1 Organisational Behaviour Book

Organisational Behaviour
Chapter I
Learning Objectives
Reading this chapter would enable you to understand:
• The importance of the human element in the organisation
• Industrial psychology
Contents
1.1 Organisation
1.2 Major Classifications of Organisations
1.3 Major Factors Influencing an Organisation
1.4 Organisational Behaviour
1.5 Some Fundamental Concepts in Organisational Behaviour
1.5.1 Every Individual is Different
1.5.2 Every Individual is a Complete Person
1.5.3 All Behaviour has Cause-Effect Relationship
1.5.4 Every Individual has Self-esteem
1.5.5 An Organisation is a Social System
1.5.6 Mutual Interests are Inter-dependent
1.5.7 A Total View of the Organisation
1.6 Why is the Study of Organisational Behaviour Important for Managers?
Summing Up
Self-assessment
1.1 Organisation
An organisation is a human construct, made by people. It is not built by bricks

and stones, or by furniture and fixtures, or by plants and machinery alone. It
is the people who make or mar an organisation. A group of people travelling
in a bus from one place to another, a group of people watching a movie for
three hours, a large number of people attending an election campaign speech
of a political leader do not form an organisation. They form a crowd or a mob.
An organisation requires people with purpose, goals and objectives. Thus,
comprehensively we can say that:
“An organisation is a group of people working together to achieve the common

organisational goal (viz. production of goods or services with the help of the
given resources i.e. people, machines and materials).”
Some examples of an organisation are: family, school, college, cricket team,

foot-ball team, hockey team, university, factory, bank, hospital, hotel, municipal
corporation, a state electricity board, a water supply board, telephone
exchange, government, army, navy, air force, etc.
1.2 Major Classifications of Organisations
The following are the major classifications of organisations:

a. Industrial Sector v/s Agricultural Sector
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b. Public Sector v/s Private Sector

c. Joint Sector v/s Co-operative Sector
d. Capital intensive
e. Labour intensive
f. Public Limited
g. Private Limited
h. Manufacturing Sector
i. Service Sector
j. Large Scale
k. Small Scale, etc.
1.3 Major Factors Influencing an Organisation
The following are the factors that influence an organisation:

a. People
b. Size
c. Technology
d. Environment
e. Management
1.4 Organisational Behaviour
Every individual has 24 hours a day. Worldwide research has shown that an
average person spends about 6 to 8 hours a day in sleep. Out of the remaining
18 hours, more than 8 hours are spent in working and travelling for work.
This means that one gets less than 8 hours for one's personal and private life
with family and friends. In other words, we spend about 33% of our life sleeping;
about 50% of our life working and the rest about 17% of our life for personal
pleasures.
If we study the daily routine of a person working in an organisation, we find

that he spends more than 33% of his life in the organisation, less than 33% of
his life sleeping and less than 33% of his life with his family, friends, relatives
and for his personal hobbies, etc. With the increasing problems of
accommodation, transport and communication in major urban areas in the
country, one has to spend at least an hour per day travelling to and fro,the
workplace. The entire routine of life has become so mechanical that man
seems to have become an extension/accessory to the machine, if not the
machine himself. This has resulted in a tremendous amount of stress and
strain on the individual, affecting the physical as well as the mental health of
the person.
The subject of Organisational Behaviour deals with that part of our life, which
we spend working, which is also called ‘On-the-job' life. Interestingly, our ‘off-
the-job’ life is inter-related and inter-dependent on the ‘on-the-job’ life and
vice-versa. Generally, it is observed that those who are comfortable ‘on-the-
job' are happy ‘off-the-job' also.
Organisational behaviour has been defined by:
a. Keith Davis: As a study of human behaviour at work.

b. Fred Luthans: As understanding, prediction and control of human
behaviour in the organisation.
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c. Stephen Robbins: As a study that investigates the impact, individuals,

groups and structure have on human behaviour within the organisation.
d. S. K. Kapur: As a systematic study of actions and reactions, the people
working in an organisation in order to improve the overall
organisational performance.
1.5 Some Fundamental Concepts in Organisational Behaviour
Research studies in organisational behaviour all over the world show that the
‘On-the-job' performance of an individual depends upon the ‘Off-the-job' life.
In other words, less than 66% of the life ‘off-the-job’ has a great influence on
the more than 33% life ‘on-the-job’, affecting performance. Think over the
following statements:
a. Similar machines behave similarly under similar conditions

b. Different machines behave differently under different conditions
c. Similar machines behave differently under different conditions
d. Different machines behave differently under similar conditions
e. Different people behave differently under different conditions
f. Different people behave differently under similar conditions
g. The same people behave differently under different conditions
h. The same people behave differently under similar conditions.
Thus, it will be observed that in a modern business organisation, managers

must understand not only the organisational ‘str ucture', but also the
organisational ‘culture'. Obviously, the organisational structure is different
from the organisational culture. The organisational structure can be shown
by an organisational chart or the ‘Organogram', but organisational culture
cannot be shown on paper. It has to be seen, felt and experienced by the
people within as well as by the people out. Organisational culture is formed
by the organisational behaviour of the people over a long period of time. Human
behaviour is universal like the gravitational force.
Human behaviour is a highly complex process. A systematic understanding

of human behaviour involves the ability to understand the ‘why' of behaviour.
In modern business/commercial organisations, it is essential for ever y
manager to develop an ability to understand not only the reasons for the past
behaviour of his people, but also to predict, change or control the future
behaviour to the extent possible.
Some of the important fundamental concepts of organisational behaviour are

as follows:
1.5.1 Ever y individual is different
Every person is different with respect to his/her age, education, knowledge,

skills, attitude, physical health, mental health, personality, etc. Therefore,
each person should be treated separately while managing people. A uniform
management style will not be applicable to all employees.
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1.5.2 Ever y individual is a complete person
Every individual is a complete person viz. he comes to work everyday with

his head, hands and heart representing knowledge, skills and attitude
respectively. The employee has his/her individual knowledge, skills, attitude,
opinions, views, likes-dislikes, family background, social background, biases/
prejudices, etc. People spend more than half their lifetime in the organisations
for which they work. Naturally, they expect to be happy on-the-job as well as
off-the-job.
1.5.3 All behaviour has Cause-effect Relationship
Human behaviour has a reason behind it. Every person behaves as per his/
her thought process and believes that the behaviour is correct, because the
person has certain beliefs and faith. It is necessary for managers to understand
these beliefs and faiths of the people and also the cause-effect relationship
behind the behaviour, if they want to be effective in their managerial functions.
1.5.4 Ever y individual has self-esteem
People are different from machines and materials. They can think, smile, laugh;
they have feelings and emotions. They have self-respect and prestige. They
are live entities, unlike machines or tools and equipment. Therefore, they
should not be treated like machines or materials. They expect their due respect
in day-to-day activities.
1.5.5 An organisation is a social system
As Keith Davis remarks, an organisation is a social system. Therefore, the

organisational behaviour of people depends upon the social and psychological
values and systems. People have social as well as psychological needs. Their
organisational behaviour depends upon their social status, social roles, and
social groups. As a result within every formal organisation, there exists an
informal organisation, which influences the formal organisation to a large
extent.
1.5.6 Mutual interests are inter-dependent
As organisation needs people, people too need the organisation. The

organisation wants to fulfil its objectives of production of goods and services.
The employees working in an organisation have their personal goals, for
example, individual career goals, family goals, etc. There is interdependence
of interests. It is necessar y that these are ‘complementar y' and not
‘contradictory'.
1.5.7 A total view of the organisation
When all the above aspects of organisational behaviour are taken into
consideration, we can have a total view of the organisation.This includes: the
organisational structure, the management-employee relationships, the
interpersonal and the inter-group relationships, the total personality of the
employee, and the organisation as a total system. This helps managers
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understand human behaviour in the organisation. In turn, this results in the

necessary co-ordination between the three major factors viz., organisation,
management and employees. Thus, understanding organisational behaviour
of people is an extremely important matter for future managers.
1.6 Why is the study of Organisational Behaviour important for

managers?
With the growing number of organisations, rapidly changing technologies

and increasing complexity of organisational structures, the importance of
people in the organisations cannot be over-emphasised. At the beginning of
the industrial revolution, people were considered ‘commodities' that could be
‘hired' and ‘fired' but, during the last 100 years, things have changed very fast.
Both, the employers and the employees have realised that the relationship
between them is not that of ‘Master-Servant', but like ‘Partners in progress'.
Therefore, understanding people has become important, if not more important,

as understanding machines and materials. People are called ‘Human
Resources' because they are not commodities, but have become resources.
Managements have become aware that they have to treat their employees as
human beings and not as machines or materials. Therefore, understanding
the ‘Organisational Behaviour’ of their employees has become extremely
important for the managers of tomorrow.
In the modern world, organisations are becoming increasingly complex with

rapidly changing technology. As a result, organisations are demanding more
and more from their employees. People are living resources with feelings,
emotions and responses unlike machines or commodities. They cannot be
treated like machines or materials but need psychological treatment. Hence,
the study of organisational behaviour is of utmost importance today.
Summing Up
In this chapter we have discussed what constitutes an organisation, the major

classifications of organisations and factors influencing an organisation. Despite
the advancement in technology, the importance of people in an organisation
cannot be undermined. Hence the study of organisational behaviour is very
important to managers in order to understand people and manage them.
Self-assessment
a. Fill in the blanks
1. _____________ are a major factor influencing an organisation.

2. Every person behaves as per his/her _____________ .
3. The interests of employees and the organisation are _____________
4. People are called ____________ because they are not commodities.
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b. State whether the following are true or false

1. Organisational culture is written and described on paper.
2. An organisation has a common goal.
3. An organisation is a kind of social system.
4. The same people behave differently under similar conditions.
5. Understanding organisational behaviour of people is an extremely
important matter for future managers.
6. Organisational behaviour deals with the part of our life that is called
‘on-the-job-life'.
7. Each person should be treated the same way while managing people.
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Approaches and Models of
Chapter II
Approaches and Models of Organisational
Behaviour
Learning Objectives
• Different approaches to Organisational Behaviour
• Various models of Organisational Behaviour
Contents
2.1 Approaches to Organisational Behaviour
2.1.1 The Inter-disciplinary Approach
2.1.2 The Human Resources Approach
2.1.3 The Systems Approach
2.1.4 The Contingency Approach
2. 2 Models of Organisational Behaviour
2.2.1 The Autocratic Model
2.2.2 The Custodial Model
2.2.3 The Supportive Model
2.2.4 The Collegial Model
2.2.5 The SOBC Model
2.3 The Inter-relationship between Personal Life and Work Life
2.3.1 Personal Life
2.3.2 Work Life
Summing Up
Self-assessment
2.1 Approaches to Organisational Behaviour
Organisational behaviour of people can be studied from various angles.

Different experts have studied the subject of organisational behaviour from
different angles. These angles are called the Approaches to Organisational
Behaviour. These various approaches to the study of Organisational Behaviour
have given rise to different Models.
Some of the important approaches and models are briefly described below:
2.1.1 The Inter-disciplinar y Approach
This approach is based on the fact that human behaviour is a result of the
interaction and interdependence among the different aspects of human life.
An organisation consists of dif ferent factors viz. the str ucture, size,
technology and the people. In order to study the organisational behaviour
of people, it is necessary to understand the interactions between the various
aspects of human life, for example, Histor y, Geography, Sociology,
Economics, Philosophy, Psychology, Anthropology, Ergonomics,
Mathematics, Law, etc.
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2.1.2 The Human Resources Approach
This approach is based on the assumption that people are resources and not
commodities that can be bought and sold like other resources, for example
machines and materials. The growth and development of the organisation
depends upon the training and development of the people working for the
same. The management should suppor t rather than control people.
Involvement and participation of people yields better results. Employees need
guidance and counselling for their growth ‘on-the-job' as well as ‘off-the-job'.
Employees have creativity that needs to be explored.
2.1.3 The Systems Approach
This approach is based on the assumption that like a human body, an

organisation is a social system with many different sub-systems. Every major
system consists of sub-systems and sub-sub-systems. Each sub-system can
affect the whole system. A number of variables affect organisational efficiency.
A systematic study can help the cost-benefit analysis. The systems approach
also helps in the ‘synergy' effect. Thus, the systems approach considers the
organisation as a large system.
2.1.4 The Contingency Approach
This approach is based on the assumption that every organisation and every
situation is different. Not many situations repeat and as a result every situation
is unique. Each situation demands special thinking and decision-making
followed by an action. In other words, every decision and action is situation
oriented. We cannot prescribe one best way for universal application. Therefore,
this approach depends heavily upon the experience of managers.
2.2 Models of Organisational Behaviour
2.2.1 The Autocratic Model
This model is based on the assumption that authority is central to results.

People must accept the authority of their superiors and obey their instructions.
Obedience is the main employee orientation. Obedience of the subordinates
can be due to two reasons: respect for knowledge and authority of their
superiors or fear of punishment in case of disobedience. Employees obey their
superiors for their authority because their job security plays an important
role in terms of the negative motivation. People behave as they do mainly
because of their basic needs for existence, survival and growth.
2.2.2 The Custodial Model
This model is based on the assumption that organisational behaviour depends

upon economic resources. People work for want of money, and job security is
the main employee orientation, since they believe that their survival and growth
depend upon the organisation. While money is the main managerial orientation,
managerial orientation, job security is the main employee orientation. The
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basic need of the employees is job security for which they offer passive co-
operation to their superiors. The management knows better about the welfare
of its people and takes the role of guardian and custodian of the people and
their wealth.
2.2.3 The Supportive Model
This model is based on the assumption that management means leadership.

The management plays the role of supportive leadership. Employees are
performance oriented and need support for their initiative and drive for
per formance. This encourages involvement and par ticipation from the
subordinates. The basic needs of the employees are self-esteem and
recognition. They show an initiative and drive for performance through their
involvement and participation in the organisational activities. The employees
need support, status and recognition for their performance.
2.2.4 The Collegial Model
This model is based on the assumption that generally employees are self-
disciplined and exhibit responsible behaviour. The main need of the employees
is self-actualisation. If this need is satisfied, they show enthusiastic
performance. Therefore, they must be encouraged to participate in decision-
making. The management must build teams, as teamwork is the main
managerial orientation.
2.2.5 The SOBC Model
This model is based on the assumption that, all behaviour is caused. What
we see is the consequence of the behaviour shown by the organism due to a
stimulus. This model can be diagrammatically shown as follows:
Stimulus > Organism > Behaviour > Consequences

(Cause) (Individual) (Actions) (Results)
The Stimulus is the cause that may be overt or covert, physical, social,
psychological, technological, environmental, etc.
The Organism can be an individual or a group. They have cognitive mediators

with physiological existence.
Behaviour is expressed in terms of actions that may be overt or covert. It is

in terms of a response in terms of a particular behaviour.
Consequences are expressed as the results, that may be overt or covert,

positive or negative and can have effects on environmental dynamics and their
application.
Thus, the managers in future have to understand the organisational behaviour

of their employees in terms of the SOBC model since it is based on the very
practical philosophy of human behaviour that ‘ever y human behaviour is
caused and follows the cause-effect relationship’.
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Parameter Autocratic Custodial Supportive Collegial

Basis Power Economic Leadership Partnership
resources
Managerial Authority Money Support Teamwork

orientation
Employee Obedience Job security Performance Responsibility

orientation
Employee Dependence Dependence Participation Self-discipline

psychology on boss on the
organisation
Employee Survival Maintenance Self-esteem Self-

needs and and actualisation
subsistence recognition
Performance Minimum Passive Efficient and Effective

results co-operation above average and efficient
Level of Compliance Satisfaction Motivation Commitment

morale
Table 2.1 Summary of Models of Organisational Behaviour
2.3 The Inter-relationship between Personal Life and Work Life
A large amount of research in the organisational behaviour of employees

at all levels in different organisations all over the world has revealed that
an employee's personal life and work life are inter-related and inter-
dependent. In other words, it is obser ved that the employee's ‘on-the-job'
performance depends upon his ‘off-the-job' life. Therefore, it is extremely
important and necessary for managers to understand the various aspects
of organisational behaviour, in the light of the various approaches and
models described above.
2.3.1 Personal Life
The personal life of an employee consists of various factors, for example,

own personality, family background, friend-circle, relatives, educational
background, aptitude, hobbies, interests, beliefs, perceptions, values, social
interactions, personal motivation, health, etc.
2.3.2 Work Life
The work life of an employee consists of various factors, for example, the
organisational structure, the organisational culture, policies, procedures,
communication, knowledge, skills, attitude, job description, inter-personal
communication and relationships with superiors, colleagues, subordinates,
working conditions, authority-responsibility relationship, challenges in the
job, career prospects, etc. Thus, it will be seen that the organisational
behaviour of an employee is a result of a constant and continuous
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interaction between personal life and work life. Generally speaking, those
who are happy ‘on-the-job' are happy ‘off-the-job', although the converse
may not hold true.
Summing Up
In this chapter we have discussed the inter-disciplinary approaches to the

study of Organisational Behaviour. The human resources approach assumes
that people are resources not commodities whereas the systems approach
assumes that the organisation is a social system with many different sub-
systems.
There are also several models of Organisational Behaviour. The inter-

relationship between personal life and work life cannot be overlooked. Hence
it is extremely important for managers to understand the various aspects of
organisational behaviour in the light of various approaches and models
discussed in this chapter.
Self-assessment
1. The human resources approach is based on the assumption that people

are __________, not ________________.
2. The autocratic model is based on the theory that, __________ is central
to results.
3. The SOBC model is based on the assumption that every behaviour is
_________.
4. In the supportive model, the management plays the role of supportive
______ __.
1. An Autocratic organisation is based on power and a supportive type

organisation is based on economic resources.
2. Behaviour is expressed in terms of action.
3. The basic needs of an employee are self-esteem and recognition as per
the autocratic model of organisation.
4. The systems approach helps in the synergy effect.
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Chapter III
Organisational Design and Culture
Learning Objectives
• Various designs of an organisation
Contents
3.1 Organisational Design
3.2 Dimensions of Organisational Design
3.3 Determinants of Organisational Design
3.4 Major Elements of Organisational Design
3.5 Factors Influencing Organisational Redesigning
3.6 What is Organisational Structure?
3.7 What is Organisational Culture?
3.8 Projection of the Organisational Culture
3.9 Characteristics of Organisational Culture
3.10 Factors Affecting Organisational Culture
3.11 Assessing Organisational Culture
3.12 Changing Organisational Culture
Summing Up
Self-assessment
3.1 Organisational Design
Organisations can be broadly classified on the basis of their age:

a. An organisation, in its conceptual or embryonic stage
b. An organisation just born and is very young
c. An organisation, more than 25 years old.
It is observed that almost all organisations, which are large today, were started
as very small organisations many years ago. The organisations, that have
taken care of designing their structures properly during the initial stages, are
facing comparatively less problems of organisational behaviour as compared
to the others. Organisational Designing is the basis for organisational
structure viz. Line Organisation, Functional Organisation, Line and Staff
Organisation, Committee Organisation, Matrix Organisation, etc.
Organisational structure and organisational culture are different, but at the
same time interrelated and interdependent. Therefore, organisational designing
is of vital importance in shaping organisational behaviour and in turn, the
organisational culture.
Thus, in words of Stephen Robbins, Organisational Design may be defined as:
“A process of determining as to how tasks are divided, grouped and

co-ordinated for the successful achievement of the organisational goals.”
It is easier to design an organisation at the conceptual or embryonic stage,
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Organisational Design
and Culture
than at a later stage. Obviously, it becomes increasingly difficult to design or

redesign the organisation structure, as the organisation grows older. However,
modern organisations review the design/structure once every five years and
redesign and readjust the organisation to cope with changing situations, for
example, changes in: the products/services, methods and procedures, quantity
and quality, systems and sub-systems, market demands and consumer
preferences, etc.
3.2 Dimensions of Organisational Design
Basically, there are two dimensions of organisational design:
a. The vertical dimension relating to the hierarchy of the managerial levels

of superiors and subordinates.
b. The horizontal dimension relating to decentralisation, divisionalisation,
departmentalisation, sectionalisation.
3.3 Determinants of Organisational Design
The major determinants of organisational design are as follows:
a. Ownership (Public/Private/Joint/Co-operative)
b. Size (Small/Medium/Large, number of people, capital investment, sales
turnover)
c. Technology (old or new, automation, modernisation, computerisation)
d. Strategy (goals, objectives, short term/long term, evaluation of
alternatives)
e. Environment (internal v/s external)
3.4 Major Elements of Organisational Design
a. Work Specialisation
This is based on Taylor's concept of Scientific Management. Both Fayol and

Taylor have suggested ‘division of labour' among employees as per their
knowledge and skills. Division of labour based on work specialisation helps
to improve the efficiency and effectiveness of the organisation.
b. Departmentalisation
As the organisation grows it becomes necessary to divide the work group,

the activities and bring them under certain departments that can be directly
managed by the departmental heads so that the organisation can be managed
efficiently and effectively.
Departmentalisation may be defined as ‘a process of dividing the various

activities into dif ferent depar tments for proper administration of the
organisation.'
A few advantages of proper departmentalisation are as follows:

1. It permits utilisation of specialisation and expertise of people.
2. It creates a feeling of autonomy and job satisfaction among employees.
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3. It helps fix the authority-responsibility relationship of the managers.

4. It facilitates performance appraisals by managers.
5. It helps the training, development and job rotations of managers
c. Chain of Command
Organisational communication is an extremely important factor for the success

or failure of an organisation. Generally, organisational communication requires
a chain of commands to flow downwards/upwards/lateral. In the absence of
a proper chain of commands for organisational communication to flow,
organisational behaviour becomes a more complex subject.
d. Span of Control
In large-scale organisations, activities are decentralised and the organisation

is divided into different divisions or departments to perform certain specialised
tasks that ultimately contribute to the organisational goals. Each department
consists of one head and some subordinates who have to work as a team and
achieve the departmental goal with the given resources viz. people, machines
and materials.
In this process, each department consists of different numbers of people

depending upon the nature of work, the quantity and quality of the finished
product/service and the resources available to complete the task in a given
time limit. This requires the manager to plan, organise, direct, communicate,
lead, motivate, supervise, control and co-ordinate all his activities as well as
those of his subordinates. If the number of people to be supervised is too
large, supervision and control becomes difficult. On the other hand, if the
number is too small, supervision and control become too strict and critical.
In both these situations, the performance of the team may not be satisfactory.
Therefore, the span of management should be optimum for an optimum
performance.
Thus, the span of control may be defined as ‘the number of subordinates that
can be efficiently and effectively managed by the superior for the optimum
performance of the work team’.
Centralisation v/s Decentralisation
As long as the organisation is small it can be managed by a small group of

managers. One manager has to look after a number of functions. In such an
organisation there is centralisation of authority and decision-making as a result
of which a few managers have the authority to take decisions and give
instructions to their subordinates.
Thus, centralisation may be defined as ‘a systematic and consistent reservation

of authority and decision making at a central point in the organisation.'
As long as the organisation is small, centralised authority and decision-making

can manage it but, as it grows into a large-scale organisation, it has to
decentralise activities in order to cope with the changing demands of the
efficiency and effectiveness of the organisation. It becomes necessary to
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and Culture
decentralise many functions like planning, organising, staffing, directing,

controlling, etc.
Thus, decentralisation may be defined as ‘a process of dividing organisational

activities into dif ferent autonomous divisions/depar tments/sections,
physically and functionally '
3.5 Factors influencing Organisational Redesigning Changes
• In the knowledge requirements

• In the technology and the consequent skill requirement
• In the knowledge of human behaviour
• From centralised to de-centralised structures
• From vertical and tall to horizontal and flat organisations
• In emphasis from command control to consensus self-control
• From instability and uncertainty to mechanistic systems
• From generalisation to specialisation in management
• From product orientation to function orientation
• From mechanistic approach to human behaviour approach
3.6 What is Organisational Structure?
An organisation can be depicted by a line diagram, which is called as

Organisation Char t. The organisation char t shows the organisational
structure. It shows the positions of the people, their status/designations,
authority-responsibility relationships, their span of control, etc. Organisation
structure can be any one of the following:
a. Line Organisational structure

b. Functional Organisational structure
c. Line and Staff Organisational structure
d. Committee Organisational structure
e. Matrix Organisational structure
3.6.1 Difference between Organisational Structure and

Organisational Culture
Organisational culture is dif ferent from organisational str ucture.

Organisational culture relates to the perception, values, attitudes, morale and
motivation, interpersonal communication, interpersonal relationships, co-
operation and co-ordination among employees at different levels, the sense of
belonging among employees, the treatment given to outsiders viz. customers,
suppliers, contractors, government officers, etc. Organisational structures
can be created and changed overnight, but organisational culture cannot be
changed overnight. It has to be built up over a period of time.
Organisational structure is mechanistic and can be shown on paper. But, the

organisational culture is to be experienced by actually working in the
organisation.
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Thus, culture is an abstract concept that varies from organisation to

organisation and from time to time. It has to be felt and experienced by the
people over a period of time. It plays an extremely impor tant role in
organisational image building, goodwill and reputation. It also helps to improve
the morale and motivation and the sense of belonging among employees.
3.7 What is Organisational Culture?
What is culture? It is observed that during the 21st century, world culture
has been changing very fast as a result of the fast changing national and
regional cultures. We find Eastern culture v/s Western culture, traditional
culture v/s modern culture, agrarian culture v/s industrial culture, rural culture
v/s urban culture, etc. Similarly, there is public sector culture v/s private
sector culture, manufacturing sector culture v/s service sector culture, large
scale culture v/s small scale culture, etc. Individual culture is a result of the
impact of parents + family + education + work experience + friends + society.
Group culture is the sum total of the individual cultures.
Organisational culture has been defined by:

a. Edgar Schiene: As the sum total of the knowledge, beliefs, values,
perceptions, attitudes, traditions, customs that are shared by the groups and
resulting into the individual and group behaviour of the people working in the
organisation over a period of time.
b. Taguiri and Litwin: As a relatively enduring quality of the internal
environment that is experienced by its members, that influences their
behaviour and can be described in terms of a set of values.
c. Forehand and Gilmer: As a set of characteristics that differentiate one
organisation from another and are relatively enduring over a period of time
and influence the behaviour of the people in the organisation.
d. Schneider and Snyder: As a process of manifestation of the perceptions,
values and attitudes of the members of the organisation.
Generally organisational culture flows from the top to the bottom. It is not
developed overnight. It takes a long time to develop. The perceptions, values
and attitudes of the employees form the core of organisational culture.
Some of the indicators of organisational culture are as follows:
Lack of knowledge
Lack of skills
Negative attitudes
Resentful service
Lack of accountability More bureaucratic culture
Red tapism
Bureaucracy
Lack of discipline
Lack of cleanliness/housekeeping
Poor Quantity and Quality
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and Culture
Adequate knowledge of the job

Adequate skills for the job
Positive attitudes
Cheerful service
Less bureaucratic culture Accountability
Responsibility
Better discipline
Better cleanliness and housekeeping
Efficiency and Effectiveness
Better Quantity and Quality
3.8 Projection of the Organisational Culture
According to Edgar Schiene, organisational culture is projected at three levels

as follows:
a. Level I: Company Logo, Trade Mark, Code of Uniform, values,
philosophy, ceremonies, festivals, rituals, rewards, appreciation, role
models, etc.
b. Level II: Shared values and beliefs among the employees in the
organisation.
c. Level III: Common assumptions of the management about the
employees.
3.9 Characteristics of Organisational Culture

The following are the characteristics of Organisational Culture:
a. Pragmatic policies
b. Strategic planning
c. Decentralisation and Delegation
d. Individual autonomy
e. Participation in decision-making
f. Risk tolerance
g. Integration with the organisational goals
h. Management support
i. Innovation and creativity
j. Self-esteem and identity
k. Control systems
l. Communication systems
m. Conflict management
n. Reward system
3.10 Factors Affecting Organisational Culture
The following are the factors that may affect organisational culture:
a. Organisational context
b. Organisational structure
c. Organisational processes
d. Physical environment
e. Values, norms and systems
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3.11 Assessing Organisational Culture
Organisational culture and climate are abstract areas of experience. Some

employees may be comfortably happy working in the organisational climate,
while some others may not be so happy. It is a subjective concept, which
depends upon the beliefs, perceptions and values nurtured by the concerned
employees. A lot of research has gone into the assessment of organisational
climate though, it is difficult to measure it in any units as in Physics, Chemistry,
Biology or Mathematics. According to Rensis Likert, organisational climate
can be assessed on the basis of the following 7-point scale:
1. Leadership style
2. Morale and Motivation
3. Organisational communication
4. Interaction-Influence process
5. Decision making
6. Goal setting
7. Control
3.12 Changing Organisational Culture
Organisational culture is not a matter of minutes, like fast food! It is a long-

term process, like character building, which takes a long time. Therefore,
changing organisational culture requires sustained efforts by all. It demands
conviction, commitment and competence. Some of the changes that can bring
about a change in organisational culture are as follows:
a. Treat employees as individuals

b. Respect individual identity and self-esteem
c. Improve organisational communication
d. Give training and development inputs at all levels
e. Review systems and procedures
f. Improve leadership and team building
g. Give rewards and incentives in due recognition and appreciation.
h. Delegate to improve autonomy
i. Change from autocratic to participative style of management.
j. Develop a positive attitude towards the organisational goals
Summing Up
In this chapter we have discussed organisational design, the dimensions, the

determinants and the major elements of organisational design. An organisation,
if small, may be managed by a centralised authority, but as it grows bigger in
size and scale it has to decentralise authority for the efficient functioning of
the organisation.
Every organisation has a culture which is different from its structure. The
structure can be seen on paper, but culture can only be experienced.
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and Culture
There are several factors working at several levels which project the culture
of an organisation. We have also discussed how to assess and change the
culture of an organisation.
Self-assessment
1. Generally organisation culture flows from ___________ to _____________.

2. An organisation can be depicted by a line diagram which is called the
________________________.
1. Departmentalisation helps fix the authority-responsibility relationship

of managers.
2. Organisation culture is different from organisation structure.
3. Organisation culture is not a subjective concept.
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Chapter IV
Perception and Values
Learning Objectives
• What is perception and the importance of perception. It will also give an idea of
social perception.
Contents
4.1 Perception
4.2 The process of perception
4.3 Internal factors affecting perception
4.4 External factors affecting perception
4.5 Developing perceptual skills
4.6 Perception and personality
4.7 What is Value?
4.8 Sources of Values
4.9 Manifestations of Values
4.10 Types of Values
4.10.1 Terminal Values
4.10.2 Instrumental Values
4.11 Classifications of Values (Allport and Associates) (TASRPE)
Summing Up
Self-assessment
4.1 Perception
Generally, every individual lives with his/her parents or the family for the
first five years of his/her life, which are the cognitive years of life. One has
perceptions about one's own parents, teachers, friends, etc. During the further
15 to 20 formative years in primary school, secondary school, under-graduation
and post-graduation, there are many people with whom one interacts and
creates perceptions. After completion of formal education, one starts with a
career either in employment or self-employment during which one has to
deal with many people including superiors, colleagues and subordinates,
outsiders, etc.
The first impressions of your teachers, your co-passengers on a journey, your

superiors/colleagues/subordinates are some of the examples of the effects
of your perception. Watching a clear sky with white clouds, some of us see
the shapes of animals like horse, elephant, tiger, while some may see shapes
of birds.
Every person has to interact with other individuals in his/her life on-the-job
as well as off-the job. Some interpersonal interactions are satisfactory and
produce positive results, while some others are not satisfactory and produce
negative results with stress and tensions for either of the parties or for both
of them. Why does this happen? The answer lies in the ‘Perception' of people,
objects or situations.
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Thus, perception may be defined as:
a. ‘the way you look at people/objects/situations in the world.'
b. ‘a process of receiving, selecting, organising, interpreting, checking and

reacting to the sensory stimuli or data so as to form a meaningful and
coherent picture of the world.'
c. ‘an active psychological process by which individuals receive, organise

and interpret their sensory impressions in order to give meaning to
their environment.'
4.2 The process of perception
Generally, the process of perception takes the following stages:
a. Confrontation with the Stimulus: The individual comes face to face

with another individual/group/situation/problem.
b. Registration: The individual registers the stimulus and its gravity.
c. Observation : The individual uses his/her sensory tools to observe

the stimuli (e.g. sight, hearing, smell, touch, taste, etc.).
d. Perceptual selection : The individual selects the data e.g. status,

appearance, familiarity, size, intensity, contrast, repetition, motion,
novelty, etc.
e. Perceptual organisation : It is a process through which the incoming

information is organised and patterned in a systematic manner e.g. figure
ground principle, relevancy principle, role of the central nervous system,
etc.
f. Perceptual grouping : It is a process through which certain aspects

of thedata are screened/filtered e.g. continuity, closure, similarity,
proximity, constancy, context, defence, implicit personality, self-fulfilling
prophecy, Pollyanna-Nietze effect, etc.
g. Interpretation: The individual tries to understand the real meaning of

the situation and to interpret it for the effects. e.g. perceptual errors,
perceptual defence, characteristics of the perceiver/perceived,
attribution, stereotyping, halo effect, projection, contrast effect, first
impression, impression management, etc.
h. Evaluation and feedback : The individual evaluates the strengths

and weaknesses in a situation and gives a quick feedback to the sensory
and motor mechanisms for the next step.
i. Response : The individual gives the response in terms of a reaction,

which can be positive, negative or neutral. Depending upon the mutual
interaction between the stimulus and the individual, the reaction of the
individual to thestimuli can be: behaviour, covert feelings emotions,
attitudes, motivation, expectations, etc.
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4.3 Internal factors affecting perception
The following are some of the internal factors that may affect perception:
a. Family background: A good family background cultivates good

perception. A bad family background breeds bad perception. Thus,
parents, brothers and sisters play an impor tant role in forming
perceptions in the early stages of life of every individual.
b. Educational background: Educational background plays an important

role in forming perceptions of people. Generally, people having a good
educational background are more likely to have a more logical /rational
perception as compared to those without such background. In this
regard, teachers, class- mates and friends play an important role, which
has an effect on perception.
c. Work experience : Work experience refers to the ‘on-the-job' life in

the organisation. Every employee has to interact with 3 different levels,
viz. superiors, colleagues and subordinates. All interactions at all these
three levels affect perception through experience.
d. Social needs : Man is a social animal. Every individual has certain

social needs in terms of a sense of belonging to a group. Satisfaction or
dissatisfaction of these needs affects the perception of the individual.
Individuals with fairly satisfied social needs have better perceptions than
those with dissatisfied social needs.
e. Psychological needs: Every individual has certain psychological needs

in terms of self-esteem, status, ego, recognition, appreciation,
etc.Satisfaction or dissatisfaction of these needs also af fects the
perception of the individual.
f. Interests : The individual's interest in people/situations affects

perception either favourably or otherwise. Generally, objects, situations
or the people in whom the individual is interested create a positive
perception.
g. Expectations : This is the greatest factor that affects one's perception.

If expectations are fulfilled, the perception is favourable. If otherwise, it
is distorted and not so favourable. Generally, people see what they expect
to see.
h. Learning : Learning is a continuous process. The higher the learning,

the better is the perception, because a learned person can look at the
world from an enlightened point of view. Therefore, his perception is
likely to be more positive than of one who is less learned. Moreover,
people keep on modifying their perceptions of the world through the
process of learning.
i. Values : Perception and value always go hand-in-hand. Good values

result in good perception, while bad values result in bad perception. Of
course, good and bad are relative terms and it all depends upon the
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individual's background as per the above factors.
j. Personality : Personality is the total result of an individual's perception,

values and attitude. Personality and perception are mutually
interdependent. Generally, people with good personalities have good
perception and vice- versa.
4.4 External factors affecting perception
The following are some of the external factors that may affect perception:
a. Familiarity : Familiarity with the other person/object/situation helps

positive perception. Otherwise, it is negative or distorted, for example,
a good friend in a large group is noticed first, a known person is given
preference for appointments. This means that those individuals who
are more familiar with each other have better perceptions about each
other than those who are not.
b. Status : Generally, people with high status are perceived with respect/
reverence and therefore listened to. On the contrary, people without
any substantial status in society are not perceived favourably. A president,
prime minister, a governor, a minister, a manager, an actor/actress, a
socialworker, a doctor, an advocate, a judge, a Nobel laureate etc. are
better placed due to their high status. Status in the organisation/society
affects the perception of the individual.
c. Appearance : ‘Your face is your fortune'. Appearance matters in

developing a perception. Many times a handsome man or a beautiful
woman with a smile are given preference over others due to positive
perception. Your first impression depends upon your appearance viz.,
how you are dressed; how you talk/walk and whether your body language
sends positive signals or negative signals.
d. Intensity : The intensity of an individual/object/situation relates to

the force with which it approaches you e.g. a person speaking loudly
with emotionally charged words, an object coming at a very high speed
towards you, an accident on the road, a very bright light glaring at you,
a very loud noise of an explosion, a strong odour, etc. attract attention
and affect perception. In other words, the intensity of the stimulus
determines the attention and the perception of the individual.
e. Size: The size of the stimulus (person or object) affects perception. For
example, a very fat person arriving at a party or a very thin and lean
patient in a hospital, bigger machines, larger pictures, a full page
advertisement, etc. Attract attention and affect perception.
f. Contrast: A contrast between the person/object and the background

affects perception, for example, a black spot on a white paper, dark
shirt and white pant, tall husband and short wife, very fair woman with
a very dark man, black and white, fat and lean, bold and normal v/s
italic and underlined, etc.
g. Motion: A moving person/object is noticed rather than a stationary

one.
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More particularly, a person/object moving at a very high speed is noticed

quickly in perception. The objects that are moving or changing attract
more than those which are stationary, for example, flashing neon signs,
are more attractive than the non-flashing ones.
h. Repetition : This principle states that a stimulus that is repeated gets

more attention than the one that appears only once. The messages that
are repeated frequently are perceived better than those that are given
only once, for example, repetitive failures in one subject, successive
victories at Wimbledon, headline news of riots, arson and killings,
frequent failures of a particular machine, repeated absence of an
employee, frequent job changes, constant rejection of jobs for quality,
consistent losses in business, repetitive failure of a particular product
in the market, etc.
i. Novelty : An unusual sight is always noticed and perceived more quickly

than a usual/routine matter, for example, a trapeze, a clown in a circus
doing acrobatics, an elephant riding a bicycle in the circus, a tiger
walking in the middle of the street in a city, a dog obeying the master's
instructions, a parrot picking an envelope for the astrologer, monkeys
doing acrobatics at the command of their master, a cobra dancing on a
tune of the flute, etc. Sometimes, monotony brings boredom and over-
confidence that result in the lowering of efficiency. A change in the job
design, job content improve the perception of the job thereby improving
efficiency.
4.5 Developing perceptual skills
Inspite of a lot of research and training inputs in the field of perception, it is

difficult to have a very logical and rational perception in day-to-day work life.
Some of the suggestions for developing perceptual skills may be mentioned
as follows:
a. Make accurate self-perception

b. Enhance self-esteem
c. Be empathetic
d. Avoid perceptual errors
e. Encourage free communication
f. Have positive attitude
g. Practice good impression management
4.6 Perception and Personality
The following are some of the rules of perception and personality:
a. Secure people perceive others as warm individuals and not as indifferent.

b. Thoughtful people do not make extreme judgements about others, but
can perceive grey areas.
c. Self-accepting people have faith in their individuality and perceive things
favourably.
d. Self-accepting people perceive themselves as accepted and liked by
others; others tend to distrust others.
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e. Self-accepting people also accept others easily as compared with the

non self-accepting ones.
4.7 What is Value?
Values are a dominant force that shape and determine the individual
personality and behaviour. Values may not be always written down or
expressed. But, they are manifested through the behaviour of the individual
and the groups. Individual values contribute to the group values. Values
represent the basic conviction that a specific mode of conduct is acceptable
or otherwise. Values have a great influence on the perceptions, attitudes and
motivational patterns of people. That is why understanding the meaning of
‘Value' is important for the study of Organisational Behaviour.
Thus, a Value may be defined as:
a. ‘The wor th of a person, an object or a situation which enables

distinguishing between the right and the wrong, good and bad.'
b. Values provide the standards of competence and morality
c. Transcend specific objects/situations/persons
d. Are relatively permanent and resistant to change
e. Are most central to the personality of an individual
f. Shape and determine behaviour in a group/society
4.8 Sources of Values
Values of individuals/groups come from different sources:

a. Family (parents, brothers and sisters)
b. Society(schools, teachers, class-mates, friends, religious organisations,
etc.)
c. Workplace (superiors, colleagues, subordinates, customers, suppliers,
etc.)
d. Government (politics, economics, policies, ideologies, philosophies,
etc.)
4.9 Manifestations of Values
Values are not constant; they keep on changing from person to person, place
to place, time to time, situation to situation. Individual values may be different
from group values. Values can be expressed by words, actions and behaviour.
Human values are manifested in various ways. Some of the expressions of an
individual's values can be one or more of the following forms:
a. Freedom
b. Pleasure
c. Mutual respect
d. Honesty
e. Obedience
f. Equality
g. Peace
h. Co-operation
i. Harmony
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j. Democracy
k. Discipline
l. Mutual trust
4.10 Types of Values
According to Rokeach, values can be broadly classified as follows:
4.10.1 Terminal Values
Terminal values are those, through which ultimate goals in life are sought to
be achieved. The following are some examples of terminal values:
a. A comfortable life
b. A sense of accomplishment
c. A secure life
d. A happy retired life
e. Freedom and independence
f. Self-esteem
g. Social recognition
h. Self-actualisation
i. A world of peace
j. Truth and non-violence
4.10.2 Instrumental Values
Instrumental values are those, through which the ultimate goals are achieved.
The following are some examples of instrumental values.
a. Ambition
b. Capability
c. Cleanliness and Housekeeping
d. Health and Safety
e. Courage
f. Co-operation
g. Honesty
h. Pardon
i. Logic and Rationality
j. Politeness and Courtesy
4.11 Classifications of Values (Allport and Associates) (TASRPE)
The following are the classifications of values:

a. Theoretical Values: discovering the truth through a critical approach
and reasoning.
b. Aesthetic Values: form, shape, size, colour, propor tions, quality,
harmony, etc.
c. Social Values: ser vice, help, love, af fection, co-operation, human
relations, etc.
d. Religious Values: religion, culture, custom, faith, traditions, etc.
e. Political Values: power, influence, leadership, control, money, etc.
f. Economic Values: exchange, usefulness, application, cost-benefit, balance
of trade.
26/MITSOT
Summing Up
This chapter helps you to understand the impor tance and definition of
perception. It also talks about social perception, i.e., every person has to
interact with other individuals in his life. There are several factors, internal
and external, affecting perception. Financial, educational, cultural background
affect internal factors. Status, appearance and familiarity are some of the
external factors affecting perception.
We have seen that values are not constant. Individual values are different from
group values, and they are a dominant force that shape and determine the
individual personality.
Self-assessment
1. The way one looks at people/ objects/ situations in the world is called
_____________
2. _____________ is the total result of an individual's perception, values
and attitude.
3. Learning is a ______________process.
4. ___________ of the stimulus determines the perception of the individual.
5. _____________ values are the means through which ultimate goals are
achieved.
1. The reaction of the individual cannot be neutral.

2. Satisfaction of social needs affects the perception of the individual.
3. Values are constant.
4. Values of individuals/groups come from different sources.
5. The messages that are given only once are perceived better than the
messages that are repeated frequently.
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Chapter V
Attitude in Organisational Behaviour
Learning Objectives
• What attitude is and how does it affect the organisation.
Contents
5.1 What is Attitude?
5.1.1 Definitions of Attitude
5.2 Theories of Attitude
5.3 Components of Attitude
5.4 Functions of Attitude
5.5 Factors affecting Attitude
5.6 Characteristics of Attitude
5.7 Manifestations of Attitude
5.8 Significance of Attitude in Organisational Behaviour
5.9 Attitude at a Glance
Summing Up
Self-assessment
5.1 What is Attitude?
‘Attitude is the frame of mind’. Attitude is the result of the individual's beliefs,
perceptions and values. It is observed that small children, say upto 5 years of
age have no attitude of their own. They are like ‘pots on the potter's wheel’.
Both their bodies and minds are flexible for moulding, as you desire. But,
after they start going to the school, they start developing attitude. Attitudes
are formed through experience. Attitude predisposes people to respond to
people, objects, events, environment in certain ways.
Attitude can be described as the way people feel about something. It is an

individual's characteristic way of responding favourably or unfavourably to
people, objects or situations. It is based on the individual' s own experience
and interpretations of the same leading to opinions and behaviours. An
individual's behaviour is a function of his/her attitude. It is a pre-disposition
of the individual to evaluate people, objects or situations.
5.1.1 Definitions of Attitude
a. ‘Attitude is a frame of mind that influences individual behaviour’.

b. ‘Attitude is the mental posture in response to people, objects or
situations’.
c. ‘Attitude is the combination of one's beliefs, perceptions and values’.
d. ‘Attitude is a learned pre-disposition to respond consistently in a
favourable or unfavourable manner with respect to a given individual,
group, object or situation’.
e. ‘Attitude is the basic foundation of human behaviour’.
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Attitude in Organisational
Behaviour
5.2 Theories of Attitude

The concept can be explained with the help of various theories based on the
basic insights of the process of formation of attitudes. These theories can be
broadly classified as follows:
a. Cognitive Consistency Theories
These theories are concerned with inconsistencies, which arise between the
related beliefs, knowledge and evaluation about an object. These theories are
further sub-classified as follows:
a. Balance Theory (Heider and Newcomb): This theory is based on

the individual's desire to keep the cognitive elements in harmony. A
change in attitude happens when there is an imbalance in the system.
Balanced cognitions are more stable and pleasurable than the imbalanced
ones Balance means harmony, while imbalance results in stress and
pressures. Interpersonal persuasive communication plays an important
role in changing attitudes.
b. Congruity Theor y (Osgood and Tannenbaum): This theory is based

on the fact that congruity is a stable state. Incongruity leads to changes
in attitudes. The focus is on evaluation of the source with associative or
dissociative assertion.
c. Affective Cognitive Consistency Theory (Rosenberg): This theory

is based on the interrelationship between Values and Attitudes. Changes
in theef fective components produce changes in the cognitive
components. There is a constant effort to bring about a balance between
the two.
d. Cognitive Dissonance Theor y (Leon Festinger): This theor y is

based on the study of various types of attitudes. Inconsistent cognition
is unpleasant. Individuals try to reduce the unpleasantness. It highlights
the disagreement between two cognitions (e.g. cognitive element and
environmental element)and the individual's attempts to change either
of the two.
e. Functional Theory (Katz and Kelman): This theory is based on the

assumption that attitudes and efforts are related to the motivation of
the individual. Attitude has 4 functions: knowledge, utility, ego and value
expression. Working conditions and social relationships also affect
attitudes.
f. Social Judgement Theory (Sheriff and Hoveland): This theory is

basedon the assumption that attitudes can produce distortions. Social
judgement can mediate for a change in attitude. A change in an
individual's attitude is possible through learning and de-learning.
5.3 Components of Attitude
Some of the components of attitude are:

a. Cognitive component
This component of attitude represents the opinions and beliefs of the
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individual. This is based on the real or assumed knowledge about the object
and is generally governed by a rational process of thinking and action.
b. Af fective component
This component of attitude represents the emotional segment of the individual.
This is based on non-rational commitments and can be positive, negative or
neutral towards the object.
c. Behavioural component
This component of attitude represents the intention to behave in a particular
way. This is based on the pre-disposition to act. It determines and controls
the actual reactions and behaviour of the individual.
5.4 Functions of Attitude
Basically, attitude has the following functions

a. Knowledge function
b. Adaptive function
c. Ego-defensive function
d. Value-expressive function
5.5 Factors affecting Attitude
The following are some of the functions that may affect attitude:
a. Family background
b. Early socialisation
c. Educational background
d. Work experiences
e. Group affiliation
f. Personal experiences
5.6 Characteristics of Attitude
The following are some of the characteristics of attitude:

a. Valence (the degree of favourableness or unfavourableness to the object)
b. Multiplicity (different perceptions and values create different attitudes)
c. Need relationship (basic/security/social/psychological/self-
actualisation)
d. Centrality (represents the importance of the object and resistance to
change)
5.7 Manifestations of Attitudes

a. Job satisfaction : Generally, an individual employee who has a positive
attitude has a high level of job satisfaction. This helps in decision-
making, interpersonal communication and group relationships.
b. Job involvement : This measures the degree to which the individual
identifies with the job and considers performance level as important.
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Attitude in Organisational
Behaviour
High level of job involvement is related to fewer absences, lower

employee turnover and a positive attitude.
c. Organisational Commitment : This measures the identification of
individual goals with those of the organisation. This results in a high
level of commitment and loyalty to the organisation. This is also a
manifestation of positive attitude.
5.8 Significance of Attitudes in Organisational Behaviour
The study of Organisational Behaviour is based on the principles of human

psychology. Attitude is a very important concept in human psychology. This
concept is studied from many different angles, since it is the attitude of the
people at all levels in the organisation viz. managerial, super visor y and
workers/ operators/ clerical staff, etc, that determines the organisational
behaviour of the people. In other words, the study and understanding of the
concept of attitude is the most important part of organisational behaviour,
because it affects the following:
a. Determines goals
b. Reconciles contradictions
c. Organises facts
d. Affects Employer-Employee relations
e. Affects Health/Safety/Welfare
f. Determines loyalty and integrity
g. Facilitates communication
h. Affects organisational change
i. Creates/avoids conflicts
j. Affects inter-personal relationships
k. Influences morale and motivation
l. Facilitates learning
m. Affects job satisfaction
n. Affects job performance
o. Determines organisational culture
p. Affects organisational efficiency and effectiveness
q. Affects the quality of life
5.9 Attitude at a Glance
a. Attitude is an inseparable part of human nature and is normally dormant.

b. Attitude is acquired through early socialisation, education and work
experience.
c. Attitude is often based on limited knowledge/information/experience.
d. Attitude becomes apparent through speech or behaviour in response
to an individual, object or situation.
e. Attitude can be rational or irrational irrespective of the individual's
intelligence.
f. Attitude is reinforced by beliefs (cognitive component), strong feelings
(affective component) and behaviour (action component).
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g. Attitude has a bearing on the individual's thinking or behaviour.

h. Opinion and emotion based attitude is more intense in expression and
attachment.
i. Attitude appears logical to the individual holding it, but illogical/
inconsistent to a neutral observer.
j. Attitude is rationalised and justified by the individual by (often
subconsciously) selective illustrations and experiences.
k. Attitude based on rational consideration of facts is comparatively easier
to change rather than the one based on strong emotional bias and
opinions.
l. Attitude is learned over a period of time. Therefore, it can be changed
by the same process and reversed (de-learning).
Summing Up
Attitude is an individual's characteristic way of responding to a person, object

or situation favourably or unfavourably. Cognitive consistency theories are
concerned with the inconsistencies which arise between beliefs, knowledge
and evaluation. There are several components to attitude. The factors that
affect attitude are family, education, work, and personal experiences.
In organisational behaviour, this concept is studied at all levels since it

concerns people at all levels in the organisation, viz., managerial, supervisory,
clerical staff, etc.
Self-assessment
1. Attitude can be described as the way people ____________ about

something.
2. _______________ is based on the individual's desire to keep the cognitive
elements in harmony.
3. Organisational commitment is a manifestation of _________ .
4. _______________ component of attitude represents the emotional
segment of the individual.
1. An individual employee who has a positive attitude has a high level of

job satisfaction.
2. Group affiliation does not affect attitude.
3. Valence is one of the characteristics of attitude.
4. Attitude can be rational or irrational irrespective of the individual's
intelligence.
5. Congruity is an unstable state.
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Personality
Chapter VI
Personality
Learning Objectives
• What personality is and its relevance in the organisation
Contents
6.1 What is Personality?
6.2 Major determinants of Personality
6.3 Personality Traits (Cattel's Traits Test)
6.4 Types of Personality
6.5 Personality and Organisational Behaviour
Summing Up
Self-assessment
6.1 What is Personality ?
Many times, we use the word ‘Personality' for attractive men or women. There
is no doubt that attractiveness is an important factor of a personality. In other
words, all good personalities are attractive. But, attractive people cannot be
said to have good personalities. Why? Because, attractiveness is necessary,
but not the only sufficient condition for being a good personality. Personality
is a combination of many factors and qualities in an individual.
Thus, Personality may be defined as:
a. Stephen Robbins: ‘A sum total of the effect, actions and reactions of an

individual to other individuals, groups or situations.'
b. Gordon Allport: ‘The dynamic organisation within an individual whose
psychological systems determine the unique adjustments with the
environment.'
c. ‘The total existence of a person -the assemblage of the qualities- physical,
mental and moral that set one apart from another, with a distinctive
individuality.’
d. ‘A Personality is to some extent like all other people, like some other
people and like no other people.’
Thus, the concept of personality includes:

a. Appearance and behaviour
b. Internal awareness of the self as a force
c. Organisation of measurable traits (inner and outer)
6.2 Major Determinants of Personality
Thus, personality is a result of many factors like biological, situational, cultural

and social factors. Each of these factors has certain sub-factors, which
contribute to the shaping and moulding of the personality.
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Thus, the personality of any individual can be analysed on the basis of the
following factors:
a. Biological factors
The following are some of the biological factors that determine

personality:
a. Heredity: Determined at conception, physical stature, facial,
attractiveness, sex, temperament, muscle composition, reflexes,
energy levels, biological rhythm, molecular structure of genes located
in the chromosomes.
b. Brain: Electrical Stimulation of the Brain (ESB) and Split Brain
Psychology (SBP).
c. ESB: Pleasurable v/s Painful areas; can be manipulated by ESB for
reducing stress and increasing creativity.
d. SBP: Planning on the left and Managing on the right (Henry Mintzberg);
the left and the right hemispheres control specific characteristics.
e. Physical characteristics and rate of maturing: Physical appearance
is extremely important; children exposed to social situations mature
faster than those who are not.
b. Family factors
The following are some of the family factors that deter mine
personality:
a. Family atmosphere
b. Loving, warm, caring and stimulating atmosphere
c. Cold, non-caring, non-stimulating atmosphere
d. Basic discipline
e. Social factors
The following are some of the social factors that determine

personality:
a. Social culture
b. Social status
c. Traditions, customs
d. Cultural factors
The following are some of the cultural factors that determine

personality:
a. Early formative years
b. Independence and aggression
c. Competition and co-operation
d. Beliefs, perceptions, values and attitudes
e. Towards self, family, society; organisations, work, money
f. Situational factors
The following are some of the situational factors that determine

personality:
a. Every individual is a complete person
b. Every individual is different
c. Every situation is different
d. Every individual-situation interaction is different
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Personality
e. Different situation > Different demands > Different behaviour >

Personality
6.3 Personality Traits (Cattel's Traits Test)
The following are some of the common personality traits:

a. Reserved v/s Outgoing
b. Less intelligent v/s More intelligent
c. Emotionally unstable v/s Emotionally stable
d. Dominant v/s Submissive
e. Serious v/s Happy-go-lucky
f. Expedient v/s Conscientious
g. Bold v/s Timid
h. Tough v/s Sensitive
i. Trusting v/s Suspicious
j. Practical v/s Imaginative
k. Shrewd v/s Forthright
l. Self assured v/s Apprehensive
m. Experimenting v/s Conservative
n. Self-sufficient v/s Group dependent
o. Controlled v/s Uncontrolled
p. Tense v/s Relaxed
6.4 Types of Personality
A Personality can be broadly classified as Type A or Type B on the

basis of the following characteristics:
Type A
a. Chronic sense of time urgency
b. Impatience
c. High achievement orientation
d. Strong competitive drive
e. High ambition level
f. Aggressive behaviour
g. Quick in responses
h. Quick decision making and actions
i. Fast speech and walk
j. Low level of tolerance
Type B
a. Easy going
b. Passive
c. Lack of achievement orientation
d. Lack of competitive drive
e. Lack of ambition
f. Submissive behaviour
g. Slow decision making and actions
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h. Slow speech and walk

i. High level of tolerance
j. Restrained in responses
6.5 Personality and Organisational Behaviour
The personality of the employee and organisational behaviour are inter-related

and inter-dependent. As attitude is at the core of the personality, organisational
behaviour of the employee depends upon the attitude and the personality of
the individual. Cer tain factors that need consideration to understand
organisational behaviour of employees may be mentioned as follows:
a. Locus of Control
Internal Locus of Control: Degree of belief that the individual is the master of
his/her own fate and can control and shape future events.
External Locus of Control: Degree of belief that they are pawns in the hands
of their fate, which is controlled by external forces, for example, luck/chance/
coincidence
Affected attributes: motivation, performance, job satisfaction, authority,

leadership, stressmanagement, etc.
b. Need Patterns
Achievement: Need to achieve goals

Affiliation: Need for co-operation with others
Autonomy: Need for freedom to make decisions
Dominance: Desire to exercise authority
c. Introversion v/s Extroversion

Introverts: turn inwards, are quiet, reflective, introspective, intellectual,
unsocial, love quiet atmosphere, etc.
Extroverts: turn outward, are sociable, lively, tough-minded, tell jokes, enjoy
parties, excitement, are impulsive, like change, care-free, quick-tempered,
active, aggressive, like to interact with others.
d. Authoritarianism
Love authority, rigid, judgmental, deferential to superiors, exploitative to
subordinates, resistant to change, lack of tact/sensitivity/adaptability, etc.
e. Machiavellianism (Niccolo Machiavelli)
Tendency to manipulate others for own goals, pragmatic, emotional distance,

ends justify the means, twist and turn facts to influence others, try to gain
control, manipulation to their advantage.
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Personality
f. Self-esteem
The degree of liking/disliking the self; indicator of: capability, importance,

success, job satisfaction, etc.
g. Self-monitoring
Ability to adjust with external factors. Striking contradictions in public and
private and ability to play multiple/contradictory roles, etc.
h. Tolerance for ambiguity
The degree of tolerance to uncertainty, ability to change without undue stress,

and capable of working in a turbulent environment.
i. Risk-taking
Time taken for decision-making, logical and rational decision-making,

subsequent actions for moderate risks.
j. Work-ethics orientation
Extremity leads to workaholism, normality leads to effective management,

balance between work and home results in a rational manager.
Summing Up
Personality is often confused with good looks, but in this chapter we have
seen that it is only one of the attributes of an individual's personality.
Personality is a combination of many factors and qualities in an individual.
The personality of an individual is determined by biological, family, social,
cultural, and situational factors. We have seen in this chapter that the
personality of an employee and organisational behaviour are inter-related.
There are several factors that need to be considered to understand the
individual's behaviour in an organisation which are adequately dealt with in
this chapter.
Self-assessment
1. ____________ is one of the social factors.

2. Aggressive behaviour is one of the characteristics of the___________
personality.
3. __________________ is the ability to adjust with external factors.
4. ______________ leads to workaholism.
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1. Attractiveness is an important factor of a personality.

2. Customs is one of the cultural factors that determine personality.
3. Individuals with Type B personality are restrained in responses.
4. The concept of personality does not include internal awareness
of the self.
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Morale and Motivation
Chapter VII
Learning Objectives
• How morale can affect productivity in an organisation.
Contents
7.1 Morale
7.2 Some Indicators of Morale
7.3 Major Determinants of Morale (Alexander Leighton)
7.4 Some Suggestions to Improve Morale
7.5 Morale and Productivity
7.6 Motivation
7.7 Importance of Motivation
7.8 Mechanism of Motivation
7.9 Motivation and Frustration
7.10 The Basic Theories of Motivation
7.11 Abraham Maslow's Theory
7.12 Frederick Herzberg's 2-Factor Theory
7.13 David McClelland's Theory
7.14 Douglas McGregor's Theory
Summing Up
Self-assessment
7.1 Morale
Why is it that some organisations are successful, while others are not? Why
is it that in some organisations, people seem to be happy, satisfied and
contented with their work, while in spite of all the facilities in some others,
they are not happy? Why is it that there are many people in this world, who
have a lot of money to enjoy material happiness, but who are still not satisfied
and happy? On the contrary, why is it that there are many people, who do not
possess a lot of money, but are still very happy and contented with their
lives?
Why is it that in one organisation, people work sincerely and feel happy in
doing so, while in another, people do not work with interest and satisfaction?
In the ultimate analysis, the former organisation is efficient and effective,
while the latter one is not. It is more important to understand as to ‘Why do
people work?' than ‘Why people do not work?'
The morale of the people is an extremely important factor in the success or

failure of organisations, be it waging a war against the enemy, running a
business, manufacturing a product or providing a service to society.
The following definitions will make the concept clearer:

a. Oxford Dictionar y: ‘Morale is the prevailing mood and spirit conducive
to willing and dependable performance.'
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b. Edward Flippo: ‘Morale is the mental condition or attitude of an

individual or a group which determines their willingness to co-operate
or otherwise.'
c. Dale Yoder: ‘Morale is the degree of zeal, enthusiasm, willingness and
confidence of an individual or a group to accomplish a task.'
Morale is a dynamic concept, which varies from person to person, time to

time and situation to situation. Morale is a group phenomenon, which
describes the level of favourable or unfavourable attitude of the employees
towards all aspects of their work.
7.2 Some Indicators of Morale
The following are some of the indicators of morale:

a. Absenteeism/Indiscipline
b. Grievances
c. Lack of communication
d. Poor listening
e. Lack of confidence
f. Aggression/frustration
g. Lack of mutual trust/faith
h. Lack of co-operation
i. High accident frequency rate
j. Low efficiency/effectiveness
(Note: The above list is not exclusive/exhaustive and may vary from place to
place)
7.3 Major determinants of Morale (Alexander Leighton)
According to Alexander Leighton, the following are the major determinants

of morale.
a. Confidence of the individual members in the organisational goals
b. Confidence of the individual members in leadership
c. Confidence of the individual members in their fellow workers
d. Confidence of the individual members in organisational efficiency
e. Working conditions (e.g. wage/salary, job security, work environment,
cleanliness and housekeeping, employee welfare facilities, future
prospects, etc.)
7.4 Some suggestions to improve Morale
The following are the suggestions that may help in improving morale.
a. Sound organisation structure
b. Proper manpower planning
c. Systematic and scientific recruitment and selection procedure
d. Appropriate training and development programmes
e. Systematic and scientific performance appraisal system
f. Efficient and effective organisational communication system
g. Sympathetic employee counselling
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h. Proper grievance handling procedure

i. Rational wage and salary structure
j. Proper delegation of authority
k. Assurance of job security
l. Fair and just reward/punishment system
7.5 Morale and productivity
Generally, high morale leads to high job satisfaction, which in turn, leads to
high productivity. This means that productivity should always rise as the
morale improves. Morale and productivity are inter-related and inter-
dependent.
7.6 Motivation
In any organisation, people work not only for money, but also for job
satisfaction and happiness. The manager has to communicate and lead and
also motivate his subordinates to work. To a large extent, the success of the
manager's leadership abilities depends upon his ability to motivate his people
to work. Motivation involves: the influence of the leader, the ability of the
follower and the perception of both about each other. Generally, it is observed
that high motivation leads to high job satisfaction and in turn to higher
efficiency.
Motivation is a force or an impulse which makes a man move physically and

mentally to achieve certain goals. Individual motivation is very important for
group motivation. Although it is true that “Money makes the mare go’’ in
modern business organisations, money is not the only motivating factor and
has its own limitations. Money is only a means to satisfy wants. Motivation is
something beyond that.
Motivation has been defined by:
a. Michael Julius as ‘a process of stimulating the self or subordinates to

get into the desired course of action.’
b. Dubin as ‘a force or impulse that moves a person to start and continue
an action to accomplish a certain goal.’
c. March and Simon as ‘a function of needs and drives that makes a
person take action to achieve the desired goals.’
Performance = (Ability X Motivation)
7.7 Importance of Motivation
a. Employees' performance is a result of their abilities and willingness .

b. If and when the employees are able, but not willing, it is necessary to
motivate them.
c. Motivation is the force that moves a person physically and mentally to
achieve goals.
d. Individual motivation plays an important role in group motivation.
e. Happiness and job satisfaction are functions of not only money but also
needs and drives.
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f. It involves (influence of the leader + ability of the followers + role

perception of both).
7.8 Mechanism of Motivation
All motivation in life starts with a need, - a need which is not satisfied.
Therefore a feeling of deprivation of a need is the starting point of motivation.
Then, there is an urge to satisfy the need, which results in the drive. Ultimately,
the drive continues to work until the need is satisfied and the 'goal' is achieved.
Need > Drive > Barrier Blockade > Goal

(Deprivation) (Direction) (Overt/Covert) (Achievement)
7.9 Motivation and frustration
Every individual carries a set of inner motives and drives which influence
behaviour. Individuals differ not only in their ‘ability to perform', but also in
their ‘will to perform'. Motives are expressed as needs, wants, drives or
impulses within the individual.
Every individual has/should have some goals to achieve. Goals are sometimes
referred to as the rewards hoped for. These rewards can be monetary or non-
monetary incentives, tangible or non-tangible. Managers should be able to
provide an environment in which appropriate goals and incentives are available
to subordinates to satisfy their needs.
Generally, an individual is motivated to work to achieve certain goals in order

to satisfy some of his needs. This follows a ‘Need-->Drive->Goal' cycle. But, in
actual practice, it is not that simple and the individual almost always meets
with some barriers in achieving his goals. This leads to ‘Fr ustration'.
Whenever a person is frustrated, the defence mechanism is triggered into
action. In organisational behaviour, frustration is manifested in one or more
of the following behaviours:
a. Aggression: A reaction to a situation wherein one's motives are blocked,

causing oneself to turn against the barriers in terms of verbal or physical
injury to the object, person or group causing the barrier.
b. Withdrawal : Leaving the field in which frustration, anxiety, or conflict

is experienced, either physically or psychologically.
c. Fixation : An unreasonable stubbornness, maintaining a persistent

non- adjusting reaction. The behaviour is repeated again and again even
though all the cues indicate that the response is not appropriate to the
situation.
d. Compromise : The individual realises the fact that he has to adjust

with the situation and give up some of the benefits in the short run in
order to achieve some long-term benefits. This can be seen in terms of
a change in needs or goals, with a ‘give and take' attitude.
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7.10 The Basic Theories of Motivation
Basically, the theories of motivation can be classified as follows:
a. Traditional theor y
This theory is based on Scientific Management by F W Taylor who advocated

that it is the manager's prerogative to decide the quantity, quality, the method
of doing jobs and the system of financial compensation for work.
b. Human Relations Theor y
This theory is based on the research studies of Elton Mayo and Associates at
the Hawthorne plant of the Western Electric Co. near Chicago (US), who
proved that the output of employees does not depend only on extrinsic factors
like working conditions alone, but also on the intrinsic factors of satisfaction
of their social and psychological needs.
c. The Human Resources Theory
This theory is based on the studies conducted by 20th century management

experts including Abraham Maslow, Frederick Herzberg, David McClelland,
Douglas McGregor, Peter Drucker, etc. who believed that people are motivated
to work, not only by money alone, but also by the satisfaction of their higher
order needs for authority, responsibility, achievement and meaningful work.
7.11 Abraham Maslow's Theor y
Abraham Maslow (1908-1970), an American psychologist found that work

motivation of human beings arises from the hierarchy of needs. According to
him, the needs of human beings, which motivate them to work, can be
organised on five different levels. He regards these needs as proponent in the
sense that as one need is satisfied, the next need level comes into play.
According to Abraham Maslow, a person is motivated due to his desire to

satisfy his various needs. His studies show the hierarchy of needs as follows:
a. Basic/physiological needs (e.g.: food, clothing, shelter, air, water, sex,

etc.)
b. Security needs (e.g. job security, family security, protection from hazards,
etc.)
c. Social needs (e.g. affection, friendship, acceptance, sense of belonging
to a group, etc.)
d. Psychological needs (e.g. self-esteem, ego, status, autonomy,
achievement, recognition, attention, appreciation, etc).
e. Self-actualisation and fulfilment (e.g. work itself is the motivation)
Maslow has classified these human needs into five levels. The first
two levels i.e. the physiological needs and the security/safety needs can be
considered as lower order needs, while the next three levels i.e. the social,
psychological and self-actualisation needs can be considered as higher order
needs. The lower order needs are primarily satisfied externally by economic
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rewards like wages, allowances, perquisites, bonus, etc., while the higher
order needs are satisfied internally through social and psychological rewards
like acceptance by the group or job satisfaction, etc.
The various needs identified by Maslow are not exclusive of each other,
but are inter-related, inter-dependent and overlapping, each higher level
need emerging before the lower level need disappears. There are no
watertight compartments between the needs. When the peak of a need is
passed, that particular need ceases to be a primar y motivator, and the
next higher order need begins to dominate. Thus, it is obser ved that even
if a need is completely satisfied, it still influences the behaviour of the
individual, mainly because of the inter-dependent and overlapping nature
of the various needs. This phenomenon can be shown as follows:
Figure 7.1 Abrahan Maslow's Theory
Maslow's theory has received wide recognition due to its intuitive logic and
ease of understanding. However, this model does not take into account the
individual differences in the intensity of the various needs. Subsequent
research in this field shows that differences in castes, creeds, customs,
traditions, religions, languages, education, knowledge, skills, cultures,
attitudes, environment, etc. play a very major role in determining the priority
of the needs of people in different countries.
7.12 Frederick Herzberg's 2-Factor Theor y
Frederick Herzberg has extended the work of Maslow and developed a

different model as a result of his research in work motivation. His findings
are based on his survey of more than 200 managers in 11 different industries
in the Pittsburg area.
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According to Herzberg, all needs and their satisfaction do not motivate

employees. This can be considered a further modification of Maslow's theory.
There are two sets of factors in motivating a person: Motivating Factors as
‘Satisfiers' and Maintenance Factors as ‘Dissatisfiers':
a. Maintenance Factors (Extrinsic/Dissatisfiers)

a. Personal life
b. Salary
c. Job security
d. Working conditions
e. Company policy and administration
f. Quality of supervision
g. Inter-personal relationships
b. Motivating Factors (Intrinsic/Satisfiers)

a. Status
b. Recognition
c. Advancement
d. Responsibility
e. Possibility of growth
f. Achievement
g. Work itself
According to Herzberg, the Motivational Factors are directly related with the
job itself and therefore are ‘content-oriented'. Their presence highly motivates
the person, but their absence does not cause dissatisfaction. On the contrary,
the Maintenance Factors are ‘context-oriented'. Their presence does not
significantly motivate the person, but their absence can cause dissatisfaction.
Their presence prevents dissatisfaction and maintains a certain minimum level
of motivation. Any reduction in these factors can affect motivation and reduce
the performance level of the person concerned.
Herzberg has made a very valuable contribution in the field of work motivation
and job satisfaction. He has further extended the applicability of Maslow's
theor y to actual organisational situations, drawing the attention of the
managements that they should pay attention to the ‘Motivating Factors' also
along with the ‘Maintenance Factors'. People do not work only for the extrinsic
maintenance factors alone, but also for the intrinsic motivational factors.
Therefore, in modern business organisations, managements should try to
review organisation structures, make job contents more meaningful and
challenging, provide a sense of achievement, give due recognition and
responsibilities.
Both, Maslow and Herzberg have contributed some of the fundamental

principles of work-motivation of people. But, there are some differences:
a. Maslow refers only to the needs or motives; while Herzberg deals with
the goals or incentives.
b. Maslow's hierarchy of needs is sequentially ordered in terms of
importance; while Herzberg's model does not have any sequential
preference.
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c. Maslow believes that any need can be a motivator, until it is relatively

unsatisfied; while Herzberg thinks that only intrinsic factors of the
higher order need serve as motivators.
7.13 David McClelland's Theor y
According to David McClelland, there are three types of needs that motivate
a person as follows:
1) Need for Achievement (nAch)

a. High desire for achievement
b. Moderate risks
c. Pre-occupation with the task
d. Satisfaction of accomplishment
e. Need for immediate feedback
2) Need for Affiliation (nAff)

a. A desire to belong to a group
b. A desire to interact with others
c. A desire to be liked by others
d. A desire to make routine jobs more bearable
e. A desire to live and work together
3) Need for Power (nPow)

a. A desire to control others
b. A desire to manipulate others
c. Political orientation
d. Leadership to influence others
e. High nPow with negative orientation v/s Low nPow with positive
orientation
7.14 Douglas McGregor's Theor y
Douglas McGregor, a Professor of Industrial Administration at Massachusetts

Institute of Technology (USA), described organisations as psychological
entities that can be effectively managed by their assumptions about motivation,
human nature and behaviour. He found that people are not motivated by
unsatisfied needs and drives alone, but also by assumptions and generalisations
of the managements about their employees.
According to Douglas McGregor, motivation implies certain assumptions,

generalisations and hypotheses by the management relating to human
behaviour in organisations. This can be done on the basis of either of the two
sets of assumptions as Theory X and Theory Y as follows:
1) Theor y X
a. An average human being has inherent dislike for work and will avoid it,
if he can.
b. Most people lack ambition, dislike responsibility, prefer to be directed
and want, above all, job security.
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c. Most people must be directed coerced, controlled and threatened with

punishment to get better results from them.
b. Theor y Y
a. The expenditure of physical and mental effort in work is as natural as

play or rest.
b. External control and the threat of punishment are not the only means
for bringing out efforts towards organisational goals. Man exercises
self-direction and self-control in the service of the objectives to which
he is committed.
c. The degree of commitment to objectives is proportional to the rewards
associated with the achievement.
d. The average human being learns, under proper conditions, not only to
accept, but also to seek responsibility.
e. The capacity to exercise a relatively high degree of imagination, ingenuity
and creativity in the solutions of organisational problems, is widely, not
narrowly, distributed among the population.
f. Under conditions of modern industrial life, the intellectual potentialities
of a human being are only partially utilised.
Summing Up
The morale of the work force is very crucial in an organisation. It determines

the success or failure of an organisation. The individual's behaviour in an
organisation is an indicator of the morale of the organisation.
High morale, we have seen, leads to high job satisfaction, which in turn leads
to high productivity. To keep morale high, the organisation should make
sure that their staff is motivated.
Motivation is the force that moves a person physically and mentally to achieve
goals. An in-depth study of the several theories of motivation will give ample
insight on how to keep your employees motivated.
Self-assessment
1. The ______________ of people is an extremely important factor in the

success or failure of organisations.
2. Morale is a ______________ phenomenon, which describes the level of
favourable or unfavourable attitude of employees towards all aspects of
their work.
3. _____________ are sometimes referred to as the rewards hoped for.
4. Maslow has classified human needs into ____________ levels.
5. According to Herzberg, motivational factors are directly related with
the job itself and therefore are __________.
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1. Morale varies from person to person, time to time and situation to
situation.
2. Working conditions do not determine Morale.
3. Herzberg deals with goals or incentives.
4. The various needs identified by Maslow are exlusive of each other.
5. According to Douglas McGregor, the degree of commitment to the
objectives is propor tional to the rewards associated with the
achievement.
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Chapter VIII
Group Dynamics
Learning Objectives
• How a group functions in the organisation
Contents
8.1 Inter-personal Relationships
8.2 Approaches to inter-personal relationships
8.2.1 A Needs Approach
8.2.2 An Exchange Approach
8.3 Basis of inter-personal relationships
8.4 The factors influencing inter-personal relationships
8.5 What is a group?
8.6 Why do people join groups?
8.7 Advantages of groups
8.8 Disadvantages of groups
8.9 Stages of group development
8.9.1 Forming
8.9.2 Storming
8.9.3 Norming
8.9.4 Performing
8.9.5 Adjourning
8.10 Characteristics of a group
8.11 Functions of a group
8.12 What is Group Dynamics?
8.13 Important factors of Group Dynamics
Summing Up
Self-assessment
8.1 Inter-personal Relationships
In any organisation, people have to come together to accomplish

organisational goals. Inter-personal relationships are a result of inter-personal
communication. Groups are a result of inter-personal relationships. So, inter-
group relationships are a result of inter-group communication. Initially, the
inter-relationships are formal, but, over a period of time, they become less
formal and work with more familiarity with each other. This gives rise to
work groups and work teams and these interactions are called ‘Group
Dynamics'.
However, in order to understand the subject of Group Dynamics, we must

first understand the meanings of inter-personal relationships, groups and the
relevant aspects of work groups.
Whenever we work in any organisation, we have to deal with different people

at dif ferent levels: seniors, peers and colleagues and subordinates.
Organisational goals and objectives cannot be achieved unless and until all
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the people working in the organisation understand and appreciate the same.
It is also not possible to do so, if there is no co-operation among the employees.
This requires good inter-personal relationships, which are the basis of co-
operation for the achievement of organisational goals.
8.2 Approaches to inter-personal relationships
It is interesting to observe that certain individuals are attracted to certain

individuals and not others. Inter-personal relationships can be basically studied
from two approaches:
8.2.1 A Needs Approach
This approach is based on Abraham Maslow's hierarchy of needs. An

individual may be attracted to another, if the needs are satisfied e.g. security,
social and psychological. Sometimes, some needs are already satisfied and
work as only maintenance factors; while some other needs are not and work
as the really motivating factors (Frederick Herzberg's 2-factor theory of needs).
There is also a Complementary Needs theory, which states that needs are
mutually complementar y e.g. a dominant person gets along well with a
submissive person wherein both the individuals feel that the relationship is
mutually rewarding.
8.2.2 An Exchange Approach
This approach is based on the observation that there is a Rewards v/s Costs
relationship. This means that individuals consider the cost involved v/s the
rewards in return for maintaining a relationship. In other words, there is an
exchange relationship. The rewards can be in the form of: love, money, status,
information, goods, services etc. while the costs can be in the form of: conflict,
disapproval, criticism, punishment, anxiety, frustration, etc. Life is ‘give and
take’ in organisational behaviour, people subconsciously think of the exchange
value of relationships and continue with the same as long as rewards outweigh
the costs.
8. 3 Basis of Inter-personal Relationships
a. Personal qualities: Like physical attraction, personal appearance,

honesty, sincerity, loyalty, reliability v/s dishonesty, rudeness, greed,
hostility, etc
b. Similarity : In beliefs, perception, values, interests, cognitive
dissonance, etc.
c. Familiarity : Of closeness, frequency of interaction, repetitive exposure,
etc.
d. Proximity : As in physical togetherness, reward-cost relationship, etc.
e. Emotional identity : Which is positive feelings v/s negative feelings
> relationship > behaviour > evaluation > judgement
8.4 Factors influencing inter-personal Relationships
There are various factors that affect inter-personal relationships among

employees as briefly described on the next page.
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a. Role of parents
Generally, every person spends the first few years with one's parents. During
this period, the child obser ves the way parents interact and behave with
others within the family as well as outside the family. Naturally, one's
behaviour is very highly influenced by one's own parents during the formative
years of life.
b. Self-identity
Every person is different and has an individual identity of his/her own. Self-
identity includes ‘I' and ‘Me'. It is the basis of self-esteem. Self-esteem leads to
self-respect, which is sometimes a barrier. Self-identity plays an important
role in developing inter-personal relationship with others.
c. Communication
The communication ability between individuals is an extremely important

factor that decides the nature of inter-personal relationships between them.
Communication is a vehicle to convey ideas, feelings, emotions, sentiments,
views, opinions, thoughts, etc. Inter-personal communication is the core of
inter-personal relationships; without proper communication, it is not possible
to establish inter-personal relationships.
d. Basis of attraction
People are attracted towards each other due to various reasons. Children are
attracted due to colours, toys, games and other material things. Teenagers
are attracted towards each other due to hobbies, games, studies, etc. Adults
are attracted mainly due to physical and mental characteristics, similarity of
cultures, customs, traditions, etc. Satisfaction of mutual needs becomes the
basis of mutual attraction.
e. Role of rewards
Inter-personal relationships depend upon the rewards that accompany

behaviour. The rewards are not necessarily in the form of money; they can be
in the form of appreciation, recognition, apology, co-operation, help, etc. Inter-
personal relationships are strengthened or weakened according to these
rewards that exist between individuals.
f. Reciprocity
Generally, it is observed that people have a tendency to treat others as they

are treated. ‘Reaction is equal and opposite to action' .The behaviour is
reciprocal with that of others.
g. Norms and Rules
An informal relationship does not have many strict norms or rules of behaviour.
Probably that is why it is called informal. But, in business organisations, there
are certain norms and rules of behaviour that are important in the inter-
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personal relationship. They reduce uncertainty and improve predictability of

behaviour.
h. Social intelligence
Social intelligence means the intelligence required to behave properly in social

groups. It helps to detect clues for the other person's behaviour or
expectations.
8.5 What is a Group?
A group can be defined as:
a. Robert Bales: ‘A number of persons engaged in interaction with each

other with face-to-face communication.’
b. Raymond Cattell: ‘A collection of individuals in which existence of all
is necessary for the satisfaction of individual needs.’
c. Otto Klineberg: ‘Two or more individuals who interact and influence
each other for a certain time.’
d. Krech and Crutchfield: ‘Two or more individuals forming a social
unit with specific roles and explicit psychological relationships among
themselves.’
8.6 Why do people join groups?
Man is a social animal and he likes to be associated with Groups. But, on

deeper scrutiny, we find that there are other reasons too for people joining
groups. Some of them may be mentioned as follows:
a. People join groups for the satisfaction of their psychological needs e.g.:
self-esteem, ego, status, attention, recognition, appreciation, etc.
b. People join groups for the satisfaction of their social needs e.g.: affection,
friendship, acceptance, sense of belonging, etc.
c. People join groups for the satisfaction of their security needs e.g.: job
security, family security, property security, etc.
8.7 Advantages of groups
The following are the advantages of a group:

a. Groups give better knowledge and information .
b. Groups have the benefit of collective wisdom.
c. Group decisions are better accepted by the members of the group.
d. Group decisions have a better legitimacy.
e. Groups facilitate problem solving.
8.8 Disadvantages of groups
The following are the disadvantages of a group:

a. Group activities are more time consuming.
b. Groups exert pressures on members to conform to group norms.
c. Groups can experience domination by a few members.
d. Groups have hazy responsibilities.
e. Group decisions are delayed.
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8.9 Stages of group development
Groups in an organisation are not formed overnight. They take time depending
upon the organisational structure, organisational culture, number of people
involved, the nature of the task to be accomplished, the complexity of the
job, requirement of special skills, interpersonal communication, etc.
Generally, any group goes through the following stages to form and work:
8.9.1 Forming
In the initial stages of group formation, there is a feeling of uncertainty about

the purpose, structure, leadership, capability about themselves, etc.
8.9.2 Storming
A little later, there is resistance by some members to the formation of the

group mainly due to lack of inter-personal communication, etc.
8.9.3 Norming
Once the above two stages are over, members develop a closer relationship.
There is a better group cohesiveness with a sense of group identity. There are
common expectations. In case of any deviation of behaviour by any member,
there is an effort towards correction of behaviour.
8.9.4 Performing
After the forming stage, the group gets ready to perform. It becomes fully
functional and actually performs tasks.
8.9.5 Adjourning
Normally ‘Performing' is the last stage in many groups which continue to

function. But sometimes some groups are formed temporarily for particular
tasks or projects that are time bound. After the task is over, the temporary
groups are dissolved.
8.10 Characteristics of a group
The following are the characteristics of a group :

a. Two or more individuals come together to work,
b. There are common goals, objectives and tasks,
c. There is interaction with each other,
d. There is a sense of belonging,
e. Norms and values are shared among members.
8.11 Functions of a group
The following are the functions of a group:

a. Satisfaction of security needs of the members: self, family, job,
belongings, property, etc.
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b. Satisfaction of social needs of the members: love, affection,

affiliation, sense of belonging.
c. Satisfaction of psychological needs of members: ego, self-esteem,
appreciation, rewards, etc.
d. Satisfaction of cognitive needs of the members: sense ofidentity/
recognition/values/beliefs, etc.
e. Satisfaction of achievement-needs of members: sense of goals,
objectives, job satisfaction, etc.
8.12 What is Group Dynamics?
Group dynamics is a series of interactions between people working in the

organisation. Group dynamics may be defined as:
a. ‘The interaction between members of the group in a social situation.'

b. ‘The way in which a group is formed, organised and conducted for the
achievement of common goals.'
c. ‘A process of change to adopt new ideas/ knowledge/ methods/ systems
for development.'
d. ‘A process through which members interact with each other for the
accomplishment of common goals.'
e. ‘Implies common thinking, consensus decisions and consistent actions
for common goals.'
8.13 Important factors of Group dynamics
a. Organisational policies/strategies
Organisational policies and strategies play an important role in developing

group dynamics in favour of or against the organisation. Liberal policies may
facilitate group dynamics. But, strict policies restrict the same.
b. Organisational culture
Organisational climate is a result of the organisational culture. A healthy and

co-operative organisational culture helps group dynamics. But cut-throat
competition among employees and mutual distrust between superiors and
subordinates can mar group dynamics.
c. Rules and Regulations
Administrative rules and regulations are the manifestations of organisational

policies and procedures. Very strict rules and regulations do not permit group
dynamics to flourish, but, flexible ones help.
d. Physical working conditions
The working conditions of employees have an effect not only on the health
and safety of the employees, but also their morale and motivation. As a result,
this also affects group dynamics.
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e. Limitations to resources
People, machines, tools, equipment and materials are the main resources for
employees to work and produce results. Adequate quantity and quality of
resources help group dynamics to work in favour of efficiency. Otherwise,
group dynamics suffers.
f. Authority-responsibility relationship
Authority should be commensurate with responsibility and both of them

should be balanced for successful effects of group dynamics. In case of in-
equilibrium groups cannot be effective.
g. Organisational communication
Organisational communication is an extremely important factor for the success

of group dynamics in an organisation. Open communication channels facilitate
group dynamics to the favour of organisational efficiency. In cases otherwise,
people are not interested in working in groups.
h. Motivation of the members
High morale leads to high motivation which in turn, leads to high job
satisfaction leading to higher organisational efficiency. This is a chain of actions
and reactions, which affect group dynamics.
i. Inter-personal conflicts
Inter-personal relationships are very important in group dynamics. They lead

to inter-group relationships. If they are not cordial enough, they lead to inter-
personal conflicts, which affect group dynamics negatively.
j. Management attitude
Management attitude towards group dynamics can var y from ‘Dictatorial

to Democratic'. The growth and development of group dynamics depends
upon the attitude and style of management. A too autocratic style of
management may not allow group dynamics to function and a too
democratic style of management may not help group dynamics bring
organisational benefits.
Summing Up
In the very first chapter we understood that an organisation is made up of

people and not bricks. When people come together, there is inter-personal
communication which leads inter-personal relationships. Several factors
influence inter-personal relationships, such as the role of parents, self-identity,
basis of attraction, reciprocity, etc.
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The inter-personal relationship between individuals leads to the formation of

groups which has its own advantages and disadvantages. Group dynamics is
a series of interaction between people working in the organisation.
Organisational policies and strategies play an important role in developing
group dynamics in favour or against the organisation.
Self-assessment
1. Management's attitude towards group dynamics can vary from dictatorial

to _____________.
2. High morale leads to high _____________.
3. People join groups for the satisfaction of their social __________________.
4. Group activities are ____________ consuming.
5. ____________ policies may facilitate group dynamics in an organisation.
1. Inter-personal relationships are a result of inter-personal communication.

2. Abraham Maslow's theory is based on a reward vs. cost relationship.
3. In the exchange approach theory, the rewards can be in the form of
love, money, status, etc.
4. Self-esteem leads to self-respect.
5. Group decisions are quick.
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Conflict Management
Chapter IX
Conflict Management
Learning Objectives
• Conflicts
• How to resolve conflicts
Contents
9.1 Conflict
9.2 Sources of a Conflict
9.3 Factors involved in a Conflict
9.4 Types of Conflicts
9.5 The traditional view of a Conflict
9.6 The modern view of a Conflict
9.7 A functional Conflict (wanted/constructive)
9.8 A dysfunctional Conflict (unwanted/destructive)
9.9 Managing conflicts
9.10 Johari Window
9.11 Conflict resolution outcomes
Summing Up
Self-assessment
9.1 Conflict
An organisation is a group of people working together to achieve common

organisational goals systematically and scientifically with the help of given
resources viz. people, machines and materials, etc. Therefore, whenever two
or more people come together in connection with some work, there is bound
to be some difference of opinions, views, ideas etc. If the concerned individuals
themselves through mutual discussions can resolve these differences, without
intervention by superiors and within a reasonable time frame, it is always
desirable. But, many times these differences between individuals and groups
cannot be resolved by themselves so easily and take the shape of a conflict
which needs to be intervened in by superiors for its resolution. Therefore, it
is necessary to understand certain fundamental concepts about conflicts.
Whenever two or more people with different family backgrounds, educational

backgrounds and cultural differences interact with each other, the stage is
set for potential conflict. Generally, a conflict situation is a result of differences
in ideas, views, opinions, beliefs, perceptions, values, attitudes, and practically
all aspects of organisational behaviour. In other words, any disagreement
between two or more people is the first step of the process of a conflict.
Conflict has been defined as:
a. Chung and Meggison: ‘A struggle between incompatible needs /

wishes/ideas / interests of people.’
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b. Kilman and Thomas: ‘A condition of objective incompatibility between

values/goals, as a result of deliberate interference and emotional hostility
with another's goal achievement.’
c. Stephen Robbins: ‘A process in which an effort is purposefully made by

an individual/group to block the efforts made by another individual
group which results in frustrating the accomplishments of the other's
goals and furthering interests.’
A situation in which there is a difference of opinions/ ideas/views/interests

/efforts of two or more individuals/groups creating tensions for either or
both.
9.2 Sources of conflict
A conflict can arise due to various reasons, e.g. difference between: individual
goals and group goals, individual values and group values, short term planning
v/s long term planning, recruitment v/s promotions, performance appraisal,
lack of communication, leader v/s followers, inter-departmental co-operation
and co-ordination, old methods v/s new methods, traditions v/s systems, etc.
Generally, a conflict arises due to incongruity in:
a. Goals (e.g. individual goals v/s group goals, group goals v/s
organisational goals)
b. Values (e.g. personal values v/s group values)
c. Cognition (e.g. organisational view of employees and vice-versa)
d. Emotions (e.g. IQ v/s EQ of the employees, emotions v/s tasks)
e. Behaviour (e.g. sincere and honest v/s insincere and dishonest)
9.3 Factors involved in a conflict
a. Antecedent conditions (e.g. resources, differences in opinions/

perceptions, etc.)
b. Affective states (e.g. stress, strain, anxiety, hostility, etc.)
c. Cognitive states (e.g. beliefs, perception, values, attitudes, awareness
etc,)
d. Conflicting behaviour (e.g. ranging from passive resistance to overt
aggression)
9.4 Types of conflicts
a. Intra-personal conflict
This type of conflict is manifested when an individual is confronted with a

personal problem and the individual is in a dilemma regarding a decision on
or a solution to the problem. There is a goal conflict or a role conflict, which
leads to stress, strain, anxiety, tension etc.
b. Inter-personal conflict
This type of conflict is seen when two or more individuals having different
family backgrounds, educational backgrounds, work backgrounds interact with
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Conflict Management
each other and when there is a difference between their ideas, opinions, views,
beliefs, perceptions, values, attitudes etc.
c. Intra-group conflict
This type of conflict occurs within a group and is concerned with the group.
In this situation, the group faces a situation in which group members are not
clear about group goals and values. Many times there are differences within
the group about the goals or the means to achieve them. This results in
stress and tension in the group, affecting cohesiveness and co-operation in
the group.
d. Inter-group conflict
This type of conflict is commonly seen between two or more groups whenever
there is a difference between goals, values, views, etc. This is common between
the management and union, two rival groups within a trade union, etc. wherein
there is disagreement between groups. This results in stress and tension
between the concerned groups leading to lack of understanding and co-
operation in organisational activities.
9.5 The traditional view of a conflict
The traditional view of a conflict can be briefly summarised as follows:

a. Conflict is bad, negative and must be avoided at any cost.
b. A conflict is caused by trouble-makers, boat-rockers and prima-donnas.
c. Scapegoats are unavoidable as a result of a conflict.
d. A conflict can be resolved by formal authority/command.
e. A conflict can be resolved by delay in decision-making, bringing the
defence-mechanism into action and pseudo solutions.
9.6 The modern view of a conflict
The modern view of a conflict can be briefly summarised as follows:

a. A conflict is a natural and inevitable phenomenon of life.
b. A conflict depends upon the physical and structural factors of the system.
c. A conflict is an inevitable part of change, innovation and organisational
development.
d. A conflict at an optimum level can be good for growth, progress and
development.
e. A conflict need not be avoided or encouraged, but must be managed
properly.
9.7 A functional conflict (wanted/constructive)
A functional conflict is the one that is based on logical and objective thinking,
application of systematic and scientific problem solving techniques and
consensus decision making in organisations. Therefore, such a conflict can
help communicate decisions accordingly to all concerned and bring about
creativity, innovation and the progress of the organisation in the long run. A
functional conflict is constructive. It supports and organisational goals and
improves the performance of groups.
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Some of the major features of a functional conflict may be summarised

as follows:
a. It implies logical, rational and objective thinking by members .
b. It clarifies the goals to all concerned.
c. It helps in identifying problems and settling differences through
discussions.
d. It helps in systematic and scientific problem solving.
e. It improves perceptions and attitudes of the concerned people.
f. It promotes creativity and innovation of individuals/ groups.
g. It encourages group cohesiveness and better team-work.
h. It provides for a system of checks and balances within the organisation.
i. It helps to improve the morale and motivation of people.
j. It improves the overall organisational performance.
9.8 A dysfunctional conflict (unwanted/destructive)
A dysfunctional conflict is one that is based on illogical and subjective thinking,

emotional outbursts, lack of systematic and scientific problem solving
techniques and diversity in decision making by the members of the group.
Therefore, such conflicts are harmful to organisational leadership, team
building, growth and development in the long run. A dysfunctional conflict is
destructive. It obscures organisational goals and hinders the performances
of groups. Some of the more important features of a dysfunctional conflict
may be summarised as follows:
a. It implies illogical and subjective thinking.

b. The goals of the team are not clear to all concerned.
c. It hampers systematic and scientific problem solving.
d. It focuses on short-term goals at the cost of long-term goals.
e. It creates stress and strain on individuals/groups.
f. It creates a lack of mutual trust among the members of the group.
g. It reduces co-operation between members of the group.
h. Decision-making is replaced by infighting.
i. It discourages creativity and innovation, jeopardising growth and
development.
j. It adversely affects overall organisational performance.
9.9 Managing a conflict
Thus, having accepted the fact that in modern organisations conflicts between
people are inevitable, care should be taken that (i) the number of conflicts are
kept at a minimum (ii) conflicts are kept at a functional and rational level and
(iii) conflicts do not hinder overall organisational efficiency and effectiveness.
But how can this be achieved?
As every individual is different, every organisation too is different. As people

change from time to time, organisations too change from time to time. Every
situation is different. Therefore, there cannot be a standard formula for
resolving all conflicts in business organisations. The manager concerned would
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Conflict Management
have to apply a contingency approach while resolving a conflict between two

or more individuals/groups. However, a large number of studies in this area
have revealed certain basic principles of conflict management.
Some of the suggestions for achieving this goal may be summarised as follows:
a. Avoidance
This is the first and perhaps the best way to avoid a conflict. This involves
withdrawal from/suppressing of the conflict.
b. Smoothening
This is the second step, which involves playing down dif ferences and
emphasising common interests between the conflicting parties.
c. Strengthening of resources
This is the third step. In case the conflict is caused due to a scarcity of
resources (e.g. people, machines, materials, etc), strengthening of the
resources can help resolve the conflict.
d. Super-ordinate goals
Sometimes, it is the goals that may cause a conflict. Creating a shared goal
that cannot be attained without the co-operation of each of the conflicting
parties.
e. Problem solving
This is an art, science and technique. A face-to-face meeting of the conflicting

parties to identify problems and resolving them through open discussions
may help resolve the conflict.
f. Compromise
Life is ‘Give and Take'. In other words, it is a compromise (Win-Win situation).

Each party to the conflict gives up something of value, to achieve something
else and thus helps to resolve the conflict amicably.
g. Altering human variables
Perceptions, values and attitudes can be changed by training and development

programmes for employees. Using behavioural change techniques to alter
attitudes and behaviour can help resolve the conflicts.
h. Authoritative command
Sometimes some conflicts cannot be resolved by any of the above methods/

techniques. In such cases, the management has to use its formal authority to
resolve conflicts.
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k. Altering structural variables
Sometimes, there are certain structural defects in the organisational structure

itself that cause conflicts frequently. In such a case, changing the formal
organisational structure and interaction patterns may help the resolution of
the conflict. e.g. job re-design, job rotation, job evaluation, creating
coordinators.
9.10 Johari Window
This model was developed by Joseph Luft and Harry Ingham after whom it is
called Johari Window. It is a highly popular framework for analysing the
dynamics of inter-personal behaviour and resolving inter-personal conflicts.
The model is based on the assumption that every individual has 4 quadrants
of his/her personality and all the quadrants need to be considered during
interaction. This model facilitates the understanding of inter-personal
relationships and conflicts in organisational contexts. The model can be
graphically presented as follows:
a. Open Self
In this area, the individual is known to the self as well as to others. This
shows the extent to which two or more persons can give and take, work
together and enjoy common experiences. The larger this area, the greater is
the individual's contact with the real world. Such individuals make good
friends and good leaders. Their social interactions are without any bias or
prejudice. Therefore, interaction is marked with openness and compatibility
with little chance of an inter- personal conflict.
b. Blind Self
In this area, the individual is blind to certain traits/qualities in the self which
are known to others but not to the self. Sometimes, an individual irritates
others unintentionally due to certain blind spots in perception. The individual's
blind spots can be certain weaknesses e.g. bad mannerisms/etiquette, bad
habits, inabilities/incapacities, etc. These can be also some of the strengths
of the individual e.g. aptitudes, talents, potential, communication, forceful,
personality, etc. The individual's usual tendency is to feel good when he realises
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Conflict Management
his blindness about the strengths, but he feels bad when he is told by others
about his weaknesses and he resists to accept the same. This gives rise to
the potential for an inter-personal conflict.
c. Hidden self
In this area, feelings, emotions and motivations are known to the individual,
but not to others. The true feelings and attitude towards others remain a
secret for others. The hidden self corresponds to the closed drawers containing
personal secrets relating to the individual's fears, phobias, troubles, complexes,
etc. which are known to the Individual, but not to others. The individual always
tries to hide them for fear of being exposed and rejected by others. Thus,
there is potential inter-personal conflict.
d. Undiscovered self
In this area, certain feelings, emotions, motivation, love, affection, anger,

hatred, etc. are neither known to the individual himself nor to the others.
Firstly, the individual should try and find out the undiscovered part of his
personality. Then secondly, others who interact with him should learn and
understand. An interaction in this area is highly explosive. This part of the
individual's personality is undiscovered and therefore provides for a potential
inter-personal conflict.
9.11 Conflict resolution outcomes
The resolution of any interpersonal conflict situation can be described as

follows:
There can be 4 possibilities of conflict resolution outcome:

a. Lose-Lose: Both the par ties lose, because they don't want to
compromise.
b. Win-Lose: One party wins and the other loses, depending upon various
factors.
c. Lose-Win: One party loses and the other wins, depending upon various
factors.
d. Win-Win: Both the parties aim at solving the problem, rather than
beating others.
Summing Up
Whenever two or more people come together in connection with some work,
there are bound to be differences in opinions, views, ideas etc. Many a times
these differences are not resolved amicably by employees and the management
has to step in. Understanding conflicting situations and resolving them is
very crucial for the management of any organisation. The Johari Window
developed by Joseph Luft and Harry Ingham is a very popular framework for
analysing the dynamics of inter-personal behaviour and resolving inter-personal
conflicts.
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Self-assessment
1. Conflict is a condition of ____________ incompatibility between values

and goals.
2. A conflict is a ___________ and __________ phenomenon of life.
3. The Johari Window is used for analysing the dynamics of ______________.
1. Withdrawal is the best way to avoid a conflict.
2. Modern view of a conflict is bad and negative.
3. Logical, rational and objective thinking is called functional conflict.
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Leadership
Chapter X
Leadership
Learning Objectives
• Various types of leadership
• Team-building
Contents
10.1 Leadership
10.2 Importance of leadership in business organisations
10.3 Evolution of leadership
10.4 Theories of leadership
10.5 The Traits Theory
10.6 Some traits of effective leadership
10.7 The Behavioural Theories
10.8 The Two-Dimensional Model
10.9 Rensis Likert's 4-Systems approach
10.10 The Situational theories
10.11 The Contingency theories
10.12 The Path-Goal theory of leadership
10.13 The Life Cycle Theory
10.14 Autocratic leadership
10.15 Democratic leadership
10.16 Laissez-faire leadership
10.17 Functions of leadership
10.18 What is team-building?
10.19 The main objectives of team building
10.20 The pre-requisites for developing effective teams
10.21 The process of team building
10.22 Characteristics of effective teams
10.23 Values of a team
10.24 Building effective teams
Summing Up
Self-assessment
10.1 Leadership
Every organisation needs management and management needs leadership.

There are many examples of organisations, which have failed for want of
effective leadership and there are many more examples of organisations
which have gone from losses to profits due to effective leadership. In other
words, the success or failure of an organisation depends largely upon
leadership.
Thus, leadership may be defined as:

a. Keith Davis: ‘The ability of a person to persuade others to seek
achievement of group goals efficiently and effectively.’
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b. R. M. Stogdill: ‘The process of influencing and helping others to work

enthusiastically towards task related objectives.’
c. Robert Tannenbaum: ‘The art and science of influencing and motivating
a group of people in a given situation towards common organisational
goals.’
10.2 Importance of leadership in business organisations
An organisation requires management to achieve organisational objectives

including economic performance. A good manager must be a good leader
since he has to get work done from his people. While dealing with his
subordinates, he has to communicate, guide and inspire them towards the
organisational goals. This requires leadership qualities in the manager.
Leadership qualities in the manager play a very important role in achieving
goals.
Some of the major factors of impor tance of leadership in business

organisations may be summarised as follows:
a. It helps to build up the group.

b. It helps to create confidence among members.
c. It motivates group members.
d. It inculcates discipline.
e. It helps to build work teams .
f. It helps to improve organisational efficiency.
10.3 Evolution of leadership
A large number of research studies all over the world have shown that like
organisation and management, leadership also has evolved through stages.
Some of the major landmarks in the evolution of leadership may be
summarised as follows:
a. The Coercive stage
This is the first stage of evolution of leadership based on authority and power
of the leader. Some of the major features of this stage of leadership are as
follows:
a. Dictatorial style of working

b. Autocratic and centralised decision making
c. Force to obey instructions of the superior
d. Fear of job insecurity
e. Unwilling acceptance by followers
b. The Mechanistic stage
This is the second stage of evolution of leadership based on organisational

structures, technology and scientific management. Some of the major features
of this stage of leadership are as follows:
a. Increasing complexity of organisational structures

b. Rapid changes in technology
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Leadership
c. Emergence of scientific management

d. Efficiency as a function of working conditions
e. Influence of material factors on behaviour
c. The Psychological stage
This is the third stage of evolution of leadership based on the psychological

factors in human behaviour. Some of the major features of this stage of
leadership are as follows:
a. Based on Hawthorne experiments by Elton Mayo and Associates

b. Psychological factors play a vital role in organisational behaviour
c. Extrinsic factors of motivation e.g. recognition, appreciation, motivation,
etc.
d. Rewards are more effective than punishment
e. Participation ensures more commitment to the task
10.4 Theories of leadership
During the last century, different management experts have developed various
theories of leadership.
The major theories of leadership may be enlisted as follows:
a. Traits Theory (by Ordway Tead and Chester Bernard)

b. Behavioural Theories (by Stogdill, Likert, Katz and Kahn)
c. Contingency Theories (Fiedler's theory, Path-Goal theory, Life-Cycle
theory, Vroom- Yetton theory)
d. Leader-Member Exchange Theory
e. Managerial Grid
10.5 The Traits Theor y
In the early stages of organisational development, it was believed that ‘Leaders

are born'. This theory is based on the assumption that leadership depends
upon the traits of successful leaders. Some of the major features of this approach
are as follows:
a. It is a traditional theory
b. It is based on the belief that ‘Leaders are born and not made'
c. It is based on the assumption that physiological and psychological traits
of leaders determine the success or failure of leadership
a. Strengths
a. It banks upon the personal qualities of the leader

b. It draws on the influence of the charisma of the leader
c. There is an emotional bond between the leader and the followers
d. There is loyalty by the followers
e. Inter-personal relationships among members of the group are better
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b. Weaknesses
a. The traits are not exhaustive/universal

b. There is a lack of consideration to the variety of internal situations
c. There is a lack of consideration to other external variables
d. There is a lack of scope for development of followers
e. There is a possibility of exploitation of followers
10.6 Some traits of effective leadership
a. Knowledge of the job/task

b. Intelligence
c. Self-respect
d. Self-confidence
e. Courage
f. Logical thinking
g. Rational/scientific judgement
h. Decision-making
i. Communication ability (oral and written)
j. Creativity
k. Initiative and drive
l. Problem-solving ability
m. High morale and motivation
n. Positive attitude
o. Authority and responsibility
p. Flexibility in approach
q. Conviction and commitment
r. Impressive personality
10.7 The Behavioural Theories
This is the second approach to leadership, which is based on human

behavioural studies of different people in organisations. It believes that the
success or failure of leadership depends not only upon the traits of the leader,
but also upon the behaviour of the leaders and the followers in an organisational
context.
10.8 The Two-Dimensional Model (Ohio State University)
a. Consideration Dimension: The degree to which the leader considers

the feelings of the people vis-à-vis the task.
b. Initiating Structure Dimension: The degree to which the leader

considers goal attainment vis-à-vis feelings of the people.
a. Strengths
a. There is consideration for the behaviour of both, the leader and the
followers.
b. There is consideration to both, the tasks and the feelings of the people.
c. There is better planning and delegation of authority.
d. There is better organising and utilisation of resources.
e. There is better team-building and group performance.
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b. Weaknesses
a. Interpersonal relationships vary from time to time and task to task.
b. Organisational Behaviour is also a function of psychological factors.
c. Group Dynamics play an important role.
d. Inter-personal conflicts may affect group performance.
e. Gap in perceptions of the leader and the followers may affect group
performance.
10.9 Rensis Likert's 4-Systems approach
According to Rensis Likert, there are 4 systems in which leaders operate.

These four systems can be briefly summarised as follows:
System 1: Exploitative Autocratic Leadership
a. The goal setting is centralised

b. The decision making is also centralised
c. The control on behaviour is too strict
d. There is limited downward communication
e. There is fear of punishment for disobedience
f. There is lack of mutual trust
System 2: Benevolent Autocratic Leadership
a. Goal setting and decision-making mostly centralised

b. Fair amount of downward communication
c. There is punishment along with occasional rewards
d. The control systems are mostly centralised
e. Condescending mutual trust exists
f. Better morale and motivation
System 3: Consultative Leadership
a. Goal setting is done in consultation with members

b. Decision-making also by consultation with members
c. Organisational communication is better
d. Job involvement, rewards and punishment are fair
e. Delegation of authority is with moderate control
f. Good performance and productivity
System 4: Participative Leadership
a. Goal setting and decision making are done by total participation by

members
b. Organisational communication is fairly wide-spread
c. Participation results in involvement and co-operation
d. There is extensive delegation of authority
e. Fair control with positive discipline
f. Performance is excellent
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10.10 The Situational Theories
This is a more practical oriented approach based on the assumption that

situations vary from time to time and that every situation is different and
demands different treatment by leaders. Therefore, there cannot be a universal
prescription for leadership. Some of the major features of this approach are
as follows:
a. Leadership is a result of a particular situation.

b. A Leader in one situation may not be a leader in another situation.
c. Leadership is a function of variables in a situation.
a. Strengths
a. Situational leaders are more effective.

b. Scope for training and development of new leaders.
b. Weaknesses
a. Leadership is unstable and continues as long as the situation continues.

b. Planning is shor t term and ignores the long term ef fects on the
organisation.
c. Demands re-organisation of resources whenever the situation changes.
d. Team-building is temporary and needs change as the situation changes.
e. Frequent changes in the situation af fect leadership and group
performance.
10.11 The Contingency Theories (by Fred Fiedler)
This approach is similar to the ‘Situational' approach in the sense that a

contingency is an emergency situation which demands special qualities in
the group and its leadership. Some of the major features of this approach
are as follows:
a. Leader-member relationship: The degree of acceptance of the leader
by the members of the team.
b. Task-structure relationship: The degree to which job descriptions
are clear to all concerned members.
c. Leader position power: The degree to which the leader has the formal
authority in his position in the organisation.
10.12 The Path-Goal Theory of Leadership (by Martin Evans and

Robert House)
a. Leader’s behaviour is acceptable to subordinates so far as it is a source

of inspiration and satisfaction.
b. Leader clarifies the path to the subordinates to achieve goals.
c. Leader’s behaviour has an impact on subordinates' motivation,
performance and job satisfaction.
a. Directive Leadership
The leader gives directions to the subordinates who know exactly what is
expected of him.
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b. Supportive Leadership
The leader is friendly, approachable, suppor tive, concerned with the

subordinates' needs.
c. Participative Leadership
The leader asks for suggestions from subordinates before the decision-making.
d. Achievement Leadership
The leader sets up challenging goals and shows confidence in his subordinates'
ability to achieve goals.
10.13 The Life Cycle Theor y (by Paul Hersey and Kenneth Blanchard)
This approach is based on research studies conducted by Hersey and

Blanchard on leadership during the latter half of the 20th century. This
theor y believes that the success of leadership depends upon the maturity
level of the work group.
Some of the major features of this approach are as follows:
a. One of the most popular and widely practised theories,

b. Close similarity to the situational or contingency approach,
c. Leadership style depends upon the maturity level of the work group,
d. Maturity, ability and willingness to take responsibility,
e. Task orientation and Relation orientation work together.
Figure 10.1. The Hersey-Blanchard approach to leadership
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10.14 Autocratic Leadership

This leadership is based on the belief that authority is the basis for successful
leadership. In this case decision-making is centralised in the leader and the
subordinates have to follow instructions. Some of the sub-classifications of
autocratic leadership are as follows:
a. Strict Autocrat: strict discipline, negative motivation, criticism for

mistakes, penalties for disobedience.
b. Benevolent Autocrat: understanding employees, positive motivation,
decision maker, appreciative, etc.
c. Incompetent Autocrat: lack of knowledge, lack of self-confidence,
indecisive, afraid of exposure, etc.
Merits
a. It provides for a strong centralised authority.

b. It permits quick decision-making.
c. It provides for better discipline.
d. It provides for better job security for subordinates.
e. It provides for better job satisfaction for mediocre subordinates...
Demerits
a. Possible lack of motivation leading to frustration among subordinates.

b. May offer more complex problems of conflict management jeopardising
organisational efficiency.
c. Excessive dependence upon such leadership can cause loss of individual
identity in an organisation.
d. Lack of succession planning and development of the future leadership.
e. Generally this kind of leadership is disliked by subordinates because of
an urge for participative decision-making .
10.15 Democratic Leadership
This leadership is based on the assumption that participation during the

planning stage and in decision-making is the key to the success of leadership.
It encourages participation and thereby motivates followers.
Merits
a. It encourages participation by members in decision making.

b. Decision-making is decentralised and allows sharing of responsibility.
c. Appreciation of ideas and suggestions of members ensures motivation.
d. It helps better organisational stability by reducing employee turnover.
e. It improves overall productivity due to better communication and co
ordination in the group.
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Demerits
a. Participation does not become meaningful in large and complex

organisations, due to a lack of a thorough understanding of problems.
by subordinates.
b. Consensus decision-making always takes time which, in turn, delays
the achievement of results.
c. Sometimes, participation may be used to manipulate subordinates.

Therefore, some employees may prefer an open tyranny of an autocrat,
rather than covert tyranny of the group.
10.16 Laissez-faire Leadership
This leadership is based on the assumption that the leader is supposed to

give only information and guidance to members of the group. Other functions
like: decision making, programmes and procedures, discipline and control
and responsibility for the quantity and quality of the output, etc. are taken
care of by the subordinates. In other words, the leader has a very minor role
to play.
Merits
a. Group members enjoy the freedom of decision making.

b. It allows sharing of responsibility.
c. It allows self-motivation and training.
d. There is no day to day interference by the leader.
e. It helps inter-personal relationships among members.
f. It helps team-work.
Demerits
a. Learning takes place by trial and error.

b. There is a tendency to avoid responsibility.
c. There is lack of accountability.
d. There is poor discipline and control.
e. There is a lack of guidance and direction by the leader .
f. In case of emergencies, decision making is difficult.
g. Group performance is more by accident rather by design.
10.17 Functions of leadership
From the above discussion, it would be clear that organisational leadership

has evolved through the 20th century and has attracted the attention of
social scientists and human psychologists as well. All the research and
the resultant theories of leadership have given rise to three basic leadership
styles as described above. Similarly, in modern business organisations,
irrespective of the fact that they belong to the manufacturing sector or to
the ser vice sector, there are three basic functions of leadership summarised
as follows:
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Task needs
a. Defining the task

b. Making a plan
c. Allocating work and resources
d. Controlling quantity and quality
e. Checking performance
Group needs
a. Setting standards
b. Building team spirit
c. Motivating the group
d. Ensuring communication
e. Training the group
f. Maintaining discipline.
Individual needs
a. Attending to personal problems

b. Understanding individuals
c. Utilising individual abilities
d. Appreciating good performance
e. Motivation towards higher contribution
10.18 What is Team-building
Twenty-five years ago, when companies like Volvo, Toyota, General Foods,
etc. introduced teams in production shops it made news! It is because
nobody was doing it. Today it is just the opposite. The organisation, which
does not use teams, becomes news. Pick up any business periodical today
and you will find how teams have become an essential part of business
organisations like: General Electric, AT&T, Hewlett and Packard, Motorola,
Apple Computers, Shiseido, Federal Express, Chrysler, 3 M, John Deere,
Shenandoah Life Insurance Co., Florida Power and Light, Emerson Electric,
Texas Instruments, Australian Airlines, Johnson & Johnson, Dayton Hudson,
etc. to name a few.
How do we explain the current popularity of teams? Evidence shows that

teams outper form individuals, when the tasks require multiple skills,
judgement and varied experience. As organisations restructure themselves
to compete more effectively, they have turned to team building for better
utilisation of the employee's talents. Teams are found to be more flexible
and responsive to changes than individuals and the traditional departments
of permanent work-groups.
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An organisation, by definition, is a group of people who come together to

achieve common goals. Therefore, in modern business organisations, an
individual manager cannot possibly achieve anything all alone by himself/
herself. He has to work with the people and get things done for the desired
results. This calls for not only successful leadership in guidance and motivation,
but also an ability for team building of the subordinates.
Success stories of modern business organisations show that work teams

outperform individuals, especially when the task requires multidisciplinary
knowledge, multiple skills, judgement and varied experience. Team building
utilises the employees' talents more efficiently and effectively. It is also found
that work teams are more flexible, responsive and creative than traditional
departments or any other forms of permanent work groups in an organisation.
According to Pauline Barrett:
A team is NOT
a. A collection of individuals who happen to have the same work place.
b. A collection of individuals who happen to have the same line manager.
c. A collection of individuals who happen to have the same job in the
same department.
Thus, team building may be defined as:

a. a process of bringing together members of a work group, defining
individual as well as group goals, and achieving the desired output.
b. a group whose members have complementary skills and are committed
to a common purpose or a set of performance goals for which they
hold themselves responsible.
10.19 The main objectives of team building
A leader may not possess managerial qualities, but a Manager must possess
leadership qualities to manage his people and tasks in order to achieve desired
results. This is possible only if the manager succeeds in team building.
Therefore, the main objective of leading a group of people in an organisation
is to build effective teams. The other objectives are as follows:
a. To bring people together to work,

b. To set goals and priorities more realistically,
c. To improve inter-personal relationships,
d. To utilise employee's talents collectively,
e. To achieve organisational goals more efficiently and effectively.
10.20 The Pre-requisites for developing effective teams
The following are the pre-requisites for developing effective teams:

a. Identifying organisational goals clearly
b. Providing necessary resources
c. Undertaking actual task assignments
d. Designing rewards/incentives for the results
e. Providing whole-hearted support
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10.21 The process of team building
The following are the steps in the process of team building:

a. Identification of the problem
b. Collection of data
c. Analysis of the data
d. Planning action
e. Implementation of decisions
f. Evaluation and feedback
10.22 Characteristics of effective teams
The following are the characteristics of effective teams:

a. Goals and values are clear to all.
b. There is commitment of full contribution to the goals.
c. There is a climate of mutual trust and support.
d. The organisational communication channels are open.
e. There is a willingness to share data/information.
f. There is participation in decision-making.
g. There is a commitment to implementation of decisions.
h. There is a commitment to high performance standards.
i. Individual differences are handled tactfully.
j. Procedures are consistent with the goals and tasks.
10.23 Values of a team
The following are the values of a team:

a. It helps members to understand goals clearly.
b. It ensures commitment to goals.
c. It improves employee motivation.
d. It improves inter-personal communication.
e. It increases employee job satisfaction.
f. It generates a better sense of belonging.
g. It expands job skills.
h. It creates organisational flexibility.
i. It encourages better creativity and innovation.
j. It helps to improve organisational efficiency.
10.24 Building effective teams
a. Set rational and realistic goals.

b. Clarify objectives to all concerned.
c. Prioritise problems and tasks.
d. Ensure provision of all resources.
e. Select the right number and the right type of people on the team.
f. Create a cordial and co-operative climate for sporting criticism.
g. Develop a good leader for the team.
h. Encourage commitment to hard work.
i. Develop good inter-personal relationships.
j. Encourage mutual respect.
k. Keep organisational communication channels always open.
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Summing Up
Every organisation needs management and management calls for leadership.

The success and fortune of an organisation depends largely on leadership. A
good manager must be a good leader. Employees need to be motivated from
time to time. There are several theories of leadership developed by management
experts. The chapter also discusses the objectives, and pre-requisites for team-
building.
Self-assessment
1. The Dictatorial style of working is a feature of the ___________ stage of

leadership.
2. The Traits Theory was developed by ___________ and ____________.
3. Strong centralised authority is one of the merits of _____________
leadership.
1. A team is a collection of individuals who happen to have the same

work place.
2. Implementation of decisions is a process of team building.
3. Leader-member relationship is a part of the Contingency Theory.
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Chapter XI
Stress Management
Learning Objectives
• What is Stress? Its causes, consequences, sources
• Stress Management
• How to cope with stress ?
Contents
11.1 What is Stress?
11.2 What are the basic causes of stress?
11.3 Sources of Stress
11.3.1 Individual stressors
11.3.2 Group stressors
11.3.3 Organisational stressors
11.4 Physiological consequences of stress
11.5 Psychological consequences of Stress
11.6 Stress management
11.7 Coping with stress
11.7.1 Individual strategies
11.7.2 Organisational strategies
Summing Up
Self-assessment
11.1 What is Stress?
Stress means different things to different people. Doctors talk about stress in
terms of psychological mechanisms, engineers in terms of load bearing,
psychologists in terms of behavioural changes, etc. Stress is not simply
anxiety. It is accompanied by anxiety. Some people exhibit stress, while some
people keep it ‘bottled up' and do not reveal it. Stress is a natural and an
inevitable part of life. Stress can be prevented, and if not prevented, has to be
managed properly.
The word stress seems to have originated from the French word ‘destresse'
which means ‘to be placed under narrowness or oppression'. In its middle
english form, it was therefore ‘distress' and over the centuries the ‘di' was
lost through slurring, leaving us with the two words: ‘stress' and ‘distress'
which mean something ambivalent and unpleasant, respectively.
At one end of the scale, stress represents those challenges, which excite us
and keep us on our toes. At the other end of the scale, stress represents
those conditions under which individuals have demands made upon them,
which they cannot fulfil and which lead to a breakdown. Thus, at one end,
stress is a life-saver, while at the other end it is a life-destroyer.
Thus, Stress may be defined as:

a. ‘an individual's reaction to a disturbing factor in the environment’
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b. ‘an adaptive response to an external situation that results into

physiological, psychological and behavioural deviations'
Stress can manifest itself in both a positive and a negative way. Stress is said
to be positive when the situation offers an opportunity to gain something.
Eustress is positive stress, which is often a motivator since it helps the
individual to achieve peak performance. Distress is negative stress when it is
associated with a host of physiological, psychological and other behavioural
problems.
Stress can be manifested in different ways: sleeplessness, head-aches, back-

aches, loss of appetite, high blood pressure, lack of concentration, loss of
memory, indecisiveness, anxiety, tension, apprehensions, loss of interest, lack
of energy, loss of self-confidence, etc. Thus, people who are chronically over-
stressed, are no fun to work with. They may become irritable, miserable and
self-absorbed.
On the contrary, there are people who seem to have the ability to adjust, cope
with and to stay in control of their workload and also to handle job frustrations
without becoming worn-out, irritable or depressed. These people have an
ability to handle stress, having ways of taking the rough with the smooth,
keeping a sense of humour, and renewing their energy and resources so that
work life brings pleasure, satisfaction and reward to them as well as to others.
11.2 What are the basic causes of stress?
Stress is always associated with ‘demands' and ‘constraints'. When they are
coupled with uncertainty of the outcome, potential stress becomes an actual
stress. For many professions, stress is intrinsic to the job itself, where
competing demands and pressures cannot be escaped.
Demands can be called strong expectations and expectations can be called

mild demands.
a. External demands / Expectations
a. What are the demands?

b. Are they real or virtual?
c. What are the sources of the demands?
d. Can we control them?
e. If yes, how' and to what extent?
f. What are the strengths and weaknesses in the demands?
g. What are the opportunities and threats in the demands?
h. What would happen if the demands are not met?
b. Personal capacities
a. How do we react to the demands?

b. Is it necessary to modify our reactions to the demands?
c. Can we differentiate between the real and virtual demands?
d. Can our reactions/responses benefit us in the long run?
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When the demand is way below the capacity, we may feel under-stimulated.
When the demand is way above the capacity, we may feel over-stretched.
Managing stress is to balance between external demands and your personal
capacity to cope with them.
At times, the sheer volume of work can be overwhelming. Many times too
much of stress can have serious consequences for the individual. It can develop
into a living nightmare of running faster and faster to stay at the same place,
feeling under-valued feeling unable to say ‘No' to any demand and not working
productively.
11.3 Sources of stress
There are many sources of individual stress. Some of them are ‘on-the-job'
while some others are ‘off-the-job'. The sources of personal stress may vary
from person to person and time to time. But, organisational stress comes
from some common sources. In order to be successful in managing day-to-
day stress, it is necessary to understand the major sources of stress, which
can be broadly classified as follows:
a. Individual stressors
b. Group stressors
c. Organisational stressors
11.3.1 Individual stressors
a. Role conflicts: lack of role clarity, intra-personal/inter-personal role

conflicts, ethical dilemmas, role overloading, poor self-image, etc.
b. Lack of authority: inability to take decisions, feeling of powerlessness,
lack of delegation, inflexible superiors, etc.
c. Poor leadership: lack of self-confidence, vision, decision-making,
training, team building
d. Perfectionism: unrealistically high expectations, unrealistic goals/
targets, insistence on working with zero defects, etc.
11.3.2 Group stressors
a. Poor interpersonal relationships : very strong/unsympathetic/

dominating boss, non-cooperative peers/colleagues, hostile
subordinates, lack of appreciation, too much interference, etc.
b. Group dynamics: lack of group cohesiveness, sense of belonging, social
support; inter-group conflicts, informal groups/grapevine, rumours, etc.
11.3.3 Organisational stressors
a. Intra-organisational factors: improper organisational structure, lack

of communication facilities, lack of adequate working capital, lack of
infrastructural facilities, etc.
b. Unrealistic task demands: Job design, job analysis, job evaluation,
shortage of essential staff, lack of proper training, excessive demands
v/s limited personal capacity, etc.
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c. Unsatisfactor y working conditions: inordinately long working hours,

interference with natural circadian rhythm, frequent emergencies,
unpredictable changes, excessive noise/heat, lack of natural sunlight,
illumination, ventilation, etc.
d. Unnecessar y/outdated procedures: too much and unnecessary
paper work, too many records and returns, too many meetings, too
rigid rules and regulations, too much bureaucracy, etc.
e. Uncertainty and insecurity : lack of job security, frequent changes in
policy, lack of planning, etc.
f. Unclear job descriptions: lack of proper job analysis, clarity of goals,
priorities, etc.
g. Poor career prospects: organisational status of the job, social status
of the job, lack of proper job evaluation, poor promotional value of the
job, etc.
h. Lack of organisational communication: lack of proper systems,
adequate data, proper control; grapevine/rumours
i. Unscientific per formance appraisal system: lack of scientific
systems, training, rationality, review and revision, etc.
11.4 Physiological consequences of stress
The body's reactions to stress-demands are useful. They gear up the body
to respond to challenges, either by standing firmly on the ground and
hitting back hard or by prompt and strategic withdrawal. This is called
the ‘Fight' or ‘Flight' response, which happens automatically. The human
body has evolved over thousands of years to meet external threats and
challenges. Some of the common physiological consequences of stress
may be briefly summarised as follows:
a) Short-term ef fects
a. Speeding up of reflexes
b. Improved performance
c. Increased muscle function
d. Lower load for the digestion system
e. Stomach troubles
f. Cooling of muscles
g. Increased breathing rate
h. Reduced sensitivity to minor injuries
i. Reduction in allergic reactions
j. Reduced sexual desire/activity
b) Long-term effects
a. Loss of weight
b. High/Low Blood pressure
c. Delayed blood clotting
d. Cardiovascular disorders
e. Arteriosclerosis
f. Exhaustion
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g. Heart attack
h. Diabetes
i. Damage to the kidneys
j. Lower resistance of the immune system
k. Depression in sensory perceptions/responses
l. Impotency/Sterility
11.5 Psychological consequences of stress
It is observed that the physiological effects of stress have a co-relation with

the psychological effects and vice-versa. Some of the common psychological
consequences of stress may be briefly summarised as follows:
a) Cognitive effects
a. Decrease in concentration resulting in diminishing powers of
observation,
b. Increase in distractibility resulting in loss of the thread of the thinking
process,
c. Deterioration of memory in the short, as well as long term reducing
the span of the memory for recalling and recognition of even familiar
things,
d. Reduction in the response speed,
e. Increase in error rate resulting in snap and hurried decisions and errors
in manipulative and cognitive tasks,
f. Deterioration in planning and organising, disabling the mind to assess
accurately existing and future conditions,
g. Increase in delusions and thought disorders resulting into reduced,
powers of objectivity, reality testing and a confused thought process.
b) Emotional effects
a. Increase in tension, reducing the ability to relax by switching off worries

and anxiety,
b. Increase in Hypochondria: imaginary complaints and lack of feeling of
well-being and good health,
c. Changes in personality traits: indifferent attitude, untidy and slipshod,
over-anxiety, over-sensitivity, hostility, defensiveness, etc.
d. Moral and emotional behaviour: sexual behaviour, emotional outbursts,
lower spirits, a sense of powerlessness, etc.
e. Fall in self-esteem: a feeling of incompetence, worthlessness, lack of
status in groups or the society at large, etc.
c) Behavioural effects
a. Increase in problems of speech: stuttering, stammering, hesitancy, etc.

b. Diminishing interest and enthusiasm: abandoning short-term goals and
life objectives, dropping of hobbies, disposing of cherished possessions,
drop in energy levels, etc.
c. Increase in absenteeism: real or imaginary illnesses, false excuses, etc.
d. Increase in drug abuse: alcohol, caffeine, nicotine, etc.
e. Disturbance in sleep patterns: either lack of sleep or disturbed sleep.
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f. Cynicism: an increasing tendency to be over-critical and sarcastic about

superiors, colleagues, clients, customers, events, etc.
g. Ignorance of new developments: new people, new systems, new
methods, new products, new technology are ignored.
h. Superficial problem-solving: temporar y and stop-gap solutions are
offered, lack of detailed thinking, lack of follow-up, a ‘giving-up' tendency.
i. Lack of self -confidence: decrease in confidence level, avoiding
responsibilities or passing the buck, etc.
j. Unexpected and bizarre behavioural patterns: odd mannerisms,
unpredictable and uncharacteristic behaviour, use of meaningless
phrases, threats of suicide.
Physiological and psychological effects of stress go hand-in-hand and are

complementary. They vary from organisation to organisation, situation to
situation, time to time and person to person. It is found that some people
collapse at the first signs of stress, while others have a great strength to cope
with a very high level of stress and do not show any symptoms. We can learn
from such people, the secrets of their success in coping with stress and
avoiding a breakdown in their personalities.
11.6 Stress management
It is not possible to eliminate stress completely from our day-to-day working

life. But, it is, possible (and also necessary) that we learn to manage stress
and its effects on our body and mind. In this process, we have to cope with
stress and to keep the physiological and psychological effects at minimum
levels to avoid their ill effects on our performance. This process is called
Stress Management, which consists of mainly 3 stages:
a. Mobilisation
Mobilisation is a simple decision to do something. There is always a better

way of doing things. Studies show that more than 60% of the people who find
their jobs stressful have no stress management programme of any kind,
because they fail to recognise this fact of life. We must understand this basic
rule to cope, with stress and mobilise ourselves with changed ways of looking
at life.
b. Knowledge
Knowledge of the problem and the sources of stress is the key to stress
management. It is said that ‘a problem well-defined is half-solved'. We must
ask ourselves: What is the real problem? What are the stressors? What is
the main source of stress? Are those unmanageable? What must be done
about them? What is preventing me from doing something about the
excessive stress?
c. Action
This is the final stage in stress management. If things which are preventing
us from doing them, are within our control, we have to decide whether the
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action should be immediate or in future. If things are beyond our control, we

may have to ignore or adapt to the stressors. Of course, our action depends
upon the intensity and the source of the stressors.
11.7 Coping with stress
Stress can be managed mainly by the following strategies:
11.7.1 Individual strategies
a. Time management
Most of us are poor in time management with the resultant feeling of work
overload, skipping schedules and the attendant tension. The truth is that, if
we can manage our time efficiently and effectively, we can accomplish twice
as much as we can otherwise. Some of the basic principles of time management
are:
a. Preparing a list of the daily activities to be attended to,
b. Prioritising the activities as per their importance and urgency,
c. Re-scheduling activities as per priorities,
d. Following up the schedule of activities for early completion,
e. Checking up activities and taking corrective actions (if necessary).
It is observed that effective time management results in: better physical health,
better mental health, relaxed feeling in action, higher motivation and
enthusiasm, higher efficiency, better job satisfaction, etc.
b. Physical exercise
It is rightly said that ‘there is a sound mind in a sound body '. Physical exercise
at any age is a must. It helps people to cope with stress. It is for this reason
that people of all ages are seen taking a morning walk, jogging, swimming,
playing outdoor games like badminton, tennis, etc.
c. Relaxation
There are many ways of relaxation at the end of a hectic day of work and
stress. We can relax through meditation, hypnosis, biofeedback, yoga, etc.
Whatever the method, the main objective is that one must be deeply relaxed,
where the person feels totally relaxed from body sensations. At least 15 to 20
minutes a day of deep relaxation releases tension and provides a pronounced
a sense of peace of mind. This practice causes significant changes in blood
pressure, heart rate, sleep, concentration, memory, etc.
d. Social support
Man is a social animal. After the basic needs and security needs are satisfied,
an individual needs social support with a sense of belonging. It is observed
that social support plays an important role in relieving stress of the individual,
because the person gets friends, colleagues, listeners, and confidence builders
who help in networking and thus relieving harmful stress. This also helps to
control the ill effects of stress, by virtue of giving vent to one's feelings,
84/MITSOT
Stress Management
emotions, fears and frustrations to others, who can understand and possibly
try help him/her out.
e. Yoga
Yoga is said to be the most effective way to relieve stress. Yoga has been used
in many countries for centuries. There are many different aspects of Yoga,
which are said to be ver y useful to manage work-stress. However, it is
advisable that Yoga and Meditation should be followed under expert guidance
for the maximum benefits for reduction stress.
11.7.2 Organisational Strategies
a. Organisational Structure
Organisational structure should be properly designed in order to have

appropriate authority-responsibility relationships among employees. It
helps to have smooth organisational communication for faster decision
making. Too many levels of hierarchy and too much bureaucracy in day-
to-day working can cause avoidable stress for all employees at all levels.
The organisational structure should be simple to understand and easy to
follow.
b. Organisational Communication
This consists of various factors like: oral and written communication;

downward, upward and lateral communication; interpersonal and inter-group
communication; grapevine; communication, networking; etc. All these factors
contribute to the efficiency and effectiveness of the organisation, which in
turn af fect the employees in their work related stress. Organisational
communication with downward and upward channels, when equally open for
all employees, help to reduce work stress.
c. Job related activities
Job re-design, job analysis, job descriptions, job specifications, job

evaluation, job enlargement, job enrichment, job rotation, work-study, etc.
are some of the modern tools and techniques for attracting and retaining
good employees in an organisation, with a least stressful environment for
all.
d. Recruitment/Selection/Placement
Certain jobs are more stressful than others in an organisation. Individuals

differ in their response to stress situations. Individuals with comparatively
less experience with an external locus of control tend to be more stress
prone. On the contrary, people with more experience with an internal locus
of control may adapt better to high stress jobs with a better performance.
These factors should be borne in mind while recruiting people. It is necessary
to give some kind of induction training to new employees in order to orient
them to the new organisational culture, so that they can be better prepared
to take up stressful jobs.
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e. Training and Development
Appropriate training and development programmes should be organised for

employees at all levels from time to time, so that they are updated in their
knowledge, skills and attitudes towards their jobs and the organisation. This
helps both the management and the employees to reduce the gap between
job requirements on the one hand and capabilities of the employees on the
other. This automatically reduces the possibilities of stressful situations,
which can be caused by apprehensions about changes if any.
f. Performance Appraisal
There should be a systematic, scientific and periodic performance appraisal

system in force for all employees. By this process, both the management and
the employees know as to how well they are doing and how well they should
do. Extraordinary performers should be rewarded extraordinarily. Average
performers should be given counselling and necessary training inputs for
improvement. Mediocre/below average performers should be given a clear
idea for their need for improvement within a stipulated time limit. This helps
to reduce the number of stressed employees and others may be relieved to
some extent, at least from unnecessary and avoidable stress.
g. Employee Counselling
Employee counselling can be classified in two parts: on-the-job counselling

and off-the-job counselling. Both these are skilled and sensitive jobs and need
qualified and competent staff to do the job of counselling successfully.
The objectives of employee counselling can be three-fold:
a. to improve overall organisational efficiency

b. to reduce employee stress, and
c. to improve employee efficiency
Employee counselling, if properly done, can yield very good results not only
in terms of reducing employee stress, but also in terms of improvement in
overall organisational productivity.
Summing Up
In a highly complex and demanding world today, most people are highly
stressed. The causes of stress are physical and often psychological. Stress
can manifest in many ways. For some it causes sleeplessness, in others
headache, loss of appetite, high blood pressure, loss of memory, etc. It also
leads to irritability and low self-esteem.
It is very important to know how one can cope with stress. There are individual
and organisational strategies. A careful study of these strategies can sufficiently
arm you to manage stress in your personal and professional life.
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Stress Management
Self-assessment
1. ___________________ is positive stress.

2. Stress is always associated with ______________ and _______________.
3. Yoga is said to be the most effective way to relieve ______________.
4. Stress can manifest itself in a _______________ and a ___________ way.
5. Sources of _________ stress may vary from individual to individual and
time to time.
1. Stress can be prevented, and if not prevented, has to be managed properly.

2. Increase in absenteeism, real or imaginary illness, false excuses are
psychological consequences of stress.
3. To manage stress it is not necessary to understand the problems.
4. Employee counselling should be given priority in every organisation.
5. Performance appraisal of an employee should be done once every two
years.
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Annexure I
Case Study I
It's Thursday afternoon, and you are at a staff meeting held to discuss the
development of a new product. It will require a major investment in terms of
equipment and production facilities, so the conversation is quite intense. As
usual, Mr. Joshi and Mr. Kulkarni, two officers in the product development
division have totally opposite views on the issue.
“I don't know”, says Joshi, “it's a big chunk of money, and market research on
product acceptance is pretty high.”
“Oh, come on Joshi”, replies Kulkarni with an obvious note of irritation in

his voice. “We'll never get anything if we simply wait. You have to take chances
sometimes, you know.”
The discussion continues, with Joshi urging caution and Kulkarni pushing
for boldness. You have withnessed this same scene over again, to the point
where you can now predict the exact lines Joshi and Kulkarni will utter. As
you sit listening to their statements, you begin to ponder the basic difference
between them. Why is Joshi so conservative and cautious, while Kulkarni so
bold and daring? What makes them see the world through such different
eyes? You continue thinking about questions as the meeting drags on and on,
and on…..
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Annexure
Annexure II
Case Study 2
“Oh no”, you think as you look up from your desk. “It's Ajay Godbole. Here
comes trouble”. Unaware of your thoughts, Ajay greets you with a big smile.
“Hello Vijay”, he says cheerfully, “how is my favourite engineer today?”
For a couple of minutes, you and Ajay exchange small talk and then, finally,
he comes to the point. “Look Vijay, I need your help. We are way behind on
that Satara project. How about sending Deshpande, Gandhi and Dalvi to join
our group for a couple of weeks?'’
You are shocked; what a request; “Oh no, Ajay,’’ you reply. “I can't possibly
spare them now. You know this is the peak of our busy season!”
“Well,” he says, “If you can't spare all three, how about Gandhi for just a
couple of days?”
You experience great relief. This is more like it. “O.K.” you mumble without
much enthusiasm. “I guess we can spare him. But just for a couple of days”.
At these words, Ajay smiles, says “thanks”, and beats a hasty retreat. After
he leaves, you sit quietly for a moment. Then all at once, it hits you : he has
done it again ! When will you ever learn ? Ajay sets you up beautifully with
him “ask for a lot, settle for a little” tactics. (Just how many ways does he
know of getting what he wants). You certainly haven't seen the limit yet !
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Annexure III
Case Study 3
Today marks the end of your first month in a new job. Just six weeks ago, you
accepted a position with a large public sector company, one that is well known
in the Mumbai-Pune industrial area- and as you ease into your company bus
on the national highway and head for home, you find yourself thinking about
your new position. In some ways, it has turned out just as you expected. Your
salary is high, and the company's brand new headquarters are very pleasant.
But looking back over your first month, you realise that there have been some
real surprises, too. A major one occurred during your first staff meeting.
Several issues were discussed and, at one point, you described a decision you
had reached on handling a special problem. To your surprise, the meeting
ground to a halt and everyone stared at you in disbelief. Finally, after an
uncomfortable pause, the Divisional Manager set you straight, “listen, Joshi,
we don't do things that way around here. First we discuss the matter in the
staff meeting and prepare a proposal which is agreed collectively, then we
forward such a proposal for approval to the Deputy General Manager. After
his approval it is sent to the General Manager and the G.M. further sends it
to the Executive Director. When the E.D. accepts the proposal, it is submitted
to the Chairman and Managing Director.Decisions are taken only in this
manner. This is called sending your proposal through the proper channels.’’
In other companies where you have worked, you had sufficient freedom and
authority to take decisions and implement these as early as you wished. In
this new company, you have to explain the situation in detail and the reasons
for your decision. You have to submit the same before a committee and if it is
accepted by the members of the committee, it is processed further to take
the approval of highest authority. This is a new pattern for you and will certainly
require some adjustment. In short, you have discovered that working for a
Public Sector Company really is different. But are you going to like it over a
long haul? Can you adjust to this different work culture. You are still pondering
over such questions as you turn into the driveway of your home.
90/MITSOT
Annexure
Annexure IV
Case Study 4
Remcon Limited, an Electronic company having its multi-locational branches

and headquarters at Delhi, has a Western India Divisional office at Mumbai
and a branch at Pune.
On Tuesday morning Mr. Pai, the Divisional Manager, told Ashish, “find out
how many people work in our Pune branch. I know the President would want
to know this during our meeting on Friday, and I want to be prepared”.
Ashish promptly passed on the message to Rahul, the Secretary. Immediately,

Rahul called the Pune branch and told Shweta the Secretar y there, “our
president has asked for a complete list of all the people who work in our in
Pune branch. We need it all within two days.’’
Shweta on the other hand informed Mr. Rajesh, the branch manager, Pune
branch that the President wants personnel records of all the branch employees
to be sent to the Divisional office at the earliest.
Within half an hour, a team of seven members started working on the assigned
task. The team worked overtime and the very next day that is Wednesday
afternoon, the data arrived at the Divisional office in two large boxes sent by
special courier.
Mr. Pai was astonished to see the arrival of this consignment; he only wanted
Ashish to let him know the total number of employees in Pune, which is
around three hundred fifty six. The original query was turned into a huge
project involving many people.
1. Read the case and discuss the implications.

2. Is it a case of distortion in communication ?
3. Give a suitable name to the case.
91/MITSOT
Annexure V
Case Study 5
In Pune, a maintenance employee, Mr. Gaikwad of the Horizon Construction

Company had applied for three months leave of absence for personal reasons.
The request was granted, as it was in accordance with the Company as well
as Union policy.
A few weeks later the HR Manager, Mr. Salunke heard through grapevine
that Mr. Gaikwad has actually taken leave to work for another construction
project at Satara. The grapevine report also stated that Gaikwad was earning
some extra money on this electrical project, which was higher than his present
regular earning.
His act of taking leave for personal reasons and working for another
organisation for any hidden purpose was contrar y to the contract of
employment with the Horizon Construction Company, and the penalty for
such an act could lead to his dismissal.
Mr. Salunke investigated the case in person and ensuring that the grapevine
information was correct, he dictated a “Notice of hearing concerning dismissal
action” to his secretar y, and this was to be mailed to Mr. Gaikwad by
Registered Post to his local residence.
The same night, Mr. Gaikwad called Mr. Salunke up at his residence and told
him that he had heard of the notice of dismissal being sent to him, he was
not aware of the legal implications, and he actually did the additional job to
get some extra money which he needed. If under the contract of employment,
this was not acceptable, he would be willing to join back immediately and
didn't want to lose his permanent job.
Mr. Salunke on the other hand pressed Mr. Gaikwad to tell him how he knew
about his dismissal notice. Mr. Gaikwad said that his wife had called him
that evening and told him that at the local supermarket, the mother of their
friend's son had told her about this dismissal order.
1. Can you trace any evidence in this case that both the management and
employees make use of the grapevine for their own benefit? Discuss.
2. If you were in Mr. Salunke’s place, would you be able to suppress such
grapevine leaks.
3. What action should Salunke take in this case ? Discuss.
92/MITSOT
Annexure
Annexure VI
Case Study 6
After successful completion of management education, Nikhil has been selected

by a company and made in-charge of a department where Rahul, Anil, Rakesh
and Rajni report to him.
The key of the success of his department is dependent upon the motivation of
his subordinates and Nikhil needs to ensure that his subordinates are highly
motivated. He, on his part has decided to proceed systematically and as a
first step, he has prepared a brief summary profile on each of these four
subordinates.
Rahul is the type of employee who is rather hard to figure out. He has a
higher than average record of absenteeism. He enjoys family life enormously
and his wife and their only son are central to his life. He is of the opinion that
what the company can offer him does not inspire him at all. He sincerely
believes that the job is simply a means of financing his family's basic needs
and nothing more than that. Overall, Rahul does an adequate job and is very
conscientious, but all attempts to get him to do more have failed. He has
personal charm and his nature is friendly and sociable. He is so far allowed to
have his own way as long as he meets the minimal standard of performance.
Anil is in many respects the opposite of Rahul, He has good interpersonal
relationships and is liked by others. Unlike Rahul he responds well to the
company's rules etc. He maintains a high degree of loyalty to his organisation.
His greatest drawback is that he lacks initiative. He does not tend to do
anything independently. He does well whatever has been assigned to him, but
is neither creative nor dependable on his own. He is unable to maintain good
interpersonal relationships, as he is shy and not very assertive when dealing
with people outside the department. He constantly needs the assurance and
support of his seniors to confirm that his actions are correct.
Rakesh is very assertive and known for his ‘‘job-hopping tendencies.” Money
motivates him and he is always ready to change his job for a rise in his income.
Otherwise he really works hard for the company and expects that the company
should fulfil his desire for money. In his present job he will happily work for
even sixty hours a week if he is compensated well with money. Despite having
the burden of his own family and ailing parents, he once left his job suddenly
only due to a dispute that he was not given a salary rise as per his desire.
Rakesh has a forceful and driving personality. His former employer remarked
that while he performed excellently in his job, he was arrogant, adamant and
argumentative and so was happy to get rid of him. The previous boss also felt
that Rakesh never seemed to be satisfied and was always interested more in
fringe benefits.
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Rajani is creative, artistic and a genius. On the other hand she is excessively
emotional. She consistently and constantly craves attention and demands praise
from others. She is highly self-centred and strives for instant gratification of
her needs and desires. She talks only about herself. She bears an exaggerated
sense of self-importance and tends to live in a dream world. As long as others
praise her, she disposes with innovative and creative ideas. She likes to grab
all the credits for every success and in case of any failure she tries to push the
responsibility on to other colleagues. It is difficult for other people to get
along with Rajani especially when she is not made the focus of their attention.
Rajani lacks a sense of humour and has sharp up-swings and down-swings to
her moods. Her moody temperament heavily af fects her day-to-day
performance.
1. In accordance with the above profiles of the four employees, how should
Nikhil proceed further in his task and keep his subordinates highly
motivated.
2. Explain all the four employees’ motivation in terms of various models
of motivation.
3. What long-term plans can you suggest to Nikhil for motivating all these
four subordinates?
4. Suggest a suitable name to the case.
94/MITSOT
Study Questions
Study Questions
Chapter I
1. Define Organisational behaviour and explain it's fundamental concepts.

2. What are the major factors that influence an organisation?
3. What do you understand by an organisation?
4. What are the different classifications of an organisation?
5. Why is the study of organisational behaviour important to all managers?
Chapter II
Approaches and Models of Organisational Behaviour
1. Describe various approaches to organisational behaviour.

2. What are the different models of organisational behaviour?
3. Diagrammatically explain the SOBC model of organisational behaviour.
4. Distinctly dif ferentiate between various models of organisational
behaviour.
5. Describe the interrelationship between ‘Personal Life' and ‘Work Life'.
Chapter III
1. Define organisational design and explain its dimensions.

2. Explain the different factors that affect organisational redesigning.
3. What do you understand by organisational structure? Explain the
different types of organisational structures.
4. What is organisational culture? Explain its characteristics.
5. Explain the factors that affect organisational culture. How can changes
be implemented in the organisational culture?
Chapter IV
1. Define perception and explain its process.

2. What are the factors that affect perception?
3. What do you understand by the perceptual skill? Explain.
4. Define values and explain their sources.
5. Explain classification of values.
Chapter V
Attitude
1. Define attitude and explain its characteristics.

2. Explain various components of attitude.
95/MITSOT
3. What are the various theories of attitude?

4. Explain various factors that affect attitude.
5. Explain the significance of attitude in organisational behaviour.
Chapter VI
Personality
1. Define personality and explain its determinants.

2. What are the various types of personality? Explain.
3. What do you understand by ‘locus of control’? Explain its attributes.
4. What are the various need patterns?
5. What do you understand by the personality test? Describe at least two
tests.
Chapter VII
1. What are the various indicators of morale in an organisation?

2. What suggestions do you have to improve morale?
3. What is motivation? Describe its mechanism.
4. Explain with a diagram, Maslow's Hierarchy of needs.
5. What do you understand by the two-factor theor y? Explain with
comparison to Maslow's theory.
Chapter VIII
Group Dynamics
1. What do you understand by Interpersonal Relationships? Explain.

2. What are the various approaches to interpersonal relationships?
3. Explain factors that influence interpersonal relationships.
4. What are the various stages of group development?
5. Explain different factors of group dynamics.
Chapter IX
Conflict Management
1. Define conflict and explain its sources.
2. What are the various types of conflict?
3. Explain various methods of managing conflict.
4. Describe the Johari Window and explain how it resolves interpersonal
behaviour.
5. What are the various factors that are involved in a conflict? Explain.
96/MITSOT
Study Questions
Chapter X
Leadership
1. Define Leadership and explain its importance in a business organisation.

2. State various theories of leadership and explain any two of them.
3. Describe the Heresy Blanchard model of leadership with the help of a
diagram.
4. Explain the various functions of leadership.
5. What is team building and what are its objectives?
Chapter XI
Stress Management
1. What is stress? Explain various sources of stress.
2. Explain the physiological effects of stress.
3. Describe the psychological effects of stress.
4. What are the individual strategies in managing stress?
97/MITSOT
Answers to Self-assessment
Chapter I
a.
1. people
2. thought process
3. interdependent
4. human resources
b.
1. false
2. true
3. true
4. true
5. true
6. true
7. false
Chapter II
Approaches and Models of Organisational Behaviour
a.
1. resources, commodities
2. authority
3. caused
4. leadership
b.
1. true
2. true
3. false
4. True
Chapter III
a.
1. top, bottom
2. organisation chart
b.
1. true
2. true
3. False
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Chapter IV
Perception and values
a.
1. perception
2. personality
3. continuous
4. Intensity
5. Instrumental
b.
1. false
2. true
3. false
4. true
5. false
Chapter V
Attitude
a.
1. feel
2. balance theory
3. attitude
4. Affective
b.
1. true
2. false
3. true
4. true
5. false
Chapter VI
Personality
a.
1. A custom
2. type A
3. Self-monitoring
4. Extremity
b.
1. true
2. false
3. true
4. false
99/MITSOT
Chapter VII
a.
1. morale
2. group
3. Goals
4. five
5. content-oriented
b.
1. true
2. false
3. true
4. false
5. true
Chapter VIII
a.
1. democratic
2. motivation
3. needs
4. time
5. Liberal
B.
1. true
2. false
3. true
4. true
5. false
Chapter IX
Conflict Management
a.
1. objective
2. natural, inevitable
3. inter-personal behaviour
b.
1. true
2. false
3. True
100/MITSOT
Chapter X
Leadership
a.
1. coercive
2. Ordway Tead, Chester Bernard
3. autocratic
b.
1. false
2. true
3. true
Chapter XI
Stress Management
a.
1. Eustress
2. demands, constraints
3. stress
4. positive, negative
5. personal
b.
1. true
2. true
3. false
4. true
5. false
101/MITSOT
Further Reading
1. Organisational Behaviour - Keith Davis
2. Organisational Behaviour - Fred Luthans
3. Organisational Behaviour - Stephen Robbins
4. Organisational Behaviour - K. Ashwathapa
5. Organisational Behaviour - Hellriegel and Slocum
102/MITSOT

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Organisational Behaviour

An organisation is a human construct, made by people. It is not built by bricks

“An organisation is a group of people working together to achieve the common

Some examples of an organisation are: family, school, college, cricket team,

1.2 Major Classifications of Organisations

The following are the major classifications of organisations:

b. Public Sector v/s Private Sector

1.3 Major Factors Influencing an Organisation

The following are the factors that influence an organisation:

1.4 Organisational Behaviour

If we study the daily routine of a person working in an organisation, we find

Organisational behaviour has been defined by:

a. Keith Davis: As a study of human behaviour at work.

c. Stephen Robbins: As a study that investigates the impact, individuals,

1.5 Some Fundamental Concepts in Organisational Behaviour

a. Similar machines behave similarly under similar conditions

Thus, it will be observed that in a modern business organisation, managers

Human behaviour is a highly complex process. A systematic understanding

Some of the important fundamental concepts of organisational behaviour are

1.5.1 Ever y individual is different

Every person is different with respect to his/her age, education, knowledge,

1.5.2 Ever y individual is a complete person

Every individual is a complete person viz. he comes to work everyday with

1.5.3 All behaviour has Cause-effect Relationship

1.5.4 Ever y individual has self-esteem

1.5.5 An organisation is a social system

As Keith Davis remarks, an organisation is a social system. Therefore, the

1.5.6 Mutual interests are inter-dependent

As organisation needs people, people too need the organisation. The

1.5.7 A total view of the organisation

understand human behaviour in the organisation. In turn, this results in the

1.6 Why is the study of Organisational Behaviour important for

With the growing number of organisations, rapidly changing technologies

Therefore, understanding people has become important, if not more important,

In the modern world, organisations are becoming increasingly complex with

In this chapter we have discussed what constitutes an organisation, the major

a. Fill in the blanks

1. _____________ are a major factor influencing an organisation.

b. State whether the following are true or false

2.1 Approaches to Organisational Behaviour

Organisational behaviour of people can be studied from various angles.

2.1.1 The Inter-disciplinar y Approach

2.1.2 The Human Resources Approach

2.1.3 The Systems Approach

This approach is based on the assumption that like a human body, an

2.1.4 The Contingency Approach

2.2 Models of Organisational Behaviour

2.2.1 The Autocratic Model

This model is based on the assumption that authority is central to results.

2.2.2 The Custodial Model

This model is based on the assumption that organisational behaviour depends

2.2.3 The Supportive Model

This model is based on the assumption that management means leadership.

2.2.4 The Collegial Model

2.2.5 The SOBC Model

Stimulus > Organism > Behaviour > Consequences

The Organism can be an individual or a group. They have cognitive mediators

Behaviour is expressed in terms of actions that may be overt or covert. It is

Consequences are expressed as the results, that may be overt or covert,

Thus, the managers in future have to understand the organisational behaviour

Parameter Autocratic Custodial Supportive Collegial

Managerial Authority Money Support Teamwork

Employee Obedience Job security Performance Responsibility

1. Generally organisation culture flows from _ to ___.