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Managers role? Plan, organize, lead and control them Primary roles: Interpersonal, informational, decisional Skills: Technical, human, conceptual OB: field of study; impact that individuals, groups and structure have on behaviour within the orgn, for application of such knowledge to improve orgn effectiveness. What people do in an orgn and how it affects its performance. Individual behaviour not random; there are certain fundamental consistencies underlying the behaviour of all individuals Behaviour normally predictable to a certain extent Few absolutes in OB
Chemistry, astronomy, physics consistent and apply to a wide range of situations Human beings complex: two people behave differently in the same situation

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Psychology: seeks to measure, explain and sometimes change the behaviour of humans and other animals: Learning, personality, counseling. Social psychology: Peoples influence on one another: communication, building trust, attitudes, group decision making. Sociology: people in relation to their social environment; culture: group dynamics, designing of work teams, power, conflict. Anthropology: Study of societies to learn about human beings and their activities: orgn and national cultures Political science: Behaviour of individual and groups within a political environment: structuring of conflict, allocation of power; manipulation of power for individual interest

Responding to globalization Increased foreign assignments Working with people from different cultures Overseeing movement of jobs to countries with low cost labour Issues of terror and natural disasters Managing work-force diversity: gender, age, race, etc. Quality Coping with temporariness Working with networked orgns Helping employees balance work-life conflicts Improving ethical behaviour.

Three levels in OB: Individual level Group level Organization systems level

Productivity Absenteeism Job satisfaction: positive feelings about ones job Deviant workplace behaviour: behaviour that violates orgn norms Organizational citizenship behaviour: discretionary behaviour beyond expectations Turnover

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Individual level behaviours: Individuals come with some history, experience They impact how they work in orgns Issues include: ability, values, attitudes, personality, emotions, perception, learning, motivation, etc.; individual decision making Group level variables: Study of group behaviour Work groups; teams; communication; leadership; power & politics; conflict Orgn system level variables: Formal structure Culture Human resource policies and practices

Everyone has strengths & weakness The ability makes them superior / inferior to others in performing certain tasks and activities. Need to know how individuals differ in abilities Ability: an individual capacity to perform the various tasks in a job

Abilities needed to perform mental activities thinking; reasoning; problem solving; etc. Dimensions of intellectual ability: Numerical aptitude Verbal comprehension Perceptual speed: identifying visual similarities and differences quickly and accurately Inductive reasoning: Identifying logical sequence in a problem and solving the problem Deductive reasoning: ability to use logic and access the implication of an argument Spatial visualization: Objects in space Memory: ability to retain and recall past experience

Logical Mathematical Linguistic Musical Spatial Bodily Kinesthetic Inter personal Intra personal Naturalist

All complex behaviour is learned Learning occurs all the time A relatively permanent change in behaviour that occurs as a result of experience. Classical conditioning: - Learning a conditioned response involves building up an association between a conditioned stimulus and an unconditioned stimulus - Something happens and we react in a certain way - It is elicited in response to a specific, identifiable event But most behaviour complex behaviour of individuals in an organization is emitted rather than elicited - Employees choose to arrive at work on time.

Operant conditioning: - Behaviour is a function of its consequences - People behave to get something they want or to avoid something they do not want. - Operant behaviour means voluntary or learned behaviour in contrast to reflexive or unlearned behaviour - The tendency to repeat such behaviour is influenced by the reinforcement or lack of reinforcement, brought about by the consequences of the behaviour - Reinforcement strengthens behaviour and increases the likelihood that it will be repeated. Social Learning: - Individuals can learn by observing what happens to other people and just by being told about something as well as through direct experience

Shaping: A managerial tool: Systematically reinforcing each successive step that moves an individual closer to the desired response. Four methods:
Positive reinforcement: rewarding for doing good. Negative reinforcement: terminating or withdrawal of something unpleasant Punishment: causing an unpleasant condition in an attempt to eliminate an undesirable behaviour Extinction: Eliminating any reinforcement that is maintaining a behaviour When a behaviour is not reinforced, tends to gradually estinguish Schedule of reinforcement: Continuous; intermittent; ratio schedule; interval schedule

Evaluative statements either favourable or unfavourable about objects, people or events. They reflect how we feel about something. 3 main components of attitudes: Cognition: the aspect of an attitude that is a description of or belief in the way things are. Affect: Is the emotional or feeling segment of an attitude Behavioural outcomes: An intention to behave in a certain way towards someone or something Important attitudes reflect fundamental values, self-interest, or identification with individuals or groups that a person values Attitudes that individuals consider important tend to show strong relationship to behaviour Discerpancies between attitude and behaviour likely to occur when social pressures to behave in certain ways hold exceptional powers.

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Job satisfaction: describes positive feelings about a job, resulting from an evaluation of its characteristics When people talk of employee attitude they usually mean job satisfaction Job involvment: Measures the degree to which people identify psychologically with their job and consider their perceived performance level important to self worth People with high job involvement strongly identify with and really care about the kind of work they do. Psychological empowerment: Employees beliefs in the degree to which they influence their work environment, their competence, the meaningfulness of their job and perceived autonomy in work. Employees do their own thing.

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Organizational commitment: a state in which the employee identifies with a particular orgn and its goals and wishes to maintain membership in the orgn. Three separate dimensions:
Affective commitment: emotional attachment to the orgn and a belief in its values Continuous commitment: perceived economic value of remaining in the orgn compared to leaving it. Normative commitment: obligation to remain in the orgn for moral or ethical reasons

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Employee & job engagement: An individuals involvement with, satisfaction with, and enthusiasm for the work she does:
For job engagement: Clarity of job guidelines; personel control over job performance; personal relevance of job to identity & training; imp of job.

An individuals assessment of how satisfied he is with the job is a complex summation of a no of discrete job elements Single job rating Identify key elements of a job and rate them People generally satisfied with their jobs but not so much with pay and promotion prospects. Facts of job satisfaction: Work itself; pay; advancement opportunities; supervision; co-workers. Also jobs that provide training, variety, independence and control. Impact of satisfied & dissatisfied employees:
Exit: response involves directing behaviour towareds leaving the orgn Voice: response involves actively and constructively attempting to improve conditions Loyalty: response involves passively but optimistically waiting for conditions to improve Neglect: response involves allowing conditions to worsen; chronic absenteeism or lateness, reduced effort or increased error rate.

Autonomy and independence Benefits Career advancement / development opportunities Compensation / pay Communication between employees & mgnt Contribution of work to orgns business goals Feeling safe in the work environment Flexibility to balance life and work issues Job security Job-specific training Mgnt recognition of employee job performance Meaningfulness of the job Networking Opportunity to use skills / abilities Orgns commitment to prof dev Overall corporate culture Relationship with co-workers Relationship with immediate supervisor The work itself / variety of work

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Our personalities shape our behaviour Gordon Allport: Personality is the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to the environment. The sum total of ways in which an individual reacts to and interacts with others. Personality determinants: Heredity: factors determined at conception. Physical stature, facial attractiveness, gender, temperament, energy levels, etc. Ultimate explanation of an individuals personality is the molecular structure of the genes, located in the chromosomes. The environment: The situation:

Personality traits: characteristics like shy, aggressive, ambitious, etc. which are demonstrated consistently in a large no of situations. The more consistent the characteristic and the more frequently a trait occurs in diverse situations, the more important that trait is in describing the individual. The Big Five model: Extraversion: Captures ones comfort level with relationships Agreeableness: refers to the individuals propensity to defer to others Conscientiousness: A measure of reliability Emotional stability: Taps a persons ability to withstand stress Openness to experience: addresses ones range of interests and fascination with novelty.

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Most widely used personality assessment instrument. Individuals classified as: Extraverted vs Introverted: Extraverted individuals are outgoing, social, and assertive. Introverts are quiet and shy. Sensing vs Intuitive: Sensing types are practical and prefer routine and order. They focus on detail. Intuitives rely on unconscious processes and look at the big picture. Thinking vs Feeling: Thinking types use reason and logic to handle problems. Feeling types rely on their personal values and emotions. Judging vs Perceiving: Judging types want control and prefer their world to be ordered and structured. Perceiving types are flexible and spontaneous.

Core self-evaluation: People differ in the degree to which they like or dislike themselves and whether they see themselves as capable and effective. Positive people see themselves as capable, etc. Machiavellianism (Mach): The individual is pragmatic, maintains emotional distance, and believes that ends can justify means. High Machs manipulate more, win more, are persuaded less, and persuade others more. Narcissism: Describes a person who has a grandoise sense of selfimportance, requires excessive admiration, has a sense of entitlement and who is arrogant. Self-monitoring: refers to an individuals ability to adjust his / her behaviour to external, situational factors. High self-monitorers highly sensitive to external cues and behave differently in different situations.

Risk taking: People differ in their willingness to take risks. Risk taker quick to arrive at decisions and do not need much info to take decisions. Businessmen: No risk, no gain. Type A personality: The person is aggressively involved in a chronic, incessant struggle to achieve more and more in less and less time. Pro-active personalities: Take the initiative to improve current circumstances or create new ones. Identify opportunities, show initiative, take action, and persevere till meaningful change occurs. High flyers: People who are seen to have the potential to take up higher managerial responsibilities in future. Put on the fast track.

Values represent basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. They contain a judgmental element in that they carry an individuals ideas as to what is right, good, or desirable. When we rank an individuals values in terms of their intensity, we obtain that persons value system. This system is identified by the relative importance we assign to values such as freedom, pleasure, self-respect, honesty, obedience and equality. Values tend to be relatively stable and enduring. Significant portion established in our early years. All black or white. Process of questioning values may result in change.

Values lay the foundation for our understanding of peoples attitudes and motivation, and they influence our perceptions. Individuals enter an orgn with preconceived notions of what ought and ought not to be. They contain interpretation of right and wrong and also imply that certain behaviours or outcomes are preferred over others. As a result values cloud objectivity and rationality. Values generally influence attitudes and behaviour. Two approaches to developing value typologies: Terminal values: refer to desirable end states. These are the goals a person would like to achieve during his / her lifetime. Instrumental values: refers to preferable modes of behaviour, or means of achieving the terminal values.

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A comfortable life A sense of accomplishment A world at peace Equality Family security Freedom Happiness Inner harmony National security Self-respect Social recognition True friendship Wisdom

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Ambitious Broad-minded Capable Cheerful Courageous Forgiving Imaginative Independent Excellence Persevering Self-controlled Responsible Honest

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Managers today less interested in an applicants ability to perform a specific job than with the flexibility to meet changing situations and commitment to the organization. Person-job fit: John Hollands theory: Realistic: Prefers physical activities that require skill, strength and coordination. Investigative: Prefers activity that involve thinking, organizing and understanding. Social: Prefers activities that involve helping and developing others. Conventional: Prefers rule-regulated, orderly, unambiguous acts Enterprising: Verbal activities to influence others and attain power Artistic: Prefers unambiguous and unsystematic activities that allow creative expressions.

Person-organization fit: People are attracted to and selected by organizations that match their values, and they leave organizations that are not compatible with their personalities. E.g. extraverts may prefer aggressive, team oriented cultures. High on agreeableness prefer supportive orgn culture. Openness to experience would like innovation rather than standardization.

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Power distance: the degree to which people in a country accept that power in institutions and organizations are distributed unequally. Individualism vs collectivism: The degree to which people prefer to act as individuals rather than as groups; collective, emphasizes a tight social framework Masculanity vs Feminity: Masculine roles like achievement, power and control; male dominated. Feminity has equality for the sexes and a softness in dealing with people. Uncertainty avoidance: degree to which people prefer structured over unstructured situations. Uncertainty cultures, more accepting of ambiguity, less rule oriented Long-term vs short-term orientation: Long-term culture look to the future and value thrift, persistence and tradition. Opposed to valuing the here and now; accept change more readily.

Managers admit in practice they rely quite heavily on haunches to make decisions and choose direction. Intuitive, tacit ways of knowing are particularly critical when handling messy, ill defined, ambiguous and uncertain situations. Our perception is not an accurate reflection of what is going on around us. The picture constructed is very much affected by what we expect to see. Rather than recollecting a fixed image stored like on a film, the brain recreates a new image when we bring one out of the memory an image will be recollected differently at different times We are under the control of our unconscious mind most of the time. They do most of our thinking, learning and decision making.

In real life, managers make decisions, based on intuitive expertise, that they may be unable to justify. However, intuitive know-how is often very firmly tied to the situation in which it was first learnt. Experienced professionals base numerous decisions on haunch and intuition. Research; managers spend little time planning and are more intuitive than rational in their thinking and decision making. Many managers relied more on soft data like feelings and impressions to make strategic judgments than explicit analysis. Isenberg: management entails an opportunistic resourcefulness which employs an incremental, iterative, non-linear and dynamic approach to management functions, in day-to-day affairs and strategic issues.

Managers generally working on a no of issues simultaneously; these issues are complex, messy and ill structured, the info is incomplete, time reqd to take decisions inadequate and the outcome of the decision uncertain. In precisely this situation, intuition comes into play it can take account of the superior pattern processing the unconscious is able to provide. The time pressures do not allow enough analyzing, ideating, etc. Intuition involves apprehending rather than analyzing. Managers use intuition in at lease 5 ways:
To sense when a problem exists To perform well learned patterns rapidly To synthesize isolated data To use gut feeling to check results arrived at rationally To by-pass in-depth analysis

Intuition functioned best under situation of uncertainty, where there were no precedents, in unpredictable situations, where there were limited facts and competing plausible solutions; and where there were time constraints. Intuition is largely a matter of learnt experience. It is the direct byproduct of training and experience that have been stored as knowledge. Over time, as more and more info is stored in chunks and linked, people are better able to sense patterns and their haunches are more likely to be correct. Thus intuitive ability is bound up with subject area experience.

Intuitions are not infallible. Could be hard to differentiate between valid intuition and haunches; fantasy or plain prejudice. Sound intuitive judgments more likely when peoples egos are not bound up in the decision outcomes, and they are truly open to possibilities. Rushing to decide before the time was right, stress or lack of confidence could all inhibit their capacity for intuitive judgment.

There is much more info around us than our limited senses can hope to attend to. Thus we need to choose what to attend to. We select those things that interest us, that fit in our world view. It help us to handle the info overload, but also means our understanding of the world is partial. We tend to see the world in terms of relatively fixed ways of thinking referred to as mind-sets. The mind is set to find and create meaning everywhere and anywhere. We impose order on chaos, find images in clouds, simplify complexity and make the inconsistent coherent. We see what we expect and not what is there. Information that contradicts may be ignored E.g. American cars to small variety; IBM to PCs

Our everyday mindset show their limitations when faced with the unexpected e.g. nine dot Insight problems are difficult to solve because we bring them an existing way of viewing problems, a particular mindset. This leads us to assume limitations that are not present in the problem definition, and to fixate on a particular strategy. The solution is usually found by reframing the way in which the problem was originally perceived. Mindsets are conditioned by our values and past experiences peoples approach to task is conditioned by their assumptions about what is required and their experiences in related areas.

Cognitive tendencies that could be dysfunctional in problem solving:

Over-reliance on stereotyped responses that have worked previously Blocks against using objects in a new way Unnecessary assumptions limiting the range of possibilities considered The tendency to seek confirmation and discard disconfirming evidence Reluctance to reduce confidence in decision following disconfirmation

These may all block creative approaches to problem solving. Mgrs also exhibit a tendency to search in areas close to those in which previous solutions have been found to work. We have a strong tendency to apply rules mindlessly, which means we easily miss new approaches. In addition to inhibiting problem solving strategies, a rigidity in thinking, lack of perception and poor self-image can also block a creative approach.

Changing individual values and organizational mindsets is hard work, but at least if we are aware of their existence it may be easier to make conscious allowance for them. Our values and mindsets about orgns and about the world around us guide many of our decisions in these areas, just as they guide the judgments we make about our own abilities.
e.g. if we think we cannot do something we are less likely to try, or we notice failures when we do try and probably give up earlier, our expectations confirmed.

Self-fulfilling prophesy: People perform close to their labels. Performance is bound up with expectations: if we think we can do something, we are more likely to achieve it. E.g. 4 minute mile. Transforming negative beliefs into more constructive ones is an example of reframing.

Reframing seems to be central to the positive attitude that is often found when we are being creative. One way is to try to reframe unconstructive beliefs into something more positive. E.g. from I am stubborn to I am determined. The important thing is that you should feel better about the reframed statement. Investigate your mindsets about other people too. Reframing can become an attitude to life in general, seeing the opportunity and positive side of a situation rather than the problems and the negative side. E.g. a traffic jam for listening to music; think uninterrupted. From yes, but to yes, and. The sheer info overload, an inevitable part of life, means we all rely on mindsets as short cuts to making sense of situations.

Managers role: Traditionally was a Captain Today more of a Coach Sometimes an Author: for choosing a clear and adequate problem formulation A jazz musician: who acts on the hoof, and makes sense of what she does in retrospect A Potter: captures the trial-and-error, hands on way a manager works, with experience build on years of knowledge; more felt than spoken. Metaphor for a Leader: A Conductor, whose role is both to inspire and bring out the best from her orchestra. The point of metaphors is their power to alert us to new and useful ways of viewing a situation, highlighting aspects that had previously been taken for granted.

Over time a school of thought can harden into a fixed world view or paradigm, which contains assumptions that we never even think to question. Orgn thinking also goes through fashions, which rest on assumptions that tend not to be questioned until a new paradigm comes along. A functionalist perspective views the world as having an objective reality and the manager has to understand the world in order to regulate it. The interpretative paradigm views the world of social relationships as the product of social constructions. A paradigm shift is that of a manager from being a supervisor to being a mentor and coach. Workers are treated less like factory fodder and more as people. Boundaries between job descriptions, depts and company less distinct as portfolio workers are split across many orgns.

A process by which individuals organize and intepret their sensory impressions in order to give meaning to their environment. However, what we perceive could be substantially different from objective reality. Peoples behaviour is based on their perception of what reality is, not on reality itself. The world as it is perceived is the world that is behaviourally important. A no of factors shape and sometimes distort perception. These factors can reside in the perceiver; in the object or target being perceived; or in the context of the situation in which the perception is made.

When an individual attempts to interpret a target, his personal characteristics influence the interpretation.
Include the persons attitudes, personality, motives, interests, past experience & expectations

Characteristics of the target we observe can affect what we perceive. As we do not look at a target in isolation, the relationship of a target with the background also influences perception.

Attribution Theory: Non-living objects subject to laws of nature, have no beliefs, motives or intentions. People do. Hence we attempt to develop an explanation of why they behave in certain ways. Hence we interpret their action based on the assumptions we make of that persons internal state. The theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behaviour. We check if the behaviour is internally or externally caused. This determination depends largely on three factors: 1. distinctiveness; 2. consensus, 3. consistency

Distinctiveness: refers to whether the individual displays different behaviours in different situations. - If the behaviour is unusual we give it an external contribution - If it is usual, we give it an internal contribution If everyone who faces a similar situation responds in the same way, we say the behaviour shows consensus. - If the consensus is high and all are late, we give an employees behaviour an external attribution. - If the employees behaviour is unique and different from the other persons, we attribute it to internal attribution Finally, an observer looks for consistency in the persons action. - The more consistent the behaviour, we contribute to internal factors

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They allow us to make accurate perceptions rapidly and provide valid data for making predictions. Not always foolproof and can get us into trouble. Selective perception: a characteristic that makes a person or object to stand out will increase probability of being noticed. As we cannot observe everything going on around us, we engage in selective perception. Interests can significantly influence which problems we see. We dont choose things randomly, we select according to our interests, background, experience, attitude. Helps to speed read others but not at the risk of drawing an inaccurate picture. Halo / Horn effect: When we draw a general impression based on a single characteristic: intelligence, sociability, etc.

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Contrast effect: We dont evaluate a person in isolation. Our reaction to a person influenced by other people we had recently encountered. Stereotyping: When we judge someone based on our perception of the group to which she belongs We rely on generalization everyday; help us make decisions quickly. They are a means of simplifying a complex world. Problem comes in generalizing inaccurately or too much. Stereotypes can be deeply ingrained and powerful. Profiling: Group of individuals singled out, typically on the basis of race or ethnicity, for intensive inquiry, scrutiny, or investigation Need to balance the rights of individuals against the greater good of the society.

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People in orgns always judging others. Mgrs must appraise the perf of their employees. We evaluate how much effort our employees put in their jobs. Employment interview: Many interviewers make perceptual judgment which are not quite accurate. We form impressions of others in 2 seconds flat and then work to justify the impression. A good applicant characterized by the absence of bad characteristics than the presence of good ones. Performance expectations: People attempt to validate their perception of reality even when these perceptions are faulty. self-fulfilling prophesy Pygmalion effect: individuals behaviour based on others expectations Performance evaluation: based on bosss perception.

Individuals make choices among diff alternatives. Decision making occurs as a reaction to a problem. A discrepancy occurs between the current state of affairs and some desired state, requiring us to consider alternative courses of action. One persons problem is anothers satisfactory state of affair. Every decision requires us to interpret and evaluate information. We typically receive data from multiple sources and need to screen, process and interpret it. Based on individual perceptions. Throughout the entire decision making process, perception distortions often surface that can bias analysis and conclusions.

Students trained to follow rational decision making models. However, they do not always describe how people actually make decisions. To improve how we make decisions in orgns, need to understand the decision-making errors that people commit.


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We often think that the best decision maker is rational and makes consistent, value-maximizing choices within specific constraints. These decisions follow the six step rational decision making model:
Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternatives

The assumptions relied upon by the decision maker include:

The decision maker has complete information Is able to identify all relevant options in an unbiased manner, and Chooses the options with the highest utility

Most decisions in the real world do not follow the rational model. People content to find acceptable or reasonable solution

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Decision makers allow systematic biases and errors to creep into their judgment. They come from attempts to shortcut the decision process. To minimize efforts and avoid difficult tradeoffs, people tend to rely too heavily on experience, impulses, gut feelings and rules of thumb. Common biases in decision making:
Overconfidence bias: We tend to be far too optimistic in our judgment on an issue connected to us. Individuals whose intellectual and inter personal abilities are the weakest most likely to overestimate their performance and ability. When mgrs become more knowledgeable on an issue, become less likely to display over confidence. Overconfidence likely to surface when considering issues outside areas of expertise.

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Anchoring bias: Tendency to fixate on initial information and fail to adequately adjust for subsequent information Our minds appears to give a dispraportionate amount of emphasis to the first info it receives. Anytime a negotiation takes place, so does anchoring. As soon as a number is stated, your ability to ignore the no has been compromised. Confirmation bias: We do not objectively gather information. We selectively gather it. Confirmation bias represents a specific case of selective perception. We seek out info that reaffirms our past choices, and discounts info that contradicts them. We also tend to accept at face value info that confirms our preconceived views, while we are critical and skeptical of info that challenges these views. Therefore, the info we gather is typically biased toward supporting views we already hold.

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Availability bias: Many more people fear flying than fear driving. As media pays more attention to flying than driving, we tend to overstate the risk of flying. Tendency for people to base their judgments on info that is readily available to them Events that evoke emotions or that occurred more recently tend to be more available in our memory. Mgrs tend to give more weightage to recent behaviours of an employee Escalation of commitment: Tendency to escalate commitment when making a series of decisions. Escalation of commitment means staying with a decision even when there is clear evidence that its wrong. You normally do that when you feel you are responsible for the failure. To show the decision was not wrong and avoid having to admit they have made a mistake.

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Randomness error: Humans have a lot of difficulty in dealing with chance. Most feel we have some control over our destiny. Our tendency to believe we can predict the outcome of random events is the randomness error. Decision making becomes impaired when we try to create meaning out of random events. Most serious impairment when we turn imaginary patterns superstitions Can be debilitating when affects daily judgments / bias major decisions. Winners curse: The winning participants in a competitive auction typically pay too much for the item. Curse gets larger when there are a large no of bidders. Hindsight bias: Tendency to believe falsely, after the outcome of an event is actually known, that we would have accurately predicted that outcome. Things always seem much clearer when we know all the facts. What is clear in hindsight is rarely clear before the fact. The hindsight bias reduces our ability to learn from the past.

Orgns can constrain decision makers, creating deviations from the rational model. Mgrs shape their decisions:
To reflect the orgns performance evaluation and reward systems. To comply with the orgns formal regulations. To meet organizationally imposed time constraints.

Previous orgn decisions also act as precedents to constrain current decisions. Mgrs strongly influenced in their decision making by the criteria on which they are evaluated.the reward system influences by suggesting what choices are preferable in terms of personal payoff. Risk aversion; conservative decisions Formal regulations and rules constrain choices and how to act. Orgns impose deadlines which create time pressure on decision makers. Decisions made in the past are ghost that haunt current choices.

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Three ethical decision criteria: Utilitarian criteria: Provide the greatest good for the greatest number. E.g. maximizing profits while dismissing people. Focusing on rights: making decisions consistent to fundamental liberties and privileges. To freedom, equality, against exploitation, protecting whistle blowers. Focusing on justice: Impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs. A focus on utilitarianism promotes efficiency and productivity, but can result in ignoring the rights os some individuals.

Creativity allows decision makers to more fully appraise and understand the problem. Need to think of a problem in divergent ways to realise our creative potential. Studies: Individual creativity essentially requires expertise, creative thinking skills, and intrinsic task motivation. Potential for creativity enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise in their field of endeavour. Another factor is the ability to use analogies and talent to see the familiar in a different light. We are more creative when we are in a good mood. Being around with other creative can also inspire us. Also the desire to work on something because it is interesting, involving, exciting, satisfying or personally challenging.

Bounded Rationality: Most people respond to a complex problem by reducing it to a level at which they can readily understand it. Limited information processing capacity of humans make it impossible to assimilate & understand the info needed to optimize So people satisfice seek solns that are satisfactory & sufficient. Since the human mind cannot formulate and solve complex problems with full rationality, we operate within the confines of bounded rationality. We construct simplified models that extract the essential features from problems without capturing all their complexity. We can then behave rationally within the limits of the simplified model. Intuition:

It is the result of the interaction between an individual and a situation. It is a process that account for an individuals intensity, direction, and persistence of effort toward attaining goals.
Intensity is concerned with how hard a person tries. High intensity unlikely to lead to favourable job performance unless the effort is channeled in a direction that benefits the organization. The persistence dimension is a measure of how long a person can maintain effort. Motivated individuals stay with the task till they attain their goals.

* Hierarchy of needs theory: a hierarchy of five needs physiological; safety; social; esteem and self-actualization in which, as each need is substantially satisfied, the next need becomes dominant.

Lower-order needs: needs that are satisfied externally, such as physiological and safety needs. Higher-order needs: needs that are satisfied internally, such as social, esteem and self-actualization. Self-actualization: the drive to become what a person is capable of becoming. ERG Theory: Clayton Alderfer: Existence (physiological & safety); Relatedness (Social & status needs); Growth (esteem & selfactualization). In this there is no assumption that there is a hierarchy. An individual could be focusing on all three at the same time. Theory X and theory Y: Douglas McGregor: Two distinct views of human beings: - One basically negative labeled theory Y, the other basically positive labeled Theory Y.

McGregor concluded that managers view of the nature of human beings are based on a certain grouping of assumptions and that managers tend to mould their behaviour toward employees according to these companies. Theory X:Mgrs believe that emp inherently dislike work and must therefore be directed or even coerced into performing it. Theory Y: Mgrs assume that employees can view work as being as natural as rest or play, and therefore the average person can learn to accept, and even seek responsibility. Two-Factor Theory: Frederick Herzberg: also called the Motivation Hygiene theory: Believe that an individuals relation to work is basic and that ones attitude towards work can very well determine success or failure. Herzberg investigated the question: What do people want from their work? He asked people to describe situations in which they felt exceptionally good or bad about their jobs.

Certain characteristics tend to be consistently related to job satisfaction and others to job dissatisfaction. Intrinsic factors such as advancement, recognition, responsibility and achievement seem to be related to job satisfaction. Respondents who felt good about their work tended to attribute these factors to themselves. However, dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay, company policies and working conditions. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. According the Hersberg, the factors that lead to job satisfaction are separate and distinct from those that lead to job dissatisfaction. By removing dissatisfaction you can bring about peace, and not necessarily motivation.

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Herzberg characterized conditions surrounding the job such as quality of supervision, pay, company policies, physical working conditions, relations with others, and job security as hygiene factors. When they are adequate people will not be dissatisfied; neither will they be satisfied. To motivate people we need to emphasize factors associated with the work itself or with outcomes directly derived from it, such as promotional opportunities, opportunities for personal growth, recognition, responsibility and achievement. Theory of Needs: David McClelland: the theory focuses on three needs: Need for Achievement (nAch): drive to excel; to achieve in relation to a set of standards.

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Need for Power (nPow): is the need to make others behave in a way in which they would have not behaved otherwise. Need for Affiliation (nAff): is the desire for friendly and close interpersonal relationships. High achievers perform best when they perceive their probability of success as 0.5. 50-50 chance of success. Dislike gambling with high odds because they get no achievement satisfaction from success that comes by pure chance. Similarly they dislike low odds; there is no challenge in their skills. They like to set goals that require stretching themselves a little.

Cognitive Evaluation theory: the introduction of extrinsic rewards, such as pay, for work effort that was previously intrinsically rewarding due to the pleasure associated with the content of the work itself, tends to decrease overall motivation. - When extrinsic rewards are given to someone for performing an interesting task, it causes intrinsic interest in the task itself to decline. - The individual believes she is working for the external rewards. - If this theory is correct, makes sense to make an individuals pay non-contingent on performance in order to avoid decreasing intrinsic motivation.

If individuals pursue goals because of an intrinsic interest, they are more likely to attain their goals and are happy even if they do not attain them the process of striving towards them is fun. People who pursue goals due to extrinsic reasons are less happy even when they achieve them the goals are less meaningful to them. Choose your job carefully; make sure you are choosing to do something for reasons other than extrinsic rewards. Make the job interesting, provide recognition, support employees growth and development. Employees who feel what they do is within their control and a result of free choice, more motivated & committed.

Goal-Setting theory: Intentions to work towards a goal are a major source of work motivation. Goals tell an employee what needs to be done and how much effort will need to be expended. We can say that:
Specific goals increase performance Difficult goals when accepted, result in higher performance than do easy goals Feedback leads to higher performance that no feedback.

The specificity of the goal itself seems to act as an internal stimulus. Given acceptance, the more difficult the goal the higher the performance.

Difficult goals direct attention to the task at hand and away from irrelevant distractions. Challenging goals get our attention and help us focus Difficult goals energize us because we have to work harder to attain them. When goals are difficult people persist in attaining them. If we have to struggle for a way to solve a problem, we often think of a better way to go about it. People do better with feedback help identify discrepancies. Participation in goals help improve acceptance, commitment. Goal commitment likely when goals are made public; individual has internal locus of control; goals are self-set. Use SMART goals.

Self-efficacy theory: Social cognitive theory / social learning theory: refers to an individuals belief that he / she is capable of performing a task. The higher your self-efficacy, the more confidence you have in your ability to succeed in a task. In difficulty, low self-efficacy people likely to reduce effort or give up altogether. High people redouble effort. High self-efficacy people respond to negative feedback with increased effort and motivation. When mgrs set difficult goals, it leads employees to have a higher level of self-efficacy and set higher goals. Conscientiousness and emotional stability can increase selfefficacy.

Reinforcement theories: The theory takes a behavioristic approach; reinforcement conditions behaviour. Behaviour is environmentally caused. Reinforcers: any consequences that, when immediately following responses, increases the probability that the behaviour will be repeated. Ignores the inner state of an individual and concentrates solely on what happens to a person when he / she takes action. The behaviours you engage in at work and the amount of effort you allocate to each task are affected by the consequence that follow from your behaviour.

Equity theory: employees make comparisons of their job inputs (effort, experience, education, and competence) and outcomes (salary levels, raises, and recognition) relative to those of others. We perceive what we get from a job situation (outcomes) in relation to what we put into it (inputs), and then we compare our outcomeinput ratio with the outcome-input ratio of relevant others. When we find it equal, a state of equity is said to exist. We perceive our situation as fair that justice prevails. When we see the ratio as unequal, we experience equity tension. When we see ourselves as unrewarded, the tension creates anger.

Expectancy theory: Argues that 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. Employees will be motivated to exert a high level of effort when they believe that effort will lead to good appraisal; and later good rewards. The theory focuses on three relationships: Effort-performance relationship Performance-reward relationship Rewards-personal goals relationship Theory explains why a lot of workers are not motivated on their jobs and do only the minimum to get by.

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Job characteristics model: proposes that any job can be described in terms of five core job dimensions: Skill variety: the degree to which a job requires a variety of different activities so the worker can use a no of skills and talent. Task identity: the degree to which a job requires the completion of a whole and identifiable piece of work. Task significance: The degree to which a job has a substantial impact on the lives or work of other people. Autonomy: The degree to which a job provides substantial freedom, independence and discretion in carrying out. Feedback: the degree to which carrying out the work activity results in the individual receiving direct & clear feedback.

Job rotation: (cross training): Periodic shifting of employees from one job into another. Usually at the same level requiring complementary skills. Jobs not redesigned. Job enlargement: Expanding job horizontally. Increasing the no and variety of tasks that individual performed resulted in jobs with more diversity. Job enrichment: Vertical expansion of jobs. Increases the degree to which the worker controls the planning, execution, and evaluation of the work.

Flexi-time: Allows employees discretion over when they arrive at work and when they leave. Employees have to work a specific no of hours per week. There is a common core period when all are needed at the office. Job sharing: Allows two or more individuals to split a traditional 40 hr a week job. Telecommuting: Employees who do their work at home at least two days a week on a computer that is linked to their office. Tasks include: routine information handling tasks; mobile activities; professional and other knowledge related activities.

Success on the job is facilitated or hindered by the existence or absence of support resources. Performance = f(ability X Motivation X Opportunity to perform)

Participative management: distinctive feature; joint decision making. Subordinates share a significant degree of decision making power with immediate superiors. Representative management: Legislation requiring companies to practice representation participation. Workers are represented by a small group of employees who actually participate. Quality circles: A work group of 8 to 10 employees and supervisors who have a shared of resp and who meet regularly to discuss their quality problems, investigate causes of the problem, recommend solutions and take corrective action.

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Some strategic decisions on the company about pay: Will the orgn lead, match or lag the market in pay? How will the individual contribution be recognized? Four major strategic rewards decisions: What to pay employees( establishing a pay structure)? How to pay individual employees (decided through variable pay plans and skill-based pay plans)? What benefits to offer; do we give employees choices? How to construct employee recognition programs.

Need to balance internal equity (worth of the job to the orgn) and external equity the external competitiveness of the orgns pay relative to pay elsewhere in its industry. Pay leading orgns pay above the market rate. Pay more and you may get better qualified, more highly motivated employees who will stay with the orgn longer. Paying too much can make the orgns products and services more costly. A strategic decision the orgn has to make with clear trade-offs.

Why do anything above the minimum to get by? This happens when pay increases are tied to seniority. You could provide performance bonuses. Variable-pay programs: piece-rate plan; merit-based pay; bonuses; profit-sharing; gainsharing; employee stock option. Base a portion of an employees pay on some individual and/or organizational measure of performance. Earnings fluctuate based on performance. A part of the fixed labour cost is converted into a variable cost; reducing expenses when performance declines. When paid to performance, employees earnings recognize contribution rather than being a form of entitlement.

Piece rate pay: Workers paid a fixed sum for each unit of production completed. Sometimes there is no base salary. Merit based pay: Pay for individual performance. Based on performance appraisal rating. Individual perceive a strong relationship between performance and rewards. Bonuses: Bonuses reward employees for recent performance rather than historical performance. Downside; employees may regard it as part of pay. Skill based pay: sets pay levels on the basis of how many skills employees have or how many jobs they can do. This help increase the flexibility of the workforce.

Profit sharing plans: Orgn wide programs that distribute compensation based on some established formula designed around the companys profitability. These can be direct cash outlays or, as for top managers, allocation of stock options. Gainsharing: a formula based group incentive plan. Improvement in group productivity from one period to another determines total amt of money to be allocated. Different from profit-sharing in that rewards are tied to productivity rather than profits. ESOPs: Company established benefit plan in which employees acquire stock, often at below market prices, as part of their benefits.

Flexible benefit plan allows employees to put together a benefits package individually tailored to his/her needs and situation. Individualize rewards by allowing each employee to choose the compensation package that best satisfies their current needs. Average orgn provides fringe benefits of about 40% of the employees salary. Modular plans are predesigned packages of benefit , each module put together to meet needs of specific individuals. Core-plus plans: core essential benefits and a menu like selection of other benefit options.

Important work rewards can be intrinsic and extrinsic. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems. The programs can range from spontaneous and private thank you up to widely publicized formal programs in which specific types of behaviour are encouraged and procedures for attaining recognition are clearly identified. Non-financial incentives are the most motivating in the long run. bragging boards; awards nominated by peers; gift and cash certificates;

Emotions can spur us into action. Myth of rationality: till recently, the protocol of the work world was to keep a damper on emotions. A well run orgn didnt allow employees to express frustration, fear, anger, hate, joy, grief and similar feelings. They were the antithesis of rationality. Also a general feeling that emotions of any kind were disruptive. Rarely viewed emotions as constructive or contributing to enhanced performance. The reality is that employees bring their emotions to work everyday.

Affect: is a generic term that covers a broad range of feelings that people experience. Emotions: are intense feelings that are directed at someone ore something. Moods: are feelings that tend to be less intense that emotions and that often (though not always) lack a contextual stimulus. Emotions are more fleeting than moods Emotions are reactions to a person, or event You show your emotions when you are happy about something, angry at someone, afraid of something. Moods, in contrast are not directed at a person or an event. But emotions can turn into moods when you lose focus on the event or object that started the feeling.

Also, good or bad moods can make you emotional in response to an event. EMOTIONS: Caused by specific events. Very brief in duration (seconds or minutes) Specific and numerous in nature (many specific emotions like: anger, fear, sadness, happiness, disgust, surprise) Usually accompanied by distinct facial expressions. Action oriented in nature.

MOODS: Cause is often general and unclear Last longer than emotions (hours or days) More general (two main dimensions positive affect and negative affect that are composed of multiple specific emotions) Generally not indicated by specific expressions. Cognitive in nature. Emotions and moods can mutually influence each other. Getting your dream job may generate the emotion of joy, but it can also put you in a good mood for several days.

Psychologists have tried to identify basic emotions by studying facial expressions. Cultures have norms that govern emotional expressions. So how we experience an emotion isnt the same as how we show it. Agreement on six essentially universal emotions: Anger, Fear, Sadness, Happiness, Disgust & Surprise. The basic moods: positive & negative affect That is one way to classify emotions Positive emotions like joy or gratitude express a favourable evaluation; Negative, like anger or guilt, express the opposite

When we group emotions into positive or negative categories; they become mood states, because we are now looking at them more generally instead of isolating one particular emotion. The opposites include: (+ve to ve) Alert Fatigued Excited Bored Elated depressed Happy Sad Content Upset Serene Stressed Relaxed Nervous Calm Tense

Positive affect and negative affect play out at work in that they colour our perceptions, and these perceptions can become their own reality. Negative emotions are likely to translate into negative moods. People think about events that created strong negative emotions five times as long as they do about events that created strong positive ones. We must have the ability to experience emotion to be rational. Because our emotions provide important info about how we understand the world around us. The key to good decision making is to employ both thinking and feeling in ones decisions.

Rationality and emotions are in conflict; being emotional may give you the label of being irrational. Sometime being emotional undermines the perception of being competent; also weak and brittle. Research, emotions are critical to rational thinking. Our emotions provide important info about how we understand the world around us would you want to fire an employee without being emotional? The key to good decision making is to employ both thinking and feeling in ones decisions. Darwin: Emotions are important because they motivate people to engage in actions that are important for survival. Disgust motivates us to avoid harmful things.

Excitement motivates us to take on situations in which we require energy and initiative. Running away from a predator increases the chances of survival. Emotional labour: is an employees expression of organizationally desired emotions during emotional transactions at work. Flight attendants to act cheerful. True challenge is when employees have to project one emotion while simultaneously feeling another. This disparity emotional dissonance can take a heavy toll Bottled up feelings of frustration, anger, and resentment can eventually lead to emotional exhaustion and burnout. Felt emotions are actual emotions. Displayed emotions what the orgn requires its employees to demonstrate.

Affective events theory (AET): demonstrates that employees react emotionally to things that happen to them at work and that this reaction influences their job performance and satisfaction. Emotions are a response to an event in the work environment. This environment creates work events that can be hassles, uplifting events or both triggering +ve or ve emotions. However, employees personalities and moods predispose them to respond with greater or lesser intensity to the event. Emotions also influence a no of performance and satisfaction variables, such as an organizational citizenship behaviour, organizational commitment, level of effort, intentions to quit, and workplace deviance.

Emotional intelligence: A persons ability to: Be self- aware (to recognize own emotions when experiencing them) Detect emotions in others Manage emotional cues and information. People who know their own emotions and are good at reading emotional cues are most likely to be effective. Emotions and moods issues are there in various mgnt processes incl: selection; decision making; Creativity; Motivation; Leadership; Negotiation; Customer service; Job attitudes; Deviant workplace behaviours; Forgiveness in orgn;

A group is defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives. Formal groups those defined by the orgns structure, with designated work assignments establishing tasks. - Behaviour stipulated by and directed towards orgns goals. Informal groups are alliances that are neither formally structured nor organizationally determined. - These groups are natural formation in the work environment that appear in response to the need for social contact. Command group determined by the orgn chart. Composed of individuals who report directly to a given manager. Task group also orgn determined, represent individuals working together to complete a job task.

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Forming: Characterized by a great deal of uncertainty about group purpose, structure, leadership. Members test waters to determine what types of behaviour are acceptable. Storming: One of intragroup conflict. Members accept existence of the group but resist constraints on individuality Conflict over who controls the group. Norming: One in which close relationships develop and group demonstrates cohesiveness. A strong sense of group identity and camaraderie. Performing: the structure is fully functional and accepted. Group energy has moved from getting to know and understand each other to performing the task at hand. Adjourning: the group prepares for disbandment. Attention directed to wrapping up activities. Upbeat on accomplishments and also depressed over loss of friends

The effectiveness of a group is more complex that this model suggests. Under some conditions high level of conflict may be conducive to high group performance. Stage 2 may be more fruitful than 3 or 4. Groups do not always proceed clearly from one stage to another; several stages may be going on simultaneously. Groups occasionally also regress to the earlier stages. The behaviour has to fitted in the context too. E.g. a cockpit crew would be total strangers but start performing at the word go. The context provided the rules, task definitions, information and resources needed for the group to perform. Did not need to plan, assign roles, resolve conflicts, etc.

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Group properties shape the behaviour of members and make it possible to explain and predict a large portion of individual behaviour within the group as well as the perf of the group itself. Roles: a set of expected behaviour patterns attributed to someone occupying a given position in a social unit. Role identity: Certain attitudes and behaviour consistent to the role. E.g workers to supervisors. Role perception: Our view of how we are expected to behave in a certain situation. Role expectations: The way others believe we should act in a given situation. (psychological contract) Role conflict: When an individual is confronted by divergent role expectations.

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Norms: acceptable standards of behaviour that are shared by the groups members. Tell members what they ought to do or not do under certain situations. Most common group norm is performance norm. Can modify a performance prediction that was based solely on employee ability and level of personal motivation. Conformity: Because of the desire for group acceptance, you are susceptible to conforming to the groups norms. Groups can place strong pressures on individual members to change their attitudes and behaviours to conform to standards. Deviant workplace behaviour: voluntary behaviour that violates significant orgn norms.

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Status: A socially defined position or rank given to groups or group members by others. What determines status? The power a person yields over others: control the resources of the group. A persons ability to contribute to group goals: people whose contributions are critical to the groups success tend to have high status. An individuals personal characteristics: Someone whose personal characteristics are positively valued by the group. High status members of groups are often given more freedom to deviate from norms. Also better able to resist conformity pressures unlike low status personnel.

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Size: Evidence indicate that smaller groups are faster at completing tasks than bigger ones Also individuals perform better in smaller groups. However, for groups engaged in problem solving, large groups consistently get better marks than their smaller counterparts. Good for gaining diverse inputs. Smaller groups are better at doing something productive with that input. Social loafing: the tendency for individuals to expend less effort when working collectively than when working individually. Group performance increases with group size, but the addition of new members to the group has diminishing returns on group productivity.

Cohesiveness: the degree to which members are attracted to each other and are motivated to stay in the group. Cohesiveness is found to be related to group productivity. If perf related norms are high, a cohesive group will be more productive than will a less cohesive group. However, if perf norms are low, productivity will be low. To encourage group cohesiveness:
Make the group smaller Encourage agreement with group goals Increase the time members spend together Increase the status of the group and perceived difficulty in getting into it. Stimulate competition with other groups Reward the group than individuals. Physically isolate the group.

The belief that two heads are better than one characterizes the jury system in the US. Strengths of group decision making:
They generate more complete information and knowledge. Groups can bring in heterogeneity to the decision process They offer increased diversity of views. This opens up opportunity for more approaches and alternatives to be considered. Groups lead to increased acceptance of a solution.

Weaknesses of group decision making:

Time consuming, need to get consensus. There are conformity pressures in groups. Group discussions could be dominated by a few members. Group decisions suffer from ambiguous responsibility.

Group think: is related to norms. Describes situations in which group pressures for conformity deter the group from appraising unusual, minority or unpopular views. The norm of consensus overrides the realistic appraisal of alternative course of action and the full expression of deviant, minority or unpopular views. It describes a deterioration in an individuals mental efficiency, reality testing, and moral judgment, as a result of group pressures. As members of a group, we find it more pleasant to be in agreement than be a disruptive force. Occurs most often when there is a clear group identity, when members hold a positive image of their group that they want to protect, and when the group perceives a collective threat to this positive image.

Group shift: It indicates that, in discussing a given set of alternatives and arriving at a solution, group members tend to exaggerate the initial positions that they hold. In some situations, caution dominates, and there is a conservative shift. More often, however, the evidence indicates that the group tends toward a risky shift. The decision of the group reflects the dominant decision making norm that develops during the group discussion. The a group will shift toward greater risk or caution is a function of the members pre-discussion inclinations.

A work group is a group that interacts primarily to share information and to make decisions to help member perform within his/her area of responsibility. They have no need or opportunity to engage in collective work that requires joint effort. Their performance is merely the summation of each group members individual contribution. There is no positive energy that would create an overall level of performance that is greater than the sum of the inputs. A work team generates positive energy through coordinated effort. The individual efforts result in a level of performance that is greater than the sum of those individual efforts.

Problem solving teams: Meet for a few hour each week to discuss ways of improving quality, efficiency, work on environment, etc. Members share ideas or offer suggestions on how work processes and methods can be improved. Rarely have the authority to unilaterally implement any of the suggested actions Self-managed work teams: groups of employees who perform highly related or interdependent jobs and take on many of the resp of their former supervisors. Tasks include planning, scheduling, assigning tasks to members, making operating decisions, taking action on problems, working with suppliers and customers, elect own members and evaluate them. Supervisory positions are facilitators, or not there.

Cross functional teams: Made up of employees from about the same hierarchy but from different work areas, who come together to accomplish a task. Horizontal boundary spanning groups. Used to coordinate complex projects Virtual teams: Use computer technology to tie together physically dispersed members in order to achieve a common goal. Allow people to collaborate online using communication links such as wide-area networks, video conferencing, or e-mail. There is less social support and less interaction between members.

Context: the factors that determine whether teams are successful: presence of adequate resources; effective leadership; a climate of trust; a performance evaluation and reward system that reflects team contribution. Team composition: Includes variables that relate to how teams should be staffed: abilities and personalities of team members; allocation of roles and diversity; size of team; members preference for team work. Work design: Effective teams need to work together and take collective responsibility for completing significant tasks. The aspects include: skills variety; task identity; task significance; they enhance motivation and effectiveness.

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Plant: Creative, imaginative, unorthodox, solves difficult problems Resource investigator: Extravert, enthusiastic, communicative, explores opportunities, develops contacts Coordinator: Mature, confident, good chairperson, clarifies goals, promotes decision making, delegates well. Shaper: Challenging, dynamic, thrives on pressure, has drive and courage to overcome obstacles. Monitor evaluator: Sober, strategic and discerning, sees all options, judges accurately. Team worker: Cooperative, mild, perspective and diplomatic, listens, builds, averts friction, calms the waters. Implementer: Disciplined, reliable, conservative and efficient. Turns ideas into practical action. Completer: Painstaking, conscientious, anxious, searches out errors and omissions, and delivers on time. Specialist: Single-minded, self-starting, dedicated, provides knowledge and skills in rare supply.

Conflict must be perceived by the parties to it. Whether or not a conflict exists is a perception issue. A process that begins when on party perceives that another party has negatively affected or is about to negatively affect something that the first party cares about. It encompasses the wide range of conflicts people experience in an orgn. incompatibility of goals, differences over the interpretation of facts, disagreement based on behavioural expectations, etc. A full range from overt, violent acts to subtle forms of disagreement. Traditional view of conflict: conflict is bad. Human relations view: conflict happens naturally in all groups

Interactionist view of conflict: encourages conflict on the grounds that a harmonious, peaceful, tranquil, and cooperative group is prone to becoming static, apathetic, and nonresponsive to needs for change and innovation. Encourage group members to maintain an ongoing minimum level of conflict enough to keep the group viable, self-critical and creative. Task conflict relates to the content and goals of the work. Relationship conflict focus on interpersonal relationships. Process conflict relates to how the work gets done. Relationship conflicts are almost always dysfunctional. Whereas low to moderate levels of task and process conflicts are functional.

Stage 1: Potential opposition or incompatibility: presence of conditions that create opportunities for conflict to arise. - Communication: issues with wrong listening, misunderstanding, differing word connotations, jargon, etc. - Structure: includes tasks assigned in groups, jurisdiction clarity, member-goal compatibility, leadership styles, rewards system, etc. - Personal variables: The mannerisms, personality, actions, voice, emotions, etc. Stage 2: Cognition & Personalization: If the conditions in stage 1 affect, then potential for opposition or incompatibility becomes actualized in the second stage. - One or more of the parties must be aware of the existence of antecedent conditions. - At felt conflict level, individuals become emotionally involved, experience anxiety , tension, frustration, or hostility.

Stage 3: Intentions: Intentions intervene between peoples perceptions and emotions and their overt behaviour. Intentions are decisions to act in a particular way. - You have to infer the others intent to know how to respond to that others behaviour. - Much conflicts escalated merely by one party attributing the wrong intentions to the other party. - Thomas Killmans model of conflict handling styles. - Competing - Collaborating - Avoiding - Accommodating - Compromising

Stage 4: Behaviour: The stage where conflict becomes visible. - Stage includes the statements, actions, and reactions made by the conflicting parties; overt attempts to implement each parties intentions. - Conflict intensity is a continuum. Extreme to negligible. Stage 5: Outcomes: Could be functional in that conflict results in improvement in the parties performance or dysfunctional, in that it hinders group performance. Orgns that dont encourage and support dissent may find their survival threatened.

All interactions are some form of negotiation. A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. Two general approaches: Distributive bargaining & integrative bargaining. Distributive bargaining: Operates under a zero sum condition. Thus, any gain I make is at your expense. So it is about who get what share of a fixed pie. The parties feel there is only a set amount of goods or services to be divided up. When parties believe the pie is fixed, they tend to bargain distributively. E.g. labour / management negotiation.

Integrative bargaining: It operates under an assumption that there are one or more settlements that can create a win / win solution. Integrative bargaining builds long term relationships. It bonds negotiators and allows them to leave feeling that they have achieved victory. Even when you win, you want your opponent to feel positive about the negotiation. Conditions needed for this to succeed: Parties who are open with information and candid about their concerns; a sensitivity by both parties to the others needs, the ability to trust one another, and a willingness by both parties to maintain flexibility.

Preparation & planning: Nature of conflict; history leading up to the negotiation; Who is involved and what are their perceptions of the conflict; What do you want from the negotiation? What are your goals? Need to assess what you think about the others goals; what they are likely to ask for; How entrenched are they likely to be in their position; What intangible or hidden interests may be important to them; what might they be willing to settle on Use the information to develop a strategy; determine yours and the opponents best alternative to a negotiated agreement (BATNA). If you go in with a good idea of the others BATNA, even if you are not able to meet theirs, you might be able to get them to change it.

Definition of ground rules: Who will do the negotiating? Where will it take place? What time constraints, if any, will apply? To what issues will negotiation apply? Will there be a specific procedure to follow if an impasse is reached? Clarification & justification: after exchanging initial positions, both the parties will explain, amplify, clarify, bolster, and justify the original demand. An opportunity for educating and informing each other on the issues, why they are important, and how each arrived at their initial demands; provide documentations to support position. Bargaining & problem solving: The actual give-and-take in trying to hash out an agreement. Parties may need to make concessions.

Closure and implementation: formalizing the agreement that has been worked out, developing any procedures that are necessary for implementation and monitoring. For major negotiations, hammering out the specifics in a formal contract.

Personality traits: Research does not have conclusive evidence that personality affects negotiation effectiveness. Agreeable people are more interested in finding ways to cooperate and share more info that they should! The best distributive bargainer could be a disagreeable introvert. Moods / emotions: In distributive negotiations, negotiators who show anger induces concession from opponents! In integrative negotiations positive moods and emotions appear to lead to more integrative agreements. Gender differences: they negotiate the same but the outcomes are affected differently. Men have been found to negotiate better. For a woman a corner office or a few rupees more is not that important.

When a stalemate is reached and differences not easily resolved; turn to a third party. A Mediator is a neutral third party who facilitates a negotiated solution by using reasoning and persuasion, suggesting alternatives and the like. An Arbitrator is a third party with the authority to dictate an agreement. Arbitration could be voluntary or compulsary (forced by law or contract). A Conciliator is a trusted third party who provides an informal communication link between the negotiator and the opponent. Also engage in fact finding, interpreting message. A Consultant a skilled and impartial third party who attempts to facilitate problem solving through communication and analysis, aided by a knowledge of conflict management.