Management Concepts and Organizational Behaviour

Unit-I Nature and Theories of Management

• An organization is a consciously coordinated Social Unit,
composed of two or more people that functions
continuously to achieve a common goal or set of goals.
Organizations are social systems and they play a major
role in the lives of all of us. We live in an Organizational
world.
• Irrespective of its size, type, location or needs managers
have a variety of characteristics. No matter, what type
organization they work, managers are generally
responsible for a group of individual performance. The
relationship between managers and workers has changed
as compared to the older master-servant relationship
which makes the organization’s management more
complex.
MEANING OF MANAGEMENT
• The origin of management can be tracked back to the days
when man started living in groups. History reveals that
strong people organized the masses into groups according
to their intelligence, physical and mental capabilities. A
manager is someone who works with and through other
people by coordinating their work activities in order to
accomplish organizational goals.
• Managers may have a variety of titles and roles. They
perform various jobs and duties and are responsible for
higher profits and for great performance. Managers work
in various departments and are employed by many types
of organization. As leaders, managers must encourage this
 group to reach common business goals, such as bringing a
new product to market in a timely trend.
Organizational behavior is the study of individuals and it
is a study of groups. It studies the aspects of motivation,
leader behavior, power, communication, group structure,
learning, attitudes, job design and work stress etc.
In today’s scenario, Organizations are a necessary part of
our society and they serve many important needs.
DEFINITION OF MANAGEMENT
Management can be defined in many ways:
1.“Management is the art of knowing what you want to do and
then seeing that it is done in the best and cheapest way”.-
F.W.TAYLOR
2.“Management is the process of designing and maintaining an
environment in which individuals working together in groups,
efficiently accomplish selected aims”.-KOONTZ and
WEIHRICH
“To manage is to forecast and to plan, to organize, to command,
to co-ordinate and to control”.-HENRY FAYOL
“Management consists of getting things done through others.
Manager is one who accomplishes the objectives by directing
the efforts of others”.-S.GEORGE
NATURE OF MANAGEMENT
1.Management is multidisciplinary in nature-It is an
interdisciplinary study. It draws ideas and concepts from
disciplines, such as economics, statistics, mathematics,
psychology, sociology, anthropology etc.
2.Management is a continuous process-It is a process, function
or activity. This process continues till the objectives set by
administration are actually achieved.
3.Management is a universal activity-Management is not
applicable to business undertakings only. It is applicable to
political, social, religious and educational institutions also.
Management is necessary when group effort is required.
4.Management is a Science as well as an Art-Management is
an art because there are definite principles of management. It is
also a science because by the application of these principles
predetermined objectives can be achieved.
5.Management is dynamic and not static-It is a dynamic
process because it keeps on changing with the changes that
takes place in environment. It is a continuous process because
it is the act of coordinating the efforts of people to accomplish
desired goal and objectives using available resources
efficiently and effectively.
6.Management is a Profession-Management is gradually
becoming a profession because there are established principles
of management which are being applied in practice, and it
involves specialized training and is governed by ethical values.
7.Management is a group activity-Even if there are so many
managers(all departments) in an organization. Management is
always concerned with group efforts and not individual efforts.
In order to achieve the objectives, the management must go for
planning, organizing, coordinating, directing and controlling
the group effort.
8.Management aims at obtaining wealthy results-Utilizing the
minimum resources wisely to attain the maximum profits is the
first and foremost function of a manager.
9.Management implies skill and experience in getting things
done through people-Management involves doing the job
through people. No organization can attain success without
‘PEOPLE”.
10.Management is a system of authority-Authority means
power to make others act in a predetermined manner.
Management formalizes a standard set of rules and procedure
to be followed by the subordinates and ensures their
compliance with the rules and regulations.
11.Management is intangible-Quality stands greater rather than
quantity. In an organization, even to increase production, sales,
profit(quantity basis) the performance of various
managers(quality) in all departments are required.
12.Management implies good leadership-A manager must have
the ability to lead and get the desired course of action from the
subordinates.
SCOPE OF MANAGEMENT
1.Functional areas of Management:
There are various functional areas in an
Organization like Human Resource Management, Marketing
Management, Production Management, Material Management,
Purchasing Management, Maintenance Management, Office
Management.
2.Subject-matter of management:
 It is a continuing activity made up of basic
management functions such as planning, organizing, staffing,
directing and controlling. All these components form the
subject-matter of management.
3.Management is an inter-disciplinary approach
4.Management is an agent of change- It changes based on R&D
5.Principles of Management.
EVOLUTION OF MANAGEMENT THOUGHT
• The evolution of management can be traced back to the
days when human beings started living in groups. One can
argue that management took the form of leadership which
was essential to coordinate the efforts of the group
members in order to arrange the necessaries of life.
• The advent of industrial revolution in the middle of the
18th century had its impact on management. During this
period, certain pioneers tried to challenge the traditional
character of management by introducing new ideas and
approaches.
ROBERT OWEN-He was an owner of a group of textile mills
in Lanark, Scotland where he used his ideas of human relations.
He was the promoter of co-operative and trade union movement
in England. He emphasized the recognition of human element
in industry. He firmly believed that workers performance in
industry was influenced by the working conditions and
treatment of workers. He implemented several ideas for the
first time like housing facilities for employees, short
working hours, training of workers in hygiene, employees
child education, provision of canteen etc. Hence, he came to
be regarded as the “FATHER OF PERSONNEL
MANAGEMENT”.
CHARLES BABBAGE-Since he is considered to be the
“FATHER OF MODERN COMPUTING”, he implemented
little usage of science and mathematics in the Management.
He believed that it could be applied for finding solutions for
management problems. He believed that the use of accurate
observations(scientific), measurement(mathematics) and clear-
cut knowledge for taking business decisions.His management
ideas also anticipated the concept of profit sharing to improve
the productivity.
• HENRY ROBINSON TOWNE-He was the president of
the famous lock manufacturing company “Yale and
Town”. He advised the combination of engineers and
economists as industrial managers. This combination
of qualities, together with at least some skill as an
accountant, is essential to the successful management
of industrial workers.
All those pioneers laid the
groundwork for major management theories. However, the
industry as a whole was insufficient even though they
contributed some ideologies towards management thought.
During the 19th century only, the real science of management
has developed.
Classical Management Theory
➢ The classical theory represents the traditional accepted
views about organization. In a way, it signifies the
beginning of the systematic study of organization. That is
 why it is said to be the oldest school of thought about
organizations and their management.
➢ Managers were unsure of how to train employees or
deal with increased labour dissatisfaction, so they
began to test all the tasks. As a result, the classical
management theory developed from efforts to find the
“ONE BEST WAY” to perform and manage tasks.
➢ The classical theories concentrated on organization
structure for the achievement of organizational goals and
also developed certain principle of management.
➢ This theory is made up of three parts:
1.Scientific Management Theory(F.W.Taylor)
2.Administrative Management Theory(Henry
Fayol)
3.Bureaucratic Management Theory(Max Weber)
Scientific Management Theory
• It is defined as the use of scientific method to define the
“one best way” for a job to be done. This theory
developed due to the need to increase productivity and
efficiency. The emphasis was trying to find the best way
to get the most work done:
1.By examining how the work process was actually
accomplished, and
2.By scrutinizing the skills of the workforce.
• The major contributors are:
FREDERICK W.TAYLOR
 He was regarded as the “Father of Scientific
Management”. Taylor tried to analyze the causes of low
efficiency in industry and came to the conclusion that much
of waste and inefficiency is due to the lack of order and
system in the methods of management.
He also initiated the time-and-motion study, where by
a work task is broken down into its various motions, is
improved by eliminating unnecessary motions/actions, and
then the motions timed to determine optimal daily production.
Time Study-The study that determines the standard time
taken to perform a job is known as Time Study.
Motion Study-The study of movements like lifting objects,
sitting, changing working styles etc, is known as Motion Study.
While working in a factory, a worker has to move from one
place to another, which takes time and effort and cause
fatigue. So this time-and-motion study aims at eliminating
unnecessary movements of workers in a factory so that their
time and energy are saved.
F.W.TAYLOR along with his associate, had a close
observation and discovered the motions/movements which
are productive, incidental and unproductive. This study
helps in setting a standard method of performing a task. It also
helps in achieving the objectives effectively and efficiently
and saves labour costs tremendously.
HENRY GANTT
He developed the Gantt chart, a bar graph that
measures planned and completed work along each stage of
production. Based on time instead of quantity, volume, or
weight, this visual display chart has been widely used as a
planning and control tool. He also included a unique pay
incentive system and the social responsibility of business.
Unique pay-incentive system was aimed at providing extra
wages. Under this wage payment system, if a worker
completes the work on time, he is paid a definite bonus in
addition to his daily minimum wages.
FRANK GILBRETHS and LILLIAN GILBRETHS
This couple refined Taylor’s analysis of work
movements and made many contributions to time-and-motion
study. Their aims were
1.Break-up into each of its component actions and analyze
every individual action necessary to perform a particular task,
2.Find better ways to perform each component action, and
3.Reorganise each of the component actions so that the action
as a whole could be performed more efficiently at less cost of
time and effort.
This was the first motion study designed to isolate the best
possible method of performing a given job.
F.W.Taylor’s Scientific Management
Taylor attempted a more scientific approach to management as
well as the problems and the approach was based upon four
basic principles:
1.Study each part of the task scientifically, and develop the
best method to perform it.
2.Carefully select workers and train them to perform a task
using the scientifically developed method.
3.Cooperate fully with workers to ensure they use the proper
method.
4.Divide work and responsibility. So, management is
responsible for planning work methods using scientific
principles and workers are responsible for executing the work
accordingly.
ELEMENTS OF SCIENTIFIC MANAGEMENT
1.Planning the task
2.Scientific Task and Rate-setting(work study)
3.Scientific selection and Training
a. Taylor suggested that workers should be selected
scientifically by a central personnel department. The
procedure of selection will also have to be systematized.
b. A worker should be physically and technically most
suitable for the selected post.
c. After selection, workers should be given a proper
training which makes them more efficient and effective.
4.Standardisation
Standards must be maintained in respect of the
equipments and tools, materials, period of work, amount of
work, working conditions, cost of production etc.
5.Specialisation
Taylor developed a theory called functional
foremanship based on specialization of function. In this
system eight functional foreman were involved to direct and
control the activities of the workers.
6.Financial Incentives
a. Motivate the workers to put up the maximum efforts.
b. Wages should be based on individual performance
and not on the position which he occupies.
c. A worker who completes the actual work gets higher
wages & who does not complete gets lower wages.
7.Economy
a. Scientific Management enhances profit and
economy.
b. The economy and profit can be achieved by making
the resources more productive with least wastages.
8.Mental Revolution
a. It is based on co-operation between management
and workers.
b. Co-operation enhances the effective managerial
activities.
c. Mutual conflict should be replaced by mutual co-
operation.
Benefits of Scientific Management
Some of the benefits are
• Replacement of traditional method by scientific
techniques.
• Proper selection and training of workers.
• Standardization of tools, equipment, materials and work
methods.
 • Incentive wages to the workers for higher production.
• Satisfaction of the needs of the customers by providing
higher quality products at lower prices.
Fayols’s Administrative Management Theory
The administrative management theory concentrates on
developing organizational structure that leads to high
efficiency. It is the system of task and authority relationships
that control how employees use resources to achieve the
organization’s goals.
This theory concentrated on the
development of managerial principles rather than work
methods.
✓ Henri Fayol identified 14 principles of management
based on his management experience. He believed that
these principles are essential to increase the efficiency of
the management process.
✓ He is considered as ‘the father of modern theory of
general and industrial management’.
✓ His principles provided modern-day managers with
general guidelines on how a supervisor should organize
and manage the staffs.
FAYOL’s contribution are published in his book- ‘The
general and industrial administration’ and it falls into two
parts. The first part related to the theory of administration
which divided the industrial activities into 6 categories. The
second part is concerned with the 14 principles of
management.
Six categories
1.Technical(Production,Manufacture)
2.Commercial(Buying,Selling,Exchange)
3.Financial(Search for and optimum use of capital)
4.Security(Protection of property and persons)
5.Accounting(Balancesheets, Cost Accounting)
6.Management(Planning,Organising, Coordinating, Directing
and Controlling)
14 Principles of Management
1.DIVISION OF WORK
Work should be divided in a proper way based on available
time. Worker on the same job and the managers on the same
duty acquire ability and accuracy which increases their output.
2.AUTHORITY AND RESPONSIBILITY
Authority is the power given to a person to get work from
his subordinates. Responsibility is the amount of work
expected from a subordinates by his superior.
3.DISCIPLINE
It is essential for the smooth running of organization.
4.UNITY OF COMMAND
An employee must receive orders and instructions from one
supervisor only. Multiple commands will cause conflicts
and confusions. A sound management should avoid dual
commands.
5.UNITY OF DIRECTION
Each group of activities having the same objective with one
head and one plan. All should coordinate and work together
to achieve the common goal.
6.SUBORDINATION OF INDIVIDUAL INTEREST TO
GENERAL INTEREST
Every employee is working in an organization to earn money
in order to meet his personal needs. Here, the employees should
give importance first to the general interest than his
individual interest. It will lead to effective management of the
organization.
7.REMUNERATION OF PERSONNEL
It should be fair for both employees and employers.
8.CENTRALISATION
There should be a balance between the hierarchy and division
of power among the subordinates.
9.SCALAR CHAIN
It states that instructions and orders should be sent from the
top management to the bottom management.
10.ORDER
In any organization materials and people are provided in correct
places so that materials can be easily taken out and people can
place it in correct work location.
Material order-A place for everything and everything in its
place.
Social order-A place for everyone and everyone in its place.
11.EQUITY
Equal treatment of employees helps to achieve organizational
goals.
12.STABILITY OF TENURE OF PERSONNEL
An employee delivers the best if they feel secure in their job. It
is the duty of the management to offer job security to their
employees.
13.INITIATIVE
When employees come forward with new ideas, they must be
encouraged by the superiors. It will create morale of the
employees.
14.ESPRIT DE CORPS
This means union is strength. In an organization, employees
should be harmony and unity.
BUREAUCRATIC MANAGEMENT THEORY
• Max Weber developed the principles of bureaucracy
which is a formal system of organization and
administration designed to ensure efficiency and
effectiveness. He believed that the authority should be
something that was part of person’s job and passed from
individual to individual as one person left and another
took over that job. A bureaucratic system of
administration is based on the following characteristics:
1.A well-defined hierarchy
Here, the positions should be arranged hierarchically so that the
employees should know whom to report and who reports to
them(proper chain of command).
2.Division of labor and specialization
All responsibilities in an organization are specialized so that
each employee has the necessary expertise to do a particular
task.
3.System of written rules and regulation
Organization must create a well-defined system of rules,
standard operating procedures and norms so that they can
effectively control the behavior within an organization.
4.Impersonal relationships between managers and employees
Managers should not show favoritism to any employees.
5.Selection and evaluation system
Selection should be based on performance or work output.
6.Records
A bureaucracy needs to maintain complete files regarding all
its activities.
NEO-CLASSICAL THEORY OR BEHAVIOURAL
MANAGEMENT THEORY
• Management principles developed during the classical
period were simply not useful in dealing with many
management situations. A classical theory ignored
employees motivation and behaviour.
• As a result, the behavioural theory was a natural
outcome of this revolutionary management
experiment. It modified and extended the classical
theory.
• It pointed out the role of psychology and sociology in
understanding of individual and group behaviour in
an organization.
 • A management concept that studies how productivity in
an organization can be managed by concentrating on the
things that motivate the workforce.
ELTON MAYO
✓ Elton Mayo’s contributions to management was mainly in
employee management(HRM). He discovered that social
forces and relational forces positively impact employee
productivity. He also noted that although finances play a
role as motivators, positive work relationships weigh
more.
✓ Elton Mayo is known as the founder of human relations
management. A team of researchers from Harvard
University, led by Elton Mayo, conducted some
experiments (known as Hawthorne Studies) and
investigated informal groupings, informal relationships,
patterns of communication, patterns of informal
leadership etc.
The Hawthorne experiment consists of four parts as follows:
1.Illumination Experiment
2.Relay Assembly Test Room Experiment
3.Bank Writing Test Room Experiment
4.Mass Interview Programme
Illumination Experiment:
1.Mainly proposed to study the conditions of work. The main
aim was to study the relationship between intensity of
illumination(light) and output(product).
2.One group was asked to work under steady light and other
group was asked to work under inconsistent light. It aimed to
analyse the impact of lighting on productivity.
These were dissatisfactory to the researchers because the
employees which were subjects to the study had reacted not to
actual illumination changes but to some other variables and
hence no real change in production had been registered.
The Relay Assembly Study:
1.This study was to discover the physical elements that affect
the productivity of workers. It was done by employing six
women employees with an observer and a friendly
environment was created.
2.These employees were working in isolation, away from the
plant. They were not supervised, but they were under
researcher’s observation.
3.The study demonstrated that attitude and morale have the
power(successful supervision, team spirit, social groups,
effective informal leadership etc) to avoid the bad effects of
fatigue, hours of work, monotony, boredom etc.
4.Researchers found that even after so many manipulations, the
productivity increased continuously.
The Bank Writing Observation Room Study
The basic objective was to identify the actual determinant
affecting productivity.
1.Fourteen employees were selected by the researchers, and
2.Production records of these employees were compared with
their earlier production records.
3.Group has decided its own ‘informal performance standards”.
4.It made a conclusion that the wage incentive plan was less
important than acceptance by a group and being secure, in
deciding the individual worker input.
The Mass Interviewing Program:
1.The aim of interviewing programme was to identify factors
affecting productivity.
2.Hence, 20,000 interviews were carried-out by researchers.
3.A questionnaire was given to employees and they were
asked to respond without any hesitation.
Thus, the results of these interviews explained the relevance of
social factors on working environment.
Finding of Hawthorne Experiments
✓ Worker should be treated like social beings-understanding
social requirements.
✓ Work is essentially a group effort.
✓ Physical, Psychological and Social factors to be taken into
consideration
✓ Non-financial incentives also important(social rewards,
appreciation, motivation)
Modern Era/Contemporary Approach
• This theory explains the complex issues of the
organisation and how the individuals working on it.
• It highlights the different needs, wants, ambitions,
potential of the employees.
 • It is viewed as an enhancement to the earlier discussed
management theories.
System Approach:
1.It is of the view that all organisational decisions should be
implemented only when the managers have determined their
impact on the entire organisation and its functional areas.
2.It is based on the principle that managers in an organisation
cannot perform their responsibilities in isolation.
3.Managers should establish proper communication channel
with employees and other departments. It is essential for
maintaining a systematic flow of information within and
outside the organisation.
• Contingency Approach:
1.It can also be termed as situational approach. It is of the view
that there cannot be one specific action or response for
different situations faced by the organisation.
2.Here, the management effectiveness is reliable/trustworthy or
dependent upon the interaction that occurs between the specific
organizational situations and behaviour of management in
dealing with the situation.
3.Contingency approach is a situation based approach which
compels the managers to examine, analyse and identify the
situation.
4.Different situations demand different responses from the
management.
So, this approach suggests that the management tools should be
customised according to the respective situation.
 UNIT II PLANNING
PLANNING is the primary function of management. It is the
process of drawing up a roadmap to achieve certain goals
objectives. It can be regarded as ‘FUTURE COURSE OF
ACTION’.
Planning facilitates optimum utilisation of tangible and non-
tangible resources. It helps the managers in assessing the
resources, evaluating strengths, factoring all the threats,
considering various possibilities and choosing the most
appropriate alternative.
In an organization, lots of planning activities are done by the
management people at all levels.
Planning is the process of selecting objectives and
determining the course of action required to achieve the
objectives. Lot of information has to be gathered and processed
before planning is formulated. It bridges the gap from where
we are and where we want to go.
Definition of Planning:
“Planning is deciding in advance what to do, how to do it, when
to do it, and who is to do it. It is the selection among alternatives
of future course of action for the enterprise as a whole and each
department within it.”-Koontz and O’Donnell.
Planning leads to decision-making and controlling.

Nature and Purpose of Planning

1.Planning-a primary function
It heads all functions, such as organizing, directing, controlling
etc. There is no meaning of other activities without setting the
goals to be achieved and line of action to be followed.
2.Planning-a dynamic/energetic process
It involves complex process such as perception, analysis,
communication, decision and action. It is a never-ending
activity of a manager of an enterprise.
3.Planning-based on objectives and policies
It is a continuous process which involves setting of objectives
to be achieved and determining the technique for achieving
those objectives. Planning policies makes a bridge over where
we are and where we want to go.
4.Planning- a selective process
The planning manager has to select only one best alternative
from many number of alternatives for achieving a particular
objective of a firm.
5.Planning-an intellectual process
6.Planning-focus with future activities
7.Flexibility of planning
8.Planning is based on facts
Importance/Scope of Planning
✓ To cope with uncertainty and change
A good organization has to work in accelerating change. This
change is reflected in both tangible and intangible forms.
Tangible changes are in the form of changes in technology,
market forces, government regulations etc. Intangible changes
are in the form of changes in attitudes, values, cultures etc.
✓ To facilitate control
Control involves the measurement of execution of events
against plans and correction of deviations to assure the
achievement of objectives as set by plans.
✓ To help in coordination
All the managerial functions lead to coordination in the
organization. But real coordination begins with the planning
stage. All departments work in accordance with the overall
plan.
✓ To guide decision-making
Planning provides a basis for future oriented decisions. Without
planning, business decisions may become random. It serves as
a framework for making rational decisions.
✓ To increase organizational effectiveness
Planning ensures that resources are put into action in such a
way that results in maximum efficiency and contribution to
organizational objectives.
PLANNING PROCESS
Planning is a continuous process. It is not necessary that a
particular planning process or steps are valid for all
organizations and for all types of plans.
The planning process or steps given here is applicable for
majority of the firms.
1.Identification of Opportunities
It is the starting point of planning. The management should
identify the possible future opportunities and analyze them
clearly and completely.
2.Establishment of objectives or goals
The next step in planning is to establish objectives for the
entire organization and then for each subordinate unit.
Overall objectives give directions to the nature of all other
plans of the major departments.
3.Developing planning premises
Planning provides the basic framework in which plans
operate. These premises may be internal or external. Internal
premises include organizational policies, resources of
various types etc. External premises include the total factors
such as political, social, technological, competitors etc.
4.Identification of alternatives
Based on organizational objectives and planning premises,
various alternatives of plans can be identified. All
alternatives cannot be analyzed. Some alternatives can be
rejected at its preliminary stage itself. Only the alternatives
which meet the preliminary criteria may be chosen for further
detailed analysis.
5.Evaluation of alternatives
Each alternative course of action is evaluated on the basis of
profitability, risk involved, capital investment etc. Moreover
there is no certainty about the outcome of the alternative
because it is related with future and future is uncertain.
6.Selecting alternatives
After the evaluation, the most appropriate course of action is
selected. If more than one alternative is suitable, then many
alternatives may be chosen for execution.
7.Formulation of derivative plans
The derivative plans are formulated on the basis of the major
plan. There are several minor plans required to support and
execute the major plan. These plans are known as derivative
plans. Ex: buying raw materials, recruiting and training
personal.
8.Establishing sequence of activities
The starting and finishing times are fixed for each piece of work
so as to indicate when and within what time that work is to
be commenced and completed.
• OPERATIONAL PLAN
1.An operational plan is one that a manager uses to accomplish
one’s responsibilities.
2.Supervisors, team leaders, facilitators develop operational
plans to support tactical plans.
3.It can be a single-use plan or an on-going plan.
• TACTICAL PLAN
1.It is concerned with what the lower level units within each
division must do, how they must do it, and who is in-charge at
each level.
2.Tactics are the means needed to activate a strategy and make
it work.
3.These plans usually span one year or less because they are
considered short-term goals.
 • STRATEGIC PLAN
1.Strategic planning begins with an organization’s mission.
2.It is an outline of steps designed with the goals of the entire
organization as a whole.
• CONTINGENCY PLAN
1.A contingency plan is a plan devised for a specific situation
when things could go wrong.
2.Contingency Plans are often devised by governments or
businesses who want to be prepared for anything that could
happen.
3.During times of crisis, contingency plans are often developed
to explore and prepare for any possible outcomes.
Merits of Planning:
✓ Helps in achieving objectives
✓ Better utilization of resources
✓ Economy in operation
✓ Reduces uncertainty and risk
✓ Improves competitive strength
✓ Effective control
✓ Coordination
✓ Guides in decision-making
Demerits of Planning:
✓ Lack of accurate information
✓ Time and cost
 ✓ Inflexibility
✓ Delay during emergency period
✓ False sense of security
Characteristics of a Sound Plan(same as Nature of
planning)
• The characteristics of a sound plan
1.Primacy-Planning is an important managerial function that
usually precedes other functions.
2.Continuity
3.Flexibility
4.Consistency
5.Precision(exactness)
6.Pervasiveness(widespread)
MANAGEMENT BY OBJECTIVES
• It was conceptualized by Peter.F.Drucker .MBO is a
management system in which each member of the
organization effectively participates. It is now practiced in
all over the world.
Definition of MBO:
“MBO is a comprehensive managerial system that integrates
many key managerial activities in a systematic manner and that
is consciously directed towards the effective and efficient
achievement of organizational and individual objectives”.-
KOONTZ and WEIHRICH.
1.MBO is a process whereby superior managers and
subordinates of an enterprise jointly identify its common goals
and set the results which are to be achieved by subordinates.
2.Subordiantes are allowed to make creative decisions on their
own.
3.MBO synchronizes the goal of an individual with the
organizatonal goal.
FEATURES OF MBO
✓ MBO tries to combine the long range goals of an
organization with short range of goals.
✓ MBO involves the participation of subordinate managers
in the goal setting process.
✓ A high degree of motivation and satisfaction are available
to employees through MBO.
✓ It focuses more attention on what must be accomplished
in an organization and moreover it is goal oriented rather
than work-oriented approach.
✓ Benefits and weakness of MBO
✓ 1.Improvement of managing
✓ 2.Clarification of organization
✓ 3.Personnel satisfaction
✓ 4.Team work
✓ 5.Development of effective control
✓ 6.Time consuming
 ✓ 7.Danger of inflexibility-MBO is rigid one. Objectives
should not be changed under MBO.
✓ 8.Increased paperwork-It contains many newsletter,
booklets, training manuals, performance appraisal reports
etc. This increased paperwork reduces effectiveness of
MBO in many organisations.
STRATEGIES, POLICIES AND PLANNING PREMISES
✓ A strategy is a course of action through which an
organization relates itself within the environment so as to
achieve its objectives.
✓ In order to formulate on effective strategy, management
must anticipate the plans of competitors and look at
them from the view point of rival firms.
Nature of Strategy:
1.It is futuristic
2.Strategy is flexible and dynamic
3.It involves the assumption of certain calculated risks
4.It is generally formulated by top level management.
5.It provides a guideline for future course of action.
Effective Implementation of strategies
1.Communication Strategies
2.Developing and communicating planning premises
3.Developing appropriate operational plans
4.Periodic review of strategy
5.Continuing to emphasize planning and implementing strategy
Nature and Purpose of POLICIES
A policy is a broad statement formulated to provide
guidance in decision-making. It defines the area or limits
within which decisions can be made.
Characteristics of a Sound Policy
1.Relationship to organizational objectives
2.Clarity of policy
3.Policies should be written
4.It aids in decision making
5.Consistency of policies.
Decision Making
Decision-making may be defined as the process of choosing a
course of action from among alternatives to achieve a desired
goal.
It is one of the functions of management and also a core process
of planning. The decision may rational(reasonable )or
irrational.
In decision making, there are number of alternatives available
to the management. The best one is selected among the
available alternatives.
Features of Decision-Making
1.It is a selection process
2.It is a goal-oriented process
3.Decision-making is the end process
4.It is a continuous and ongoing process.
Organization Structure and Design
✓ Organizing is the process of identifying and grouping of
activities required to attain the objectives, delegating
authority, creating responsibilities and establishing
relationships for people to work effectively.
Definition of Organizing
“Organizing is the process of defining and grouping the
activities of the enterprise and establishing the authority
relationships among them”.-HAIMANN
Nature/Importance of Organizing
1.Common Objectives
2.Specialization of division of labour
3.Authority of structure
4.Group of persons
5.Co-ordination
6.Communication
Process of Organizing
1.Determination of activities
2.Grouping of activities
3.Assignment of Duties
4.Delegation of authority
5.Establishment of structural relationship
6.Co-ordination of activities
Organizational Structure
 ✓ It is the formal pattern of interactions and coordination
designed by management to link the tasks of individuals
and groups in achieving organizational goals.
✓ A sound organization structure facilitates growth of
enterprise by increasing its capacity to handle increased
level of authority.
✓ This structure helps a member to know what his role is
and how it relates to other roles.
Types of Organization Structure based on Power/Authority
Mechanistic/Bureaucratic Structure
This structure include a clear-cut division of labor, strict
hierarchy of authority, formal rules and procedures and
promotion based on proficiency.
Adoptive Structure
It is much less formal and much more flexible than a
mechanistic organization due to which it is amendable to
change, innovation and development.
Types of Organizational Structure based on formation of
Departments or groups
• Functional Structure-It is the most popular organizational
structure in the business world, because it is basic and it
makes sense.
• Divisional Structure-The firm is divided into several fairly
autonomous divisions.
• Matrix Structure-Hybrid organizational form,
containing characteristics of both functional and
divisional structures.
 • Team Structure-Here, cross-functional teams are
composed of members from different departments who
work together as needed to solve problems and explore
opportunities.
• Network Structure-It relies on other organizations to
perform critical functions on a contractual basis.
Delegation of Authority and Decentralisation
• Delegation of authority is a process which enables a
person to assign works to others and delegate them with
adequate authorities to do it.
“Delegation is a primary formal mechanism by which the
network of authority relationship is established”- Mc.Farland
Features/Importance of Delegation
1.Delegation may be specific or general, written or implied,
formal or informal.
2.Delegation helps to improve job satisfaction, motivation and
morale of subordinates.
3.Delegation of authority has been widely recognized as an art
of getting things done in the best possible manner.
4.It enables the manager to obtain the specialized knowledge
and expertise of subordinates.
Decentralization
It applies to the systematic delegation of authority in an
organization in a broader way. An effective decentralization of
authority requires a proper balance between dispersal of
authority among lower levels and adequate control over them.
AUTHORITY and RESPONSIBILITY
Authority is the power given to a management executive, who
acts as a representative of the top-level authority or the
organization itself.
It can be defined as the power to make decisions which guide
the actions of another.
Uses of Authority
1.Enables ease and efficiency
2.Helps in handling conflicts and maintaining relations
3.Equal distribution of resources and workload
RESPONSIBILITY
It is an obligation to perform a particular task or job. It is a duty
to undertake various jobs, assignments, and functions for the
smooth flow of operations within an organization
Controlling
• Control is a process which guides activity towards some
predetermined goals. Planning and controlling are twins
of management functions. It means measuring the actual
performance and taking corrective action.
“Controlling is the measuring and correcting of activities of
subordinates to ensure that events conform to plans”-
H.KOONTZ and O’DONNELL
In order to manage the organization effectively, there are 3
types of control.
1.Feed forward Control-Identifying input variables
2.Concurrent Control-takes place at the time of execution of
activities
3.Feedback Control-Post-action control
Characteristics/Nature of Control
1.Continuous process
2.Exercised at all levels
3.Three-dimensional process-Past, present and future
4.Allows coping with environment
5.Positive purpose of control
Importance of Controlling
1.Aids in Achieving organizational goals
2.Ensure Discipline and order
3.Facilitates Delegation
4.Motivates Employees
5.Helps in Better planning
Co-ordination
Co-ordination helps the manager in integrating and
synchronising the efforts of the employees for attaining the
organizational goals.
“Co-ordination harmonises, synchronises and unifies
individual efforts for better action and for the achievement of
the business objectives”-HENRI FAYOL
Types of Co-ordination
1.Interdepartmental Co-ordination-Internal Co-ordination
2.Vertical Co-ordination- Top managers to lower level
managers
3.Horizontal Co-ordination-Various employees at the same
level of hierarchy.
4.Diagonal Co-ordination- Here, members of the organization
without following a particular chain of command. Ex:Canteen
services, typing services etc.
Impact of Technology on Organizational Design
• Automation-Customer support, Automation, Book
keeping
• Artificial Intelligence
• Improved Productivity
• Improved Customer Service
• Remote working
• Mobile Technology
UNIT-III INDIVIDUAL BEHAVIOUR
Introduction
✓ Individual behaviour or human behaviour is the set of
actions performed by an individual. Performance of an
organization depends on the individual behaviour.
✓ The study of individual behaviour enables a person to
determine how people behave in an organizational
setting, the manner in which they communicate with each
other and also an understanding of their own behaviour.
✓ Individual behaviour is affected by numerous factors like
attitudes, culture, emotions, ethics, values etc.
✓ This type of behaviour can be categorized as common,
unusual,acceptable and unacceptable behaviour.
✓ Both internal and external factors affect an individual’s
behaviour like personality traits, internal feelings, weather
conditions, behaviour of others etc.
✓ NATURE OF INDIVIDUAL BEHAVIOUR
✓ 1.Field of Study and not a discipline
✓ Human behaviour is considered as a
separate field of study and not a discipline. It is not
considered as a pure science as it has emerged recently.
It has an interdisciplinary orientation and a broad base.
✓ 2.Inter-Disciplinary Approach
✓ It is a blend of information from various
disciplines, which makes it interdisciplinary in nature. The
disciplines are psychology, anthropology, and sociology
etc. Certain interesting information is also extracted from
political science, economics, history and law.
✓ 3.Both Art and Science
✓ Human behaviour is an applied science
because it draws inferences from different researches
to solve the problems associated with human behaviour.
It concentrates on applied research and not on
fundamental research like the pure science.
✓ 4.Normative and Value-Centred
✓ It can be considered as a normative science
because it explains how the results of various
researches can be applied in an organizational framework
in a socially acceptable manner. Anything that is socially
acceptable or associated with people working in an
 organization is related to social values and associated
persons.
✓ 5.Humanistic and Optimistic
It believes that motivation and needs of
individuals are very important. It is believed that human
beings are sensory and intellectual organisms whose
thoughts and values must be respected. Absence of human
beings will make an organization fully dysfunctional
body.
FOUNDATION OF INDIVIDUAL BEHAVIOUR
• Personal Factors
Age, Gender, Education, Marital status, Number of
dependents, Creativity.
• Psychological Factors
Personality, Values, Attitudes, Motivation, Learning
• Organizational Factors
Physical facilities, Leadership, Reward System, Work-
related behaviour
• Environmental Factors
Economic factors, Political factors, Social Norms and
value factors
MODELS OF INDIVIDUAL BEHAVIOUR
Human behaviour can be categorized into three models such as
1.S-R Model
2.S-O-R Model
3.S-O-B-C Model
1.S-R Model(Stimulus-Response Model)
According to S-R model, there is always a reason for any
human action or behaviour. This model believes that an
individual responses because some stimulus influences his/her
behaviour. Stimulus can either be in the form of internal
motivation or it can be in the form of external factors like
weather, information available etc.
2.S-O-R Model(Stimuli-Organism-Response)
Here, the organism is a mediator of stimulus and response. The
stimulus is developed by the human which further results
in certain response or behaviour. The ‘O’ in this model is
active and moving which performs the maintenance and
regulatory function between stimulus and response.’ O’
monitors different activities of a person and tries to search out
for the ways to overcome various challenges so that the desired
results can be achieved.
3.S-O-B-C Model(Situation-Organism-Behaviour-
Consequence Model)
It is an extension of S-O-R model which is more
comprehensive and complex model of human behaviour. Here,
‘S’ is the situation including physical, socio-cultural and all
aspects of environment-immediate-stimulus.’ O’ is the
individual who is not only physiological, but also
psychological in nature. ’B’ is concerned with both
covert(secret) and overt(open) behavioural pattern. ’C’ stands
for both covert and overt consequences of the human
behaviour.
ORGANIZATIONAL BEHAVIOUR
✓ OB is the field of study devoted to understanding the
behaviour of individuals and groups in an organization
and applying this knowledge in the best possible manner.
✓ The main goal is to accomplish human, organizational and
social objectives by building better relationships inside the
organization.
✓ OB helps management in evaluating and shaping human
behaviour in the best possible manner.
✓ It can be defined as the arrangement, working and
performance of organizations, as well as the conduct of
individuals and groups in the organization.
✓ Assessment of people within an organizational set-up can
be seen and also includes examining, forecasting, and
managing the human behaviour.
✓ DEFINITION OF OB
“Organizational behaviour is a field of study that
investigates the impact that individuals, groups and structure
have on behaviour in organisations, for the purpose of applying
such knowledge towards improving an organization’s
effectiveness”.-Stephen Robbins
Nature of OB
1.It is a fundamental part of Management
2.Multi-disciplinary Approach-Psychology, sociology,
anthropology(science of humanity)
3.Science and Art-Utilisation of scientific methods as well as
deals with the behaviour of individuals.
4.Normative Science-Helps in applying the results of
different studies in working of the organization in such a way
that it is compatible with the society.
5.Focussed towards organizational objectives
6.Total System Approach- as a whole
Importance of OB
1.Helps in understanding Human Behaviour.
2.Assists in controlling and Directing Behaviour.
3.Evaluates Communication Process.
4.Helps in understanding Leadership concepts.
5.Assists in Organizational Adaptation.
OB Contributing Disciplines
It is an applied behavioural science based on contributions from
numerous behavioural science based on contributions from
numerous behavioural disciplines.
1.Psychology-Behavioural Science
2.Medicine- Diagnosis and treatment of diseases, Wellness
programs,
3.Sociology-Social science, Influence of culture on groups
4.Anthropology-Applied science studies human behaviour
5.Political Science-Stable Govt helps the business positively
6.Economics-Economic factors affect organisational climate
like forecasting & decision making.
PERCEPTION & LEARNING
 • Perception refers to the stimuli(motivation) that our senses
gain from the surrounding.
• It comprises of five senses like touch, smell, taste, feel,
hear.Further, it includes cognitive processes that are
needed to derive information like detecting the face or
recognizing the voice of a person.
• It is an important factor in an organization, people respond
according to their perception about the fact rather than the
actual fact.
“Perception may be defined as a process by which
individuals organize and interpret their sensory impressions in
order to give meaning to their environment”-S.P.Robbins.
Nature of Perception:
1.Intellectual Process
2.Socially connected
3.Culturally Influenced
4.Psychological process
5.Self-Fulfilling
Components of Perception
Stimuli-Physical, Socio-cultural(external envt),Self(internal
envt)
Satisfaction-Expectation and performance evaluation
Performance-Action, satisfaction reaction
Behaviour-Overt(open) physical action, covert(secret) mental
state
Importance of Perception
1.Helps in understanding human behaviour
2.Helps in forecasting behaviour
3.Assists in handling subordinates effectively.
4.Facilitates needs determination-A Person’s perception is
influenced by his needs.
Principles of Perception
1.Good continuation-Components organized in a defined
manner are interpreted as more connected than not
organized properly.
2.Similarity-Components that are same are supposed to be
more connected than those that are not same.
3.Uniform connectedness-Components that are similar in
appearance are said to be more connected than those
dissimilar in appearance.
Stages of Perception/Perceptual Process
1.Perceptual Selection
It is the selection of certain stimuli(components) from the
environment and rejecting the others.
Sensory Activation-Only certain types of stimuli activate our
senses.
Sensory Adaptation- Ex: A person forgets the sound of a radio
or television while doing routine activities.
2.Perceptual Organization
A person does not observe the amount of light, sound or color
linked to any event but he certainly observes an organized
pattern, stimuli or object attached to it.
3.Perceptual Interpretation
Perception is believed to occur only after the data is interpreted
because it gives meaning to the received and interpreted data.
LEARNING
Learning can be defined as the summation of behavioral
transformations which are the outcome of knowledge attained
during the training.
It acts as a dominant encouraging factor for the employees to
remain connected with organisations.
Characteristics of Learning
1.Learning involves constant growth and development
2.Learning is Adjustment
3.Learning is a systematized experience
4.Learning involves change
5.Learning is a continuous process
6.Learning is a transferrable process
Significance of Learning
1.Helps in controlling employee behavior
2.Helps managers differentiate between learning and acquiring
4.Brings significant changes in training
5.Enhances growth in functional behavior
PERSONALITY
✓ Personality is the collection of all possible ways in which
an individual reacts and communicates with others.
✓ It includes their pattern of internal and external
measurable traits and the interaction between person and
situation.
✓ It is an integrated system which includes both the aspects
of a person, the one which are inherited as well as those
that are learned.
✓ These two aspects are dependent on each other and cannot
be separated.
Major Personality Attributes influencing OB
✓ 1.Self-Monitoring
✓ 2.Self-Esteem-People tend to feel proud about their
competence and at times about themselves.
✓ 3.Need Patterns-Differ from individual to individual.
✓ 4.Locus of Control-It is a personality trait possessed by
people who believe that either internal or external factors
are responsible for their behaviour.
✓ 5.Risk Taking-Certain people have the tendency to take
risks while the others tend to avoid it.
✓ 6.Introversion and Extraversion-Extroverts are expressive
and friendly, whereas introverts are hesitant, silent, and
reserved.
✓ Importance of personality
✓ 1.Creativity
 ✓ 2.Retention
✓ 3.Teamwork
Management and Behavioral Applications of Personality
✓ 1.Matching Job and Individuals
✓ Organizations conduct a personality test
in the form of a written test or an interview. This enables
the organization to determine the personality traits of the
applicant and observe if they match with the job
requirements.
✓ 2.Designing Motivation System-Monetary as well as Non-
Monetary system
✓ 3.Designing Control System
✓ Control system might be strict or
flexible. Employees show different reaction to different
control systems. These reactions are a result of their
personalities.
INDIVIDUAL DIFFERENCES
✓ Different individuals of similar are can
have different weight, height, posture, complexion,
hobbies, interests, personality etc. ”Individual differences
refer to dissimilarities among various members in a group
in any characteristic that can be identified”-CRAIG ET
AL.
✓ Factors Influencing Individual Differences:
✓ 1.Heredity factors- Gender, Age etc.
✓ 2.Abilities and skills
 ✓ 3.Attitudes
✓ 4.Personality
✓ 5.Perception
MOTIVATION
It refers to the process of inspiring people for doing
tasks and achieving goals and desires. It is a psychological
occurrence that originates from the wants and needs of
people. It initiates a goal oriented behaviour.
“Motivation is the willingness to exert high levels of effort
toward organizational goals, conditioned by the effort and
ability to satisfy individual need”.-S.P.ROBBINS
1.Maslow’s Need Hierarchy Theory
Points to be considered
1.There exist five levels of human needs that he/she requires
to satisfy.
2.These needs are organized according to their preferences,
i.e., most important to least important.
3.Once a need is satisfied, the individual proceeds towards
next need.
4.Though the basic physiological needs and security needs are
limited and can be satisfied easily but the other three needs are
unlimited.
5.The first two needs are considered as lower level needs and
remaining three are considered as higher order needs.
6.All the five levels of Maslow’s need theory are mutually
dependent on each other. An individual can move to the next
level of need, only after satisfying the previous need.
Herzberg’s Motivation Hygiene Theory
It is also known as two-factor motivation theory, as it is based
on two emotions, i.e
a.Job satisfaction, b,Job dissatisfaction.
Here, Herzberg decided to interview maximum
number of employees working at higher levels in their
respective companies. So, he interviewed around 200
accountants and engineers to recall the times when they felt
good and bad at their workplace and then specify the
reasons for their feelings respectively.
Factors to be considered
1.Hygiene Factors-Adequate number of hygiene factors at the
workplace help in comforting the employees like physical
working conditions, interpersonal relations.
2.Motivational Factors-These factors positively satisfy the
human beings for a much longer term. Some of the factors are
recognition, sense of achievement, growth and promotional
opportunities.
Mc Gregor’s Theory X and Theory Y
According to this theory, every individual
has two different views like positive and negative. He called
these negative views as Theory X and positive view as Theory
Y.
He tried to observe the behaviour of managers while interacting
with their employees and concluded that the viewpoints of
managers for their employees are based on certain perceptions
and these perceptions further shape their behaviour.
Assumptions of Theory X-Managers believe
1.Employees try to neglect the work and show aversion to
work.
2.Employees need to be pressurized, supervised and sometimes
even threatened to make them achieve the set targets.
3.Employees do not take their responsibilities seriously and
only follow the same routine rules wherever necessary.
4.Employees give priority to job security which results in non-
ambitious and lethargic towards the work.
Assumptions of Theory Y
1.Employees have the ability to treat their work either as a
routine task or as an enjoyable activity.
2.Employees eager to accomplish desired goals and objectives.
3.Achevement of an employee is based on his level of
commitment towards his objectives.
4.Employees also have a great ability to think ‘Out of the box’
and do something innovative.
Contemporary Theories of Motivation
1.McClelland’s Need Theory-He developed a theory which laid
emphasis on need for achievement, power and affiliation.
a.Need of Achievement
 Individuals have a habit of setting high standards and
taking calculated risks. They demand feedback for their
performance and concentrates more on successful task
completion.
b.Need for Power
Here, the main area of concern is to build and maintain
leader-follower relationships.
c.Need for Affiliation
It is concerned with attraction to another organism in
order to feel reassured from the others. They possess sensitivity
towards others.
Vroom’s Expectancy Theory/Vroom’sValence and
Instrumentality Theory
1.This model believes that the rewards play a very important
role in determining the motivation of an individual.
2.Since human beings are rational by nature, they will search
for the most beneficial alternative that can increase the value of
these rewards.
3.When people know the value of reward, they automatically
motivate themselves to perform better in order to achieve the
desired rewards and results.
Expectancy-It gives an idea about the relationship between
the efforts applied and the results received.
Instrumentality-The extent to which the improvement in the
performance of an individual affects the salary structure of
that individual is instrumentality.
Valence-The value given by individual to rewards offered by
the company is known as Valence.
a.Positive Valence
b.Zero Valence
c.Negative Valence
Equity Theory-J.S.ADAMS
• Employees working in an organization expect justice and
fairness on the part of management.
• Biased and unfair treatment not only demotivates them,
but also hampers their performance.
Adams equity theory has four significant elements like
1.Person
2.Comparison other-Also known as ‘relevant order’
3.Inputs-Skills,experience,talent which individual carries on
joining the job
4.Outcomes-Salary,bonus,promotion
Reinforcement Theory-B.F.Skinner
1.This theory explains that the behaviours which are not
reinforced are less likely to be repeated, while the behaviours
which are reinforced will be repeated.
2.Here, the level of motivation in an individual is determined
by the outcomes of his behaviour.
Classification of Reinforcement
Positive Reinforcement-Rewarding and appreciating the
favourable behaviour of employees.
Negative Reinforcement-Avoidance
Extinction-Undesired behaviour results in disappearance.
Punishment
Alderfer’s ERG Theory-Improved version of Maslow’s
need theory
Existence – These needs are associated with the existence of
human beings and are an extended version of Maslow’s
Physiological needs and few safety needs.
Relatedness- It is an extended version of Maslow’s need for
belongingness and few safety and self esteem needs.
Growth-Maslow’s need for self-esteem and self-actualization
are equivalent to growth needs.
Importance of Motivation
1.Improves the performance efficiently
2.Ensures accomplishment of organizational goals
3.Creates and supportive relationship
4.Helps in employee retention
5.Helps in acceptance of organizational changes
Motivation and Job Performance
An employees’s performance is the factor that makes or ruins
an organization.The management needs to devise various
methods to motivate its employees. Generally, MONEY is the
universal motivating factor.But apart from money, there are
other factors like
1.Employee differences-Mindset and notion/perception
2.Job-Employee feels worth doing in particular job,
automatically results in motivation
3.Work environment
4.Public Recognition
VALUES
Values displays an individual’s mind-frame behind what an
employee perceives as right or wrong. Values are so deep
rooted.
“Values are specific mode of conduct or end state of existence
is personally or socially preferable to an opposite or converse
mode of conduct or end-state of existence”-Stephen P.Robbins.
Characteristics of Values
1.Part of culture-Every society has a distinct culture and the
individuals belonging to the society follow that culture.
2.Learned Responses-Some responses might be gained through
daily experiences and some experiences are learned from
explicit(definite) experiences.
3.Satisfying responses
4.Social phenomenon
5.Adaptive process
6.Inculcated-Values are transferred from one generation to
another via various institutions and groups. Family is the main
source of this transformation.
Classification of Values
1.Human values-Truth, Peace, Non-violence, Moral and ethical
behaviour
2.Social values-Mutual respect, Cooperation, Harmony
3.Business values-Holistic and peaceful business dealings
4.Community values-Associations, clubs and public
organizations
5.Family values-Love and respect among various family
members
6.Professional values-Rules of different professions, Norms of
conduct
7.Secular values-Equality among all castes and religions.
8.Spiritual values-Spirituality provides the actual satisfaction
to a person
Attitudes
In today’s world, attitude has become the demand of most of
the organization.
It refers to the feeling and behaviour of an individual towards
any object or situation. Behaviour is of two types: Positive,
Negative
In simple terms, thinking, feeling and reacting towards various
aspects of environment is known as attitude.
“Attitudes are likes and dislikes”-BEM.
Right Attitude
Positive attitudes result in better growth of personality,
meaningful life, feeling of being important and involvement to
self and society.
1.Identification of Attitudes
2.Looking for positive
3.Building positive self-esteem
4.Continuous learning
5.Avoiding Procrastination(delay)
Components of Attitudes
1.Cognitive Component-It means the actual knowledge of an
individual about an object. Ex:Computer Operator
2.Affective Component-It is a way in which an individual
responds emotionally towards an object or an individual.
3.Behavioural Component-Behaviour of an individual towards
an object is known as behavioural component of one’s attitude.
Types of Attitudes
The employee’s positive and negative thinking regarding
his/her job and working environment is known as work-related
attitude.
1.Job satisfaction
2.Job involvement
3.Orgnaisational commitment
BELIEFS
Beliefs are based on cause-effect relationship that human
beings develop with others during their life span.
In successful organizations, policies and procedures are based
on certain beliefs.
Importance of Beliefs
Beliefs help to trace the reaction of a person on the behaviour
of other person.
Beliefs of an individual impact one’s behaviour which in turn
may affect others positively or negatively.
Beliefs restrict individuals to take certain steps which they
might have taken in the absence of those beliefs.
Attitude is shaped through beliefs.
An individual’s belief system is highly influenced by physical
factors of the environment through the casual process called
perception.
Communication
Communication is the process of conveying information. It
involves a sender, message, and receiver. Effective
communication is crucial for understanding.
“Communication is any behaviour that results in an exchange
of meaning”-Amercian Management Association.
Importance of Communication in Organizational Behavior
• Teamwork
Communication fosters collaboration. Shared goals are
achieved through clear dialogue.
• Productivity
Efficient communication boosts productivity. Tasks are
completed faster with clear instructions.
• Conflict Resolution
Open communication prevents conflict. Misunderstandings are
addressed proactively.
 • Motivation
Effective communication motivates employees. Recognition
and feedback improve morale.
Nature of Communication
✓ Communication is a social and psychological activity. It
is inevitable.
✓ It is an on-going process and not an art or a time-based
event.
✓ It is said to be incomplete unless the receiver is able to
understand the message.
✓ It is a short-lived process, because as soon as the receiver
receives the message and understands it in the right
context, the communication process is completed.
✓ Not only human beings but birds, animals. etc., also
communicate. So, it is an universal phenomenon.
✓ Proper communication helps in eliminating
misunderstanding.
Barriers to Effective Communication
✓ Language Barriers
✓ Different languages create misunderstandings.
✓ Physical Barriers
✓ Distance, noise, poor technology; these hinder clear
communication.
✓ Perceptual Barriers
✓ Personal biases and assumptions affect interpretation.
 ✓ Emotional Barriers
✓ Stress, fear, anger; these emotions cloud judgment and
hinder communication.
✓ Strategies for overcoming Barriers
✓ 1.Two-way communication 2.Encouraging
participative approach
✓ 3.Use of appropriate language 4.Message
Credibility(proper flow of information)
✓ 5.Effective listening 6.Selection of
effective communication channel
✓ 7.Feedback
✓ Importance of Communication in Management
✓ 1.Basis of Decision-making and planning
✓ 2.Ensures continuous and efficient working
✓ 3.Ensures proper coordination
✓ 4.Helps in establishing effective leadership
✓ 5.Motivates and boosts morale
✓ 6.Ensures effective control
✓ 7.Provides job satisfaction
✓ 8.Facilitates democratic management
UNIT-IV GROUP BEHAVIOUR
A group is formed when two or more people interact,
deliberately to reach a common consensus(goal/agreement).
Group members are mutually dependent and are sensitive to the
needs of other members of the group.
There are groups in every organization and each group affects
the behaviour of its members.
“A group comprises, of two or more persons who interact with
on another in such a manner that each person influences and is
influenced by each other person”.-MARVIN SHAW
Nature of Group
1.Two or more Persons
2.Collective Identity
3.Interaction
4.Shared Goal Interest
Types of Groups
1.Primary and Secondary Groups
Primary groups is the central place for development and
maintenance of attitudes, values. Ex:Family and peer group.
Secondary groups consists of members who are usually large
and formally structured. Ex:Trade unions, membership
organizations such as National Trust etc.
2.Membership Groups and Reference Groups
Membership Groups Ex:Clubs, Cooperatives, Workers Union.
Reference Groups are those with which an individual
identifies or to which he likes to belong.Ex:Friends, Family
3.In-Groups and Out-Groups
In-Groups-A group of people who hold the existing values in
a society. Ex:Team members, Family members.
Out-Groups are the masses which are considered as secondary
or insignificant in the culture.
4.Interest and Friendship Groups
Interest groups who may unite to achieve a specific objective
with which they are associated.
Friendship groups are those people belonging to a particular
region or holding a particular point of view.
5.Nominal and Non-Performing Groups
In Nominal Groups, group members exchange their ideas in a
planned manner. Their different options are discussed in order
to select the best option.
Non-Performing Groups exist only on paper. They have some
goals, but they do not make effort to attain them.
6.Formal and Informal Groups
7.Temporary and Permanent Groups
Group Behaviour
It represents various circumstances in which people
communicate in small or large groups.
When group members gather at a given place and time to
achieve a particular motive, then similarities in their actions
represent the group behaviour.
A manager should have complete information about the
group behaviour as well as behaviour of the individual within
the group.
Determinants of Group Behaviour
1.External factors
2.Group Member’s resources
3.Group Structures
4.Group Processes
Stages of Group Development-This 5 stage group
development model given by TUCKMAN AND JENSEN.

TEAMS
A group is able to work together as a team only after all the
persons in the group know the roles of everyone.
Team is a small group which with members in regular contact.
Team Management is a process aimed at creating a successful
team and satisfied colleagues.
“A work team is a collection of people whose individual efforts
result in a level of performance which is greater than the sum
of their individual contributions”
-STEPHEN P.ROBBINS
Types of Team
1.Problem-Solving Teams
Here, the team members discuss problems, exchange
viewpoints, share experiences and attempt to solve the
problems.
2.Self-Managed teams or Autonomous work group
Group of employees(typically 10 to 15) who take on the
responsibilities of their former supervisors.
3.Cross-Functional teams
Employees from various departments like marketing,
production, engineering work together to reach a goal or
objective such as developing new products, reducing defects or
increasing the efficiency in a process.
4.Virtual teams
Also termed as Geographically Dispersed Team where people
are not sitting in the same physical office at the same time.
GROUP COHESIVENESS
Cohesiveness is a degree of attachment of the group towards its
members, the feeling of teamwork, and the eagerness of its
members to enforce their efforts.
“Group cohesiveness is defined as members’ attraction to the
group and its task”.-SHIN
Group Dynamics
Group dynamics refers to the “forces operating in groups”. It
emphasises on the following aspects of these forces-what gives
rise to them, the conditions that change them and the outcomes
they have.
Nature of group dynamics
1.Concerned with Group
2.Dynamic
3.Rigidity or Flexibility
4.Defines Effectiveness of Leader
5.Continuous process
Inter Group Problems in Organizational Group Dynamics
1.Competition for resources(Scarcity of the resources)
2.Task inter-dependence(mutual interdependence or one-way
dependence creates more conflict than if groups operate
independently)
3.Struggle for status(One group enhance its status and other
group believes it to be a threat)
4.Goal incompatibility(mismatch)
5.Time incompatibility
LEADERSHIP
It can be defined as the capability to inculcate confidence in
employees to achieve the objectives of the organization.
Leadership means the traits of an individual that allows him/her
to motivate others for attaining some specific objectives.
Effective management cannot take place without effective
leadership.
Leadership is the ability of influencing people to strive
willingly for mutual objectives”.-George R.Terry.
Nature of Leadership
1.Procedure of Influences 4.Tool for
motivation
2.Sensible and passionate 5.Ongoing
Activity
3.Comprehensive Blend of Art and Science 6.Linked with
circumstances
Leadership Styles
1.Autocratic Leadership Style-Dictator/One-man show.
In this style of leadership, all decisions are taken by the leader
only.
Strict autocrat
Benevolent autocrat
Manipulative autocrats
Participative Leadership Style
Here, Leader takes every decision in coordination with the team
members. This style is people-oriented and direct supervision
of the staff is not required.
Free Rein Leadership Style or Laissez Faire leadership
style
Here, the leader does not lead but leaves the major decisions on
the group itself. All the goals are directed by the group.
Traits and Qualities of Effective Leader
1.Inspiring
2.Problem-Solving Ability
3.Emotional Stability
4.Understanding Human Behaviour
5.Commitment towards Organizational objectives
Approaches/Theories of Leadership
Leadership is generally considered as one of the complex
concepts.
These leadership theories complement each other.
Trait Theories- Stogdill’s Trait Theory
- Ghiselli’s Personal Traits
Behavioural Theories- Managerial Grid
- Likert’s Four Systems
- Ohio State University Studies
- Michigan Studies
Situational/ContingencyTheories- Fiedler’s Model/Leadership
Effectiveness Model
- Situational Leadership
Model
- Path-Goal Theory
- Leadership
Participation Model
Trait Theory
According to this, good leaders follow both their mind and
heart. This theory believe that “Leaders are born and not
made”. Because these special traits are in-built in an individual
and cannot be acquired through any training.
A.Stogdill’s Trait Factors
According to Ralph Stogdill, leaders have various traits like
scholarship, intelligence, consistency, activeness, social
involvement, socio-economic position,
cooperation, perseverance, ability to find solutions, insight,
attractiveness and flexibility.
B.Ghiselli’s Personal Traits
According to Edwin Ghiselli, the personality and motivational
traits of an individual have a great impact in making the
leadership effective. He discovered few traits like
a.Supervisory ability, b.Intelligence, c.Self-Assurance,
d.Initiative
Behavioural Theories
A.Managerial Grid(R.R.Blake and Jane S.Mouton) -
Leadership style of an individual is greatly influenced by the
task-oriented and relation-oriented behaviour of that
individual.This influence varies depending upon the degree of
behavioural change.
Ohio State University Studies
According to Ohio Studies, ‘Consideration’ means the concern
of leader towards his followers. A leader has consideration in
his/her leadership behavior is supportive and friendly towards
his subordinates.
The main purpose of this research work was to determine
dimension and scope of leadership behavior. For this purpose,
Leader Behavior Description Questionnaire(LBDQ) was used
as an assessment tool to identify the way in which leaders carry-
out their tasks.
Michigan Studies
To identify the behaviour of leaders and the influence of their
behaviour on employee’s performance, the researchers of
Michigan University conducted several studies like
1.Employee-Centred Behaviour
2.Production-Centred Behaviour
A.Task-Oriented Behaviour
B.Relationship-Oriented Behaviour
C.Participative Leadership
Situational/contingency Theories
A good leader always tries to understand the requirement of the
situation and then take steps accordingly.
A.Fielder’s Model/Leadership Effectiveness Model
According to this theory, an adequate balance between the
leader’s style and the extent of authority exercised by the leader
in a particular situation results in effective group
performance.There are three key components of Fielder’s
model.
1.Leadership style
A.Task-Oriented Style
B.Human Relations Style/Lenient Style
Fielder established two types of ratings like a.Scores on least
preferred co-worker(LPC) and Scores on Assumed
Similarty(AS)between Opposites.
2.Situational Variables
a.Leader’s Position power
b.Task Structure
c.Leader-Member Relations
3.Relation between Leadership Style and Situational
Variables
Situation determines the effectiveness of a leadership style.
Situational Leadership Model
Paul Hersey and Kenneth Blanchard developed this theory
based on the maturational needs of leader’s followers. It is
otherwise known as life-cycle theory of leadership.
Path-Goal Theory
This theory was introduced by Robert House, a good leader
always support his followers by making accurate and adequate
information and resources available for them, so that they can
easily achieve their goals.
Power and Politics
“Power is defined as the ability to influence and control
anything that is of value of others”.-Stephen P.Robbins.
A kind of power is created when an individual has something
which is desired by other individuals.
Nature of Organizational Power
1.Dependency relationships
2.Power is certain
3.Unequal distribution(everyone is unique)
4.Resistance to change
5.Power can expand or contract
Power Tactics
For attaining power in an organization, there are a number of
tactics which can be utilized by individuals or groups. Some
tactics are
1.Creating Pressure to subordinates to complete the
task(dismissal)
2.Inspirational Appeals/expressing a desire
3.Legitimacy/confirmation with organizational rules and
politics
4.Exchange/welfare or approval in interchange for carrying out
an appeal.
Organizational Politics
The different manners in which various individuals and groups
try to secure and strengthen their position in the organization
through utilization of power can be referred to as organizational
politics. The nature of Organizational politics are:
1.Use of Power
2.Impact of others
3.Self-Serving
4.External to Job Expectations
Organizational Climate
An organization must have a proper organizational climate to
achieve its objectives effectively and efficiently.
“Organizational climate is a collective perception of the work
environment by the individuals within a common system”.-
James and Sells.
Dimensions of Organizational Climate.
1.Supervision
2.Problem Handling
3.Conflict Management
4.Communication
5.Decision-Making
6.Rewards Management
7.Innovation and Change
Factors affecting Organizational Climate
1.Overt Factors(external)
These factors are concrete, simple, direct and visible to all like
hierarchy, goals of organization, financial resources,
performance standards adopted.
2.Covert Factors(internal)
These factors fully dependent on culture like value and norms,
attitude, satisfaction, feelings, supportiveness.
Importance of Organizational Climate
A.Enhances employee performance
B.Builds strong relationship
C.Indicates success or failure
D.Managers can get their work done easily
Organizational Culture
✓ It refers to the personality or the traits of an organization.
✓ It defines what type of people will prefer working in an
organization and who will be successful
✓ It refers to the common values and beliefs that prevail in
an organization and it is the surrounding in which an
employee and organization connects with each other.
Characteristics
1.Socially Shared
2.Facilitates communication
3.Long-term
4.Growing
5.Learned
Factors Influencing Organizational Culture
1.Traits of Individuals in an organization
2.Nature of Employment Relationship
3.Organizational Structure Design
4.Organizational Ethics
Managing Organizational Culture
A.Establish Values
B.Create Vision
C.Initiate Implementation Strategies
D.Reinforce Cultural Behaviours
Conflict
Conflict refers to demonstration of anger, negative behaviour,
violence etc.
“Conflict is defined as opposition or dispute between persons,
groups or ideas”
-Joe Kelly.
Sources/Bases of Conflict
1.Organizational Change(different opinions)
2.Personality Conflict
3.Difference in values
4.Danger to status
5.Lack of trust
6.Job related issues
Types of Conflict
Individual Level Conflict
An individual works in order to fulfil his various needs. When
an organization fails to fulfil the needs of its employees,
conflict arises.
Intra-personal-It is associated with Psychological in nature
and with the goals of an individual. The reasons for conflict are:
Conflict originating from goals, originating from frustration,
originating from role.
Inter-personal-When two people have difference of opinion
like information deficiency, role incompatibility,
environmental stress, there arises conflict.
Group Level Conflict
Groups are found in every organization and have the tendency
to affect the behaviour of its members.Conflict arises among
the group members or even between the groups.
Intra-group-conflict within the group.
Inter-group-Conflict between two or more groups.
Organizational Level Conflict
Conflicts arise in different manners.
Intra-group-Inside the organization
Inter-group-Conflict between different organizations
Stages of Conflict
Latent Conflict(Stage 1)
Conflict may arise when two or more parties are dependent on
each other for the accomplishment of their goals. CHANGE is
usually the cause of latent conflict.
Perceived Conflict(Stage 2)
Here, the team members come to know about the problem but
they are not able to believe it actually. The team members start
worrying as to what will happen next.
Felt Conflict(Stage 3)
Here, an atmosphere of stress and irritation begins to develop
and individuals build up an emotional obligation towards their
responsibilities.
Manifest Conflict(Stage 4)
When the parties plan and operate in a manner that is solely
beneficial to them, thus hampering the accomplishment of
other party’s objectives.
Conflict Outcome(Stage 5)
It can be favourable or unfavourable for one or both the parties.
At this stage, it becomes complex to find a logical solution. So,
if the conflict is recognised in its initial stage, it becomes easier
to obtain a win-win solution thereby feelings of irritation and
stress can be avoided.
Effects of Conflict
Positive Effect
1.Conflict as Motivator
2.As Need satisfier
3.Brings variety in life
4.Creates Understanding
Negative Effect
1.Drop in productivity
2.Affects the quality of work
3.Lack of Direction
4.Insubordination(Weak Management)
Management of Conflict
Conflict in the workplace is the current reality in most of the
situations.
Both personal and professional development can be achieved if
conflicts are resolved effectively.
Self-awareness about conflict modes, creating a set-up for the
conflict management, conflict communication skills, and
developing various skills for conflict resolution are the part of
CONFLICT MANAGEMENT.
Procedure for Resolution of Conflict
1.Preliminary Step-Identification
2.Diagnosing the Issue-Analysing
3.Conflict Handling Modes
a.Controlling conflict
b.Mutual problem-solving
c.Allowing parties to prove their point
According to Kenneth Thomas, certain styles, tactics, or
strategies could be used for handling conflicts.
1.Avoiding(Withdrawal)-Low assertiveness regarding one’s
own interest and low cooperation towards other person’s
interest.
2.Accommodating(Smoothing)-Concern about common
benefits and ignore their differences.
3.Competing(Dominance)-Conflict as a complete win-lose
situation .Here, one party holds excessive power and does not
need to work with anyone.
4.Compromising-Equal amount of assertiveness as well as
cooperation is required.
5.Collaborating-It is a time consuming process and requires a
lot of practice to be effective. Ultimately, it results in enhanced
efficiency and success.
Organizational Change
It means change in the behavior and mindset of employees,
modifications in the technology, surrounding environments and
rules and regulations of the organization.
All organizations have to draw up and keep ready a
contingency or emergency plan to cope with forced or
unforeseen changes.
“Organizational change is the implementation of new
procedures and technologies intended to realign an
organization with the changing demands of its business
environment or to capitalise on business opportunities”.
-Organization Development and Research Organization.
Types of Organizational Change
Importance of OC
1.Retention of Employees
2.Accquisition of Prospect Customers
3.Enhances Organizational Performance
4.Utilising Training and Development Opportunities
effectively
Organizational Development
The set of knowledge and practices which improves the
performance of the organization and individual’s growth is
termed as organizational development.
It aims to change the thinking, outlook, values and composition
so that it may adjust with the technology and cope up with fast
changes.
“Organizational development includes efforts to improve
results by getting the best from employees,individually and as
members of working groups”.
-George R.Terry
OD Techniques
1.Coaching and Counselling Activities
2.Life and Career Planning Activities
3.Team Building Interventions
4.Education and Training Activities
Significance of OD
1.Ensures optimum utilization of Individual’s Potential
2.Assists in attainment of objectives
3.Develops a challenging environment
4.Helps personnel in effective performance of tasks
5.Helps people to influence organization through work
6.Brings Organizational change
Unit-V Emerging Aspects of Organizational Behaviour
Comparative Management Styles and Approaches
The common purpose of each and every practice is to increase
the output by ensuring efficient utilization of a firm’s resources.
The culture of a particular region also greatly influences the
international management practices.Different management
practices of India,Japan,U.S.A and China are prominent.
Japanese Style Management
In Japanese Management, more emphasizes is given to
organizational culture and philosophy which results in proper
decision-making, long-term planning, mutual objectives,
proper two-way communication, creating harmony and loyalty
between management and jobs.
The people of Japan have a strong belief, perception, and
workplace behaviour towards high productivity, innovation
and rapid industrialisation.
Features of Japanese Management Style
1.Lifetime Employment
2.Seniority system
3.Continuous training
4.Emphasis on group work
5.”Ringi” System
6.Good Benefits for employees
Limitations
a.Decision making based on consensus(agreement)
b.Waste of Individual talent
c.Focus on traditional methods
Amercian Style of Management
This style is characterised as individualistic, because American
managers are responsible for their decisions and thought
process.
Here, the boss or the top-executive is ultimately responsible for
the outcomes of decisions, and individuals are not ready to take
responsibility when there are adverse results.American
managers are more prompt towards rejecting the proposals and
opinions of their subordinates.
Features
1.Long term strategic planning
2.Creativity and Innovation
3.Identification with their profession
4.Individualism in Ledership
Limitations
1.Continuous team breaking
2.Short-term
3.Dysfunctional internal competition-strong competition
because of high reward system.
Chinese Style Management
China is regarded as the “emerging tiger” in today’s globalised
economy. China does not have a unique management style but
adopts a perfect blend of Japanese and American Style of
management.
In Chinese firms, subordinates view their manager as a father,
who expects faithfulness and compliance from them.
China lacks good quality and experienced managers.
Features
1.Human and Family Centeredness
2.Centralization of Power
3.Lack of formal hierarchies
Limitations
1.Lack of quality
2.Lack of trained leadership
3.Lack of management skills
4.Lifestyle,Customs and Behaviour
Indian Style Management
Indian management is greatly influenced by its hierarchical
society. A level of micro-management which gives the best
outputs is needed for managing people in India.
India’s socio-cultural environment is considered to be unique.
This environment includes company’s norms, managers’
behaviour, expectations is explained through their personas and
peculiarities. Ex:TATA, Birla and other family promoted
Indian companies work with professional managers.
Features
1.Managers as Authorities
2.Team Management and Development
3.Crisis Management
Limitations of Indian Management
a.Managing knowledge workers
b.Managing technological challenges
c.Developing Leadership
d.Managing the dynamic changes
e.Work-life balance
f.Rewards and promotions
Comparision
Organizational Creativity
Creativity is an on-going process and is added advantage to
entrepreneurs in their capabilities to invent something new.
Entrepreneurs feel motivated by the fact that his efforts from
start to the scratch go through the entire process and obtain the
desired result.
“Creativity as the act of turning new and imaginative ideas into
reality. Creativity involves two processes-thinking, then
producing”-LINDA NAIMAN.
Elements of Creativity
A.Conceptual fluency
B.Conceptual flexibility
C.Originality
D.Complexity orientation
CREATIVE PROCESS
Idea Germination- The seeding stage of a new idea Recognition
Preparation – Conscious search for knowledge Rationalisation
Incubation- Subconscious assimilation of information
Fantasising
Illumination- Recognition of idea as being feasible Realisation
Verification- Application or test to prove idea has value
Validation
Importance of Creativity
1.Ability to discover new solutions
2.Increase efficiency
3.Enhances knowledge
4.Assists in exploring opportunities
5.Offers leadership
6.Attains new solutions for difficult problems
7.Increases productivity and drives progress
INNOVATION
It refers to the ability of a person to develop something new
based on one’s acquired knowledge. An entrepreneur needs to
be creative in order to innovate.
Creativity is a preliminary requisite of innovation and one of
the key functions of innovation is problem solving.
“Innovation is a new idea applied to initiating or improving a
product, process or services”-STEPHEN P.ROBBINS
Innovation Process
1.Understanding the problem-Gathering Information,
Clarifying the Real Problem, Setting Innovation Goalposts.
2.Imagination-Finding Stimuli, Uncovering Insights,
Identifying Ideas
3.Actions and Implementation-Developing the Innovation
Roadmap, Gaining Commitment, Implementing the Innovation
Roadmap
Organizational Behavior Across Cultures
By understanding the organizational behavior across the
various cultures, one can have a better insight about the
attitudes, behavior and interpersonal relationship which exists
among the clients, suppliers, workers, managers and various
partners belonging to various countries.Cross-culture skills
must be managed efficiently by the global organizations both
inside the organization and between the organization and
outside environment.
Factors Constituting Global and Cultural Diversity
Conditions Affecting Cross-Cultural Operations
1.Social Conditions
Lack of familiarity with new technology or complicated
organizations in the local culture is one of the social condition
that affects the multinational operations.
2.Legal and Ethical Conditions
Differences in judicial systems among nations in terms of case
disposition time and fines for seemingly minor offences may
also affects the multinational operations.
3.Political Conditions
Because of the instability of the host country’s government,
multinational operations may get affected.
4.Economic Conditions
Conditions like low per capita income and rapid inflation may
greatly affect the operations of multinational organizations.
Managing International Workforce
It is nothing but managing human resources at global level is
the main concern of International Human Resource
Management(IHRM)
The manner in which human resources are managed by
international organizations across various national
surroundings is analyzed by IHRM.
Objectives of IHRM
1.To minimise the threats to international human resource.
2.To avoid the culture-related risks
3.To sustain local responsiveness
4.To be able to transfer learning across the units that are
internationally dispersed
Some of the common factors that influences IHRM are Cultural
factors, Economic factors, Legal-Political factors,
Ways to manage International Workforce
1.Deals with Changing demographics
2.Understand local cultures
3.Build global leaders
4.Maintain local laws and regulations
Productivity and Cultural Contingencies
Productivity refers to the attainment of both quality and
quantity of the results with the optimum utilisation of inputs.
The culture of any particular nation may greatly affect the
productivity, is referred as cultural contingency.
In this, managers must focus their attention after they arrive in
a host nation on combining technical techniques with the local
cultures involved.

Cross-Cultural Communication
Inter-cultural communication can be defined as a subject that
observes flow of information between people from different
cultural origins and backgrounds.
It aims at understanding the various common and diverse
methods through which people belonging to different cultures
communicate with one another.
“Cross-cultural communication is the capacity to interpret
verbal and non-verbal communication, and custom in cultural
styles different from our own”-BENNETT.
Obstacles to Effective Cross-Cultural Communication
Emerging trends such as internalization, downsizing, mergers,
joint ventures brings major transformations bring new
challenges with resect to their communication structures. Some
obstacles are
1.Lack of Communication
2.Language
a.Using inappropriate languages
b.Foreign language
3.Culture
4.Organization Culture
5.Different Attitudes toward conflict
6.Different Approaches to competing tasks.
7.Difference in decision-making styles
8.Different approaches to knowing
Management of Diversity/Managing Workforce Diversity
Here, the managers should not apply same techniques in
treating all the employees.
The effective management reduces various challenges in the
workplace and utilizing the advantage of diversity with the
help of diversity management.
After proper management of the workforce diversity, there
will be good personnel relations, pleasant work culture and
effective communication in the organization.
Techniques of Managing Workforce Diversity
1.Increasing awareness of the significance of diversity among
staff and promote it.
2.Behave towards everyone as Individuals.
3.Seeking the Opportunities to learn.
4.Having enough time for casual interaction during team
meetings.
5.Continuous evaluation of work environment.
6.Resolve Issues immediately.
7.Promote diversity(variety) management training.