Course Material Organizational Behavior Chapter –1 ...sbitmba.weebly.com/.../organizational_behavior.pdf · [1] Course Material Organizational Behavior Chapter –1 Organization

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Course Material

Organizational Behavior

Chapter –1

Organization Definition:

Group of people brought together for the purpose of achieving certain

objectives. But tribes, friendship groups, families are not organization because

they do not involve any significant amount of conscious planning or deliberate

structuring. The term organization is used in management literature in two

different senses - Organization as a structure and Organization as a process.

Organization as a structure:

The word organization is originated form the work organism which implies a

structure of interrelated parts. Example- Human, Firm etc. It is a systematic

integration of parts to form a united whole. It is a structure of relationship

among various positions or jobs. It is a framework through which people work

together for the accomplishment of desired results. The components of the

organization structure include, “5M’s - [men, money, method, machinery,

material], functions authority, responsibility. Hence it is called as static or

classical concept.

Organization as a process:

The term organization is also used as a function of management. It involves

putting things and persons in their proper places and in the relation to each

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other. It is the process of structuring or arranging the different parts. Example

- people, work, technology etc.

Koontz O Donnel defines organizing as “the grouping of activities

necessary to attain the objectives, the assigning of each grouping to manager

with authority to supervise it and the provision for coordination horizontally

and vertically in the organization structure.

According to Louis A Allen, organization involves identification and

grouping the activities to be performed and dividing them the individuals and

creating authority and responsibility relationship among them for the

accomplishment of an organizational objective.

This is dynamic or neo-classical concept of the organization because

the emphasis here is on individuals who fill the various positions. Moreover

organizing is viewed as a continuous process where among people are

constantly reviewed and adjusted depending on the requirement of the

situation.

Nature of Organization:

The main characteristics of organizations are:

1. Common purpose: Every organization exists to accomplish common goals. The structure

must reflect these objectives as enterprises activities are derived from them. It

is bound by common purpose.

2. Division of Labour: The total workforce of an organization is divided into functions and sub

functions. It is needed to avoid the waste of time, energy and resources which

arises when people have to constantly change from one work to another.

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3. Authority Structure: There is an arrangement of position into a graded series. The authority

of every position is defined. It is putting subordinate to the position below the

superior. It also focuses on providing each position with adequate authority to

perform the roles described.

4. People: An Organization is basically a group of people that constitutes the

dynamic human elements of an organization. The authority in grouping must

take into account not only the limitations of people, but also the uniqueness

with which the human resources have to be managed when compared to

other resources

5. Communication: Every organization has its own channel of communication. Such

channels are necessary for mutual understanding and cooperation among the

members of an organization. This channel, with all the directions, will be

visible in the organization structure.

6. Co-ordination: Coordinating different activities of an organization is a vital function of

co-operative effort and is a basic feature of an organization.

7. Environment: An organization functions in an environment comprising economic,

social, political and legal factors, the structure must be designed to work

efficiently in changing environment. It cannot be static.

8. Rules and Regulations: Every organization has some rules and regulations for orderly

functioning of people. These rules and regulations may be in writing or implied

from customary behavior.

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Need For Organization:

1. Aid to Management: Organization is the mechanism through which management

coordinates and controls the business. It is the framework through which the

plans are put into action and managerial functions are carried out. If the

organization is ill designed, management is rendered difficult and ineffective.

If it is effective then decisions can be made faster, performance will be

enhanced and order will be ensured within the Organization

2. Facilitates Growth: A well-designed and balanced organization provides for systematic

presentation of work and permits necessary change. It is the framework within

which the organization grows. It enables the organization to enter into new

lines of business, to promote necessary adaptability, to face new challenges,

to increase scope for diversification.

Once the existing system functions independently without any chaos, the

management can utilize its time to build and develop new businesses. If the

existing structure itself encourages confusion, management will have to spend

all of its time on addressing issues pertaining to the existing system only.

Hence an effective organization ensures systematic functioning and paves

way for the management for developing new ventures

3. Ensures Optimum use of resources: A good organizational set-up permits adaptation of new technology. It

helps to avoid duplication of work, overlapping effort and other types of waste.

It facilitates the best possible utilization of human and physical resources.

Effective check can be exercised on work and workers.

4. Stimulates Creativity: Sound organization encourages creative thinking and initiative on the

part of employees. Delegation of authority provides sufficient freedom to lower

level executives for judgment. Clear line of authority and responsibility simplify

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communications. Individual objective can be integrated with the organization

goals. New and improved way of working can be developed.

5. Helps in Co-Ordination: Organization is an important means of integrating individual’s effort. It

helps in putting balanced emphasis on different departments and divisions of

the enterprises. It helps in cooperative and harmony of action.

Types of Organization Structure: Error!

Organization structure marks lines of authority, responsibility and

coordination. The structure of one industrial organization differs from that of

another organization and it (i.e., structure of an organization) depends upon:

i) Size of the organization.

ii) Nature of the product being manufactured.

iii) Complexity of problems being faced.

A few commonly known forms of organization structures or types of

organization are:

a) Line, Military or Scalar Organization.

The line organization represents the structure in a direct vertical

relationship through which authority flows. It is the simplest form of

organization structure and is also known as scalar or military organization.

Under this, line of authority flows vertically downward from top to bottom

through out the organization. The quantum of authority is highest at the top

Types of Organization structure

Line Organization

Line and Staff Organization

Functional Organization

Committee Organization

Matrix Organization

Project Organization

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and reduces at each successive levels down hierarchy. Each person in the

organization is in the direct chain of command.

Advantages of line organization:

It is very easy to establish line organization and it can be easily

understood by the employees. It facilitates unity of command and thus

confirms to the scalar principles of organization. There is clear cut

identification of authority and responsibility relationship. Employees are fully

aware of the boundaries of their jobs.

It ensures excellent discipline in the enterprise because every

individual knows to whom he is responsible. It facilitates prompt decision

making there is definite authority at every level. An executive do not shift his

decision making to others, nor can the blame be shifted.

Disadvantages of line organization:

With growth the line organization makes the superiors too over loaded

with work. If the executives try to keep up with every activity, they are bogged

down in myriad details and are unable to pay proper attention to each one. It

will hamper their effectiveness.

There is concentration of authority at the top. If the top executives are

not capable, the enterprise will not be successful. Line organization is not

suitable to big organization it does not specialist in the structure. Many jobs

require specialize knowledge to perform them. There is practically no

communication from bottom upwards because of concentration of authority at

the higher levels. If superiors take wrong decisions it would be carried out

without anybody having the courage to point out its deficiencies.

b) Line and Staff Organization: Line executives are concerned with the accomplishment of primary

objectives in an organization. Line executives are generalists and do not

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posses specialized knowledge which is a must to tackle complicated

problems. With a view to give specialist aid to line executives, staff positions

are created throughout the structure. Staff elements bring expert and

specialized knowledge to provide advice to line managers so that they may

discharge their responsibilities successfully.

In line and staff organization, the line authority remains the same as it

does in the line organization. Authority flows from top to bottom. The main

difference is that specialists are attached to line managers. The staff officers

do not have any power of command in the organization as they are employed

to provide expert advice to the line officers. Staff executives investigate and

supplies information and recommendations to line managers who make

decisions.

Advantages:

The line and staff organization has the following merits:

• Specialized Knowledge

• Reduction of burden

• Proper weightage

• Better decisions

• Flexibility

• Unity of command

Demerits:

• There is generally conflict between the line and staff executives. There

is a danger that staff men may encroach on the line authority. Line

managers neither feel that staff specialists do not always give right type

of advice, and staff officials generally complain that there advice is nor

properly attended to.

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• The allocation of duties between the line and staff executive is

generally is not clear. This may hamper coordination in the

organization.

• Since staff men are not accountable for the results, they may not be

performing their duties well. There is a wide difference between the

orientation of the line and staff men. Line executives deal with a

problem in a more practical manner. But staff officials who are

specialist in the fields tend to be more theoretical.

c) Functional Organization.

F.W Taylor suggested functional organization because it was difficult to find

all round persons qualified to work at the middle management levels in the

line organization.

Functional organization is also a line type of organization with the

difference that instead of one foreman (which being master or specialist of

FUNCTIONAL ORGANIZATIONAL

LINE Authority FUNCTIONAL Authority

MD

PRODUCTION DIRECTOR

FIN DIR

MARKETING DIR

PERSONNEL DIR

General Manager

Division X

General Manager

Division y

General Manager

Division z

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everything and therefore hard to find) there are 8 functional foremen : 4 of

them located on the shop floor and remaining 4 in the office, but everyone

having direct and equal authority of the workers.

Each functional foreman who is a specialist in an activity is in charge of

one function, Example:

1) Route clerk was in charge of issuing work orders and routing the jobs.

2) Instruction clerk would issue specifications and instructions related to jobs

to the workers.

3) Time and cost clerk keeps records pertaining to the time (the workers have

spent in doing work) and cost (that is workers wages.)

4) Disciplinarian keeps personal records of the workers and handles cases of

insubordination.

5) Gang boss has the charge of the preparation of all work upto the time that

the work piece is set in the machine.

6) Speed boss insures that proper cutting tools are being used, cut is started

at the right place in the work piece, and the optimum speeds, feeds and

depths of cut are being employed.

7) Repair boss is responsible for adequate repairs and maintenance of

equipment and machinery.

8) Inspector or inspection boss looks after and is responsible for the quality of

the product.

Advantages of functional organization:

1. Since a foreman is responsible for one function, he can perform his

duties in a better manner.

2. Functional organization makes use of specialists to give expert advice

to workers.

3. It relieves line executives of routine specialized decisions.

4. Expert guidance reduces the number of accidents and wastage of

materials, man and machine hours.

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5. It relieves pressure of need to search a large number of all round

executives.

6. Quality of work is improved.

Disadvantages: 1. Coordination of the efforts of various functional foremen is difficult.

2. It is difficult to maintain discipline as each worker is responsible to 8

foremen.

3. It is very difficult to fix up the responsibility to any one foreman in case

something goes wrong.

4. Workers always remain confused about the authority and activity of

each foreman.

5. It makes industrial relationships more complex.

6. Workers are not given opportunity to make use of their ingenuity,

initiative and drive.

7. All round executives cannot be developed.

Applications for these reasons (disadvantages) the functional organizations as

such is obsolete; however in the modified form, employing the principles

explained above, it is frequently used in some most modern and advanced

concerns.

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d) Project Organization.

Project organization is oriented towards the completion of a big project

or a small number of big projects. Project management that is molding the

organization around a specific project has been evolved to deal with situations

where production and marketing strategies do not fit into a purely functional

organization. The project organization is usually structured to facilitate

planning and designing of the project, completion of the assigned task and

phasing out of the project. The project led by the Project Manager consists of

specialists from different departments. The project manager has wide powers

for the execution of the project and he may even engage people from outside.

The need of project organization is felt when an organization is to

execute a project or a program which is subject to high standards of

performance as in case of aircraft companies. If the project organization is

created for one-time project, it will have temporary set up and will be

PROJECT ORGANIZATION

MD

Manager Project

Division I

Manager Project

Division II

Engineering R & D Manager.

Accounting officer

Personnel officer

C L E R K S

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disbanded when the project is completed. However, in practice it takes a

permanent form when the duration of the project is quite long and it may

become a regular autonomous project division, functionally organized.

Advantages of Project Organization:

1. Project Organization facilitates providing the concentrated attention that a

complex project demands. It can be tailored to meet the requirements of a

particular project.

2. Project Management requires specialists in various fields. Specialists get

higher satisfaction while working on complex projects. Thus Project

Organization allows maximum use of specialized knowledge available with the

organization.

3. Project Organization provides flexibility in handing specialized projects. It

adopts a logical approach to any challenge in the form of a project.

Limitations of Project Organization:

1. Uncertainty in project structure arises because the project manager has to

deal with specialists from a number of diverse files. The specialists often

have different types of approaches and interests.

2. The job of a project manager becomes very difficult because of lack of

clearly defined responsibility, lack of clear communication pattern, and lack

of standards of performance for various professionals.

3. Decision making is made very difficult because there are unusual

pressures from specialists from diverse fields. The project manger has to

devise a decision process where information could be monitored quickly

and decisions taken quickly.

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4. Motivation of specialists may pose another problem for the project

manager. Moreover, there may be conflicts among the specialists quite

often because of their different orientations.

e) Committee Organization.

According to Louis A. Allen, “A Committee is a body of persons

appointed or elected to meet on an organized basis for the consideration of

matters brought before it.” A Committee is a group of persons performing a

group task with the object of solving certain problems. The area of operation

of a committee is determined by its constitution. A committee may formulate

plans, make policy decisions or review the performance or certain units.

e) Matrix Organization:

Matrix Organization is used when an organization has to handle a

variety of projects, ranging from small to large. When a pure project structure

is superimposed on a functional structure the result is a matrix structure.

MATRIX ORGANIZATION

DIVISION

Production Engineering Finance Personnel

Production Engineering Finance Personnel Group Group Group Group

Project Manager

I

Production Engineering Finance Personnel Group Group Group Group

Project Manager

II

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In other words the matrix organization is a project organization plus a

functional organization. The project structure provides a horizontal lateral

dimension to the traditional vertical orientation of the functional organization

structure. To conclude, matrix organization is created by merging (two

complementary structures, namely) pure project organization and functional

organization.

The project teams are composed of persons drawn from the functions

departments for the duration of the projects. When their assignment is over,

they return to their respective departments. During continuation of the project

such persons have two bosses- one from the functional department and

second of the concerned project.

Advantages of matrix organization:

1) It effectively focuses resources on a single project permitting better

planning and control to meet dead line.

2) It is more flexible than a traditional functional hierarchy.

3) Services of specialists are better utilized as more emphasis is placed

on the authority of knowledge than rank of the individuals in the

organizational hierarchy.

Disadvantages of matrix organization:

1) Matrix organization violates the principle of unity of command as a

person works under two bosses. E.g. project manager and functional boss.

This may give riser to conflicts in the organization.

2) Organization relationships are more complex and they create problems

of coordination.

3) Since persons are drawn temporarily from different departments,

project manager does not have line authority over them.

4) Project group is heterogeneous and due to which morale of the

personnel may be low.

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AUTHORITY:

Authority is defined as, “The Institutionalized right of a superior to command

and compel his sub ordinates to perform certain act”.

Power is “the ability of a person to influence another person to perform an

act”.

Responsibility is the, ”Obligation of a subordinate to obey the command when

a superior assigns some work to a sub ordinate”.

Uses:

According to Herbert A. Simon, three functions of authority deserve

special notice:

1. It enforces obedience to norms: The subordinate who accepts the authority

of the superior is motivated to a very great extent by the fear of sanctions. He

knows that if he disobeys, an elaborate set of sanctions maybe invoked

against him. Hence it ensures discipline in a workplace.

2. It secures expertise in the making of decisions: An extremely important

function of authority is to enable the enforcement and execution of expert

advice given by specialists in the organization. A fundamental device for

securing this is to locate the specialist in a strategic position in the formal

hierarchy of authority, that is, in a position where his decisions will be

accepted as decisional premises by other organizational members.

3. It permits centralization of decision-making by other organization of

activity: By the exercise of authority, it is possible to centralize the function of

decision-making and to force all members to take mutually consistent

decisions.

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Types:

There are two types of authority in most organizations: Line and Staff.

In line authority, a superior exercises direct command over a

subordinate. Line authority is represented by the standard chain of command

that starts with the board of directors and ends down through the various

levels in the hierarchy to the point where the basic activities of the

organization are carried out.

The nature of staff authority is merely advisory literally the word staff

means the stick carried in the hand for support. A staff officer has the

`authority of ideas' only. The information which a staff officer furnishes or the

plans he recommends flow upward to his line superior who decides whether

they are to be transformed into action.

Examples:

A market researcher who gathers and analyses data on marketing

problems and advises the marketing manager on demand for new products; a

personnel officer who advises the personnel manager on all dealings with

unions, are examples of staff authority.

Levels of Authority of a Staff Man:

At the lowest level, consultation of a staff' man for his ideas by the line

head is purely voluntary. The line head may or may not consult him. In fact, at

this level his persuasive ability, status, backing or technical expertises

determine the extent of his influence over hers. At the next higher level,

consultation is made compulsory for each department.

Under this arrangement, the staff man must be consulted before action

is taken. Line people cannot ignore him. The next higher level of staff man's

authority is one where he is granted concurring authority, so that no action

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can be taken by the line people until he agrees to it. Thus, no finished parts

may move to the next stage of production until okayed by the quality control

inspector, no contract may be signed with a third party until approved by the

legal pert, no new employee may be hired by a department head until

approved by the personnel manager, and so on. Under this arrangement, if

the staff and the line people do not agree, an appeal is made the next senior

man in the hierarchy.

The highest level of the staff man’s authority is one where he is granted

functional authority. This means that he can give direct orders to people in

other departments outside his formal chain of command instead of making

recommendations to them.

Examples

In many companies, the personnel manager provides an example of

functional authority. He may have complete control over specific areas such

as recruitment and training in all departments of an organization, besides his

own.

Responsibility:

Authority is the right of a superior to issue commands; responsibility is

the obligation of a subordinate to obey those commands. Thus, when a

superior assigns some work to a subordinate, it becomes his responsibility to

perform it.

Responsibility has two dimensions. One dimension may be expressed

as responsibility for, the other as responsibility for is the obligation of a person

to perform certain duties written in his job description or otherwise accepted

by him. Responsibility is his accountability to his superiors. It is inevitably

associated with check-up, supervision control and punishment.

Responsibility cannot be delegated or transferred. The superior can

delegate to a subordinate the authority to perform and accomplish a specific

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job. But he cannot delegate responsibility in the sense that once duties are

assigned, he is relieved of the responsibility for them. This delegation of tasks

does not absolve the superior from his own responsibility for effective

performance of his subordinate.

Authority Should Equal Responsibility:

This means that the subordinate must have been delegated enough

authority to undertake the duties which have been assigned to him for which

he has accepted responsibility. A subordinate manager cannot be expected to

accept responsibility for activities for which he has no authority.

The advocates of this principle say that authority and responsibility

should be exactly equal. Inequality between the two produces undesirable

results. If authority exceeds responsibility, a misuse of authority can easily

result. On the other hand, if responsibility exceeds authority, the subordinate

may find himself in a very frustrating situation. Not only that, the subordinate

will find it difficult to perform the given responsibility without adequate

authority.

But as Haimann pointed out, that there are some situations where the

strict application of this principle would not be advisable. For example, in

emergency situations, executives often exceed the limits of their authority

without any criticism.

Delegation Of Authority:

Delegation refers to assignment of work to others. Delegation of

Authority refers to decision making to carry out assigned task. According to

Terry, “It is something like imparting knowledge”. According to Louis. A. Allen: “If the manager requests his subordinates to perform the work, he must

entrust him with part of the right and power which he otherwise would have to

exercise himself to get that work done".

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Advantages of Delegation:

1. Basis of effective functioning: Delegation lays the basis for effective functioning of an organization. It

creates the relationship with others and achieves various objectives of the

organization. All the functions in an organization cannot be done by a single

person or by a few persons. Only when the tasks are delegated down the line

in the hierarchy, an organization itself can function smoothly. Otherwise, the

workload will be skewed to one side and a few resources (human resources)

will remain idle without being utilized adequately.

2. Saves time: Delegation of authority enables the superior to allot more time to important

matters like planning, organizing, staffing, directing, coordinating, controlling

and decision-making.

3. Reduction of work: Delegation relieves the superior from attending to the routine matters.

Normally the routine matters are allocated to subordinates. It helps the

superior to carry out more responsible work alone.

4. Opportunity for Development: Delegation of authority gives a very good opportunity to the subordinate to

grow. It helps in identifying the best person among the various subordinates

for development. It ensures experiential learning for all the sub-ordinates.

While doing the delegated task, they learn it to do in a better manner. This

system helps in creating future managers from the sub-ordinates side.

5. Benefit of specialized service: Delegation helps the superior to get the benefit of specialized knowledge

of various persons at lower levels. For example, production is delegated to

the production manager, sales to the sales manager, legal matters to the

lawyer and the like.

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6. Delegation of authority enables effective managerial supervision. The subordinates are told what is to be done through delegation. That

becomes their performance standards. Hence the manager can supervise and

monitor the delegated tasks. If something has to be modified, the subordinate

is immediately given the feedback. Hence it ensures close supervision, and

feedback to control the whole system, without wasting managerial time.

7. Efficient running of branches: If the business has any branch, the branch affairs or activities are looked

after by a separate person. He is supposed to be in charge of that branch.

When he can get adequate authority with responsibility he could work for the

smooth and effective functioning of the particular branch.

8. Interest and initiative: Whenever the delegation of authority takes place, the subordinate may do

the work with interest. This is because the subordinate gets the freedom and

autonomy to do a particular task and completion of that will give a great sense

of satisfaction for the subordinate. In certain cases the subordinate by himself

takes initiative to do the work properly.

9. Satisfaction to subordinates: Delegation of authority will satisfy the self-actualization need of the

individuals. It will also act as an intrinsic reward for the subordinate

10. Expansion and diversification of business activity: The subordinates are fully trained in decision-making in various fields of

the business by using the delegation of authority. This type of talents of

subordinates can be used by the top management in the expansion and

diversification of the business activities.

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Chapter –2 Organizational Behavior

Meaning of Organizational Behavior:

It is the study of Human Behavior at Organization. It studies Human

behavior at Individual Levels (and also at group level). Organizational

Behavior is the study and application of knowledge about human behavior

related to other elements of the organization such as structure, technology

and social system. Organizational Behavior is referred widely as O.B. -

(Organizational Behavior), B.S. - (Behavioral Science), O. D. (Organizational

Dynamics).

Definitions:

Fred Luthans has defined Organizational Behavior as, "the study of

human beings and systems as individuals and groups in organization with

application of Psychology, Sociology, Anthropology and Related Sciences".

Stephen. P. Robbins has defined Organizational Behavior as, "the

field of study that investigates the impact that individuals, groups and

structures have on behavior within organizations for the purpose of applying

such knowledge towards improving organization effectiveness".

Aldag has defined Organizational Behavior as, “A branch of social

science that seeks to build theories that can be applied to predicting,

understanding and controlling behavior in work organization."

Overview

Evolution: Early days: No proper recognition given for people working in the

organization. Even though large projects like Egyptian Pyramids, Indian

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Temples involving huge Human resource were organized, human beings were

treated as mere machines and considered only about the output. The earliest

reference about the term "Staff" is found in Bible in the story of mosses

(meaning support). Lots of management principles, psychological, sociological

concepts were found in Mahabharata and Arthasastra. First organized attempt

to deal with people was carried out during Industrial Revolution in the 18th

Century. But people were treated as mere factor of production and were

treated as machines.

Exception was made by Robert Owen, a great industrialist of Scotland.

He laid down important principles about handling people in organization and

relating to Proper work load, Proper wages, Fatigue pauses, Welfare facilities

etc. He is considered as "Worlds first enlightened manager" and "Father of

Personnel management, Organization Behaviour" sciences. Taylor during

19th Century came out with his scientific management principles and did Time

study and Motion study. He concentrated on making people work in the most

efficient manner without regard to thier human aspects, this caused temporary

set back to the human relation movement.

Within few years Fayol's Principles of Comprehensive Management

became popular in Western World. He laid proper emphasis on human

aspects also. During First World War (1914 - 1918) same attempts were made

to understand the psychology of military personnel. At that time Sigmund Freud - "Father of Psychology" published his theories of Man. During 1930's

great depression of many organizations were closed and the sufferings of

labour got highligtened, and led to the formation of Trade Unions.

Next important milestone took place during 1924 - 32, Hawthorne

studies by Elton Mayo and his group. His experiments were the first

organized attempts to study behavior in organization. Soon after this

Personnel department's started to develop in organizations. In India Tata's

are the pioneers in devoting a separate department for personnel functions.

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During Second World War (1939 - 45) study of Psychology of people

with respect to war efforts were carried out. Many important concepts were

discovered and developed relating to understanding of people like Group

dynamics, Leadership, Communication, Motivation, People working in

hierarchy etc. During 1957 Douglas Mc. Gregor Published "The Human side

of enterprise" and came out with his theory of X and Y which became very

popular and was considered as an important milestone in behavioral

applications.

During 1954 Maslow came out with his theory of Motivation by name

Maslow's Hierarchy of Needs. The subject is growing still, absorbing many

concepts from pure Psychology, Sociology, Anthropology, Medicine. Many

new discoveries were being made and 100's of text books are added every

years and lots of research scholars are working in this!

Hawthorne Experiments:

ELTON MAYO (1924 - 32) is called "the father of human relations

movement". These experiments carried out in Hawthorne plant in Western

electric company - Chicago, by group of researchers from Harvard School of

Business Management, U.S.A., headed by E. Mayo. Studies were carried out

during 1924 - 32. Scientific Management Principles were the only principles in

management. According to Scientific Management Principles if you demand

more performance you will get it by tightening timing and movements.

Production can be increased by providing proper tools and by such other aids.

This was an irrevocable law of managing organizations.

Aim of the Study:

Elton Mayo and his team started doing these experiments on the

premises of scientific management principles.

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1. Their aim was to study the impact of the Physical factors, (for

example – Rest, Lighting, Incentives, Refreshment, Working hours etc) on

production. But they ended up with a totally different set of revelations.

2. They found that there is relationship between human behavior,

social factors and production. And all are equally important in organization. A

connection between physical factors and production exists always. The

results are relevant even today. These studies are considered to be the most

important event in the history of Organization Behaviour.

1. Illumination Experiments:

Here the researchers started with a hypothesis that good lighting

condition will increase productivity (Relationship between lighting and

productivity was studied). For this purpose 2 sets of workers were chosen 1st

set to work in the control room with constant and favorable illumination and

2nd set to work in an experimental area outside the control room were the

lighting conditions were continuously changing. The rest of department

worked under standard lighting.

The results were very different in both the areas the productivity was

higher than usual. The products in the experiment room suffered only when

the lighting conditions became so dim that a normal eye cannot see. But

under all other lighting conditions, the production went on increasing. The

production in the standard light room also was increasing. The researchers

could not establish any relationship between lighting and productivity. (The

recognition and the attention given to the groups made them produce more

and more).

2. Relay Assembly Test Room Experiments:

The researchers created a Test room (or) Experimental room for

studying the assembly of telephone relays the work involved assembling

many parts and making a rely. Here the output depended on speed and

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continuity a test room was set up 2 girls was chosen for this experiments.

They were asked to choose 4 more of employees of this choice.

The team of 6 started working in the experimental room's. The

supervisor of this team happened to be very efficient and pleasant person.

(the researchers started varying the physical factors).

The following changes were made-

1. The girls were told that their incentive will be calculated on the basis of the

performance of these 6 girls (earlier it was a large group of 100).

2. Two 5 minutes rest intervals were given - 1 in the morning and 1 in the

afternoon. This was increased to 10 minutes each. (The production

increased).

3. The rest intervals were reduced to 5 minutes. But 4 rest intervals were

given the girls complained of disturbance in their speed and continuity. (slight

fall in production).

4. Rest periods of 10 minutes are given as before.

5. Tea and Snacks were introduced.

6. Working hours were changed; pay was reduced with the condition that the

girls should maintain production.1 day in a week was reduced with the same

condition.

During all these the production went on increasing. Then the

researchers went back to the earlier stage (cancelled all changes) and still

production was high.

The researchers could not establish correlation between working

hours, incentives etc. (The production increased because of the freedom,

[26]

recognition good supervisor, good incentive scheme and good team spirit.

Team was compatible to each other. Girls were consulted and were proud

that they were able to decide their own destiny.

3. Mass Interviewing program:

During these experiments the team conducted 1000s of interviews with

the workmen and officers. They formed the following important conclusions

about behavior at work place. A complaint is not an object statement. A

complaint a best voices the feelings of the organization.

The complaints are not objectively made, it is highly subjective. In

other words the workers make a complaint because his work is distributed by

it. The complaint need not be factually connected. Each worker views all

things in the company with respect to his position. Sentiments, emotions are

as important as facts and figure. Objects and events have social meanings.

Group and Social pressures have considerable influences on individuals.

(Interpersonal relations play a visual role). We assign values and meaning to

a person's words and action based on his status in the org.

4. Bank Wiring Observation Room Experiment:

Here 14 workers were chosen. An observation room was set up to

observe 14 workers which included some weak workman too. The job

involved attaching wires to switches. workers were told that they will be paid

on piece rate basis - every man will earn according to his own production and

the whole group will earn some bonus if the group achieves certain standard

of efficiency.

A minimum time rate was assured and further incentives based on the

group output. The researchers expected that the group will compensate for

the weak workers. The researchers thought that each man will take care of

himself and also help the weaker people to earn group bonus. But the

production went down. The workers produced only at minimum level.

[27]

Reason for it:

1. The factory is not objecting to minimum performance.

2. The group reduced its output to the level of the weak workmen in order to

protect them. (The weaker workman may loose their job).

3. The workmen knew that this was the last experiment (1931 - 32). They

feared that the management will ask them to maintain high level even after

the researchers complete their work, so they produced less.

5. Psychological Testing and Counseling:

During this period the researchers found that it is possible to measure

skills attitude etc accurately if proper tests are developed. Similarly they

discovered the importance of face to face talk in improving performance,

interpersonal relationship etc. (Interviewing or counseling).

Findings of Hawthorne Studies:

1. Importance of people:

The Hawthorne experience started studying physical factors and ended

up in recognizing human factors.

2. Importance of Social factors:

An organization is not only structure and procedure. It also comprises

of people as individual, and as groups. The social factors are very relevant

for each member and for the organization. Thus not only physical factors,

social factors are also important.

3. Informal Groups:

The informal groups can effectively interfere with the formal

organization. (Bank wiring room experiment). Informal groups can support the

[28]

organization (Relay assembly exp) work is influenced by formal and informal

aspects of management.

4. Recognition:

People do work well when they are specially notified. Recognition and

attention act as strong motivators. (Illumination test).

5. Team spirit and morale:

Morale and reasonable degree of freedom can influence work

substantially (Relay assembles).

6. Benefits of Participative management (for relay assembly test)

7. Importance of supervisors (Relay assembly test).

8. Necessity for grievance procedure (mass interview counseling programs).

9. Groups can create conflicting interest. Understanding and working with

informal group is important (Bank wiring exp).

10. Importance of Communication. (Relay assembly)

11. Group pressure and group dynamics exists is organization. (Relay

assembly and Bank wiring).

12. Group may act differently than the individuals.

13. Social factors, cliques (Parties / group of people with difference) and

status systems are important in organization.

Are the findings of Hawthorne experiments relevant today?

In modern world a real importance is being given to technology, the

importance of human aspects are being forgotten very often, therefore the

Hawthorne experiments are more relevant today and the important findings of

these experiments will continue to be relevant even tomorrow.

1. In today’s industrial undertakings, more and more attention is being paid to

technology, finance and marketing matters. The personnel matters are not

attended to in equal degree.

[29]

2. In the current environment it is just not possible to extract work through

pressure and threat. Greater understanding of human behavior is required.

3. Today’s organizations are more complex more impersonal than Hawthorne

days.

4. Today’s workmen are better protected by law and better educated.

In view of the above factors it has become more necessary to

understand and interpret human behavior than the olden days. Therefore the

finding of Hawthorne experiments emphasizing the importance of behavioral

factors is all the more relevant today.

Findings:

Importance of the following -

1. Role of Leadership,

2. Communication,

3. Proper pay and Incentive schemes,

4. Informal group and Social pressure,

5. Providing right atmosphere for work,

6. Participative Management,

7. Supervision,

8. Recognition and Freedom,

9. Team spirit,

10. Importance of Psychological testing,

11. Counseling.

Nature and Scope:

1. It studies Individuals.

2. It studies Groups.

3. It studies Organization itself.

[30]

4. It studies Different Levels of people in the Organization.

5. It studies real life situation.

6. It studies Dynamic Situation.

7. It is both Art and Science.

8. It is Interdisciplinary study.

9. It aids rational study. Not a Black magic, Not a Rule of Thumb, Not an

Unscientific rule.

10. Studies both formal and informal relationships in practical situations.

11. Oriented towards objectives - both Individual and Organizational objective.

12. It is developmental in Nature.

Importance of Organizational Behavior

1. To extract performance from people now a days understanding of people is

required.

2. Only with understanding of people we can get high levels of performance.

3. If we can't understand people an alternative is to get rid of them. But that is

not a wise alternative because the problem will exist even after sending them

out. The new employees who join also may bring such similar problems. It is

also not possible to terminate people just like that because getting

replacement is costly and expensive. Therefore understanding people

through O.B concepts is essential.

4. Psychological foundation of human behavior is

a. All behavior is caused (their is External and Internal cause.)

b. Individuals behavior differs,

c. No two Individuals are totally alike,

d. Behavior is Complex and Dynamic,

e. Wholeman concept - man comes to work not only with two hands but also

with his whole personality, past experience, family background, ambition,

frustration etc.,

[31]

5. Dignity - While handling people human dignity is a very important factor.

6. Organizations have 2 conflicting interest - Management's interest for more

productivity and more profit. People (Employees) interest for more benefits.

Only a person with proper understanding of people can reconciles this

conflict.

7. Government interference and Laws.

8. It is an art to work with people.

Contributing Disciplines to Organizational Behavior:

Organizational Behavior is not a discipline in itself but it uses

knowledge developed in the relevant disciplines. It draws concepts and

principles from behavioral sciences and other core disciplines. The

contributions of these core disciplines to Organizational Behavior are as

follows:

1. Psychology:

It is a subject of study of the mind and its functions. Organizational

Behavior is a specialized branch of Psychology. Many topics from pure

Psychology have been taken to Organizational Behavior like Motivation ,

Work stress, Personality, Job satisfaction, Attitude, Performance Appraisal,

Communication, Leadership, Training, Employee selection, etc.,

2. Sociology:

It is the study of large group, behavior of large group and large

communities and societies. It contributes areas like Group Dynamics, Morale,

Roles, Power, Conflict, Inter group behavior, Organizational Change,

Organizational culture, etc.,

[32]

3. Anthropology:

It is the study of evolution of mankind (history of man) over a very long

period. Its contribution areas like Leadership, Sentiments, Effect of value

system, Interaction, etc.,

4. Political Science:

It is governance by the state through political parties. It has contributed

in areas like Power, Emotional aspects of organization, Authority, Conflict,

group dynamics, politicking behaviour, Clique, Intra organizational politics,

etc.,

5. Economics:

It is the study of application of resources to satisfy Human wants.

Economics Laws on production, consumption... are very relevant for

Organization. It has contributed in areas like Labour Economics, Interaction

of people with finance, etc.,

6. Medical Sciences:

It contributes to areas like Health, Welfare, Safety, Stress etc.,

Reason for failure of the Theories:

1. Lack of proper understanding of Theory:

Lack of Proper understanding of the theory means most of the

individuals are not understanding the theory fully and mainly the context in

which the theory was developed. Individuals apply other than the theory,

Applying the theory in an inappropriate situations.

[33]

2. Lack of Specific Applicability of a Theory:

Theories are developed using scientific methods on relatively large

number of observations. Theories developed tend to apply to individuals

collectively but not to any one specific person. Manager may try to apply the

theory to specific situation that does not fit the general requirements of the

theory. e.g.: Money - Motivator.

3. Lack of Universal Applicability:

Characteristics of Human beings differ from place to place. Theory

developed in one situation may not be applicable in another situation, since

the variables involved in it differs. Indian managers should be clear with this

concept (applicability) when they apply the theories developed abroad for

managing Indian Organization.

4. No Consideration given for Systems effect:

Managers trying new theories to solve the original existing problem

occasionally end up with new problems created as a result of the action. It is

because theoretical models tend to neglect the systems effect of introducing

change into an organization.

5. Wrong Theory:

Wrong theory may be created. Reason for it may be change of

environmental conditions under which the theory was created, Incorrect

conclusions have been drawn from right data, correct conclusions have been

drawn from poor data.

Individual Differences:

The nature of human behavior is complex. In understanding the

behavior of people, they should be studied in their totality by taking a

[34]

'wholeman concept’. This concept is essentially a combination of all factors

affecting human behavior.

Nature of Individual Differences:

People have much in common but each person in the world is also

individually different. Each one is unique probably in millions of ways, just as

each of their finger print is different. Each person is unique and individual

differences tend to make people even more different.

Individuals differ in work in the following respects:

1. People differ in the importance that they attach to intrinsic rewards. In

other words, different people attach different degrees of importance to

rewards and kinds of job they would like to perform.

2. People differ in the type of compensation plan they want to desire. Some

may prefer time rate system. Some others may prefer piece-rate system.

3. People differ in the style of supervision. Some people may prefer to work

under autocratic style while others work more effectively under democratic

style.

4. People differ in their preferred schedules of work hour.

5. People differ in their tolerance for stress and ambiguity.

Causes of Individual Differences: Differences in the behavior of individuals is a consequence of a

combination of different factors. They are as follows:

(I). Individual variables:

[35]

The behavior of an individual is affected by physiological, psychological

and socio-cultural variables. They are as follows:

1. Physiological Variables:

Human beings possess certain biological characteristics which are vital

to his behavior. Physiological characteristics such as heredity, sensory

organs, physical build-up, and nervous system determine the outcome of the

behavior of an individual.

2. Psychological Variables:

Psychological factors are more important in shaping the behavior of a

person. Psychological processes such as intelligence, learning, perception,

personality, motivation are integral part of human behavior.

3. Socio -Cultural Variables:

An individual learns many behaviors from his society and cultural

background. So, the socio-cultural variables affect the behavior of a person.

All these kinds of variables together make an individual unique and different

from others.

(II). Situational Variables:

The situational variables affect the behavior of human beings. They may

be organizational variable or physical and job variables. They are as follows:

1. Organizational Variables:

Organizational factors such as nature and form of organization, polices

prevailing, leadership existing, group dynamics, culture prevailing, type of

supervision, training, incentives and social environment at work place

influence the behavior of individuals.

[36]

2. Physical and Job Variables:

Physical and job variables like methods of work, design of work

condition of work, equipment and physical environment of work, affect the

behavior of individuals.

Management can achieve the desired behavior from individuals by treating

them differently. Individual differences have great importance in the

organizations. Different individuals with different qualities and capacities are

required to perform various functions. The understanding of individual

differences helps to assign duties and motivate people.

[37]

Chapter - 3 Group

Definition: Shaw has defined Group as, “Two or more persons who are interacting

with one another in such a way that each person influences the group and is

influenced by the group".

Stephen P. Robbins has defined Group, "Two or more persons

independent and interacting who came together to achieve a particular

objective".

Essential features of a group: (1) Two or more persons

(2) Common objective

(3) Interaction with one another.

Informal and Formal Groups: Formal group is the official relationship. Informal group refers to the

friendly relationships between people in an origin.

Difference between formal and informal groups:

S.no Formal Informal

1 Created by organization Created by itself

2 Purpose is for achieving the

legitimate objectives of

organization

Purpose keeps changing and

created by their own and

purpose is fixed for social and

psychological satisfaction

3 Authoritative voluntary and friendly

4 Leader is appointed and are

managers

Leader is elected

[38]

5 The number of members,

objectives, position of leader

relatively stable

All flexible

6 Formal groups may be quite large

in size because they give

representation to various interest

groups in the organization.

Tend to be small in size so as

to maintain group cohesive

7 Formal groups are stable and

continuous for a long period

Informal groups are unstable

and may disappear very quickly

8 Formal groups derive authority

through the formal source (i.e.)

through the process of delegation

and re-delegation.

Authority is commanded and

voluntary

9 Communication is fixed Communication keeps on

changing

10 Formal channel of communication

structure and lines of

communication are fixed.

Channel of communication are

Flexible

11 Leader is appointed It is voluntary and keeps on

changing

12 Expression is limited Freedom of expression

13 Role of members are fixed in

formal groups

Member’s roles are over

lapping.

14 Behavior of members is governed

by formal rules of the organization

The behavior is governed by

norms beliefs and values of the

group.

15 Formal groups can be abolished at

any time since these are created

by organization process. They can

be abolished over specific purpose

or period is over

They are difficult to abolish by

the organization process

[39]

How to handle informal groups?

• Recognize their existence - understand that they will be there in any

case.

• Try to work along with informal groups to the extent possible – do not

threaten them.

• Before making any major changes the management must study the

possible reaction of informal group.

• Allow participation of the informal group

• Provide proper environment for the informal groups to have healthy

competition

• Understand the inner connections of informal relationships.

• Understanding the dynamics of informal groups

• Identifying the informal group leaders and their influence on group

members

• Understanding the power dynamics of informal groups

Merits: 1) Informal groups supplement and support formal functions

2) They are the reservoirs of motivation and morale, friendliness, team spirit,

etc.

3) They are the customers of the standards and norms of group behavior.

4) The informal groups are great communications. They can spread

messages very fast (but they produce rumor which is dangerous).

Types Of Groups:

1) Task groups (people on a common job)

2) Command groups (boss - subordinate relationship)

3) Friendship groups (bound by common characteristics, like age)

4) Interest groups (have same interests, e.g., unions)

[40]

5) Reference groups (wanting to be a foot ball players - all people and events

connected to football become my frame of reference, refer with his activity)

6) Membership groups (age limit)

7. Primary group: (Face to face)

8. Secondary group. (opposite to first one) (Hi Bye)

9. Professional groups (Doctor's association lawyers).

10. In groups (major position in society)

11. Outgroups (low level, illegal)

12. Formal and Informal groups

13) Religious, social, cultural groups.

Why people join groups?

People join groups:

*for strength

* for bargaining power

* for affiliation

* for practical reasons

* for security

* for identity

* for goal achievement

* for self esteem

Elements of the group:

(1) The leader

(2) Members

(3) The norms

(4) The processes and structures

[41]

The Five-Stage Model

The five stage group-development model characterizes group as proceeding

through five distinct stages: forming, storming, norming, performing, and

adjourning.

(i) Forming: This stage is characterized by great deal of uncertainty about the

group’s purpose, structure and leadership. This stage is complete when

members have begun to think of themselves as part of the group.

(ii) Storming: This stage is characterized by intra group conflicts. Member's accept

the existence of the group but resists the constraints the group imposes on

individual, further there will be a conflict on who will control the group. When

this stage is complete there will be a relatively clear hierarchy of leadership

within the group.

(iii) Norming: This is one in which close relationships develop and group

demonstrates cohesiveness. This norming stage is complete when the group

structure solidifies and the group has a common set of expectation of what

defines correct member behavior.

(iv) Performing: The structure at this point of fourth stage to fully functional and

accepted group energy has moved from getting to know and understand each

other to performing the task at hand.

(v) Adjusting: The final stage in group development for temporary groups,

characterized by concerned with rapping up activities rather than task

performance.

[42]

Many interpreters of the five-stage models have assumed that a group

becomes more effective as it progresses through the first four stages. While

this assumption may be generally true, what makes a group effective is more

complex than this model acknowledges. Under some conditions, high levels of

conflict are conducive to high group performance. So we might expect to find

situations in which groups in stage II outperform those in stage III or IV.

Similarly, groups do not always proceed clearly from one stage to the next.

Sometimes, in fact, several stages go on simultaneously, as when groups are

storming and performing at the same time. Groups even occasionally regress

to previous stage. Therefore, even the strongest proponents of this model do

not assume that all groups follow its five-stage process precisely or that stage

IV is always the most preferable.

Another problem with the five-stage models, in teams of understanding

work related behavior, is that it ignores organizational context. For instance, a

study of a cockpit crew in an airliner found that, within 10 minutes, three

strangers as signed to fly together for the first time had become a high-

performing group. What allowed for this speedy group development was

strong organizational context surrounding the task of the cockpit crew. This

context provided the rules, task definitions, information, and resources

needed for the group to perform. They didn’t need to develop plans, assign

roles, determine and allocate resources, resolve conflicts and set norms the

way the five-stage model predicts.

Theories of Group Formation:

People who work in a close geographical area or close proximity with

each other tend to form groups. There are various theories of group formation.

Homan's Theory:

Groups are formed because of common activities, interactions and

sentiments between members.

[43]

Balance Theory: by Theodom Newcomb: Peoples are attracted to each on the basis of similar attitudes towards

common goals / objectives. Once a relationship is established, if there are

imbalances, the group tries to restore the balance - otherwise, the group is

dissolved.

Exchange Theory: People join groups because they think what they will get in exchange

for joining the group. This theory covers the principles of all earlier theories.

Group Effectiveness:

1) Qualities of the leader

2) Members

3) The composition of the group age, skills, etc.

4) Motivation and morale levels

5) Nature of the task

6) Possibility of achieving the task

7) Reward /punishment systems

8) Conflicts in the group

9) Processes and structures

10) Role identity, perception, etc.

11) Severity of admission/exit procedures

12) External threats

13) Unique rituals and practices

14) Some organizational factors

a) The image of the origin.

b) Its record of success

c) Its management style

d) Its attitude towards people

e) Policies and practices with regard to people

[44]

f) Financial / reward policies - particularly the link

between performance and reward.

CLIQUE:

It is a small group - closely knit who have frequent interactions and

observe certain common norms and standards. Their aim is to gain power and

control over the boss and other members.

SYNERGY:

The result of a group's performance will be larger than the sum total of

the collective efforts of the individual members of the same group.

SOCIOMETRY:

It is a process of measuring the group's effectiveness by studying the

patterns of interactions between the members of the group. Bale's Interactive

process analysis is an important tool of sociometry. Here imaginary lines are

drawn to plot the interactions between the members of the group. At the end

some patterns of behavior are clearly visible.

GROUP THINK:

The group think is a situation where the members of the group tend to

agree to a uniform view mostly with the leader or with a powerful member of

the group. They do not want to express a differing view point. This is certainly

bad for the group's efficiency.

Avoiding Group Think Tendency:

1) Remove fear complex

2) Promote participative style of management

3) Theory "Y" attitudes

[45]

4) Ask for everybody's opinion starting from the junior most.

5) Assure everyone that he will not be criticized for giving his original

opinion and demonstrate it in reality.

6) Promote the habit of speaking with facts and figures and not just

opinions.

Group Dynamics:

Definition:

Kurt Lewin and Joe Kelly defined group dynamics as, "Internal nature

of groups, how they perform, their structure and processes, how they function,

how they affect the individual members, other groups and the organization as

a whole".

In simple words, group dynamics means whatever the group does.

Snaw defined group dynamics as, "two or more persons interacting

with one another in such a manner that each person influences the group and

in turn is influenced by the group.

Features:

• Two or more persons to form.

• Collective identity. (each member must be aware of each other)

• Interaction.

• Goal interest.

Group Behavior:

External conditions purposed on the group:

• Organizational strategy.

[46]

• Authoritative structures. (Determines the leader for group defines

where the group will be (Determines act, power) in overall structure).

• Resource allocation (wards groups)

• Personal selection process. (Selection of employees, if they are

effective group works well)

• Performance Evaluation and reward system (methods)

• Physical work setting. (Layout of work)

• Formal regulations. (Sets up rules group has to follow).

Group structure:

1. Formal leadership.

2. Role (part played by individual) "Role is a set of expected behavior patterns

attributed to someone occupying a given position in a social unit."

"Role perception, is an individuals view of how she is supposed to act in a

given situation".

"Role expectations, is how others believe a person should act in a given

situation".

3. Norms. (Standard Behavior)

4. Size of the group.

5. Composition of the group.

Group Decision Making :

Advantages :

1. More complete information and knowledge

2. Increased diversity of views.

3. Increased acceptance of solution.

4. Provides personal satisfaction

5. Increased legitimacy.

[47]

Disadvantages :

1. It will lead to conflicts.

2. It is a time consuming process.

3. Ambiguous responsibility.

4. Pressures to confirm or group think.

5. Domination by few.

Whether groups are more effective than individuals depends on the criteria we

use for defining effectiveness such as the following-

(a) Accuracy: Group decisions tend to be more accurate than individuals.

(b) Speed: Individuals are superior and faster than the groups.

(c) Creativity: groups have more than individual.

(d) Degree of acceptance Groups have more acceptance.

(e) Efficiency: Individuals more efficient than group.

But to conclude, this judgment purely depends on the dynamics of the group

Group Cohesiveness

Groups differ in their cohesiveness, that is, the degree to which

members are attracted to each other and are motivated to stay in the group.

For instance, some work groups are cohesive because the members have

spent a great deal of time together, or the group’s small size facilitates high

interaction, or the group has experienced external threats that have brought

members close together. Cohesiveness is important because it has been

found to be related to the group’s productivity.

Studies consistently show that the relationship of cohesiveness and

productivity depends on the performance-related norms established by the

group if performance-related norms are high (e.g., high output, quality work,

and cooperation with individual outside the groups), a cohesive group will be

more productive than will a less cohesive group. But if cohesiveness is high

[48]

and performance norms are low, productivity will be low. If cohesiveness is

low and performance norms are high, productivity increase but less than in

the high cohesiveness-high norms are both low, productivity will tend to fall

into the low to moderate range. These conclusions are summarized in the

following exhibit.

To encourage group cohesiveness:

(1) Make the group smaller.

(2) Encourage agreement with group goals.

(3) Increase the time members spend together,

(4) Increase the status of the group and the perceived difficulty of attaining

membership in the group.

(5) Stimulate competition with other groups.

(6) Give rewards to the group rather than to individual members.

(7) Physically isolate the group.

High Productivity

Moderate Productivity

Moderate to low Productivity

Low Productivity

High Low

Low

High

Performance norms

Relationship between Group Cohesiveness, Performance Norms, and Productivity

Cohesiveness

[49]

(8) Encourage an identity for the group

[50]

Chapter – 4

PERCEPTION Definition

Perception may be defined as the process of selecting, organizing and

interpreting or attaching meaning to events happening in environment.

Perception is the mental process used to select, organize and evaluate

stimuli from the external environment to mold it into a meaningful experience.

Perception is both physical and psychological. It is the processes by

which the inputs are received from the environment (stimuli) are selected,

analyzed, organized and interpreted and recorded (the recordings can be kept

for future use).

Features of Perception

1. Perception is the intellectual process through which a person selects the

data from the environment, organizes, and obtains meaning from it.

2. Perception is distinct from Sensation. Physical process of obtaining data

from environment is known as sensation.

3. Perception is the basic psychological process.

The manner in which a person perceives the environment affects his behavior. Thus people's actions, emotions, thoughts or feelings are trigged by the perception of the surroundings. 4. Perception being an intellectual and psychological process becomes a subjective process.

Different people may perceive the same environmental event differently based on what particular aspect of the situation they choose to absorb, how they organize this information and the manner in which they interpret the situation. Thus, the subjectively perceived ' reality' in any given setting may be different for different people.

PERCEPTION SENSATION It is both physical and Psychological. It is a physical process It is a process by which inputs that It is a process by which data are received from the environment received through sensory organs (stimulus) are selected, analyzed , like hearing , testing, seeing , organized, interpreted and recorded touching etc…. The recordings are kept ready for The recordings are for immediately future use. use. More Broader and Complex than Less Broader and Complex than Sensation. Perception

[51]

3. Perception is the basic psychological process.

The manner in which a person perceives the environment affects his

behavior. Thus people's actions, emotions, thoughts or feelings are trigged by

the perception of the surroundings.

4. Perception being an intellectual and psychological process becomes a

subjective process.

Different people may perceive the same environmental event differently

based on what particular aspect of the situation they choose to absorb, how

they organize this information and the manner in which they interpret the

situation. Thus, the subjectively perceived ' reality' in any given setting may be

different for different people.

Factors that influence Perception

1. Factors in the situation

• Time

• Work setting

• Social setting

2. Factors in the perceiver

• Attitudes

• Motives

• Interests

• Experience

• Expectations

3. Factors in the target

• Novelty

• Motion

• Sounds

• Size

[52]

• Background

• Proximity

PERCEPTION PROCESS

PERCEPTION PROCESS

1. Stimuli (perceptional input)

Everything which contributes to the occurrence of events can be

termed as stimuli (inputs).

i) Stimuli is the first step in perceptual process.

ii) Stimuli may be in the from of people, objects, events, Information,

conversation. The perceptual process can't start in the absence of stimuli.

2. Receiving Stimuli

Perception Perceptual Process

Input – Throughput – Output

Stimuli

Recording Stimuli

Selection of Stimuli

Organization of Stimuli

Interpretation

Action

Perceptual Input

Perceptual throughputs

Perceptual output

[53]

The actual perception process starts with the receipt of the stimuli or

data from various sources. Most data is received through the 5 organs (Ears -

hear, Nose-Smells, Tongue-Tastes, Body-Touches, Eye – Sight). Reception

of Stimuli is the Physiological aspect of perception process.

3. Selection of Stimuli

After receiving the stimuli or data, some are selected for further

processing while others are screened out because it is not possible for a

person to select all stimuli for processing to attach meaning which he receives

from the environment. Two factors that affect the selection of stimuli for

processing are -

(i) External factors

Important external factors are intensity of stimuli, its size, contrast,

movement, repetition, familiarity, strange characteristics, etc., Such features

of stimuli attracts the attention of perceiver more when compared to the other

stimuli.

(ii) Internal factors (Or factors related to the perceiver)

Most important Internal factor to selection of stimuli are the perceivers

self acceptance. Such factors of the perceiver influence his interest or

indifference in the object being received for perception. Normally he will select

the objects which interest him and will avoid that for which he is indifferent.

The past experience may not be relevant to the present situation; it is

nevertheless used by the perceiver

4. Organization of stimuli

[54]

After selecting the data, they are organized to make sense out of them. Such

organization of stimuli may take the form of figure–ground, grouping,

simplification and closure.

Figure – ground

In perceiving stimuli there is a tendency to keep certain phenomena in

focus and other in background. More attention is paid to phenomena which

have been kept as figure and less attention to phenomena kept in

background. e.g.1: While reading a book – letters, figure page on which it is

presented, background (See figure- 1). Perception way change if certain

stimuli are changed form figure to background. e.g.2: In certain organization,

good performance (a figure promotion in normal case) may be taken as

background and maintaining good relations with boss for promotion (ground in

general cases) may be taken as figure.

Figure- 1 Depicting the Figure and Ground concept-

[55]

Figure- 2

Simplification

Whenever people are over loaded with information, they try to simplify

it to make it more meaningful and understandable. In simplification process,

the perceiver subtracts less salient information and concentrates on important

one. Simplification helps to make things more understandable because the

perceiver has been able to reduce the complexity by eliminating some of the

things which are less important.

Closure

When faced with incomplete information, people fill up the Gaps

themselves to make the information meaningful. This may be done on the

basis of past experience, past data or hunches.

Interpretations

[56]

Perceptual inputs that have been organized will have to be interpreted

by the perceiver so that he can sense and extract some meaning of what is

going on in the situation. People interpret the meaning of what they have

selectively perceived and organized in terms of their own assumptions of

people, things, and situations. They also become judgmental as well and tend

to interpret things as good or bad, beautiful or ugly and so on which are quite

relative terms.

In such process there are chances of misinterpretation. Interpretation of

stimuli is affected by -

• Characteristics of stimuli,

• Situations under which perception takes place,

• Characteristics of the perceiver,

• These factor also affect their selection for perception and also the

interpretation,

• Similarly the physical, social and organizational stimuli in which an

object is perceived also affect the interpretation.

Action

The last phase of the perceptual process is that of acting in relation to

what has been perceived. This is the output aspect of perception process.

The action may be covert, or overt.

• Covert – the covert actions may be in the form of change in attitude,

opinions, feelings, values and impression formation resulting form the

perceptual input and through puts.

• Overt – the overt action may be in the form of behavior easily visible

PERCEPTUAL DISTORTION The following are the factors distorting perception

1. SELECTIVE PERCEPTIONS

[57]

Some times people hear what they want to hear. Their expectations

modify their perception and they are selective in perception. They will ignore

certain facts which are important but which are not preferred by them which is

dangerous.

2. PROJECTIONS

A person attributes his own qualities on others (affecting).

3. ATTRIBUTIONS

Tendency to find a logic for each and every action or behavior by

interpreting them as caused by certain factors.

4. PERCEPTUAL SET

The effect of earlier perception influences the present perception.

5. PERCEPTUAL DEFENCE

The people have discomfort to receive stimuli which are unpleasant to

them hence they adopt defensive posture.

6. HALO EFFECT (1920)

Process in which a favorable or unfavorable general impression is used

to judge / evaluate several specific trait. Halo serves as a screen in keeping

the perceiver away from actually seeing the reality in judging. e.g.: It means

Mr. X is good at one thing (fact) thus he is good at many other things

(perception).

7. STEREO TYPING

[58]

First used by WALTER LIPPMAN in 1922, used to describe bias in

perceiving people. He belongs to a particular “group of profession” therefore

he is like that. Bruner and Perl muffer indicated that there is an international

stereo typing for businessmen and teachers.

8. FIRST IMPRESSION

People evaluate others on the basis of first impression. It may be

correct if it is based on adequate and significant evidence otherwise it is

incorrect.

9. MENTAL SET

Mental set is the tendency one has to react in a certain way in a given

situation. In the same manner in an organization wrongful perception may

arise because of mental set.

10. PERSONALITY

Personality of the perceiver greatly influences the perception of the

person. Researches suggest that (i) secure people perceive others as warm

individuals rather than cold and indifferent; (ii) self-accepting people perceive

others as liking and accepting people; (iii) people tend to perceive others

more accurately when they are more like the ones that they are perceiving

than if they are different from those who are being perceived. These imply that

insecure, thoughtless, or non-self-accepting persons are less likely to

perceive themselves and those around them accurately. They will, in all

likelihood, distrust, misrepresent, or in other ways defensively perceive

situations. This will influence the resultant behavior of the person concerned.

11. PERSON PERCEIVED There are certain characteristics of person being perceived which also

influence the perception-

[59]

• The first factor is status of the person. A person is perceived not by his

actual traits but by the status he has. Thus a person having high status

may be perceived to have many desirable qualities.

• The second factor is the visibility of traits. There are many traits which

are not visible on surface, such as, honestly, loyalty, etc. In such

cases, evaluation is to be made on the basis of one’s own experience

which may not be correct. The closeness among people provides

opportunities to perceive the traits correctly which, however, are not

always available.

12. Situational Factors

Situational factors also affect the perception. There may be structural

characteristics of the place indicating the characteristics of person occupying

it. Thus a person is likely to be perceived by a place. For example, a person

is perceived differently if he meets with other in a five star hotel as compared

to an ordinary place. This may be the main reason for having lavishly

furnished offices or showrooms. In many cases, these may not reflect the

true value but may only distort people’s perception who might be dealing with

them. And it would affect the way they behave with one another.

Attribution Theory

Observation Interpretation Attribution of

cause

[60]

Attribution theory has been proposed to develop explanations of the

ways in which we judge people differently, depending on what meaning we

attribute to a given behavior.

Basically, the theory suggests that when we observe an individual’s

behavior, we attempt to determine whether it was internally or externally

caused. That determination, however, depends largely on three factors: (1)

distinctiveness, (2) consensus, and (3) consistency.

First, let’s clarify the difference between internal and external causation

and then we will elaborate on each of the three determining factors.

• Internally caused behaviors are those that are believed to be under the

personal control of the individual.

• Externally caused behavior is seen as resulting from outside causes;

that is, the person is seen as having been forced into the behavior by

the situation.

E.g. - If one of your employees is late for work, you might attribute his

lateness to his partying into the wee hours of the morning and then

oversleeping. This would be an internal attribution. But if you attribution his

arriving late to a major automobile accident that tide up traffic on the road that

Individual behavior

Distinctiveness

Consensus

Consistency

External

Internal

High

Low

External

Internal

High

Low

Internal

External

High

Low

[61]

this employee regularly uses, then you would be making an external

attribution.

Distinctiveness refers to whether an individual displays different

behavior in different situations.

E.g.: Is the employee who arrives late today also the source of

complaints by co-workers for being a “goof-off”? What we want to know is

whether this behavior is unusual. If it is, the observer is likely to give the

behavior an external attribution. If this action is not unusual, it will probably be

judged as internal.

Consensus - If everyone who is faced with a similar situation responds

in the same way, we can say the behavior shows consensus.

E.g.: Our late employee’s behavior would meet this criterion if all

employees who took the some route to work were also late. From an

attribution perspective, if consensus is high, you would be expected to give an

external attribution to the employee’s tardiness, whereas is other employees

who took the same route made it to work on time, your conclusion as to

causation would be internal.

Consistency - Finally, an observer looks for consistency in a person’s

actions.

E.g.: Does the person respond the same way over time? Coming in 10

minutes late for work is not perceived in the same way for the employee for

whom it is an unusual case (she hasn’t been late for several months) as it is

for the employee for whom it is part of a routine pattern (she is regularly late

two or three times a week). The more consistent the behavior, the more the

observer is inclined to attribution it to internal causes.

[62]

Errors / Bias

• Fundamental attribution error- The tendency to underestimate the

influence of external factors and overestimate the influence of internal

factors when making judgments about the behavior of others.

• Attribution theory was developed largely based on experiments on

Americans and western Europeans.

• Self- serving bias- The tendency for individuals to attribute their own

successes to internal factors while putting the blame for failures on

external factors.

Specific Applications in Organizations

As a Manager one must appraise their employee’s performances,

evaluate how much effort co-workers are putting into their jobs. When a new

person joins a work team, he or she is immediately “sized up” by the other

team members. In many cases, these judgments have important

consequences for organization. Let’s briefly look at a few of the more obvious

applications.

Employment Interview

A major input into who is hired and who is rejected in any organization

is the employment interview. It’s fair to say that few people are hired without

an interview. But the evidence indicates that interviewers make perceptual

judgment among interviewers is often poor; that is, different interviewers see

different things in the same candidate and thus arrive at different conclusions

about the applicant.

Interviewers generally draw early impressions that become very quickly

entrenched. If negative information is exposed early in the interview, it tends

to be more heavily weighted than if that same information comes out later.

Studies indicate that most interviewers’ decisions change very little after the

first four or five minutes of the interview. As a result, information elicited early

[63]

in the interview carries greater weight than dose information elicited later, and

a “good applicant” is probably characterized more by the absence of

unfavorable characteristics than by the presence of favorable characteristics.

Importantly, who you think is a good candidate and who I think is one may

differ markedly. Because interviews usually have so little consistent structure

and interviewers vary in terms of what they are looking for in a candidate,

judgments of the same candidate can vary widely. If the employment interview

is an important input into the hiring decision-and it usually is-you should

recognize that PERCEPTUAL factors influence who is hired and eventually the

quality of an organization’s labor force.

Performance Expectations There is an impressive amount of evidence that demonstrates that

people will attempt to validate their perceptions of reality, even when those

perceptions are faulty. This characteristic is particularly relevant when we

consider performance expectations on the job.

The terms self-fulfilling prophecy or Pygmalion effect have evolved to

characterize the fact that people’s expectations determine their behavior. In

other words, if a manager expects big things from his people, and when he

conveys that he perceives them to be more capable, they’re not likely to let

him down because of the trust the manager has shown. Similarly, if a

manager expects people to perform minimally, they’ll tend to behave so as to

meet those low expectations. The result then is that the expectations become

reality.

An interesting illustration of the self-fulfilling prophecy is a study

undertaken with 105 soldiers in the Israeli defense force who were taking a

156-week combat command course. The four course instructors were told that

one-third of the specific incoming trainees had high potential, one-third had

normal potential, and the potential of the rest was unknown. The results

confirmed the existence of a self-fulfilling prophecy. Those trainees whom

instructors were told had high potential scored significantly higher on objective

[64]

achievement tests, exhibited more positive attitudes, and held their leader in

higher regard than did the other two groups. The instructors of the supposedly

high-potential trainees got better result from them because the instructors

expected it!

Performance Evaluation

Although the impact of performance evaluation on behavior will be

discussed fully in chapter 16, it should be pointed out here that an employee’s

performance appraisal is very much dependent on the perceptual process. An

employee’s future is closely tied to his or her appraisal-promotions, pay

raises, and continuation of employment is among the most obvious work.

Although the appraisal can be objective (e.g., a salesperson is appraised on

how many dollars of sales she generates in her territory), many jobs are

evaluated in subjective terms. Subjective measures are easier to implement,

they provide managers with greater discretion, and many jobs do not readily

lend themselves to objective measures. But subjective measures are, by

definition, judgmental the evaluator forms a general impression of an

employee’s work. To the degree that managers use subjective measures in

appraising employees, what the evaluator perceives to be good or bad

employee characteristics or behaviors will significantly influence the outcome

of the appraisal.

Employee Effort

A individual’s future in an organizational is usually not dependent on

performance alone. In many organizations, the levels of an employee’s effort

are given high importance. Just as teachers frequently consider how hard you

try in a course as well as how you perform on examinations, so often do

managers. An assessment of an individual’s effort is a subjective judgment

susceptible to perceptual distortions and bias. If it is true, as some claim, that”

more workers are fired for poor attitudes and lack of discipline than for lack of

ability,” then appraisal of an employee’s effort may be a primary influence on

his or her future in the organization.

[65]

Employee Loyalty

Another important judgment that managers make about employee is

whether or not they are loyal to the organization. Despite the general decline

in employee loyalty noted in chapter 1, few organizational appreciate it when

employees, especially those in the managerial ranks, openly disparage the

firm. Furthermore, in some organizational if the word gets around that an

employee is looking at other employment opportunities outside the firm, that

employee may be labeled as disloyal and so may be cut off from all future

advancement opportunities. The issue is not whether organization are right in

demanding loyalty, the issue is that many do, and that assessment of an

employee’s loyalty or commitment is highly judgmental. What is perceived as

an employee who questions a top-management decision may be seen as

disloyal by some yet caring and concerned by other. As a case in point,

whistleblowers- individuals who report unethical practices by their employer

to outsider typically act out of loyalty to their organizational but are perceived

by management as troublemakers.

[66]

Chapter-5

PERSONALITY

Definition Personality is the sum total of ways in which an individual reacts and

interacts with others. According to JAMES, "It is better to consider individual aspects of

personality as bricks and the total personality as a house made up of bricks”.

Gordon Allport (1897-1967) - “Father of Personality Theory”, was very

much a trait theorist and believed in the individuality and uniqueness of the

person and that people have consistent personalities. Allport believed that

through autobiographies, letters and diaries an understanding of an

individual’s personality could be gained.

Allport believed that each person had traits of various types:

• Individual: traits possessed by one person

• Common: traits possessed by many people

• Cardinal traits: One trait that dominates the person

• Central traits: small number of traits important traits that may affect

many behaviors

• Secondary traits: many consistent traits which are not often exhibited

• Motivational traits: Very strongly felt traits

• Stylistic traits: Less strongly felt traits.

According to Allport any definition of Personality should take into

account the following -

1. Omnibus (should cover very diverse aspects),

[67]

2. Integrative and Configurational,

3. Hierarchical aspects,

4. Distinctiveness,

5. Adjustment aspects,

DETERMINANTS OF PERSONALITY

1) Biological

• hereditary factors

• physical attributes

• emotional attributes

• intellectual attributes

• inner thinking

processes

2) Family

• early up bringing

• family members

• Immediate

Neighborhood

3) Institutions

• School

• Religion

• Professional and

academic

associations

• Place of work

4) Social Factors

• friends

• colleagues at work

• reference groups

• social groups

• ethical values

• cultural factors -

community, culture

and traditions,

sentiments and

superstitions.

5) Situational factors.

• media

• practical environment

• turning points in life

• economic factors

6) Personal factors.

• Close friends

• enemies

• bosses

• religious leaders

• society leaders

• mentors

Determinants of Personality The study of determination of personality forms an empirical approach

to personality development. Various determinants of personality have been

characterized in several ways. McClelland has characterized them into four

fundamental theories – traits (acquired propensity to respond) , Schema

[68]

(beliefs, frame of reference, major orientations, ideas, and values), motives

(inner drives), and self Schema (observation of one’s own behavior).Similarly,

Scott and Mitchell have classified various determinants into hereditary, groups

and cultural factors, both physiological and psychological which play important

role in human personality. These factors are interrelated and interdependent.

However, for the purpose of analysis, these can be classified into four broad

categories- biological, family, cultural and situational. Such classification is

extremely helpful in understanding personality of people and their behavior in

the organizations.

1. Biological Factors

The general biological characteristics of human biological system

influence the way in which human being tends to sense external event data.

Interpret, and respond to them. The study of the biological contribution to

personality can be divided into three major categories – heredity, brain and

physical stature.

(i) Heredity. Heredity is transmission of the qualities from ancestors to descendents

through a mechanism lying primarily in the chromosomes of the germ

cells. Heredity predisposes to certain physical, mental, and emotional

states. It has been established through research on animals that

physical and psychological characteristics can be transmitted through

heredity. However such a conclusive proof is not available for human

beings, though psychologists and geneticists have drawn the

conclusion that heredity plays an important role in personality.

(ii) Brain The second biological factor is brain which is supposed to play role in

personality. The structure of brain determines personality, though no

conclusive proof is available so far about the role of brain in personality

formation.

[69]

(iii) Physical features The third biological factor determining personality formation is physical

characteristics and the rate of maturation. An individual’s external

appearance, which is biologically determined, is an important

ingredient of personality. In a narrow sense, personality is referred to

physical features of a person. However, it is not true if we take a

comprehensive view of personality. A person’s physical features have

some influence on his personality because he will affect influence on

others and in turn, will affect his self-concept. Mussen observes that ‘a

child’s physical characteristics may be related to his approach to the

social environment, to the expectancies of others, and to their reactions

to him. These, in turn, may have impacts on personality development.

Similarly, the rate of maturation also affects personality because

persons of varying maturity are exposed to different physical and social

situations and activities differently.

2. Family and Social Factors:

The development of the individual proceeds under the influence of

many socializing forces and agencies, from nuclear family to more

distant or global groupings. Family and social groups have most

significant impact on personality development. These groups have their

impact through socialization and identification processes.

(i) Socialization Process:

Socialization is a process by which an individual infant acquires, from

the enormously wide range of behavioral potentialities that are open to

him at birth. Those behaviors that are customary and are acceptable

according to the standards of his family and the social groups

Socialization process starts with initial contact between mother and her

[70]

new infant. Later on other members of the family and the social groups

influence the socialization process.

(ii) Identification Process : The Identification Process occurs when a person tries to identify

himself with some person whom he feels ideal in the family. Generally

a child in the family tries to behave like his father or mother. The

identification process can be examined from three different

perspectives First; Identification can be viewed as the similarity of

behavior (including feelings and attitudes) between child and the

model. Second Identification can be looked as the child’s motives or

desires to be like the model. Third it can be viewed as the process by

which the child actually takes on the attributes of the model.

Socialization and identification process is influenced by home

environment, family members and social groups.

(iii) Home environment:

Total Home environment is a critical factor in personality development.

For example children will markedly institutional upbringing or children in

a cold, unstimulating have a much greater potential to be emotionally

maladjusted that children rose by parents in a warm, loving, and

stimulating environment. The key variable is not the parents but rather

the type of environment that is generated by the child.

Family Members:

Parents and other family members have a strong influence on the

personality development of the child. Parents have more effect on the

personality development than other members of the family. The study

by Newcomb showed the high correlation between attitudes of parents

and children with a further consistency patterns. The relationship

between parents and children was higher than that between the

[71]

children and their teachers. Besides parents, siblings (brothers and

sisters) also contribute to personality.

Social Groups: Besides a person’s home environment and family members, there are

other influences arising from the social placement of the family as the

person is exposed to agencies outside the home, particularly the

school, friendship, and other work groups. Similarly, socio- economic

factors also affect personality development.

3. Cultural Factors Culture is the underlying determinant of human decision –making. It

generally determines attitudes towards independence, aggression,

competition, and co- operation. Each culture expects and trains its

members to behave in the ways that are acceptable to the group. To a

marked degree, the child’s cultural group defines the range of

experiences and situations he is likely to encounter and the values and

personality characteristics that will be reinforced and hence learned.

Despite the importance of cultural contribution to the personality, a

linear relationship cannot be established between personality and a

given culture. One problem stems from the existence of numerous

subcultures within a given culture. Thus workers are not influenced by

the same culture as managers are.

4. Situational Factors:

Apart from the biological, sociological, and the cultural factors, situational

factors also determine personality development. The S-O-B model of

human behavior considers the situations under which the behavior is

occurring. Migram’s research study suggests very powerful role the

situation may play in human personality. On the basis of his research

study, he states that ‘a situation exerts an important press on the

individual. It exercises constraints and may provide much the kind of

[72]

person a man is, as the kind of situation in which he is placed, that

determines his actions. For example a worker whose personality

history suggests that he had need of power and achievement, may

become frustrated and react apathetically if he is put in a

bureaucratized work situation. Thus he may appear lazy and trouble

maker though his personality history may suggest that he is very hard

working and striving to get ahead. Thus because of changed situation,

his personality composition changes. This aspect is very important for

organizational behavior because a manager has control over the

organizations situation.

THEORY X and Y Douglas Mc Gregor came out with his boss-subordinate relationship, in

his classic book "The Human Side of Enterprise", which is a milestone in the

history of Organization Behavior that was published in 1957. He established

that the set of attitude the boss holds about the subordinate effectively

influences and molds the performance of the subordinate. Whatever the boss

thinks that the subordinate is, the subordinate becomes like that. To illustrate

his theory, he characterized two sets of bosses with two set of attitudes. First

set having mistrust on subordinates and expecting that they would not work

unless they are cornered. He called this as the boss with Theory X attitudes.

Second Set-Theory bosses who believed that the subordinates are normal

people who will work if they are enabled. Theory X bosses tend to affect their

subordinates performance in theory X ways. But the subordinates of Theory Y

boss tend to be high performers with healthy attitude towards their work and

the organization.

X set of Attitudes

• An average person is idle by nature and works as little as possible.

• People lack ambition and will not work unless they are cornered.

• People are passive and resist any Change.

[73]

• People normally avoid responsibility.

• People are incapable and will have to be guided very closely.

• People are self centered and indifferent to organizational goals.

• Suspicious

• External control.

• Directing and controlling types of boss.

• The boss is only task oriented.

Y set of Attitudes

• Work is a natural expenditure of energy like playing.

• People have normal ambition and have normal degree of motivation for

work.

• People are active and (with proper Change) accept change.

• If right conditions are created they will accept and even seek

responsibility.

• Skills are widely distributed amongst any population and people are

happy to exercise their skills.

• Perhaps it is because of past experience.

• If the proper conditions exist people will trust

• Internal (or) self control

• Supportive style.

• Has Concern for both task and people.

[74]

Theory Z Shall we have an introduction about Theory Z before presenting

the tabular content?

Characteristics Theory A (American)

Theory J (Japanese)

Theory Z (Modified)

Evaluation and

promotion of the

personnel

Very fast; individuals

who are not

promoted rapidly

often seek

employment

elsewhere.

Very slow; big

promotions are

generally not given

out for years.

Slower; more

emphasis is given

to training and

evaluations then to

promotion.

Career paths Very specialized;

people tend to stay in

one area

(accounting, finance,

sales, etc.) for their

entire career.

Very general;

personnel are

rotated from one

area to another and

become familiar

with all areas of

operations.

More general;

emphasis is on job

rotation and more

broadly based

training in order to

give the person a

better feel for the

entire organization.

Decision making Carried out by the

individual manager.

Carried out via

group decision

making.

Carried out with

more emphasis on

group participation

and consensus.

[75]

Control Very explicit; people

know exactly what to

control and how to do

it.

Very implicit and

informal; people rely

heavily on trust and

goodwill.

More attention to

informal control

procedures

coupled with

explicit

performance

measures.

Responsibility Assigned on an

individual basis.

Shared collectively by

the group.

Assigned on an

individual basis.

Concern for the

personnel

Organization is

concerned primarily

with the worker’s work

life only.

Organization is

concerned with the

whole life of the

worker, business and

social.

Organization’s

Concerned is

expanded to

include more

aspects of the

worker’s whole life.

Application in Organization

Knowledge of emotions / personality can help in better understanding

of –

• Ability and selection

• Decision making

• Motivation

• Leadership

• Interpersonal conflict and

• Deviant workplace behavior

• Suitability of one’s personality to the organization’s culture

Ability and selection

Ability and selection people who know their own personality and are

good at reading others’ emotions may be more effective in their jobs. That, in

[76]

essence, is the theme underlying recent research on emotional intelligence.

Emotional intelligence (EI) refers to an assortment of non cognitive skills,

capabilities, and competencies that influence a person’s ability to succeed in

coping with environmental demands and pressures.

It’s composed of five dimensions:

• Self-awareness- The ability to be aware of what you’re feeling.

• Self-management- The ability to manage one’s own emotion and

impulses.

• Self-motivation- The ability y to persist in the face of setbacks and

failures.

• Empathy- The ability to sense how other is feeling.

• Social skills- The ability to handle the emotion of others.

Several studies suggest EI may play an important role in job

performance. For instance, one study looked at the characteristics of Bell lab

engineers who were rated as stars by their peers. The scientists concluded

that stars were better at relating to others. That is, it was EI, not academic IQ

that characterized high performers. The implications from the initial evidence

on EI are that employers should consider it as a factor in selection, especially

in jobs that demand a high degree of social interaction.

Decision making

Decision Making have downplayed, or even ignored, the role of

anxiety, fear, frustration, doubt, happiness, excitement, and similar emotions.

Yet it’s naïve to assume that decision choices aren’t influenced by one’s

feeling at a particular moment. Given the same objective data, we should

expect that people may make different choices when they’re angry and

stressed out than when they’re calm and collected. Negative personality can

result in a limited search for new alternatives and a less vigilant use of

information. On the other hand, positive emotion can increase problem solving

and facilitate the integration of information.

[77]

You can improve your understanding of decision making by

considering “the heart” as well as “the head.” People use emotion as well as

rational and intuitive processes in making decisions. Failure to incorporate

personality in to the study of decision processes will result in an incomplete

(and often inaccurate) view of the process.

Motivation Motivation theories basically propose that individuals are motivated to

the extent that their behavior is expected to lead to desired outcomes. The

image is that of rational exchange: the employee essentially trades effort for

pay, security, promotions, and so forth.” But people aren’t cold, unfeeling

machines. Their perceptions and calculations of situations are filled with

emotional content that significantly influences how much effort they exert.

Moreover, when you see people who are highly motivated in their jobs, they

are emotionally committed people who are engaged in their work “become

physically, cognitively, and emotionally immersed in the experience of activity,

in the pursuit of a goal.” If we focus only on rational calculations of

inducement and contributions, we fail to be able to explain behavior such as

the individual who forgets to have dinner and work late into the night, lost in

the thrill of her work.

Leadership

Leadership the ability to lead other is a fundamental quality sought by

organizations. Effective leaders almost all rely on the expression of feelings to

help convey their messages. In fact, the expression of emotional in speeches

is often the critical elements that result in individuals accepting or rejecting a

leader’s message. “When leaders feel excited, enthusiastic, and active, they

may be more likely to energize their subordinates and convey a sense of

efficacy, competence, optimism, and enjoyment.” Politicians have learned to

show enthusiasm when talking about their chances for winning an election,

even when polls suggest otherwise.

[78]

Corporate executives know that emotional content is critical if

employees are to buy into their vision of their company’s future and accept

change. When new visions are offered, especially when they contain distant

or vague goals, change is often difficult to accept. So when effective leaders

want to implement significant change, they rely on “the evocation, framing,

and mobilization of personality. By arousing emotion and linking them to an

appealing vision, leaders increase the likelihood that managers and

employees alike will accept change.

Interpersonal conflict

Few issues are more interwined with personality than the topic of

interpersonal conflict. Whenever conflicts arise, you can be fairly certain that

personalities are also surfacing. A manager’s success in trying to resolve a

conflict, in fact, is often largely due to his or her ability to identify the emotional

elements in the conflict and to get the conflicting parties to work through their

personality. And the manager, who ignores the emotional element in conflicts,

focusing singularly on rational and task concerns, is unlikely to be very

effective in resolving those conflicts.

Deviant workplace behaviors

Negative personality can lead to a number of deviant workplace

behaviors. Anyone who has spent much time in an organization realizes that

people often engage in voluntary actions that violate established norms and

that threaten the organizational, its members, or both. These actions are

called employee deviance. They fall into categories such as production (e.g.,

leaving early, intentionally working slowly); property (e.g., stealing, sabotage);

political (e.g., gossiping, blaming co-workers); and personal aggression (e.g.,

sexual harassment, verbal abuse). Many of these deviant behaviors can be

traced to negative personality.

[79]

For instance, envy is an emotion that occurs when you resent someone

for having something that you don’t which you strongly desire. It can lead to

malicious deviant behaviors. Envy, for example, has been found to be

associated with hostility, backstabbing and other forms of political behavior,

negatively distorting others’ successes, and positively distorting one’s own

accomplishments.

Hence to conclude, studying about personality helps us understand the employees’

behaviour and the relationship it has with their personality attributes. An employee’s

personality must fit the organizational environment, otherwise, hiring an employee

who has a negative personality will not only affect him/her, but also others in the

team/department, the external stakeholders like customers, suppliers, etc, depending

upon the nature of the job, and the organization as a whole.

[80]

CHAPTER 6

ATTITUDES

Values

Values are 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. E.g. Is capital

punishment right or wrong? If a person likes power is it good or bad? Answers

to these questions are based on the values.

Importance of Values

Values are important to

• the study of organizational behavior

• for understanding of attitudes

• for understanding motivation and

• Because they influence our perceptions.

• And they influence once behaviour

Values generally influence attitudes and behavior. Suppose that you

enter an organization with the view that allocating pay on the basis of

performance is right, while allocating pay on the basis of seniority is wrong or

inferior. How are you going to react if you find that the organization you have

just joined rewards seniority and not performance? You’re likely to be

disappointed and this can lead to job dissatisfaction and the decision not to

exert a high level of effort since “it’s probably not going to lead to more

money, anyway.”

Would your attitudes and behavior be different if your values aligned

with the organization’s pay policies? Hence the value system an individual

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possesses and the practices prevailing in the workplace definitely are 2

factors which will affect any employee’s behaviour.

Types of Values

• Terminal values are desirable end-states of existence; the goals that a

person would like to achieve during his or her lifetime. (Prosperous life)

• Instrumental values are preferable modes of behavior or means of

achieving one’s terminal values.(Hardworking)

ATTITUDES- Definition Attitudes are, “Beliefs /feelings/action tendencies of an individual or

group towards objects, ideas and people”- Stephen P. Robbins. Attitudes are, "Evaluative judgments or opinions concerning objects /

people / events" - Blum and Naylor.

Components of Attitude All attitudes have 3 components –

1) The Cognitive element (belief) - high belief for example, considering

thieving as bad act.

2) Affective (feeling) component – one dislikes Mr. X who is a thief.

3) Behavioral component (action) - therefore I will avoid interacting with Mr. X.

Features of Attitude

1) Predisposition to respond in a particular manner.

2) Attitude may be acquired by birth or learnt with experience.

3) The acquiring process is so subtle that the individual may not know it.

4) High intelligence does not ensure correct attitude.

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5) Attitudes may be rational or irrational.

6) Prejudices are attitudes - strong likes are attitudes - opinions are attitudes.

7) Attitudes may change.

8) Attitudes tend to result in behavior or action.

9) Irrespective of status, all people hold attitude.

10) Attitudes can fall anywhere from very favorable to very unfavorable.

Determinants of Attitude

1) Biological

• hereditary factors

• physical attributes

• emotional attributes

• intellectual attributes

• inner thinking

processes

2) Family

• early up bringing

• family members

• Immediate

neighbourhood

3) Institutions

• School

• Religion

• Professional and

academic

associations

• Place of work

4) Social Factors

• friends

• colleagues at work

• reference groups

• social groups

• ethical values

• cultural factors -

community, culture

and traditions,

sentiments and

superstitions.

5) Situational factors.

• media

• practical environment

• turning points in life

• economic factors

6) Personal factors.

• Close friends

• enemies

• bosses

• religious leaders

• society leaders

• mentors

Attitude Change (Factors influencing Change of attitudes by Howeland)

1) How strong and deep is the attitude - Centrality of attitude.

2) How well is it related to other attitude?

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3) The subject Matter of Attitude-some subjects are difficult to change like

religion.

4) Situational factors

5) Utility Aspects

6) How much attitude is publicized - If it is well publicized it is difficult to

change.

7) Characteristics of change agent - A boss wants to correct an attitude of a

subordinate. If a boss is genuine type the subordinate will agree to change.

Otherwise he will justify his existing attitude.

8) Influence of friends.

9) Use of fear.

10) Providing new information.

Measurement of Attitudes

1) The widely used scale was developed by Likert Five point scale ranging

from outstanding, very good, good, average, bad. A person has to give his

rating each question by ticking any one of the five points. By totalling up all

the responses it is possible to get a fair idea. It is easy to use and easy to

evaluate.

2) Thrustones Piles Scheme Piles means a group of statements. Thurstones

provided group of statements as possible responses to each question. The

advantage here is a person can express himself in greater detail. But it is very

tedious and could be confusing at times.

3) Patrick Smith Developed some special scales for measuring job related

attitude (the earlier to apply to many general situation also). Smith developed

JDI (Job Descriptive Index) which is exclusively used to measure attitudes like

job satisfaction, job performance, etc

[84]

Job satisfaction Definition

Job Satisfaction has been variously defined, but the simple meaning of

the concept denotes employee's attitude towards his job. (Work attitude)

What is Job Satisfaction?

1. Job satisfaction is favorableness or unfavorableness with which employees

view their work.

2. A worker is not dissatisfied with his job, it does not mean that he is fully

satisfied.

3. He may be satisfied with his work, but may be dissatisfied with the work

environment.

4. Job satisfaction is the result of so many attributes.

5. Job satisfaction may refer to a person or a group.

6. There is correlation between job satisfaction and life satisfaction at home

and in the community. They may be positive or negative.

7. Job satisfaction and Morale - some consider both as same and some not.

Main Characteristics of Job satisfaction

1. Job satisfaction is conditioned by the emotional tone of the employees.

2. Job satisfaction is closely related to home and community life which is

known as 'spill over effect' meaning that one spills over the other.

3. Employees may compensate low job satisfaction by attempting to increase

high life satisfaction and this is known as 'compensatory effect'.

4. Job satisfaction is measurable by determining employees sense of

importance i.e., of some of his important job variables.

[85]

Determinants of Job satisfaction

1. Characteristics of the Individual

* Individual Differences

* Age

* Educational level and Intelligence

* Sex/Gender.

2. Characteristics of Job

* Occupational level

* Job content

* Leadership

* Pay and Promotional opportunities

* Social interaction and working in a group

* Security of the job.

Job satisfaction and other variables

1. Job satisfaction and turnover

2. Job satisfaction and absenteeism

3. Job satisfaction and productivity

Measurement of Job satisfaction

1. Job satisfaction is a generalized attitude of three areas such as specific job

satisfaction, individual adjustment and group relationships.

2. To measure job satisfaction, the techniques of attitude measurement can

be applied.

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3. Some have tried to measure job satisfaction through production,

hypothesizing positive relationship between the production and job

satisfaction.

4. But production cannot in all cases be the index of job satisfaction.

5. In order to measure job satisfaction the ground level of satisfaction of the

worker in his life should be measured first.

6. In order to study job satisfaction scientifically and to determine the factors

influencing it, it is essential to first determine the general indices of job

satisfaction.

7. Job satisfaction of a person can be measured by considering the factors

related to work and secondly by analyzing the factors which give satisfaction

in life as a whole.

An Application: Attitude Surveys

The preceding section indicates that knowledge of employee attitude

can be helpful to managers in attempting to predict employee behavior. But

how does management get information about employee attitude? The most

popular method is through the use of attitude surveys. Typically, attitude surveys present the employee with a set of

statement or questions. Ideally, the items are tailored to obtain the specific

information that management desires. An attitude score is achieved by

summing up responses to individual questionnaire items. These score can

then be averaged for job groups, departments, divisions, or the organization

as a whole.

Result form attitude surveys can frequently surprise management. For

instance, managers at the heavy-duty division of ABC remanufacturing

thought everything was great. Since employees were actively involved in

[87]

division decisions and profitability was high within the entire company,

management assumed morale was high. To confirm their beliefs, they

conducted a short attitude survey. Employees were asked if they agreed or

disagreed with the following statement: (1) At work, your opinions count; (2)

those of you who want to be a leader in this company have the opportunity to

become one; and (3) in the past six months someone has talked to you about

your personal development.

In the survey, 43 percent disagreed with the first statement was

astounded. How could this be? The division had been holding shop floor

meeting to review the number every week for more than 12 years. And most

of the managers had come up through the ranks. Management responded by

creating a committee made up of representatives from every department in

the division and all three shifts. The committee quickly found that there were

lots of little things the division was doing that were alienating employees. Out

of this committee came a large number of suggestions that, after

implementation, significantly improved employee’s perception of their

decision-making influence and their career opportunities in the division.

Using attitude surveys on a regular basis provides managers with

valuable feedback on how employees perceive their working conditions.

Policies and practices that management views as objective and fair may be

seen as inequitable by employees in general or by certain groups of

employees. That these distorted perceptions have led to negative attitude

about the job and organization should be important to management. This is

because employee behaviors are based on perceptions, not reality.

Remember, the employee who quits because she believes she is underpaid-

when, in fact, management has objective data to support that her salary is

highly competitive-is just as gone as if she had actually been underpaid the

use of regular attitude surveys can alert management to potential problems

and employee’ intentions early so that action can be taken to prevent

repercussions.

[88]

Attitude and Workforce Diversity

Managers are increasingly concerned with changing employee attitude

to reflect shifting perspectives on racial, gender, and other diversity issues. A

comment to a co-worker of the opposite sex, which 20 years ago might have

been taken as a compliment, can today become a career-limiting episode. As

such, organizations are investing in training to help reshape attitude of

employees.

A survey of U.S organizations with 100 or more employee found that

47 percent of them sponsored some sort of diversity training. Some examples:

Police officers in Escondido, California, receive 36 hours of diversity training

each year. Pacific Gas and Electric co. requires a minimum of four hours of

training for its 12,000 employees. The federal aviation administration

sponsors a mandatory eight-hour diversity seminar for employee of its

western pacific region.

What do these diversity programs look like and how do they address

attitude change? They almost all include a self-evaluation phase. People are

pressed to examine themselves and to confront ethnic and cultural

stereotypes they might hold. Then participants typically take part in group

discussions or panels with representative from diverse groups.

Additional activities designed to change attitude include arranging for

people to do volunteer work in community or social service centers in order to

meet face-to-face with individual and groups from diverse backgrounds and

using exercises that let participants feel what it’s like to be different. For

example, when participants see the film eye of the Beholder, in which people

are segregated and stereotyped according to their eye colour, participants see

what it’s like to be judged by something over which they have no control.

[89]

Chapter 7 MOTIVATION

Definition Koontz defined Motivation as, “Anything that induces a person to act in

a desired manner”.

Stephen P. Robbins defined Motivation as, “Willingness to exert high

level of performance to reach organizational goal conditioned by the ability of

such efforts to satisfy personal needs”.

Fred Luthans defined Motivation as, “Motivation is a process that

starts with a physiological or psychological deficiency or need that activates a

behavior or a drive that is aimed at a goal or incentive”.

Motivation is the process of channelling a person's inner drivers so that

he wants to accomplish the goals of the organization.

Importance of Motivation

1) High Performance Level

2) Low Employee Turnover, Absenteeism

3) Acceptance of Organizational changes

Determinants of Motivation

1) The Individual (Aim, Need, Values)

2) Organizational Climate (Economic conditions, Position, Structures, Conflict,

Hawthorn experience)

3) Exogenous Variables (Inside/Outside Factory. Culture, Customers, images,

Society induce a person to perform a work in an expected Manner.).

[90]

Theories: The theoretical development of work motivation

Theories:

Maslows Need Hierachy Theory (Contribution of Abraham Maslow):

Abraham Maslow outlined the elements of an over all theory of

motivation. He identified that a person's motivational needs could be arranged

in a hierarchical manner. In essence, he believed that once a given level of

need is satisfied, it no longer motivates an individual.

Maslow’s Need Hierarchy Of Needs:

CONTENT THEORIES PROCESS THEORIES CONTEMPORARY THEORIES

WORK MOTIVATION

Human Relations

Maslow

Hertzberg

Alderfer

Lawin and Tolman

Vroom

Porter and lawler

lawler

Festinger and Homans

Adams

Heider, de charmes, and Bem

Kelley and Rotter

Scientific Management 1900

Present

[91]

Maslow identified five levels in his need hierarchy. They are as follows:

1. Physiological Needs:

These are the primary needs of individuals, such as the need for food,

drink, shelter and the relief from or avoidance of pain. In the work place, such

needs are represented by concern for salary and basic working conditions like

heat, air conditioning and eating facilities.

2. Safety and Security:

When physiological needs are satisfied minimally, the next higher level

of needs safety and security needs assume importance as motivators. These

are reflected in the need for freedom from threat protection against danger

and accidents, and the security of the surroundings. In a work place, the

individuals expect safe working conditions, salary increase, and job security,

fringe benefits like health and retirement benefits.

3. Social Needs:

After the minimum satisfaction of physiological needs, social needs

become prominent. This is concerned with needs like friendship, affiliation,

ESTEEM NEED

SOCIAL NEED

SELF-ACTUALISATION NEED

SECURITY NEED

BASIC NEED

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and interaction with other people. In organizations, these are available by

interaction with fellow workers, employee - centered supervision and an

acceptance by others.

4. Esteem Needs:

The next level, focus on the need for self-respect, respect from others

for one's accomplishments and a need to develop a feeling of self-confidence

and prestige. The successful attainment or accomplishment of a particular

task, recognition by others of the person's skills and abilities to do effective

work and the use of organizational titles are examples.

5. Self- actualization:

It is the highest level of the need hierarchy. It is concerned with the

fulfilling one self by maximizing the use of abilities, skills and potential.

People with dominant self-actualization seek work assignments that challenge

their skills and abilities permit them to develop and to use creative or

innovative approaches and provide for general advancement and personal

growth.

Contribution of Abraham Maslow

1. Maslow identified the above 5 levels of needs.

2. He said that they arise to motivate one after the other as per the order

identified by him.

3. Lower needs motivate a person in the first stage. When that is satisfied it

gives rise to the next higher needs and so on.

4. A need which is satisfied is not a motivation (Till it arises next).

[93]

A Hierarchy of Work Motivation:

Merits:

1. Maslow identified the levels correctly.

2. He was also right in classifying them as lower to higher needs.

3. He also identified the temporary nature of motivation

4. He recognized need-action-satisfaction in his theory.

ESTEEM NEED Titles, status symbols, promotions

SOCIAL NEED Formal and informal work groups or teams

SELF-ACTUALISATION NEED Personal growth, realization of

potential

SECURITY NEED Seniority plans, union, health insurance, employee

assistance, plans, pension

BASIC NEED Pay

[94]

Demerits:

1. Needs do not arise in that order. E.g. Rich man goes in search of

food when he becomes hungry.

2. He did not consider individual differences. E.g. Artists give low

preference to Lower Need.

Herzberg 2 Factor Theory of Motivation (or) Motivation Hygiene Theory:

Fredrick Herzberg extended the work of Maslow and developed a

specific content theory of work motivation. He and his associates conducted a

widely reported motivational study on about 200 accountants and Engineers

employed by firm in and around Pittsburgh, Pennsylvania.

Study - 2 Questions:-

(1) When did you feel particularly good about your job - What turned you on?

(2) When did you feel exceptionally bad about your job - What turned you off?

The responses obtained from this critical incident method were

interesting and fairly consistent. Tabulating the good and bad feelings

Herzberg concluded that there were 2 categories of needs essentially

independent of each other affecting behavior in different ways.

According to Herzberg the 2 categories of factors are-

Set-1

Hygiene Factors (or)

Set - 2

Motivation Factor (or)

Maintenance Factors (or) Satisfiers (or)

Dissatisfies

Hygiene Factors: If they are provided no improvement in performance. If they are

withdrawn, they demotivate performance. These factors are related to the

periphery of the job. Therefore they are called contexted factors. E.g.: Welfare

[95]

facilities, Job security, Company rules, Working conditions, pay, Supervisors

quality, interpersonal relationship.

Motivation Factors: If they are present, performance improves. If they are not present,

performance is negatively affected. Since these are connected to a job, these

are called content factors. E.g.: Achievement, Recognition Possibility of

growth, challenges.

Merits:

• He identified the 2 sets of factors which are very valuable.

• He linked productivity to Motivation.

• Practical and Easy to understand.

• Not a pure psychology theory.

• Applicable to modern organizations.

Demerits:

• Difficult to identify the factors in various types of organizations.

• Herzberg himself has classified pay, status and interpersonal

relationships as maintenance factors. Whereas they are important

motivators.

• His classification of the factors is wrong. E.g. Supervisors quality is a

motivation factor.

• The whole of motivation cannot be explained in 2 sets of factors.

Compare and Contrast: ------------------------------------------------------------------------------------------------------- MASLOW HERZBERG ------------------------------------------------------------------------------------------------------- 1. Descriptive Prescriptive 2. Highly Conceptual Practical applicability 3. 5 Layers/Levels 2 set of factors

[96]

4. pay is a motivator No. it is a Hygiene factor (It satisfies 1st 4 need) 5. Need which is satisfied Some needs continue to -not a motivator motivation, though satisfied 6. All needs are motivation at times. Not so. 7. Relevant of all. More for managers. ------------------------------------------------------------------------------------------------------- ERG Theory

Clayton Alderfer of Yale University has reworked Maslow’s need

hierarchy to align it more closely with the empirical research. His revised need

hierarchy is labelled ERG THEORY.

Alderfer argues that there are three groups of core needs-

existence, relatedness, and growth-chance, the label: ERG theory.

• The existence group is concerned with providing our basic material

existence requirements. They include the items that Maslow

considered to be physiological and safety needs.

• The second group of need are those of relationship. These social and

status desires require interaction with others if they are to be satisfied,

and they align with maslow’s social need and the external component

of maslow’s esteem classification.

• Finally, Alderfer isolates growth need -an intrinsic component from

Maslow’s esteem category and the characteristics included under self-

actualization.

• More than 1 need may be operative.

• All 3 need categories could be operating at the same time.

• If gratification of the higher need is stifled, the desire to satisfy a lower

level need increases.

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• Variables such as age, gender, family background, cultural

environment can alter the importance or driving force that a group of

needs holds for a particular individual. E.g.- Japan, Spain place social

need before their physiological requirement

The Vroom expectancy, or VIE, Theory of Work Motivation:

Vrooms Valence Expectancy Theory (Desire) (Action): Victor Vroom was the first to formulate an expectancy theory

directly aimed at work motivation. Vrooms model is built around the concepts

of Valence, Expectancy. Valence means the strength of an individual’s

preference for a particular outcome (Desire). Expectancy means the

probability that a particular action will lead to that outcome (Action). According

to Vroom Motivation = V X ∑. Valence that does not lead to action is not a

motivator. Example - A college student has a strong desire to fight in the war

front (valance). For this he should take a series of steps starting with entering

for the army (Expectancy). If he is not taking the action, only thinking about

fighting it is valence without expectancy, it does not constitute sound

motivation.

Importance of the Vroom Model

• It recognizes individual differences in work motivation.

INDIVIDUAL EFFORT

INDIVIDUAL PERFORMANCE

ORGANIZATIONAL REWARDS

PERSONAL GOALS

1 2 3

1- EFFORT- PERFORMANCE RELATIONSHIP,

2- PERFORMANCE- REWARD RELATIONSHIP,

3- REWARD-PERSONAL GOAL RELATIONSHIP.

[98]

• It suggests that motivation is a complex process as compared to

Maslow's or Herzberg's simplistic models.

• It clarifies the relationship between individuals and organizational

goals.

• It is consistent with M.B.O.

• It is of value in understanding organizational behavior.

• From theoretical stand point, this model seems to help managers

appreciate the complexities of motivation.

Criticisms: 1. It does not attempt to describe what individual differences are.

2. It does not provide specific suggestion on what motivates Organizational

Behaviour.

3. It does not provide specific solutions to motivational problems.

4. It has an assumption that people are rational and logically calculation which

may be too idealistic.

5. It is difficult (not so easy) to understand.

6. It does not attempt to describe how motivational decisions are actually

made.

Equity Theory of Work Motivation: Social psychologist J. Stacy Adams. Simply put, the theory argues that

a major input job performance and satisfaction is the degree of equality (or)

inequality that people perceive in their work situation. In other words, it is

another cognitively based motivation theory, and Adams depicts how this

motivation occurs. Inequality occurs when a person perceives that the ratio of his or her

outcomes to input and the ratio of a relevant other’s outcomes to inputs are

unequal Schematically, this is represented as follows:

[99]

Both the inputs and the outputs of the person and the other are based

upon the person’s perceptions. Age, sex, education, social status,

organizational position, qualifications, and how hard the person works are

examples of perceived input variables. Outcomes consist primarily of reward

such as pay, status, promotion, and intrinsic interest in the job. In essence,

the ratio is based upon the person’s perception of what the person is giving

(inputs) and receiving (outcomes) versus the ratio of what the relevant other is

giving and receiving. This cognition may or may not be the same as someone

else’s observation of the ratio or the same as the actual reality.

Equity theory

Individuals compare their job inputs and outcomes with those of others

and then respond so as to eliminate any inequalities.

Based on equity theory, when employees perceive an inequity, they

can be predicted to make one of six choices-

1. Change their inputs (e.g.- don’t exert much effort),

2. Change their outcomes (e.g.-individuals paid on a piece-rate basis can

increase their pay by producing a higher quantity of units of lower

quality),

Person’s outcomes Person’s inputs

Other’s outcomes Other’s inputs

Person’s outcomes Person’s inputs

Other’s outcomes Other’s inputs

Equality occurs when

Person’s outcomes Person’s inputs

Other’s outcomes Other’s inputs

[100]

3. Distort perceptions of self (e.g.- I used to think I worked at a moderate

rate but now I realize that I work a lot harder than everyone else),

4. Distort perceptions of others (e.g.- Mr .X ‘s job is not as desirable as I

previously thought it was),

5. Choose a different referent (e.g.- I may not make as much as my

brother-in-law, but am doing a lot better than my dad did when he was

my age),

6. Leave the field (e.g. - quit the job).

Demerits: • Unclear – how do employees handle conflicting equity signals?

• How do employees define input output?

• When and how do factors change over time?

Merits: • Continues to offer us some important insights into employee motivation

INCENTIVES

Financial Non-Financial Incentives Incentives

• Wages based on ability

• Pension Plan. • Production

bonus. • Profit sharing. • Co-Partnership.

• Status • Promotion • Responsibility • Pleasant and

interesting Job. • Recognition of

work • Job security • Team spirit • Competition • Informal Groups • Social importance

of work.

[101]

INCENTIVES

The needs of individual serve as a driving force in human behavior. In

the context of these needs, management rise to govern the behavior of

employees in satisfying their needs. The objects which are perceived to

satisfy their needs are called incentives. Incentive may be either positive or

negative. Positive incentive attracts people and when they obtain these

incentives they feel satisfied. Examples of positive incentives are increase in

pay, performance, etc. Employee will try to achieve these. Negative

incentives are those which motivate an individual to abstain from doing

something. For example, demotion for not maintaining particular efficiency,

etc. Sometimes, substitute incentives are also applied. These are artificial and

are used as substitute for normal incentive. For example, an employee may

be given extra rise in pay instead of promotional.

Individual have varied types of needs. Some of them can be satisfied

by money, while some cannot be satisfied by money alone. On the basis of

this the various-incentive which may be used by the organizations may be

classified into two parts, viz, financial incentives and non-financial incentive.

Financial Incentive

In the context of existing economic system, money has become a

means not only to satisfy the physical needs of daily life, but also of obtaining

social position and power. Human being if take care of their primary needs of

food, shelter, etc. since money has the exchange value, money becomes a

basic incentive for individual. The organizations offer wages which become

incentive for individual to join the organization. The wage structure should be

such that it motivates the present and prospective employees of the

organization. The traditional management thinkers have emphasized financial

incentive to get out of an individual, but modern theories do not emphasise

[102]

the role of money. Theories, particularly those by Maslow and Herzberg, place

the role of money at quite low level.

Economists and more managers tend to put the special emphasis on

money as motivator while behavioural scientists do not recognize this. From

organization’s point of view, the fact may be in between, that is, the role of

money was a motivating force must be seen in organizational context.

Following points are important for analyzing the role as motivator.

1. Economic conditions necessarily affect the importance of money as a

motivator. Money is an urgent means of achieving a minimum standard of

living, although this minimum has a way of expanding upward as people

become more affluent. However, this cannot be taken as generalization

because for some people, money will remain important irrespective of their

economic conditions, while for others, it is not important after a certain level.

2. The type of organization also determines the importance of money to the

people. For example, Geilerman point out that in most kinds of business

organizations, money is actually used as a means of keeping an organisation

adequately staffed and not as a motivator. This can be seen in the practice of

making wages and salaries competitive between various organizations so as

to attract and hold people.

3. If the money is to act as a motivator, it is necessary to assume a

relationship between performance and reward in terms of money. Those who

seek money will be motivated only if they can clearly link higher performance

to the reward of money. Moreover, people are concerned not only with

absolute amount of money they are paid for their efforts; the relationship of

this amount to what others are paid is also important. This is based on equity

theory. This suggests that people at the same level should be paid same or

nearly same money.

4. Money to act as motivator in an organization should be given in sufficient

quantity to the people. Gellerman suggests that money can motivate only

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when the perspective payment is large enough relative to a person’s income.

The people will try to earn money by their higher performance if they feel that

additional money earned by their efforts is a significant portion of their income.

5. The social attitude towards wealth plays as important role in determining

whether, within a given culture, money will be actively sought and used to

satisfy human needs. In some societies, the personal acquisition of wealth

has been looked upon as evil, or as being beneath the dignity of man. For

such cultural values, the money cannot act as motivator.

Non-Financial Incentives

Financial incentives are used to motivate employees for higher work.

However, individuals have various needs which they want to satisfy while

working in the organization. People at comparatively higher level of

managerial hierarchy attach more importance to socio-psychological needs

which cannot be satisfied by money alone. Thus management, in addition to

the financial incentives, provides non-financial incentives too to motivate the

organization. The connection of non-financial incentive to motivation people in

the organization has nothing to spend on these. However, the emphasis of

non-financial incentive is to provide psychological and emotional satisfaction

rather than financial satisfaction. For example, if an individual gets promotion

in the organization, it satisfies him psychologically more, that is, he gets better

status, more pay also by way of promotion. Some important non-financial

incentives are as follow:

(i) Status: Status, in general terms, is the ranking of people in the

society. In the organizational context, status means the ranking of

position, rights and duties in the formal organization structure. The

status system is an instrument of motivation because it is extremely

important for most of the people. The status system should be

closely related to the abilities and aspiration of people in the

organization.

(ii) Promotion. Promotion is defined as a movement to a position in

which responsibilities and presumably prestige are increased.

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Promotion satisfies the needs of human beings in the organization.

Since the promotion depends upon capabilities and good

performance, people will try for that if the venues for promotion

exist.

(iii) Responsibility. Most of the people prefer challenging and

responsible jobs rather than monotonous and routine type jobs. If

the job is responsible, it satisfaction people’s natural and inherent

characteristics and they put more effort for completing the job.

(iv) Making job Pleasant and interesting. The work can be made

enjoyable and pleasant it so designed that it allows the employees

to satisfy their natural instincts. This creates interest in the work and

employees take it as natural as play. Job enlargement-a method of

making job more complicated and varied- makes the job more

interesting.

(v) Recognition of Work. Most people have a need for a high evaluation

of themselves. They feel that what they do should be recognized by

others concerned. Recognition means acknowledgement with a

show of appreciation. When such appreciation is given to the work

performed by employees, they feel motivation to perform work at

similar or higher level.

(vi) Job Security. Employees want that their job is secure. They want

certain stability about future income and work so that they do not

feel worried on these aspects and they can work with greater zeal.

In India, this aspect is more important considering the inadequate

job opportunities and too many aspirants for these. However, there

is on negative aspects of job security. When people feel that are not

likely to forfeits their jobs, they become complacent.

Summary and Implications for Managers

The following suggestions summarize the essence of motivating employee in

organizations:

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• Recognize individual differences Employees have different needs. Don’t treat them all alike.

Moreover; spend the time necessary to understand what’s important to

each employee. This will allow you to individualize goals, level of

involvement, and rewards to align with individual needs.

• Use Goals and Feedback

Employees should have hard, specific goals, as well as

feedback on how well they are faring in pursuit of those goals.

• Allow employees to participate in Decisions that affect them

Employee can contribute to a number of decisions that affect

them: setting work goals, choosing their own benefits packages, solving

productivity and quality problems, and the like. This can increase

employee productivity, commitment to work goals, motivation, and job

satisfaction.

• Link Rewards to Performance Rewards should be contingent on performance. Importantly,

employee must perceive a clear linkage. Regardless of how closely

rewards are actually correlated to performance criteria, if individuals

perceive this relationship to be low, the result will be low performance, a

decrease in job satisfaction, and an increase in turnover and absenteeism

statistics.

• Check the system for Equity

Rewards should also be perceived by employees as equating

with the inputs they bring to the job. At a simplistic level, this should mean

that experience, skills, abilities, effort, and other obvious inputs should

explain differences in performance and, hence, pay, job assignments, and

other obvious rewards.

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Chapter 8 LEADERSHIP

Definition: Leadership refers to the relation between an individual and a group

around some common interest and behaving in a manner directed or

determined by him. Leadership may be defined in terms of totality of

functions performed by executives as individuals and as a group.

Traits: Leadership must have the following:

1. Leadership establishes relationship between an individual and groups

around some common interest, importance to leadership.

2. It is an important function for making an organization successful.

3. We are concerned about the manager as a leader.

4. Without a good leader the organization cannot run effectively.

5. Direction of activities in the organization is effected by the leader.

Motivating Employees:

Motivation is necessary for work performance. A good leader by

exercising his leadership motivates the employees for high performance.

Good leadership in the organization itself is a motivating factor for the

individuals. A good leader also understands the profile of an employee and

also becomes aware of what motivates an individual employee. This will help

the leader to take individual attention and keeping the motivation level high

among the subordinates.

Creating Confidence:

A good leader may create confidence in his followers by directing,

giving advice and getting good results in the organization. Once an individual

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with the help of a leader puts in high efficiency, he tries to maintain the level of

confidence towards his capacity.

Building Morale:

High moral leads to high productivity and organization stability. Good

leadership in an organization will raise high their employee’s moral thus

ensuring productivity and stability in the organization.

Concept of Leadership:

It represents an abstract quality in a man. A leader may or may not be

a business executive but a business executive must be a leader. It is the

followers who make a person a leader. An executive has to earn his

followers. He may not get a follower unless; he makes people willing to follow

him. Only willing followers can and will make a leader.

Characteristics of Leadership:

1. Leadership is a personal quality of character and behavior in a man.

2. It helps others in choosing and attaining specified goals to the maximum

satisfaction of both the leader and the follower.

3. A leader must lead his group with authority and confidence.

4. A leader motivates his group to work for the attainment of a goal.

5. Leadership is the process of directing, guiding and influencing the people

to do the best and to attain their goal.

Theories of Leadership:

What makes a leader effective? Is his success due to his personality or

his behaviour or the types of followers or the situation in which he works or a

combination of all these? There is no a satisfactory answer to the question.

Instead researches have contributed various theories or approaches on

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leadership, the prominent among these are trait theory, behavioural theory,

and situational theory. Each theory has its own contributions limitations and

assumptions.

Trait Theory:

Trait is defined as an enduring quality of an individual. The trait approach

determines the success of a leader. It depends on the leaders own personal

characteristics.

People say that a particular individual was successful leader because

of his certain qualities. Under this method, leaders of eminence were

selected and their characteristics were studied. It was a strong belief that the

persons having certain traits could become successful leaders. The various

traits are intelligence, attitudes, personality, and biological factors. Various

trait theories have suggested the following traits in a successful leader.

(i) Physical factors (height, weight, physique, energy, health, appearance): (ii)

intelligence; (iii) Self confidence; (iv) Sociability; (v) Will (initiative, persistence,

ambition); (vi) Dominance; and (vii) Urgency (talkative, cheerfulness, genuine,

enthusiasm, expressiveness, alertness and originality). The various studies

show wide variations in leadership traits. The various traits can be classified

into innate and acquirable traits on the basis of their source.

Innate qualities are those which are possessed by various individuals since

their birth. These qualities are natural and often known as God gifted. On the

basis of such qualities, it is said that “leaders are born and not made”. These

qualities cannot be acquired by the individuals. Acquirable qualities of

leadership are those which can be acquired and increased through various

practices. Many of these traits can be increased through training

programmes.

Evaluation:

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The trait theory is very simple. However, this fails to produce clear cut

results. It does not consider the whole environment of the leadership of which

trait may be only one factor. Moreover, no generalization can be drawn about

various traits for leadership. There were variations in traits established by

various researches. They are:

1. No Common traits:

There cannot be common traits for a successful leader. This was evident

by various researches conducted on leadership traits.

2. Degree of traits:

No evidence has been given about the degree of the various traits. The

degree varies.

3. Problem of Measurement:

There is a problem of measuring the traits. The various tests cannot give

definite conclusion. There have been many people with the traits specified for

leader, but they were not good leaders.

This approach, however, gives indication that leader should have certain

personal characteristics. This helps management to develop such qualities

through training and development programmes.

Behavioral Theory:

This approach emphasizes that strong leadership is the result of

effective role behavior. Leadership is shown by a person’s acts more than by

his traits. Traits are affected by followers, goals and the environment in which

these occur. Thus, there are four basic elements leaders, followers, goal and

environment, which affect each other in determining suitable behavior.

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Leadership acts may be viewed in two ways. Some acts are functional

(favorable) to leadership some are dysfunctional (unfavourable). The

dysfunctional acts are also important in leadership because they de-motivate

employees to work together. As such, a leader will not act in this way, the

dysfunctional acts are inability to accept subordinates ideas, display of

emotional immaturity, poor human relations, and poor communications.

Behavior of a manager in a particular direction will make him good

leader. While opposite of this world discard him as a leader. Setting goals,

motivating employees for achieving goals, raising the level of morale building

team spirit, effective communication etc. are the functional behaviour for a

successful leader.

This approach suffers from one weakness that is a particular behaviour

at a time may be effective, while at other times it may not be effective. This

means the time factor becomes a vital element which has not been

considered here.

Situational Theory:

The prime attention is given to the situation in which leadership is

exercised. Research is being done to the situation that surrounds the

exercise of leadership. The point is that in one situation leader may be

successful while in others he may not. Ohio state university research has

given four situational variables that affect the performance of leadership.

These are:

(a) The cultural environment

(b) Differences between individuals

(c) Differences between jobs

(d) Differences between organization

(a). The cultural environment:

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Culture is man-made. It is based on social system of belief, faith and

value. Many aspects of life influence behaviour. Understanding behaviour

requires the understanding of culture. Thus leadership should influence

behaviour of followers in the context of culture.

(b). Differences between individuals:

Human behaviour is caused by combination of factors. There are varieties

of factors affect behaviour. They are aptitudes, personality characteristics,

physical characteristics, interests and motivation, age, sex, education,

experience, etc. The individuals characteristics, also affect the leadership

process.

(c). Differences between jobs:

People perform different types of jobs. The job performance is affected by

four different considerations economic, legal, personal and social. Different

job conditions influence leadership behaviour differently.

(d). Differences between organization:

Organization differs on the basis of their size, age, ownership pattern,

objectives etc., in different types of organizations. Leadership process tends

to differ. For example, leadership behaviour in business organizations will be

different from military organization.

The situational theory of leadership explains how leadership differs with

situational variables. Thus, the question, why a manager in a particular

situation is successful while in the other situation is unsuccessful, is answered

by this theory.

Limitations: This theory is criticized as follows:

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(i). Matching to situation:

This theory emphasises leadership in a given situation. Thus, it measures

his present leadership potentialities. Whether this individual will fit in another

situation is not answered by this theory.

(ii). Measuring Personal ability:

Organisation may be helpful to a great extent to an individual leader in

exercising his leadership. Thus, it is difficult to measure his personal abilities

as a good leader.

(iii). Process of making good leader:

The theory does not indicate the process of making good leaders. Thus, it

puts a constraint over leadership development process.

Power:

Power is the capacity to influence the behavior of others. The term

power may be ' applied to individuals, groups, teams, departments,

organizations, and countries.

For example a certain team within an organization might be labeled as

powerful, which; suggests that it has the ability to influence the behavior of

individuals in other teams or departments. This influence may affect resource

allocations, space assignments, goals, hiring decisions, and many other

outcomes and behaviors in an organization. At Lockheed Martin, engineering

departments are powerful; at Microsoft, software, designers are powerful; and

at "Mary Kay, marketing people are powerful.

People continually attempt to influence the behavior of others in the

normal, course of everyday living. For example, people quite naturally attempt

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to reinforce the pleasing or satisfying behaviors of family members and

friends.

Also, people often attempt to punish undesirable behavior (perhaps in

very subtle ways) so that it will not be repeated. The behaviors of people at

work are no different in this respect than the behaviors of people in general.

Power is a social term; that is, an individual has power in relation to

other people, a team has power in relation to other groups, and so on. Thus

the concept of power characterizes interactions among more than one.

Further, power is never absolute or unchanging. It is a dynamic relationship

that changes as situations and individuals change. For example, a manager

may strongly influence the behavior of one subordinate but, at the same time,

only marginally influence another.

Managers may be powerful with respect to their own subordinates, yet

be unable to influence the behaviors of employees in other departments. In

addition, relationships change with time. Last month's successful influence

attempt may fail tomorrow, even though the same people are involved in both

situations.

Sources of Power in Organization

Interpersonal Sources of power . Reward . Coercive . Legitimate . Expert . Referent

Structural Sources of power . Knowledge . Resources . Decision making . Networks .

Effective/Ineffective Application of Power . Relationship among power Bases . Selection of Influence Strategies

POWER

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Interpersonal Sources of Power:

Power issues in organizations often focus on interpersonal

relationships between managers and subordinates, or leaders and followers.

French and Raven identified five interpersonal sources of power. They are

Reward power, Coercive power, Legitimate power, Expert power, and

Referent power.

Reward Power:

Reward power is an individual's ability to influence others' behaviors by

rewarding their desirable behaviors. For example, to the extent that

subordinates value rewards that the manager can give - praise, promotions,

money, time off, and so on. They may comply with requests and directives.

A manager who controls the allocation of merit pay raises in a

department has reward power over the employees in that department.

Accordingly, employees may comply with some attempts by managers to

influence their behaviors because they expect to be rewarded for their

compliance.

Coercive Power:

Coercive power is an individual's ability to influence others' behaviors

by punishing their undesirable behaviors. For example, subordinates may

comply because they expect to be punished for failure to respond favorably

with managerial directives. Punishment may take the form of reprimands,

undesirable work assignments, closer supervision, and tighter enforcement of

Influence Over

Others

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work rules, suspension without pay, and the like. The organization's ultimate

punishment is to fire the employee.

Legitimate Power:

Legitimate power most often refers to a manager’s ability to influence

subordinates’ behaviours because of the manager’s formal position in the

organization. Subordinates may respond to such influence because they

acknowledge the manager’s legitimate right to prescribe certain behaviours.

Sometimes non managerial employees possess legitimate power. For

example, a safety inspector at Lockheed Martin Vought’s plant in Camden,

Arkansas, has the legitimate power to shut down production when there is a

safety violation, even if the plant manager objects.

Expert Power:

Expert power is an individual's ability to influence others' behaviors

because of recognized competencies, talents, or specialized knowledge. To

the extent that managers can demonstrate competence in implementing,

analyzing, evaluating, and controlling the tasks of subordinates, they will

acquire expert power. Expert power often is relatively narrow in scope.

For example, a team member at Overhead Door Company might

carefully follow the advice of her team leader about how to program a

numerically controlled lathe, yet ignore advice from the team leader regarding

which of three company health plans she should choose. In this instance, the

team member is recognizing expertise in one area while resisting influence in

another.

A lack of expert power often plagues new managers and employees.

Even though a young accountant might possess a great deal of knowledge

about accounting theory and procedures, that expertise must be

demonstrated and applied over time to be recognized and accepted. Similarly,

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employees or managers from under represented groups may have difficulty

getting their expertise recognized by others.

Referent Power:

Referent power is an individual's ability to influence others' behaviors

as a result of being respected, admired, or liked. For example, subordinates

identification with a manager often forms the basis for referent power. This

identification may include the desire of subordinates to emulate the manager.

A young manager may copy the leadership style of an older, admired, and

more experienced manager. The older manager thus has some ability-some

referent power-to influence the behavior of the younger manager. Referent

power usually is associated with individuals who possess admired personality

characteristics, charisma, or a good reputation.

Political Behavior:

Political behavior involves attempts by some to influence the behaviors

of others and the course of events in the organization in order to protect their

self-interests, meet their own needs, and advance their own goals. Described

in this way, almost all behavior may be regarded as political. Labeling

behavior as political, however, usually implies a judgment that certain people

are gaining something at the expense of others or the organization as a

whole. However, a balanced understanding of political behavior and its

consequences is needed. People often are self-centered and biased when

labeling actions as political behavior.

Employees may justify their own political behavior as defending

legitimate rights or interests, yet call similar behavior by others “playing

politics". Including career advancement, recognition and status for individuals

looking after their legitimate interests, and achievement of organizational

goals - getting the job done - as a result of the normal political process in the

organization.

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Harmful effects included demotions and loss of jobs for “losers" in the

political process, a misuse of resources, and creation of an ineffective

organizational culture.

The effect on culture may be among the most undesirable

consequences of continual political behavior. Organizational politics may

arouse anxieties that cause employees to withdraw emotionally from the

organization.

The withdrawal, in turn, makes creating an organizational culture

characterized by high performance and high commitment very difficult.

Political behavior, then, can meet appropriate and legitimate individual

and organizational needs, or it can result in negative outcomes.

In any event, managers and employees must understand political

behavior because it definitely will occur. Eliminating political behavior isn't

possible - it can only be managed.

Organizational Politics

Organizational politics is universal. Political behavior is not exclusive to

these who hold public positions. We expect political behavior in every

organization. For example, Pfeiffer and Sherwood comment that: “The ‘who

gets what’ (politics) is endemic to every organization, regardless of size,

function, or character of ownership. Furthermore, it is to be found in every

level of the hierarchy; and it intensified as the stakes become more important

and the area of decision possibilities greater.”

Tushman has defined politics as, ‘the structure and process of the use of

authority and power to effort definition of goals, directions and the other major

parameters of the organization’.

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Features of politics:

1. Political behavior involves some kind of power either directly or

indirectly. Power can be exercised by those who are in formal position

and enjoy authority. It can also be influenced by other person close to

those who hold formal authority.

2. Politics involves behavior that is self-serving. It suggests that either

organizational resources are used for personal benefits or benefits to

be given to one person are given to another. In both the cases the

decision is not rational from organization’s point of view.

3. Politics takes place when an individual recognises that achievement of

his goals is influenced by the behavior of other.

4. All self-serving behaviors which do not involve use of power or threat of

use power cannot be termed as politics. For example, an employee

asking for a rise in pay is not political behavior, but the use of threat to

unionise to obtain a pay rise amounts to politics behavior.

Political behavior may assume the following forms:

1. Scapegoat

2. Passing the buck

3. Sabotage

4. Attacking and blaming other

5. Praising others,

6. Creating obligations and reciprocals

7. Creating power coalitions

8. Associating with influential

9. Image building

10. Support building for ideas

11. Falsification or hiding of important information.

All these forms will result into either wastage of organizational

resources or downing of morale of people in the organization. In both

these cases, organizational efficiency will suffer.

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Reasons for Organizational politics

• Competition for power

• Discretionary authority

• Ambiguity in organization

• Subjective evaluation of performance

• Saturation in promotion

• Joint decision- making

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Chapter 9 COMMUNICATION

Definition: The word communication has been derived from the Latin word

'communis', which can be translated as common. However, communication

incorporates, besides commonality, the concepts of transfer, meaning, and

information.

The communication can be defined as the process through which two

or more persons come to exchange ideas and understanding among

themselves.

Process:

Communication has been defined as a process. The process is a

concept of changing rather than static existence. Events and relationships are

seen as dynamic, continuous and flexible, and as such, must be considered

as a whole, a dynamic interaction both affecting and being affected by many

variables. Thus various elements might be involved in this process and may

not be unanimity amongst various authors and thinkers.

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ssssss

A communication process may involve various elements. Thus, the

above figure shows the following elements in this process.

1. Sender:

The person who intends to make contact with the objective of passing

information, ideas to other persons is knows as sender. Labeling one person

as the sender and the other as the receiver is arbitrary. These roles shift back

and forth, depending on where the individuals are in the process when the

receiver responds to the senders the original receiver becomes the sender

and the initiating sender becomes the receiver.

Sender may have certain intention in communicating, such as changing

the thoughts, beliefs, attitude or behavior of the receiver or changing the

sender's relationship with the receiver. These intentions may be presented

openly. If the receiver doesn't agree with them, the probability of distortions

and misunderstanding can be quite high. The fewer the differences in goals,

attitudes, and beliefs, the greater is the probability that accurate

communication will occur.

Communication Process: Sender Ideas Encoding Channel Receiver

Decoding

FEEDBACK

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2. Ideas:

This is the subject-matter of communication. This might be opinion,

attitude, feelings, views, suggestions, orders, etc.

3. Encoding:

Since the subject-matter of communication is abstract and intangible,

its transmission requires the use of certain symbols such as words, actions,

pictures, etc. Conversion of the subject matter into these symbols is the

process of encoding.

4. Channel:

These symbols are transmitted through certain channels, e.g. radio,

telephone, air, etc., depending upon the situation of the two parties, viz.,

sender and receiver.

5. Receiver:

Receiver is the person to whom message is meant for.

6. Decoding:

Receiver converts the symbols received from the sender to give him

the meaning of the message.

7. Feedback:

Feedback is necessary to ensure that the receiver has received the

message and understands it in the same sense as sender wants. Further, it

also acts as an energizing factor, thereby changing the course of action in the

communication.

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Making Communication Effective:

There are various guidelines for making effective communication.

American Management Association has suggested Ten Commandments of

good communication. These are:

• clarifying idea before communication,

• purpose of communication,

• understanding physical and human environment of communication,

• consulting others in planning communication,

• contents and overtones of communication,

• value of communication to the receiver,

• follow-up action,

• importance of communication,

• action congruent with communication, and

• good listening.

The major efforts for making communication effective are as follows:

1. Clarity in idea:

The communicator should be quite clear about what he wants to

communicate. Communication is a process starting with ideation which

includes generation of ideas which are meant for communication. This is the

subject-matter of communication and may, include opinions attitudes,

feelings, views, suggestions, orders, etc.

2. Purpose of Communication:

Every communication has some purpose, the basic purpose of any

communication being to get behavioral response from the receiver of the

communication. However, the ultimate objective may be extended further, for

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example, getting an order accepted by the subordinate. The communications

should be directed towards this objectively by the efforts of communicator.

3. Empathy in Communication:

The way for effective communication is to be sensitive towards

receiver's needs, feelings, and perceptions. This is what psychologists call

empathy in communication, implying putting legs in other's shoes, or

projecting oneself into the viewpoint of the other person. When the sender of

the message looks at the problems from the receiver’s point of view, many of

the misunderstanding is avoided.

4. Two-way Communication:

Communication is a two-way traffic and this fact must be realized in

communication. Two-way communication brings two minds together which is

the basic core of any communication. It involves a continuous dialogue

between sender and receiver of the message. Upward communication can

become a reality in the organization and effective if this fact is recognized.

5. Appropriate Language:

The subject-matter of communication is transmitted by decoding it into

some symbols. Such symbols may be in the form of words, either spoken or

written, pictures, and gestures. If the words are used, the language used for

communication should be such which is understandable by the receiver.

Technical terminology and multi-syllable words may be impressive looking,

but they can also be troublesome to the listener. One way of making the

communication simple is to use repetitive language with which the receiver is

quite familiar.

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6. Supporting words with Action:

Often it is said that action speaks louder than words. While

communicating, the sender may use the actions to emphasize a point. This

enhances the understanding as well as emphasizes the important point in

communication. Further, the sender of the message must also follow in action

what he says to others. This will ensure the seriousness in communication.

7. Credibility in Communication:

One criterion for effective managerial communication is that it has

credibility or believability. The subordinates obey the orders of the superior

because he has demonstrated through his competence that he is worthy for

trust. He must also maintain his trust and credibility. Thus any communication

which is based on this trust and credibility will be followed by the

subordinates.

8. Good Listening:

A communicator must be a good listener too. By this process, he is not

only giving chance to others to speak but he gathers useful information for

further communication. By concentrating on the speaker's explicit and implicit

meanings, the manager can obtain a much better understanding of what is

being said.

Nicholas has identified that managers suffer from some common

habits of bad listening, though; much of their communication time is spent in

listening. Davis has suggested ten points which may be observed in listening.

These are stop talking, put the talker at ease, show the talker that you want to

listen to, remove distractions, emphasize with the talker, be patient, hold your

temper, go easy on arguments and criticism, ask questions, stop talking. He

has emphasized to stop talking because without stopping to talking, one

cannot listen to.

[126]

Transactional Analysis:

Understanding Human Behavior:

Managers are interested in securing increased performance or

productivity from their subordinates. Several theories of motivation help them

in this direction. Psychologists have considerably helped in recent years

towards a better understanding of human behavior. For example, in recent

times, other psychologists starting with Eric Berne have developed the theory

of Transactional Analysis.

Transactional Analysis theory can provide the manager with insight into

his own personality as well as into what makes others behave as they do.

Such an understanding can help improve the relationships between the

manager and his subordinates as well as his superiors. It can even help him

increase his own on the job effectiveness through a better self understanding

and insight into personalities and transactions.

(1) Ego States:

Eric Berne noticed when observing people that they seemed to change

before his eyes. In the earlier stages, he found two types of people existing

within the same individual and he referred to them as the "Adult" and the

"Child". Later on he found a third state, distinct from these two, which he

labeled the "Parent". The same person was seen to change among these

three states as he expressed himself in words, gestures, etc.

Berne defines an ego state as "A consistent pattern of feeling and

experience directly related to a corresponding consistent pattern of behavior".

He thus implied that a person's experiences were recorded in his brain. These

included experiences of his childhood and the way his parents behaved.

These had an effect on the way he himself behaved in response to situations.

Thus, each person has three ego states, namely:

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(1) The Parent Ego State:

The Parent ego state is the part of an individual's personality which

incorporate the attitudes and behaviors from external sources primarily

parents or those who had parental authority over him. Outwardly the behavior

is critical, prejudicial or nurturing, whilst internally the old parental messages

continue to influence the inner child of the individual. Thus, for better or

worse, parents do serve as models and the effect of their behavior continues

in their children even when they are grown up.

Again, a parent himself has three unique ego states, namely the

Parent, Adult and the Child, which are incorporated in the individual's own

parent ego state. This analysis of an ego state within an ego state is called

Second order structural analysis. What this implies is that an individual's

behavior may resemble that of the grandmother's adult or the father's child

and so on.

Psychologists have shown that in the early years, say up to the age of

five, the child accepts as correct whatever is communicated by his parents.

This remains in his sub-conscious, even after he has become an adult, when

he continues to copy his parents' postures, gestures.

Some parental messages are good, whilst others are bad. Both the

positive and the negative messages remain in the individual's brain and make

him behave in a particular way.

(2) The Adult Ego State:

The Adult ego state in an individual deals rationally and objectively with

reality. It is organized and intelligent. It gathers information and tests

realities. It computes dispassionately. This state is not related to a person's

age. For example, we often say of a grown-up man that he is still not mature.

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What we are referring to is the fact that his Adult is not strong in terms of

transactional analysis.

The Adult ego state exists in everyone, unless the brain is severely

damaged. Each one can use this Adult data processing ability. Berne

describes the Adult as an independent set of feelings, attitudes, and behavior

patterns that are adapted to the current reality and are not effected by

Parental prejudices or archaic attitudes left over from childhood. The Adult is

the ego state which makes survival possible.

He also describes it as being "concerned with the autonomous

collecting and processing of data and the estimating of probabilities as a basis

for action". The Adult ego state is thus capable of separating fact from

fantasy; is able to evaluate current situations; and permits the individual to

assess alternative courses of action before adopting the optimum. This

should, however, not be confused with meaning that the Adult ego state

depends upon correctness of the decisions. It refers to the process of

decision making rather than the result.

For example, when a person analysis his job in terms of what he really

wants with etc., he is using his Adult ego state. The correctness or quality of

his decisions would naturally depend on how well-informed his Adult is and

the ability of the Adult to select and use appropriate information, even from

the Parent and the Child, to arrive at the right decision.

(3) The Child Ego State:

This ego state incorporates the impulses naturally existing in an infant

and includes the recordings of the child's early experiences. A person's Child

ego state is thus made up of the little boy or girl in him which he or she once

was. Our own impulses during childhood are recorded in our brains. The

Child ego state is the inner world of feelings and experiences. The Child

ego state may express itself by being mean, playful, selfish or manipulative.

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The Child ego state develops into three discernible parts, namely:

(1) The Natural Child:

The Natural Child is that part of the Child ego state that is pleasure

loving or rebelliously angry. It does what comes naturally. An old man

enjoying an ice cream cone with relish is expressing his Natural Child. The

Natural Child is self indulgent, self-centered, aggressive and fearful. It can

also express itself in unpleasant ways such as a boss who wants things done

his way without regard for others. A happy, healthy person with a strong Adult

expresses appropriately, this Natural Child in his daily behavior pattern.

(2)The Little Professor:

The Little Professor is that part of the Child ego state which is creative,

intuitive and manipulative. Advocates of Transactional Analysis indicate that

when a person expresses his creativity purposefully, he is using his Little

Professor along with his Adult ego state. Thus, the creative Little Professor

along with the intelligent Adult makes a good team. However, the Little

Professor can also be manipulative. For example, the woman secretary who

gets what she wants from her male boss with tears in her eyes is using the

Little Professor in her ego state.

(3) The Adapted Child:

The Adapted Child is a child who has learnt to say 'Please' and 'Thank

you'. An infant adapts itself to the demands of outside authority as it does not

know what is right or wrong at that stage. With the help of his Little Professor,

the little child learns how to avoid pain or to gain approval. Children thus

adapt themselves. Thus the Adapted Child is a part of the Child ego state

which is primarily influenced by the parents.

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These ego states are colloquially termed Parent, Adult and Child and

when capitalized here, they refer to ego states rather than to actual parents,

adults or children.

(II) TRANSACTION :

Whenever something happens between persons, it involves a

transaction between their various ego states. When a person recognizes

another with an oral greeting, a frown or a smile, in Transactional Analysis

language, this recognition is termed a stroke. When there are two or more

strokes, they constitute a transaction. Transactions can be classified into one

of three types, namely- (1) complementary, (2) crossed, and (3) ulterior.

Complementary Transactions:

When anything happens between people which involves a transaction

between various ego states, in Transactional Analysis language it is described

as a transaction. When the message sent by one person gets the predicted

response, the transaction is described as a complementary transaction. In the

words of Berne, a complementary transaction is one which is "appropriate and

expected and follows the natural order of healthy human relationships".

For example, if the wife is upset and is immediately comforted by her

husband in a sympathetic manner that is said to be a complementary

transaction as her dependency need has been answered appropriately by the

husband.

Crossed Transactions:

A crossed transaction is a frequent source of resentment. For

example, when two persons are glaring at each other, or are unwilling to

continue transacting, they have most likely experienced a crossed transaction.

An unexpected response was received to the original stimulus. The

transaction has thus activated an inappropriate ego state.

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Take the same illustration where the wife was looking for comfort from

a sympathetic husband. If the husband responds unsympathetically, the

transaction would be described as a crossed one.

Ulterior Transactions:

Ulterior transactions are more complex and have a hidden agenda like

a double message. For example T.V. salesman says to his customer with a

smile that whilst the T.V. set he is showing is the finest, it may be too

expensive for the customer. He is thus sending his message which can be

heard by the customer's Adult or Child ego state. Ulterior transactions often

result in psychological games. An ulterior transaction is involved in all games.

The word 'game' here is used in the language of Transactional Analysis.

Current issues in Communication

We will discuss four current issues related to communication in

organizations: why do man and women often have difficulty communicating

with each other? What are the implications of the “politically correct”

movement on communications in organizations? How can individuals improve

their cross-cultural communications? And how is electronics changing the way

people communicate with each other in organizations?

Communication barriers between women and men

Research by Deborah Tannen Provides us with some important

insights into the differences between men and women in terms of their

conversational styles. In particular, she has been able to explain why gender

often crests oral communication barriers. The essence on Tannen’s research

is that men use talk to emphasize status, while women use it to create

connection. Her conclusion, of course, doesn’t apply to every man or every

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woman. As she puts it, her generalization means, “a large percentage of

women and men are more likely to talk one way or the other”.

Tannen states that communication is a continual balancing act, juggling

the conflicting needs for intimacy and independence. Intimacy emphasizes

closeness and commonalities. Independence emphasizes separateness and

differences. But here’s the kick: women speak and hear a language of

connection and intimacy; men speak and hear a language of status, power,

and independence. So, for many men, conversations are primarily a means to

preserve independence and maintain status in a hierarchical social order. For

many women, conversations are negotiations for closeness in which people

try to seek and give confirmation and support.

Finally, men often criticize women for seeming to apologize all the time.

Men tend to see the phrase “I am sorry” as a weakness because they

interpret the phrase to mean the woman Is accepting blame, when he knows

she’s not to blame. The women also know she’s not to blame. The problem is

that women frequently use “I’m sorry” to express regret and restore balance to

a conversation: “I know you must feel badly about this; I do, too.” For many

women, “I’m sorry” is an expression of understanding and caring about the

person’s feelings rather than an apology.

“Politically correct” communication

What words do you use to describe a colleague who is wheelchair

bound? What terms do you use in addressing a female customer? How do

you communicate with a brand-new client who is not like you? The right

answer can mean that their is difference between coding a client, an

employee, a lawsuit, a harassment claim, or a job. Most of us are acutely

aware of how our vocabulary has been modified to reflect political

correctness. For instance, most of us have cleansed the words handicapped,

blind, and elderly from our vocabulary and replaced them with terms such as

physically challenged, visually impaired, and senior.

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Words are the primary means by which people communicate. When we

eliminate word from usage because they’re political incorrect, we reduce our

option for conveying message in the clearest and most accurate form. For the

most part, the larger the vocabulary used by a sender and a receiver, the

greater the opportunity to accurately transmit messages. By removing certain

words from our vocabulary, we make it harder to communicate accurately.

When we further replace these words with new terms whose meanings are

less well understood, we have reduced the likelihood that our messages will

be received as we had intended them. We must be sensitive to how our

choice of words might offend other. But we also have to be careful not to

sanitize our language to the point where it clearly restricts clarity of

communication. There is no simple solution to this dilemma. However, you

should be aware of the trade-offs and the need to find a proper balance.

Cross-cultural communication

Cross-culture factors clearly create the potential for increase in

communication problems. A gesture that is well understood and acceptable in

one culture can be meaningless or lewd in another.

Semantics barriers

Words mean different things to different people. This is particularly true

for people from different national cultures. Some words, for instance, don’t

translate between cultures. Understanding the words issue will help you in

communicating with people. The new capitalists in Russia may have difficulty

communicating with their British or Canadian counterparts because English

terms such as efficiency, free market, and regulation are not directly

translated into Russian.

Barriers caused by Words Words imply different things in different languages. Negotiations

between American and Japanese executives, for instance, are made more

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difficult because the Japanese word hai translates as “yes,” but its

connotation may be “yes,” I’m listening,” rather than “yes, I agree.”

Barriers caused by tone differences

In some cultures, language is formal, in other it’s informal. In some

cultures, depending on the context: people speak differently at home, in social

situations, and at work. Using a Personal, informal style in a situation in which

a more formal style is expected can be embarrassing and off-putting.

Barriers caused by differences among perceptions

People who speak different languages actually view the world in

different ways. Eskimos perceive “snow” differently because they have many

words for it. Thais perceive “no” differently than Americans because the

former have no such word in their vocabulary.

Electronic communications

Until the last 15 or 20 years, there were very few technologies break

through that significantly affected organizational communications. Early in this

century, the telephone dramatically reduced personal, face-to-face

communication. The popularization of the photocopy machine in the late

1960s was the death bell for carbon paper and made the copying of document

faster and easier. But beginning in the early 1980s, we’ve been subjected to

an onslaught of new electronic technologies that are largely reshaping the

way we communicate in organizations.

These include pagers, facsimile machines, video conferencing,

electronic meeting, e-mail, cellular phone, voice messaging, and palm-sized

personal communications. Electronic communication no longer make it

necessary for you to be at your work station or desk to be “available” pagers,

cellular phones, and personal communicators allow you to be reached when

you’re in a meeting, during your lunch break, while visiting in a customer’s

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office across town, or during a golf game on Saturday morning. The line

between an employee’s work and non work life is no longer distinct. In the

electronic age, all employees can theoretically be “on call” 24 hours a day.

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Chapter 10 ORGANIZATIONAL CONFLICT

Definition:

Conflict is any difference of opinion, disagreement or disequilibrium

between (a) One member and another member of an organization, (b) One

member and group, (c) Between two groups.

Follet defined conflict as,” the appearance of difference of opinion or

interests”. Traditional view of conflicts-“All conflicts are bad”. Human

Resources View of conflict-“They are natural but should be solved”. The

Modern view of conflict- “The conflicts are not only inevitable but many times

they could be a positive force”.

Pondy has described that the term conflict is used in 4 ways in the

literature to describe (i) antecedent conditions of conflict full behavior, such as

scarcity of resources or policy differences;(ii) affective states of individuals

involved, such as a stress, tension, hostility tension etc., (iii) Cognitive states

of individuals that is their perception or awareness of conflictual situations or

and (iv) conflictual behavior ranging from passive resistance to over

aggression.

Some of the positive aspects of conflicts are as follows: 1. Conflicts provide opportunities to individuals and groups to think again and

take a more concrete view of the situation

2. These lead to innovation as conflicting situations always present threats to

the working. In order to overcome this threat the individuals and the groups

have to find out new ways of working.

3. Conflicts bring cohesiveness in groups. This happens more in the case of

inter-group conflicts.

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4. Conflicts provide challenging work environment as these develop high

degree of competition.

5. As conflicts develop among various individuals and groups, these indicate

the shortcomings in the existing system of organizational functioning and

management attention can be drawn for overcoming such shortcomings.

6. Conflicts may be used as a device to overcome many frustrations and

tensions. People may express their frustration and tension by means of

conflicts. Thus they are related to utter mental tension.

It should, however, be taken into consideration that conflicts beyond

certain degree may lead to organizational disequilibrium as discussed above.

Therefore, attempts should be made to overcome conflicts. From this point of

view, understanding of conflicts at various levels in the organization is a

starting point. Conflicts may take place at individual level, intra-individual level

and inter-individual level, group level, and organization level.

Types of Conflict:

1) Individual (within an individual) conflicts:

• Wrong choice of job

• Role conflict

• Goal conflict

2) Interpersonal conflicts (between two people):

• Situational factors

• Distorted information

• Past events

• Status / level / grade

• Ego conflicts

• Performance related conflicts

• Differing skills/knowledge levels

• Threat to existing status

• Simple misunderstanding

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3) Intra group conflict (within group):

• Ethics and Moral issues

• Rebels

• Role conflicts

• Anti establishment people

• Sabotage

4) Inter group conflicts (between 2 groups):

For example- manufacturing vs. quality, marketing vs. finance.

• Task ambiguity

• Role conflict

• Target ambiguities

• Conflicts in coordination

• Sharing of power

• Inter departmental problems

• Strategy conflicts

• Functional prestige

• General policies of the organization, particularly reward systems

Managing Conflict: Conflict can be managed at two stages – one preventive and the other

curative.

PREVENTIVE MEASURES

• Development of Effective Leadership,

• Development of Effective Participative Decision Making,

• Development of Effective 2 - Way Communication,

• Improvement in Interpersonal relationship,

• Provision of Facilities.

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CURATIVE MEASURES

Resolution of Conflict

Whenever conflicts arise, these have to be resolved by some specific

actions, known as conflict-resolution actions. There may be many such

actions.

Some major actions in conflict resolution take place in the following ways:

1. Problem Solving

The problem solving technique is considered to be the most positive

technique available for conflict resolution because it emphasizes the attaining

of the common interests of both conflicting parties. In mutual problem solving

process, the conflicting parties must come together with the responsibilities of

solving the mutual problem that faces rather than merely finding the way to

accommodate their perspectives.

Questions of who is right or wrong are generally avoided, but sharing

and communicating are required in order to find areas of common interest.

This process causes the doubts and misunderstandings that underlie the

conflict to become more obvious to the parties so that they may more

effectively deal with them. Problem solving technique can be applied

effectively where conflict is based on misunderstanding of the parties

concerned. However, this technique is not effective when conflicts stem from

value systems that differ and that are the one of the major sources of

conflicts.

2. Avoidance

Another method of overcoming conflict is its avoidance. That is, parties

to the conflict may either withdraw from the conflict or conceal the

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incompatibility. Withdrawal may be observed when one party leaves the field

of conflict so that the other party may win by being in sole possession of the

goal in dispute. Alternatively, the goal may be redefined through mutual

withdrawal from the field and the redefinition of other and one-overlapping

goal priorities.

Concealing the incompatibility is another from of conflict. In such a

case, the conflict may be eliminated by withholding the information that the

parties are in conflict because of goal incompatibilities. However, these are

the methods for avoiding conflicts rather than solving the actual conflicts.

3. Smoothing

It can be defined as the process of playing down differences that exist

between individuals or group while emphasizing common interests.

Differences are suppressed and similarities are accentuated in smoothing

process.

Finding and emphasizing similarities between conflicting parties, while

suppressing differences, can eventually lead the parties to realize that they

are not far apart as was first beloved. With shared viewpoint on an issue, the

ability to work together towards a commonly held goal must be facilitated. This

again however, is not a long-term solution for the conflicts.

4. Compromise

It is a well-accepted technique for resolving conflict, yielding neither

loser nor a distinct winner. Include here are external or third-party

interventions, plus internal compromise between conflicting parties through

both total-group and repetitive negotiation and voting. Such a compromise

may be achieved either through the intervention of third party, the process is

commonly known as mediation, or without the intervention of the external

parties, the method is known as bargaining. In both such cases, the conflicting

parties arrive at some compromise which is mutual give-and-take situation.

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Compromise may be effectively used when the goal object may be

devised up in some way among the competing parties. In cases where this is

not possible, one group may yield to the other something of value in exchange

for a concession on of value; both parties then give something up. In a

compromise situation, the outcome depends primarily on the relative strength

of the parties. In situations in which one of the parties is much stronger than

the other, little actual compromising may occur, and one side dictates to the

other. This is quite effective method of conflict resolution between

management and workers.

5. Confrontation

The various actions enumerated above may not bring resolution of

conflict between parties if they take very rigid stand. In such a case, the

parties are left to confrontation to settle the conflict themselves. This strategy

may result into win-lose situation. The parties concerned may settle their

score by applying their strength against each other. Confrontation may be

used for organization development and increasing organizational

effectiveness. However, confrontation may not be treated as ideal technique

for most of the organizations especially if they are not equipped with taking

the advantage of confrontation. It can be desirable only if the organization is

working on competitive spirit basis. Since this is the part of organizational

climate and if organizational climate may not be development on this basis, it

is not desirable to go for confrontation.

The parties involved in conflict must analyze certain aspects before

going for confrontation. The first basic question is: what are the issues-of

conflict? What are the costs for achieving a particular thing? Often conflict is

based not on actual issue but on misperception which may aggravate the

situation leading to conflictual behavior. In such a case, self-introspection

provides the real understanding of conflict phenomenon. The second aspect

which must be analyzed is the cost involved. Often the cost involved is much

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more than the benefits associated with confrontation. Therefore it cannot

always be relied upon.

Conflict resolving strategies:

• Avoidance strategy - pretend that there is no conflict.

• Postponing strategy - the problem is recognized. But solution is not

attempted.

• Compromise - try to tell both the parties to stop. But the outcome is

won by the stronger party. Normally the conflict is referred to a third

party for mediation.

• Smoothing strategy - the boss appeals to both the parties to stop

quarreling for his sake. The parties might stop temporarily but will pick

up the next opportunity.

• Healthy confrontation - Here the problem is approached directly with

a view to get all facts - tell the parties their mistakes and rights and

wrongs without personal prejudice. The idea is to resolve the problem

and not to find fault with individuals. But normally both the parties

would have done mistakes that contributed to the conflict. The boss

tells them their mistakes also, without fear or favor and the occasion is

taken to set right the systems also. Normally this is the best method.

But very difficult to apply where delicate feelings and emotions are

involved.