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Basics Of OB

Definition - A
field of study that investigates -the impact that individuals, groups and structure have -on behavior within organizations -for the purpose of applying such knowledge toward improving an organizations effectiveness.



Multidisciplinary Anchor

Open System Anchor Organization Behavior Anchors

Scientific methods Anchor

Multiple Level of Analysis

Contingency Anchor


Psychology Sociology Social Psychology Anthropology Political Science

Autocratic Custodial Supportive Collaborative S-O-B-C

Different Models of Organizational Behaviour

Basis Autocratic Custodial
Economic resources Money Security and benefits

Leadership Support

Partnership Teamwork

Basis of Model Power Managerial Orientation Employee Orientation Employee Psychological Results Authority Obedience

Job Performance Responsible Behaviour Self Discipline

Dependence on Dependence on Participation boss boss Security Passive co-operation Status and recognition

Employee needs Subsistence meet Performance result Minimum

Self actualization

Awakened drives Moderate enthusiasm


Any relatively permanent change in behaviour that occurs as a result of experience. Our definition has several components that deserve clarification: Learning involves change. The change must be relatively permanent. Our definition is concerned with behaviour. Learning takes place when there is a change in action.

Classical Conditioning: A type of conditioning in which individual responds to some stimulus that would not ordinarily produce that response. Operant Conditioning: A type of conditioning in which desired voluntary behaviour leads to a reward or prevents a punishment. Social-learning theory: People can learn through observation and direct experiences. (1)Attention-> (2)retention-> (3)behavioral reproduction-> (4)rehearsal/ retrieval of cues (5) Reinforcement

Theories of Learning

Classical Conditioning
Theory by Ivan Pavlov Individual responds to a stimulus that would not ordinarily produce such a response.

Operant Conditioning

Social Learning
Also referred to as observational learning. Emphasizes on the ability of an individual by observing others. Enhances the self efficiency of the learner.

Systematically reinforcing each successive step that moves an individual closer to the desired response. Methods of shaping behaviour: Positive reinforcement. Negative reinforcement. Punishment. Extinction.

Following a response with something pleasant is called positive reinforcement. Following a response by the termination or withdrawal of something unpleasant is called as negative reinforcement. Punishment is causing unpleasant conditions in an attempt to eliminate an undesirable behaviour. Extinction eliminating any reinforcement that is maintaining a behaviour, is called extinction.



Experienci ng


Processi ng

Generalizi ng

Concrete experiences- excited by new activity experienced and share it with others. Reflective observers- objective observation, reflection, discussion, generalization Abstract conceptualizers- rely on logic and rational analysis. Active experimenters- pragmatic, try things out.

The various elementsa.The training/ teaching organizationcalled the endosystem, has its own culture and dynamics. Main function is- to maximize motivation for learning by creating a culture and a climate
concerned with the mechanics. Main function is to help assimilation and stabilization of learning through practice and application

b.The teaching/ training methodologyc.The trainer/ teacherd.The learner-

Important person, main representative of the influence system because of the impact made through behavior, values & competence Most important element, makes use of the other system. Main function is development & effective use of processes

Motivation starts with a physiological or psychological deficiency or need that activates a behaviour or a drive that is aimed at a goal or an incentive.
Motivation is derived from the Latin word movere, to move.

Motivation is a process that accounts for individuals (1)INTENSITY (2) DIRECTION (3)PERSISTENCE of efforts towards attaining goals Intensity is concerned with how hard a person tries. This is the element we most focus on when we talk about motivation. How ever high intensity is unlikely to lead to favorable job performance outcomes unless the efforts are channeled in the direction that benefits the organization. Finally motivation has a persistence dimension. This is a measure of how long a person can maintain his efforts. Motivated people stay with the task long enough to achieve their goals.

EARLY THEORIES OF MOTIVATION Maslows Hierarchy of needs theory:

HIERARCHY OF NEEDS THEORY : There is a hierarchy of five needs Physiological, safety, social, self-esteem, and self actualization; as each need is satisfied, the next need becomes dominant.

1. Physiological: includes hunger, thirst, shelter and other body needs. 2. Safety: includes security and protection from physical and emotional harm. 3. Social: Includes affection, belongingness, acceptance and friendship. 4. Esteem: includes internal esteem factors such as self respect, autonomy, and achievements; and external esteem factors such as status recognition and attention. 5. Self-actualization: the drive to become what one is capable of becoming; includes growth, achieving ones potential and self-fulfillment.


Under theory X four assumptions are held by the managers: 1. Employees inherently dislike work and however possible will try to avoid it. 2. Since employees dislike work they must be coerced, controlled, or threatened with punishment to achieve goals. 3. Employees will avoid responsibilities and will seek formal direction whenever possible. 4. Most workers place security above all other factors associated with work and will display little ambition.

In contrast to these negative views about the nature of human beings, McGregor listed four positive assumptions that are called THEORY Y: 1. employees can view work as natural as rest or play. 2. People will exercise self-direction and self-control if they are committed to the objectives. 3. The average person can learn to accept, even seek responsibilities. 4. The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.


Hygiene factors are those factors the presence of which does not necessarily motivate but the absence of which, demotivates. According to Herzberg the factors leading to job satisfaction are separate from those that lead to job dissatisfaction

Contrasting views of satisfaction and dissatisfaction

Traditional View Satisfaction Dissatisfaction Herzberg's view Satisfaction Motivators satisfaction Hygiene factors Dissatisfaction Dissatisfaction no no

Contemporary Theories Of Motivation

ALDERFERS: ERG THEORY There are three groups of core needs Existence Relatedness Growth


Achievement , power, and affiliation are three important needs that helps explain motivation. Need for achievement the drive to excel, to achieve in relation to a set of standards, to strive to succeed. Need for power: the need to make others behave in a way that they would not have behaved otherwise. Need for affiliation: the desire for friendly and close interpersonal relationship.


Personal responsibilities

Achievers prefer that offers


Moderate risk


Allocating extrinsic reward for behaviour that had been previously intrinsically rewarding tends to decrease the overall level of motivation.


A cognitive approach, proposing that an individuals purpose directs his or her action. The theory that specific and difficult goals, with feedback, leads to higher performance. Are there any contingencies in goal-setting theory or can we take it as an universal truth that difficult and specific goals will always lead to higher performance? In addition to feedback, four other factors have been found to influence the goal performance relationship. These are : 1.Feedback 2.Goal commitment. 3.Adequate self-efficacy. 4.Task characteristics. 5.National culture.

Goal setting theory presupposes that the individual is committed to the goal; that is, is determined not to lower or abandon the goal. This is most likely to occur when goals are made public, when the individual has an internal locus of control, and when the goal is self-set rather than assigned. Self efficacy refers to the individuals belief that he or she is capable of performing the task. The higher is your self-efficacy, the more confidence you have in your ability to succeed in a tasks. Individual goal setting doesn't work equally well on all tasks,. The evidence suggests that goals seem to have a more

substantial effect on performance when tasks are simple rather then complex, well learned rather then novel, independent rather then interdependent. On interdependent tasks, group goals are preferable. Goal setting theory is culture bound.

A counterpoint to goal-setting theory is reinforcement theory. The former is a cognitive approach, proposing that an individuals purpose directs his or her action. In reinforcement theory, we have a behaviorist approach, which argues that reinforcement conditions behavior.


The job characteristic model : The job characteristic model(JCM) proposes that any job can be divided into 5 core job dimensions.

The Job Characteristic Model

Core job dimensions Skill variety Task identity Task significance Critical psychological states Experienced meaningfulness of the work Personal and work outcomes High internal work motivation High-quality work performance High satisfaction with the work Low absenteeism and turnover


Experienced responsibility for outcomes of works Knowledge of the actual results of the work activities Employee growthneed strength


Expectancy Theory (Victor Vroom) The strength of a tendency to act in a certain way- depends on the
strength of an expectation -that the act will be followed by a given outcome- and on the attractiveness of that outcome to the individual.
1 2 3

Individual effort

Individual performance

Organizationa l Rewards

Personal goals

1. Effort-performance relationship: the probability perceived by the individual that exerting a given amount of effort will lead to performance. 2. Performance-reward relationship: the degree to which the individual perceives that performing at a particular level will lead to the attainment of desired rewards. 3. Rewards-personal goals relationship: the degree to which organizational rewards satisfy an individuals personal goals or needs and the attractiveness of those potential rewards for the individual.

Expectancy Theory (Victor Vroom)

Vrooms theory assumes that behavior results from conscious choices among alternatives whose purpose is to maximize pleasure and minimize pain. Vroom suggested that the relationship between peoples behavior at work and their goals was not as simple as was first imagined by behavioral scientists. An employees performance is based on individual factors such as personality, skills, knowledge, experience and abilities. Vrooms model is based on 3 concepts: VALENCE: strength of an individuals preference for a particular outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. INSTRUMENTALITY: means of the first level outcome in obtaining the desired second level outcome; the degree to which the first level outcome will lead to second level outcome. EXPECTANCY: probability or strength of belief that a particular

Expectancy theory states Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion:

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

Dont Forget Ability And Opportunity



Motivatio n

Opportuni ty


Perception and Cognition


Perception is a process/ by which individuals organize and interpret their sensory impressions/ in order to give meaning to their environment

It is a unique interpretation of the situation not an exact recording of it The word "perception" comes from the Latin words perceptio, percipio, and means "receiving, collecting, action of taking possession, apprehension with the mind or senses

Examples of Perception


Which one is leaning more?

Ugly old lady or Pretty young girl????

What do you see?

And NOW???

STIMULUS OR SITUATION External environment Sensory Stimulation Physical Environment Office Factory Floor Climate etc. Sociocultural Environment Management styles Management Values.


Confrontation Of specific Stimulus (e.g. Supervisor or new Procedure)

Registration of stimulus (e.g. Sensory and neural mechanisms)

Interpretation Of stimulus (e.g. Motivation, learning and personality)

Consequences (e.g. reinforcement/ Punishment or some org. outcome)

Behavior (e.g. overt such as rushing off or covert such as an attitude)

Feedback For clarifications (e.g. kinesthetic or Psychological)

Numerous stimuli are constantly confronting everyone. The principles of perceptual selectivity explain how and why people select only a very few stimuli at a given time.

The principles are External Attention Factors Intensity Size Contrast

Internal Set Factors

Learned aspect of perceptual set Motivation Personality


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Once the information from the situation is received because of perceptual organization the person will perceive organized patterns of stimuli and identifiable whole objects.

The persons perceptual process organizes the incoming information into a meaningful whole.



Figure Ground: Perceived objects stand out as separable from their ground background. Perceptual Grouping: Tendency to group several stimuli together into a recognizable pattern. Similarity Proximity Closure Perceptual Constancy: This permits the individual to have some constancy in a tremendously variable and highly complex world. Perceptual Context: It gives meaning and value to simple stimuli in the environment.

2. 3.



perceiver: Attitudes Motives. Interests Experience Expectation Factors in the situation: Time Work setting social setting


Factors in the target: Novelty Motion Sounds Size Background Proximity

Shortcuts used in Judging others Selective perception Halo Effect Contrast Effects Projection Stereotyping Specific Applications in organizations Employment Interview Performance Expectations ( self fulfilling prophecy ) Performance Evaluation Employee Effort

Attribution Theory

A person tries to determine whether another persons behavior is caused by internal or external factors.

Internal under the personal control of an individual External situation forces a particular

1. Distinctiveness- Refers to whether an individuals displays different behavior in different situation. 2. Consensus- If everyone who faces similar situation responds in a same way, we can say that a behavior shows consensus 3. Consistency- It means that the person display same behavior over the period of time

Projection Attributing ones own characteristics to other people. Selective perception People selectively interpret what they see on the basis of their interest, background, experience, and attitudes. Stereotyping Judging someone on the basis of ones perception of the group to which that person belongs.

Shortcuts used in Judging others

Halo effect Drawing a general positive impression about an individual on the basis of a single characteristic. Contrast effect Evaluating a persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Horn effect Drawing a general negative impression about an individual on the basis of a single characteristic.

Specific Applications in organizations

Employment Interview Performance Expectations (self fulfilling prophecy ) Performance Evaluation Employee Effort

Impression Impression management management is the process by which people attempt to manage or control
the perceptions others form of them. Two separate components of IM are : Impression motivation Impression Construction Five factors of Impression Construction are: Self concept Desired and undesired identity images Role constraints Targets values Current social image


Two basic strategies 1. Demotion preventative strategy accounts apologies disassociation 2. Promotion enhancing strategy entitlements enhancements obstacle disclosures association



DEFINITION The most frequently used definition of personality was produced by Gordon All port nearly 60 years ago.
He said personality is the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment. For our purposes you should think of personality as the sum total of ways in which an individual reacts and interacts with others. This is most often described in terms of measurable personality traits that a person exhibits.


Personality Determinants




Carl Rogers defines self concept as

An organized , consistent, conceptual gestalt composed of perceptions of the characteristics of the I or ME and the perception of the relationship of I or ME to others and to various aspects of life, together with the values attached to these perceptions. I - the personal self

ME - the social self

THE BIG 5 MODEL : While the MBTI may lack valid supporting evidence, that cant be said for the five-factor model of personality more typically called the BIG FIVE. In recent years, an impressive body of research supports that five basic personality dimensions underlie all others. The Big five factors are: (ACE2O) Extraversion: Sociable, talkative, assertive Agreeableness: Good-natured, cooperative and trusting Conscientiousness: Responsible, dependable, persistent and achievement oriented. Emotional stability: Calm, enthusiastic, secure (positive) to tense, nervous, depressed and insecure (negative) Openness to experience: Imaginative, artistically sensitive and intellectual

Freudian Personality Types:

Personality Stages of Psycho-sexual type Development 1 2 3 4

Freudian and Jungian Approach

(Erotic) Optimistic, manipulative, cocky, gullible. (Obsessive) Stingy, stubborn, orderly, meticulous. (Narcissistic) Vain, brash, courageous, stylish. (Detached) Democratic, building system, linking with others, situation specific

The four Jungian Aspects of the MBTI Framework

Carl Jung propounded a theory of understanding individuals and their development. His theory became very popular. He felt people could be typed into extraverts and introverts and that they had two basic processes perception and judgment. He than further divided perception into sensing and intuiting, and judgment into thinking and feelings. This yields four personality dimensions or traits. (1)Introversion/extraversion (2) perceiving/ judging (3 ) sensing/ intuiting (4)thinking/ feeling

Exroverts 2 basic processes Perception Sensing thinking intuiting judgement feeling introverts

Based on his basic elements of human psyche, a mother-daughter team(MyersBriggs) developed a 100-item instrument popularly called MBTI(Myers- Briggs type indicator ). MBTI is most widely used instrument for personality analysis. Sixteen personality types are generated by the instrument (a person can be of any type). These 16 types are based on a combination of four basic elements of psyche.

Sources of energy Extroversion(E) Introversion(I) Collecting information Sensing(S) Intuiting(N) Decision-making Thinking(T) Feeling(F) Understanding the world Judging(J) Perceiving(P)

-Outgoing; speaks, then thinks. Relates more easily to outer world of people and things than to inner world of ideas. -Reflective; thinks, then speaks. Relates more easily to inner world of ideas than to outer world of people. -Practical, concrete. Would work with known facts than look for possibilities and relationships. -Theoretical, abstract. Would look for possibilities and relationships than work with the known facts. -Analytical(head). Relies more on interpersonal analysis and logic than on personal values. -Subjective(heart). Relies on personal values than on impersonal analysis and logic. Structured, organized. Likes a planned and orderly way of life rather than a flexible, spontaneous way. -Flexible, spontaneous. Likes a flexible, spontaneous way rather than a planned and orderly way of life. -



Combination of four Jungian for 16 personality types















Characteristics of Type A and B Personality.
Type A Are impatient with the rate of work Move and eat rapidly Type B Never feel urgency and are patient. Are relaxed, eat in a leisurely fashion and enjoy themselves. Do not display their achievements. Play for fun than to prove themselves

Want to measure everything Do several things simultaneously


Characteristics of Type A and B Personality.
Type A Are impatient with the rate of work Move and eat rapidly Type B Never feel urgency and are patient. Are relaxed, eat in a leisurely fashion and enjoy themselves. Do not display their achievements. Play for fun than to prove themselves

Want to measure everything Do several things simultaneously

There are a number of specific personality attributes that have potential for predicting behavior exhibited at work. Among them, some of the most important facets include: 1. Locus of control 2. Need patterns and Achievement Orientation 3. Introversion and Extroversion 4. Authoritarianism and Dogmatism 5. Machiavellianism 6. Self-esteem 7. Self-monitoring 8. Tolerance for ambiguity 9. Risk-taking 10. Work-ethic orientation 11. Type A and Type B personality patterns

Personality Facets Influencing Behavior at Work

Johari Window

Known to self Known to others Not known to others OPEN

Not known to self BLIND Known to others Not known to others

HIDDEN Known to self

UNDISCOVERED Not known to self

Employee work performance

a en nce t m

st E

en hm lis ab t

G ro w ? th

Maintenanc e?

Declin e Stagnation ?

Explorati on






Tr ia

Ad v












Ericksons 8 Stages of personality development

Ericksons stage / (Success & Failure to meet requirements of stage brings): 1. Infancy (upto 1 year) Basic Trust Vs. Mistrust (Result of neglect, deprivation of love etc) 2. Early Childhood (1 3yrs) Autonomy ( child views self as a person in his own right) Vs. Shame & doubt (feels inadequate, doubts self, curtails learning basic skills like walking, talking, wants to hide inadequacies etc)


Play age (4 7yrs) Initiative (reality testing, imitates, lively imagination etc) vs. Guilt (lacks spontaniety, suspicions, infantile jealousy etc)


School age (6 11 yrs) Industry (develops scholastic & social competencies, has sense of duties etc.) Inferiority (poor work habits, avoids strong competition, feels mediocracy etc)


Adolescence (12 20yrs) Ego identity (role experimenter, ideological commitment etc) vs. Role confusion


Young adulthood (20 24 yrs) Intimacy (capacity to commit self to others, attitude of care respect & responsibility towards another ) Vs. Isolation (avoids intimacy, feeling of social emptiness, seeks purely formal interpersonal relationships)

7. Middle adulthood (25- 65yrs) General activity (productive & creative, establishes & guides the next generation etc) Stagnation (unproductive, feeling of hopelessness & meaninglessness etc)


Late adulthood (old age) Integrity (fully satisfied, death not feared, wisdom of old age comes into being) Vs. Despair (feels shortage of time, finds no meaning in life, has lost faith in self and others , wants 2nd chance of life-cycle, fears death, often depressed etc)


Personality - Attitude & Emotion


Attitude & its 3 components

Three components of attitude are:
Cognition Affect Behavior

Cognition a description or belief in the way things are Affect emotional or feeling segment Behavior intention to behave in a particular manner
Personality - Attitude & Emotion 93

A statement like my pay is less is a description The aspect of description or belief is the cognitive component of attitude An employees description of supervisor at work is example of Cognitive component

Personality - Attitude & Emotion


Cognitive component sets stage for Affective component This is the Emotional & Feeling segment of Attitude An employees description such as Im upset on how I was behaved with is a reflection of the same

Personality - Attitude & Emotion


This is the intention to behave in a certain manner The behavior can be towards someone or some issue Behavioral component is little detached from the other two components, as it might get personally biased An eg. Im going to look for another job that pays better

Personality - Attitude & Emotion


Exhibit 3.1
Cognitive = Evaluation
My supervisor gave a promotion to my Co-worker who deserved it less than me

Affective = Feeling
I dislike my supervisor

Negative attitude towards supervisor

Behavioral = Action
Id complain about my supervisor to anyone who would listen

Personality - Attitude & Emotion


Does Behavior follow Attitude?

Researchers believe that it is true as attitude people hold determines how they perform Just like how people watch TV programs they like, employees try to avoid assignments they find distasteful It refers to Cognitive dissonance i.e. incompatibility an individual might perceive between two or more attitudes Leon Festinger argues in his theory Attitude follows behavior that any form of inconsistency is uncomfortable and the individual will attempt to reduce the dissonance & hence, the discomfort

Personality - Attitude & Emotion


Major Job Attitudes

OB observers find three major Job Attitudes
Job Satisfaction Job Involvement Organizational Commitment

Job Satisfaction it describes a positive feeling about a job, resulting from an evaluation of its characteristics Job Involvement this measures the degree people identify jobs performance to their own self worth Organizational Commitment a state where employee identifies with the job, organization and its goal and commits himself to it
Personality - Attitude & Emotion 99


Personality - Attitude & Emotion


Are we satisfied with our job?

The answer generally from employees as per a survey in most developed countries is yes Past 30 years generally indicate workers satisfied with their jobs rather than being dissatisfied Satisfaction depends upon various aspects like work environment. Co-workers, supervisors, etc.
Personality - Attitude & Emotion 101

Job Satisfaction Meaning

Job Satisfaction is defined as the positive feeling which comes after evaluating the characteristics of the job As there are so many facets to job Satisfaction it is difficult to define the exact definition Thus, companies try to find this answer through various methods like questionnaires, regular inter-departmental reviews & various other means depending upon the feasibility of it

Personality - Attitude & Emotion


How Satisfied People Are?

Research has shown that jobs which provide more training, variety, independence and control over the area of work provide the maximum satisfaction Apart form these the over all job makes the prime reason for Job satisfaction Most people prefer jobs that are challenging & stimulating over work that is predictable or routine
Personality - Attitude & Emotion 103

Cause of Job Satisfaction

The relation of salary & job satisfaction poor economy employee would relate to money as job satisfaction People who are positive of themselves are more likely to like their jobs This is referred to as Core Self-evaluation who believe in their inner worth and competence Positive Core Self-evaluation Higher Job Satisfaction Negative Core Self-evaluation Lower Job Satisfaction

Personality - Attitude & Emotion


Satisfied & Unsatisfied Employees

There are consequences when employees like or dislike their jobs A theoretical model the Exit-Voice-LoyaltyNeglect framework helps in understanding consequence of dissatisfaction The four responses of this framework is shown in the next slide along two dimensions : Constructive/Destructive & Active/Passive
Personality - Attitude & Emotion 105

Satisfied & Unsatisfied Employees Active

Direct behavior to leave organization Looking for new position & resigning


Active & constructive attempt to improve conditions Suggest improvements Discuss problems Undertake union forms




Passively allow conditions to worsen Chronic absenteeism or lateness Reduced effort Increased Error rate


Patiently allow conditions to improve Speaking for organization against criticism Trusting the organization & its management to do right things


Personality - Attitude & Emotion



Early 1930s & 1940s, an idea that happy workers were productive workers was drawn by researchers at Western Electrics In 1980s, research suggested that relationship between Job satisfaction & Job performance was not high More recently, a review of 300 studies says that relationship is now considered at a moderate high
Personality - Attitude & Emotion 107

Myth or Science Happy Workers are Productive Workers??

Productive workers are likely to be happier as productivity leads to satisfaction If one does a good job, one intrinsically feels good about it Higher productivity should increase recognition, pay levels, likelihood of promotion

Myth or Science Happy Workers are Productive Workers??

Personality - Attitude & Emotion


Global Concept?
People from different countries and from different cultures form judgments of job satisfaction For eg. Pay is positively, however relatively weakly, related to job satisfaction Even though different in cultures, the similar factor are responsible for the cause of Job satisfaction
Personality - Attitude & Emotion 109

Western Cultures & Impact

Research Evidence suggests western cultures have higher job satisfaction levels than eastern cultures It also suggests individuals in eastern cultures value negative emotions more than individuals in western cultures Conversely to above, western individuals emphasis on positive emotions and individual happiness
Personality - Attitude & Emotion 110

Asian & Indian Cultures

Unlike Asian counterparts, Indian workers are least satisfied with their compensation & benefits Conversely, Indian workers are happy with the environment, teamwork, supervision & training provided at work place Research derives that work condition in Asia are below than Western standards, the buoyant economy & optimistic job outlook keeps workers engaged

Personality - Attitude & Emotion


Summary We have covered

Attitude and its contrasting components Relationship of attitude & behavior Defined Job satisfaction & its main causes Identified four employee responses to dissatisfaction Job satisfactions relevant concept other than U.S

Personality - Attitude & Emotion




AFFECT EMOTIONS Caused by specific event Very Brief in duration & Specific numerous in nature ( anger, joy, Distinct facial surprise) expressions Action oriented MOODS General & unclear cause Lasts longer than emotions Generally not indicated by distinct expressions Cognitive in nature

Rene Descartes, identified six basic emotions-

Six Essential Universal emotions

Wonder Love Hatred Desire Joy Sadness All others composed of above emotions. Some philosophers Disagreed.

Happiness Surprise Fear Sadness Anger Disgust

Tense Nervou s Stresse d Upset Sad Depresse d Bored Content Serene Relaxed Fatigue d Calm Alert Excited Elated Happy




Rationality or Irrationality Serve as Motivators Serve a Purpose


Personality Weather Stress Social Activities Sleep Exercise Age Gender

Day of the week

Time of Day

Every job demands emotional labour. Emotional dissonance Felt Emotions vs. Displayed Emotions Surface Acting vs. Deep Acting


Work Environment Characteristic s of job Job demands Requirements for emotional labour

Work events Daily hassles Daily uplifts

Emotional reactions Positive Negative Personal disposition Personality Mood

Job Satisfaction Job performance

A Persons ability to
Be self aware Detect emotions in others Manage emotional cues & information

CASE FOR EI Intuitive appeal Predicts Criteria that matter Biologically Based CASE AGAINST EI Too vague a concept Cant be measured Validity is a suspect








Leadership and management are two terms that are often confused. What is the difference between them? John Kotter of Harvard Business School argues that management is about coping with complexity. Leadership in contrast is about coping with change. Leadership is the ability to influence a group towards achievement of goals.


Theories of leadership
TRAITS THEORY: The media has long been the believer in Traits Theory of Leadership- differentiating leaders from nonleaders by focusing on personal quality and characteristics. After numerous studies and analysis, about the best thing that could be said was that the following seven traits seemed to differentiate leaders from non-leaders: 1. Ambition and energy 2. The desire to lead 3. Honesty and integrity 4. Self-confidence 5. Intelligence 6. High self-monitoring 7. Job relevant knowledge

But the power of these traits to predict leadership continue to be modest. A breakthrough, of sort, came when researchers began organizing traits around The Big Five Personality framework. Based on latest findings, the two conclusions are possible: First, the traits can predict leadership Second, traits do better jobs at predicting the emergence of leaders and appearance of leaders than in actually distinguishing between effective and ineffective leaders.

Behavioral theories
The failure of early traits studies led researchers in the late 1940s through the 1960s to go in a different direction. They began looking at the behavior exhibited by specific leaders. They wondered if there was something different in the way effective leaders behave. We look at four different behavioral theories. Lets consider the practical implications of the behavioral approach. Traits theories assumed that leaders are born rather than made. On the other hand, if there were specific behaviors that identified leaders, than we could teach leadership.

Ohio State Studies

initiating str consideration
The most comprehensive and replicated of the behavioral theories resulted from research that began at Ohio State University in the late 1940. researchers sought to identify independent dimensions of leaders behaviour. They eventually narrowed the list to two categories that substantially accounted for most of the leadership behaviour described by the employees. they called those two dimensions initiating structure and consideration. Initiating structure refers to extent to which a leader is likely to define and structure his or her role and those of employees in the search of goal attainment. It includes behaviour that attempts to organize work, work relationships, and goals.

Consideration is described as the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees ideas, and regard for their feelings. He or she shows concern for followers comfort, well-being, status and satisfaction. A leader high in consideration could be described as one who helps employees with personal problems, is friendly and approachable, and treats all employees as equal.

University of Michigan Studies

Leadership studies undertaken at University of Michigans Research Center at about the same time as those being done at Ohio State had similar research objectives: to locate behavioral characteristics of leaders that appeared to be related to measure the performance effectiveness. The Michigan group also came up with two dimensions of leadership behaviour that they labeled employee oriented and production oriented. Leaders who were employee-oriented were described as emphasizing interpersonal relations; they took personal interest in needs of their employees and accepted individual differences among members. The production-oriented leaders, in contrast tended to emphasize the technical or task aspects of the job their main aim was to accomplish their groups task and group members were means to the end.


(Blake and Mount)
Hig h

Concern for people

Low Low Concern for production Hig h

The Managerial Grid

A graphical portrayal of two dimensional view of leadership style was developed by Blake and Mouton. They proposed a managerial grid, based on the styles of concern for people and concern for production, which essentially represents the Ohio State dimensions for consideration and intuiting structure or the Michigan dimensions of employee-oriented and production-oriented. The grid has 9 possible positions along each axis, creating 81 different positions in which the leaders style may fall. The grid does not show the results produced but, rather, the dominating factors in the leaders thinking in regards to getting results.

Scandinavian studies
Researchers in Sweden and Finland began reassessing whether there are only two dimensions that capture the essence of leadership behaviour. Their basic premises is that in a changing world, effective leaders would exhibit development-oriented behaviour. These leaders are those who value experimentation, seek new ideas, and generate and implement change.

Predicting leadership success is more complex than isolating a few traits or preferable behavior. The relationship style and effectiveness suggested that under condition a, style x would be appropriate, whereas style y will be more suitable to condition b, and style z for condition c. Several approaches to isolating key situational variables have proven much more successful than others, and, as a result, have gained wider recognition. We shall consider The Fiedler Model, Hersey Blanchards situational theory, leader member exchange theory and the path-goal theory.

The Fiedler contingency model proposes that effective group performance depends upon proper match between the leaders style and degree to which the situation gives control to the leader. Identifying Leadership Style Fiedler believes that the key factor in leadership success is the individuals basic leadership style. So he begins by trying to find out what that basic style is. Fielder created least preferred coworker(LPC) questionnaire for this purpose; it purports to measure whether a person is taskor relationship-oriented. Fiedler assumes that an individuals leadership style is fixed. This is important because it means that if the situation requires a task-oriented leader and a person in that leadership position is relationship-oriented, either the situation has to be modified or the leader replaced if optimal effectiveness is to be achieved.

Fiedler Model

Defining The Situation Fiedler has identified three contingency dimensions/variables that, he argues, defines the key situational factors that determine leadership effectiveness. These are leader member relations, task structure, and position power. They are defined as follows: 1.Leader-member relations: the degree to which members have confidence, trust, and respect in their leader. 2.Task structure: the degree to which job assignments are procedurized (i.e. structured or unstructured). 3.Position power: the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases. The next step in this model is to evaluate the situation in terms of these three contingency variables. Leadermember relation are either good or poor, task structure is either high or low, and position power is either strong or weak.

Fiedler stated better the leader member relation, the more highly structured the job, and stronger the position power, the more control the leader has. He says that task-oriented leaders perform better in situation of high and low control, while relationship-oriented leaders perform best in moderate control situations.

Paul Hersey and Ken Blanchard have developed a leadership model that has gained a strong following among management development specialists. Situational leadership is a contingency theory that focuses on the followers. Successful leadership is achieved by selecting the right leadership style, which Hersey and Blanchard argue is contingent on the level of the follower's readiness. SLT essentially views the leader-follower relationship as analogous to that between a parent and a child. Just as a parent needs to relinquish control as a child becomes more mature and responsible, so too should leaders. Hersey and Blanchard identify four specific leader behaviourfrom highly directive to highly laissez-faire. The most effective behaviour depends on a followers ability and motivation. So SLT says if a follower is unable and unwilling to do a task, the leader needs to give clear and specific directions; if followers are unable and willing, the leader needs to display high task orientation to compensate for the followers lack of ability and high relationship orientation to get the follower to buy into the leaders desires; if followers are able and unwilling, the leader needs to use a supportive and participative style; and if the employee is both able and willing, the leader doesnt need to do much.

Hersey and Blanchards Situational Theory



Share ideas and facilitate in decision making
pa rt i cip ng at i

decisions and provide opportunity for clarification

llin Se


Supportive behaviour

leg a g tin

ng lli Te

Low Low

Turn over Provide responsibiliti specific es for instructions decisions and closely and supervised implementat performance ion Follower readiness



Leader-Member Exchange Theory

Personal compatibility, Subordinate competence, And/or extroverted personality Leader

Trust Subordina te B Subordina te C In-group

High interaction Subordina te D

Formal relations Subordina te E Subordina te F Out-group

Subordinat eA

Leader-Member Exchange Theory

Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction. Did you notice that leaders often act very differently toward different people? Did the leader tend to have favorites who made up his or her in-group? Yes to both these questions, youre acknowledging the foundation of leader-member exchange theory. The leader-member exchange (LMX) theory argues that because of time pressures, leaders establish a special relationship with a small group of their followers. These individuals make up the in-groupthey are trusted, get a disproportionate amount of the leaders attention, and are more likely to receive special privileges. Other followers fall into the outgroup. They get less of the leaders time, fewer of the preferred awards that the leader controls, and have leader-follower relationships based on formal authority interactions.

The Path-Goal Theory

Environmenta l contingency factors: Task structure Formal authority system Work group

Leader behaviour Directive Achievement oriented Participative supportive

Outcomes Performan ce satisfactio n

Subordinate contingency factors: Locus of control Experience Perceived ability

Path-Goal Theory
The theory that it is the leaders job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that the goals are compatible with the overall objectives of the group or organization The essence of path-goal theory is that its the leaders job to The Theory provide followers with the information, support, or other resources necessary for them to achieve their goals. The term path-goal is derived from the belief that effective leaders clarify the path to help their followers get from where they are to the achievements of their work goals and to make the journey along the path easier by reducing roadblocks. Leader Behaviour House identified four leadership behaviors. The directive leader lets followers know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. The supportive leader is friendly and shows concern for the needs of followers .The participative leader consults with followers and uses their suggestions before making a decisions. The achievement leader sets challenging goals and expects followers to perform at their highest level. In contrast to Fiedler, House assumes that leaders are flexible and that the same leader can display any or all of these behaviors depending on the situations.

Contingency Variables And Predictions Path-goal theory proposes two classes of situational or contingency variables that moderate the leadership behaviouroutcome relationshipthose in the environment that are outside the control of the employee (task structure, the formal authority system, and the work group) and those that are part of the personal characteristics of the employee (locus of control, experience, and perceived ability). The following are illustrations of predictions based on path-goal theory: Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. Supportive leadership results in high employee performance and satisfaction when employees are performing structured tasks. Directive leadership is likely to be perceived as redundant among employees with high perceived ability or with considerable experience. Employees with an internal locus of control will be more satisfied with a participative style. Achievement-oriented leadership will increase employees expectancies that effort will lead to high performance when tasks are ambiguously structured.

Charismatic Leadership
Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviour. The leader conveys, through words and action, a new set of values. Finally, the charismatic leader makes self-sacrifices and engages in unconventional behaviour.

Characteristics of charismatic Leader 1. Vision and articulation. Has a vision expressed as an

2. 3. idealized goal that proposes a future better then the status quo; and is able to clarify the importance of the vision in terms that are understandable to others. Personal risk. Willing to take on high personal risk, incur high cost, and engage in self-sacrifice to achieve the vision. Environmental sensitivity. Able to make realistic assessment of the environmental constrains and resources needed to bring about change. Sensitivity to follower needs. Perceptive of others abilities and responsive to their needs and feelings. Unconventional behaviour. Engages in behaviors that are perceived as a novel and counter to norms.

4. 5.

Transformation Leadership
Transitional leaders: leaders who guide or motivate their followers in the direction of established goals by clarifying the role and task requirements. Transformational leaders: leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers.

Characteristic of transactional and Transformational leaders

Transactional leaders:___________________________________ Contingent Reward: Contracts exchange of reward for effort, promises rewards for good performance, recognizes accomplishments. Management By Exception (Active): Watches and searches for deviations from rules and standards, take the corrective actions. Management By Exception (Passive): Intervenes only if standards are not met. Laissez-faire: Abdicates responsibilities, voids making decisions. Transformational leaders:_________________________________ Charisma: provides vision and sense of mission, instills pride, gains respect and trust. Inspiration: communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways. Intellectual stimulation: promotes intelligence, rationality, and careful problem solving. Individualized consideration: gives personal attention, treats each employee individually, coaches, advises.


They always say time changes things, but you actually have to change them yourself

What is CHANGE?

To make or become different, give or begin to have a different form. Dissatisfaction with the old and belief in the new. Process of growth, decline and transformation within the organization. Movement from one state of being to another. It need not be voluntary, desired or planned. It need not be physical movement Movement in mindset.


Change + Manageme nt

Change management is a structured approach to the change in individuals, teams, organizations and societies that enables the transition from a current state to a desired future state. Change management is an aspect of management focusing on ensuring that the firm responds to the everdynamic environment in which it operates.


Change has been there since humans existence. Change is necessary, challenging, continuous Today, the magnitude and pace of change is very high. More turbulence in the environment. Turbulent environment stresses on the importance of Managing Change.


Principles of Change Management Understand where you/the organisation

is at the moment. Understand where you want to be, when, why, and what the measures will be for having got there. Plan development towards above No.3 in appropriate achievable measurable stages. Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible

Political Changes

Nature of Workforce Technology


Forces For Change Economic

Competition Social Forces

Prentice Hall, 2001

And more..
Changing customer preferences. Changing demographics. Organizational restructuring. Economic changes, social trends

Change can be conceived as: Change as continuous and intrinsic. Change as extrinsic and discontinuous. Change can be patterned and predictable, or can be complex and unpredictable



Organizational Change arises from:The development of new products. The entry of new competition. Changes in consumer tastes & preferences. Changes in the cultural, political, economic, legal and social framework. Changes in technology leading to technological obsolescence or new product opportunities.

Forces of Organizational Change

Internal forces: Desire to increase profitability Reorganization to increase efficiency Conflict between departments To change organizational culture Nature of workforce

External forces:


Customer demand Globalization & Competition Cost of inputs Legislation New technology Ethics Political

Change Levers in an Organization

Technology Human resource Marketing Cost Quality Structure Strategy

Types of Change
Happened Change. Reactive Change. Anticipatory Change. Planned Change. Incremental Change. Operational change. Strategic change.

Directional Change. Fundamental Change. Total Change. Transformational change. Revolutionary change. Recreation

Perspectives on Change
Contingency Perspective. Resource Dependence Perspective. Population-ecology Perspective. Institutional Perspective.

Deals with broad, long-term and organization-wide issues. It is about moving to a future state that has been defined generally in terms of strategic vision and scope. It will cover the purpose and mission of the organization, its corporate philosophy. This overall definition leads to specification of competitive position and strategic goals. Strategic changes takes place within the context of external competitive, economic and social environment, and the organizations internal resources, capabilities culture, structure and system. Strategic change, however should not be treated simplistically as a linear process of getting from A to B which can be planned and executed as a logical sequence of events.

Operational changes relates to new system, procedure, structures or technology which will have an immediate effect on working arrangements within a part of the organization.

Organizational barriers to change
Structural inertia Existing power structures Resistance from work groups Failure of previous change initiatives

Individual barriers to change

Tradition and set ways Loyalty to existing relationships Failure to accept the need for change Insecurity Preference for the existing arrangements Break up of work groups Different person ambitions Fear of: Loss of power, Loss of skills, Loss of income, The unknown

Inability to perform as well in the new situation

Four basic reasons why change is resisted ( Kotter and Schlesinger)
Parochial self interest Individuals are more concerned with the implications for themselves

Communications problems , Inadequate information

Low tolerance of change Sense of insecurity, Different assessment of the situation

Disagreement over the need for change

Disagreement over advantages and disadvantages


1. 2. 3. 4. 5.

Assemble a change management. Establish a new direction for the organization. Prepare the organization for change. Set-up change teams to implement change. Align structure, systems and resources to support change 6. Identify and remove roadblocks to change. 7. Absorb changes into the culture of the organization

Change Process

Organizational Change




Lewins Three-Step Process

Unfreezing the Status Quo

Desired State
Restraining Forces

Status Quo
Driving Forces Time

Models of Change Kurt Lewin 3 stage model

1. b. c. d. Unfreezing: Creating motivation and readiness to change through: Disconfirmation / lack of confirmation. Creation of guilt or anxiety. Provision of psychological safety.

2. Changing through cognitive restructuring: helping to see, judge, feel, react to things differently based on a new point of view obtained through a. Identifying with a new role model, mentor b. Scanning the environment for new, relevant information. 3. Refreezing : helping to integrate the new point of view into a. The total personality and self concept. b. Significant relationship.

Kubler Rosss transition cycle (change model)
1. 2. 3. 4. 5. Denial Anger Bargaining Depression Acceptance

Kotter's Eight steps to successful change

Beckhards model
According to Beckhard, a change programme should incorporate the following process: Setting goals and defining the future state or organizational conditions desired after the change; Diagnosing the present condition in relation to these goals. Defining the transition state activities and commitments required to meet the future state. Developing strategies and action plans for managing this transition in the light of an analysis of the factors likely to affect the introduction of change

Thurely described the following five approaches to manage change: 1. Directive : this is done by exercise of managerial power without consultation. 2. Bargained : this approach is to recognize that power is shared. 3. Hearts and mind : this is normative approach, it seeks commitment and shared vision but does not necessarily include involvement and participation. 4. Analytical : a theoretical approach to change the process using model such as those described above. 5. Action based : this recognizes that the way managers behave in practice bears little resemblance to the analytical, theoretical model.

Thurelys model

Beer et als model

Beer et al suggested the following steps: 1.Mobilize commitment to change. 2.Develop a shared vision 3.Foster consensus. 4.Spread revitalization to all departments. 5.Institutionalize revitalization through formal policies. 6.Monitor and adjust strategies.






Tips for improving acceptance of Change

Be open-minded for new ideas. Do not sort out options and ideas until a final decision has to be taken. Protect new ideas from criticism. Listen to suggestions and appreciate good ideas. Eliminate the We have always done it that way-culture. Move your employees and the whole organization out of the comfort zone. Learn from mistakes in the past.

Focus on the good aspects of a new idea rather than on potential problems. Share risks. Build upon ideas. Do not make your judgment on ideas and suggestions too early. And again: let your employees participate in all phases of the change process. Build commitment!!!


Definition Of Conflict
A Process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about

Levels and Types of Conflict

Levels of conflict Types of conflict







Transition in Conflict thought


Traditional View
Was consistent during 1930s & 1940s Conflict was viewed negatively Synonym with violence, destruction & irrationality All conflict was harmful and must be avoided

All conflicts are harmful and must be avoided.

Traditional View....
It was a dysfunctional outcome of Poor Communication Lack of openness Lack of trust between people

Failure of management toward employee need

All conflicts are harmful and must be avoided.

Human Relations View

Was consistent during 1940s & 1970s Conflict was a natural occurrences Conflict was inevitable Sometimes even conflict may benefit a group performance
Conflict is natural and inevitable outcome in any group.

It Encouraged Conflict Conflict act as a encouragement force Conflicts are A positive force in a group Absolutely necessary for a group to perform effectively

Task conflict relate to the content and goal of the work Relationship conflict focus on interpersonal relationship Process conflict focus on how the work get done

Functional conflict increase the performance of a group Also known as constructive forms of conflict Dysfunctional group hinder the performance of a group Also known as Destructive forms of conflict

Functional and Dysfunctional Conflict

Functional Conflict : works towards an organization goal. Dysfunctional Conflict : blocks an organization or group from reaching its Goals Task conflict: content and goals of work. Relationship conflict : interpersonal relationships. Process conflict : how work gets done.


The conflict process has 5 stages : 1.Potential Opposition or Incompatibility 2.Cognition and Personalization 3.Intentions 4.Behavior 5.Outcomes

Stage I Potential Opposition Or Incompatibility

Stage II Cognition and personalization

Stage III Intentions

Stage IV Behavior

Stage V Outcomes

Antecedent Conditions: Communication Structure Personal Variables

Perceived Conflict

Conflict handling Intentions Kilman model Competing Collaborating Avoiding Accommodating Compromising

Overt Conflict Manifest C Partys Behavior Others Reaction

Increased group performance

Felt Conflict

Decreased group performance

STAGE 1: Potential opposition or Incompatibility

There are basically 3 conditions that create opportunities for conflict to arise 1.Communication 2.Structure 3.Personal Variables

The potential for conflict increases when either too little or too much communication takes place Increase in communication is functional up to a point, whereupon it is possible to overcommunicate, with a resultant increase in the potential for conflict

The larger the group and the more specialized its activities, the greater the likelihood of conflict Diversity of goals among groups is also a major source of conflict Reward systems are found to create conflict when one members gain is at anothers expense

Personal Variables
It includes : Personality Emotions Values

STAGE 2: Cognition and Personalization

If the conditions cited in STAGE 1 negatively affected something that one party cares about, then the potential for opposition or incompatibility becomes actualized in the 2nd stage PERCEIVED CONFLICT: One or more of the parties must be aware of the existence of the antecedent conditions FELT CONFLICT: When individuals become emotionally involved, that parties experience anxiety, tension, frustration, or hostility

Stage 3: Intentions
Intentions Decisions to act in a given way Cooperativeness: Attempting to satisfy the other partys concerns Assertiveness: Attempting to satisfy ones own concerns


Competing Compromisin g Collabarating

Accomodatin g


5 conflict handling styles

Competing : A desire to satisfy ones interests, regardless of the impact on the other party to the conflict Collaborating : A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties

Avoiding : The desire to withdraw from or suppress a conflict Accommodating : The willingness of one party in a conflict to place the opponents interests above his or her own Compromising : A situation in which each party to a conflict is willing to give up something

How to minimize conflict?

Be a good listner. Be sensitive of others needs. Be co-operative than competitive. Advocate participative leadership. Compromise than dominate. Build rapport through conversations. Be compassionate and understanding Avoid conflict by emphasing on harmony Nuture and mentor others

RANK 1 2 2 3 4 5 6 7 8


Tips for managers whose employees are having personality conflict 1. Follow company policies for diversity and anti-discrimination etc. 2. Investigate and document conflict. 3. If in appropriate take corrective action (e.g. feedback) 4. If necessary ,attempt informal dispute resolution. 5. Refer to human resource specialist in your organisation

Agreement : Try for equitable and fair agreements that last. Desired outcomes of Stronger Relationships: Build bridges of goodwill and trust for future. Learning : Greater self awareness and creative problem solving.


Stage 4: Behavior
A dynamic process. Conflict becomes visible. Includes the statements,actions,and reactions. Stimulus quality separate from intentions.

Visualizing conflict behavior

other party

Annihilatory conflict

Conflict-intensity continuum
overt efforts to destroy the Aggressive physical attacks Threats and Ultimatums Assertive verbal attack overt questioning or challenging

of others Minor disagreements or Misunderstandings

No Conflict

Conflict Management Techniques

1. 2. 3. 4. 5. 6. 7. 8. 9. Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authorative Command Altering human variable Altering structural variables Face to Face meeting Creating a shared goal Can create a win/win situation Withdrawal form or suppression Playing down differences Giving up something of value Management uses its formal authority Behavioral change techniques Changing the formal organization structure

Conflict-Stimulation Techniques
Communication messages Bringing in outsiders Adding employees to a group Making structural changes to disrupt Ambiguous or threatening

Restructuring the org the status quo Appointing a devils advocate

Designating a critic

simulates creativity and innovation. 2. It encourages interest and curiosity among group members.

DYSFUNCTIONAL : 1. Uncontrolled opposition breeds discontent, which acts to dissolve common ties, and eventually leads to destruction of the group. 2. It reduces group effectiveness. 3. Retarding of communication 4. Reduction in group cohesiveness 5. It may potentially threaten the groups existence.

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate of them. Approaches to Negotiation Distributive Bargaining Integrative Bargaining

Distributive Bargaining
Negotiation that seeks to divide up a fixed amount of resources; a win/lose situation. Based on fixed, opposing viewpoints (positions) and tends to result in compromise or no agreement at all.

Integrative Bargaining
Negotiation that seeks one or more settlements that can create a win/win situation. Potentially gives every party what they want.

Distributive Versus Integrative Bargaining

Bargaining Characteristic Goal Distributive Bargaining Get as much of the pie as possible Win/lose Positions Opposed Integrative Bargaining Expand the pie so that both parties are satisfied Win/win Interests Congruent High Long term

Motivation Focus Interests

Information Sharing Low Duration of relationship Short term

Negotiation Process

Individual Differences in Negotiation Effectiveness

Personality Traits in Negotiation Moods/Emotions in Negotiation Gender Differences in Negotiations

Conflict management is responsibility of all. Understanding your style can assist in working with others. All styles have their place but Collabaration is best for most work situations.


A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

Bargaining Strategies
Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution.

Distributive Versus Integrative Bargaining

Bargaining characteristics Goal Distributive Bargaining Get as much of the pie as possible Win/lose Opposed Integrative Bargaining Expand the pie so that both parties are satisfied Win/win Congruent High Long term

Motivation focus Interests

Information sharinglow Duration of relationship Short term

The Negotiation Process

Preparation and planning

Definition of ground rules

Clarification and justification


Bargaining and problem

Closure and implementation

Issues in Negotiation
The Role of Personality Traits in Negotiation
Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes.

Gender Differences in Negotiations

Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. Men and women with similar power bases use the same negotiating styles. Womens attitudes toward negotiation and their success as negotiators are less favourable than mens

Third-Party Negotiations
Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.

Third-Party Negotiations (contd)

A trusted third party who provides an informal communication link between the negotiator and the opponent.

An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.

Organizational Culture

Definition : Basic assumptions, values and Norms drive Practices and behaviors. A common perception held by organizations members: a system of shared meaning: Robbins.
A pattern of basic assumptions

Invented, discovered, or developed by a group As it learns to cope With its problems of external adaptation and internal integration That has worked well enough To be considered valuable and therefore, to be taught to new members As the correct way to perceive, think, and feel in relation to those problems

Types of organizational culture Dominant culture :

Express the core values that are shared by a majority of the organizations members.

Subcultures :

Mini culture within an organization, typically defined by the department, designation and geographical separations.

How Organization Culture Forms ?

Top Management Philosophy of Organizations founder Selection Criteria Socialization Organization Culture

Characteristics Observed Behavioral regularities Norms Dominant Values Philosophy Rules Organizational Climate Innovation and Risk taking Attention to Detail Outcome Orientation Team Orientation Aggressiveness Stability

Boundary Defining Role Sense of Identity for Organization Members Facilitates Commitment to something larger than ones Individual self Interest Enhances Social System Stability Serves as a Sense Making & Control Mechanism that Guides & Shapes the Attitude & Behaviour of the Employees.



strengt h









Relationship of Environment and Strategy to Corporate Culture

Needs of the EnvironmentStability Flexibility


Strategic Focus

Adaptability Culture

Mission Culture

Clan Culture

Bureaucrat ic Culture


Learning Organization
Peter Senge popularized the term They have five characteristics in common: 1.Develop personal mastery 2.Use mental models 3.Build a shared vision 4. understand the power of team learning 5.Use systems thinking





Be receptive to new ideas. Overcome desire to Closely Control Operations. Teach their people to look at things differently. Develop systemic thinking. Develop creativity among personnel: - Personnel Flexibility. - Willingness to take risks/ accept failure. Develop a sense of personal efficacy.

Ethical Organizational Culture

An organizational culture most likely to shape high ethical standards is one thats: High in risk tolerance Low to moderate in aggressiveness Focuses on means as well as outcomes

Ethical Organizational Culture

Steps to create a more ethical culture: Be a visible role model Communicate ethical expectations Provide ethical training Visibly reward ethical acts and punish unethical ones Provide protective mechanisms

Positive Organizational Culture

A positive organizational culture is defined as a culture that emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth.

Building on Employee Strengths

A positive organizational culture emphasize on showing workers how they can capitalize on their strengths. It does not ignore problems.

Rewarding more than punishing Catch employees doing the right things. Apart from extrinsic awards like pay, focus on smaller awards like praise. Failing to praise can become a silent killer.

Emphasizing Vitality and Growth

A positive organizational culture emphasizes not only on organizational effectiveness, but individual growth as well. It shows an interest in what organization does for the employee.

Limits of Positive Culture

Positive organizational culture is a new area. There is uncertainty about when and where it works best. Organizations need to be careful not to pursue Positive organizational culture past the point of effectiveness.

Spirituality and Organization Culture

Spirituality: It recognizes that people have inner life that is nourished by meaning full work. Organization recognizes that people have Mind & Spirit. Seek to find meaning and purpose in work. Awareness of Spirituality helps to understand behavior of employees.

Reasons For Growing Interest in Spirituality: Increase in need for involvement and connection. To counter feeling of emptiness and lack of faith. Job demand makes workplace dominant in many peoples lives. Desire to integrate personal life to professional life. Material acquisition does not guarantee happiness.

Characteristics Of Spiritual Org.: Strong sense of purpose. Trust and Respect. Humanistic work practices. Toleration of employee expression.

Benefits Of Spirituality: Improved Productivity. Employees satisfaction. Increase creativity, Team Performance and Organisation Commitment. Example:- Southwest Airlines.



YES/NO US business model has been very influencial. Japan, Great Britain germany follow it. Europe and Asia --Bureaucratic structure US management, presses a lot on individual leadership

EAST Custom of treating employees as a family Taking care of there needs and problems beyond workplace Setups a bond between people and company

WEST BOSS can reach out to subordinates for knowledge Subordinates can question the boss Follow analytical , critical style of interaction Team decision


Centralized Slow decision making Individual orientation Exhibit resistance to change Slow communication Low on knowledge sharing Mncs have brought about a considerable change


Break the boundaries created by geography Coco cola, US company ,global corporations There business is spread across the world Companies Struggle to incorporate geographic regions into their structure Boundaryless organizations-follow Tactical, logistical issue than a structural issue

NEC Corp, Boeing ,Apple Computers Have strategic alliances , joint partnership with companies Organizations and companies joint projects AT&T,receive bonus S/W engineers from india work for silicon valley companies


Questions Employees Have

What am I supposed to do? How am I supposed to do it? To whom do I report? To whom do I go if I have a problem?


What Is Organizational Structure?

Organizational Structure How job tasks are formally divided, grouped, and coordinated.
Key Elements: Key Elements: Work specialization Work specialization Departmentalization Departmentalization Chain of command Chain of command Span of control Span of control Centralization and Centralization and decentralization decentralization Formalization Formalization

Key Design Questions and Answers for Designing the Proper Organization Structure
The Key Question By
1. To what degree are articles subdivided into separate jobs? 2. On what basis will jobs be grouped together? 3. To whom do individuals and groups report? 4. How many individuals can a manager efficiently and effectively direct? 5. Where does decision-making authority lie? 6. To what degree will there be rules and regulations to direct employees and managers?

The Answer Is Provided

Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization

What Is Organizational Structure? (contd)

Work Specialization The degree to which tasks in the organization are subdivided into separate jobs.
Division of labor: Division of labor: Makes efficient use of employee skills Makes efficient use of employee skills Increases employee skills through repetition Increases employee skills through repetition Less between-job downtime increases Less between-job downtime increases productivity productivity Specialized training is more efficient. Specialized training is more efficient. Allows use of specialized equipment. Allows use of specialized equipment.

What Is Organizational Structure? (contd)

Departmentalization The basis by which jobs are grouped together. Grouping Activities By: Grouping Activities By: Function Function Product Product Geography Geography Process Process Customer Customer

What Is Organizational Structure? (contd)

Authority The rights inherent in a managerial position to give orders and to expect the orders to be obeyed. Chain of Command The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. Unity of Command A subordinate should have only one superior to whom he or she is directly responsible.

Span of Control The number of subordinates a manager can efficiently and effectively direct.
Concept: Concept: Wider spans of management increase Wider spans of management increase organizational efficiency. organizational efficiency. Narrow Span Drawbacks: Narrow Span Drawbacks: Expenseof additional layers of management. Expense of additional layers of management. Increasedcomplexity of vertical communication. Increased complexity of vertical communication. Encouragementof overly tight supervision and Encouragement of overly tight supervision and discouragement of employee autonomy. discouragement of employee autonomy.

What Is Organizational Structure? (contd)



What Is Organizational Structure? (contd)

The degree to which decision making is concentrated at a single point in the organization. Decentralization The degree to which decision making is spread throughout the organization. Formalization The degree to which jobs within the organization are standardized.


Simple Structure A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
A Simple Structure: Jack Golds Mens Store

Common Organization Designs (Contd)

Bureaucracy A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.

The Bureaucracy
Strengths Weaknesses

Functional economies of scale Minimum duplication of personnel and equipment Enhanced communication Centralized decision making

Subunit conflicts with organizational goals Obsessive concern with rules and regulations Lack of employee

Common Organization Designs (contd)

Matrix Structure A structure that creates dual lines of authority and combines functional and product departmentalization. Key Elements: Key Elements:

+ Gains the advantages of functional and product + Gains the advantages of functional and product
departmentalization while avoiding their departmentalization while avoiding their weaknesses. weaknesses.

+ Facilitates coordination of complex and + Facilitates coordination of complex and

interdependent activities. interdependent activities. Breaks down unity-of-command concept. Breaks down unity-of-command concept.

Matrix Structure (College of Business Administration)





Team Structure The use of teams as the central device to coordinate work activities. Characteristics: Characteristics:

Breaksdown departmental barriers. Breaks down departmental barriers. Decentralizesdecision making to the team level. Decentralizes decision making to the team level. Requiresemployees to be generalists as well as Requires employees to be generalists as well as specialists. specialists. Createsa flexible bureaucracy. Creates a flexible bureaucracy.


Virtual Organization A small, core organization that outsources its major business functions. Highly centralized with little or no departmentalization. Concepts: Concepts:
Advantage: Provides maximum flexibility while Advantage: Provides maximum flexibility while concentrating on what the organization does concentrating on what the organization does best. best. Disadvantage: Reduced control over key parts of Disadvantage: Reduced control over key parts of the business. the business.


Mechanistic Model A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.


Organic Model A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.

Mechanistic Versus Organic Models


Innovation Strategy A strategy that emphasizes the introduction of major new products and services. Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven.



STRUCTURAL OPTION Organic: A loose structure; low specialization, low formalization, decentralized Mechanistic: Tight control; extensive work specialization, high formalization, high centralization Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings


Cost minimization



Definition of Stress
According to Fred Luthans : An adaptive response to an external situation that results in physical, psychological and/or behavioral deviations for organizational participants. According to Robbins : Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.

What is not Stress

Anxiety.. Nervous Tension bad/damaging Stress is not simply anxiety. Stress is not simply nervous tension. Stress is not necessarily something damaging, bad or to be avoided.

Sources of Stress
The sources of stress come from both, outside and inside of an organization, from the groups of employees and are influenced by and from employees themselves. The potential sources of stress can be listed as follows:
Extra-organizational Organizational Group Individual.

Societal/technological change The family Relocation Economic and financial conditions Race, class and gender Local conditions

Administrative policies and strategies. Organizational structure and design. Organizational processes. Working conditions.

Group Stressors
Lack of group cohesiveness. Lack of social support. Inter-personal and inter-group conflict.

Individual Stressors
Personality Life and career changes Life trauma

Effects of Stress
Stress is the wear and tear our bodies experience as we adjust to our continually changing environment. It has physical and emotional effects on us and creates positive or negative feelings. As a positive influence, stress can help compel us to perform an action which results in new awareness As a negative influence it can result in feeling of rejection, anger and depression.

Effects of stress can differ from individual to individual

They can be:1. Reduced if there is support available 2. Aggravated if there are other outside circumstances which also put stress on the individual.

Effects of stress can be categorized as: Mental (how the mind works) Physical (how the body works) Behavioral (the things we do) Cognitive (the way we think and concentrate)

Stress is a combination of responses in the body. Stress can be short-term (acute) or chronic, acute stress is the fight to flight response.

How destructive can stress be on the body

With the new MRI ( magnetic resonance imaging) techniques, scientists are able to prove visibly that chronic stress can SHRINK an area in the brain called the hypothalamus. Researchers have found that the brain of war veterans, as well as women, who have been victims of childhood sexual abuse, have a marked reduction in the size of their hypothalamus.

Various Symptoms of Stress

Organizational Effects of Stress

When employees of an organization feel stressed then well-being is negatively effected. They dont feel good this has a direct affect on the organization.

Organizational Effects of Stress

High absenteeism and staff turnover. Interdepartmental conflict Deterioration in industrial relations Reduction in long term productivity General dissatisfaction, low morale and poor work performance. More subtle and even more damaging effects of long term organizational commitment, are sabotage and ultimately organizational breakdown.

Effects of Stress in the Corporate Setting

Rapid change. Informational Overload. Burnout. Ever-tightening Budgets.

Management of Stress
There are three options:1.Prevention and control 2.Escapism 3.Adaption

Three major approaches to cope with stress:-





Dysfunctional Coping
Individuals might become alcoholic, overweight, chain-smokers, or drug addicts. They also run the risk of becoming accident prone. Individuals exhibit coronary diseaseprone behavior patterns.

Defensive Coping
It involves mental or physical escape from the stressful situation. Some common and important defense mechanisms are REPRESSION, REGRESSION, RATIONALIZATION, (cognitive reframing of ones perception all good sons will obey mom) DIRECT AGGRESSION, DISPLACEMENT.

Direct Coping
It involves self awareness in order to avoid the harmful and far reaching consequences of stress. The process involves introspection, identification of problem, determination of a solution by considering available alternatives and choosing an action accordingly.

Direct Coping- Individual Level Techniques

Some specific techniques that can be used for coping up with stress are as follows Physical Exercise, Relaxation, Bio-feedback, Meditation, Yoga, Behavioral Self Control, Social Support & Cognitive Theory.

Organizational Level Techniques

Personal Wellness- the level of ones physical and mental potential through a personal health promotion programs. Improved Communication- it reduces uncertainty by lessening role ambiguity and role conflict. Participative Decision Making- by giving employees a voice in those decisions that directly affects their job performance, management can increase employee control and can reduce job stress.

Job Design- it involves enriching job either by improving job content factors or by improving core job characteristics. Selection and Placement Sabbaticals

Power and Politics

Power has been described as the last dirty word. It is easier for most of us to talk about money than it is to talk about power. People who have it deny it, people who want it try not to appear to be seeking it, and those who are good at getting it are secretive about how they got it. Power is a natural process in any group or organization. As such, you need to know how its acquired and exercised if youre going to fully understand organizational behavior.

Although you may have heard the phrase that power corrupts, and absolute power corrupts absolutely power is not always bad Its a reality of organizational life and its not going to go away. Moreover by learning how power works in organizations, you will be better able to use the knowledge to help you be a more effective manager.

Definition of Power
Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with As wishes. This definition implies a potential that need not be actualized to be effective and a dependency relationship. Power may exist but not be used. It is, therefore, a capacity or potential. One can have power but not impose it.

Dependency is Bs relationship to A when A possesses something that B requires. Probably the most important aspect of power is that it is a function of dependency. The greater Bs dependency on A, the greater As power in the importance that B places on the alternative(s) that A controls.

Contrasting Leadership and Power

What differences are there between the two terms ? 1. One difference relates to goal compatibility. Power does not require goal compatibility, merely dependence. Leadership, on the other hand, requires some congruence between the goals of the leader and those being led. A second difference relates to the direction of influence. Leadership research, for most parts emphasizes style. While power research tends to encompass a broader area and focuses on tactics for gaining compliance.

2. 3.

Sources of Power
Formal power- based on an individuals position in an organization. It can come from the ability to coerce or reward, from formal authority, or from control of information. Coercive power-it is dependent on fear. Reward power-compliance achieved based on the ability to distribute rewards that others view as valuable. Legitimate power- power received as a result of position in formal hierarchy of an organization. Information power-it comes from access to and control over information.

Personal power- it comes from an individuals unique characteristics. Expert power- it is influence based on special skills or knowledge. Referent power- it is influence based on possession by an individual of desirable resources or personal traits. Charismatic power-is an extension of referent power stemming from an individuals personality and interpersonal style.

The General Dependency Postulate

The greater Bs dependency on A, the greater the power A has over B. When you possess anything that others require but that you control alone, you make them dependent on you, and therefore, you gain power over them. If you can create monopoly by controlling information, prestige or anything that others crave, they become dependent on you. Conversely, the more that you can expand your options, the less power you place in the hands of others. This explains, for example, why most organizations develop multiple suppliers rather than give their business to only one

What Creates Dependency?

Dependency is increased when the resource you control is important, scarce, and non substitutable.

If no body wants what you have got, its not going to create dependency. To create dependency therefore ,the thing(s) you control must be perceived as being important.

If something is plentiful possession of it will not increase power. a resource needs to be perceived as scarce to create dependency. This can help to explain how low ranking members in an organization who have important knowledge not available to high ranking members gain power over the high ranking members. the scarcity dependency relationship can further be seen in the power of occupational categories.

Non Substitutability
The more that a resource has no viable substitutes, the more power, that control over that resource provides.

Power tactics
Power tactics are ways in which individuals translate power bases into specific actions. Seven tactical dimensions or strategies: 1. Reason. 2. Friendliness. 3. Coalition 4. Bargaining 5. Assertiveness 6. Higher authority 7. Sanctions.

Five Contingency Variables

Researchers have uncovered five contingency variables that affect the selection of a power tactic:The managers relative power The managers objective for wanting to influence. The managers expectation of the target persons willingness to comply. The organization's culture . Cross-cultural differences.

Managers Power Tactics

A managers relative power has an impact on the selection of tactics in two ways: First managers who control resources that are valued by others, or who are perceived to be in positions of dominance ,use a greater variety of tactics than do those with less power. Second, managers with power use assertiveness with greater frequency than do those with less power. Managers vary their power tactics in relation to their objectives. When managers seek benefits from a superior, they tend to rely on kind words and the promotion of pleasant relationships; that is they use friendliness. In comparison, the managers attempting to persuade their superiors to accept new ideas usually rely on reason.

The managers expectations of success guide his/her choice of tactics. When past experience indicates high probability of success, managers use simple request to gain compliance. When success is less practicable, managers are more tempted to use assertiveness and sanctions to achieve their objectives.

Cultures influencing power tactics

We know cultures within organizations differ markedly. Some cultures encourage the use of friendliness, some encourage reason and still others rely on sanctions and assertiveness. So organizations itself will influence the subset of power tactics viewed as acceptable for use by managers. Finally evidence indicates that people in different countries tend to prefer different tactics.

Power in Groups: Coalitions

Coalition is an informal group bound together by the active pursuit of a single issue. The logic of a coalition? Theres strength in numbers. Successful coalitions have been found to contain fluid membership and are able to form swiftly, achieve their target issue and quickly disappear.

Coalition Formation: Predictions

First, coalitions in organizations often seek to maximize their size. Second, decision making in organizations does not end just with selection from among a set of alternatives. The decision must also be implemented. In organizations, the implementation of and commitment to the decision is at least as important as the decision itself. Its necessary ,therefore, for coalitions in organizations to seek a broad constituency to support the coalition objectives. Another prediction about coalition relates to the degree of interdependence within the organization. More coalitions will likely be created when there is a great deal of task and resource interdependence. Finally ,coalition formation will be influenced by the actual task that the workers do. The more routine the task of a group, the greater likelihood that the coalitions will form.

Sexual Harassment: Unequal Power at Workplace

Unwelcome advances, request for sexual favors and other verbal or physical conduct of sexual nature. There continues to be disagreements as to what specifically constitutes sexual harassment. Most studies conform that the concept of power is central to understanding sexual harassment whether from a supervisor a co-worker, or even an employee. The supervisor-employee dyad best characterizes an unequal power relationship, where formal power gives the supervisor the capacity to reward and coerce. It is also worth nothing that individuals who occupy high status roles (like management positions) sometimes believe that sexually harassing employees is merely an extension of their right to make demands on lower status individuals.

Politics: power in action

When people get together in groups, power will be exerted. People want to carve out a niche from which to exert influence, earn rewards and advance their careers. When employees in organizations convert their power into action, we describe them as being engaged in politics. Those with good political skills have the ability to use their bases of power effectively.

Political Behaviour
Definition: activities that are not required as a part of ones formal role in the organization, but that influence, or attempts to influence the distribution of advantages and disadvantages within the organization Legitimate political behavior: normal everyday politics Illegitimate political behavior: Extreme political behavior that violates the implied rules of the game.

Reality of Politics
Politics is a fact of life in organizations, people who ignore this do so at their own peril. But why you may wonder, must politics exist? Isn't it possible for an organization to be politics free? Its possible but most unlikely. Organizations are made of individuals and groups with different values goals an interest setting up the potential for conflict over resources. Resources in organizations are also limited, which often turns potential conflict into real conflict. Further more, whether true or not, gains by one individual or group are often perceived at the expense of others. These forces create a competition among members for the organizations limited resources.

May be the most important factor leading to politics within organizations is the realization that most of the facts that are used to allocate the limited resources are open to interpretation. what, for instance is good performance? What is an adequate improvement? Finally because most decisions have to be made in a climate of ambiguity-where facts are rarely fully objective ,and thus are open to interpretation-people within organizations will use whatever influence they can to taint the facts to support their goals and interests. That of course, creates the activities we call POLITICKING.

Factors Contributing to Political Behavior Individual Factors

*High Self-monitors *internal Locus of Control *High Mach personality *Organizational investment *Perceived job alternatives *Expectations of success Low trust Role ambiguity

Organizational factors

Reallocation of resources. promotion opportunities.

Unclear performanceevaluation system

Political behavior Low High

Zero-sum reward practices Democratic decision making High performance pressure Self serving senior managers

Favorable Outcomes # Rewards # Awaited punishments

How do People Respond to Organization Politics?

Decreased job satisfaction

Perceptions of organizational politics

Increased anxiety

Increased turnover

Reduced performance

In addition to the above, several interesting qualifiers have been noted: First, the politics-performance relationship appears to be moderated by an individuals understanding of the how's and whys of organizational politics. When both politics and understanding are high, performance is likely to increase because the individual will see politics as an opportunity Second, when politics is seen as a threat and consistently responded to with defensiveness, negative outcomes are almost sure to surface eventually. When people perceive politics as a threat rather than as an opportunity they often respond with Defensive behavior - reactive and protective behavior to avoid action, blame or change

Defensive Behavior
Defensive behavior are often associated with negative feelings towards the job and work environment. In the short run, employees may find that defensiveness protects their self interest. But in the long run, it wears them down. People who consistently rely on defensiveness find that, eventually, it is the only way they know how to behave. At that point, they lose the trust and the support of their piers, bosses, employees and clients.