferable to an
opposite mode of conduct (end state of existence)
Features :
Part of culture: Values basically comes from our culture which constitutes of
ideas, beliefs of society.
Learned response: Values our called learned response which is one acquires
from the society.
Passed from one generation to another: Values are circulated and are passed
through generation to generation by specific groups and institutions it starts
from family educational institutions, religions and ethnic institutions
Social Phenomenon: An individual way of thinking which influence by his
society and family is
Difference between Attitudes and Values.
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Attitudes Values
Attitude exhibit predisposition to Values represent judgmental ideas
response. about what is right
They refer to several beliefs relating to They represent single belief foe used
a specific object or situation on objects or situations
These are one‟s personal experiences These are derived from social cultural
mores.

SIMILARITIES BETWEEN ATTITUDES AND VALUES

 Attitudes and values are learned or acquired from the same source
experience with people, object and event
 Attitudes and values affect cognitive process and behaviour of people.
 Attitudes and values are endurable and difficult to change.
 Attitudes and values influence each other and, more often than not, are
used interchangeably.
TYPES OF VALUES :
Rokeach , a pioneer is studying human values conducted a research survey on
human values. One the basis of his research findings he identified two basic
type of values.
 Terminal values
 Instrumental values
Terminal Values : Terminal values represent the desirable end-state of
existence, the goals that an individual would like to achieve during his life time.
Instruments values : Instrumental values : It reflects the way to achieve goals
another words, these represent preferable modes of behaviour or means of
achieving one terminal goals. Rokeach identified is terminal & 18 instrumental
names :

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All port and his associates had identified six types of values .All port and his
associates developed a different type of questionnaire containing a description
of different situations. The respondents were told to give their preference to the
questions for which ranks were fixed accordingly. Based on the answers given
and the rank accordingly allotted by the respondents.
VALUE WAS CATEGORIZED INTO SIX TYPES
Theoretical: Accords high importance on the discovery of truth through a
critical and rational approach.
Economics : Emphasizes on the usefulness and practicability money
Aesthetic : Places the top most importance on form and harmony
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Social : Accords the highest value to the love a affection of mankind
Political : Assigns more interest to the acquisition of power and influence.
Religions : Pay more values or importance to the religion they belong
Formation of values Research has proven that, 40% of one‟s values is
genetically determined
Rest of the values are acquired through experience with parents school-mates
friends, peers, models & organizations Culture also influences in the formation
of values.
VALUES & ETHICS:
Though sometimes people consider values and ethics synonymous and use them
interchangeably. But they are different. Values are beliefs that affect an
individuals fundamental ideas about what is good or bad. Ethic is the way the
values are acted out ethical was of behaviour is acting according is one personal
values.
Values and Behavior:
 Values serve as foundations for attitudes.
 In practice, individuals enter organization with a pre-conceived motion
of what ought and what ought not to be. These motions are value later.
 Independent hold their own interpellations of right and wrong – This
affects their behaviour.
 Values affect both attitude and behavior
 Values once formed are very difficult to change and are in challenge to
modern management.

PERSONALITY

The term personality has been derived from the Latin term person which means
to „speak through‟. It refers to the mask worn by actors in ancient Greece or
Rome in plays which signifies the role which the actor displays to the public.
Personality of an individual is unique personal and a major determinant of his
behaviour.

Meaning: Personality is the sum total of ways in which an individual reacts and
interacts with others. Definitions: Carl Rogers views personality in terms of
self, an organized, permanent, subjectively perceived entity.

Gordon Allport defines - “Personality is the dynamic organization within the

individual of those psychological systems that determine his unique adjustment
to his environment.”

It refers to what an individual really is, as an internal „something‟ that guides

and directs all human activities.

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“It is better to consider individual aspects of personality as bricks and total
personality as a house made of bricks” James

Factors Influencing Individual Behavior

 Implications of Individual Differences

 Every Individual has his/her own character
 Personality of each individual is unique hence it should be properly
diagnosed by a manager. Manager should understand the differences and
manage employees accordingly.
 He should act differently to different people.
 He should assign job, motivate and lead every employee accordingly..

Foundations of Individual Behavior Physiological Variables

 Age
 Gender
 Physiological Characters
 Heredity
 Psychological Variables
 Intelligence
 Learning
 Personality
 Attitude
 Motivation
 Social Cultural Variables
 Value systems
 Cultural Background
 Traditions

Organizational Variables

 Type of Organization
 Type of supervision
 Type of subordinates
 Type of Co-employees
 Type of incentives
 Training
 Social environment at work place
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  Physical and Job variables
 Method of work
 Type of work
 Physical job variables
 Condition of working equipment’s

DETERMINANTS OF PERSONALITY

Enormously the following five factors of personality are contributing to the

formation and development of human personality.

 Biological Factors
 Social Factors
 Cultural Factors
 Physical Environment
 Situational Factors

Biological Factors of Personality: Biological factors of personality are very

important for the formation of human personality. Children are born in a family;
inherit many traits and features from their parents. Children get physical and
psychological characteristics from their parents which becomes a part of their
personalities. Some of the inherited traits are courage, coward, intelligence,
weakness etc.

Social Factors of Personality: When an individual interact with other persons

in his/her group give and take relationship takes place and it affects the
personality of an individual social factors of personality are responsible for the
formation of personality, when an individual has group experience and contact
with others personality of an individual is influenced by others may be bad or
good but depends on the association in which he/she keeps. In a society every
person plays a specific role and status

Cultural Factors of Personality: Both material as well as non-material culture

affects personality of an individual. An individual living in his/her culture
adopts the traits consciously or unconsciously and acts accordingly. Culture of
any society determines the behaviors and personality of an individual and
he/she is expected to act according to the culture. A person follows all the social
norms of a culture which results in the formation of good personality while non-
conformity to the cultural rules develops abnormal or bad personality. So, the

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culture in which an individual seeks satisfaction adjusts himself/herself and
develops personality.

Physical Environment: Physical environment also determines the personality

of an individual. Environmental factors include land, river, mountains, hills,
forests, plain area, atmosphere etc which affect the personality to be good or
bad, healthy or weak. All the feelings, emotions, ideas, attitudes, habits and
behavior as well as body structure are the result of physical environment of to
which an individual belongs. For example, body structure, physique, color and
health of the rural people are different from urban people. These people have
different environment due to which they develop variety of personalities. The
people living in cities have facilities and modern ways of life which creates to
develop delicate bodies and minds as compare to the rural people who are
deprived of these facilities.

Situational Factors of Personality: Situational factors of personality also have

a complete share in the formation of personality of an individual. situational
factors of personality are charging according to the social situations. Every
person face may situations in his life which enables him/her to change his/her
behavior. For example, a teacher may be rigid and strict with students but may
not with his/her family. An officer may behave with the subordinates differently
as compare to his/her friends. Personality is not the result of only one factor but
every factor is responsible to give complete share in its formation. A person
behave and his/her personality exists when interacts with environment, culture,
society, parents, friends and to those who come in contact by chance.

THEORIES OF PERSONALITY

PSYCHOANALYTICAL THEORY Sigmund Freud and other associates

formed this theory. Clinical techniques were used to develop this theory.
Patient‟s behaviour was studied to derive this theory. According to this theory
Man is motivated by unforeseen forces than he is controlled by conscious and
rational thought. Freud says that personality of a person is determined by a
constant interplay of the three parts: The Id, The Ego, The Super Ego.

Personality is made up of 3 parts:

The Id: It is the unconscious emotional part . It is a sea of biological urges and
drives where different instincts exist. E.g. Hunger, thrust, sex (libido).

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It works on the principles of pleasure and pain. Any person seeks to satisfy his
raw, animalistic needs and urges, obeys no laws and rules, wants to seek
immediate gratification of biological or instinctual needs. It would proceed
unchecked to satisfy motives. As an individual matures he learns to control id.

Ego: - It is the logical and conscious part or the rational practical and factual
side. It evaluates on the principle of what is possible and not possible. It works
on the principle of right and wrong. It keeps id in check through realities of the
environment by intellect and reason.

Super Ego: It is the ethical moral side. The individual not only cares about
right and wrong but also care about the societal norms. Hence it controls the
above two parts and directs them constantly.

SOCIO-PSYCHOLOGICAL THEORY:

Human personality depends on his inter-relationship in society. This model

suggests that human behavior results from three predominant- interpersonal
orientations.

Based on which Individual can be categorized as:

Aggressive people: Motivated by the need for power. They want good positions
more power. They go for challenging jobs and want to raise high in positions.
They are not attached with the society and hence go against the society

Detached people: These are self-sufficient people who are not more attached
with the society. They are happy in their solitude. They do not depend on
others. They are away from the society.

Complaint people: These people are more depended on society. They live to be
with friends and families. They seldom quit organization. They do not have any
lust for position, power and money. They move towards the society.

TRAIT THEORY : Some psychologists have tried to understand personality

on the basis of individual’s traits. This theory attempts to understand how a set
of set of personality variables exerts on one‟s behavior. This theory defines that
individual personality is composed of definite predisposition attributes called
traits. Traits in an individual define his personality. Traits are stable, traits are
common but may vary is absolute quantities in individuals and also traits can be
inferred form the measurement of behavioral indicators. The author Catell has

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developed a set of traits through construction of tests on various individuals.
These traits can be classifies as surface traits and source traits. The source traits
defines the basic trait in individual and the surface traits define the qualities in
an individual based on his source trait.

SOURCE TRAITS

(Deep inner traits in an individual) Affectionthymia Vs Sizothymia

(Meaning: Good nature and trust fullness VS critical and Conspicuous)

Ego Strength Vs Emotionality

(Meaning: Maturity and realism Vs Immaturity and Evasiveness)

Dominance Vs Submissiveness

Cheerfulness and Depression

Surface traits (visible traits in an individual)

Wise foolish Affectionate – Cold Sociable-Exclusive Honest- Dishonest

SELF THEORY : Carl Rogers has developed this theory. This theory is also
described as phenomenological which studies individual’s subjective
experience, feelings and his concepts of world and self. In this theory the
following four factors are included:-

Self-image: what you think you are?

Ideal self: What you want to be?

Looking glass self: What you think other think of you?

Real Self: What you really are?

Self-image: It is the way one sees oneself. Every person has certain beliefs
about who he is and these belief form his self image.

Ideal self: It denotes the way one would like to be. Any individual admires
personalities (family members or outsiders) in his environment and tries to
imitate them. This forms the basis for his ideal image.

Looking glass self: It is a perception about how others perceive one self. It if
formed on the basis I of the interactions and conversations of others.

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Real Self: There are three stages in which an individual perceives about
himself. The self-image, ideal self and looking glasses self. All the three help
the individual to know about himself based on which he get tips to develop his
personality, evaluates himself and adjusts his self-image with other three. It is a
comprehensive inner behavioral process.

TYPES OF PERSONALITY

Introvert and Extrovert Based On Characteristics, There Are Two types of

personality, i.e. introvert and extrovert. When a person is reserved and does not
open up easily, he or she is said to be an introvert. An introvert is a person who
remains isolated, or enjoys the company of few closed ones.

 Self-contained
 They think before speaking.
 Recharges with solitude
 Spends more time with themselves
 Inward focused
 Have few friends
 Do not accept change easily.
 Openly communicate about themselves with people they know and trust.
 Deeply concentrate for long period.

An extrovert is an outgoing and outspoken person who enjoys being around

and talking to people. Extrovert is a social, talkative person and makes friends
quickly. An extrovert is an outgoing and outspoken person who enjoys being
around and talking to people.

 Gregarious
 They reason things out by speaking them
 Recharges with social interactions
 Spends more time with family and friends
 They reason things out by speaking them.
 Recharges with social interactions
 Spends more time with family and friends
 Outward focused
 Have many friends
 Accept change easily
 Openly communicate about themselves with anyone.
 Get distracted easily
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Type A and Type B personality

Type A Personality Type A personality implies a temperament which is stress

prone, concerned with time management. They are ambitious, rigidly organised,
hard-working, anxious, highly status conscious, hostile and aggressive.
Individuals who possess Type A personality have the following behavioral
patterns:

 They move, walk and eat fast.

 Great at multitasking
 Self-driven feels guilty when relaxing.
 Feels impatient with the pace of things, dislikes waiting.
 They have a busy schedule and does not have time to enjoy life.
 Uses nervous gestures, like clenched fist or banging hand on the table.
 They are high-achievers, perform beyond par.
 They do not easily accept failure.

Type B Personality

Type B personality is one that is less prone to stress, easy going, work steadily,
enjoy achievement, modest ambition, and live in the moment. They are social,
creative, thoughtful, procrastinating. Individuals who possess Type B
personality are associated with the following behavioural traits:

 They are not concerned about time.

 They compete for fun, not to win.
 Mild-mannered.
 Never in a hurry and has no pressing deadlines.
 Does not brag.
 Focus on quality rather than quantity.
 Laid back and live stress-less life.

Judging and Perceptive

Judging (J) and Perceiving (P) are how you interact with the world outside
yourself, either in a structured or flexible manner. Judging and Perceiving are
opposite preferences. A person‟s natural tendency toward one will be stronger
than the other.
Judging: Judging people think sequentially. They value order and organization.
Their lives are scheduled and structured. Judging people seek closure and enjoy
completing tasks. They take deadlines seriously. They work then they play. The

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Judging preference does not mean judgmental. Judging refers to how a person
deals with day-to-day activities.
 Judging Characteristics
 Decisive
 Controlled
 Good at finishing
 Organized
 Structured
 Scheduled
 Quick at tasks
 Responsible
 Likes closure
 Makes plans

Perceiving (P) : Perceivers are adaptable and flexible. They are random
thinkers who prefer to keep their options open. Perceivers thrive with the
unexpected and are open to change. They are spontaneous and often juggle
several projects at once. They enjoy starting a task better than finishing it.
Deadlines are often merely suggestions. Perceivers play as they work.
Perceiving Characteristics
 Adaptable
 Relaxed
 Disorganized
 Care-free
 Spontaneous
 Changes tracks midway
 Keeps options open
 Procrastinates
 Dislikes routine
 Flexible
PERSONALITY INFLUENCE ON ORGANISATIONAL BEHAVIOUR
Self Esteem: Self Esteem refers to the feeling of like or dislike for oneself.”
“Self Esteem is the degree of respect a person has for himself.” This trait varies
from person to person as people differ in the degree to which they like or dislike
each other.
Self Monitoring: “Self monitoring is a personality trait that measures an
individual‟s ability to adjust his or her behaviour to external situational factors”.

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Locus of control : Locus of control refers to an individual’s belief that events
are either within one‟s control are determined by forces beyond one‟s control.
People with internal locus of control believe that they are the masters of their
own fate. Where as people with external locus of control take life as it comes.
They see themselves as pawns of fate, believing that whatever happens to them
in their lives is due to their luck or fate.
Machiavellianism: Machiavellianism is the ability to influence others for ones
benefit. High Machiavellianism refers to a personality trait which sees a person
so focused on their own interests they will manipulate, deceive, and exploit
others to achieve their goals.
Risk taking : The propensity of people to assume risks or avoid risks varies
from person to person depending upon the willingness of the people to take
chances. This human trait will affect the decision making capability of a
manager. This individual personality trait will determine how long will it take a
person to take a decision or how much information will be needed before he
takes a decision.
Introvert and extrovert : These two terms are generally associated with the
interpersonal behaviour of an individual and his sociability. Extroverts are
gregarious and sociable individuals while introverts are shy, quiet and retiring.
It has been observed that introverts and extroverts people have different career
orientations and require different organisational environment to maximize
performance. Extroverts are more suitable for positions that require
considerable interaction with others that is why managerial positions are
dominated by extroverts.
Type A and Type B : People who are impatient, aggressive and highly
competitive are termed as „Type A‟ personality. But those who are easy going,
laid back and non-competitive are termed as „Type B‟ personality. Type „A‟
people tend to be very productive as they work very hard. Their negative side is
that they are very impatient, good team players, more irritable and have
poor judgment. Type „B‟ people do better on complex tasks involving judgment
and accuracy rather than speed and hard work
Self monitoring : As self monitoring refers to the individual’s ability to adjust
his or her behaviour to external factors, individuals with high self monitoring
can show considerable adaptability in adjusting their behaviour to external,
situational factors than low self monitoring.

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PERCETION
Perception means perceiving, i.e., giving meaning to the environment around
us. It can be defined as a process which involves seeing, receiving, selecting,
organising, interpreting and giving meaning to the environment Perception is
the process by which an individual selects, organizes, and interprets information
to create a meaningful picture.
IMPORTANCE OF PERCEPTION : Perception is very important in
understanding human behavior because every person perceives the world and
approaches life problems differently. Whatever we see or feel is not necessarily
the same as it really is. When we buy something, it is not because it is the best,
but because we take it to be the best.
If people behave on the basis of their perception, we can predict their behavior
in the changed circumstances by understanding their present perception of the
environment. One person may be viewing the facts in one way which may be
different from the facts as seen by another viewer.
With the help of perception, the needs of various people can be determined,
because people’s perception is influenced by their needs.
Perception is very important for the manager who wants to avoid making errors
when dealing with people and events in the work setting. This problem is made
more complicated by the fact that different people perceive the same situation
differently. In order to deal with the subordinates effectively, the managers must
understand their perceptions properly.
Perception can be important because it offers more than objective output; it
ingests an observation and manufactures an altered reality enriched with
previous experiences.
Perception builds character (not necessarily good or bad character) that defines
different roles individuals fall into the clown, the hypocrite, the self-righteous,
the victim, etc..
It is vitally important if we want to get along with Others to try to see things
from their perspective or walk in their shoes for a while. If we walk in their
shoes we will gain a new perspective about things and in that understand the
other and also can love and help the other more appropriately.
NATURE OF PERCEPTION
 Perception is the intellectual process.
 Perception is the basic cognitive or psychological process.
 Perception becomes a subjective process and different people may
perceive the same event differently.

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Perception and Sensation: There is a distinction between sensation and
perception. Sensation is the response of a physical sensory organ. The physical
senses are vision, hearing, tough, smell and taste.
These senses are bombarded by stimuli and reactions in particular sense organ
take place because of these, e.g., of sensation may be reaction of eye to colour,
ear to sound and so on. Sensation percedes perception.
Perception is much more than sensation. Perception depends upon the sensory
raw data. The perceptual process adds to or/and subtracts from the sensory
world. Perception is determined by both physiological and psychological
characteristics, of the organism.
Sensation only activates the organs of the body and is not affected by such
psychological factors as learning and motives. Activation of eyes to see an
object is sensation and the inference what is being seen is perception.

PERCEPTUAL PROCESS

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Perception is a process of receiving, selecting, organising, interpreting,
checking and reacting to stimuli. This is like an input-through put-output
process in which the stimuli can be considered as 'inputs' transformation of
'input' through selection, organization and interpretation as 'through
puts' and the ultimate behavior/action as 'output'. The whole perceptional
process can be presented as follows: These are explained one by one
Receiving Stimuli: The first process in the perception is the presence of
stimuli. The stimuli are received from the various sources. Through the five
organs. It is a physiological aspect of perception process. Stimuli may be
external to us (such as sound waves) and inside us (such as energy generation
by muscles).
Selection of Stimuli: After receiving the stimuli or data, some are selected.
Others are screened out. Two types of factors affect selection of stimuli for
processing: external and internal factors. External factors relate to stimuli such
as intensity of stimuli, its size, movement, repetition, etc. Internal factors, relate
to the perceiver such as his/her age, learning, interest, etc. Normally, he
will select the objects which interest him and will avoid that for which he is
indifferent. This is also called 'selective perception'.
Organization of Stimuli : Organizing the bits of information into a meaningful
whole is called "organization". There are three ways by which the selected data,
i.e., inputs are organized. These are :
(i) Grouping, (ii) Closure and (iii) Simplification.

Grouping: In grouping, the perceiver groups the various stimuli on the basis of
their similarity or proximity. For example, all the workers coming from the
same place may be perceived as similar on the basis of proximity.
Closure: When faced with incomplete information, people fill up the gaps
themselves to make the information meaningful. This may be done on the basis
of past experience, past data, or hunches. For example, in many advertisements,
alphabets are written by putting electric bulbs indicating the shape of the
concerned alphabets but broken lines. In such cases, people tend to fill
up the gap among different bulbs to get meaning out of these.
Simplification: People identify main stimulus features and assesses how they
are organized. He interprets a stimulus situation, the perceiver simples the
information.
Interpretation: After we have attended to a stimulus, and our brains have
received and organized the information, we interpret it in a way that makes

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sense using our existing information about the world Interpretation simply
means that we take the information that we have sensed and organized and turn
it into something that we can categorize. By putting different stimuli into
categories, we can better understand and react to the world around us.
Action: The perceptual process ends with the resultant behaviour caused after
interpreting the data received through sensory organs.
PERCEPTION DISTORTION
Perceptual distortions are incorrect understanding or abnormal interpretation of
a perceptual experience. A perceptual distortion occurs when a persons
responses to stimuli varies from how it is commonly perceived. Perceptual
distortion can relate to either sensory or psychological disorders, medication or
drugs, or physical damage to the brain or sensory organ.
Perceptual Distortion:
Personality: Personality of the perceiver greatly influences the perception of
other persons. Personality influence perception because of 2 reason .First, the
perceiver tries to project his personality attributes in others, known as
projection. Second, the perceiver tries to fit his attitude,
beliefs, expectation to reality known as process of self-fulfilling.
Mental Set: Mental set is the tendency on has to react in a certain way to a
given situation. In organization setting, people have tendency to perceive about
others on the basis of this mental set which cause misperception. For ex.
Suppose you are a contestant in a track meet and are positioning yourself in
your starting blocks as you hear the preparatory command, get ready, get
set when you hear the command, Go you take off at once since you are already
set and ready to this command.
Attribution: Attribution is the process by which we make sense of our
environment through our perception of our causality. Attribution is simply the
process of attaching or attributing causes or reason to the actions and events we
see. Causality is usually described in terms of internal causality and external
causality. For ex. We may explain a particular individuals success or
promotion with reference to his/her superior skills and knowledge (internal
causality) or with reference to luck, 'friends in high places‟ and coincidence
(external causality).
HALO Effect: The term halo effect was used by the psychologist Edward
Thorndike in 1920. A HALO Effect is a judgment based on single striking

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characteristics such as an aspect of dress, speech, posture, or nationality. HALO
Effect can be negative as well as positive.
• For ex. It is a natural human response on a meeting a stranger, to make
judgment about the kind of person they are and whether we will like them or
not.
Stereotyping: Stereotyping occurs when the perceiver judges or perceives a
person on the basis of characteristics of the group to which he belongs. The
person is not perceived as an individual with specific set of his characteristics
but on the basis of his group characteristics.
• For ex. There are some stereotyping at the international level like; Japanese
are industrious,
Italian are quick tempered American are materialistic and ambitious.
First Impression: It is very common that people evaluate others on the basis of
first impression.
• The evaluation based on first impression may be correct if it is based on
adequate and significant evidence. However, since first impression evaluation is
not based on adequate information, it may not be true reflection of peoples
being perceived.
• This can be corrected by more frequent interaction, though erasing of first
impression evaluation is not that easy.
FACTORS INFLUENCING PERCEPTUAL PROCESS
External Factors
 Size : Bigger size attracts the attention of the perceiver
 Intensity : A loud sound, strong odor or bright light is noticed more as
compared to a soft sound, weak odour or dimlight.
 Repetition : A repeated external stimulus is more attention getting than a
single one .Advertisers use this principle.
 Novelty and Familiarity : A novel or a familiar external situation can
serve as attention getter.
 Contrast : It is a kind of uniqueness which can be used for attention
getting. Letters of bold types, persons dressed differently than others,
etc., get more attention.
 Motion : A moving object draws more attention as compared to a
stationary object Advertisers use this principle.
Internal Factors

Self-concept : The way a person views the world depends a great deal on the
concept or image he has about himself. The concept plays an internal role in
perceptual selectivity.
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  Beliefs: A person's beliefs have profound influence on his perception.
Thus, a fact is conceived not on what it is but what a person believes it to
be.
 Expectations : These affect what a person perceives. A technical manager
may expect ignorance about the technical features of a product from non-
technical people.
 Inner Needs : The need is a feeling of tension or discomfort, when one
thinks he is missing something. People with different needs experience
different stimuli. According to Freud, wishful thinking is the means by
which the Id attempts to achieve tension reduction.
 Response Disposition : It refers to a person's tendency to perceive
familiar stimuli rather than unfamiliar ones.
 Response Salience : It is the set of disposition which are determined not
by the familiarity of the stimulus situations, but by the person's own
cognitive predispositions. Thus, a particular problem may be viewed as a
marketing problem by marketing personnel, a control problem by
accounting people and human relations problem by personnel people.
 Perceptual Defence : It refers to the screening of those elements which
create conflict and threatening situation in people. Denying the existence
or importance of conflicting information.
MOTIVATION
Motivation is the willingness to exert high level of the effort towards
organizational goals , conditioned by the efforts ability to satisfy same
individual needs.
Need satisfaction process
Unsatisfied Need----tension---drive ---search behaviour--- satisfied need---
reduction in tension
 An unsatisfied need created tension that stimulates drives with in an
individual.
 These drives generate an search behaviour to find particular goals and
attain them.
 If the goal is attained, the need is satisfied and the tension is reduced.
 Since the organizational goals are important , the individuals must be
compatible to the org. goals.
 Motivation is anything that induces a person to act in a desired manner.
 Motivation is what makes a person to work and satisfaction is the
resultant happiness. It follows a cause and effect relationship.

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THEORIES OF MOTIVATION
1. MASLOW‟S NEED HIERARCHY THEORY OF MOTIVATION
2. HERZBERG‟S TWO FACTOR THEORY OF MOTIVATION
3. MCGREGORS‟S THEORY „X‟ AND THEORY „Y‟
4. MCLLELAND „S NEED THEORY
5. VROOMS VALENCE EXPECTANCY THEORY
6. PORTER AND LAWLER‟S MODEL OF SATISFACTION
MASLOW’S NEED HIERARCHY THEORY OF MOTIVATION:
According to this theory man is motivated based his needs. Any individual has
five categories of needs.
The need emerges in a hierarchal order i.e. from lower order needs to higher
order needs.
The five levels of needs are
Lower order needs
1. Physiological needs
2. Security needs
3. Social needs

Higher Order Needs

4. Self esteemneeds
5. Self actualization needs
Physiological needs:
This needs is considered to be the starting point of motivation . These are
needed for the survival and
maintenance of human life. Eg: Food, Clothing, Shelter, Air Water and also
other necessities of life.
Security needs:
After an individual‟s physiological need is satisfied, his next level of need for
security emerges, i.e. he wants the assurance of maintaining an economic level,
in terms of job security of income source, provision for old age, insurance
against risk etc.
Social needs:
Man is social being. He is interested in conversation, sociability, exchange of
feelings, grievances and ideas . He wants companionship, recognition and
belongingness. Simply he needs the comfort of people/ society to fulfill this
need.

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Self esteem need (status):
Egoistic needs take inward or outward orientations. Inward directed ego needs
embrace factors like self confidence, independence, achievement, competency,
knowledge, success. These needs have to be earned by an individual; through
his intelligence and hard work. They want recognition in the society where they
live. On the other hand outwardly directed ego needs are concerned with
prestige, status respect and it could be gained in the form of position and control
over economic, social and political power form the society or organization.
Self Actualization needs (self fulfillment needs):
The final or the priority model is the need for self -fulfillment or the need is the
need to fulfill what a person considers to be his mission in life. After a man‟s
other needs are fulfilled, his desire for personal achievement increases. He
wants to do something, which is challenging and gives his full energy to
work and win. This need gives him psychological satisfaction if achieved.
Maslow felt that these needs have definite sequence of domination.
 second level needs does not dominate until first level need is satisfied
and this would continue till the last hierarchy.
 Hence based on this 5 levels of need Maslow establishes that man is a
social animal, he always wants something the other.
(condition is know what his need is at that particular point of time) He can
be motivated accordingly.
HERZBERG’S TWO FACTOR THEORY OF MOTIVATION
Herzberg and his fellow men conducted a research on zoo engineers and
accountants who worked in 11 different firms in Pittsburg area. These men were
asked to recall specific incidents in their experience which made them feel good
or bad about their jobs. These findings set as a model to derive this theory.
According to this theory Herzberg has defined two distinct factors of
motivation
Herzberg‟s motivation theory is based on two types of factors.
These factors
Satisfiers (motivation factors)
Dissatisfiers (maintenance or hygiene factors).
Hygiene factors include the factors of company policy and administration,
salary, supervision, working conditions, interpersonal relations, status, job
security, and personal life.

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The motivators or satisfiers are therefore related to job content. They include the
factors like achievement, recognition, challenging work, advancement,
responsibility and growth in the job. Their existence yields feelings of
satisfaction.

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Hygiene factors
It was found that hygiene factors were those factors, which if provided will not
motivate the employees, but if not provided will definitely de-motivate the
employees.
Motivators :
They are factors which when not provided the employee will not be ware if it ,
but if provided the employee gets highly motivated and works effectively.
Herzberg‟s theory
a. It is pure a psychological theory.
 It can be applicable to modern organization.
 It is practical and easy to understand.
 Identification of hygiene factor is a valuable
Disadvantages of Herzberg‟s theory:
 The theory emphasizes on job satisfaction rather than motivation credit,
but when things go wrong they blame external factors.
 They theory has over simplified the complex working condition
DIFFERENCE BETWEEN MASLOW’S THEORY AND HERZBERG’S
THEORY
Maslow‟s theory Herzberg‟s theory

1. He has divided the structure 1. He has divided the theory into

into five layers. two 2 factors
2. Emphasis is on needs 2. Emphasis is on satisfaction
3. Hierarchy is followed 3. All need arise at the same time
4. Pay is a motivation 4. Pay comes under the hygiene factor
5. It is a descriptive theory 5. It is a prescriptive theory
6. Relevant to people of all cadre 6. Relevant to study managerial cadre
7. A satisfied needs is not a motivator 7. Satisfied need also continue to
motivate people.

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MCCLELLAND’ S NEEDS THEORY
McClelland‟s Needs Theory was proposed by a psychologist David
McClelland, who believed that the specific needs of the individual are acquired
over a period of time and gets molded with one‟s experience of the life.
McClelland‟s Needs Theory is sometimes referred to as Three Need theory or
Learned Needs Theory.
McClelland has identified three basic motivating needs, Viz. Need for Power,
Need for Affiliation and Need for Achievement and, along with his associates
performed a considerable research work on these basic needs.
1. Need for Power
2. Need for Affiliation
3. Need for Affiliation
Need for Power (n-pow):
Power is the ability to induce or influence the behavior of others. The people
with high power needs seek high- level positions in the organization, so as to
exercise influence and control over others.
Need for Affiliation
People with high need for affilia ion der ives pleasure from being loved by all
and tend to avoid the pain of being rejected. Since, the human beings are social
animals, they like to interact and be with others where they feel, people accept
them.
Thus, people with these needs like to maintain the pleasant social relationships,
enjoy the sense of intimacy and like to help and console others at the time of
trouble.
Need for Achievement (n- ach):
McClelland found that some people have an intense desire to achieve. He has
identified the following characteristics of high achievers:
 High achievers take the moderate risks , i.e. a calculated risk while per
forming the activities in the management context . This is opposite to the
belief that high achievers take high risk.
 High achievers seek to obtain the immediate feedback for the work
done by them, so as to know their progress towards the goal.
 Once the goal is set, the high achiever puts himself completely into
the job, until it gets completed successfully. He will not be satisfied
until he has given his 100% in the task assigned to him.

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A person with a high need for achievement accomplishes the task that is
intrinsically satisfying and is not necessarily accompanied by the material
rewards. Though he wants to earn money, but satisfaction in the
accomplishment of work itself gives him more pleasure than merely the cash
reward.
Hence, McClelland’s Needs Theory posits that the person‟s level of
effectiveness and motivation is greatly influenced by these three basic needs.
MCGREGORS’S THEORY ‘X’ AND THEORY ‘Y’
The theory is based on assumptions about employees by the manager or
employer
One basically negative- Theory‟X‟

McGregor has generated two different theories based in Employer‟s /Boss‟s

assumption on employees. But it is also to be noted that employees tend to
become what the boss thing about them. McGregor prefers theory „X‟ to theory
„Y‟. It is also concluded that participative decision making, challenging jobs
and decentralized form of environment and supportive style of leadership would
motivate employees.
According to this theory a Boss holds either positive or negative assumptions
about their employees.

PROCESS THEORIES

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VROOMS VALENCE EXPECTANCY THEORY
This theory was propounded by Vrooms, and this theory states about the
importance of factors which lead to motivation.
The theory of based on the formula: Motivation(F) = Σ Valence x Expectancy
Key words Valence Expectancy, 1st level outcome , 2nd level outcome,
Instrumentality.

Valence:
It is the strength of individuals preference for a particular outcome. It ranges
from -1……0… ..... +1. where when
V is positive( +1) = Individual prefers to attain the outcome.
V is neutral ( 0)= Individual is indifferent towards the outcome.
V is negative ( -1) = Individual does not prefer to attain the outcome.
Expectancy:
It is the probability that a particular outcome will lead to the desired first level
outcome.
The probability will range from (0----------1). If the probability is high , the
score is high and it is low when the probability is low. Expectancy relates to the
effort to the first level outcome.
1st level outcome :
It is the efforts put based on the expectations of getting the same, which means
performance will be based on the persons expectancy towards perceived reward.
i.e. promotion.
2nd level outcome:
It is the result acquired out of the expectations and effort. e.g. getting
promotion.

Instrumentality:

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It is the belief that the performance is related to rewards. Probability attached by
the individual to each possible performance. It refers to the degree to which the
first level outcome leads to second
1. Motivated to get a promotion
2. Promotion expectancy = high/moderate/ low
3. Effort - high/moderate/ low or No effort
4. Outcome 1- Guaranteed promotion
5. Outcome 2- May / May not get a promotion
6. Outcome 3- No chances of getting a promotion
Hence the theory states that it is the motivational force in an individual which
makes him
Believe that he can attain a particular outcome, based on this expectancy he
performs and he gets the rewards.
PORTER AND LAWLER’S MODEL OF SATISFACTION
Lyman Porter and Edward Lawler came up with a comprehensive theory of
motivation, combining the various aspects. Porter and Lawler's model is a more
complete model of motivation. This model has been practically applied also in
their study of managers. This is a multivariate model which explains the
relationship that exists between job attitudes and job performance. This model is
based on four basic assumptions about human behaviour :
(i) As mentioned above, it is a multivariate model. According to this model,
individual behaviour is determined by a combination of factors in the individual
and in the environment.
(ii) Individuals are assumed to be rational human beings who make conscious
decisions about their behaviour in the organizations.
(iii) Individuals have different needs, desires and goals.
(iv) On the basis of their expectations, individuals decide between alternative
behaviours and such decided behaviour will read to a desired outcome.
The Various Elements of Porter and Lawler Model
1. Effort,
2. Performance and
3. Satisfaction.
Let us briefly discuss the main elements of the model :
1. Effort: Effort refers to the amount of energy an employee exerts on a given
task. How much effort an employee will put in a task is determined by two
factors: (i) value of reward and (ii) perception of effort reward probability.
2. Performance : One's effort leads to his/her performance. Both may be equal
or may not be. However, the amount of performance is determined by the
amount of labour and the ability and role perception of the employee. Thus, if
an employee possesses less ability and/or makes wrong role perception, his/her
performance may be low in spite of his great efforts.
3. Satisfaction: Performance leads to satisfaction. The level of satisfaction
depends upon the amount of rewards achieved. If the amount of actual rewards

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meet or exceed perceived equitable rewards, the employee will feel satisfied. On
the contrary, if actual rewards fall short of perceived ones, he/she will be
dissatisfied.
Rewards may be of two kinds - intrinsic and extrinsic rewards.
Examples of intrinsic rewards are such as a sense of accomplishment and self-
actualization. Extrinsic rewards may include working conditions and status. A
fair degree of research supports that the intrinsic rewards are much more likely
to produce attitudes about satisfaction that are related to performance

It is a complete model of motivation. The research covered the applicability to

managers. They brought about the relationship between job attitude, job
performance and job satisfaction. The whole model is designed on the
traditional assumption that there is a positive relationship between satisfaction
and performance. It is a multivariate model to which helps to explain the
relationship between satisfaction and performance. Porter and Lawler have
attempted to measure variables such as the values of possible rewards, the
perception of effort-rewards probabilities and role perceptions in deriving
satisfaction.
They recommended that the managers should carefully reassess their reward
system and structure. In this model of motivation or effort does not directly lead
to performance but factors like one‟s personal traits , role perceptions , the
value he has given for a particular rewards and his perception towards his
abilities to achieve the reward work together to achieve the reward. Ones he has
achieved what he has expected to achieve, he is satisfied or else the process
continues.

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 NOTES ON OB
MODULE-III
GROUPS IN ORGANISATION
In any organization, the work of an individual is influenced by that of another.
The employees, therefore, have to work together in a co-ordinate manner to
complete any task. In other words, it is teamwork that makes goal attainment
possible.
There is a no. of groups that one can find in a work place. These groups
contribute either directly or indirectly to the success of the organization. The
behavior of an individual is significantly influenced by the group to which he
belongs. It is, therefore, more appropriate to discuss group behavior in the
context of organizational behavior.
MEANING OF GROUP:
A group is a cluster of persons who have come together to pursue activities of
common interest. A group may consist of any no. of persons. But the group
members must have continued interaction with and must be psychologically
aware of one another.
DEFINITION:
A group is an aggregation of people who interact with each other, are aware of
one another, have a common objective, and perceive themselves to be a group.
CHARACTERISTICS OF A GROUP:
1. A group is always a conglomeration of persons
2. The members know and interact with one another
3. The members come together to pursue certain activities of common interest.
4. Each member perceives that he is a part of the group
NEED FOR GROUP FORMATION

1. Nearness and interaction:

In the workplace, the employees work close to each other. During their course
of work, they may have to interact with one another. Such an environment may
induce them to form groups.

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 2. Capacity to influence:
The capacity of each individual in the organization to influence another by
reason of work- or work related issues is another factor that results in the
formation of groups.
3. Need for security:
One of the main reasons for the formation of groups in the organization is the
need for security. If the employer creates an environment in which the
employees feel insecure, they have to come together as a group, namely, the
union to safeguard their interests.
4. Common interest:
People with common interest, likes and dislikes often come together. This
happens in an organization too. The subject matter of interest may be something
connected with their work or it can be anything like politics, sports, hobbies,
etc.
5. Recognition:
The recognition that is not normally available to a person, when he is alone
becomes a member of certain group. A person who feels it all his endeavors
must be recognized and appreciated will identify himself with some group in the
organization.
6. Power:
Employees derive much greater power collectively, i.e., as members of union,
than as individuals. In an organization where trade unions are absent or not
powerful, belonging to a small informal group gives an individual a feeling that
the group will not let him down when he faces a crisis. Further, a person who
has no formal authority in the organization may be in the position to influence
the members of an informal group by becoming its leader.
7. To get rid of delay:
Formal organization promotes delay in view of hierarchy and longer channels of
communication. To get rid of the delay in the completion of certain specific
tasks, executives, sometimes, may have to meet and interact with employees
casually and informally.
An informal group of subordinates and superiors, thus, exists within a formal
organization.

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TYPES OF GROUPS:
1. Formal Groups:
a formal group. Such has a hierarchical structure. The members of the formal
group are allotted definite task. They have adhered to certain rules and
regulations. A formal group is also known as a command group.
Every superior has subordinates whom he delegates authority to enable them to
carry out the task assigned. For the performance of the task by the subordinates,
the superior is answerable to his own superior.
Formal groups can be permanent as well as temporary. Command groups and
permanent committees are examples of permanent formal groups. A task force
created for specific purpose is an example of a temporary formal group.
2. Informal Groups:
An informal group is the one which is unofficially created. It rises owing to
personal relationships between the individuals of the organization. Factors such
as friendship, language, religion, etc., influence the formation of informal
groups.
An informal group may sometimes perform a task that the formal group has
failed to perform. In formal groups maintain and strength the values and beliefs
of their members. They provide the feeling of security to the members and help
them interact with one another. They further strive to solve their work-related
problems.
3. Membership Groups:
A membership group is one to which an individual actually belongs whether or
not he is satisfied with the norms, values, beliefs and practices of such a group.
4. Reference Groups:
A reference group is one with which the individual actually identifies himself.
In other words he would like to be associated with such a group
5. In-Group:
An in-group is one which we belong. The members of an in-group have certain
values, beliefs, ideals, and norms that act as a binding force.
6. Out-Group:
The out-group is one to which we do not belong. It consists of members who
hold the values, beliefs, ideals and norms that are quiet opposed to those of the
members of the in- group.

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 7. Open Groups:
An open group is the one that is in a constant state of change. Its membership
keeps fluctuating, i.e., existing embers may leave and new members may join.
The group accepts the idea of the new members and may slowly give p certain
old practices. In view of such a trend, the open group may have plans and
proposals only for a shorter period of time.
Due to its peculiar characteristics, the open group faces conditions of imbalance
and instability.
DIFFERENT STAGES OF GROUP DEVELOPMENT:

Forming Stage: The forming stage is marked by great deal of uncertainty over
the purpose,
structure and leadership of the group. At the end of this stage, inter-personal
relationships are established and members begin to identify themselves with the
group.
 Norming Stage: At this stage one person emerges as a powerful leader.
Such a development paves a way for what is called group cohesion. A
strong sense of group identity and comradeship also develops.
 Performing Stage: This stage is characterized by teamwork, role clarity
and task accomplishment. It exhibits the highest level of group maturity.
Conflicts among the members are resolved through group discussion .
 Adjourning Stage: This stage is relevant for work teams, task forces and
such similar groups that have only a limited task to perform. As soon as
the task is completed, the activities of the group are wrapped up.
 Group Norms Group norms‘ are the rules and regulations prescribed for
the group members. In other words these are the do‘s and don‘ts. These
reflect the feelings, beliefs, values and attitudes commonly shared by the
group members. Group norms provide the standard against which the
behavior of a member is evaluated. A member violating norms may have
to face disciplinary action. A member of a trade union, for example, who
does not respond to strike call given by the union, may be expelled.
Characteristics of group norms:
1. Norms explain the characteristics of a group
2. These relate to the behavior of the members that is considered desirable.
3. Norms provide the standard or basis against which the behavior of the group
members is assessed.
4. Norms are applied to all the members of the group

GROUP COHENSIVENESS:
Group cohesiveness refers to the extent to which the members of the group are
attached to each other and willing to remain in the group.

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FACTORS INFLUENCING COHESION:
The extent to which the members of the group interact with each other
determines group
The kind of threat the members face both from internal and external
environments can influence group cohesion. The greater the threat the better
will be the cohesiveness. This is so because, the members know very well that
they have to stand united failing which they cannot survive.
 Leadership: The quality of leadership can be an important determinant.
If the leader is capable, he will be able to secure cohesion easily among
members.
 Conviction: If there is always a sense of conviction among the group
members on the decisions reached, it is an indication that cohesion s
absolute. If a few members try to thrust tier ideas on their group, such a
conviction may not exist.
 Values: The extent to which the group members share their values and
attitudes is another determinant. If every member starts acting as per his
value system, securing group cohesiveness will become difficult.
 Size of the group: The size of the group can be yet another important
determining factor. When the size of the group increases, securing
cohesion among members will become difficult. This happens because
there may not be consensus among members on certain issues owing to
the large size of the group.
MEASURES TO INCREASE GROUP COHESIVENESS:
1. Inducing agreements on group goals:
The work of every employee influences and is influenced by the work of others.
In the work place the employees, therefore, have to work as a team. If only they
work in a co-ordinated manner, it will be possible for themto carry out any task.
There must be consensus among the members on the goal for the
accomplishment of which they work together. The manager has to play a vital
role in this regard.
2. Increasing the membership of like minded persons:
Every organization has a unique culture that is reflected in the beliefs and
attitudes of the personnel and also in the work methods and practices. The
behavior of the employees, therefore, must reflect its culture. While recruiting
new employees, it must be ensured that they are in a position to understand and
appreciate the organization‘s culture. If some members behave in an altogether
different manner without bothering about the customs and values of the
organization, it is sure to affect group cohesiveness. Steps must, therefore, be
taken to induct and retain only those whose
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 3. Increasing interaction among the members:
Any issue has to be discussed in a forum and no attempt shall be made to thrust
one‘s view on others. Before evolving decisions on any important matter, the
manager must provide opportunities for all his subordinates to discuss the same
and arrive at a consensus.
Group cohesiveness depends to a greater extent on how often and how
effectively the members interact before reaching an agreement on any issue.
4. Taking care of group size:
If the group is unwieldy, securing consensus among the members is sure to
become difficult. It is, therefore, necessary to take care of the group size.
Encouraging competition among groups: Another measure to increase group
cohesiveness is to encourage healthy competition among different groups in the
organization. For example, the salesmen deployed in the southern region may
compete with those deployed in the northern region. This will induce the
salesman in both the groups to evolve some strategy and work with better
understanding.
5. Rewarding the group instead of the individuals:
If any group performs well, it is important to reward the group as a whole
instead of rewarding a few although they have made a significant contribution
when compared to others. This may help to avoid ill-feelings among the group
members and may in fact bring them closer.
6. Isolating the group members from rival groups:
When there are rival groups, e.g. Rival trade unions, it may sometimes be
necessary to isolate the group members from the rival groups. For this purpose,
the leader of the group may have to caution his members always so that they do
not get carried away by the claims of the rivals and continue to be loyal to their
group.
DECISION-MAKING AND THE GROUP:
Decision making is the process of selecting one alternative from among a no. of
alternatives available. The need for decision making will arise only when there
are options. If there is only one way of doing a task, there is nothing to decide.
Decision making is the process of selection from a set of alternative courses of
action which is thought to fulfill the objective of the decision-problem more
satisfactorily than others.
Decision making is the selecting of an alternative, from two or more
alternatives, to determine an opinion or a course of action.

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PROCESS OF DECISION MAKING:
 IDENTIFING AND UNDERSTANDING THE PROBLEM:
The first step in the process of decision making is to identify and understand the
actual problem. If only the actual problem is identified, it will be possible to
provide remedy by evolving a suitable decision. Sometimes, the symptom is
misunderstood as the actual problem and an attempt is made to find a solution to
it.
 MAKING AN ANALYSIS OF THE PROBLEM:
Once the actual problem is identified, the next step is to make a detailed
analysis of the same.
Analysis of the problem requires data that may be obtained from both internal
and external sources.
 IDENTIFYING ALTERNATIVE SOLUTION:
After the problem has been analyzed in detail, the next step is to develop
alternative solutions. Any organizational problem has many solutions. It is,
therefore, necessary that the decision maker identifies the alternative solutions.
 EVALUATING THE ALTERNATIVE SOLUTION:
After the alternative solutions have been identified, the next step is to make an
evaluation of the same. Evaluation of alternatives is done by seeing the pros and
cons of the alternatives.
 SELECTING THE BEST SOLUTION:
At this stage the solution considered the best and the most viable one, under the
circumstances, are selected. In addition to the merits of each alternative
solution, the following factors too influence the selection the best alternative:
 Resources available
 The values and beliefs of the decision maker
 Opinions of the staff
 Past experience, etc.

 IMPLEMENTING THE DECISION:

After the final decision has been made, the next step is to implement the same.
Implementing the decision is done by communicating the same to all concerned.
The responsibility of caring out the decision must be fixed on individuals.
Necessary procedures should be laid down for executing the decision. Suitable
provision must be made to watch the progress of the decision.
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  REVIEW:
Periodic review of the decision, during the period of its implementation, is
necessary. This is done by comparing the actual results with the expected
results. Deviations, if any, must be noticed and corrective measures must be
taken then and there. Certain modifications or alterations in the decision may be
made if necessary.
 INDIVIDUAL DECISIONS:
These are decisions made by individuals over an organizational issue. The
individual, by virtue of his position or knowledge or efficiency may be enjoying
such a decision making authority. For example, when there is dispute between
the workers and the management, the matter may be referred to a mediator who
may conduct an enquiry and announce his decision. The decision of the
mediator is binding on both the workers and the management.
 GROUP DECISIONS:
These are decisions made by the group of persons. In an organisation, there may
exist a committee consisting of the representatives of both the worker and the
management. When there is any dispute between the workers and the
management. When there is a dispute between the workers and the
management, the mater will be referred to the committee. The committee may
conduct an enquiry and announce its decision which is binding on both the
workers and the management.
MERITS OF GROUP DECISIONS:
1. Every member of the group will come out with his views on the problem
considered. The problem, therefore, can be thoroughly discussed and the best
solution can be found out. Such an advantage is not available in case of
individual decisions.
2. The decision of the group, usually, will not be a biased one. This is because;
every member of the group has his own ideals and values. No member can
thrust his view on others. There is always chance for the bias element entering
the individual decisions.
3. The group usually consists of members who represent different segments of
the organization. Therefore, each member will ensure that injustice is not done
to the segment he represents.
4. The process of group decision making also provides scope for proper co-
ordination and cooperation among the members into confidence when he
discusses any issue.

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5. Group decisions enjoy a greater sense of acceptability than individual
decisions.
DEMERITS OF GROUP DECISIONS:
1. There may be delay in arriving at a decision.
2. There is no fixed responsibility on any member of the group for the quality of
the decision made. It is, therefore, possible that a casual approach may be
adopted throughout the decision-making process.
3. Group decisions are often found to be compromise decisions. This happens
because the members may give divergent views on the issue and the consensus
has to be reached somehow at the end. The decision is finally made so as not to
hurt anybody‘s sentiments. Such a decision can only be a compromise decision
and not the best.
4. It is also possible that a few influential members of the group may try to put
pressures on others and get their consent.
5. Group decisions are always expensive compared to individual decisions in
terms of time, money and efforts required.
6. Conflicts may also arise between the members of the group. As a result, a
decision may not be evolved at all and the entire process may be deferred
indefinitely
LEADERSHIP
Leadership can be defined as an art or process of influencing people so that they
will strive willingly and enthusiastically toward the achievement of group goals.
Leadership means to develop willingness to work enthusiastically with zeal and
confidence.
Difference between a Leadership and a Management.

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IMPORTANCE OF LEADERSHIP
Motivates employees
1. Creates confidence in employees
2. Builds morale among employees
3. Leadership skills
4. Ability to use power effectively and in a responsible manner
5. Ability to comprehend that human beings have different motivation forces at
different times and in different situations
6. Ability to inspire
7. Ability to act in a manner that will develop a climate conducive to responding
to an arousing

o Fundamental understanding of people

o Ability to inspire followers to apply their fullest capacities to a project.
o Developing a particular style of leadership
LEADERSHIP STYLES (3 STYLES OF LEADERSHIP)
1. Autocratic style
It is also known as authoritarian directive or monothetic style. In this style a
manager centralizes decision-making power in himself. He structures the
complete situation for his employed and they do what they are told. Here the
leadership may be negative because followers are uniformed, insecure, and
afraid on the leader‘s authority. There are three categories of autocratic leaders.
 Strict autocrat: He is very strict, his style or method of influencing his
subordinates is through negative motivation i.e. by criticizing his
subordinates, imposing penalty etc.,
 Benevolent Autocrat: He centralizes decision making power in him, but
his motivation style is positive. He can be effective in getting efficiency
in many situations. Some people to work under strong authority structure
and they derive satisfaction by this leadership.
 Incompetent Autocrat: Sometimes superior adopt autocratic leadership
style just to hide their incompetence. Because they feel in other styles
they may be exposed before their subordinates. However, this style
cannot be used for a long time.

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Advantages of autocratic style of leadership
 Employees who like to work under strong authority structure and they
derive satisfaction by this leadership
 Provides strong motivation and reward to a manger exercising this style.
 Help in quick decision making.
 Less competent employees also have scope to work based on the
instruction given to them by their leaders.
Disadvantages of autocratic style of leadership
 People dislike strict style of leadership and they get demotivated.
 Frustration, low morale and conflict develops in the organsiation ,
jeopardizing organizational efficiency.
 Employees loose their individuality and creativity because of
continuously listening and following the instruction given by the leaders.
2. Democratic or Participative Style :
The style is democratic, consultative or ideographic. It involves a mental and
emotional involvement of an employee in a group situation which encourages
him to contribute to group goals and share responsibility in them. The manager
in this style emphasizes on consultation and participation of his subordinates.
Hence a participative manager decentralizes on consultation and participation of
his subordinates. Subordinates are also broadly informed about the conditions
affecting them and their jobs. He also encourages, accepts and appreciates the
ideas and suggestions given by them.
Advantages
Employees‘feels recognized
It a highly motivating technique for employees,
Raises the morale and attitude of employees.
Productivity increases.
Disadvantages
Employees may not have understood the organizational process and may
intervene and give suggestions.
Employees who are not ready to interact and participate may create
problems.
3 . Free rein Style
It means giving complete freedom to the subordinates. In this style manager
once determines the policies, programs and limitations for action and the entire
process is left to the subordinates. Group members perform everything and the

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manager usually maintains contacts with outside persons to bring the
information and materials which the group needs .This type of leadership is
suitable in certain situations, where the manager can leave a choice to the group.
This helps the managers to develop independent personality. However
contribution of the manager is almost nil. Hence this style is rarely used in
organization.
LEADERSHIP THEORIES
1. CHARISMATIC LEADERSHIP THEORY
Subsequent studies based on these insights have suggested that a leader is born
and is not made. A leader has come charisma which acts as influencer.
Charismatic is a Greek work which means gift. Thus charisma is a god gifted
attribute in a person which makes him a leader irrespective of situations in
which he works,
Charismatic leaders are those who inspire and have a major impact on their
organizations through their personal vision and energy. Occasionally, a leader
emerges whose high visibility and personal charisma catch the public
consciousness. Charismatic leader have extremely high level of self confidence,
dominance, and a strong conviction .they are always oriented towards high level
of goals or vision, which captures the energy of followers. The theory believes
that only a transformation leader inspires his followers through vision and
energy which a normal leader cannot do. The best examples are the Great
leaders like Mahatma Gandhi and Lenin and the great industrialists like JRD
Tata. GD Birla, Dhirbai Ambani who created industrial empires because of their
own vision, energy and entrepreneurship.
The basic assumption of charismatic theory are:
1. Leader has exceptional inborn leadership qualities which bestowed upon
them by the divine power.
2. These inborn qualities are sufficient for a leader to successful.
3. Since these qualities are inborn, these cannot be enhanced through education
and training. Further these qualities are of very personal nature, these cannot be
shard by others.
4. These leadership qualities make a leader very effective and situational factors
do not have any influence.
Limitation of the theory
 If we assume that leaders are born, it means that we cannot develop
leaders in the organizations.
 A charismatic leader may fail in certain situations.

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 2. TRAIT THEORY
The behavioral psychological researchers accepted the fact that leadership traits
are not completely inborn but they can also be acquired through learning and
experience. Trait is defined as an enduring quality of an individual. The trait
approach seeks to determine what makes a successful leader form the leader‘s
own personal characteristics. Trait approach leadership studies were quite
familiar between 1930 to 1950.The method was to select leaders of eminence
and their characteristics were studied. It was the hypothesis that leaders with
certain traits could become more successful leaders.
Various studies shows various traits, hence these traits can be broadly
classified into innate qualities and acquirable traits
 Innate traits are those traits which are inborn in an individual they are
related to one physical features and intelligence.
 Acquirable traits are those traits which are acquired and increased
through various processes like self learning, training, experience etc. they
are traits like emotional stability, human relations, empathy, objectivity,
motivation skills, technical skills, communication skills, social skills etc.,

 The studies have given that intelligence, attitudes, personality and

biological factors are ingredients for effective leaders.
A review of various research studies has been presented by Stogdill, he has
suggested these traits in a successful leader
1. Physical and constitutional factors (height, weight, physique, energy, health,
appearance)
2. Intelligence
3. Self-confidence
4. Sociability
5. Will ( initiative, persistence ambition)
6. Dominance
7. Surgency (talkative, cheerfulness, geniality, enthusiasm, expressiveness,
alertness and alertness and originality)
Limitations of the theory
There cannot be generalization of traits for successful leaders. No evidence can
be given about the degree of traits because have various traits in various
degrees. No definite conclusion can be drawn for the measurement of the traits.

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 3. BEHAVIOURAL THEORY
Behaviour theory of leadership emphasizes that strong leadership is a result of
effective role behaviour. Leadership is shown by a persons act rather by his
traits. Researchers exploring leadership role have come to the conclusion that to
operate effectively, groups need some one to perform two major functions; task
related function and group maintenance function. Task related function relate to
providing solutions to the problems faced by the groups, in performing jobs and
activities. Group maintenance function or social functions are related to actions
of mediating disputes and ensuring that individuals feel valued by the group. An
individual who is able to perform both roles successfully would be an effective
leader. These two roles requires two different sets of behaviour from the leader,
known as leadership styles. Leaders behavior may be viewed in two ways,
functional and dysfunctional.
Functional leader influences followers positively by giving clear goals,
motivating employees for achieving goals, raising the level of morale, building
team spirit, effective two way communication, etc.,
Dysfunctional leader on the other hand is unfavorable towards employees and
denotes ineffective leadership. Such a behaviour may an inability to accept
employees ideas, display of emotional immaturity , poor human relations.
Limitations of the theory
1. A behaviour which has been functional at a point of time may be
dysfunctional at another point of time.
2. Effectiveness of the leadership behaviour is depended on two external
variables
 Nature of followers
 Situation in which the leader operates etc.
4. SITUATIONAL THEORY
The approach was applied for the first time in 1920 in the armed forces of
Germany with the objective to get good generals under different situations. The
studies when conducted in organizations in 1950‘s gave prime attention in
situational theory of leadership ( also known as contingency theory) is given
to the situation in which the leadership is exercised. There for the theory states
that the effectiveness of leadership will be affected by the factors associated
with the leader and factors associated with the situation.

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 The dimensions of leadership have been presented below :
The various factors affecting leadership effectiveness may be broadly by
classified in two major categories, Leader‘s behaviour and situational factors.
The combination of both these factors determines leadership effectiveness.
Leader behaviour is affected by two variables:
a. Leader‘s characteristics
b. Leader‘s Hierarchical position
Situational factors
 Subordinates characteristics
 Leader‘s situation
 Group factors
 Organizational factors
Diagram of the dimensions of leadership:

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MANAGERIAL GRID DEVELOPED BY BLAKE AND MOUTON
One of the most widely known approaches of leadership styles in the
managerial grid developed by Blake and Mouton. They emphasize the
leadership consists of factors of both task oriented and relation-oriented
behaviour in varying degrees. Two variable have been taken for the study , they
are:-
 Concern for production
 Concern for people
The concern for phrase has been used to convey how managers are concerned
for people or production. Concern for production means the attitudes of
superiors towards a variety of things, such as, quality of policy decisions,
procedures and processes creativeness of research, quality of staff, services,
work efficiency and volume of output. Concern for people includes degree of
personal commitment toward goal achievement, maintaining the self esteem of
workers, responsibility based on trust, and satisfying inter personal relations.
The managerial grid identifies five leadership styles based upon these two
factors(Concern for production &Concern for people) found in organizations.

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Blake and Mouton have described five styles of leadership based on the above
model
They are
1. impoverished (1,1),
2. country club (1,9),
3. task (9,1) ,
4. Middle road (5,5)
5. Team (9,9) styles of leadership
1. Impoverished (1,1): exertion of minimum effort is required to get work done
and sustain organization morale.
2. Country club (1,9): Thoughtful attention to needs of people leads to friendly
and comfortable organization atmosphere and work tempo,
3. Task (9,1) : efficiency results from arranging work requirements in such a
way that human elements have little effect.
4. Middle road (5,5) : adequate performance through balance of work
requirements and maintaining satisfactory morale.
5. Team (9,9) : work accomplished is from committed people with
interdependence through a common stake in organization purpose and with trust
and respect.
6. Managerial grid is useful device to a manager for identifying and classifying
managerial styles, it helps him to understand why he gets the reaction that he
does from his subordinates. It is a means of managerial training and of
identifying various combinations of leadership styles.
FIEDLER’S CONTINGENCY MODEL OF LEADERSHIP
The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler, a
scientist who studied the personality and characteristics of leaders. The model
states that there is no one best style of leadership. Instead, a leader's
effectiveness is based on the situation.
This theory has taken its base form the situational approach of leadership ,states
that any single style cannot be considered suitable for all situations and for all
kind of subordinates.
Fiedler developed contingency model of leadership assuming that the
effectiveness of the leadership is based on the ability to act in terms of
situational requirements

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Fiedler‘s Contingency Theory of Leadership holds that people become leaders
not only because of their qualities but also because of various situational factors
and the interactions between group members and the leader.
This model also explains a relationship between leadership style and the
favorableness of Situation.
1. Fiedler described situational favorableness in terms of three dimensions—
 The leader and member relationship
 The degree of task structure an
 The leader‘s position power.
2. If the three dimensions are high, the situation can be said to be favorable. If
the three dimensions are low, the situation in combination with leadership style
determines effectiveness.
3. This theory is criticized for its deficiencies like narrow focus on a single
leader trait (task or relations orientations), ambiguity in measurement of terms
of the model, and lack of explanatory process.
4. Fiedler proposed a new theory based on empirical research, which is called
the cognitive resource theory.
5. He identified the situations under which the leader‘s cognitive resources
namely intelligence, experience and technical expertise contribute to group
performance.
The leadership style of the leader, thus, fixed and measured by what he calls the
least preferred coworker (LPC) scale, an instrument for measuring an
individual‘s leadership orientation. The LPC scale asks a leader to think of all
the people with whom they have ever worked and then describe the person with
whom they have worked least well, using a series of bipolar scales of 1 to 8,
such as the following:

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A high LPC score suggests that the leader has a "human relations orientation",
while a low LPC score indicates a "task orientation". Fiedler assumes that
everybody's least preferred coworker in fact is on average about equally
unpleasant. But people who are indeed relationship motivated, tend to describe
their least preferred coworkers in a more positive manner, e.g., more pleasant
and more efficient. Therefore, they receive higher LPC scores. People who are
task motivated, on the other hand, tend to rate their least preferred coworkers in
a more negative manner. Therefore, they receive lower LPC scores. So, the
Least Preferred Coworker (LPC) scale is actually not about the least preferred
worker at all, instead, it is about the person who takes the test; it is about that
person's motivation type. This is so, because, individuals who rate their least
preferred coworker in relatively favorable light on these scales derive
satisfaction out of interpersonal relationship, and those who rate the coworker in
a relatively unfavorable light get satisfaction out of successful task performance.
This method reveals an individual's emotional reaction to people they cannot
work with. Critics point out that this is not always an accurate measurement of
leadership effectiveness. Situational favorableness. According to Fiedler, the
ability to control the group situation (the second component of the contingency
model) is Fiedler postulated two major style of leadership.
1. Human relations style
2. Task directed style
Human relations style was oriented primarily towards achieving good
interpersonal relations and towards achieving a position of personal dominance.
Human relations-oriented manager/leader is effective in the intermediate range
of favorableness. In the very favorable and very unfavorable situation task-
oriented leadership is effective.
Task oriented style is concerned towards task performed. Fiedlers felt that the
group performance will be contingent upon the appropriate matching of
leadership style and the degree to which the situation provides the leader that is
the degree to which the situation provides the leader with influence over his
group members.
Favorableness of situation has been defined as the degree to which a given
situation enables a leader to exert influence over a group.
He has identified three dimensions of favorableness of situation.
 The leader member relationships: the leader should be accepted by the
followers
 The degree of the task structure: Task is properly structured
 The leader position or power obtained through formal authority. Great
deal of authority and is formally attributed to leader‘s position
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 HERSEY- BIANCHARD’S MODEL OF SITUATIONAL LEADERSHIP

The figure shows task oriented leader tend to perform best in groups situations
that ate either favorable or unfavorable. Human relations oriented leaders
perform best in situations that ate intermediate in favorableness. The model
indicates that leadership effectiveness depends upon the various elements in the
group environment,. Thus the effectiveness of the group performance can be
affected by changing the leadership style for the situation in accordance with the
described relationships. This also helps in designing the selection and training
programmes for managers to be suitable for given situations.

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 NOTES ON OB
MODULE-IV
ORGANIZATIONAL CULTURE
MEANING
“Culture is the set of important understandings that members of a community
share in common.” It consists of a basic set of values, ideas, perceptions,
preferences, concept of morality, code of conduct etc. which create a
distinctiveness among human groups.
“Culture is a combination of factors that are learned through our interaction
with the environment during our developmental and growth years”.
DEFINITIONS
“The organizational culture is a system of shared beliefs and attitudes that
develop within an organization and guides the behaviour of its members.”
“The corporate culture consists of the normal values and unwritten rules of
conduct of an organization as well as management styles, priorities, beliefs and
inters personal behaviour that prevails. Together they create a climate that
influences how will people communicate, plan and make decisions.”
“ Organizational culture can be defined as the philosophies, ideologies, values,
assumptions, beliefs, expectations, attitudes and norms that knit an Organization
together and are shared by its employees.”
“Organizational culture can be defined as a pattern of basic assumptions
invented, discovered or developed by a given group as it learns to cope with its
problems of external adaptation and internal integration-that has worked well
enough to be considered valuable and, therefore, to be taught to new members
as the correct way to perceive, think and feel in relation to those problems.”
OBJECTIVE OF ORGANIZATIONAL CULTURE:
1. Cooperation: By providing shared values and assumptions, culture may
enhance goodwill and mutual trust, encouraging cooperation.
2. Decision Making: Shared beliefs give members a consistent set of basic
assumptions. It may
3. Control: Control is provided by three mechanisms
 Market control mechanism: relies on price. If results fall short of goals,
prices are adjusted to stimulate necessary change
 Bureaucratic control mechanism: relies on formal authority. The control
process consists of adjusting rules and regulations and issuing directives

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  Clan control mechanism: relies on shared beliefs and values. Provide a
map that members can rely on to choose appropriate course of action.

4. Communication: Culture reduces communication problems in two ways:

 No need to communicate in matters for which shared assumptions
already exist (things go without saying)
 Shared assumptions provide guidelines and cues to help interpret
messages that are received
5. Commitment: Strong cultures foster strong identification which causes
commitment
6. Perception: What an individual sees is conditioned by what others sharing
the same experience say they are seeing
7. Justification of behavior: Culture helps organization members make sense
of their behavior by providing justification for it.
CHARACTERISTICS OF ORGANIZATIONAL CULTURE:
1. Individual Autonomy: The degree of responsibility, freedom and
opportunities of exercising initiative that individuals have in the Organization.
2. Structure: The degree to which the Organization creates clear objectives and
performance expectations. It also includes the degree of direct supervision that
is used to control employee behaviour.
3. Management Support: The degree to which, managers provide clear
communication, assistance; warmth and support to their subordinates
4. .Identity: The degree to which, members identify with the Organization as a
whole rather than with their particular work group or field of professional
expertise.
5. Performance Reward System: The degree to which reward system in the
Organization like increase in salary, promotions etc. is based on employee
performance rather than on seniority, favouritism and so on.
6. Conflict Tolerance: The degree of conflict present in relationships between
colleagues and work groups as well as the degree to which employees are
encouraged to air conflict and criticisms openly.
7. Risk Tolerance: The degree to which, employees are encouraged to be
innovative, aggressive and risk taking.
8. Communication Patterns: The degree to which, Organizational
communications are restricted to the formal hierarchy of authority.

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9. Outcome Orientation: The degree to which, management focuses on results
or outcomes rather than on the techniques and processes used to achieve these
outcomes.
10. People Orientation: The degree to which, management decisions take into
consideration the impact of outcomes on people within the Organization. When
we appraise the Organization on the basis of the above characteristics, we get a
complete picture of the organization’s culture. This picture becomes the basis of
shared norms, beliefs and understanding that members have about the
Organization, how things are done in it and how the members are supposed to
behave.
TYPES OF CULTURE
Cultural Typology: Goffee and Jones have identified four distinct cultural
types. They argue that these four culture types are based on two dimensions
which they call sociability and solidarity. Sociability refers to high concerns for
people i.e. it is people oriented and focuses on processes rather than on
outcomes. The second dimension i.e. solidarity is however task oriented.
These two dimensions create four distinct cultural types:
1. Networked Culture:
Networked culture is high on sociability and low on solidarity. Which means
that the Organization treats, its members in a quite friendly manner and there is
open sharing of information. However, this culture type may lead to poor
performance as the focus is on the people rather than on tasks.
2. Mercenary Culture:
It is low on sociability and high on solidarity. The Organizations with
mercenary culture are task oriented and believe in competition. The people are
highly focussed and goal oriented but, this type of culture may at times lead to
frustration and stress among poor performers.
3. Fragmented Culture:
Fragmented culture is low on both sociability and solidarity. There is little or no
identification with the Organization. It is the individual members’ commitment,
productivity and quality of work which is of utmost importance. This type of
culture however suffers from lack of collegiality.
4. Communal Culture:
It is high on both sociability and solidarity. The Organizations with communal
culture value both people and tasks. Work accomplishment is from committed
people, and there is a relationship of trust and respect.

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The following diagram explains the four cultural typology:

CHANGING ORGANIZATIONAL CULTURE:

Sometimes an Organization determines that its culture is unfavorable to the
Organizational effectiveness and it has to be changed. For example, if there is a
change in the external environment, the Organization must adapt itself to the
changing conditions or it will not survive. Though it is very difficult to change
the old cultures, but it is something which the management cannot do without.
The following conditions must be present only then a cultural change can
take place:
1. Dramatic Crisis: Any dramatic crisis in the Organization like a major
financial setback, loss of a major customer, or a technological breakthrough by
a competitor may force the management to look into the relevance of the
existing culture.
2. New Top Leadership: If some top executives leave the Organization and
new leadership takes over, they may provide an alternative set of key values or a
new culture. This new leadership may be more capable of responding to the
crisis.
3. Young and Small Organization: When the Organization is new and its size
is small, it will be easier for the management to change the culture.
4. Weak Culture: Weak cultures are more amenable to change than strong
ones. The higher the agreement among the members on the Organizational
values, the more difficult it will be to change.
METHODS TO IMPROVE ORGANIZATIONAL CULTURE:
(i) The top management people should become the positive role models. They
should set the examples through their own behaviour.

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(ii) As employees learn the culture through stories, symbols and rituals, the old
stories, rituals and symbols should be replaced by creating new ones which are
currently in vogue.
(iii) Adding new members, particularly at the higher level, is a powerful
strategy to change the culture, provided the new members bring in new culture.
(iv) The socialization processes should be redesigned to align with the new
values.
(v) Reward system establish and reinforce specific cultural behaviours and
therefore, a change in culture can be initiated and supported by change in
corporate reward systems.
(vi) Unwritten norms and beliefs should be replaced with formal rules and
regulations that are tightly enforceable.
(vii) Extensive use of job rotations should be made to shake current subcultures.
(viii) Change in the top management can have significant impact on others in
the Organization, because he may be, in a real sense, the personification of the
culture.
(ix) Change in culture will be comparatively easy if peer group consensus is got
through use of employee participation and creation of a climate with a high
level of trust.
There are four components to an organization's culture: Beliefs, behavioral
rules, traditions, and rituals. The degree to which these components are present
or absent determine the strength or weakness of a culture. The strength of any
culture comes from the degree of agreement among its people about the
importance of specific beliefs, behavioral rules, traditions, and rituals. These are
the things in a culture that determine how things get done.
WEAK CULTURE
A culture is weak when its beliefs, behavioral rules, traditions, and rituals are
not apparent to its members or there is incongruence between stated values and
behavior. This can happen for a variety of reasons. With no knowledge of what
the organization stands for or how things are actually done (rather than how
policy indicates things should be done), weak cultures work against the success
of an organization.
STRONG CULTURE
A culture is considered strong when there is cohesion around beliefs, behavioral
rules, traditions, and rituals. Strong cultures typically feature their beliefs,
behavioral rules, traditions, and rituals in public displays so that employees can

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use these cultural elements for decision making throughout the organization.
Strong cultures include:
 More than one strong leader who articulates beliefs, behavioral rules,
traditions, and rituals that are aligned with customer needs, strategic
direction, and competitive environments.
 Organizational commitment to operating its business as directed by the
culture.
 Unfaltering commitment by the organization to support its key
stakeholders -- business partners, suppliers, employees, customers, and
shareholders (if any) -- and by extension the community, society, and
environment.
CHARACTERISTICS OF A WEAK CULTURE
In comparison, weak cultures often produce low performance. Weak cultures
also have several unhealthy characteristics that can serve as obstacles to an
organization’s ability to meet its goals and achieve success. These
characteristics are:
1. Narrow/Isolated Thinking: This characteristic is evident when an
organization avoids looking outside itself for best practices and approaches.
People in these organizations believe they have all the answers. It is this type of
inward thinking that can prevent an organization from making necessary
procedural and cultural changes.
2. Resistance to Change: This characteristic is evident when an organization is
suddenly confronted with a rapidly changing environment. The organization
focuses on maintaining the status quo, avoiding risk, and not making mistakes.
It is the leadership in the culture that allows these factors to pervade and
paralyze the organization rather than focusing on innovation and success.
3. Political Internal Environment: In a politically charged culture, issues and
problems get resolved along the lines of power. Vocal support or opposition,
personal lobbying, and the formation of coalitions interested in a particular
outcome stifles change. This type of internal environment produces low
performance because it sacrifices what is best for the organization for the
particular desire/self-interest of particular players.
4. Unhealthy Promotion Practices: This characteristic is evident when an
organization promotes a dedicated or long-time employee to management who
is hard-working and good at day-to-day operations, but lacks leadership skills,
vision, and the ability to think strategically. This type of promotion can create a
vacuum regarding an organization’s ability to develop a long-term vision, build
new competencies, and generate new strategies.

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CHARACTERISTICS OF A STRONG CULTURE
Strong cultures better lend themselves to high performance. High-performance
cultures are results oriented and tend to establish an environment where there is
a constructive pressure to perform. In a high-performance culture, there are a
number of healthy characteristics that improve organizational performance, such
as:
1. Culture-reinforcing Tools: These include things like ceremonies, symbols,
language, behavioral rules, and policies. Strong cultures use these tools to
produce extraordinary performance from ordinary people. Strong cultures use
ceremonies and symbols to emphasize what the company values. Ceremonies
and symbols help recognize and celebrate high-performance employees and
help create an emotional bond among all employees. Language used in slogans
and policies help illustrate the company’s primary values and provide a shared
understanding among workers.
2. Intensely People Oriented: Organizations with strong cultures display their
concern for their employees in a variety of ways. These include:
 Treating employees with dignity and respect
 Granting employees enough autonomy to excel and contribute
 Holding managers at every level accountable for the growth and
development of people who report to them
 Using of a full range of rewards and consequences to reinforce high-
performance behavior
 Setting clear performance standards for all employees

3. Results Oriented: High-performance cultures invest more time and resources

to ensure that employees who excel and achieve performance targets are
identified and rewarded. Controls are put in place to collect, analyze, and
interpret employee performance data. Quantitative measures of success are used
to select and reward employees who perform outstandingly.
4. Emphasis on Achievement And Excellence: High-performance cultures
create an atmosphere where there is constructive pressure to be the best.
Management pursues practices and policies, and invests necessary resources to
inspire people to do their best.
SOFT CULTURE
Soft Culture as a term is used often in organisations. Even though the term is
slightly overused today, Soft Culture have earned a strong place in goal setting
activities. This clever acronym allows us to quickly check whether any goal
we’ve written is constructed well enough to be useful:

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  S for Specific: Has the goal clearly defined what needs to be achieved?
Useful questions to ask at this level are how much, what kind, and who
will action.
 M for Measurable: Goals are most effective when they describe an
outcome that can be measured For example, let’s say our goal is to run
a half-marathon. This has a specific measure. We will know if we have
run a half-marathon when we’ve covered a distance of 21 kms (or
13.1miles) in a single run. We can use ‘measurement’ to make this goal
even more effective, by adding time (eg. run the distance in 1:50 hours).
Making goals measurable lifts performance by giving us a clear target to
work toward.
 A for Actionable/Achievable: Does the goal have a clear pathway for
action? Is the goal within your control and ability to influence? Do we
have the required skills to achieve the goal, or is it realistic that we can
acquire those skills within the timeframe you wish to achieve the goal?
 R for Relevant: Is the goal relevant to our overall objectives? If the goal
is a personal one, the question might be whether the goal is aligned with
our life ambition for the next 5 to 10 years. If it is a business goal, we
might ask how the goal takes your department or organisation one step
closer to its mission?
 T for Time bound: Within what timeframe will the goal be achieved?
The simple process of setting ourselves a timeframe for a goal gives us a
deadline to work to.
HARD CULTURE
As researchers seek out new goal setting methods, ‘HARD goals’ have received
attention. The concept of a ‘hard goal’ has been around for a long time. It refers
to a goal that is specific and challenging, as opposed to a ‘soft goal’ which is
general and vague (eg. my goal is to ‘do better’).
 H for Heartfelt: Do we have an emotional attachment to the goal? Does
it move our desired future or help our prevent an undesirable one? The
stronger our attachment or ‘sense of heart’ for the goal, the more likely
we will be to pursue it.
 A for Animated: This is about visualising the goal. The form this might
take is putting up ‘mood boards’ on the wall to help we see how the
world would look if you achieved this goal. Or, simply closing our eyes
for a moment and picturing how our life would be different once the goal
was achieved. Being ‘animated’ is about ‘connecting with the goal’ in a
deep way. The more we are able to create a strong picture of life as

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 though the goal has been achieved, the more magnetic that future will
become for us…and the more we’ll want to work toward the goal.
 R for Required: Is the goal absolutely necessary for your own or your
company’s success? For example, if we run an e Commerce website and
online sales are low, a goal to increase online sales would be a high
requirement.
 D for Difficult: We all love a challenge, don’t we? Goals that require us
to learn new skills and expand ourselves are an
inspiration. To succeed with this criterion the goal needs to be
sufficiently difficult to move us from our comfort zone.
FORMAL ORGANISATION
The term formal organisation, we mean a structure that comes into existence
when two or more people come together for a common purpose, and there is a
legal & formal relationship between them. The formation of such an
organisation is deliberate by the top level management. The organisation has its
own set of rules, regulations, and policies expressed in writing.
INFORMAL ORGANIZATION

An informal organisation is formed within the formal organisation; that is a

system of interpersonal relationships between individuals working in
an enterprise, that forms as a result of people meet, interact and associate with
one another. The organisation is created by the members spontaneously, i.e.
created out of socio-psychological needs and urge of people to talk. The
organisation is featured by mutual aid, cooperation, and companionship among
members.

FORMAL VS INFORMAL CULTURE

The difference between formal and informal organisation can be drawn clearly
on the following grounds:

1. Formal Organization is an organisation in which job of each member is

clearly defined, whose authority, responsibility and accountability are
fixed. Informal Organization is formed within the formal organisation as
a network of interpersonal relationship when people interact with each
other.
2. Formal organisation is created deliberately by top management.
Conversely, informal organisation is formed spontaneously by members.

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 3. Formal organisation is aimed at fulfilling organisation’s objectives. As
opposed to an informal organisation is created to satisfy their social and
psychological needs.
4. Formal organisation is permanent in nature; it continues for a long time.
On the other hand, informal organisation is temporary in nature.
5. The formal organisation follows official communication, i.e. the channels
of communication are pre-defined. Unlike informal organisation, the
communication flows in any direction.
6. In the formal organisation, the rules and regulations are supposed to be
followed by every member. In contrast to informal communication, there
are norms, values, and beliefs, that work as a control mechanism.
7. In the formal organisation, the focus is on the performance of work while
in the case of an informal organisation, interpersonal communication is
given more emphasis.
8. The size of a formal organisation keeps on increasing, whereas the size of
the informal organisation is small.
9. In a formal organisation, all the members are bound by the hierarchical
structure, but all the members of an informal organisation are equal.

POSITIVE ORGANIZATIONAL CULTURE

A positive organizational culture begets respect from employees by providing

them with an environment of trust, collaboration, accountability, and
accomplishment. By supporting employees in their decision-making process,
a positive company culture empowers employees to achieve bigger and better
results.

8 WAYS FOR BUILDING A POSITIVE ORGANIZATIONAL

CULTURE
The below factors will help us understand the different constituents of
organizational culture. By working on them, we can organically create a
supportive culture that drives better business outcomes.

1. Establish Trust

Every successful organization has a dynamic work culture, which is often led by
an effective leader.
As a leader, it is important for us to build a trustworthy relationship with our
employees. When the employees trust us, they believe in our decisions. But
trust is not something that we can gain overnight; we have to earn it over time
with conscious effort.

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2. Determine The Current Culture

It is important to determine and acknowledge the current company culture. As a

business leader, our perspective on organizational culture might be completely
different from our employees’ perspective on the same.

3. Define The Ideal Workplace Culture

Before we shape the existing culture in our company, define the ideal qualities
that we want to integrate with our company’s culture. There is no culture that
fits every organization, different companies have different priorities

4. Set Clear Expectations And Goals

Most companies do not communicate their mission and vision clearly with their
workforce. Employees should clearly understand what’s important and what’s
not. As a manager/ leader, it is our responsibility to set clear goals for them and
make them understand how their personal goals can contribute to organizational
success.

5. Measure Goals and Give Feedback Frequently

The next step after setting goals is to regularly measure them and give feedback.
If we want to achieve a goal, then monitor progress. It is said that monitoring
progress frequently increases the chances of successfully meeting your goals.

6. Recognize and Reward Good Work

Workplace culture is not just about changing the behavior of our workforce; it is
about how we act at your workplace. Employees have busy schedules and a list
of tasks that they have to finish before deadlines. So, when employees perform
beyond their expectations, as a leader, recognize what they’ve done and reward
them.
Rewards and recognition programs are the first steps towards creating a positive
work culture. This behavior boosts employees and motivates them to perform
better in the future.

7. Develop Employees

When we monitor an employee’s performance, as a manager or leader, we

should be able to help them perform better the next time. Establish a culture of
continuous learning in our organization. There are plenty of learning
management systems online that can help us build a strong work culture.

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Create a global mobility strategy that allows our employees to develop their
careers internationally and thrive in a new work environment
8. Focus On Employee Engagement

There is one more aspect that is very important to shaping a positive workplace
culture: employee engagement. With some kind of stressful work day in and
day out, employee disengagement is a common issue at workplaces these days.
As a manager, we have to find a way to keep our employees happy and engaged
at work.
Many companies organize various employee engagement activities to increase
employee engagement in their workplace. The success of an engagement
activity does not always hinge on the amount of money we are willing to spend
on it. For an activity to work, all we need is planning, flexibility, and
participation.
CONCEPT OF WORKPLACE SPIRITUALITY.
Spiritual dimension is one of the core dimensions of human beings. We are not
just material beings. A person's spirituality may be understood as a way of life,
an identity, a pursuit of meaning, purpose and transcendence, and a relationship
with others and with the divine on all levels and thus work is an important
component of it. But in the contemporary era we seem to have lost sight of this
fact

BENEFITS OF WORKPLACE SPIRITUALITY

The benefits of workplace spirituality can be summarized as follows:

A sense of relevance and purpose to employees’ lives

A better work ethic and work/life balance
A greater respect for diversity in the organization
Lower stress for employees
Less ego and less organizational conflict
Increased competitive advantage
Mentoring and supportiveness
High levels of creativity and innovation
Respect for conservation of resources

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ADVANTAGES OF WORKPLACE SPIRITUALITY
Workplace Spirituality has a lot of advantages inner spiritual transformation
results in a positive transformation of an individual. Spirituality has the ability
to help each employee in an organisation realise their full potential, which
benefits both their personal growth and the company's production Co-operation
will be positively correlated with spiritual well-being, which includes a sense of
community, and turnover and absenteeism will be negatively correlated.
Spiritual persons have the ability to look beyond themselves (and to empower
others), a desire to make a difference in and contribute to society in general.
Employees' lives can be made more meaningful and purposeful by incorporating
workplace spirituality. It fosters a better work ethic and work-life balance, as
well as a deeper appreciation for diversity inside the organisation. Employee
stress is reduced, and ego and organisational conflict are reduced as a result. It
leads to a stronger competitive advantage, as well as mentorship and assistance.
CHALLENGES OF WORKPLACE SPIRITUALITY

It fosters high levels of creativity and invention while also emphasising the
importance of resource conservation. Employees may associate spirituality with
religion and blame the organisation for bringing in religious convictions,
therefore organisations that want to incorporate spirituality at work confront
challenges. Most employees want to work in a secular environment where their
work is isolated from their faith, therefore they must be convinced that
spirituality is distinct from religion and that whatever is done is for the benefit
of the individual and the company.

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 NOTES ON OB
MODULE-V
ORGANISATIONAL CHANGE
“Organisational change refers to any alteration that occurs in total work
environment”.
“Organisational change refers to the alteration of structural relationships and
roles of people in the organization.”
 An organisation must develop adaptability to change otherwise it will
either be left behind or be swept away by the forces of change.
 Organisational change is inevitable in a progressive culture.
 Modern organizations are highly dynamic, versatile and adaptive to the
multiplicity of changes.
 It is largely structural in nature.
 An enterprise can be changed in several ways. Its technology can be
changed, its structure, its people and other elements can be changed.
 Organisational change calls for a change in the individual behaviour of
the employees.
 Organizations survive, grow or decay depending upon the changing
behaviour of the employees.
 Most changes disturb the equilibrium of situation and environment in
which the individuals or groups exist.
 If a change is detrimental to the interests of individuals or groups, they
will resist the change.

CAUSES OF ORGANIZATIONAL CHANGE

External Pressures:
1. Change in Technology and Equipment: Advancements in technology is the
major cause (i.e., external pressure) of change. Each technological alternative
results in new forms of organization to meet and match the needs.
2. Market Situation: Changes in market situation include rapidly changing
goals, needs and desires of consumers, suppliers, unions etc. If an organization
has to survive, it has to cope with changes in market situations.
3. Social and Political Changes: Organizational units literally have no control
over social and political changes in the country. Relations between government
and business or drive for social equality are some factors which may compel for
organizational change.

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Internal pressures (pressures for change from within the organisation):
1. Changes in the Managerial Personnel: One of the most frequent reasons
for major changes in the organization is the change of executives at the top. No
two managers have the same style, skills or managerial philosophies.
2. Deficiencies in the Existing Organization: Many deficiencies are noticed in
the organizations with the passage of time. A change is necessary to remove
such deficiencies as lack of uniformity in the policies, obstacles in
communication, any ambiguity etc.
3. Other Factors: Certain other factors such as listed below also demand a
change in the organization.
 Employee’s desire to share in decision-making
 Employee’s desire for higher wage rate
 Improvement in working conditions, etc.
 Response to Organizational Change:
Every change is responded by the people working in the organization. These
responses may be positive or negative depending upon the fact as how they
affect people.

Before introducing a change, the manager should study and understand

employee’s attitudes so as to create a positive response. Three sets of factors-
psychological, personal and social- govern the attitude of people.
PROCESS OF ORGANIZATIONAL CHANGE:
Unless the behavioral patterns of the employees change, the change will have a
little impact on the effectiveness of the organization.
A commonly accepted model for bringing change in people was suggested
by Kurt Lewin in terms of three phase process:-

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(1) Unfreezing:
The essence of unfreezing phase is that the individual is made to realize that his
beliefs, feelings and behaviour are no longer appropriate or relevant to the
current situation in the organisation. Once convinced, people may change their
behaviour. Reward for those willing to change and punishment for others may
help in this matter.
(2) Changing:
Once convinced and ready to change, an individual, under this phase, learns to
behave in new ways. He is first provided with the model in which he is to
identify himself. Gradually he will accept that model and behave in the manner
suggested by the model. In another process (known as internalisation), the
individual is placed in a situation where new behaviour is demanded of him if
he is to operate successfully.
(3) Refreezing:
During this phase, a person has to practice and experiment with the new method
of behaviour and see that it effectively blends with his other behavioural
attitudes. Reinforcement, for creating a permanent set in the individual, is
provided through either continuous or intermittent schedules.
Resistance to organizational change:
Resistance to change is perhaps one of the baffling problems a manager
encounters because it can take many shapes. People may resign, they may show
tardiness, loss of motivation to work, increased absenteeism, request for
transfer, wild-cat strikes, shoddy work, reduction in productivity etc.
Classification of resistance to change:
Individual Resistance:
ECONOMIC REASONS:
1. Obsolescence of Skills:
When a person feels that with the introduction of newer processes, his skills will
just become obsolete, he will resist the change. For example, a twenty years
experienced accountant is quite likely to resist the introduction of a computer

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for preparing the wage bills because he feels that might affect his pay and
position.
2. Fear of Economic Loss:
People resist change if it opens the possibility of lowering their income directly
or indirectly.
PERSONAL REASONS:
1. Ego Defensiveness:
A sales manager may turn down the suggestions of a salesman simply because
the manager perceives that his ego may be deflated by accepting the suggestion.
2. Status Quo:
Most of the people feel comfortable with status quo and strongly resist change
as it may involve uncertainty and risk.
3. Fear of Unknown:
Change presents unknown and unknown poses a constant threat and sores
people. For fear of unknown, a manager may refuse promotion that requires his
relocating in another state.Social Reasons:
Social Displacement:
Introduction of change (e.g., relocating) may result in breaking up of work
groups and thus result in disturbance of the existing social relationships of
people.
1. Peer Pressure:
Whenever change is unwilling to the peers, they force the individual
subordinate employees who are bent of accepting the change, to resist it.
2. Organizational Resistance:
Resistance may also be present at organizational level. Some organizations are
so designed that they resist innovations.
Some of the reasons of organizational resistance are:
1. Threats to Power and Influence:
Some people (especially sitting at the top levels) resist change because they feel
that a change might affect their position, power and influence in the
organization.
2. Organizational Structure: Some organization structures (e.g., bureaucratic
structure) have inbuilt mechanism for resistance to change.
3. Resource Constraints: Non-availability of financial, material and human
resources may also act as a resistance to change.
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4. Sunk Cost: In some companies, heavy capital is blocked in the fixed or
permanent assets. If such an organization wishes to introduce change, then
difficulty arises because of these sunk costs.
5. Overcoming Resistance to Organizational Change: Change creates tension
and emotional turmoil in the minds of employees. Change thus results in
resistance quite frequently, negative reactions doom the success of the change
program especially when a manager is unable to handle it properly.
TECHNIQUES TO HANDLE THE CHANGE PROPERLY AND TO
DEAL WITH RESISTANCE TO CHANGE ARE:
1. Education and Communication: One of the easiest techniques to overcome
resistance to change is to educate the people who resist it. In many cases, people
do not properly understand the change and hence become afraid of its
consequences and resist change.
2. Participation and Involvement: If subordinates are allowed to participate
and involve themselves in the change process (decision-making regarding the
implementation of the change), their misunderstandings about the consequences
of change are cleared, they generally feel satisfied and do not oppose change.
3. Support: Support may be facilitative and emotional. Managers sometimes
deal with potential resistance by being supportive. This includes listening,
providing emotional support, providing training in new skills etc.
4. Incentives: Offering incentive is another fruitful way to overcome resistance
to change.
5. Manipulation: Managers generally indulge in manipulation when all other
tactics have failed to overcome resistance to change.
6. Coercion: At times, there is no way except to deal with resistance coercively.
People are forced to accept change by threatening them with loss of their jobs,
promotion possibilities and so forth.
POWER AND POITICS
POWER
Power is the ability to influence other people. It refers to the capacity to affect
the behaviour of the subordinate with the control of resources. It is an exchange
relationship that occurs in transactions between an agent and a target. The agent
is the person who uses the power and target is the receipt of the attempt to use
power

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“Power refers to a capacity that A has to influence the behavior of B, so
that B acts in accordance with A’s wishes.”
This definition implies a potential that need not be actualized to be effective and
a dependency relationship. Power may exist but not be used. It is, therefore, a
capacity or potential. One can have power but not impose it. Probably the most
important aspect of power is that it is a function of dependency.
A capacity that A has to influence the behavior of B, so that B acts in
accordance with A’s wishes.
The definition implies a potential that need not be actualized to be effective and
a dependency relationship. Power may exist but not be used. It is, therefore, a
capacity or potential.
Contrasting Leadership and Power:
Essentially, leaders achieve goals, and power is a means of facilitating their
achievement
 Leadership involves the goals of the leaders and followers - Power does
not
 Leadership focuses on downward influence (leader - subordinate) - Power
does not
DISTINCTION BETWEEN POWER, AUTHORITY AND INFLUENCE
Power is the ability to influence someone else. Influence is the process of
affecting the thoughts, behaviour and feelings of another person. Authority is
the right to influence another person.
Authority is a legitimate right to influence others.
(1) Authority is right to influence others but power is ability to influence people.
(2) Authority is legitimate while power is not.
(3) Authority confers legitimacy to power but power itself need not be
legitimate.

Bases of Power
Formal Power
1. Coercive Power : Coercive power is use of force to get an employee to
follow an instruction or order, where power comes from one's ability to punish
the employee for noncompliance. This power is in use, for example, when an
employee carries out an order under fear of losing their job or their annual
bonus

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2. Reward Power : Reward power is the power of a manager to give some type
of reward to an employee as a means to influence the employee to act. Rewards
can be tangible or intangible. Promotion, bonus, incentive , increment etc.,
3. Legitimate Power : Legitimate power is power you derive from your formal
position or office held in the organization's hierarchy of authority. For example,
the president of a corporation has certain powers because of the office he holds
in the corporation.
4. Information Power: Informational Power is the power of having
information that another does not have, or, the distribution of information as a
means of effecting change. This could be positive or negative propaganda,
knowledge of an opponents strategy, or detailed information that is used in
decision support .
Personal Power
1. Expert Power : Influence based on special skills or knowledge. When an
individual possesses in-depth information, knowledge, or expertise in the area
that they are responsible for. This type of power is often the most effective type
of power. Because the person has this high level of expertise, they can often
persuade others do to things for them using trust and respect. This expertise and
therefore this type of power are greatly valued in leadership roles.
2. Referent Power :Influence based on possession by an individual or desirable
resources or personal traits. Referent Power is the “cult of personality”. This is
the power and ability for an individual to attract others and to build loyalty
within them. Referent Power is also the power of respect. This can occur
through time if a leader is successful and has a well known track-record of
success.
Referent Power is also created through the values of the individual. Some folks
are born with “It”. Others study leadership and develop themselves to be able to
exercise this form of power effectively.
3. Charismatic Power: An extension of referent power stemming from an
individual’s personality and interpersonal style. A leader with charisma
exercises something like divine powers over his or her followers. This is power
based upon the ability to charm, to persuade, to hypnotise people solely with the
power of personality. The charismatic leader may have no authority based upon
anything except the ability to persuade and charm
SOURCES (BASE) OF POWER
According to French and Raven, a manager drives power from five sources :
Reward, Coercive, Legitimate, Referent and Expert power.

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Reward Power
It is based on the agent's/manager's ability to control rewards the
target/employee wants. The common, e.g., of it are managers control rewards of
salary increases, bonuses and promotions. This power is based on old saying
that 'wealth is power'.
Coercive Power
It is opposite of reward power. It is based on a manager's ability to cause an
unpleasant experience for its people. In organizational situation, it may be in the
form of action for or threat for dismissal, suspension, or demotion, for the
people working in organization.
Legitimate Power
It is based on position and mutual agreement. Both the agent and target agree
that the agent has the right to influence the employees. It is in the form of
authority which is delegated to the positions of organizational members.
Referent Power
It is an elusive power that is based on interpersonal attraction. Charismatic
individuals are often thought to have referent power. Here, people take
somebody as ideal and behave accordingly upto a certain stage.
Expert Power
It exists when the agent has information or knowledge that the target needs. It is
based on the proverb, "knowledge in power". Three conditions to be fulfilled
are :
(1) The target must trust that the information given by the agent is accurate and
correct.
(2) The information should be relevant and useful to the target.
(3) The target must consider the agent as an expert.

ACQUISITION OF POWER
Some people enjoy more power than others because :
1. Extraordinary Works : Doing things in a non-routine or extraordinary
works contribute to power. For example, negotiating a new contract, developing
a new product, or formulating a new programme.
2. Visible Activities : Even extraordinary activities not known to others do not
generate much power. Therefore, activities need to be visible or known to
others. Activities announced and appreciated by the people of higher echelons
bring more power.

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3. Cultivate Right People : Individuals can also increase their personal power
by developing their interpersonal relationships with their superiors, subordinates
and peers.
4. Coalitions : Coalescing is yet another way to earn power. The philosophy
behind joining together is gaining increased capability to influence others.
5. Co-opt : Individuals can increase their personal power by co-opting people
or groups. Co-opting, seeks to eliminate threats and opposition to an individual's
base of power.
PERSONAL AND POSITION POWER
Doing extraordinary things contribute much to personal power. It is possible for
a person to affect the behaviour of others even when he does not have any
formal authority. They do so because of superior qualities. The basis of such
personal power lies in the competence, charisma and leader-like qualities of the
person concerned. Legitimate power is power that is based on position.
Authority confers legitimacy to power. Authority is an institutionalised form of
power vested in a position or office. Position power is an exercise of the
authority delegated to a person.
MEANING OF ORGANIZATIONAL POLITICS
It means the use of power and influences in organizations. Actions not officially
sanctioned or acceptable by an organization that are taken to influence others in
order to meet personal goals refer to politics.
REASONS FOR ORGANIZATIONAL POLITICS
There are many reasons that contribute to political behaviour in organizations.
Some of them are :
1. Clear Goals : Organizations are human groups work for achieving certain
goals. The more unclear and complex the goals are, the more politics will be.
2. Discretionary Authority : Organizations provide position with discretionary
authority that is used based on individual judgement.
3. Autocratic Decisions : The leader dictates the decisions or orders and the
subordinates have no right to disobey. This leads to low employee morale and
doubts about what the manger-leader decides. Therefore, in order to safeguard
their interests, workers involve in politics by forming coalitions and
associations.
4. Power Politics : Power is also a limited in supply. Hence, there is a
competition among mangers/executives to acquire more and more power. They

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try to acquire more power and resources than their competitors. Managers' such
behaviour becomes quite dysfunctional.
5. Saturation in Promotion : Some people reach maximum level of promotion.
They feel dissatisfaction and resort to the organizational politics. Some people
may like work performance more than positional achievement and therefore,
may not resort to politics.
6. Biased Performance Appraisal : When the job performance of a personnel
cannot be measured quantitatively, performance appraisal is made on the basis
of the judgement of the superior. As such the performance appraisal is likely to
be subjective and biased. This may force the subordinates into dysfunctional
political behaviour.
CHARACTERISTICS (SYMBOLS) OF POWER AND
POWERLESSNESS (NEGATIVE ASPECTS)
Kanter has identified several symbols of power or characteristics of powerful
people in organization. These are :
1. Ability to intercede for someone in trouble : An individual who can pull
someone of a jam has power.
2. Ability to get placement for favoured employees : Arranging and getting a
key promotion for an employee is a sign of power.
3. Exceeding budget limits : A manager who can go beyond and above budget
limits without being reprimanded has power.
4. Procuring above-average raises for employees : A manager who can pull
incentives above average for his/her employee has power.
5. Getting items done on own terms at meetings.
6. Access to early information : Having access to information before anyone
else is an indication of power.
7. Top managers seeking out opinion : Top managers may seek advice from
their lower level managers. These lower-level managers have power.
Unlike Katner, Michael Korda has identified three symbols of power.
(1) Office furnishing,
(2) Time power and
(3) Standing by.
Office Furnishing : Office furniture is a message about power one has. Size of
the manager's table conveys the amount of power the manger has.

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Time Power : The powerful executives value time much. A full calendar of the
day is a proof of manager's power.
Standing by : People are obliged to stay close to their phones so that the
executives can have access to them. The idea is that the more you can impose
your schedule on your people, the more power you have.
Symbols of Powerlessness (Lack of Power)
The first-line supervisors often display three symptoms of powerlessness.
These are :
(i) Overly close supervision
(ii) inflexible adherence to rules;
(iii) a tendency to do the jobs themselves rather than educating and training
their subordinates to do these.
When staff professionals (accountants and lawyers) feel powerless, they resist
change and try to protect their turf.
The key to overcome powerlessness is to share power, i.e., empowerment and
delegate tasks to subordinates.
Empowerment is the sharing of power in such a way that individuals learn to
believe in their ability to do the job. Empowerment has four dimensions:
1. Meaning: A fit between the work role and the employees values and beliefs.
2. Competence: A belief that one has the ability to do the job well.
3. Self-determination: Having control over the way one does one's work.
4. Impact: The belief that one's job makes a difference within the organization.
As a manager, you can use these guidelines for empowering your employees.
Express confidence in employees, set high performance expectations, create
opportunities for participative decision making, remove constraints that slow
autonomy and set inspirational and meaningful goals.
EFFECTIVE USAGE OF POWER
 Use power in ethical ways.
 Understand and use all the various types of power and influence.
 Seek out jobs in the organization that allow you to develop your power
skills.
 Use power tempered by self-restraint and maturity.
 Accept that influencing people is an important part of a manager's job.

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LEWIN’S THREE STAGES OF CHANGE
The 3-stage model of change describes the current state as the status quo. It
presents the change process and then starts with the proposed change and then
evolves to the desired future state.
According to Lewin, change in organizations can go through three basic stages:

Phase 1: Unfreezing – Creating the momentum for change

The organization must wake up to the new reality, break with the past, and
acknowledge that the old way of doing things is no longer acceptable. It will be
very difficult for the organization to embrace a new vision of the future until it
separates itself from the structures and management behaviors that no longer
work and that it will seek to break.

1. Current behaviors or attitudes must be definitively denied or no longer

reinforced or affirmed for a period of time.

2. This denial must establish a sufficient sense of urgency to produce change.

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3. Create psychological security by reducing barriers to change or by reducing
the fear of failure.

Phase 2: Change – indicates the direction of change and implements the

change so that members develop new attitudes and behaviors.
The organization creates and owns a vision of the future and integrates the steps
needed to reach that goal. One of the first steps in orchestrating change is to
unite the entire organization under a cohesive vision. This vision not only
includes some statement of its mission, philosophy and strategic goals, but it is
designed to very clearly outline what the organization should ideally look like in
the future. It is likened to “organizational dreaming – using the imagination to
encourage people to rethink what is possible”.

1. Identification with the role model. That is, the most effective way to learn a
new perspective or establish a new attitude is to watch how others do it and
to use that person as a role model for developing new attitudes or behaviors.
2. Selecting multiple pieces of information from objective reality and sifting
through the complexity of the environment to find information about one’s
particular problem.
Stage 3: Refreezing – Stabilizing Change
As new attitudes, practices and policies are used to change the company, they
must be “refreezed” or solidified. Refreezing stabilizes the organization in a
new equilibrium to ensure that the new way of working does not change easily,
and it reinforces the new behaviors that underpin the change.

1. Giving members the opportunity to test whether the new attitudes and
behaviors fit their specific situation. The member’s initial buy-in to the role
model may be minimal and should be sustained with encouragement.
2. Give the member the opportunity to test the acceptance and affirmation of
the new attitude by others with whom he has a significant relationship. The
new attitudes and behaviors of individuals can be maintained somewhat
longer as group members reinforce them with each other.
KOTTER’S 8 STEPS PLAN FOR IMPLEMENTING CHANGE

Step 1 – Establishing a sense of urgency The first step of the change process
underlines an increasing sense of urgency and a need to gain cooperation. When
the urgency level is low, it is hard to convince key individuals to participate in a
change process, and without motivation the effort goes nowhere. Kotter claims
that this first step is essential because getting an organizational change program

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started requires the aggressive cooperation of many individuals, and mentions
that 50% of the companies he observed had failed in the first step . At this point
the role of effective leadership is important in terms of creating a sense of
urgency. In most cases it is hard to push people out of their “comfort zones” in
an organization where there are too many managers, but not enough leaders.
Since change, by definition requires creating a new system, which in turn
always demands leadership.

Step 2 – Building the guiding team Kee and Newcomer elucidate that while
change in the ways of conducting business is usually called organizational
change, the reality is that change is not organizational unless it is first individual
change, and then team change. Kotter also stresses out that major 5 renewal
programs often start with just one or two people, and in cases of successful
transformation efforts, the leadership coalition further grows.

Step 3 – Creating a vision A vision says something that helps clarify the
direction in which an organization needs to move, and it refers to a picture of
future with some explicit or implicit commentary why people should strive to
create that future. Furthermore, vision motivates people to take action in
appropriate direction, and it helps change managers coordinate activities of
different participants.

Step 4 – Communicating the vision Transformation is not possible except a

massive number of people are willing to help in the organization, but employees
will not make sacrifices, even if they are unhappy with the status quo, unless
they believe that useful change is possible. Also real power of vision is
unleashed only when most of the people have a common understanding of its
goals and directions. Failures of the communication of vision are often referred
to the incapability of lower-level employees, a general human nature to resist
change, thus, resistance to acceptance of the information of change.

Step 5 – Empowering the action and removing obstacles Starting from fifth
step, generating phase terminates and consolidation phase takes into affect.
Effectively completing steps one through four of the transformation process
already does a great deal of empower people. The purpose of step five is mainly
to empower a broad base of 7 people to take action by removing as many
barriers to the implementation of the change vision as possible . Empowerment
literally means giving employees power, which makes them able to do what
requirements to be done in the change process. Empowerment also means

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providing employees with the knowledge, skills, opportunity, autonomy, self-
confidence and resources to administer themselves, and be accountable for the
change process .

Step 6 – Creating short term wins Since real transformation takes a considerable
amount of time, short term goals and wins are useful in keeping the momentum.
Without short term wins, there is a risk for people to give up, or become a
change resistant. The short-term wins should be related to change effort,
unambiguous, and visible. Targeting short-term wins increases the pressure on
employees and their commitment to the change effort.

Step 7 – Consolidating improvements Although short term wins are important

in keeping the urgency level up, it would be catastrophic to declare victory too
soon, managing people is about managing feelings. Many employees take
change a very personal and emotional issue, and acceptance of change can be
difficult, especially when it involves their work environment. Employee
resistance can pose considerable obstacles to change effort, particularly for
projects that attempt to change the way in which employees work. Kotter
introduces a number of actions in order to consolidate improvements such as
increasing credibility to change systems, structures and policies that do not fit
the vision; hiring, promoting and developing employees who can implement the
vision; and giving a boost to the process with new projects, themes, and change
agents .

Step 8 – Anchoring new approaches in the culture and making change stick
Culture refers to shared values and norms of behavior among employees.
Inserting new approaches into the old cultures is not an easy task. Common
belief for a change effort to succeed is first start with changing the
organizational culture. Kotter mentions two important factors in
institutionalizing change in corporate culture: a conscious attempt to show the
importance of new approaches, behaviors, and attitudes that helped improve
performance; and establishing a promotion system that carries people to the
next generation of top management who really does personify the new
approach.

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THE 7 STAGES OF CHANGE:

Stage 1: Denial

When new behaviours or expectations are introduced, an individual’s reaction

may be that of shock or denial and to blame others for the change.

An example of this might be when we play back some of the thoughts and
feelings of colleagues who have been previously hurt by certain types of
behaviours and statements. When we share these with management teams, for
instance, sometimes people don’t believe these statements or try to blame the
people expressing the hurt for not being “able to take a joke” or taking things
too personally.

Stage 2: Realisation

Once the individual realises the need for the change, the next step is for them to
become self-critical, feeling insecure and unhappy with their own behaviour and
expectations of themselves.

In our example, this could manifest itself by people blaming themselves for
being insensitive or uncaring towards the feelings of others.
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Stage 3: Resistance

The self-blame can turn into anger and resistance to the introduced
change. This can manifest itself in challenging the changes or “shooting the
messenger” of the change.

People who react this way will need support for the changes to be
successful. This can take the form of simple listening or coaching
conversations, giving people a reasonable amount of time to process and
understand their feelings. In persistent cases, it may be helpful to offer some
coaching support to these individuals.

Stage 4: Letting Go

Gradually, sometimes with support, it becomes easier to let go of the past and
recognise that the change is here to stay. This requires the beginning of a
mindset shift: changing how one sees themselves and others.

In this step, a person might be confused about the change and some challenges
will continue to appear in the form of probing the changes. Questions about the
change might include: how do I fit this into my current life/work? How do I get
better at this? How is it different from what I used to do before and why do I
need it?

The need to remind people of the purpose and reasons for the change becomes
even more important at this point.

Stage 5: Searching

The letting go of the past continues and gives way to testing and exploration of
what the new changes mean for them. This is when people start seeing the
changes for what they are, what’s good about them and what’s more
difficult. They also start experimenting with how to adopt these changes.

In this stage, people are more willing to try out the new behaviours and less
afraid to make mistakes by embracing the changes.

In these two stages, it is possible to slip back into a previous stage and return to
self-doubt and blaming. This means that it’s particularly important to manage
this transition carefully by reminding people of the reasons for the change and
supporting them in staying the course.

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Stage 6: Understanding the Meaning of Change

For those who refrain from travelling backwards from the Letting Go or
Searching stages, this stage is a proper step towards embracing the change. The
recognition that change is well and truly underway is setting in, and people
begin to accept and embrace the change as the new normal. They have let go of
the past and begin to realise what the changes truly mean to them and the
organisation.

Stage 7: Change Acceptance

This is the stage that we all want to achieve: when people understand the new
behaviours and are willing to embrace them. When this is done more and more
naturally, the benefits of the change become recognisable. It is at this stage that
new ideas, innovation and creativity blossom and when diversity of thought
comes into its own.

INTERVENTION STRATEGIES & DEVELOPING LEARNING FOR

FACILITATION ORGANISATIONAL CHAGES:

LEARNING : Learning can be defined as the permanent change in behavior

due to direct and indirect experience. It means change in behavior, attitude due
to education and training, practice and experience. It is completed by acquisition
of knowledge and skills, which are relatively permanent.
NATURE OF LEARNING : Nature of learning means the characteristic
features of learning. Learning involves change; it may or may not guarantee
improvement. It should be permanent in nature, that is learning is for lifelong.
The change in behavior is the result of experience, practice and training.
Learning is reflected through behavior.
FACTORS AFFECTING LEARNING:
Learning is based upon some key factors that decide what changes will be
caused by this experience. The key elements or the major factors that affect
learning are motivation, practice, environment, and mental group.
 Motivation − the encouragement, the support one gets to complete a task,
to achieve a goal is known as motivation. It is a very important aspect of
learning as it acts gives us a positive energy to complete a task. Example
− the coach motivated the players to win the match.
 Practice − we all know that “Practice makes us perfect”. In order to be a
perfectionist or at least complete the task, it is very important to practice

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 what we have learnt. Example − we can be a programmer only when we
execute the codes we have written.
 Environment − we learn from our surroundings, we learn from the
people around us. They are of two types of environment – internal and
external. Example − A child when at home learns from the family which
is an internal environment, but when sent to school it is an external
environment.
 Mental group − It describes our thinking by the group of people we
chose to hang out with. In simple words, we make a group of those
people with whom we connect. It can be for a social cause where people
with the same mentality work in the same direction. Example− A group
of readers, travelers, etc.

THEORIES OF LEARNING :
Learning can be understood clearly with the help of some theories that will
explain our behavior. Some of the remarkable theories are −
 Classical Conditioning Theory
 Operant Conditioning Theory
 Social Learning Theory
 Cognitive Learning Theory
 Classical Conditioning Theory
The classical conditioning occurs when a conditioned stimulus is coupled with
an unconditioned stimulus. Usually, the conditioned stimulus (CS) is an
impartial stimulus like the sound of a tuning fork, the unconditioned stimulus
(US) is biologically effective like the taste of food and the unconditioned
response (UR) to the unconditioned stimulus is an unlearned reflex response
like salivation or sweating.
After this coupling process is repeated (for example, some learning may already
occur after a single coupling), an individual shows a conditioned response (CR)
to the conditioned stimulus, when the conditioned stimulus is presented alone.
The conditioned response is mostly similar to the unconditioned response, but
unlike the unconditioned response, it must be acquired through experience and
is nearly impermanent.
OPERANT CONDITIONING THEORY : Operant conditioning theory is
also known as instrumental conditioning. This theory is a learning process in
which behavior is sensitive to, or controlled by its outcomes.
Let‟s take an example of a child. A child may learn to open a box to get the
candy inside, or learn to avoid touching a hot stove. In comparison, the classical
conditioning develops a relationship between a stimulus and a behavior. The

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example can be further elaborated as the child may learn to salivate at the sight
of candy, or to tremble at the sight of an angry parent. In the 20th century, the
study of animal learning was commanded by the analysis of these two sorts of
learning, and they are still at the core of behavior analysis.
SOCIAL LEARNING THEORY
The key assumptions of social learning theory are as follows −
 Learning is not exactly behavioral, instead it is a cognitive process that
takes place in a social context.
 Learning can occur by observing a behavior and by observing the
outcomes of the behavior (known as vicarious reinforcement).
 Learning includes observation, extraction of information from those
observations, and making decisions regarding the performance of the
behavior (known as observational learning or modeling). Thus, learning
can occur beyond an observable change in behavior.
 Reinforcement plays an important role in learning but is not completely
responsible for learning.
 The learner is not a passive receiver of information. Understanding,
environment, and behavior all mutually influence each other.
COGNITIVE LEARNING THEORY
Cognition defines a person‟s ideas, thoughts, knowledge, interpretation,
understanding about himself and environment.

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This theory considers learning as the outcome of deliberate thinking on a
problem or situation based upon known facts and responding in an objective and
more oriented manner. It perceives that a person learns the meaning of various
objects and events and also learns the response depending upon the meaning
assigned to the stimuli.
This theory debates that the learner forms a cognitive structure in memory
which stores organized information about the various events that occurs.
LEARNING & ORGANIZATIONAL BEHAVIOR :
 An individual’s behavior in an organization is directly or indirectly
affected by learning. Example − Employee skill, manager’s attitude are
all learned. Behavior can be improved by following the listed tips
 Reducing absenteeism by rewarding employees for their fair attendance.
 Improving employee discipline by dealing with employee’s undesirable
behavior, drinking at workplace, stealing, coming late, etc. by taking
appropriate actions like oral reprimands, written warnings and
suspension.
 Developing training programs more often so as to grab the trainees‟
attention, provide required motivational properties etc.

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