ORGANISATIONAL BEHAVIOUR

What Is OB?

OB is a field of study that investigates the impact that individuals, groups and structures have
on the behaviour in general, within the organisation.

It is basically concerned with the study of the effect of human behaviour on an organisation
and also on the effect of the organisation on the human beings.

Both individuals and the organisation are affected by the environment (internal and external).
Due to this constant interaction with the environment, the work culturte, climate and
effectiveness of the organisation is affected. It is a continuous process.

The main aim of analysing the behaviour in an organisation is to apply this knowledge to
improve an organisations effectiveness in achieving its goals.

Nature of OB

1. Behavioural approach to management

studies the behavioural aspects of the people working in the org---it proves to be an
imp & significant tool to the management so that it can take appropriate decisions.
2. Distinct field of study
Like other fields, it contains a specific body of research, theory and application
associated with a growing concern for people in workplace.
3. Practical orientation
OB is not just in theory. It has practical value as well.
By understanding the theories and research experiments, it can help us to effectively
solve human problems in an organisation.
This is because OB is a tool for predicting human behaviour in various work related
circumstances.
4. Multidisciplinary
OB is highly influenced by other fields such as behavioural sciences and social
sciences.
Some of them are Psychology, Sociology and Anthropology.
5. Satisfaction of individual and organisational needs
Every employee in the oraganisation wants to fulfil his needs through various org.
activities and social interactions. At the same time it is highly important for the org to
achieve its goals effectively.
OB bridges and manages both the needs
6. Three levels of analysis
Provides analysis of individual behaviour, group behaviour & the behaviour of the
org.
This stimulates rational thinking about people.
 7. As a Science
OB relies on using scientific methods to form & apply theories. Scientific method
involves:
Making predictions
Making observations to measure predictions
Using results to explain certain relationships

CONTRIBUTING DISCIPLINES OF OB

OB is heavily influenced by many behavioural sciences and social sciences. Prominent

among them are:

1. Psychology :
It is the science of behaviour among human& animals.
It tackles intra individual behaviour like motivation, perception, personality etc.
Now a days, there is a separate branch of industrial psychology dealing in human
relations.
Psychological study helps in training for leadership, performance, work stress etc.
2. Sociology:
Deals with group or inter personal behaviour.
Studies how people interact and communicate with each other.
Encourages the study of group dynamics, communication, formal & formal org.
structure etc.
3. Anthropology:
Deals with work and culture of a group of people.
Culture has a large influence on human, on how they work, learn and behave.
Helps in the study of values, work culture and attitude.

Besides these three disciplines, OB is also affected by :

Economics: impact of decisions and policies
History : Case studies to improve decision making
Political : Effect of political decisions, movements and policies on employees and org.

Personality System Culture System

Psychology Anthropology
Integration of
Behavioural Sciences

Sociology

Social System
FACTORS AFFECTING OB

1. Individuals :
There are many individuals in the organisation like employees, owners, managers etc
They all have different perceptions, attitudes and behaviour.
In total they affect the organisations working and environment.
2. Groups:
People may form groups in the org in the form of formal or informal groups.
The nature of groups is dynamic.
Group performance is always better than individual performance because there is a
synergy of different individuals.
management must understand the working of groups to achieve org goals.
3. Org Structures:
Ind. & groups operate in a formal structure within the org due to which they all have
different roles and relationships with each other.
Due to this division of work, everyone is dependent on each other to complete the org
goals.
4. Technology:
Technological improvements result in better workforce and productive efforts.
Communications and interactions between the individuals can also be improved.
Information can be processed and transferred faster.
Hence technology has a significant effect on the behaviour of people on an org.
5. Environment:
Modern Org do not operate in isolation.
There is a constant interaction with the environment which includes political,
economic & social.
Changes in the env may compel management to bring changes in the org.

MANAGING THREE LEVELS OF BEHAVIOUR

OB provides understanding of human behaviour in all directions in which human beings

interact. Thus OB can be understood at following levels:
1. Individual Level:
Human behaviour is complex in nature and is affected by many factors like psychological,
social, culture etc. OB analyses these factors for systematic understanding of human
behaviour.
2. Interpersonal Level:
OB provides means of understanding interpersonal relationships in the org.
Role Analysis, Transaction Analysis are some methods which provide such understanding.
3. Group Level:

Research in group dynamics has contributed vitally to OB and has showed how group
behaviours in terms of membership of goals, procedures, communication patterns work.
These research results are very important for organisational morale & productivity.

4. Intergroup Level:

An org is made up of various groups which develop complex relationships.

Understanding the effect of group relationships is very important for managers.
OB provides a means to understand and achieve good corporate group relationships through
interactions, rotation of members, avoidance of win-lose situations & focus on org objectives.

MANAGEMENT CHALLENGES

The world is changing dramatically and is in the process of a complete transformation. There
are lots of improvements and advances everyday in every field. That is why it is said that
change is the only permanent aspect of nature.
The concept of self sufficient nations is long gone and this is an era of globalisation. The
management is bound to cope up with such changes and form policies and startegies to adapt
to the new environment.
Due to constant changes, managers of behavioural science face the following challenges:
1. Challenges of Globalisation :
Globalisation means the ability to produce and sell goods and services in global markets in
open competition with others.
the managers would be required to grapple with the globalisation of business and face the
problems of unfamiliar laws, language, new practices, fierce competition, overseas work
ethics etc.

2. Challenge of Information Age:

The world has entered the information age surpassing the industrial age which is due to the
fast development in the field of IT.
To meet the challenges of Information age, orgs are redefining their mission, objectives,
strategies, critical success factors (CSFs) and the structure of the org in general.

3. Challenges of Quality Revolution:

In the recent times, the importance of quality has rocketed significantly. This is the main
focus when it comes to consumer satisfaction.
Therefore, orgs are more conscious about quality now and aim to increase the productivity of
production. For this, they have laid several factors for employees to consider while producing
and marketing the companys product.

4. Challenge of Managing Workforce Diversity:

Workforce diversity is observed in many forms in an org, be it gender based, skills based, age
based, etc. There are two imp trends lately observed : a) increasing aspirations of employees
and b) increasing mobility of personnel.
With these changes in the picture, an org has to look beyond the traditional methods of
satisfaction( such as job security, remuneration etc) and look for new ones.

5. Empowerment of Workers:
Empowerment is the process of reorientation of all forces, values and beliefs so that an org
supports & liberates the individual rather than diminish their range of thought and action.

6. Development of Work Ethics and Culture:

Development of and maintaining the orgs work ethics is one of the most significant
challenges.
This is done to ensure that the standards set are duly met. At the same time it is imp to
modify and tweak the ethics according to changing times but still focus on group and org
goals than individual goals.

UNDERGOING A PARADIGM SHIFT:

Paradigm means a broad model, a framework, a way of thinking, or a scheme of

understanding reality. The impact of internationalization, information technology, total
quality and diversity has lead to a Paradigm shift in organizations. In other words, as the
environment has changed tremendously and these factors have also affected the type and
style of management in organizations, so, for todays and tomorrows organizations and
management, there are new rules with different boundaries requiring new and different
behavior inside the boundaries for organizations and management to be successful. And these
changes and transformations in the management and structures of the organizations are called
the Paradigm Shift

So, the factors like diversity, total quality, information technology, downsizing,
internationalization and globalization have brought a paradigm shift in the organizations all
over the globe.
EXAMPLES:

1. At first most organizations used type writers and conventional approaches but due to the
advancements in the field of computers, the organizations and firms felt a need to change
their approach and replace type writers with computers for word processing due to their many
benefits and advantages.

2. Similarly, management systems had to be changed and a need was felt to leave the useless
old systems aside and move to new approach to management systems. These new
management techniques makes use of the technologies like computers an many other new
equipments. So, this shift or transfer from one set to another is called a Paradigm shift.

INDIVIDUAL BEHAVIOUR AT WORK

The behaviour of each individual is influenced by several factors

Every individual has particular motives, ambitions, perceptions and abilities.

To understand the human behaviour, a careful study of all the factors is necessary.

Factors affecting individual behaviour

1. Personal Factors
2. Environmental Factors
3. Organizational Behavior

1. Personal factors
 Biographical characteristics
Personal characteristics such as age, gender, and marital status that are objective
and easily obtained from personnel records.
Biographical characteristics are generic in nature and are inherited.

a) Physical characteristics-
These characteristics are related to height, skin, complexion, vision, shape and
size.
b) Age-

The relationship between age and job performance is an issue of increasing

performance.

Psychologically, young people are expected to be more energetic, innovative

& risk taking.Whereas older people are conservative and less adaptable.

c) Gender -

Studies have proved that there are few, if any, important differences between
man and woman that will affect their job performance.

d) Religion -

Religion and religion based cultures play an important role in determining

some aspects of individual behavior.

e) Marital status -

Married people tend to become and show more mature behavior at work than
those that are unmarried. But there is no significant correlation on marital
status and work performance.

f) Experience :-

It is considered to be a good indicator of employee performance.

There is a positive relationship between experience and job performance.

g) Intelligence:-

Whether it is an inherited trait or acquired trait, intelligence affects the

performance positively.

h) Ability:-

Ability is the criterion used to determine what a person can do and at what
level can he perform best.

Learned characteristics
 a) Personality:- Personality is dynamic concept describing the growth and
development of a persons whole psychological system.
b) Perception:- Perception is the viewpoint of one person interprets situation.
c) Attitude:- Attitude expresses an individuals positive or negative feeling
about some object.
d) Values:- Values carries an individuals ideas as to what is right and what is
wrong.
Values are global beliefs that guide actions and judgments across a variety of
situations. Values represents basic convictions that a specific mode of conduct
is personally or socially preferable to an opposite mode of conduct.

Environmental factors
The external environment is known to have a considerable impact on a persons
behaviour. A brief description of the external factors follows:-

a) Employment level:-The employment opportunities available to individuals,

the wages payable to them, the general economic environment affect the
individual behaviour to a large extent, either directly or indirectly.
b) Wage rates:- The major considerations of every employee working in any
organization is his wages. Monetary factor is the major factor affecting the job
satisfaction of the worker.
c) Technological development:- Technological development is having the
impact on the job opportunities and performance levels.
d) socio-culture factor :- the social environment of an individual includes his
relationship with family members, friends, colleagues, supervisors and
subordinates. The behaviour of other people not with the individual, but in
general, is also a part of his social environment.
e) Political factors :- political environment of the country will affect the
individual behaviour not directly, but through several other factors. Like stable
political situation means better employment and high level of capital
investment.
f) Legal environment:- Rules and laws are formalized and written standards of
behaviour.

Organizational factors
Individual behaviour is largely affected by a variety of organizational system and
resources.
a) Physical facilities:- the physical environment at a work place is the
arrangement of people and things which has a positive or negative influence on
people. Some of the factors which affect the individual behaviour are noise
level, heat , light, ventilation, nature of job, office furnishing, number of
people.
b) Organizational structure and design:- these are concerned with the way in
which different departments in the organizations are set up, what is the
reporting system, how are the line of communications are set among different
level of organizations.
 c) Leadership:- the system of leadership is established is established by the
management to provide direction, assistance, advice and coaching to
individuals.
d) Reward system:- the behaviour and performance of the individuals is also
influenced by the reward system established by the organization to compensate
their employees.

PERCEPTION

Stephen P. Robins has defined perception as Perception may be defined as a process by

which individuals organize and interpret their sensory impressions in order to give meaning
to their environment.

People often see the same phenomenon differently both with the organizational
context and outside the organization. For example, in relation to a strike, a manager
may perceive the immediate cause of the strike as trivial, while the workers may see it
as very serious.
Perception is the important cognitive factor of human behaviour. It is the chief
mechanism by which people come to know about their surrounding milieu. Thus, it is
the unique interpretation of the situation and not necessarily the exact recording of the
situation.

Perception and Sensation :

There has been a great deal of misunderstanding about the relationship between
sensation and perception. The physical senses vision, hearing, touch, smell and taste
are different from the perception.
The sensation essentially deals with very elementary behavior that is largely
determined by physiological functioning. Perception on the other hand, is much more
complex and broader than sensation.
It is virtually a cognitive, psychological process of sensing, filtering and modifying the
raw data. As sensation plays an important role of people in their private lives,
perception plays a crucial part in organizational life.

Factors influencing Perception:

Perceptual Process:

1. Receiving Stimuli Picking up all external and internal factors.

2. Selecting Stimuli Selecting the stimuli which will be most important
This is where the introduction of new employees is important, they need to
be presented in a way where the selected stimuli are positive.
3. Organising Grouping and selecting which are the perceptions to keep.
 4. Interpreting Fundamental Attribution Error, stereotyping, Halo Effect and
projection.
5. Response The perception is then turned into attitudes, motivation,
feelings and beliefs, which will change the behaviours of the individuals

Perceptual Errors:

Similarity error: People are predisposed towards those having similar traits, socio-
economic-cultural background.
Contrast error: People tend to compare among the available resources and thus arrive
at a conclusion that might be far from the objective reality.
Race/gender/age bias: People's perception may be tempered by their prejudices vis--
vis race, gender, and age.
First impression error: People may hold a long-term view about a person or thing
based on first impression.
Perceptual defense: Once established, a person's way of viewing the world may
become highly resistant to change. Sometimes, perceptual defense may have negative
consequences. This can result in manager's inability to perceive the need to be creative
in solving problems.
Stereotyping: It is the belief that all members of a specific groups share similar traits
and behaviour. However, because each individual is unique, the real traits of the person
are generally quite different from those that stereotype would suggest.
Halo effect: Under halo effect, a person is perceived on the basis of a single trait. It
generally occurs during performance appraisal where the supervisor rates an employee
on the basis of only one trait e.g. intelligence, punctuality, cooperativeness appearance
etc.
Projection: It is the tendency of seeing one's own traits in others. Thus, individuals
project their own feelings, personality characteristics attitudes, or motives onto others.

ATTRIBUTION

The ways in which people come to understand the causes of their own and others
behaviors
Most often an unconscious process
People are constantly attributing the behavior of themselves and others to either internal
(i.e., personal) or external (i.e., situational) causes.

Factors influencing internal and external attributions.

Distinctiveness consistency of a persons behavior across situations.

Consensus likelihood of others responding in a similar way.
 Consistency whether an individual responds the same way across time.

Common Attribution Errors:

1. Fundamental Attribution Error the tendency to underestimate the influence of

external factors and overestimate the influence of internal or personal factors in the
behavior of others
2. Self-serving Bias the tendency for individuals to attribute their own
successes/achievements to their good inner qualities (internal factors) whereas they
attribute their failures to adverse factors within the environment.

Techniques for effectively managing perceptions and attributions.

Be self-aware.
Seek a wide range of differing information.
Try to see a situation as others would.
Be aware of different kinds of schemas.
Be aware of perceptual distortions.
Be aware of self and impression management.
Be aware of attribution theory implications

ATTITUDE:

Persistent tendency to feel and behave in a particular way towards some object.
Attitude and behavior are two quite different things. Attitude is a person's inner thoughts and
feelings, while behavior is usually an outward expression of attitude, but the two are not
always related.

Characteristics of Attitudes

They tend to persist unless something is done to change them.

They can fall anywhere along a continuum from very favorable to very unfavorable.
They are directed toward some object about which a person has feelings and beliefs.

COMPONENTS OF ATTITUDES:

Attitudes structure can be described in terms of three components.

Affective component:
This involves a persons feelings / emotions about the attitude object. For example: I am
scared of spiders.
Behavioral (or cognitive) component:
The way the attitude we have influences how we act or behave. For example: I will
avoid spiders and scream if I see one.
Cognitive component:
This involves a persons belief / knowledge about an attitude object. For example: I
believe spiders are dangerous.

CHANGING ATTITUDES:

Employees attitudes can be changed and sometimes it is in the best interests of

managements to try to do so. For example, if employees believe that their employer does not
look after their welfare, the management should try to change their attitude and help develop
a more positive attitude in them.

However, the process of changing the attitude is not always easy. There are two major
categories of barriers that come in the way of changing attitudes:

Prior commitment when people feel a commitment towards a particular course of action
that have already been agreed upon and thus it becomes difficult for them to change or
accept the new ways of functioning.
Insufficient information also acts as a major barrier to change attitudes. Sometimes
people simply see any reason to change their attitude due to unavailability of adequate
information.

SOME OF THE POSSIBLE WAYS OF CHANGING ATTITUDES

Providing New Information. Sometimes a dramatic change in attitude is possible

only by providing relevant and adequate information to the person concerned.

Use of Fear. Attitudes can be changed through the use of fear. People might resort to
change their work habit for the fear of unpleasant consequences..

Influence of friends and peers A very effective way of changing ones attitude is
through his friends and colleagues. Their opinion and recommendation for something
often proves to be more important. If for example, they are all praise for a particular
policy introduced in the work place, chances are high that an individual will slowly
accept that even when he had initial reservations for that.

Co-opting. to change the attitude of somebody who belongs to a different group, it is
often becomes very effective to include him in your own group. Example, the union
leader who are against any management decision, can be the person who takes active
initiative in implementing a new policy when he had participated in that decision
making process himself.

PERSONALITY

The overall profile or combination of characteristics that capture the unique nature of a
person as that person reacts and interacts with others.
Combines a set of physical and mental characteristics that reflect how a person looks,
thinks, acts, and feels.

Nature:

 set of traits & behaviors that characterize an individual..

 Personality has both internal (thoughts, values & genetic characteristics that is
inferred from observable behaviors) & external (observable behaviors) elements.
 Personality of an individual is relatively stable in nature.
 Personality is both inherited as well as it can be shaped by the environment.

Theories:

1. Myers-Briggs Type Indicator (MBTI)

A personality test that taps four characteristics and classifies people into 1 of 16 personality
types.

Example:

Extroverted vs. Introverted

Extroverted individuals are outgoing, sociable, and assertive. Introverts Extroverted
are quiet and shy.
Sensitive vs. Intuitive
 Sensing types are practical and prefer routine and order. They focus on details.
Intuitive rely on unconscious processes and look at the big picture.
Thinking vs. Feeling
Thinking types uses reason and logic to handle problems. Feelings types rely on their
personal values and emotions.
Judging vs. Perceiving
Judging types want control, and prefer their world to be ordered and structured.
Perceiving types are flexible and spontaneous.

2. The Big Five Model :

3. Personality Types:

Type As

1. are always moving, walking, and eating rapidly;

2. feel impatient with the rate at which most events take place;
3. strive to think or do two or more things at once;
4. cannot cope with leisure time;
5. are obsessed with numbers, measuring their success in terms of how many or how
much of everything they acquire.

Type Bs

1. never suffer from a sense of time urgency with its accompanying impatience;
2. feel no need to display or discuss either their achievements or accomplishments;
3. play for fun and relaxation, rather than to exhibit their superiority at any cost;
4. can relax without guilt.

4. Locus of Control (Julian Rotter)

Internal locus of control

Life outcomes are under personal control

Positively correlated with self-esteem
 Internals use more problem-focused coping
External locus of control

Luck, fate, chance, and powerful others control behavior

People with an internal locus of control have better control of the behaviour and tend to be
more active politically and socially.

Learning in Organizations:

Definition: A relatively permanent change in knowledge or behavior that results from

practice or experience.

Involves change
Is relatively permanent
Is acquired through experience

Theories of Learning:

Classical Conditioning
It is a type of conditioning in which an individual responds to some stimulus that would
not ordinarily produce such a response.
Key Concepts
Unconditioned stimulus
Unconditioned response
Conditioned stimulus
Conditioned response
Operant Conditioning
A type of conditioning in which desired voluntary behavior leads to a reward or
prevents a punishment.
Key Concepts

Reflexive (unlearned) behavior

Conditioned (learned) behavior
Reinforcement
Social-Learning Theory
People can learn through observation and direct experience.

Key Concepts

Attentional processes

Retention processes
Motor reproduction processes
Reinforcement processes
Reinforcement:

It Increases the probability that a desired behavior will occur again in the future by applying
consequences that depend on the behavior in question.

Positive Reinforcement: The administration of positive consequences to workers

who perform desired behaviors.
Pay, promotions, interesting work, praise, awards
Negative Reinforcement: The removal of negative consequences when workers
perform desired behaviors.
Nagging, complaining
Punishment
Applying an undesirable condition to eliminate an undesirable behavior.
Extinction
Withholding reinforcement of a behavior to cause its cessation.

RIGHT AND LEFT BRAIN CONCEPT:

The identification of left-brain versus right-brain functions illustrate some very interesting
differences, as outlined below.

Left-Brain behaviors
Right-Brain behaviors
Sequentially processing information
Can problem solve through intuition
Systematic problem solver
Remembers images and pictures
Thinks in rational and analytical
Learns through exploration
terms
Summarizes rather than outlines
Identifies with details and facts
Subjective and intuitive in thinking
Objective in thought
Random in thought
Problem solves through logic
Looks at the whole rather than individual
Looks at the parts rather than the
parts
whole

EMOTIONAL INTELLIGENCE

Emotional intelligence (EI) refers to a assortment of non-cognitive skills, capabilities,

and competencies that influence a persons ability to cope with environmental
demands and pressures.
It is composed of five dimensions: self-awareness, self-management, self-motivation,
 empathy, and social skills. Several studies show that EI can play an important role in
job performance, especially in jobs that demand a high degree of social interaction.
Traditional approaches to decision making in organizations have emphasized
rationality and downplayed or ignored the role of emotions. Yet, it is nave to assume
that decisions are not influenced by ones feelings. Indeed, people use emotions as
well as rational and intuitive processes when making decisions.

MOTIVATION:
It is defined as the driving force that accounts for an individuals intensity, direction and
persistence of efforts towards attaining a goal.

The Motivation Process:

An unsatisfied need creates tension

that stimulates the drive within an
individual to generate a search
behaviour to fins particular goals,
if attained, will satisfy the need
and reduce the tension (Robbins
and Decenzo, 2004 p.280).
Content Theories:

Maslows hierarchy of needs

Herzbergs Two-factor theory

Maslows Need Theory:

Implications of Maslows theory in the workplace:

Not everyone is motivated in the same way.

Motivation and need satisfaction are anticipatory in nature.

Managers must seek to guide and direct employee behaviour to meet the
organizational needs and individual needs simultaneously.

Herzbergs Two-factor Theory:

Job satisfaction and job dissatisfaction are created by different factors.

 Hygiene factors involve the
presence or absence of job dissatisfiers. When the hygiene factors are present, the
individual is not dissatisfied; however when they are absent the individual is
dissatisfied. In any case hygiene factors to not motivate. Eg- Pay and security,
Company policies, Interpersonal relationships
Motivators influence satisfaction
and consequently motivate the person from within as he or she achieve the higher-
level needs of achievement, recognition, and personal growth. Eg- Achievement,
Recognition, Responsibility, Personal growth

Implication of Herzbergs theory:

Providing the hygiene factors will

eliminate employee dissatisfaction but will not motivate workers to high levels of
achievement. Recognition, responsibility, and the opportunity to achieve personal
growth will promote satisfaction and employee performance.
The benefit of this theory has
implication for the effect of company systems and job design (how work is arranged
and how much employees control their work) on employee satisfaction and
performance.

Process theories:

Expectancy theory
Equity theory
Goal setting theory

Adams equity theory

 Developed by J. Stacy Adams.

 W hen people believe that they have been treated unfairly in comparison to others,
they try to eliminate the discomfort and restore a perceived sense of equity to the
situation.
 Perceived inequity.
 Perceived equity.

People respond to perceived negative inequity by changing

 Work inputs.

Rewards received.

Comparison points.

Situation.

Managerial implications of equity theory

o Underpaid people experience anger.

o Overpaid people experience guilt.
o Perceptions of rewards determine motivational outcomes.
o Negative consequences of equity comparisons should be minimized, if not
eliminated.
o Do not underestimate the impact of pay as a source of equity controversies in
the workplace.
 Gender equity.
 Comparable worth.

Goal-setting theory

o Developed by Edwin Locke.

o Properly set and well-managed task goals can be highly motivating.
o Motivational effects of task goals:
 Provide direction to people in their work.
 Clarify performance expectations.
 Establish a frame of reference for feedback.
 Provide a foundation for behavioral self-management.
Key issues and principles in the goal-setting process:
o Set specific goals.
o Set challenging goals.
o Build goal acceptance and commitment.
o Clarify goal priorities.
o Provide feedback on goal accomplishment.
o Reward goal accomplishment.

Expectancy theory
o Developed by Victor Vroom.
o Key expectancy theory variables:
 Expectancy belief that working hard will result in desired level of
performance.
 Instrumentality belief that successful performance will be followed
by rewards.
 Valence value a person assigns to rewards and other work related
outcomes.
Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one
another in a multiplicative fashion:

M=ExIxV

If either E, I, or V is low, motivation will be low.

INCENTIVES:
-Piece RateThe most basic method of payment is a piece rate. When a piece rate is paid
workers are paid for each item they produce or for each task completed.

-Wages.

Wages are paid hourly, for example 4 an hour, and the vast majority of unskilled and semi-
skilled workers are paid wages.

-SalariesSalaries are paid at an annual rate. For example 25,000 per year.

-Profit related pay.

Profit related pay links part of an employee income to the profits of a company.

-Bonus

This can be paid to an individual for reaching targets of output and quality.

-Fringe BenefitsOther forms of financial motivation include company cars, pension schemes,
sickness benefits, subsidised meals and travel, and staff discounts.

-Job Enrichment.

This means giving workers more control over the tasks that they complete

-Job Enlargement

Job enlargement means increasing the number of tasks completed by a worker

-Empowerment.This means giving workers the power to control their own jobs, make
decisions, and implement their own ideas.

Empowerment and Economic Incentive

Financial Methods Empowerment Methods

Leadership

The ability to influence a group toward the achievement of goals.

Traits Theories of Leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate

leaders from nonleaders.
Assumption: Leaders are born

Goal: Select leaders

Eg- Extraversion, Conscientiousness, Openness, Emotional Intelligence (qualified)

Limitations:

No universal traits found that predict leadership in all situations.

Unclear evidence of the cause and effect of relationship of leadership and traits.
Better predictor of the appearance of leadership than leadership effectiveness

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.

Assumption: Leaders can be trained

Goal: Develop leaders

Behavioral theory:
Leadership behaviors can be taught.

Vs.

Trait theory:
Leaders are born, not made.

Blake and Moutons Managerial Grid:

Managerial Grid or Leadership Grid plots the degree of task-centeredness versus person-
centeredness and identifies five combinations as distinct leadership styles.
CONTINGENCY THEORIES:

While trait and behavior theories do help us understand leadership, an important component
is missing: the environment in which the leader exists.

Contingency Theory deals with this additional aspect of leadership effectiveness studies.

Fiedlers Contingency Model

Hersey and Blanchards Situational Leadership Model
Path Goal Theory

Hersey & Blanchards Situational Leadership (SLT) :

A model that focuses on follower readiness

Followers can accept or reject the leader
Effectiveness depends on the followers response to the leaders actions
 Readiness is the extent to which people have the ability and willingness to
accomplish a specific task
Example -- A paternal model:
As the child matures, the adult releases more and more control over the
situation
Similarly, as the workers become more ready, the leader becomes more
laissez-faire

Hersey and Blencherd identify four specific leader behaviors

The most effective behavior depends on the followers ability and motivation
S1. If followers are unable and unwilling to do a task,
the leader needs to give specific and clear directions.

S2. If followers are unable and willing,

The leader need to display a high task orientation.

S3. If the followers are able and unwilling,

The leader needs to use a supportive and participative style.

S4. If followers are both able and willing,

The leader doesn't need to do much.

Likerts 4 system model:

He outlined four systems of management to describe the relationship, involvement, and roles
of managers and subordinates in industrial settings.

The systems are as follows:

1. Exploitative Authoritative System

In this the job of employees is to abide by the decisions made by managers.
The subordinates do not participate in the decision making.
The organization will use fear and threats to make sure employees complete the
work set.
There is no teamwork involved.
2. Benevolent authoritative System
Just as in an exploitive authoritative system, decisions are made by those at the
top of the org
However employees are motivated through rewards rather than fear and threats.
Information may flow from subordinates to managers but it is restricted to what
management want to hear.
3. Consultative System
In this, subordinates are motivated by rewards and a degree of involvement in the
decision making process.
Management will constructively use their subordinates ideas and opinions.
This theory is very closely related to the Human Relations theory
. Communication in this system flows both downward and upward, though upward
is more limited.
This promotes a more positive effect on employee relationships and allows them
to be more cooperative.
4. Participative Group System
Management have complete confidence in their subordinates
There is lots of communication and subordinates are fully involved in the decision
making process.
Subordinates comfortably express opinions and there is lots of teamwork.
Teams are linked together by people, who are members of more than one team.
Likerts calls people in more than one group linking pins.

Fiedlers Contingency Model:

The theory that effective groups depend upon a proper match between a leader's style
of interacting with subordinates and the degree to which the situation gives control
and influence to the leader.
There are basically three steps in the model
1)Identifying Leadership Style
Acc to the theory, a key factor in leadership success is the individuals basic
leadership style
So he created the Least Prefer Co-worker (LPC) Questionnaire

LPC:-An instrument that measures whether a person is task or relationship

oriented

2)Defining the Situation

 Fiedler identified three dimensions that define the situational factors

1. Leader-member relations: confidence, trust, and respect, members have in the

leader
2. Task structure: The degree to which the job assignments are procedurized
3. Position Power: The degree of influence a leader has over power variables
such as hiring, firing, promotion etc.

3)Matching leaders and situations

After knowing the leadership style through LPC and defining all the situations,
we will chose the leader who will fit for the situation.
Two ways in which to improve leader effectiveness
1) Change the leader to fit the situation
2) Change the situation to fit the leader

Cognitive Resource Theory:

It states that stress unfavorably effects the situation, and intelligence, and experience can
lessen the influence of stress on the leader.

A refinement of Fielders original model:

o Focuses on stress as the enemy of rationality and creator of unfavorable
conditions
o A leaders intelligence and experience influence his or her reaction to that
stress
Stress Levels:
o Low Stress: Intellectual abilities are effective
o High Stress: Leader experiences are effective
Research is supporting the theory

Houses Path-Goal Theory:

The theory states that its the leaders job to assist followers in attaining their goals and to
provide the necessary direction & support to ensure that their goals are compatible with the
goals of the org.

Leaders can display multiple leadership types like :

Directive: focuses on the work to be done

Supportive: focuses on the well-being of the worker
Participative: consults with employees in decision-making
Achievement-Oriented: sets challenging goals
Contemporary Leadership:

1. Charismatic Leadership Theory:

A leadership theory that states that followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors.

Key Characteristic :

1. Vision and Articulation: Has a vision (a goal) that proposes future is better
than status quo; and is able to clarify the importance of the vision in terms that
are understandable to others.
2. Personal Risk: Willing to take on high personal risk, incur high costs, and
engage in self-sacrifice to achieve the vision.
3. Sensitivity to followers Needs: Perceptive of others abilities and responsive
to their needs and feelings.
 4. Unconventional Behavior: Engages in behaviors that are perceived as novel
and counter to norms.
2. Transformational Leaders---
Leaders who inspire followers to transcend their own self-interests and who are
capable of having a profound and extraordinary effect on followers.
Characteristics:
1. Idealized Influence: Provides vision and sense of mission, instills pride, gains
respect and trust.
2. Inspirational Motivation: Communicates high expectations, uses symbols to focus
efforts, expresses important purposes in simple ways.
3. Intellectual Stimulation: Promotes intelligence, rationality, and careful problem
solving.
4. Individualized Consideration: Gives personal attention, treats each employee
individually, coaches, advises.
3. Transactional Leaders---
Leaders who guide or motivate their followers in the direction of established goals by
clarifying role and task requirements.
Characteristics:
1. Contingent Rewards; Contracts exchange of rewards for effort, promises
rewards for good performance, recognizes accomplishments.
2. Management by Exception (Active): Watches and searches for deviations from
rules and standards, takes correct action.
3. Managements by Exception(passive): Intervenes only if standards are not met.
4. Laissez-faire: Abdicates responsibilities, avoids making decisions.

Forms of Leadership Styles:

Substitutes and Neutralizers for Leadership:

Leadership substitutes
These are subordinate, task, or organizational characteristics that make leaders redundant or
unnecessary

professional orientation, intrinsically satisfying work, cohesive work group,

etc.
Leadership neutralizers
These are subordinate, task, or organizational characteristics that interfere with a leaders
actions

subordinate skills, abilities, unambiguous and routing tasks, intrinsically

satisfying work, rewards not controlled by supervisor, etc.

GROUP:
A group may be defined as a number of individuals who join together to achieve a goal.
People join groups to achieve goals that cannot be achieved by them alone.
-Johnson & Johnson

GROUP DYNAMICS

- A branch of social psychology which studies problems involving the structure

of a group.
- The interactions that influence the attitudes and behavior of people when they
are grouped with others through either choice or accidental circumstances.
- Group dynamics involves the influence of personality, power, and behaviour on the
group process.
- It helps groups to work effectively.

OBJECTIVES OF GROUP DYNAMICS:

To identify and analyze the social processes that impact on group

development and performance.
To acquire the skills necessary to intervene and improve individual and group
performance in an organizational context.
To build more successful organizations by applying techniques that provides
positive impact on goal achievement.

Tuckmans Five Stages of Group Development:

Forming
 Group members get to know each other and reach common goals.
Storming
Group members disagree on direction and leadership.
Norming
Close ties and consensus begin to develop between group members.
Performing
The group begins to do its real work.
Adjourning
These may include parties or ceremonies that exhibit emotional support or
celebration of their success.

Why People Join Groups:

Security
Status
Self-esteem
Affiliation
Power
Goal Achievement

Group Properties:

Roles:
 Role
A set of expected behavior patterns attributed to someone occupying a given position in a
social unit

Role Identity
Certain attitudes and behaviors consistent with a role

Role Perception
An individuals view of how he or she is supposed to act in a given situation

Role Expectations
How others believe a person should act in a given situation

Psychological Contract: an unwritten agreement that sets out mutual expectations of

management and employees

Role Conflict
A situation in which an individual is confronted by divergent role expectations

Norms:

Norms
Acceptable standards of behavior within a group that are shared by the groups
members
Classes of Norms
Performance norms - level of acceptable work
Appearance norms - what to wear
Social arrangement norms - friendships and the like
Allocation of resources norms - distribution and assignments of jobs and
material
Norms and Behavior
Conformity
Gaining acceptance by adjusting ones behavior to align with the norms of the
group
Reference Groups
Important groups to which individuals belong or hope to belong and with
whose norms individuals are likely to conform

Status:

A socially defined position or rank given to groups or group members by others it

differentiates group members

Important factor in understanding behavior

Significant motivator
Status Characteristics Theory:

Status is derived from one of three sources-

Power a person has over others

 Ability to contribute to group goals
Personal characteristics
Status Effects:

On Norms and Conformity

High-status members are less restrained by norms and pressure to conform
Some level of deviance is allowed to high-status members so long as it doesnt
affect group goal achievement
On Group Interaction
High-status members are more assertive
Large status differences limit diversity of ideas and creativity
On Equity
If status is perceived to be inequitable, it will result in various forms of
corrective behavior.

Size:

Group size affects behavior

Size:
Twelve or more members is a large group
Seven or fewer is a small group
Issues with group size:
Social Loafing
o The tendency for individuals to
expend less effort when working collectively than when working individually
o Ringelmanns Rope Pull: greater
levels of productivity but with diminishing returns as group size increases
o Caused by either equity concerns or
a diffusion of responsibility (free riders)
Managerial Implications
o Build in individual accountability
o Prevent social loafing by:
 Setting group goals
 Increase intergroup competition
 Use peer evaluation
 Distribute group rewards based on
individual effort

Group Cohesiveness :

The extent to which members are loyal and committed to the group; the degree of mutual
attractiveness within the group.

It has been found by studies that the output of a cohesive group tends to be more uniform
than that of the members of the less cohesive group. More cohesive a group is more would
be the productivity.
Attributes of a Cohesive Group:

The members share the group goals and have common interests.
The number of members is relatively small.
The members are in constant touch with each other and have very effective
interpersonal communication.
High group loyalty.
Members interact among themselves quite frequently.
Members keep themselves attached to the group as they feel that their needs would
satisfied by the group.

Types of Group Cohesion:

Task Cohesion the degree to which members of a group work together to achieve
common goals
Social Cohesion reflects the degree to which members of a team like each other and
enjoy each others company

Factors that Increase Group Cohesiveness:

Inter-group competition

Greater time spent together

Membership homogeneity

Competition with other groups

Personal attraction

Favorable evaluation

Agreement on Goals

Interaction
Factors that decrease Group Cohesiveness:

Large group size

Disagreement on goals

Membership heterogeneity

Intra-group competition

Domination

Unpleasant experiences

The Interaction Between Cohesiveness and Performance

FORMAL AND INFORMAL GROUPS:

Formal Groups:

It refers to the organisation structure deliberately created by management for

achieving the objectives of enterprise.
It is a network of official authority, responsibility, relationships and communication
channels.
It is an official and rational structure.
Types of formal groups:

 Command Group
A group composed of the individuals who report directly to a given manager
 Task Group
Those working together to complete a job or task in an organization but not
limited by hierarchical boundaries

Informal Groups:

It refers to the pattern of activity interactions and human relationship which emerge
spontaneously due to social and psychological forces operating at the work place.
It arises naturally on the basis of friendship or some common interest which may or
may not be related with work.
Types of informal groups:

 Interest Group
Members work together to attain a specific objective with which each is
concerned
 Friendship Group
 Those brought together because they share one or more common characteristics

Difference between Formal and Informal Groups:

Origin

Formal groups are created delebrately and consoiusly by management.

Informal group emerges spontaneously on account of socio psychological
forces operating at the work place.
Purpose

Formal groups are created for achieving the legitimate objective of the
organisation.
Informal groups are created by the members of the organisation for their social
and psychological satisfaction.
Size

Formal group may be quite large in size.

Informal groups tent to be small.
Nature of Group

Formal groups are stable and may continue for a very long period of time.
Informal groups were quite unstable in nature.
Authority

Formal groups are bound together by a hierarchical structure.

In Informal groups, all members are equal

Behavior of Members

In formal groups, behavior of the members are governed by formal rules and

regulations
In the informal groups, the behavior of the members is governed by norms
beliefs and value of the group
Communication

In formal groups, communication normally flows through the prescribed chain

of command.
In informal groups, communication passes through the informal channels.
Abolition

Management can abolish the formal groups at any time.

Management has no control over informal groups which are the creation of
natural desire of human beings to interact.
Leadership

In informal groups, leadership is vested in managers.

In informal groups, leadership is not associated with managership.
Status
 There are sharp status differentials among the members of formal groups,
which prevent free interaction and socialisation.
In informal organisation there may be social ranking among people but these
do not prevent free interaction among people.

Group Decision Making Phenomena:

 Groupthink
Situations where group pressures for conformity deter the group from critically
appraising unusual, minority, or unpopular views
Phenomenon in which the norm for consensus overrides the realistic appraisal
of alternative course of action.
Hinders performance
 Groupshift
When discussing a given set of alternatives and arriving at a solution, group
members tend to exaggerate the initial positions that they hold. This causes a
shift to more conservative or more risky behavior
A change in decision risk between the groups decision and the individual
decision that member within the group would make; can be either toward
conservatism or greater risk.

Group Decision-Making Techniques:

Interacting Groups
Typical groups, in which the members interact with each other face-to-face.
Nominal Group Technique
A group decision-making method in which individual members meet face-to-face to
pool their judgments in a systematic but independent fashion.
Brainstorming
An idea-generation process that specifically encourages any and all alternatives, while
withholding any criticism of those alternatives.
Electronic Meeting
A meeting in which members interact on computers, allowing for anonymity of
comments and aggregation of votes.

Advantages of Group Decision-

1.Compared to an individual, the groups generally have a greater knowledge, expertise, &
skill base to make better decisions.

2. Larger number of members provide more perspectives of the problem.

3. With larger number of group members, the participation also increases that helps reach
quality decision.

4. Following increased participation, comprehension of final decision arrived at is usually

high.
Disadvantages of Group Decision Making-

1.It is a time consuming process.

2. Influencing members usually manipulate the group decision in a direction of their interest
& liking.

3. Sometimes decisions made by the group members are simply a compromise between the
various views & options offered by the group members.

Dysfunctional Group:

Members are confused about what the task to be completed

Most members tend to be slackers
Members dont communicate openly, assume that others know what they are thinking
Difficulty in finishing tasks on time

Importance of Team Work in an Organisation:

Creates synergy where the sum is greater than the parts.

Supports a more empowered way of working, removing constraints which may
prevent someone doing their job properly.
Promotes flatter and leaner structures, with less hierarchy.
Encourages multi-disciplinary work where teams cut across organizational
divides.
Fosters flexibility and responsiveness, especially the ability to respond to
change.
Pleases customers who like working with good teams (sometimes the customer
may be part of the team).
Promotes the sense of achievement, equity and camaraderie, essential for a
motivated workplace.
Working alone makes it harder to get early and continual design feedback,
thereby decreasing output quality
Working alone reduces learning
Working on a team increases accountability
Slower project momentum from working alone reduces morale
The lows of a project are more demoralizing when working alone
The highs of a project are more motivating when working as a team

Developing team leadership skills:

 Use initiative to act on opportunities. Become a leader before other people view you as
one. Healthy organisations reward those who take the lead, not just those with formal
management roles.
  Take responsibility for own objectives: set priorities.
 Display a "can do" attitude even in demanding situations.. Try to solve problems,
rather than to pass them on to other people. First answer is yes, Ill make it happen .
 "Go the extra mile" when asked to do tasks. Go beyond your job description. Do work
that gets you noticed.
 Show enthusiasm: this will be noticed and you will eventually be rewarded.
 Take ownership of problems: anticipate potential problems, take pre-emptive action
and act quickly to resolve problems.
 Introduce improvements to the way things are done.
 Develop innovative practices. Value innovative thinking.
 Learn new skills that will enhance capability.
 Recognize the skills of key team members and utilize their strengths to the benefit of
the team.
 Eliminate disagreements between members be the mediator. Set a behavioral code if
necessary.
 Establish an open discussion for decision-making.

Analysis of Interpersonal Relationships:

1. Transactional Analysis
Transactional analysis is a theory of human behaviour and communication developed
by Eric Berne, MD (d.1970). Over the past four decades Eric Berne's theory has
evolved to include applications to counselling, education, organisational development
and psychotherapy,

Key Ideas in Transactional Analysis

Contracts
Transactional analysis practice is based upon mutual contracting for change.
Transactional analysts view people as capable of deciding what they want for their
lives. Accordingly transactional analysis does its work on a contractual basis between
the client and the practitioner. For developmental applications of TA, the contract
will often involve other parties, such as the organisation or institution.

I'm OK - You're OK
"I'm OK - You're OK" is probably the best-known principle of transactional analysis:
to establish and reinforce the position that recognizes the value and worth of every
person. Transactional analysts regard people as basically "OK" and thus capable of
change, growth, and healthy interactions.

Ego States
Eric Berne made complex interpersonal transactions understandable when he
recognized that the human personality is made up of three systems, or groupings, of
ego states; each of which is an entire system of thoughts, feelings, and behaviours
from which we interact with each other. The Parent, Adult and Child ego states and
the interactions between them form the foundation of transactional analysis theory.
These concepts have spread into many areas of therapy, education, coaching and
 consulting as practiced today.

Transactions
Transactions refer to the communication exchanges, or interactions, between people.
Transactional analysis 'proper' therefore refers to the process of identifying whuich
ego states are engaging in transactions, which allows us to understand why
miscommunication may be occurring, and to make changes in order to improve the
quality and effectiveness of communication.

Strokes
Berne observed that people need strokes, the units of interpersonal recognition, to
survive and thrive. Understanding how people give and receive positive and negative
strokes and changing unhealthy patterns of stroking are powerful aspects of work in
transactional analysis.

Games People Play

Berne defined certain socially dysfunctional behavioural patterns as "games." These
repetitive transactional patterns are intended to obtain positive strokes and are seen as
failed attempts at closeness. Instead they reinforce negative feelings and self-
concepts, and mask the direct expression of thoughts and emotions.

Life Script
Eric Berne proposed that dysfunctional behaviour is the result of self-limiting
decisions made in childhood in the interest of survival. Such decisions culminate in
what Berne called the "life script," the pre-conscious life plan that governs the way
life is lived. Supporting positive changes in the life script and replacing unhelpful or
harmful organisational, educational or societal scripting with cooperative non-violent
behaviour is one of the aims of developmental transactional analysis.

2. Johari Window
The Johari Window is a communication model that is used to improve understanding
between individuals.
There are two key ideas behind the tool:
That you can build trust with others by disclosing information about yourself.
That, with the help of feedback from others, you can learn about yourself and
come to terms with personal issues.

The Johari Window is shown as a four-quadrant grid, which you can see in the
diagram below.
The four quadrants are:
1. Open Area (Quadrant 1)
This quadrant represents the things that you know about yourself, and the things that
others know about you. This includes your behavior, knowledge, skills, attitudes, and
"public" history.
2. Blind Area (Quadrant 2)
This quadrant represents things about you that you aren't aware of, but that are known
by others.
This can include simple information that you do not know, or it can involve deep
issues (for example, feelings of inadequacy, incompetence, unworthiness, or
rejection), which are often difficult for individuals to face directly, and yet can be
seen by others.
3. Hidden Area (Quadrant 3)
This quadrant represents things that you know about yourself, but that others don't
know.
4. Unknown Area (Quadrant 4)
This last quadrant represents things that are unknown by you, and are unknown by
others.

The ultimate goal of the Johari Window is to enlarge the Open Area, without
disclosing information that is too personal. The Open Area is the most important
quadrant, as, generally, the more your people know about each other, the more
productive, cooperative, and effective they'll be when working together.
The process of enlarging the Open Area quadrant is called "self-disclosure," and it's a
give-and-take process that takes place between yourself and the people that you're
interacting with.

The Johari Window in a Team Context

Keep in mind that established team members will have larger open areas than new
team members. New team members start with smaller open areas, because they
haven't yet had the opportunity to share much information about themselves.
 Feedback
The importance of feedback in this process can't be overstated. It's only by receiving
feedback from others that your Blind Area will be reduced, and your Open Area will
be expanded.
The size of the Open Area can also be expanded vertically downwards into the
Hidden Area, as people disclose information and feelings to the group.
Also, group members can help a person expand their Open Area into the Hidden Area
by asking personal questions.

Power and Politics:

Power

The capacity that A has to influence the behavior of B, so that B acts in

accordance with As wishes.
The definition implies a potential that need not be actualized to be effective
and a dependency relationship. Power may exist but not be used. It is, therefore, a
capacity or potential.

Contrasting Leadership and Power:

Leadership
Focuses on goal achievement
Requires goal compatibility with followers
Focuses influence downward
Power
Used as a means for achieving goals
Requires follower dependency
Used to gain lateral and upward influence

Sources of Power:

Legitimate Power

Also known as positional power. It's derived from the position a person holds in an
organization's hierarchy. For positional power to be exercised effectively, the person wielding
it must be deemed to have earned it legitimately. An example of legitimate power is that held
by a company's CEO.

Expert power

Knowledge is power. Expert power is derived from possessing knowledge or expertise in a

particular area. Such people are highly valued by organizations for their problem solving
skills. Possession of expert power is normally a stepping stone to other sources of power such
as legitimate power. For example, a person who holds expert power can be promoted to
senior management, thereby giving him legitimate power.
Referent Power

Referent power is derived from the interpersonal relationships that a person cultivates with
other people in the organization. People possess reference power when others respect and like
them. It is also derived from personal connections with key people in the organization. It's the
perception of the personal relationships that she has that generates her power over others.

Coercive Power

Coercive power is derived from a person's ability to influence others via threats, punishments
or sanctions. A junior staff member may work late to meet a deadline to avoid disciplinary
action from his boss. Coercive power is, therefore, a person's ability to punish, fire or
reprimand another employee. Coercive power helps control the behavior of employees by
ensuring that they adhere to the organization's policies and norms.

Reward Power

Reward power arises from the ability of a person to influence the allocation of incentives in
an organization. These incentives include salary increments, positive appraisals and
promotions. In an organization, people who wield reward power tend to influence the actions
of other employees. It greatly motivates employees. But if it's applied through favoritism, it
can greatly demoralize employees and diminish their output.

Dependency: The Key To Power-

The General Dependency Postulate

The greater Bs dependency on A, the greater the power A has over B.
What Creates Dependency
Importance of the resource to the organization
Scarcity of the resource
Non-substitutability of the resource

Power Tactics

The ways in which individuals translate power bases into specific actions.
Politics:

Politics = Power in Action

Political behavior are those activities that are not required as part of ones formal role
in the organization, but that influence, or attempt to influence, the distribution of
advantages and disadvantages within the organization.
Factors contributing to Political Behavior
Individual factors (e.g., personality traits, needs)
Organizational factors (e.g., when organizational resources decline, resources
change, low trust exists, high performance pressures, and the opportunity of
promotion exists = political behavior is likely)
Legitimate Political Behavior : Normal everyday politics
Illegitimate Political Behavior : Extreme political behavior that violates the
implied rules of the game

How do People Respond to Organizational Politics?

Decreased job satisfaction, increased anxiety, increased turnover, and reduced

performance
Defensive Actions:
Reactive and protective behaviors to avoid action, blame, or change

Impression Management
The process by which individuals attempt to control the impression others form of
them. Techniques include conformity, excuses, apologies, self-promotion, flattery,
favors, and association.
Difference between Power, Authority and Influence:

POWER may be defined as the ability or capacity to act in ways which influence the

behavior of others. It is a personal talent which can be developed. It is the ability to get others
to do things. It has little or nothing to do with title, rank or authority. Power is a measure of
personal effectiveness. It is granted to you by those over whom you have influence.

AUTHORITY on the other hand, defines limits and actions which you have the contractual
right to take or use. It is granted to you by the organization as part of the organizations
attempt to control and manage. It is the right to settle disputes, to control operations, to make
and implement decisions and to administer or manage. It is entirely possible to possess a
great deal of power, while not possessing any authority. It is also possible to possess
authority and very little power.

Influence:

The ability to alter another persons perception of the situation.It is a process through which
person attempts to extract compliance from others.It resembles power but tends to be more
subtle and indirect.Power tends from specific sources or foundations whereas influence relies
on tactics.
Political Implications of Power:

Political perspective of power in organizations

Areas relevant to politics

Resources
Decisions
Goals
Technology and external environment
Change

Specific political strategies for power acquisition:

Political tactics:
Dysfunctional uses of Power ( abuse of Power) :

Abuse includes humiliating you, threatening you, intimidating you or possibly coercing you.
It doesn't include normal management tasks such as reviewing your performance or assigning
your workload, unless your boss does so unfairly. Unfairness ranges from racial or sexual
discrimination to singling you out for the worst assignments as a way to bully and dominate
you. Offensive, humiliating verbal or physical conduct may count as harassment as well as
being abusive.

Solutions

If the abuse is a rare lapse in an otherwise-excellent boss, it may be best to let it go. Even if
it's consistent, enduring the abuse until one of you moves on is an option. If it's more than
you can put up with, confront your supervisor, but do it professionally. State the problem
without losing control or flinging abuse or insults at her. Document the incidents in case you
have to complain to higher-ups. If you do not see an improvement in your relationship with
your boss, the next step in a visit to Human Resources for advice. A detailed track record
shows you're not just a whiner.

Legal Action

Sometimes abuse goes beyond what's legal. When a supervisor targets you because of your
race, religion or gender, you have grounds for legal action; some states add other standards,
such as sexual orientation. If your boss defames you, that may be actionable too. If you make
a legitimate complaint to the company and don't get a response, or your company has no
provisions for preventing harassment, you may be able to sue the firm.

Eg :

Sexual Harassment

Unwelcome advances, requests for sexual favors, and other verbal or physical conduct of a
sexual nature

Steps for Managers to Take to Prevent Sexual Harassment:

Make sure a policy against it is in place.

Ensure that employees will not encounter retaliation if they file a complaint.
Investigate every complaint and include the human resource and legal departments.
Make sure offenders are disciplined or terminated.
Set up in-house seminars and training.

Guidelines for Developing Political Skills:

Negotiation Process:

Negotiating

A process in which two or more parties in conflict attempt to come to an agreement.

Organisation Change:

Organizational change is the process by which organization move from their present
state to some desired future state to increase effectiveness.
When an organization system is disturbed by some internal or external forces
change frequently occur or any alteration which occur in the overall work environment
of an organization.
Nature of change:

Change happens because of the pressure of both internal and external forces in the
organization.
Change in any part of the organization affects the whole organization.
Change may affect people, structure, technology, and other element of the
organization.
Change also affects the rate of speed and degree of significance of the organization.
Change may be reactive or proactive.
Internal Forces

 Work force
 Managerial personnel
 Management structure
 Avoid developing inertia
External Forces
  Technology
 Marketing conditions
 Social changes
 Political forces

Change Agents

A person in organization responsible for managing change activities.

Can be managers or non managers, current employees, newly hired employees or
outside consultants.

Resistance to Change:

1. Individual Resistance
Below are stated some reasons why people resists changes. Some of these appear to be
rational or emotional. These reasons are:-
Economic factors
Habits
Insecurity
Lack of communication
Extend of change
Psychological factors
Social factors
2. Group Resistance
Most organizational changes have impact on formal groups in the organization the
main reason why the groups resists change is that they fear that their cohesiveness or
existence is threatened by it.
3. Organizational Resistance
Organizational resistance means the change is resisted at the level of the organization
itself. Some organization are so designed that they resist new ideas, this is specifically
true in case of organization which are conservative in nature. Majority of the business
firm are also resistance to changes. The major reason for organizational resistance
are:-
Threat to power
Group inertia
Organizational structure
Threat to specialization
Resource constants
Sunk costs

Managing resistance to change:

1. Communication
Highest priority and first strategy for change
Improves urgency to change
 Reduces uncertainty (fear of unknown)
Problems -- time consuming and costly
2. Training
Provides new knowledge and skills
Includes coaching and action learning
Helps break old routines and adopt new roles
Problems -- potentially time consuming and costly
3. Employee Involvement
Increases ownership of change
Helps saving face and reducing fear of unknown
Includes task forces, search conferences
Problems -- time-consuming, potential conflict
4. Stress Management
When communication, training, and involvement do not resolve stress
Potential benefits: More motivation to change, Less fear of unknown, Fewer
direct costs
Problems -- time-consuming, expensive, doesnt help everyone
5. Negotiation
When people clearly lose something and wont otherwise support change
Influence by exchange-- reduces direct costs
Problems: Expensive, Increases compliance, not commitment
6. Coercion
When all else fails
Assertive influence
Firing people -- radical form of unlearning
Problems: Reduces trust ,May create more subtle resistance

Kurt Lewin Theory of Change:

Kurt Lewin developed a change model involving three steps: unfreezing, changing and
refreezing. The model represents a very simple and practical model for understanding the
change process. For Lewin, the process of change entails creating the perception that a
change is needed, then moving toward the new, desired level of behavior and finally,
solidifying that new behavior as the norm. The model is still widely used and serves as the
basis for many modern change models.
 1. Unfreeze:
Reducing the forces that are striving to maintain the status quo, and dismantling the
current mind set. Usually by presenting a provocative problem or event to get people
to recognize the need for change and to search for new solutions.
2. Change:
Developing new behaviors, values, and attitudes, sometimes through organizational
structure and process changes and development techniques. There may be a period of
some confusion as we move from the old ways of doing things to the new.
3. Freeze:
The final stage of crystallizing and the adaptation of ownership of the new 'as is'. The
organization may revert to former ways of doing things at this point unless the
changes are reinforced through freezing.

Conflict:

Conflict - any situation in which incompatible goals, attitudes, emotions, or behaviors lead to
disagreement or opposition between two or more parties

Functional Conflict - a healthy, constructive disagreement between two or more people

Dysfunctional Conflict - an unhealthy, destructive disagreement between two or more

people

Consequences of Conflict:
Causes of Conflict in Organizations:

Structural Factors

Specialization
Interdependence
Common resources
Goal differences
Authority relationships
Status inconsistencies
Jurisdictional ambiguities
Personal Factors

Skills & abilities

Personalities
Perceptions
Values & ethics
Emotions
Communication barriers
Cultural differences

Types of Conflict:

Task Conflict-

Conflicts over content and goals of the work

Relationship Conflict-

Conflict based on interpersonal relationships

Process Conflict-

Conflict over how work gets done

Forms of Conflict in Organizations:

Interorganizational Conflict - conflict that occurs between two or more organizations

Intergroup Conflict - conflict that occurs between groups or teams in an organization
Interpersonal Conflict - conflict that occurs between two or more individuals
Intrapersonal Conflict - conflict that occurs within an individual
Interrole Conflict - a persons experience of conflict among the multiple roles in
his/her life
Intrarole Conflict - conflict that occurs within a single role, such as when a person
receives conflicting messages from role senders about how to perform a certain role
Personrole Conflict - conflict that occurs when an individual is expected to perform
behaviors in a certain role that conflict with his/her personal values

The Conflict Process:

Stage I: Potential Opposition or Incompatibility

Communication
o Semantic difficulties, misunderstandings, and noise
Structure
o Size and specialization of jobs
o Jurisdictional clarity/ambiguity
o Member/goal incompatibility
o Leadership styles (close or participative)
 o Reward systems (win-lose)
o Dependence/interdependence of groups
Personal Variables
o Differing individual value systems
o Personality types
Stage II: Cognition and Personalization

Perceived Conflict
Awareness by one or more parties of the existence of conditions that create opportunities for
conflict to arise

Felt Conflict
Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility

Stage III: Intentions

Decisions to act in a given way

Competing-

A desire to satisfy ones interests, regardless of the impact on the other party to the conflict

Collaborating-

A situation in which the parties to a conflict each desire to satisfy fully the concerns of all
parties

Avoiding-

The desire to withdraw from or suppress a conflict

Accommodating-

The willingness of one party in a conflict to place the opponents interests above his or her
own

Compromising-

A situation in which each party to a conflict is willing to give up something

Stage IV: Behavior

Conflict Management

The use of resolution and stimulation techniques to achieve the desired level of conflict

Stage V: Outcomes

Functional Outcomes from Conflict

Increased group performance
Improved quality of decisions
Stimulation of creativity and innovation
 Encouragement of interest and curiosity
Provision of a medium for problem-solving
Creation of an environment for self-evaluation and change
Creating Functional Conflict
Reward dissent and punish conflict avoiders
Dysfunctional Outcomes from Conflict
Development of discontent
Reduced group effectiveness
Retarded communication
Reduced group cohesiveness
Infighting among group members overcomes group goals

Managing Conflict:

There are five approaches to managing conflict.

Competing
An individual pursues his/her own concerns at the other person's expense. This is a
power-oriented mode, in which one uses whatever power seems appropriate to win
one's own position. Competing might mean "standing up for your rights, defending a
position which you believe correct, or simply trying to influence others.

Accommodating
The opposite of competing. When accommodating, an individual neglects his/her own
concerns to satisfy the concerns of the other person; there is an element of self-
sacrifice in this mode. Accommodating might take the form of selfless generosity or
charity, obeying another person's order when one would prefer not to, or yielding to
another's point of view.

Avoiding
The individual does not immediately pursue his/her own concerns or those of the other
person if he/she does not address the conflict. Avoiding might take the form of
diplomatically sidestepping an issue, postponing an issue until a better time or simply
withdrawing from a threatening situation.

Compromising
The objective is to find some expedient, mutually acceptable solution which partially
satisfies both parties. It falls on a middle ground between competing and
accommodating. Compromising gives up more than competing but less than
accommodating. Likewise, it addresses an issue more directly than avoiding, but
doesn't explore it in as much depth as collaborating. Compromising might mean
splitting the difference, exchanging concessions, or seeking a quick middle-ground
position.
 Collaborating
The opposite of avoiding, collaborating involves an attempt to work with the other
person to find some solution which fully satisfies the concerns of both. It means
digging into an issue to identify the underlying concerns of the two individuals and to
find a solution which meets both sets of concerns. This is clearly the most effective
approach of conflict management. Specifically it will produce the following results:
Both sides' needs are met
Satisfaction
Mutual respect
Both parties feel enriched rather than belittled
Continuing effort of both parties to work together