OB notes

Organizational Behaviour

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What Do We Mean by Organization?

An organization is a consciously coordinated social unit, made up of a group of people, who

work together on common goals on a relatively continuous basis. Manufacturing and service

firms are organizations, and so are schools, hospitals, churches, military units, retail stores,

police departments, volunteer organizations, start-ups, and local, provincial, and federal

government agencies.

What is Organizational behaviour (OB)?

Organizational behaviour (OB) is the systematic study of the actions and attitudes that people

exhibit within organisations. It is individual behaviour and group dynamics in organisations.

The study of organisational behaviour is primarily concerned with the psychosocial,

interpersonal and behavioural dynamics in orgnanisations. However, organisational variables

that affect human behaviour at work are also relevant to the study of organisational

behaviour. These organisational variable include jobs, the design and organisational structure.

Therefore, although individual behaviour and group dynamics are the primary concerns in the

study of organisational behaviour, organisational variables are important as the context in

which human behaviour occurs. The term ‘organisational behaviour’ is defined by Stephen P

Robbins as "a field of study that investigates the impact of individuals, groups and structures

on behaviour within organisations for the purpose of applying such knowledge towards

improving an organisation's effectiveness". According to this definition, organisational

behaviour

• Is a field of study with a common body of knowledge.

• It studies three determinants of behaviour in organisations. They are individuals, groups

and structures.

• It applies the knowledge gained about individuals, groups and the effect of structure on

behaviour in order to make organisations work more effectively.

Organization behaviour is a basic and applied social science seeking knowledge about how

individuals, groups, and organizations function for improving the effectiveness and well-

being of employees and organizations.

Objectives of Organizational Behaviour

There are some goals of organizational behavior which are as follows:

1. Describe: The first goal is to describe, systematically how people behave under a variety

of conditions. Achieving this goal allows managers to communicate about human

behavior at work using a common language.

2. Understand: A second goal is to understand any people behave as they do. The managers

would be frustrated if they could talk about behavior of their employees, but not

understand the reasons behind those actions.

3. Predict: The managers would have capacity to predict which employees might be

dedicated and productive or which ones might have absent, cause problem. And thus the

managers could take preventive actions.

4. Control: The final goal of OB is to control and develop some human activity at work.

Since managers are held responsible for performance outcome, they are vitally interested

in being able to make an impact on employee behavior, skill development, team effort,

and productivity. Managers need to be able to improve results through the actions they

and their employees take, and organizational behavior can aid them in their pursuit of this

goal.


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Models of Organizational Behavior

Autocratic Model The autocratic model depends on power. Those who are in command must have the power to

demand “you do this-or else,” meaning that an employee who does not follow orders will be

penalized.

In an autocratic environment the managerial orientation is formal, official authority. This

authority is delegated by right of command over the people to it applies.

Under autocratic environment the employee is obedience to a boss, not respect for a manager.

The psychological result for employees is dependence on their boss, whose power to hire,

fire, and “perspire” them is almost absolute.

The boss pays minimum wages because minimum performance is given by employees. They

are willing to give minimum performance-though sometimes reluctantly-because they must

satisfy subsistence needs for themselves and their families. Some employees give higher

performance because of internal achievement drives, because they personally like their boss,

because the boss is “a natural-born leader,” or because of some other factor; but most of them

give only minimum performance.

The Custodial Model A successful custodial approach depends on economic resources.

The resulting managerial orientation is toward money to pay wages and benefits.

Since employees’ physical needs are already reasonably met, the employer looks to security

needs as a motivating force. If an organization does not have the wealth to provide pensions

and pay other benefits, it cannot follow a custodial approach.

The custodial approach leads to employee dependence on the organization. Rather than being

dependence on their boss for their weekly bread, employees now depend on organizations for

their security and welfare.

Employees working in a custodial environment become psychologically preoccupied with

their economic rewards and benefits.

As a result of their treatment, they are well maintained and contended. However, contentment

does not necessarily produce strong motivation; it may produce only passive cooperation.

The result tends to be those employees do not perform much more effectively than under the

old autocratic approach.


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The Supportive Model The supportive model depends on leadership instead of power or money. Through leadership,

management provides a climate to help employees grow and accomplish in the interests of

the organization the things of which they are capable.

The leader assumes that workers are not by nature passive and resistant to organizational

needs, but that they are made so by an inadequately supportive climate at work. They will

take responsibility, develop a drive to contribute, and improve themselves if management will

give them a chance. Management orientation, therefore, is to support the employee’s job

performance rather than to simply support employee benefit payments as in the custodial

approach.

Since management supports employees in their work, the psychological result is a feeling of

participation and task involvement in the organization. Employee may say “we” instead of

“they” when referring to their organization.

Employees are more strongly motivated than by earlier models because of their status and

recognition needs are better met. Thus they have awakened drives for work.

The Collegial Model A useful extension of the supportive model is the collegial model. The term “collegial”

relates to a body of people working together cooperatively.

The collegial model depends on management’s building a feeling of partnership with

employees. The result is that employees feel needed and useful. They feel that managers are

contributing also, so it is easy to accept and respect their roles in their organization. Managers

are seen as joint contributors rather than as bosses.

The managerial orientation is toward teamwork. Management is the coach that builds a better

team

The employee’s response to this situation is responsibility. For example employees produce

quality work not because management tells them to do so or because the inspector will catch

them if they do not, but because they feel inside themselves an obligation to provide others

with high quality. They also feel an obligation to uphold quality standards that will bring

credit to their jobs and company.

The psychological result of the collegial approach for the employee is self-discipline. Feeling

responsible, employees discipline themselves for performance on the team in the same way

that the members of a football team discipline themselves to training standards and the rules

of the game.

In this kind of environment employees normally feel some degree of fulfillment, worthwhile

contribution, and self-actualization, even though the amount may be modest in some

situation. This self-actualization will lead to moderate enthusiasm in performance.

The System Model An emerging model of organization behavior is the system model. It is the result of a strong

search for higher meaning at work by many of today’s employees; they want more than just a

paycheck and job security from their jobs. Since they are being asked to spend many hours of

their day at work, they want a work context there that is ethical, infused with integrity and

trust, and provides an opportunity to experience a growing sense of community among

coworkers.

To accomplish this, managers must increasingly demonstrate a sense of caring and

compassion, being sensitive to the needs of a diverse workforce with rapidly changing needs

and complex personal and family needs.

In response, many employees embrace the goal of organizational effectiveness, and

reorganize the mutuality of company-employee obligations in a system viewpoint. They


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experience a sense of psychological ownership for the organization and its product and

services.

They go beyond the self-discipline of the collegial approach until they reach a state of self-

motivation, in which they take responsibility for their own goals and actions.

As a result, the employee needs that are met are wide-ranging but often include the highest-

order needs (e.g., social, status, esteem, autonomy, and self actualization).

Because it provides employees an opportunity to meet these needs through their work as their

work as well as understand the organization’s perspectives, this new model can engender

employees’ passion and commitment to organizational goals. They are inspired; they feel

important; they believe in the usefulness and viability of their system for the common good.

SOBC Model Kurt Lewin has postulated that human behaviour is a function of the person and the

environment: B = f(P, E). The SOBC model amplifies this simple idea and provides us with a

mechanism for systematically considering human behaviour in organisations. SOBC is an

acronym where S represents the stimulus situation which includes such things as light,

sounds, job demands, supervisors, coworkers’ characteristics and equipment. O (organism)

refers to the characteristics of the person including personality, needs, attitudes, values and

intentions. B refers to the person’s behavioural responses or actions in the situation under

consideration. Finally, C represents the consequences or outcomes associated with the

behavioural responses. The action sequence is illustrated in figure below.

The SOBC model is a ‘micro’ model in that it specifies a sequence for understanding the

behaviour of individuals. It does suggest that differences in performance are a function of

numerous factors. Managers are concerned with an employee’s performance (behaviour).

They try to influence performance through direction and guidance. Frequently managers ask

an employee to attempt a trial run before the actual task is attempted. Additionally, after a

task is completed, the manager will review the employee’s performance to provide

constructive feedback. The act of reviewing performance is the C in the SOBC model. For

every employee action there are reactions at the managerial and environmental levels. To

understand the interplay between managers and their organisations and employees, it is

Stimulus Organism Behaviour Concequences

S: All sensations from the environment which trigger human perception. In

organisational behaviour these include all features of the work environment which

activate employee behaviour.

O: The finite capacities of the individual which are governed by heredity, maturity and

biological needs. These capacities also include knowledge, skills, attitudes, intentions,

sentiments and values.

B: Overt behaviours and actions such as performance or emotional responses and

conceptual activities which are apparent only to the individual.

C: The outcomes of behaviour and performance such as recognition and need

satisfaction. The outcomes represent the activity triggered in the environment by the

behaviours under study


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necessary to characterise the difference between employee needs and organisational

productivity.

Contributing Fields to Organizational Behaviour Psychology: Psychology is an applied science, which attempts to explain human behavior in

a particular situation and predicts actions of individuals. Psychologists have been able to

modify individual behaviour largely with the help of various studies. It has contributed

towards various theories on learning, motivation, personality, training and development,

theories on individual decision making, leadership, job satisfaction, performance appraisal,

attitude, ego state, job design, work stress and conflict management. Studies of these theories

can improve personal skills, bring change in attitude and develop positive approach to

organizational systems. Various psychological tests are conducted in the organizations for

selection of employees, measuring personality attributes and aptitude. Various other

dimensions of human personality are also measured. These instruments are scientific in

nature and have been finalized after a great deal of research. Field of psychology continues to

explore new areas applicable to the field of organizational behaviour. Contribution of

psychology has enriched the organizational behaviour field.

Sociology: Science of Sociology studies the impact of culture on group behaviour and has

contributed to a large extent to the field of group-dynamics, roles that individual plays in the

organization, communication, norms, status, power, conflict management, formal

organization theory, group processes and group decision-making.

Political science: Political science has contributed to the field of Organizational behaviour.

Stability of government at national level is one major factor for promotion of international

business, financial investments, expansion and employment. Various government rules and

regulations play a very decisive role in growth of the organization. All organizations have to

abide by the rules of the government of the day.

Social psychology: Working organizations are formal assembly of people who are assigned

specific jobs and play a vital role in formulating human behaviour. It is a subject where

concept of psychology and sociology are blend to achieve better human behaviour in

organization. The field has contributed to manage change, group decision-making,

communication and ability of people in the organization, to maintain social norms.

Anthropology: It is a field of study relating to human activities in various cultural and

environmental frameworks. It understands difference in behaviour based on value system of

different cultures of various countries. The study is more relevant to organizational behaviour

today due to globalization, mergers and acquisitions of various industries. The advent of the

21st century has created a situation wherein cross-cultural people will have to work in one

particular industry. Managers will have to deal with individuals and groups belonging to

different ethnic cultures and exercise adequate control or even channelize behaviour in the

desired direction by appropriately manipulating various cultural factors. Organization

behaviour has used the studies on comparative attitudes and cross-cultural transactions.

Environment studies conducted by the field of anthropology aims to understand

organizational human behaviour so that acquisitions and mergers are smooth.

Organizations are bound by its culture that is formed by human beings.


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PERSONALITY

What is Personality? The term personality represents the overall profile or combination of characteristics that

capture the unique nature of a person as that person reacts and interacts with others.

Personality combines a set of physical and mental characteristics that reflect how a person

looks, thinks, acts, and feels. Sometimes attempts are made to measure personality with

questionnaires or special tests.

Why study Personality? An understanding of personality contributes to an understanding of organizational behavior in

that we expect a predictable interplay between an individual’s personality and his or her

tendency to behave in certain ways.

What determines personality?

Of all the complexities and unanswered questions in the study of human behaviour, this

question may be the most difficult. People are enormously complex; their abilities and

interests and attitudes are diverse. An early argument in personality research was whether an

individual's personality was the result of heredity or environment. Was the personality

predetermined at birth, or was it the result of the individual's interaction with his or her

environment? Personality appears to be a result of both influences. Additionally, today we

recognize another factor - the situation.

Personality is an intangible concept. It is complex as it is related to the cognitive and

psychological process. It is believed that a man is born with certain physical and mental

qualities but the environment in which he is brought up shapes his personality. A number of

factors determine the personality of individual i.e., biological factors, family factors,

environmental factors and situational factors. Let us learn them in detail.

1. Biological Factors: Biological factors are related to human body. Three factors: heredity,

brain and physical features are considered as relevant. They are explained below.

i) Heredity: Heredity refers to those qualities transmitted by the parents to the next

generation. These factors are determined at conception. Certain factors of personality

inherited are : physical stature, facial attractiveness, gender, colour of skin, hair and eye

balls, temperament, muscle composition, sensitivity, skills and abilities, intelligence,

energy level and biological rhythms.

ii) Brain: Brain is influenced by biological factors. Structure and composition of brain

plays an important role in shaping personality. There are few empirical findings to state

that the brain influences the personality.

iii) Physical Features: The physical features and rate of maturation influence personality.

The rate of maturity is related to the physical stature. It is believed that an individual’s

external appearance has a tremendous effect on personality. For instance height, colour,

facial attraction, muscle strength influences ones’ selfconcept.

2. Family Factors: The family factors are also important in determining personality of an

individual. Three major factors: viz., the socialisation process, identification process and

birth order influence the personality.

i) Socialisation Process: Socialisation is a process of acquiring wide range of behaviour by

an infant from the enormously wide range of behavioural potentialities that are open to

him at birth. Those behaviour patterns are customary and acceptable according to the

standards of his family and social groups. Members of the family compel the infant to

conform to certain acceptable behaviour.


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ii) Identification Process: Shaping of personality starts from the time the identification

process commences. Identification Process occurs when a person tries to identify

himself with some person whom he feels ideal in the family. Normally a child tries to

behave as his father or mother.

iii) Birth Order: Birth order is another significant variable influencing the personality of an

individual.

For instance first born are likely to be more dependent, more rational, ambitious,

hardworking, cooperative, and more prone to guilt, anxiety and are less aggressive.

3. Environmental Factors: Environmental factors are those, which exists in and around the

individual. They are social and cultural factors. Culture determines human decision-

making, attitudes, independence: dependence, soberness: aggression, competition, co-

operation and shyness. There are two vital aspects of culture. Firstly, conformity by the

individual and secondly, acceptance by the larger group. Culture establihes norms, values

and attitudes, which are enforced by different social groups. Individuals are compelled to

behave in conformity to the culture establihed by the society. Thus, culture and society

exert greater influence in shaping the personality of an individual.

4. Situational Factors: In recent years, the influence of situational factors on personality is

increasingly recognised. Generally an individual’s personality is stable and consistent, it

changes in different situations. A study conducted by Milgram suggested that actions of

an individual are determined by the situation. He states that situation exerts an important

influence on the individual. It exercises constraints and may provide push to the

individual.

5. Cultural Factors: Among the factors that exert pressures on our personality formation

are the culture in which we are raised, our early conditioning, the norms among our

family, friends and social groups and other influences we experience. Traditionally,

cultural factors are usually considered to make a more significant contribution to

personality than biological factors. The culture largely determines attributes toward

independence, aggression, competition, and cooperation.

Thus, it is clear from the above discussion that hosts of factors exert influence in shaping the

personality of an individual. Therefore, one has to understand personality as a holistic system.

Personality Traits

Personality traits are the characteristics of an individual when exhibited in large number of

situations. More predominant the traits in an individual are, more consistence the individual

is and more frequent occurrences in diverse situations. There are thousands of traits that have

been identified. Cattell1 isolated 171 traits but concluded that they were superficial and

lacking in descriptive power. What he sought was a reduced set of traits that would identify

underlying pattern. The result was the identification of 16 personality factors, which he called

the source, or primary traits. These and their opposites are given below :-

1 Reserved vs Outgoing

2 Less intelligent vs More intelligent

3 Affected by feelings vs. Emotionally stable

4 Submissive vs. Dominant

5 Serious vs. Happy go lucky

6 Timid vs. Venturesome

7 Expedient vs. Conscientious

8 Tough minded vs. Sensitive


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9 Trusting vs. Suspicious

10 Practical vs. Imaginative

11 Forthright vs. Shrewd

12 Self assured vs. Apprehensive

13 Conservative vs. Experimenting

14 Group dependent vs. Self-sufficient

15 Uncontrolled vs. Controlled

16 Relaxed vs. Tense

Allport’s Trait Theory: Gordon Allport has identified a number of traits to describe

complex behaviour of human personality. He classified traits into two categories. Common

traits and Personal dispositions.

While common traits are used to compare people, personal dispositions are unique and the

most pervasive attributes describing the complexity of human personality. For providing

comparison, six distinguishing trait orientations are used. They are social, political,

economical, aesthetic, religious and theoretical. For instance social traits emphasises love and

affection, care and interest on others and expression of sympathy. Political trait is related to

power consciousness. While economic traits place emphasis on practical approach and cost

and benefits of situation, aesthetic trait is concerned with creative and artistic aspects.

Whereas, religious trait is related to unity and integrity. On the other hand, theoretical trait

consists of use of rationality and empirical approach. A person possessing theoretical trait is

characterised by the discoverer of critical truth.

Cattel’s Trait Theory: Cattels’ theory has developed on a new approach. The traits are

identified into two categories. Surface traits and Source traits. Surface traits are visible

outside and appear on the surface of personality. They are determined largely by underlying

source traits. While source trait is a cause, surface trait is effect. Surface trait is symptom of

source trait. Trait theories have recognised the continuity of personality. The theories have

shown the utility of quantitative application in behavioural sciences. They have great deal of

intuitive appeal.

Personality Types

Personality traits provide an understanding of the personality types. Certain personality types

identified are described below:

1) The Myers-Briggs Type Indicator: This is called MBTI framework. Sixteen personality

types are identified with the help of answers to 100 questions provided in the test. Some of

them are Extroverted vs. introverted, sensing vs. intuitive, thinking vs. feeling, and perceiving

vs. judging etc.

Qualities of a personality type ‘introverted, intuitive, thinking and judging’ possess certain

qualities. They are:

• Possess vision,

• Thinks with original mind,

• Have original ideas,

• Have great drive,

• Skeptical, critical, independent, determined and stubborn.

2) The Big Five Personality Types : Personality dimension is identified in terms of the big

five factors. The types of personality are:

• Extraversion: Giving importance to relationships (Outgoing, sociable, assertive)

• Agreeableness: Thinking in a different manner (Good-natured, trusting, cooperative)


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• Conscientiousness: Possession of reliability (Responsible, dependable, persistent)

• Emotional stability: Ability to withstand stress (Unworried, secure, relaxed)

• Openness to experience: Interested and fascinated by novelty (Imaginative, curious,

broad-minded)

3) Physiognomy Personality Types : William Heldon has propounded three types of

personality based on the human anatomical or physical structure of persons and psychological

characteristics. Physical size of the body influences the human behaviour and temperaments.

The personality types are.

a) Endomorph: Certain characteristics of personality and behaviour associated with the

body type are friendly, concern to people, helping others in troubles, very slow reaction to

stimuli. They seek comfort, have strong inclination to delicious food, etc. The persons

who posses these personality characteristics, are liked by all.

b) Mesomorph: Persons having moderate physical characteristics are known as

Mesomorph. The body is strong and tough. Some of the personality characteristics of this

type are: seeks physical adventure, enjoys body building, feels restless, shows high

aggression and self assertiveness, likes to take risk and develops competitive spirit. The

person is liked by virtue of his physique.

c) Ectomorph: Ectomorph body type is characterised by a thin and flat chest. The person

is intelligent, feels shy and avoids social contacts. However, he is typically anxious,

ambitious, and dedicated to his work. He is quick to react and hypersensitive to pain and

pleasure.

4) Extrovert-Introvert Personality Types : Carl Jung is the proponent of the theory. The

theory used analytical psychology approach. According to the theory, personality is

developed as a process of creativity. It consists of four phases: thinking, feeling, sensation

and intuition. Individual personality is a mixture of these factors. The theory proposed two

personality characteristics on two extreme ends. They are extrovert and introvert type

personality. While extrovert persons are more sociable, introvert persons are more self-

confident and they are guided by their own individual thinking. Extroverts are sociable and

reality oriented individuals. They are performers. On the other hand, introverts are less risk

taking and directive oriented. They require strong motivation and specific directions. While

extroverts think in terms of objective and interactive relationships, the own philosophy and

ideology guide the thinking of introverts.

This theory is very useful in the management of organisational behaviour. Job design,

motivation, leadership styles, career development, training, organisational change,

organisational development and organisational effectiveness are based on the personality

characteristics. Introvert is more likely to perform better in repetitive jobs. Extrovert performs

better in dynamic and environmental centred jobs. Similarly extrovert needs democratic style

of leadership and introvert needs more directive oriented leadership. Thus, the theory is used

in developing organisational strategies to deal with individual employees for increasing

organisational effectiveness.

5) Type A and Type B Personality : Type A personality is defined by Friedman and

Rosenman as aggressively involved in a chronic, incessant struggle to achieve more and more

in less and less time, and, if required to do so, against the opposing efforts of other things or

other persons. They have defined Type B personality as rarely harried by the desire to obtain

a wildly increasing number of things or participate in a endless growing series of events in an

ever decreasing amount of time.


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Personality attributes influencing organizational Behaviour

1. Locus of Control: Locus of control is the belief regarding the outcome of their actions.

Certain people believe that their skills and abilities influence the outcome of the action.

Others believe that some external factors like fate or chance influence their result.

According to Robbins, individuals who believe that they control what happens to them

are called Internals and individuals who believe that what happens to them is controlled

by outside forces such as luck or chance are called Externals.

Certain implications of locus of control behaviour of the individuals in organisations are

described below:

a) Absenteeism: People having internal locus of control possess a belief that the health is

under their control. They inculcate good health habits and take proper care of their health.

Thus, they have lower rate of sickness. Therefore, absenteeism is less in these people.

b) Turnover: With respect to turnover, internals tend to take action and thus might be

expected to quit the jobs more readily, but they tend to be more successful on the job and

more satisfied.

c) Decision-Making: People having external locus of control are more oriented towards

intuitive decision making. On the other hand, internals consider more information before

taking decisions. They are motivated by the achievements. They would like to control the

outcome of the decisions.

d) Motivation: Internals possess achievement motivation than externals that are just

satisfied with the available rewards.

e) Job Satisfaction: People having external locus of control are more dissatisfied on the

jobs. This is because of the belief that the outcome is not under their control. In the case

of internals, job satisfaction is more due to the belief that outcomes are the results of their

actions.

f) Psychological Commitment: Externals are less involved in the jobs. Internals possess

commitment that is more psychological.

g) Social interactions: People having internal locus of control are more sociable and

excited to have social relationships to keep their identification and esteem.

The locus of control influences the job selection also. People having internal locus of

control are successful in the sophisticated jobs. Jobs having professional and managerial

nature require complex information processing ability, needs quick learning, initiative and

independence of actions are suitable to the people having internal locus of control. On the

other hand, people having external locus of control are suitable to well-structured and

routine jobs. They are also successful in those jobs that require complying the directions.

2. Machiavellianism: Niccolo Machiavelli has introduced the concept. The term refers to

the degree of individual effort to gain control over organisational tasks. According to

Robbins, Machiavellianism is the degree to which an individual is pragmatic, maintains

emotional distance, and believes that ends can justify means. The characteristics of

Machiavellianism personality attributes are:

• They are active to participate in organisational politics.

• They manipulate more, win more and persuade less.

• They are adept at interpersonal game playing, power tactics and identifying influence

system in organisations.

• They consider ethics.


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3. Self-esteem: Self-esteem is a feeling of liking or disliking of one self. It is related to the

individual desire for success. A person having a greater desire for success is rated as high

self-esteem person. He believes that he possesses required abilities to succeed on the jobs.

People with high esteem are risk takers. They tend to choose risky and challenging jobs.

They have internal locus of control. They give preference to pride, recognition, flair,

success, independence, and are satisfied with higher order needs than simple monetary

motivation. On the other hand, people having low self-esteem are influenced by the

external factors. They give more respect and importance to the opinions of others. They

do not want to face unpleasant situation. Thus, they try to please others.

4. Self-monitoring: Self-monitoring is the ability to adapt to the situational demands.

Individuals possessing high score on self-monitoring observe the behaviour of others

from close angle in order to adjust their behaviour. They like mobility in their career.

They are more successful in discharging contradictory roles. Simply they can wear a

mask suitable to the situation. Thus, there is high degree of behavioural inconsistency in

high self-monitoring people. Therefore, self-monitoring attribute helps managers to

understand the personality and behaviour of their subordinates in order to direct,

communicate, motivate and regulate them on the jobs.

5. Self-Efficacy: Self-efficacy refers to an individual's belief that he or he is capable of

performing a task. The higher your self-efficacy, the more confidence you have in your

ability to succeed in a task. So, in difficult situations, we find that people with low self-

efficacy are more likely to lessen their effort or give up altogether whereas those with

high self efficacy will try harder to master the challenge. In addition, individuals high in

self-efficacy seem to respond to negative feedback with increased effort and motivation;

those low in self-efficacy are likely to lessen their effort when given negative feedback.

Individuals with high self-efficacy believes that they have the ability to get things done,

that they are capable of putting forth the effort to accomplish the task, and that they can

overcome any obstacles to their success. There are four sources of self-efficacy:

• Prior experiences;

• Behaviour models - witnessing the success of others;

• Persuasion from other people; and

• Assessment of current physical and emotional capabilities.

Believing in one's own capability to get something done is an important facilitator of

success. There is strong evidence that self-efficacy leads to high performance on a wide

variety of physical and mental tasks. Managers can help employees develop their self-

efficacy. This can be done by providing performance, and rewarding employee's

achievements.

6. Risk taking Attitude: Risk taking is an attitude. Persons differ in the attitude towards

assuming the risk. The propensity to take risk influences the decision-making. High-risk

takers are likely to take rapid decisions. Risk taking is also related to the job demands.

High-risk taking is found in certain caste, religion, nationality and gender. In

organizations, risk-taking behaviour is related to the ability of employees to take up

challenging tasks and possess high achievement motivation.

7. Positive/Negative Effect: Individuals who focus on the positive aspects of themselves,

other people, and the world in general are said to have positive effect. In contrast, those

who accentuate the negative in themselves, others, and the world are said to possess

negative effect. Employees with positive effect are absent from work less often.

Individuals with negative effect report more work stress. Negative individual effect

produces negative group effect and this leads to less cooperative behaviour in the work


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group. Managers can do several things to promote positive effect, including allowing

participative decision making and providing pleasant working conditions.

8. Type A and Type B Personality: Type A behaviour pattern is a complex of personality

and behavioural characteristics, including competitiveness, time urgency, social status

insecurity, aggression, hostility and a quest for achievements. Type A personality

individual is "aggressively involved in a chronic, struggle to achieve more and more in

less and less time, and if required to do so, against the opposing efforts of other things or

other persons".

Type A personality:

• Are always moving, walking, and eating rapidly:

• Feel impatient with the rate at which most events take place;

• Strive to think or do two or more things simultaneously;

• Cannot cope with leisure time; and

• Are obsessed with numbers, measuring their success in terms of how much of

everything they acquire.

The alternative to the Type A behaviour pattern is the Type B behaviour pattern. People

with Type B personalities are relatively free of the Type A behaviours and characteristics.

Type B personalities are "rarely harried by the desire to obtain a wildly increasing number

of things or participate in an endless growing series of events in an ever decreasing

amount of time".

Type B personality:

• Never suffer from a sense of time urgency with its accompanying impatience;

• Feel no need to display or discuss either their achievements or accomplishments

unless such exposure is demanded by the situation;

• Play for fun and relaxation, rather than to exhibit their superiority at any cost; and

• Can relax without guilt.

9. Authoritarianism: Authoritarianism is an attribute used to describe the persons having

certain negative beliefs about the work and workers. Taking this concept, behaviour of

employees in organisation is explained by using the following traits.

• believes in the formal authority.

• compels obedience to the authority.

• adheres to the conventional values and does not give preference to the new ideas.

• conforms to the rules and regulations.

• believes in directing the subordinates than listening to them.

• tries to be rigid and prefers structured environment.

Taking these characteristic traits, a leadership style of superiors was developed, known as

authoritarian. Employees possessing the authoritarian attributes will command respect

and achieve production targets in the short run. In the end, these people cannot maintain

the level of motivation and satisfaction.

Matching Personalities and Jobs Obviously, individual personalities differ. So, too do jobs. Following this logic, efforts have

been made to match the proper personalities with the proper jobs. John Holland's

"personality-job fit theory" is concerned with matching the job requirements with personality

characteristics. The personality-job fit theory identifies 6 personality types and proposes that


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the fit between personality type and occupational environment determines satisfaction and

turnover.

Holland has developed a Vocational Preference Inventory Questionnaire that contains 160

occupational titles. Respondents indicate which of these occupations they like or dislike, and

these answers are used to form personality profiles. Six major personality types have been

identified. They are listed in the figure below along with their compatible occupations.

Holland's Typology of Personality and Sample Occupations

What do all these mean? The theory argues that satisfaction is highest and turnover lowest

where personality and occupation are in agreement. The key points of this model are that

1. There do appear to be intrinsic personality differences among individuals;

2. There are different types of jobs; and

3. People in job environments congruent with their personality type should be more satisfied

and less likely to resign voluntarily than people in incongruent jobs.

Personality Theories One of the most important things about individual behaviour is its consistency. That is certain

characteristics pursuit over a period of time in the behaviour of a given person and is revoked

by situation resembling each other and certain characteristics tend to be associated with one

another.

Type Theory (1) The physique body type theories try to determine relationship between features of the

face or body and personality. Heldom body type is the most widely know body type theory.

(2) The physiological theory concentrates on body chemistry substances are correlated with

temperament. (3) The kind attempt for type personality is in terms of psychological factor.

Ex: Jung’s introvert, extrovert types are examples.


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Trait Theory

This is a search for identification of traits. A trait is something, which is competently and

repeatedly is manifested in a variety of situation and is an enduring attribute of individual.

(a) All Port Trait Theory. According to him there is the distinction between common trait

and personal disposition. Common traits are used to compare people (say social, economic

etc.) Then other unique traits called personal disposition. They can be cardinal, central or

secondary.

(b) Cattell Trait Theory. Ray used Cattell came across 17/words that can be used to describe

personality traits. He made a distinction between what be called the surface traits and

source traits. He has 35 surface traits by fending flusters of traits that correlated say

sociable-seclusive, wise-foolish.

Using factor analysis Cattell determined 12 source traits such as affect thymia Vs.

sizothymia, eye

strength Vs. emotionality and neuroticism, dominance Vs. submissiveness, surgency Vs. de-

surgency.

Psychoanalytic Theory i) Sigmund Freud developed psychoanalytic theory. According to him human mind consists

of three elements that are responsible for shaping the personality. They are preconscious,

conscious and unconscious elements. The unconscious state of mind is influenced by

hedonistic principle.

Unconscious mental activity determines behaviour. Conscious element is guided by reasoned

reality principle. Freud developed a structure of human mind in order to explain personality.

It consists of three elements known as : Id, Ego and Super ego.

Consciousness is guided by principle of reasoned reality and unconsciousness is ruled by

hedonistic principle of pleasure. According to this approach, personality determines the

behavior. The personality systems of human mental activity are : The Id, The Ego, The Super

Ego, and The Libido. They are described below:

i) The Id: Id is the totality of instincts oriented towards increasing pleasure, avoiding pains

and striving for immediate satisfaction of desires. The personality characteristics of an

individual are built on the foundation of the Id.

ii) The Ego: Ego is the executive part of the personality. It selects the features of the

environment and stores them. It is rational and logical. It is the conscious mediator between

realities of world and the id’s demands.

iii) The Super Ego: Super ego is a moralistic segment of human personality consisting of

noblest thoughts, ideals, feelings developed through absorption of cultural values and

attitudes.

iv) The Libido: It is a psychic energy. It makes any system to function. It is dynamic.

According to this theory, wihes are generated by the Id. It compels immediate gratification of

these desires. Otherwise, tension is generated for their gratification. It tries to gratify them by

primary process and reflex action. For example, if an employee is negative, the superior

scolds him for not performing the given task. He is hurt by the words of the superior. Since

he cannot be harsh with the superior, he tries to bear discomfort by withstanding his emotion.

He does this by grinding his tooth and bears it. If he fails to withstand his emotion he tries to

share the emotions with his close friends. This is called as primary process of overcoming the

tension. If the primary process fails, energy flows to ego, which provides perception,

thinking, judgment and memory. Then individual decides a particular action. However, while

applying secondary process super ego acts as a judge. Hence, wihes are satisfied by ego

according to the values establihed by super ego. If ego is able to integrate id and super ego

individual gets satisfaction, otherwise it results into frustration because super ego tries to

punish the ego. To continue the example, the employee tries to introspect himself and learns


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to work to avoid any discomfort in future. The theory is helpful in understanding the

personality of an individual.

Self Theory Carl Rogers contributed the self-theory. It is also known as Organism theory or Field theory.

The theory emphasises individual as an initiating, creating, and influenting the determinant of

behaviour within the environmental framework.

Elements of self-theory are explained below:

a) Organism: Organism is the individual. It is the storage of all experiences. Thus forms

locus of reference. It is guided by conscious and unconscious elements. So individual

behaviour is caused by self-evaluation and by experiences.

b) Phenomenal field: Phenomenal field represents totality of all experiences gathered by

environmental interaction. According to the theory fulfilment of self-actualization need is the

basic motivator. It is controlled by environment in which individual lives.

c) Self-concept: Self-concept is an outcome, which forms basis for individual behaviour and

personality.

Self is a combination of perceptions, attitudes, beliefs, values and traits. It characterises the

concept of ‘I’ and “Me”. In this context, ‘I’ indicates one’s own psychological process.

Hence it is called personal self. ‘Me’ is related to the thinking of an individual as to how he

appears to others. So, it is called social self. Thus both personal self and social self determine

individual behaviour. Self-theory provides valuable guide in understanding behaviour. The

theory is organised around individual and not around environment, which is uncontrollable.

ATTITUDE

Attitude is defined as a more or less stable set of predisposition of opinion, interest or

purpose involving expectancy of a certain kind of experience and readiness with an

appropriate response. Attitudes are also known as "frames of reference". They provide the

background against which facts and events are viewed. It becomes necessary to know the

attitudes of members of an organisation because they have to perceive specific aspects like

pay, hours of work, promotion etc., of their job life in the wider context of their generalised

attitudes.

An attitude is also a cognitive element; it always remains inside a person. Everyone's

psychological world is limited and thus everyone has a limited number of attitudes. In

business organisation, employees have attitudes relating to world environment, job security

etc. The individual's attitudes towards these factors are indicative of his apathy or enthusiasm

towards the activities and objectives of the organisation.

Characteristics of Attitude. Following are the characteristics of attitudes.

1. Valence. It refers to the magnitude of degree of favorableness or unfavourableness

toward the event. While measuring attitudes we are basically concerned with the

valence. If a person is extremely favourable or unfavourable toward an attitude object,

then his attitude will have a high valence.

2. Multiplexity. It refers to the number or elements constituting attitude. For example,

an employee may loyal to the organization, but another may loyal hardworking,

respectful, and dependent also.

3. Relation to Needs. Attitudes can also vary in relation to the needs they serve.

Attitude of an individual toward the pictures may serve only entertainment needs. On


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the other hand, attitudes of an individual toward task may serve strong needs for

security, achievement, recognition, and satisfaction.

4. Centrality. This refers to the importance of the attitude object to the individual.

Centrality indicates the importance of the object. The attitude which has high

centrality for an individual will less accessible to change.

Components of Attitude

1. Cognitive component: Cognitive component of attitude is related to value statement.

It consists of belief, ideas, values and other information that an individual may

possess or has faith in. Quality of working hard is a value statement or faith that a

manager may have.

2. Affective component: Affective component of attitude is related to person’s feelings

about another person, which may be positive, negative or neutral. I do not like Maya

because he is not hard working, or I like Mina because he is hard working. It is an

expression of feelings about a person, object or a situation.

3. Behavioral component: Behavioral component of attitude is related to impact of

various situations or objects that lead to individual’s behaviour based on cognitive and

affective components. I do not like Maya because he is not hard working is an

affective component, I therefore would like to disassociate myself with her, is a

behavioural component and therefore I would avoid Maya. Development of favorable

attitude, and good relationship with Mina is but natural. Individual’s favorable

behaviour is an outcome of the fact that Mina is hardworking. Cognitive and affective

components are bases for such behaviour. Former two components cannot be seen,

only the behaviour component can be seen. Former is important because it is a base

for formation of attitude.

Sources of Attitudes Attitudes, are acquired from parents, teachers, and peer group members. We model our

attitudes after those we admire, respect or fear. We observe the way family and friends

behave, and we shape our attitudes and behaviour to align with theirs. People also imitate the

attitudes of popular individuals and those they admire and respect. Attitudes are an integral

part of the world of work. It is important for managers to understand the antecedents to

attitudes as well as their consequences. Managers also need to understand the different

components of attitudes, how attitudes are formed, and the major attitudes that affect work

behaviour and how to use persuasion to change attitudes.

Types of Attitude 1. Job satisfaction: Job satisfaction is related to general attitude towards the job. A

person having a high level of satisfaction will generally hold a positive attitude while

dissatisfied people will generally display negative attitude towards life. When we talk

about attitude, we generally speak about job satisfaction because they are inter-related

in organizational behaviour.

2. Job involvement: Job involvement refers to the degree to which a person identifies

himself (psychologically) with his job, actively participates and considers his

perceived performance level important to self-worth. (Robbins) . High level of


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involvement indicates that the individual cares for his job, that has an impact on high

productivity. Higher the job satisfaction, lower will be absenteeism and employee

turnover.

3. Organizational commitment: Organizational commitment refers to degree to which

an employee identifies himself with the organizational goals and wihes to maintain

membership in the organization. He wants to “belong” to the organization and take an

active part in the its functioning. Absenting or resigning from the job versus job

satisfaction is a predictor of organizational commitment. The concept has been very

popular in the recent times. Organizational commitment depends upon job enrichment

factor and degree to which the workers enjoy autonomy and freedom of action while

performing.

Cognitive Dissonance Theory

Leon Festinger proposed cognitive dissonance theory in 1950s. The theory seeks to explain

linkage between attitudes and behaviour. We have often observed workers saying that

working conditions in an organization are poor. Does it mean that if the working conditions

were improved the workers will achieve higher productivity? It is a difficult question to

answer, because there is in-consistency between working conditions and its impact on

changing of attitude of workers in relation to productivity. Festinger explains that dissonance

is inconsistency, and cognitive dissonance refers to any inconsistency or incompatibility that

an individual might perceive between two or more attitudes, and attitude and behaviour. He

further argues that

(a) Any form of inconsistency is uncomfortable and individual attempts to reduce dissonance

or discomfort.

(b) Individual tries to reduce dissonance to achieve stable state of behaviour. For example

Non-payment of tax (behaviour) while recommending payment and displaying honesty

towards social obligation (attitude)

Reduction of dissonance Reduction of dissonance depends upon following three factors.

(i) Importance of the Elements: If the elements creating the dissonance are

relatively unimportant, the pressure to correct this imbalance will be low.

(ii) Degree of Influence: The degree of influence that individuals believe they have

over the elements will have an impact on how they will react to the dissonance. If

they perceive the dissonance to be an uncontrollable, they are less likely to be

receptive to attitude change.

(iii) Rewards: Rewards also influence the degree to which individuals are motivated

to reduce dissonance. High rewards accompanying high dissonance tend to reduce

the tension inherent in the dissonance.

Organizational implications

(a) The theory can help predict individual attitude and behavioural change.

(b) Greater the dissonance (incompatibility or discomfort) the greater would be the pressures

to reduce the same (after they have been moderated by choice, importance and rewards).

Attitude –behaviour relationship can be improved by considering moderating variables of

attitude and behaviour relationship. These are personal involvement, social constraints like

group pressure and the experience the individual has.


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LEARNING

Learning is a term frequently used by a great number of people in a wide variety of contexts.

Learning can be defined as a relatively permanent change in behaviour or potential behaviour

as a result of direct or indirect experience. There are two primary elements in this definition:

• The change must be relatively permanent. This means that after "learning" our

behaviour must be different, either better or worse as compared to our behavior prior

to this learning experience. For example you "learn" to drive a car or have learned

how to use a computer.

• This change must occur due to some kind of experience or practice. This learning is

not caused by biological maturation. For example a child does not learn to walk, it is a

natural biological phenomenon. We do not learn to eat or drink.

Learning is thus a change in behaviour as a result of experience. Different psychologists and

behavioural scientists have defined learning differently. Given below are a few important

definitions of learning:

Stephen P Robbins - "Learning is any relatively permanent change in behaviour that occurs as

a result of experience".

Munn N.L - "Learning is the process of having one's behaviour modified, more or less

permanently, by what he does and the consequences of his action, or by what he observes".

Steers and Porter - "Learning can be defined as relatively permanent change in behavior

potentially that results from reinforced practice or experience".

It must be understood that the learning itself is not observable, but only change in behavior is

observable which is the result of the process of learning. This change in behavior must be

differentiated from changes in behaviour from other causes. The causes of such changes

including aging, such as being stronger or improvement in memory in the early formative

years, instinctive response tendencies such as a timid person being brave at the time of a

crisis. Accordingly, as a unique determinant of behaviour, learning cannot take place unless

the learner actually experiences what has to be learned.

Components of Learning

1. Learning involves change, be it good or bad.

2. The change in behaviour must be relatively permanent. For that matter, a temporary

change in behaviour as a result of fatigue or temporary adaptations are not considered

learning.

3. Only change in behaviour acquired through experience is considered learning. Therefore,

a change in individual's thought process or attitudes, if accompanied by no change in

behaviour, would not be learning. For example the ability to walk that is based on

maturation disease or physical damages would not be considered learning.

4. Some form of experience is necessary for learning. Experience may be acquired directly

through practice or observation or indirectly as through reading.

5. Learning is not confined to our schooling only. As a matter of fact, learning is a lifelong

process.


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Theories of Learning The most basic purpose of learning theory like any other is to better explain how learning

occurs. Attempts have been made by the psychologists and behavioural scientists to develop

theories of learning.

How do we learn? Four theories have been offered to explain the process by which we

acquire patterns of behaviour:

1. Classical conditioning theory;

2. Operant conditioning theory;

3. Cognitive learning theory; and

4. Social learning theory.

1. Classical Conditioning Classical conditioning is one of the simplest forms of learning yet it has a powerful effect on

our attitudes, likes and dislikes, and emotional responses. We have all learned to respond in

specific ways to a variety of words and symbols. Our lives are profoundly influenced by

associations we learn through classical conditioning. Ivan Pavlov whose research on the

conditioned reflex in dogs revealed much of what we know about the principles of classical

conditioning.

Classical Conditioning of Pavlov: Ivan Pavlov (1849 - 1936) organized and directed research

in physiology at the Institute of Experimental Medicine in St. Petersburg, Russia from 1891

until his death in 1936. His book "Conditioned Reflexes" is one of the classic works in

psychology. Classical conditioning is modifying behaviour so that a conditioned stimulus is

paired with an unconditioned stimulus and elicits an unconditioned behaviour. Ivan Pavlov, a

Russian psychologist developed classical conditioning theory based on his experiments to

teach dog to salivate in response to the ringing of a bell. When Pavlov presented meat

(unconditioned stimulus) to the dog, he noticed a great deal of salivation (conditioned

response). But, when merely bell was rung, no salivation was noticed in the dog. Then, when

next Pavlov did was to link the meat and the ringing of the bell. He did this several times.

Afterwards, he merely rang the bell without presenting the meat. Now, the dog began to

salivate as soon as the bell rang. After a while, the dog would salivate merely at the sound of

the bell, even if no meat were presented. In effect, the dog had learned to respond i.e. to

salivate to the bell.

Classical conditioning introduces a simple cause-and-effect relationship between one

stimulus and response. It also makes the response reflective or involuntary after the stimulus-

response relationship has been establihed. This leaves no ground for making choice, which

differences human beings from dogs. Under certain situations classical conditioning does


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explain human behaviour. For example, if a student is always reprimanded by his Principal

when he is summoned to the principal's office he may become nervous whenever asked to

come to the principal's office because of this association.

The Elements and Processes in Classical Conditioning Reflex: A reflex is an involuntary response to a particular stimulus. There are two kinds of

reflexes:

(i) Conditioned Reflex: This is a "learned" reflex rather than a naturally occurring one.

(ii) Unconditioned Reflex: This is a "unlearned" reflex. Example, Salivation in response to

food. Unconditioned reflex are built into the nervous system.

The Conditioned and Unconditioned Stimulus and Response: - Pavlov continued to

investigate the circumstances under which a conditioned reflex is formed. Dogs do not need

to be conditioned to salivate to food, so salivation of food is an unlearned or unconditioned

response (UR). Any stimulus (such as food) that without learning will automatically elicit

(bring forth) an unconditioned response is called an unconditioned stimulus (US).

A reflex is made up of both a stimulus and response. Following is a list of some common

unconditioned reflexes, showing their two components - the unconditioned stimulus and

unconditioned response.

Limitations: Classical conditioning has real limitation in its acceptability to human behaviour

in organizations for at least three reasons:

(i) Human beings are more complex than dogs but less amenable to simple cause-and -effect

conditioning.

(ii) The behavioural environment in organizations is also complex.

(iii) The human decision-making process being complex in nature makes it possible to

override simple conditioning.

2. Operant Conditioning Operant conditioning argues that behaviour is a function of its consequences. People learn to

behave to get something they want or avoid something they don't want. Operant behaviour

means voluntary or learned behaviour in contrast to reflexive or unlearned behaviour. The

tendency to repeat such behaviour is influenced by the reinforcement or lack of reinforcement

brought about by the consequences of the behaviour. Reinforcement therefore strengthens

behaviour and increases the likelihood it will be repeated. What Pavlov did for classical

conditioning, the Harvard psychologist B.F. Skinner did for operant conditioning.

Operant conditioning induces a voluntary change in behaviour and learning occurs as a

"consequence" of such change. It is also known as reinforcement theory and it suggests that

behaviour is a function of its consequences. It is based upon the premise that behaviour or job

performance is not a function of inner thoughts, feelings, emotions or perceptions but is

keyed to the nature of the outcome of such behaviour. The consequences of a given behaviour

would determine whether the same behaviour is likely to occur with future or not. Based

upon this direct relationship between the consequences and behaviour, the management can

study and identify this relationship and try to modify and control behaviour. Thus, the

behaviour can be controlled by manipulating its consequences. This relationship is built

around two principles:

1. The behaviour that results in positive rewards tend to be repeated and behaviour with

negative consequences tend not to be repeated.

2. Based upon such consequences, the behaviour can be predicted and controlled.

Hence, certain types of consequences can be used to increase the occurrence of a desired

behaviour and other types of consequences can be used to decrease the occurrence of

undesired behaviour. The consequences of behaviour are used to influence, or shape,

behaviour through three strategies: reinforcement, punishment and extinction.


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Reinforcement: Reinforcement is the process by which certain types of behaviours are

strengthened. It is the attempt to develop or strengthen desirable behaviour by either

bestowing positive consequences or withholding negative consequences. Thus, a "reinforcer"

is any stimulus that causes certain behaviour to be repeated or inhibited.

1.Positive Reinforcement is the administration of positive consequences that tend to increase

the likelihood of repeating the behavior in similar settings.

For example,

(i)Bonuses paid at the end of a successful business year are an example of positive

reinforcement

(ii) Employees will work hard for a raise or a promotion

(iii) Salesmen will increase their efforts to get rewards and bonuses

(iv) Students will study to get good grades

2. Negative reinforcement is the withdrawal of negative consequences, which tends to

increase the likelihood of repeating the behavior in a similar setting; it is also known as

avoidance

Ex- A manager at McDonald’s regularly nags a worker about his poor performance and then

stops nagging when the worker does not fall behind one day. We need to focus on two

aspects here: the negative consequences followed by the withdrawal of these consequences

when desirable behavior occurs. The term negative reinforcement comes from this

withdrawal of the negative consequences.

Punishment: Punishment is the administration of negative consequences that tend to

reduce the likelihood of repeating the behavior in similar settings.

EX-1 The removal of a pleasant stimulus might consist of withholding affection and

attention, suspending a driver's license, or taking away a privilege such as watching

television.

Extinction : Extinction is the withdrawal of the reinforcing consequences for a given

behavior.

Ex- For example, Jack is often late for work, and his co-workers cover for him (positive

reinforcement). The manager instructs Jack’s co-workers to stop covering for him,

withdrawing the reinforcing consequences. The manager has deliberately used extinction to

get rid of an undesirable behavior. This strategy decreases the frequency of or weakens the

behavior. The behavior is not “unlearned”; it simply is not exhibited. Since the behavior is no

longer reinforced, it will reappear if reinforced again.

Thus, operant conditioning is the process of modifying behaviour through the use of positive

or negative consequences following specific behaviours. From an organizational point of

view, any stimulus from the work environment will elicit a response. The consequence of

such a response will determine the nature of the future response. For example working hard

and getting the promotion will probably cause the person to keep working hard in the future.

Factors Influencing Operant Conditioning: Several factors affect response rate, resistance

to extinction and how quickly a response is acquired.

1. The first factor is the magnitude

reinforcement increases, acquisition of a response is greater. For example, workers

would be motivated to work harder and faster, if they were paid a higher salary.

Research indicates that level of performance

between the amount of reinforcement expected and what is actually received. For

example, your job performance would undoubtedly be affected if your salary were

suddenly cut by half. Also, it might dramatically impro

your pay.

2. The second factor affecting operant conditioning is the immediacy of reinforcement.

Responses are conditioned more effectively when reinforcement is immediate. As a

rule, the longer the delay in reinforcement, the more

3. The third factor influencing conditioning is the level of motivation of the learner. If

you are highly motivated to learn to play football you will learn faster and practice

more than if you have no interest in the game. Ski

rein forcer, a hungry animal would learn faster than an animal with a full stomach.

3. Cognitive Learning Theory Edward Tolman was recognized as pioneer of Cognitive Theory. The theory consists of

relationship between environmental (cognitive) cues and expectations. He used white rat in

his psychological experiment of Cognitive theory. He found that the rat could run through

critical path with particular intention of getting food (goal/objective). In the experiment,

Tolman establihed certain choice points

cognitive cues at various choice points, which would raise its expectation to move forward to

the objective (food). Thus the rat turned to acquire food, based on relati

Reward or expectations. This theory was later applied on human resources where incentives

were related to higher performance.

4. Social Learning Albert Bandura contends that many behaviours or responses are acquired through

observational learning. Observational learning, sometimes called modelling results when we

observe the behaviours of others and note the consequences of that behaviour. The person

who demonstrates behaviour or whose behaviour is imitated is called models. Parents, mov

stars and sports personalities are often powerful models. The effectiveness of a model is

related to his or her status, competence and power. Other important factors are the age, sex,

attractiveness, and ethnicity of the model. Whether learned behaviour

depends largely on whether the person expects to be rewarded for the behaviour. Social

learning integrates the cognitive and operant approaches to learning. It recognises that

learning does not take place only because of environmen

conditioning) or of individual determinism (cognitive approach) but is a blend of both views.

It also emphasises that people acquire new behaviours by observing or imitating others in a


The first factor is the magnitude of reinforcement. In general, as magnitude of



Research indicates that level of performance is also influenced by the relationship



suddenly cut by half. Also, it might dramatically improve if your employer doubled

The second factor affecting operant conditioning is the immediacy of reinforcement.


rule, the longer the delay in reinforcement, the more slowly a response is acquired.

The third factor influencing conditioning is the level of motivation of the learner. If


more than if you have no interest in the game. Skinner found that when food is the


Cognitive Learning Theory Edward Tolman was recognized as pioneer of Cognitive Theory. The theory consists of

nvironmental (cognitive) cues and expectations. He used white rat in



choice points where expectations were establihed. The rat learned

at various choice points, which would raise its expectation to move forward to

the objective (food). Thus the rat turned to acquire food, based on relationship of

or expectations. This theory was later applied on human resources where incentives

were related to higher performance.

Albert Bandura contends that many behaviours or responses are acquired through

l learning. Observational learning, sometimes called modelling results when we


who demonstrates behaviour or whose behaviour is imitated is called models. Parents, mov



attractiveness, and ethnicity of the model. Whether learned behaviours are actually performed



learning does not take place only because of environmental stimuli (classical and operant




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of reinforcement. In general, as magnitude of



is also influenced by the relationship



ve if your employer doubled

The second factor affecting operant conditioning is the immediacy of reinforcement.


slowly a response is acquired.

The third factor influencing conditioning is the level of motivation of the learner. If


nner found that when food is the


Edward Tolman was recognized as pioneer of Cognitive Theory. The theory consists of

nvironmental (cognitive) cues and expectations. He used white rat in



d. The rat learned

at various choice points, which would raise its expectation to move forward to

onship of Cues and

or expectations. This theory was later applied on human resources where incentives

Albert Bandura contends that many behaviours or responses are acquired through

l learning. Observational learning, sometimes called modelling results when we


who demonstrates behaviour or whose behaviour is imitated is called models. Parents, movie



s are actually performed



tal stimuli (classical and operant




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social setting. In addition, learning can also be gained by discipline and self-control and an

inner desire to acquire knowledge or skills irrespective of the external rewards or

consequences. This process of self-control is also partially a reflection of societal and cultural

influences on the development and growth of human beings.

Usually, the following four processes determine the influence that a model will have on an

individual:

1. Attention Process: People can learn from their models provided they recognise and pay

attention to the critical features. In practice, the models that are attractive, repeatedly

available or important to us tend to influence us the most.

2. Retention Process: A model's influence depends on how well the individual can remember

or retain in memory the behaviour/action displayed by him when the model is no longer

readily available.

3. Motor Reproduction Process: Now, the individual needs to convert the model's

A tion into his action. This process evinces how well an individual can perform the modelled

action.

4. Reinforcement Process: Individuals become motivated to display the modelled action if

incentive and rewards are provided to them.

MOTIVATION Motivation is the process of channelling a person's inner drives so that he wants to

accomplish the goals of the organization. Motivation concern itself with the will to work. It

seeks to know the incentives for work and tries to find out the ways and means whereby their

realization can be helped and encouraged. Managers, by definition, are required to work with

and through people, so they must gain at least some understanding of the forces that will

motivate the people they are to manage. People are complex and they are uniquely different.

What motivates one person may not motivate another. Most successful managers have

learned to understand the concept of human motivation and are able to use that understanding

to achieve higher standards of subordinate work performance.

Motivation is defined as “inner burning passion caused by need, wants and desire which

propels an individual to exert his physical and mental energy to achieve desired objectives”.

Efficiency of a person depends upon performance. Performance can be expressed as under

Performance= Ability × Motivation

Terms liked motive, motivation and motivating are commonly used in Organizational

Behaviour. It is important to fully understand the meanings of these terms so that they can be

appropriately used to derive maximum benefits.

Motive: As per Burleson and Steiner, (1964) ‘motive’ is defined as “an inner state that

energises, activates (or moves) and directs (or chanalises) the behaviour towards certain

goals.”

Importance of Motivation 1. High level of performance: It is the duty of every manager to ensure that the

employees have a high degree of motivation. He should offer monetary and non-

monetary incentives. Highly motivated workers would be regular for work, and have a

sense of belonging for the organization. Quality of product will be improved, wastage

will be minimum and there will be increase in productivity, and performance level

will be high.


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2. Low employee turn over and absenteeism. Employee turnover and absenteeism is

caused due to low level of motivation on the part of managers. When dissatisfaction is

increased employees do not enjoy the work assigned to them. Therefore there is a

tendency of absenteeism. The workers hunt for an alternative job and leave the

organization whenever they get an opportunity. High level of absenteeism causes low

level of production, wastages, poor quality and disruption in production schedules.

Increased turnover is disastrous for any organization as it puts strain on financial

position of the organization due to additional recruitment, selection, training and

development. Motivation is therefore a very important management tool to achieve

organizational excellence.

3. Acceptance of organization change. Management must continuously scan the

external and the internal environment. There has been a great impact of. Social

change and technology evolution on the motivation level of employees. Social change

increases aspirations of workers and put an additional demand on the organization,

which must be considered positively so that conducing working environment is

created. Technical innovation, better working conditions, better R & D facilities,

encouragement to employees and existence of better personal policies should be part

of any organization. This will facilitate retention of employees. Management must

ensure that the changes are introduced in the organization and its benefits explained to

the employees so that there is no resistance to change and organizational growth is

achieved. Re-engineering, empowerment, job enrichment, job rotation, introduction of

new technology and processes will go a long way to boost employee morale and

achieve high degree of motivation.

4. Organizational image: Employees are the mirrors of any organization. Managers

must lay down high performance standards coupled with high monetary and

nonmonetary rewards. Training & development programmes should be regularly

organized and employee skill improved. It will have a positive impact on the

employees and the image of the organization will be improved. It will also reduce

employee turnover and better employee will look forward to join the organization.

High organizational image will contribute towards brand image of the product and

services the organization is marketing.

Theories of Motivation

Motivation theories can be divided into two approaches: content and process.

Content Theories

Content (or static) theories focus on internal or intrapersonal factors that energize, direct,

sustain, and/or prohibit behaviours. These theories explain sources of motivation by focusing

on individual needs.

1. Maslow’s Needs Hierarchy According to Maslow, humans have five sets of needs that are arranged in a hierarchy,

beginning with the most basic and compelling needs. These needs include:

(1) Physiological. Includes hunger, thirst, helter, sex and other bodily needs.

(2) Safety. Includes security and protection from physical and emotional harm.

(3) Social. Includes affection, belongingness, acceptance, and friendship.

(4) Esteem. Includes internal esteem factors such as self-respect, autonomy, and

achievement; and external esteem factors such as status, recognition, and attention.

(5) Self-actualisation. The drive to become what one is capable of becoming; includes

growth, achieving one’s potential, and self-fulfillment.


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In essence Maslow’s Motivational Theory covers the following.

(a) There are five levels of human needs.

(b) These needs are hierarchical in nature.

(c) A satisfied need is no longer a need. Once that need is satisfied, the next level need

becomes stronger.

(d) Needs do not diminish. It is the gravity that changes. Individual strives to satisfy the

need that has a strong appeal at any point of time.

2. Alderfer’s ERG Theory

Clayton Alderfer developed another need-based theory, called ERG theory. It streamlines

Maslow’s need classifications and makes some different assumptions about the relationship

between needs and motivation. The name ERG stems from Alderfer’s compression of

Maslow’s five-category need system into three categories—existence, relatedness, and

growth needs:

1. Existence needs: These are needs that are satisfied by some material substance or

condition. As such, they correspond closely to Maslow’s physiological needs and to those

safety needs that are satisfied by material conditions rather than interpersonal relations. These

include the need for food, helter, pay, and safe working conditions.

2. Relatedness needs: These are needs that are satisfied by open communication and the

exchange of thoughts and feelings with other organizational members. They correspond fairly

closely to Maslow’s belongingness needs and to those esteem needs that involve feedback

from others. However, Alderfer stresses that relatedness needs are satisfied by open, accurate,

honest interaction rather than by uncritical pleasantness.

3. Growth needs: These are needs that are fulfilled by strong personal involvement in the

work setting. They involve the full utilization of one’s skills and abilities and the creative

development of new skills and abilities. Growth needs correspond to Maslow’s need for self-

actualization and the aspects of his esteem needs that concern achievement and responsibility.


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Alderfer agrees with Maslow that as lower-level needs are satisfied, the desire to have higher-

level needs satisfied will increase. Thus, as existence needs are fulfilled, relatedness needs

gain motivational power. Alderfer explains this by arguing that as more “concrete” needs are

satisfied, energy can be directed toward satisfying less concrete needs. Finally, Alderfer

agrees with Maslow that the least concrete needs—growth needs—become more compelling

and more desired as they are fulfilled.

3. Herzberg’S Two factor theory

Fredrick Herzberg and his associates developed Motivation Theory based on two main

factors in late 1950’s. This theory is also known as Two Factor Theory. Herzberg carried out

research in nine different organizations where 200 respondents comprising accountants and

engineers were subjects. A structured interview was carried out. The purpose of the study was

to identify various factors for goal achievement and also the factors that could be included so

that motivation levels do not fall.

Findings of the study: Herzberg concluded, “ There are two types of needs, independent of

each other”.

(a) Motivational Factors: There is a set of job conditions, which operates primarily to build

strong motivation and job satisfaction. These factors are called motivational factors.

They are intrinsic in nature and help increase one’s output. These factors have positive effect

on morale, productivity, and job satisfaction and over all efficiency of the organization. These

factors are as under:

• Achievement

• Advancement

• Possibility of Growth

• Recognition.

• Work Itself

• Responsibility

(b) Maintenance Factors: There are some job conditions which operate primarily to

dissatisfy employees when these conditions are absent. These factors are also called hygiene

factors. When these factors are present they do not motivate in a strong way, when absent

they dis-satisfy, That is why these factors are called dissatisfiers. These factors are.

• Company Policy and administration.

• Technical supervision.

• Interpersonal relationship with superiors.

• Interpersonal relationship with peers.

• Interpersonal relationship with subordinates.

• Salary.

• Job security.

• Personal Life.

• Working condition.

• Status. Above factors are not an intrinsic part of a job. They prevent losses due to work restrictions.

These factors are necessary to maintain a reasonable degree of satisfaction of employees. As

stated earlier they are demotivators if they are not present. For example minimum level of

working conditions must be maintained by the organization to ensure that minimum level of

satisfaction exists. If working conditions are poor, the employees will be dissatisfied and it

would have adverse effect on goal achievement. Potency of various factors does not increase

the motivational level. It is influenced by personality and characteristics of individual


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employee. Herzberg has identified that employees are either maintenance seekers or

motivation seekers.

4. McClelland’s Theory of Needs McClelland’s Theory of Needs was developed by David McClelland and his associates. The

theory focuses on three needs: achievement, power, and affiliation. They are defined as

follows :

Needs for achievement : The drive to excel, to achieve in relation to a set of standards, to

strive to succeed.

Need for power : The need to make others behave in a way that they would not have behaved

otherwise and

Need for affiliation : The desire for friendly and close interpersonal relationships.

Some people have a compelling drive to succeed. They’re striving for personal achievement

rather than the rewards of success per se. They have a desire to do something better or more

efficiently than it has been done before. This drive is the achievement need. From research

into the achievement need, McClelland found that high achievers differentiate themselves

from others by their desire to do things better. They seek situations where they attain personal

responsibility for finding solutions to problems, where they can receive rapid feedback on

their performance so they can tell easily whether they are improving or not, and where they

can set moderately challenging goals. High achievers are not gamblers; they dislike

succeeding by chance. They prefer the challenge of working at a problem and accepting the

personal responsibility for success or failure rather than leaving the outcome to chance or the

actions of others. Importantly, they avoid what they perceive to be very easy or very difficult

tasks. They want to overcome obstacles, but they want to feel that their success is due to their

own actions. This means they like tasks of intermediate difficulty.

5. McGregor's Theory X and Theory Y Different styles of management have a different bearing on the motivation of workers in the

organization. The style adopted by a manager in managing his subordinates is basically

dependent upon his assumption about human behaviour. Theory X is negative, traditional and

autocratic style while Theory Y is positive, participatory and democratic. Thus, these labels

describe contrasting set of assumptions about human nature.

Douglas McGregor has classified the basic assumption regarding human nature into two parts

and has designated them as 'theory X’ and 'theory Y'.

Theory X: This is the traditional theory of human behaviour, which makes the following

assumptions about human nature:

1. Management is responsible for organizing the elements of productive enterprises -

money, material, equipment, and people - in the interest of economic ends.

2. With reference to people it is a process of directing their efforts, motivating them,

controlling their actions, modifying their behaviour in order to be in conformity with

the needs of the organization.

3. Without this active intervention by management, people would be passive – even

resistant to organizational needs. Hence they must be persuaded, rewarded, punihed

and properly directed.

4. The average human being has an inherent dislike of work and will avoid it if he can.

5. He lacks ambition, dislikes responsibility and prefers to be led.

6. He is inherently self-centred, indifferent to organizational needs.

7. He is by nature resistant to change.

8. He is gullible, not very bright.


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Theory Y: The assumption of theory Y, according to McGregor are as follows:-

1. Work is as natural as play or rest, provided the conditions are favourable; the average

human being does not inherently dislike work.

2. External control and the thrust of punishment are not the only means for bringing

about efforts towards organizational objectives. Man can exercise self-control and

self-direction in the service of objectives to which he is committed.

3. Commitment to objectives is a result of the rewards associated with their

achievement. People select goals for themselves if they see the possibilities of some

kind of reward that may be material or even psychological.

4. The average human being, under proper conditions does not shirk responsibility, but

learn not only to accept responsibility but also to seek it.

5. He has capacity to exercise a relatively high degree of imagination, ingenuity and

creativity in the solution of organizational problems in widely, not narrowly

distributed in the population.

6. Under conditions of modern industrial life the intellectual potentialities of people are

only partially utilized. As a matter of fact, men, have unlimited potential.

Process theories

Process theories, on the other hand, attempt to identify factors that motivate, energize,

sustain, and or stop behaviours. For example, process theories focus on expectations about

effort and performance that affect motivation, expectancies and reinforcements, goals and

perceived equity.

1. Victor Vroom's Expectancy Theory

Expectancy Theory was developed by Victor H Vroom. It is based on the notion that human

behaviour depends on people's expectations concerning their ability to perform tasks and to

receive desired rewards. The expectancy theory argues that the strength of a tendency to act

in a certain way depends in the strength of an expectation that the act will be followed by a

given outcome and on the attractiveness of the outcome to the individual. It includes three

variables which Vroom refers to as -

(i) Valance: Valence means the strength of an individual's preference for a particular

outcome. A valence of zero occurs when the individual is indifferent towards the

outcome. The valance is negative when the individual prefers not attaining the

outcome to attaining it.

(ii) Instrumentality: Instrumentality refers to the relationship between performance

and reward. It refers to a degree to which a first level outcome (e.g.:-superior

performance) will lead to a desired second level outcome (e.g.:- promotion). If

people perceive that their performance is adequately rewarded the perceived

instrumentality will be positive. On the other hand, if they perceive that

performance does not make any difference to their rewards, the instrumentality

will be low.

(iii) Expectancy: People have expectancies about the likelihood that an action or

effort on their part will lead to the intended performance. Workers will be

motivated by the belief that their performance will ultimately lead to payoffs for

them. Expectancy is the probability that a particular action will lead to a particular

first level outcome.


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The strength of a tendency to act in a certain way depends on the strength of an expectation

that the act will be followed by a given outcome and on the attractiveness of that outcome to

the individual.

• Effort-performance relationship. The probability perceived by the individual that

exerting a given amount of effort would lead to performance.

• Performance-reward relationship. The degree to which the individual believes that

performing at a particular level will lead to the attainment of a desired outcome.

• Rewards-personal goals relationship. The degree to which organisational rewards

satisfy an individual’s personal goals or needs and the attractiveness of those potential

rewards for the individual.

In sum, Vroom emphasizes the importance of individual perceptions and assessments of

organizational behaviour. The key to "expectancy" theory is the "understanding of an

individual's goals" - and the linkage between "effort" and "performance" between

"performance" and "rewards" and between "rewards" and "individual-goal satisfaction".

It is a contingency model, which recognizes that there is no universal method of motivating

people. Because we understand what needs an employee seeks to satisfy does not ensure that

the employee himself perceives high job performance as necessarily leading to the

satisfaction of these needs.

2. Adam’s Equity Theory Equity theory recognizes that individuals are concerned not only with the absolute amount of

rewards they receive for their efforts, but also with the relationship of this amount to what

others receive. The make judgements as to the relationship between their inputs and outcomes

and the inputs and outcomes of others. Based on one’s inputs, such as effort, experience,

education, and competence, one compares outcomes such as salary levels, raises, recognition,

and other factors. When people perceive an imbalance in their outcome-input ratio relative to

others, tension is created. This tension provides the basis for motivation, as people strive for

what they perceive as equity and fairness.

According to Adam, individuals are motivated to maintain an equitable exchange

relationship. Inequity is unpleasant and tension producing and people will devote

considerable energy to reducing inequity and achieving equity. What tactics can do this?

Adams has suggested the following possibilities:

• Perceptually distort one’s own inputs or outcomes.

• Perceptually distort the inputs or outcomes of the comparison person or of the group.

• Choose another comparison person or group.

• Alter one’s inputs or alter one’s outcomes.

• Leave the exchange relationship.

To clarify the motivational implications of equity theory, consider Amit, a middle manager in

a consumer products company. He has five years’ work experience and an M.B.A. degree and

considers himself a good performer. His salary is 6,00,000 a year. Amit finds out that Raj, a

co-worker with whom he identifies closely, makes the same salary he does. However, he has

only a Bachelor’s degree and two years of experience, and he sees her performance as

average rather than good. Thus, from Amit’s perspective, the following outcome/input ratios

exist:

=

Amit -Rs.6,00,000/year

Good performance, MBA, 5 years

Raj- Rs.6,00,000/year

Average performance, Bachelor’s, 2 years


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In Amit’s view, he is underpaid and should be experiencing inequity. What might he do to

resolve this inequity? Psychologically, he might distort the outcomes that he is receiving,

rationalizing that he is due for a certain promotion that will bring his pay into line with his

inputs. Behaviourally, he might try to increase his outcomes (by seeking an immediate raise)

or reduce his inputs. Input reduction could include a decrease in work effort or perhaps

excessive absenteeism. Finally, Amit might resign from the organization to take what he

perceives to be a more equitable job somewhere else. Let us reverse the coin and assume that

Raj views the exchange relationship identically to Amit—same inputs, same outcomes.

Notice that he too should be experiencing inequity, this time from relative overpayment. It

does not take a genius to understand that Raj would be unlikely to seek equity by marching

into the boss’s office and demanding a pay cut. However, he might well attempt to increase

her inputs by working harder or enrolling in an M.B.A. program. Alternatively, he might

distort her view of Amit’s performance to make it seem closer to her own. As this example

implies, equity theory is somewhat vague about just when individuals will employ various

inequity reduction strategies.

3. The Porter-Lawler Model. The Porter and Lawler expectancy model provides interesting insights into the relationships

between satisfaction and performance. As illustrated here, this model predicts that

satisfaction is determined by the perceived equity of intrinsic and extrinsic rewards for

performance. That is, rather than satisfaction causing performance, which many people might

predict, this model argues that it is actually performance that eventually leads to satisfaction.

• Determine the primary outcomes each employee wants.

• Decide what levels and kinds of performance are needed to meet organizational goals.

• Make sure the desired levels of performance are possible.

• Link desired outcomes and desired performance.

• Analyze the situation for conflicting expectancies.

• Make sure the rewards are large enough.

• Make sure the overall system is equitable for everyone.

4. Reinforcement theory The reinforcement theory, based on E. L. Thorndike’s law of effect, simply looks at the

relationship between behavior and its consequences. This theory focuses on modifying an

employee’s on-the-job behavior through the appropriate use of one of the following four

techniques:

• Positive reinforcement rewards desirable behavior. Positive reinforcement, such as a

pay raise or promotion, is provided as a reward for positive behavior with the

intention of increasing the probability that the desired behavior will be repeated.

• Avoidance is an attempt to show an employee what the consequences of improper

behavior will be. If an employee does not engage inimproper behavior, he or she will

not experience the consequence.

• Extinction is basically ignoring the behavior of a subordinate and not providing either

positive or negative reinforcement. Classroom teachers often use this technique when

they ignore students who are “acting out” to get attention. This technique should only

be used when the supervisor perceives the behavior as temporary, not typical, and not

serious.

• Punishment (threats, docking pay, suspension) is an attempt to decrease the

likelihood of a behavior recurring by applying negative consequences.

The reinforcement theory has the following implications for management:


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• Learning what is acceptable to the organization influences motivated behavior.

• Managers who are trying to motivate their employees should be sure to tell

individuals what they are doing wrong and be careful not to reward all individuals at

the same time.

• Managers must tell individuals what they can do to receive positive reinforcement.

• Managers must be sure to administer the reinforcement as closely as possible to the

occurrence of the behavior.

• Managers must recognize that failure to reward can also modify behavior. Employees

who believe that they deserve a reward and do not receive it will often become

disenchanted with both their manager and company.

EMOTION

Emotion stems from the Latin word “movere”, meaning “to move”. This is revealing of the

fact that emotions are at the root of our doing, our moving towards or away from. The words

“motivate” and “motivation” come from a similar root.

Emotions are a complex set of human mind involving physiological and psychological

changes.

Emotion is a complex state of the human mind involving a wide range of bodily changes such

as breathing, pounding heart, flushed face, sweaty palms, high pulse rate and glandular

secretions.

Emotions originate from exposure to specific situations. Emotions, when combined with the

thinking process, result in the experience of feelings; they are human beings’ warning

systems that alert them to what is really going on around them.

Emotion is an ‘umbrella term’ which includes the situation, the interpretation and the

perception of a situation, and the response or feeling related to that situation.

In the most literal dictionary sense, emotion is defined as ‘any agitation or disturbance of

mind, passion; any vehement or excited mental state’. Emotion refers to a response with its

distinctive thoughts, psychological and biological states and ranges of propensities to act.

Generally, there are two dimensions of emotions:

Physiological Dimension Psychological Dimension

Emotion is a complex state of human mind,

involving bodily changes of widespread

nature such as breathing, pounding heart,

flushed face, sweating palms, pulse rate,

glandular secretions, etc.

Emotion is a state of excitement or

perturbation marked by strong feelings. The

‘feelings’, are what one experiences as the

result of having emotions.

There are hundreds of emotions, along with their blends, variations, mutations and nuances.

For example, some of the main emotions, with their blends, have been categorised as follows:

• Anger: Fury, outrage, charged, resentment, wrath, exasperation, indignation,

vexation, acrimony, animosity, annoyance, irritability, hostility and, at the extreme,

pathological hatred and violence.

• Depression: Grief, aloofness, sorrow, cheerlessness, gloom, melancholy, self-pity,

loneliness, dejection, despair and sadness.


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• Anxiety: Fear, apprehension, nervousness, upset, misgiving, wariness, qualm, dread,

fright, terror, as a psychopathology, phobia and panic.

• Happiness: Enjoyment, cheerfulness, joy, relief, contentment, bliss, delight,

amusement, pride, sensual pleasure, thrill, rapture, gratification, satisfaction, euphoria,

ecstasy and, at the extreme, mania.

• Love: Acceptance, mutual attraction, friendliness, trust, kindness, affinity, devotion,

adoration and infatuation.

• Surprise: Shock, astonishment, amazement and wonder.

• Disgust: Contempt, pity, disdain, scorn, abhorrence, aversion, distaste and revulsion.

• Embarrassment: Shame, guilt, chagrin, remorse, humiliation, regret and

mortification.

An attitude is an evaluative position that we hold about a thing, a person, an idea or perhaps

an organization It is evaluative in that it is feelings-based and feelings tend to be evaluative –

positive or negative rather than neutral, i.e. we see something or someone as good or bad, or

in a positive or negative light, and will want to move towards or away from that object /

person.

Emotional labour: Emotional labour refers to the requirement that employees express

particular emotions at work (for instance, enthusiasm or cheerfulness) to maximize

organizational productivity. This term was first coined by Professor Arlie Hochschild of the

University of California, Berkeley, and refers to the demand organizations make on their

employees to display “appropriate” emotions during interpersonal transactions. The concept

of emotional labour originally developed in relation to service jobs. Flight attendants, for

instance, are expected to be cheerful, funeral counsellors sad, and doctors emotionally

neutral. Studies of emotional labour have explored how smiling flight attendants, cheerful

grocery clerks, gossipy hairdressers, and nasty bill collectors are expected to control their

emotional expression to improve productivity, customer satisfaction, efficiency, and even

profitability. But today, the concept of emotional labour seems relevant to almost every job.

You are expected, for example, to be courteous and not hostile in interactions with

coworkers. And leaders are expected to draw on emotional labour to “charge the troops.”

Almost every great speech, for instance, contains a strong emotional component that stirs

feelings in others.

Emotional Intelligence E.L. Thorndike (1920) had long ago identified a dimension of intelligence and named it

social intelligence, and described it as the ‘ability to understand and manage men and

women, boys and girls to act wisely in human relations.

Peter Salovey and John Mayer (1990) coined the term ‘emotional intelligence’ and described

it as ‘a form of social intelligence that involves the ability to monitor one’s own and others’

feelings and emotions, to discriminate among them, and to use this information to guide one’s

thinking and action’.

Since the publication of the bestselling book Emotional Intelligence by Daniel Goleman

(1995), the topic of emotional intelligence has witnessed unparalleled interest.

J. Mayer and P. Salovey (1997): Emotional intelligence is the ability to perceive emotions,

to access and generate emotions so as to assist thought, to understand emotions and emotional

knowledge, and to reflectively regulate emotions so as to promote emotional and intellectual

growth.


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Daniel Goleman (1998): Emotional intelligence is the capacity for recognising our own

feelings and those of others, for motivating ourselves, and for managing emotions well in

ourselves and in our relationships. Emotional intelligence describes abilities distinct from, but

complementary to, academic intelligence or the purely cognitive capacities measured by IQ.

Reuven Bar-On (1997): Emotional intelligence reflects one’s ability to deal with daily

environment challenges and helps predict one’s success in life, including professional and

personal pursuits.

(Bar-On had coined the term EQ, i.e., emotional quotient, in 1985.)

Dalip Singh (2003) defines emotional intelligence as ‘the ability of an individual to

appropriately and successfully respond to a vast variety of emotional stimuli being elicited

from the inner self and immediate environment.

Emotional intelligence is the habitual practice of:

• using emotional information from ourselves and other people;

• integrating this with our thinking;

• using these to inform our decision making to help us get what we want from the immediate

situation and from life in general.

The five crucial aspects of EI

1. EI is multifaceted

2. EI predicts performance

3. EI is measurable

4. EI is changeable and developable

5. EI is an aspect of the whole person.

Salovey and Mayer Ability Model of Emotional Intelligence

Peter Salovey and John Mayer first coined the term "emotional intelligence" in 1990 (Salovey

& Mayer, 1990) and have since continued to conduct research on the significance of the

construct. Their pure theory of emotional intelligence integrates key ideas from the fields of

intelligence and emotion. From intelligence theory comes the idea that intelligence involves

the capacity to carry out abstract reasoning. From emotion research comes the notion that

emotions are signals that convey regular and discernable meanings about relationships and

that at a number of basic emotions are universal.

They propose that individuals vary in their ability to process information of an emotional

nature and in their ability to relate emotional processing to a wider cognition. They then posit

that this ability is seen to manifest itself in certain adaptive behaviours.

Mayer and Salovey's conception of emotional intelligence is based within a model of

intelligence, that is, it strives to define emotional intelligence within the confines of the

standard criteria for a new intelligence. It proposes that emotional intelligence is comprised

of two areas: experiential (ability to perceive, respond, and manipulate emotional information

without necessarily understanding it) and strategic (ability to understand and manage

emotions without necessarily perceiving feelings well or fully experiencing them).


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Each area is further divided into two branches that range from basic psychological processes

to more complex processes integrating emotion and cognition.

The first branch, emotional perception, is the ability to be self-aware of emotions and to

express emotions and emotional needs accurately to others. Emotional perception also

includes the ability to distinguish between honest and dishonest expressions of emotion.

The second branch, emotional assimilation, is the ability to distinguish among the different

emotions one is feeling and to identify those that are influencing their thought processes.

The third branch, emotional understanding, is the ability to understand complex emotions

(such as feeling two emotions at once) and the ability to recognize transitions from one to the

other.

Lastly, the fourth branch, emotion management, is the ability to connect or disconnect from

an emotion depending on its usefulness in a given situation. A depiction of this four-branch

model is illustrated in Figure 1, which outlines the four branches and the corresponding

stages in emotion processing associated with each branch.

Goleman: A Mixed Model of Emotional Intelligence Daniel Goleman, a psychologist and science writer who has previously written on brain and

behaviour research for the New York Times, discovered the work of Salovey and Mayer in the

1990's. Inspired by their findings, he began to conduct his own research in the area and eventually

wrote Emotional Intelligence (1995), the landmark book which familiarized both the public and

private sectors with the idea of emotional intelligence. Goleman's model outlines four main

emotional intelligence constructs.

The first, self-awareness, is the ability to read one's emotions and recognize their impact while

using gut feelings to guide decisions.

Self-management, the second construct, involves controlling one's emotions and impulses and

adapting to changing circumstances.

The third construct, social awareness, includes the ability to sense, understand, and react to

other's emotions while comprehending social networks.

Finally, relationship management, the fourth construct, entails the ability to inspire, influence,

and develop others while managing conflict (Goleman, 1998).

Goleman includes a set of emotional competencies within each construct of emotional

intelligence. Emotional competencies are not innate talents, but rather learned capabilities that

must be worked on and developed to achieve outstanding performance. Goleman posits that

individuals are born with a general emotional intelligence that determines their potential for

learning emotional competencies. The organization of the competencies under the various

constructs is not random; they appear in synergistic clusters or groupings that support and

facilitate each other (Boyatzis, Goleman, & Rhee, 1999). Figure 2 illustrates Goleman's

conceptual model of emotional intelligence and corresponding emotional competencies. The

constructs and competencies fall under one of four categories: the recognition of emotions in

oneself or others and the regulation of emotion in oneself or others.

VALUES

Value is an enduring belief that a specific mode of conducts or end state of existence is

personally and socially preferable to the alternative modes of conduct or end states of

existence. They contain a judgmental element in that they carry an individual’s ideas as to

what is right, good, or desirable. Values have both content and intensity attributes. The

content attribute says that a mode of conduct or end-state of existence is important. The

intensity attribute specifies how important it is. When we rank an individual’s values in terms

of their intensity, we obtain that person’s value system. All of us have a hierarchy of values


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that forms our value system. This system is identified by the relative importance we assign to

such values as freedom, pleasure, self-respect, honesty, obedience, and equality.

Importance of Values

Values are important to the study of organizational behavior because they lay the foundation

for the understanding of attitudes and motivation and because they influence our perceptions.

Individuals enter an organization with preconceived notions of what "ought" and what "ought

not' to be. For example, If Amit enters IG Ferns and Curtains with a view that salary on

piece-rate system is right and on time-rate basis is wrong. He is likely to be disappointed if

the company allocates salary on time-rate basis. His disappointment is likely to breed his job

dissatisfaction. This will, in turn, adversely affect his performance, his attitude and in turn,

behavior would be different if his values are aligned with the company's reward/ pay policy.

Formation of Values

Values are learned and acquired primarily through experiences with people and institutions.

Parents, for example, will have substantial influence on their children's values. A parent's

reaction to everyday events demonstrates what is good and bad, acceptable and unacceptable

and important and unimportant. Values are also taught and reinforced in schools, religious

organizations, and social groups. As we grow and develop, each source of influence

contributes to our definition what is important in life. Cultural mores have influence of the

formation of values. Basic convictions of what is good or bad are derived from one's own

culture.

Types of Values 1. Allport and associates described six types of values. These are discussed briefly as follows:

(a) Theoretical value: Theoretical value is related to importance and discovery of truth

through rational approach. If all the employees practice truth in true sense, the organization

would operate itself and there won’t be any need for supervision. Truth is such a powerful

value that the British Empire had to leave Indian soil.

(b) Economic value: It emphasizes usefulness and practicability of resources, efforts put in

by individuals and the consequent value derived there from. If the project is economically

viable (in a very large sense) then it can be undertaken. Economic value is appreciated from a

very broad sense and it spells apart from economics of the issue. It also adds human value to

it when it is considered. It is the human aspect, which makes economic value enlarged.

(c) Aesthetic value: It is form of Harmony. We believe that all work must be done in a

smooth manner and that there is mutual understanding and sense of participation among all

human elements. Aesthetic value is displayed by cordial relations between various levels of

organization, effective communication, conflict free atmosphere and very congenial work

environment. The work in organizations, which has aesthetic value system among workers, is

done in harmony, peace and participation of one and all.

(d) Social value: Is related to love of people, sense of belonging and an attitude of ‘we’

feeling. Such value is very important in the organization that brings together the employees

which are bound by a sense of participation that leads to high level of motivation and high

productivity.

(e) Political value: It refers to power and influence in the organization. Right people must be

placed at the right positions so that they are able to influence the people.

(f) Religious value: As name suggest it is related to display of value which would bring unity

and understanding amongst the people in the organization based on common religious

platform. This value is no more is being preached in organization as cross section of people

are now working in organization world over. However, the positive impact on work

environment in the organizations cannot be underestimated based on religious value.


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2. Rokeach Value Survey

Milton Rokech is a pioneer in studying human values. His research is known as the Rokeach

value survey (RVS). The RVS consists of two sets of values. Each of the sets contain value

items. The first sets of Terminal value refers to desirable end state of existence. These are

the goals that a person would like to achieve in lifetime. The second set is called

instrumental values, it refers to preferable modes of behaviour. These are means of

achieving Terminal values. The details of both the value sets is given below in figure below:

Terminal values Instrumental values

1 A comfortable life (a prosperous life) Ambitious (hardworking, aspiring)

2 An exciting life (a stimulating, active life) Broad-minded (open-minded)

3 A sense of accomplishment (lasting

contribution)

Capable (competent, effective)

4 A world of peace (free of war and conflict) Cheerful (light-hearted, joyful)

5 A world of beauty (beauty of nature and the arts) Clean (neat, tidy)

6 Equality (brotherhood, equal opportunity for all) Courageous (standing up for your beliefs)

7 Family security (taking care of loved ones) Forgiving (w illing to pardon others)

8 Freedom (independence, free choice) Helpful (working for the welfare of others)

9 Happiness (contentedness) Honest (sincere, truthful)

10 Inner harmony (freedom from inner conflict) Imaginative (daring, creative)

11 Mature love (sexual and spiritual intimacy) Independent (self-reliant, self-sufficient)

12 National security (protection from attack) Intellectual (intelligent, reflective)

13 Pleasure (an enjoyable, leisurely life) Logical (consistent, rational)

14 Salvation (saved, eternal life) Loving (affectionate, tender)

15 Self-respect (self-esteem) Obedient (dutiful, respectful)

16 Social recognition (respect, admiration) Polite (courteous, well mannered)

17 True friendship (close companionship) Responsible (dependable, reliable)

18 Wisdom (a mature understanding of life) Self-controlled (restrained, self-

disciplined)

Value, Loyalty and Ethical Behaviour Indians have a rich value system and culture. Children are brought up in an appropriate

atmosphere especially in the rural setting. However during the past two decades, electronic

media has brought western culture right at the doorsteps of Indians. Indian culture and value

system is deep rooted. Workers are generally loyal to the superiors. Obedience as a value is

strictly adhered to by Indian workers and managerial cadres. Organizational culture must

emanate at the top ladder of the organization. They have to practice right value system so that

subordinates down the line also practice the same. Ethical behavior at the top level is very

important. Recent example and scams in UTI, co-operative bank and various other

organizations display breakdown of ethical behaviour. The very fact that politics is playing a

decisive role in Gujarat riot, the executive wing of the Government has proved to be

ineffective. This is indicative of breakdown in ethical standards in the organization. In this

situation the police force must act at all cost and display total value system and behave

ethically beyond the party politics and act by conscious decisions and quell the riots. Because

of breakdown of value system, the government machinery of law and order has come to a

standstill. The society therefore is suffering. It is a matter of great understanding that value

and loyalty has an impact on ethical behaviour. Every individual must possess a high degree

of value system; he must be loyal to his work, the superior and behave ethically in lager

interest of the society. Wherever there is a conflict because of the external pressures, the

manager/leader must behave by dictates of conscious. As of now the industrial scene is worth

examining. The young executives are seen to be loyal to their job. They change jobs


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frequently based on high pay and perks. Middle-aged managers are loyal to their jobs because

it gives them lively-hood. The old ones display greater loyalty to the organization due to

expected pensionary benefits. In each of the categories the motive is predominant in

performance. Whatever be the case, loyal workers with right value system will display ethical

behaviour.

GROUP

We define "group" as more than two employees who have an ongoing relationship in which

they interact and influence one another's behaviour and performance. The behavior of

individuals in groups is something more than the sum total of each acting in his or her own

way. In other words, when individuals are in groups, they act differently than they do when

they are alone.

Groups can be either formal or informal.

1. Formal Groups: A formal group is set up by the organization to carry out work in support

of the organization's goals. In formal groups, the behaviours that one should engage in are

stipulated by and directed toward organizational goals. Examples include a bookkeeping

department, an executive committee, and a product development team. Formal group may be

command groups or task groups.

(i) Command Group: A command group consists of a manager and the employees who report

to him or her. Thus, it is defined in terms of the organization's hierarchy. Membership in the

group arises from each employee's position on the organizational chart.

(ii) Task Group: A task group is made up of employees who work together to complete a

particular task or project. A task group's boundaries are not limited to its immediate

hierarchical superior. It can cross command relationships. A employee's membership in the

group arises from the responsibilities delegated to the employee - that is, the employee's

responsibility to carry out particular activities. Task group may be temporary with an

established life span, or they may be open ended.

2. Informal Groups: An organization's informal groups are groups that evolve to meet social

or affiliation needs by bringing people together based on shared interests or friendship. Thus,

informal groups are alliances that are neither formally structured nor organizationally

determined. These groups are natural formations in the work environment that appear in

response to the need for social contact. Many factors explain why people are attracted to one

another. One explanation is simply proximity; when people work near one another every day,

they are likely to form friendships. That likelihood is even greater when people also share

similar attitudes, personalities, or economic status.

(i) Friendship Groups: Groups often develop because the individual members have one or

more common characteristics. We call these formations friendship groups. Social alliances,

which frequently extend outside the work situation, can be based on similar age, hold same

political view, attended the same college etc.

(ii) Interest Groups: People who may or may not be aligned into common command or task

groups may affiliate to attain a specific objective with which each is concerned. This is an

interest group.

(iii) Reference Groups: Sometimes, people use a group as a basis for comparison in making

decisions or forming opinions. When a group is used in this way, it is a reference group.

Employees have reference groups inside or outside the organization where they work. For

most people, the family is the most important reference groups. Other important reference

groups typically include coworkers, friends, and members of the person's religious

organization. The employee need not admire a group for it to serve as a reference group.

Some reference groups serve as a negative reference; the employee tries to be unlike

members of these groups.


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(iv) Membership Groups: When a person does belong to a group (formal and informal groups

to which employees actually belong) the group is called a membership group (or affiliation

group) for that person. Members of a group have some collection of benefits and

responsibilities that go beyond the group serving as a reference point. In a membership group,

each member would be expected to contribute to the group's well being and would enjoy the

benefit arising from the group member's friendship.

Why do People Join Groups?

1 Security: By joining a group, individuals can reduce the insecurity of standing alone.

People feel stronger, have fewer self-doubts, and are more resistant to threats when they are

part of a group.

2 Status: Inclusion in a group that is viewed as important by others provides recognition and

status for its members.

3 Self-Esteem: Groups can provide people with feelings of self-worth. That is, in addition to

conveying status to those outside the group, membership can also give increased feelings of

worth to the group members themselves.

4 Affiliation: Groups can fulfill social needs. People enjoy the regular interaction that comes

with group membership. For many people, these on-the-job interactions are their primary

source for fulfilling their needs for affiliation.

5 Power: What cannot be achieved individually often becomes possible through group

action. There is power in numbers.

6 Goal Achievement: There are times when it takes more than one person to accomplish a

particular task – there is a need to pool talents, knowledge, or power in order to get a job

completed. In such instances, management will rely on the use of a formal group.

Stages of Group Development In interpreting behaviour of a particular group, it is important to recognize not only a broad

pattern of development but also the unique characteristics of the particular group and the

circumstances that contribute to (or detract from) its development. The way in which a

particular group develops depends in part on such variables as the frequency with which

group members interact and personal characteristics of group members.

However, it was believed groups pass through a standard sequence of five stages.

(1) Forming: When a group is initially formed, its members cannot accomplish much

until they agree on what their purpose is, how they will work together and so on.

Answering such questions brings group members face to face with the first obstacle to

maturity: uncertainty, anxiety, and disagreement over power and authority. In this

stage, the focus is on the interpersonal relations among the members. Members assess

one another with regard to trustworthiness, emotional comfort, and evaluative

acceptance. Thus, the forming stage is characterized by a great deal of uncertainty

about the group's purpose, structure and leadership. Members are testing the waters to

determine that type of behaviour is acceptable. This stage is complete when members

have begun to think of themselves as part of a group.

(2) Storming: The storming stage is one of inter-group conflict. Members accept the

existence of the group, but resist the constraints the group imposes on individuality.

Further, there is conflict over who will control the group. After a group leader has

emerged, the remaining group members must sort out where they fit in the group.

Even if all the group members must sort out where they fit in the group. Even if all

the group members accept the leader, the group enters a phase of conflict and

challenge. One or more followers may test the leader. The group may split into

factions supporting and opposing the leader. If the group gets stuck in this phase of


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development, group members may engage in battles over turf and expend their

energies on a variety of political tactics. When this stage is complete, a relatively clear

hierarchy of leadership exists within the group.

(3) Norming: In this stage, close relationships develop and the group demonstrates

cohesiveness. Entering and conducting the cohesion phase requires intervention by a

group member who is emotionally unaffected by power and authority issues.

Typically, such a person encourages group members to confront these issues openly.

If the group engages in this process, the cohesion phase usually passes quickly. Group

members recognize where they fit in and the group agree on how it will operate. A

new leader may emerge, or the existing leader may become more aware of how much

others in the group contribute. The norming stage is complete when the group

structure solidifies and the group has assimilated a common set of expectations of

what defines correct member behaviour.

(4) Performing: The fourth stage is performing. The structure at this point is fully

functional and accepted. Group energy has moved from getting to know and

understand each other to performing the task at hand. Members' attention is directed

to self-motivation and the motivation of other group members for task

accomplishment. Some members focus on the task function of initiating activity and

ensure that the work of the group really gets moving. Other members contribute to

motivation and commitment within the group through maintenance functions such as

supporting, encouraging and recognizing the contributions of members or through

establishing the standards that the group may use in evaluating its performance.

(5) Adjourning: For permanent work groups, performing is the last stage in their

development. However for temporary groups, there is an adjourning stage. In this

stage, the group prepares for its disbandment. High task performance is no longer the

group's top priority. Instead, attention is directed toward wrapping up activities.

Theories of Group Formation

1. Propinquity Theory: Thc term propinquity means nearness. Thus, this theory refers

to that individuals who affiliate with one another because of spatial or geographical

proximity. In an organisation, workers who are working together in the same areas of

plant or office tend to form a group than those who are working relatively at a distant

place of plant. The propinquity theory is mainly based on the principle of proximity of

employees at the workplace, which leads to format ion of groups. In our day-to-day


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working, this phenomenon can be observed by us.

However, this theory has ignored the other important factors responsible for the group

formation, which are much more complex than nearness. This theory does not consider

the complexities of group behaviour. Because there are several reasons for the creation of

groups in organisations. Nearness is only a facilitating factor for group formation and

not the reason for it.

2. Homan's Theory: Homan's theory is based on three principles namely, activities,

interactions and sentiments which are directly related to each other as shown in figure.

According to George C. Homans", The more activities persons share, the more

numerous will be their interactions and the stronger will be their shared activities and

sentiments and the more sentiments persons have for one another, the more will be

their shared activities and interact with other not just because of physical nearness,

but also to achieve group goals. The key element is interaction because of which they

develop common sentiments for one another."

This theory explains the basic idea which is very important to form groups.

William G. Scott observes that interaction not only helps in achieving goals but also helps

to solve problems, reduce tension, achieve a balance and facilitate coordination by

interacting in this manner, members of the group tend to form powerful groups.

3. Balance Theory: This theory is propounded by Theodore M. Newcomb. Theodore

Newcomb states that, "Persons are attracted towards one another on the basis of

similar attitudes towards commonly relevant objects and goals. Once a relationship is

formed, it strives to maintain a symmetrical balance between the attraction and the

common attitudes. If an imbalance occurs, attempts are made to restore the balance, if

the balance cannot be restored, the relationship dissolves. The theory explains that

similarity of attitudes towards relevant objects and goals as the basis for group

formation. Both propinquity and Homan's interaction theories play a significant role in

the balance theory. Propinquity or afiliation and interaction also play an important

role to maintain balance in the relationship between group members for the group to be

formed. For instance, Mr. A interacts with Mr. M and form a group because of similar

attitudes and values towards authority, work, life style, religion, culture and politics.

This theory also does not explain all the aspects of group formation as similarity of

attitudes does not necessarily lead to group formation. There are many other reasons

which contribute in the process of group formation.

4. Exchange Theory: The exchange theory is given by John W. Thaihaut and Harold H.

Kelley". It is based on social exchange theory which says that people involve in social

exchange on the basis of perceived reward-cost outcomes of interactions. An individual

will join a group in terms of what he will get in exchange of interaction with group

members. Reward for joining a group is in the form of gratifying the needs while cost is

in the form of anxiety, frustration, embracement and fatigue. If reward is equal to or

more than the cost, the individual will join the group. In other case where his reward is

less than cost, he will not join the group. Propinquity, interaction and balance theories

have roles in the exchange theory. The reasons given by these theories must be

evaluated in terms of reward and cost.

Group Cohesiveness: Cohesiveness defines the degree of closeness that the members feel


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with the group. It identifies the strength of the members desires to remain in the group

and degree of commitment to the group. Cohesiveness of the group is reflected to the

extent of unity displayed by the group members and adherence to the group norms. It is

“WE” feeling displayed by the members of the group. Cohesion can be achieved when

there is a feeling of attraction and adherence to group norms. Cohesiveness of a group can

produce miracles in the organization if group objectives and organizational objectives are

complementary to each-other. Factors contributing to group cohesiveness.

Group think: Group think is the tendency in cohesive groups to seek agreement about an

issue at the expense of realistically appraising the situation. With groupthink, group

members are so concerned about preserving the cohesion of the group that they are

reluctant to bring up issues that may cause disagreements or to provide information that

may prove unsettling to the discussion. Irving Janis, the originator of the groupthink

concept, describes group think as "a deterioration of mental efficiency, reality testing and

moral judgement" resulting from in-group pressures. Certain conditions favour the

development of group think. (a) Highly cohesive groups tend to avoid conflicts and to

demand conformity. (b) Another condition (antecedents) includes directive leadership,

high stress, insulation of the group, and lack of methodical procedures for developing and

evaluating alternatives.

(c) Having to make a highly consequential decision that has great impact on the group

members and on outside parties. (d) When group members feel that they have limited

time in which to make a decision, they may rush through the process. These antecedents

cause members to prefer concurrence in decisions and to fail to evaluate one another's

suggestions critically. Such tendencies can have disastrous consequences when major

issues are being considered.

Group shift: A change in decision risk between the group’s decision and the individual

decision that member within the group would make; can be either toward conservatism or

greater risk. When people are in groups, they make decision about risk differently from

when they are alone. In the group, they are likely to make riskier decisions, as the shared

risk makes the individual risk less.

Social Loafing: Social loafing is the tendency that people have to withhold physical or

intellectual effort when they are performing a group task.47 The implication is that they

would work harder if they were alone rather than part of the group. Earlier we said that

process losses in groups could be due to coordination problems or to motivation

problems. Social loafing is a motivation problem. People working in groups often feel

trapped in a social dilemma, in that something that might benefit them individually—

slacking off in the group—will result in poor group performance if everybody behaves the


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same way. Social loafers resolve the dilemma in a way that hurts organizational goal

accomplishment.

Group Polarization: Group polarization is the tendency for group discussion to produce

shifts towards more extreme attitudes among members. The tendency toward polarization

has important implications for group decision making. Groups whose initial views lean a

certain way can be expected to adopt more extreme views following interaction. Several

ideas have been proposed to explain why group polarization occurs. They are -

(a) The Social Comparison Approach: Prior to group discussion, individuals believe they

hold better views than the other members. During group discussion, they see that their

views are not so far from average, so they shift to more extreme position.

(b) Persuasive Arguments View: It contends that group discussion reinforces the initial

views of the members, so they take a more extreme position. Both these processes cause

the group to develop more polarized attitudes. Group polarization leads groups to adopt

extreme attitudes. In some cases, this can be disastrous.

CONFLICT

Conflict can be defined as the “process that begins when one party perceives that another

party has negatively affected something that the first party cares about1.” Conflict must be

perceived by either of the parties. Stiff opposition due to incompatibility of organizational

goals characterizes it. Conflict can also be caused due to difference about interpretation of

facts or issues involved. Conflict takes an ugly turn and takes a form of violence due to

disagreement based on behavioral expectations. It could be covert or overt and can be seen

when one observes violent acts of individual in organizations. Austin defines conflict “as a

disagreement between two or more individuals or groups, with each individual or group

trying to gain acceptance of its views or objective over others.”

Functional and Dysfunctional Conflict

Conflict that supports the individual and group goals, which leads to higher performance is

called functional conflict while the conflicts that hinders individual or group performance is

called dysfunctional conflict. The latter generally takes destructive form. There is thin margin

between the two types of conflicts mentioned above. While evaluating the impact of conflict

on goal achievement, individual perception and effect of group performance should be

evaluated. If the conflict contributes towards higher performance then the conflict should be

called functional or otherwise dysfunctional.

Positive points of functional conflict is as under:

Functional Conflict

1. Conflict develops cohesiveness within the group members. A group goal therefore

becomes a priority. Individual goals are then relegated to secondary position.

2. Conflict leads to innovation and creativity, as there is competing sprit among various

groups.

3. Conflict provides challenging work environment and enhances opportunities for self-

development of group that leads to formation of group norms.

4. Enhance work culture leads to upgradation of various systems within the organization

and therefore growth is achieved.

Dysfunctional Conflict

Conflict may turn out to be detrimental and disastrous and having deleterious effects.

Dysfunctional nature of conflict can be identified in the following circumstances:


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1. When conflict does not lead to solution.

2. When basic goals of the organization are neglected.

3. People should be treated with due respect. If it is violated and a climate of distrust and

suspicion is created people feel defeated and demeaned which develops antagonism

and leads to conflict.

4. Conflict may lead to absenteeism and subsequently to increased turn over if not

controlled in time.

5. Dual management style may create hatred and lead to dysfunctional conflict.

6. Disagreement with management may be considered as disloyalty, if this environment

prevails, an opportunity for creativity would be lost and employees would loose

interest in their job. This would lead to increased conflicting situations.

Conflict Process

Pondy developed a conflict process model, which is useful to understand how a conflict

starts. He has delineated five steps that he calls as ‘conflict episode’. These are latent

conflict, perceived conflict, felt conflict manifest conflict, conflict resolution and conflict aftermath. The process is adopted and explained Figure below.

Pondy’s Conflict episode Process

Latent Conflict

It is a first stage of conflict when conflict-promoting situations appear on the scene between

individuals and groups. In this stage potential conflict inducing forces exist. For example

demand for various resources by departments when some may get and be satisfied and others

may not get and be dissatisfied. Hence there may exist a situation between two groups. At

this stage the seeds of dissatisfaction has been sown.

Perceived Conflict

When one party frustrate the design of the other party, people perceive that a confluctual

conditions exist. For example sales manager may need additional budget for promotional

activities which financial manager may not release. The sales manager may attribute lack of

finance as potential cause for fall in sales. Thus a conflict between the two may brew. At this

stage the conflict does not surface.

Felt Conflict At this stage, the conflict is actually felt and cognised. As stated earlier, the funds are not

released by the finance manager and the problem is being surfaced and there is a likelihood of

confrontation.

Manifest Conflict

In this stage, there is not only recognition or acknowledgement of conflict but also

manifestation of conflict by covert or overt behaviour. It is a stage of open dispute. Both

parties devise their strategies to face each other. In the above example sales manager may

make his point for additional funds for promotional activities especially during festival


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season. Finance manager may openly turn down the request since he might have allotted

additional funds for procurement of better raw material for production department. Sales

manager may argue that better raw material has no meaning unless the facts are brought to

the notice of customers, which can only be done through promotional campaign. The debate

may be unending and frustrating.

Conflict Aftermath Once the conflict is resolved between the two parties, there is always a party, which is looser

because the resolution is the outcome of win – lose or the compromise strategy, a stage is set

for subsequent conflict episodes. A party, which feels defeated, may start preparations and be

on the look out for the assault to take the revenge. Conflict resolution has been added as an

additional box in the figure to elucidate that conflict aftermath is a direct function of the

results of the conflict resolution style adopted and exercised in any given situation.

Conflict Management

1. Avoidance: One or both parties could avoid facing the conflict. The situation pertains

to un-cooperative and unassertive behaviour on the part of parties involved. A Party

may avoid facing B Party. When situation reaches a point of negligence by A Party, B

Party may take advantage of the situation. By avoiding, the individual might side step,

postpone or even withdraw from the conflictuating situation. This strategy is useful

when issues involved in conflict are of a very minor nature or when more important

issues deserve attention.

2. Competition: This strategy may be adopted when other strategies of conflict

resolution are not workable. Competing is also useful in emergencies where quick

decisions are required. In this strategy power must be used unilaterally as a weapon

when unpopular decisions like termination, pay cuts, layoffs, cost cutting and

enforcing discipline are required to be taken. This strategy is based on win-lose

principle of managing conflicts.

3. Collaboration: Strategy of collaboration involves attempt of one party to work with

the other party in cooperative manner and find solutions to the problem for mutual

benefits. The strategy involves identification of areas of disagreement, examining the

issue in greater detail and a workable solution arrived at, which is for mutual benefit.

This strategy signifies when two sets of solutions are important for both parties to be


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compromised. Hence finding integrated solution become imperative. This strategy

signifies joint efforts, gain for both parties and integrated solutions arrived at by

consensual decisions.

4. Accommodation: In accommodating mode a person scarifies his own interest for

accommodating other person’s interest. It is form of selfless generosity, obeying other

person’s point of view. This mode is usually adopted when other person’s view is

stronger, you want to achieve goodwill and indicate that you are reasonable. This

strategy of conflict resolution is important when you want other person to give at a

later date when it favours you.

5. Compromise: In conflict situation, compromising is a mode when both parties try to

find out some expedient, mutually acceptable solution that sacrifies both the parties

partially. In compromising, there is no clear winner or loser. None of the party is fully

satisfied as they ration the object of conflict and accept the solution which is not

complete to either of the parties. In compromising, there is a possibility of an

atmosphere of ‘gamesmanship’ in the work environment. There is also a possibility of

compromising on certain principles of behaviour which is not desirable.

STRESS Stress is a state of discomfort experienced by an individual. Loss of emotional stability is the

general expression of stress. It is generally apparent when the individual experiences a

biological disorder. Stress has a positive association with the age, life styles, time constraints

and the nature of occupation. Certain occupations are more prone to the stress than the others.

For instance, drivers of vehicles, doctors, lawyers and managers are more likely to get stress

than teacher, bankers and operating personnel. Individuals feel stress when the needs or

desires are not accomplished in the normal expected ways. This is because of the natural

constraints operated on the individuals. The more the intensity of the desire and greater is the

uncertainty associated with the achievement of the goal, the greater is the degree of stress.

Employees are working for longer hours, taking on the work once done by laid-off

colleagues, meeting tighter deadlines and cutting back on expenses are some of the causes of

stress. Combined to this with the double-income family demands of monthly mortgages,

childcare issues and aging parents, and the result for many is anxiety, sleeplessness,

irritability, and physical and mental deterioration. Perhaps these are the potential reasons for

stress in the employees.

The following are the features of stress.

• Stress is both psychological and physical aspect.

• It is common to both the genders.

• It results from the deviation of expectations from actual situation.

• It is symptomatic. Potential stress appears with the symptoms. If the potential stress is

ignored it leads to actual stress.

• Stress is treated to be negative. Nevertheless, it has positive consequences. This is

called as eustress.

• Stress is an interactive concept. It does not spring from the internal organs of the

individual. It comes from the interaction of the human being with the environment.

Thus, environment has a profound influence on the stress.


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• Stress is generic term. If it is applied to the context of organisation, it is known as

work stress or job stress.

• Stress occurs only when the human being feels mediation of the internal or external

factors.

Intra Organisational Factors Individual Factors: Individual factors, which cause stress include: personality and individual

differences, family problems, economic problems, life styles and role demands.

i) Personality and individual differences: Individual basic dispositions are the main reason

for potential stress. Introversion, extroversion, masculinity, rigidity, locus of control, personal

life, demographic differences such as age, health, education and occupation are some of the

reasons causing stress in individuals. It is found that type A personality is prone to more

stress than type B personality. Type A personality is characterised by emotion and sensitivity

to organisation goals, competitive spirit and achievement oriented behaviour. This leads to

frustration even for small deviations from the expectations, thus feeling of more stress. Type

B personality is typically relaxed, carefree, patient and less serious in achieving objectives.

Thus, he never feels stress.

ii) Family Problems: Family issues influence the personal life of individuals. poor marital

relationships, nagging wife, family separations, extra marital relationships, disturbing

children, poor settlement of family members, aging parents, dual working couple, death of

spouse or other close family member are some of the reasons for greater stress in the

individuals.

iii) Economic Problems: Economic difficulties are the main cause of stress. Poor

management of personal finances, heavy family expenditure, and constant demand for

money, poor incoming earning capacity and slow financial growth in the job are some of the

economic reasons responsible for greater stress.

iv) Life Styles: Life Styles of individuals can cause stress. The following situations of life

style cause stress:

• Sedentary life styles cause greater stress.

• Individuals experiencing certain unique situations may be compelled to alter their attitude,

emotions and behaviour. These are known as life trauma. Life trauma is potential reason for

stress.

• Faster career changes bring more responsibilities to the individuals. Persons occupying

higher positions in the younger age are likely to get heart attacks due to greater stress. This is

because of inability to adapt to the new carrier responsibilities.

v) Role Demands: Individuals play multiple roles in their personal life and organisations. In

their personal life, they play the roles of family head, husband, father, brother and son. In

social life they play the roles of club members, informal community group members,

members of recreation groups, religious groups and a number of other social groups.

Similarly in organisations, employees play the role of superior, subordinate, co-worker, union

leader, informal group leaders etc. Incidentally, all these roles are performed simultaneously.

Thus, they cause anxiety and emotion. Another potential reason is role conflict. It arises

because of poor role perception, role ambiguity, role overload and role overlapping. Role

ambiguity and stress are positively related.

Organisational Factors: i) Working Conditions: Working conditions and stress are inversely related. Employees

working with poor working conditions are subject to greater stress. The factors that lead to

more stress are crowded work areas, dust, heat, noise, polluted air, strong odour due to toxic

chemicals, radiation, poor ventilation, unsafe and dangerous conditions, lack of privacy etc.

ii) Organisational Tasks: Organisational tasks are designed to meet the objectives and goals.

Poorly designed tasks lead to greater stress. Task autonomy, task inter-dependency, task


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demands, task overload are some of the potential reasons for stress in organisations. For

instance greater the task interdependence, greater is the coordination required. This requires

employees to adjust themselves to coworkers, superiors, and subordinates, irrespective of

their willingness. They are expected to communicate, coordinate, exchange views, with other

people irrespective of caste, creed, gender, religion and political differences. Lack of

adjustment and poor tolerance to others lead to greater degree of stress.

iii) Administrative Policies and Strategies: Employee’s stress is related to certain

administrative strategies followed by the organisations. Down sizing, competing pressure,

unfair pay structures, rigidity in rules, job rotation and ambiguous policies are some of the

reasons for stress in organisations.

iv) Organisational Structure and Design: As pointed out earlier organisational structure is

designed to facilitate individual’s interaction in the realisation of organisational goals. Certain

aspects of design like specialisation, centralisation, line and staff relationships, span of

control, and organisational communication can severely create stress in organisations. For

example, wider span of management compels the executive to manage large number of

subordinates. This may create greater stress. Similarly, frequent line and staff conflict lead to

obstacles in the work performance. Inability to resolve the conflicts lead to stress.

v) Organisation Process and Styles: A number of organisational processes are designed for

meeting organisational goals. Communication process, control process, decision making

process, promotion process, performance appraisal process, etc. are designed for realizing

organisational objectives. These processes limit the scope of functioning of employees.

Improper design of various organisational processes leads to strained relationships among the

employees. They may also cause de-motivation and job dissatisfaction. Consequently,

employee feels stress in adapting to the processes.

vi) Organisational Leaderships: Top management is responsible for creation of a sound

organization climate and culture by appropriate managerial style. The climate provided

should be free of tensions, fear, and anxiety. Authoritarian leadership style creates a directive

environment in which employees are pressurised to attain targets. They work under

impersonal relationships and tight controls. This creates greater work stress to employees. On

the other hand, a climate of warm and friendliness, scope for participation in decision

making, non financial motivation and flexibility are encouraged under democratic leadership

style. This relieves stress in the employees. Therefore, employees working under

authoritarian leadership styles experience stress than employees working under democratic

leadership style.

vii) Organisational Life Cycle: Every organisation moves through four phases of

organisational life cycle. They are birth, growth, maturity and decline. In each of these stages

the structure and the design of organisation undergoes frequent changes. In addition, human

beings are subject to metamorphosis to adapt to the stages in the life cycle. In this process,

employees are subject to job stress. For instance in the initial stages of organisational birth,

stress is caused because of ambiguous policies and designs. In the growth stage, employees

experience stress due to failure to meet conflicting demands. At the time of decline, stress is

caused due to down sizing, retrenchment and loss of financial rewards and changing

organisational systems.

viii) Group Dynamics: Groups are omni present in organisations. Groups arise out of

inherent desire of human beings and spontaneous reactions of people. In organisations both

formal groups and informal groups exist. A formal group exist in the form of committees,

informal group exit among different levels of organisation. Groups have a number of

functional and dysfunctional consequences. They provide social support and satisfaction,

which is helpful in relieving stress. At the same time, they become the source of stress also.

Lack of cohesiveness, lack of social support, lack of recognition by the group and

incompatible goals cause stress. Thus a number of organisational factors cause stress in the

individuals. Now let us learn about the extra-organisational factors.


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Extra-Organisational Factors

Environmental Factors: Environmental factors are extra organisational. Nevertheless, they

create job stress in the individuals. These are internal and external factors. Most of the

internal environmental factors relate to the organisational goals, management systems,

structure, processes and design of organisations.

They are discussed in the preceding section. External environmental factors relate to the

general environment of the organisation. They are political, economical, technological, legal,

ecological, governmental, social, cultural and ethical. Certain propositions describing the

impact of environment on stress are presented below:

i) The political party in power as per their ideology enacts legislation in the Parliament. As

the new laws and regulations are enacted by the new political party, the political changes

bring uncertainty in the environment. This compels employees to adapt to the new legal

order. This creates stress.

ii) Economic environment deals with income levels, demand and supply, inflation etc.

Changes in these factors may require more work or better strategy to cope up with the

environment. This creates stress when the employees are unable to adjust to the new

situations. For instance, increase in inflation levels creates pressures on the employee income

levels leading to stress.

iii) Technological changes bring new methods of production and new ways of handling the

organisational tasks. Employees are required to learn new skills in order to discharge their

jobs effectively. Unable to cope up with the new technology creates stress in the employees.

For example, bank employees felt stress when the bank management decided to introduce

computers.

iv) Legal environment consists of complex web of laws and regulation intended to control

the business operations. Organisations are required to follow the legal provisions otherwise

they are subject to prosecution. Practical difficulties arise in the implementation of the

legislative framework. Employees who are unable to respond properly to the laws and

regulations find themselves in stressful situation.

v) The government is enacting legislation to protect the ecological environment in the

country. Organisations are compelled to adapt to the legislative framework protecting the

ecological environment. Protecting the ecological balance becomes a cause for potential

stress.

vi) Government Administration is composed of the administrative machinery and

institutions that enforce the laws, regulations, policies and other government instructions. The

bureaucratic practices of the administrative machinery can create stress in the executives.

vii) Social, cultural and ethical environment can bring stress in the individuals. Social

factors influence the life styles of employees. Certain social security measures such as health

protection, civic facilities and social groups reduce stress in the employees. Certain

sociological variables such as race, sex, social class, gender etc., and cultural factors such as

beliefs, customs and traditions cause potential stress.

Certain other environmental factors that result in stress in recent times are stock market

crashes, frequent elections, downsizing, information technology and the related changes in

the business. Career oriented couples, racial and gender discriminations, health hazards due

to pollution and imbalance in the natural environment etc. are contributing to stress.

Consequences of Stress

The positive and negative consequences are discussed below:

1. Physiological Consequences: Stress influences the biological system of the human

being. Certain visible forms of stress are increased blood pressure, proneness to heart

disease, cancer, sweating, dry mouth, hot and cold flashes, frustration, anxiety,

depression, increased level of cholesterol, ulcer, arthritis etc. Physical stress increases

the body metabolic rate. This results into malfunctioning of internal gland and


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consequently the body disorder. This is felt in the form of increasing heart beating,

increase in breathing rate and headache. This creates biological illness. The physical

stress also creates psychological problems. In fact, physical stress and physiological

disorders are interrelated. However, physical disorders and stress always need not

associate positively. This is because of complexity of symptoms of physical stress and

lack of objective measurement of impact of stress on bodily disorders.

2. Psychological Consequences: Psychological consequences are interrelated to

biological consequences. They are invisible, but affect the employees’ job

performance. Psychological stress creates a pressure on human brain. This is

expressed in terms of certain psychological symptoms such as anger, anxiety,

depression, nervousness, irritation, tension, boredom, aggressiveness, moodiness,

hostility and poor concentration. Tensions, anxiety, and emotions lead to

procrastination. Psychological stress produces interpersonal aggressions,

misunderstanding in communication, poor interpersonal communication and low

interpersonal attraction. This is demonstrated through aggressive actions like

sabotage, increased interpersonal complaints, poor job performance, lowered self-

esteem, increased resentment, low concentration on the job and increased

dissatisfaction. Psychological stress produces harshness in the behaviour and may

lead to assumption of authoritarian leadership style by the superior executive.

3. Behavioural Consequences: Stress has an impact on employee’s behaviour. An

abnormal behaviour is observed in those individuals who are prone to stress. A

change in eating habits, sleep disorder, increased smoking, alcoholism, fidgeting and

aloofness are some of the behavioural changes observed in stressful employees.

Sometimes stress leads to anxiety, apathy, depression and emotional disorder. This

leads to impulsive and aggressive behaviour and frequent interpersonal conflicts.

Under eating, overeating, drug abuse and sleeplessness are some of the behavioural

consequences. The following are some propositions relating to stress and behaviour:

i) Perception: Stressful individuals develop tension and anxiety. As a result,

their level of understanding considerably decreases. When perceptual

distortions occur in the employees, it may adversely affect decision making

process, interpersonal understanding, interpersonal communication and

capacity to work with groups. They become stress intolerable. All these lead to

increased levels of interpersonal conflicts.

ii) Attitudes: Continued stressful environment creates certain permanent negative

impressions in the mind of the employees. These permanent impressions

adversely influence their work performance. For example, an employee

developing a negative attitude on work, superior, working conditions,

organisational climate and culture intentionally decreases his output. He also

becomes demoralised and the motivation level decreases.

iii) Learning : Employees in organisations continuously learn new skills and

techniques. Learning new methods and techniques to adapt themselves and

discharge their jobs effectively is inevitable to employees. Stressful employees

can not learn the things quickly.

4. Organisational Consequences : Stress has negative impact on the performance of

the job. Organisations face the problems of poor performance and other negative

consequences. Some of them are described below:

i) Absenteeism: Employees subject to stress were found to addict to drugs and

alcohol. Thus, they abstain from the jobs frequently. This creates discontinuity

in the jobs and adversely effect performance of other employees.

ii) Turnover: Turnover and stress have shown some relationships. An employee

experiencing continued stress develops disgust and frustration. Therefore, they

are likely to change their jobs.


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iii) Decision-Making: Excessive stress distorts perception of managers. This

adversely effects their capacity to take decision. Thus, stressful executives

become irrational in the decision making. This leads to loss of organisational

resources and reputation.

iv) Disturbed Customer Relationships: Employees experiencing excessive stress

develop irritation, looses emotional stability and emotional tolerance.

Intolerance impels them to pick up conflicts easily due to misunderstandings.

Employees dealing with the customers and the public disturb relationship due

to their inpatient behaviour. For instance sales persons, bank employees,

public relation executives are required to be more emotionally stable.

Otherwise, customers dealing with them will have trouble in dealing with the

company. This also creates poor impression on the corporate image of the

organisation.

Stress management

Individual and organisational stimuli causes stress, and the implications are more negative at

individual and organisational levels. It needs to be managed both by adopting individual and

organisational strategies. The individual management techniques are more popular than

organisational management techniques. Let us learn the strategies of stress management in

detail.

Individual Management

Individuals assume automatic responsibility and look for ways and means of dealing with

their stress.

Individuals are more concerned about their health. There is an increasing rate of health clinics

and health consciousness observed in recent times. Following are some of the techniques

which individuals can adopt for reducing stress :

1) Time Management : Time management and stress are inversely related. Improper and

poor management of time are the root cause of a greater degree of stress. Improper and

inadequate utilization of time cause anxiety.

2) Physical Management : Management of stress relates to understanding one’s own

biological and body conditions. Physical exercises greatly help in relieving tension and stress.

3) Psychological Management : Most of the stresses arise because of psychological

tensions.

Therefore, it is suggested that managing psychological activities lead to effective

management of stress.

The following are some of the psychological management techniques.

i) Relaxation : Relaxation of mind through meditation, hypnosis and biofeedback can

effectively reduce mental tensions. Meditation involves silently sitting on the ground taking

deep inhalation and chanting mantra. This takes the mind into deep relaxation.

ii) Behavioural Self-control: Stress also results from behavioural disorders. Exercising

proper control over behaviour in dealing with others can bring down the chance of stress.

Self-introspection brings self-awareness of the individual. Similarly knowing the antecedents

and consequences of own behaviour enables behavioural self-control. Stress can be relaxed

by developing proper perception, practicing good listening, maintaining calm and tension free

mind empathy and positive attitude are some of the behavioural self control techniques.

iii) Cognitive Therapy: It is a technique of clinical psychology. Cognitive therapy involves

knowing ones’ own emotions to release anxiety and tension. In this technique, people are

made to understand the reasons causing stress in them by the process of self-observation. For

example, if an employee develops a feeling that he is incompetent to handle a new job,

counselling is provided to develop a confidence of competence to handle all the new jobs.


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Thus, with the help of cognitive therapy, a positive impact is created for the mental

satisfaction. Cognitive therapy enables people to exercise self- control for relaxing stress.

iv) Yogic Management : Yoga practice involves Asana, Pranayama, Mudra and Kriya.

Practicing a number of yogasana relaxes muscels, reduces blood pressure, controls asthma,

relieves neurological problems, improves lung capacity, enhances proper flow of blood and

helps relax tensions and strains. 4)

Organisational Management

In modern organisations, human resources are vital resources. Most of the organisational

stresses are caused by the structure and design of the organisation, policies, programs and

procedure of the administration and due to managerial styles and strategies. Thus

organisations are interested in finding out the organizational stressors and remove them as far

as possible. Organisations adapt the following techniques of stress management.

1) Selection and Placement Policy: Stress and personality characteristics of employees are

closely related. Thus selecting the employees by a proper personality fit suitable to jobs

minimise the chance of stress in the individuals. For instance a sales person jobs requires

extensive travelling rather than experience. If a person having a poor attitude of travelling is

selected, he is likely to experience more stress in performing the job. Therefore, proper

recruitment and selection policy should be followed by the organisation to reduce stress.

2) Goal Setting: Goal ambiguity, lack of proper perception of goals, challenging goal and

unattainable goals cause stress in individuals. Therefore, organisations should follow a

strategy of participation in goal setting to provide motivation, reduce frustration and

ambiguity of goals. Management by Objectives (MBO) is an appropriate technique of goal

setting which reduces stress.

3) Job Enrichment and Job Design: Job enrichment provides motivation to the employees.

It enriches job factors such as responsibility, recognition, and opportunity for advancement,

growth and selfesteem. Routine, unstructured and poorly designed jobs cause greater stress in

individuals. Job redesign provides more responsibility, more meaningful work, more

autonomy and increased feed back. This provides greater control over work activities and

reduces dependence on others. Therefore, job enrichment and job redesign provide an

effective way of reducing stress.

4) Role Clarity: Organisational stress is associated with role ambiguity, role overlap, lack of

role clarity and role conflict. Proper role definition helps employees understand their role in

organization and appraise interpersonal roles. This reduces the chance of role conflict and

increases role compatibility. This eliminates stress in the individuals. Wherever role conflict

arises, counselling and negotiation can be used to resolve interpersonal role conflict to avoid

stressful situations.

5) Communication and Counselling: Barriers in communication are potential moderators of

organisational stress. In organisations formal communication creates a number of problems of

inter personal misunderstandings. Thus redesigning the formal communication channels can

improve understanding and consequently reduce stress caused by communication bottlenecks.

Counselling is exchange of ideas and views in a free and fair manner. It is intended to share

problems of employees and cope up with the stressful situation. Counselling consists of

advice, reassurance, communication, and release of emotional tensions, clarified thinking and

reorientation. The techniques of counselling are non-directive, participative and directive.

6) Carrier Planning and Development: Employees in general are free to plan their careers.

However, organisations also aim at employee development. The employee development is

aimed at the enrichment of skills and the development of personality for undertaking future

managerial jobs. Stress is caused when employees’ expectations of their career in

organisation are not fulfilled and when employees get promotion without the development of

corresponding skills. Organisations take less interest in career planning of the employees.


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Designing appropriate career plans, education programs, development programs and

organisation development considerably reduce employee’s stress.

7) Democratic Leadership: Democratic leaders create confidence in the subordinates and

allow participation in the decision making process. They create an atmosphere of warmth,

friendship, and supportive climate. Under such climate employees feel satisfied, motivated

and psychologically committed to the achievement of objectives. In addition, communication

is open, conflicts are avoided and coordination improved. This enables employees to relieve

stress and promote healthy work.

8) Organisation Climate: Organisation design is the basic reason for job stress.

Bureaucratic, directive and ambiguous administration and poor organisational climate leads

to greater stress. A sound organisation climate and culture characterised by sound

administrative policy, good organizational communication, participative culture and

supportive climate ensure reduction of stress.

9) Wellness Programmes: Programmes that focus on employee’s physical and mental

condition organised by the management are known as wellness programmes. As part of these

programmes, workshops, seminars and counselling sessions are conducted to help the

employees understand the dangers of smoking, alcoholism and drug abuse. They promote a

positive attitude for eating better stuff, fighting obesity, doing regular physical exercise and

developing positive personality. However, these programmes are successful only when the

employee himself takes personal interest in his physical and mental health. Organisations act

as only a catalyst to promote programmes that facilitate reduction of stress.

10) Quality of Work Life: The concept has been increasingly recognised in the recent years.

This technique involves improving the working conditions and other internal and external

aspects of work life. In addition, providing good housing facilities, living conditions, social

and recreational facilities, training and development of employees for overall development of

human resources in the organization will develop quality of work life.

ORGANIZATIONAL CHANGE

Change is inevitable. Nothing is permanent except the change. It is the duty of the

management to manage change properly. Organizations must keep a close watch on the

environment and incorporate suitable changes if the situation so demands. Change is a

continuous phenomenon. Organizations must be proactive in affecting change. Even in most

stable organizations change is necessary just to keep the level of stability. Change refers to

any alteration which occurs in over all work environment of an organization. It may relate to

change in technology, organizational structure, working processes, work environment,

organizational policy and even the roles people play. Introduction of change in one part in an

organization forces change in other part. If the change is beneficial people accept it willingly.

Change Process Kurt Lewin2 proposed Three Stage Model of the change process for moving the organization

from present position to the changed position. This is as under:

Stage 1: Unfreezing : Creating motivation and rediness to change through

(a) Disconfirmation or lack of confirmation.

(b) Creation of gulit or anxiety.

(c) Ensure subordinates of psychological safety.

Stage 2: Changing through cognitive restructuring : Helping the client to see things, judges

things, feel things differently based on new point of view obtained through.

(a) Identifying with a new role model, mentor, etc.

(b) Scanning the environment for new relevant information.


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Stage 3: Refreezing: Helping the client to integrate the new point of view into

(a) The total personality and self – concept.

(b) Significant relationship.

1. Unfreezing: Process of unfreezing makes individuals ready for change. Lewin believes

that employees must be informed in advance of impending change and that they should

not be surprised. Unfreezing entails unfreezing the old behaviour or situation. Edgar

Schein *3 took this excellent idea propagated by Lewin and improved by specifying

psychological mechanism involved in each stage of the model. Unfreezing involves

creating motivation and readiness to change by creating an environment of

disconfirmation of existing psychological safety in the changed pattern of behaviour. This

can be achieved by making announcements, meetings and promoting the idea throughout

the organization through bulletin, boards, personal contacts and group conferences. The

unfreezing process basically cleans the slate so that fresh behavioural patterns, customs,

traditions can be imprinted which can then become a new way of doing things.

2. Moving: Once unfreezing process is completed, moving takes place. Moving is

incorporating change. Persons undergo cognitive restructuring. The process is carried out

by the following three methods as proposed by Kelman.

• Compliance: Compliance is achieved by introducing rewards and punishments. It

has been established that individual accepts change if he is rewarded or punished.

This is a behaviour modification tool.

• Identification: Members are psychologically impressed upon to select their role

model and modify behaviour. If a leader can act as a role model the change is

easier.

• Internalization: Internalization involves internal changing of individual’s thought

processes in order to adjust to a new environment. Members are advised to carry

out soul searching and adopt a new behaviour.

3. Refreezing: It is related to integrate the new behaviours into the person’s personality and

attitude. It is referred to stabilization. The change behaviour must necessarily fit into the

social surroundings. Refreezing takes place when the new behaviour is adopted in a

normal way of life. New behaviour must replace the old on a permanent basis. New

behaviours must be re-enforced continuously so that it does not diminish. Change process

is not a one time process but it is continuous hence unfreezing, change and refreezing

must also be continuous.

Forces of Change

1. External Forces: When the organization's general or task environment changes, the

organization's success often rides on its ability and willingness to change as well. Modern

manager is change-conscious and operating in the constantly changing environment.

Many external changes bombard the modern organizations and make change inevitable.

The general environment has social, economic, legal and political and technological

dimensions. Any of these can introduce the need for change. In recent years, far-reaching

forces for change have included developments in information technology, the

globalization of competition, and demands that organizations take greater responsibility

for their impact on the environment. These forces are discussed below:

(a) Technological Change: Rapid technological innovation is a major force for

change in organizations, and those who fail to keep pace can quickly fall behind.

It is perhaps the greatest factor that organizations reckon with.


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For example, the substitution of computer control for direct supervision is

resulting in wider spans of control for managers and flatter organizations.

Technological innovations bring about profound change because they are not just

changes in the way work is performed. Instead, the innovation process promotes

associated changes in work relationships and organizational structures.

Sophisticated information technology is also making organizations more

responsive. The team approach adopted by many organizations, leads to flatter

structures, decentralized decision making and more open communication between

leaders and team members.

(b) Globalization: The global economy means competitors are likely to come from

across the ocean. The power players in the global market are the multinational and

trans-national organizations. This has led companies to think globally.

Globalization, for an organization, means rethinking the most efficient ways to

use resources, disseminate and gather information and develop people. It requires

not only structural changes but also changes in the minds of employees.

Successful organizations will be the ones that can change in response to the

competition. They will be fast on their feet, capable of developing new products

rapidly and getting them to market quickly.

(c) Social and Political Changes: A firm's fate is also influenced by such

environmental pressures as social and political changes. Many new legal

provisions in the corporate sector get introduced every time that affects the

organizations.

(d) Workforce Diversity: Related to globalization is the challenge of workforce

diversity. Workforce diversity is a powerful force for change in organization. The

demographic trends contributing to workforce diversity are

• The workforce will see increased participation form females, as the

majority of new workers will be female.

• The workforce will be more culturally diverse than ever (part of this is

attributable to globalization).

• The workforce is aging. There will be fewer young workers and more

middle aged working.

(e) Managing Ethical Behaviour: Employees face ethical dilemmas in their daily

work lives. The need to manage ethical behaviour has brought about several

changes in organizations. Most centre on the idea that an organization must create

a culture that encourages ethical behaviour. Society expects organizations to

maintain ethical behaviour both internally and in relationships with other

organizations. Ethical behaviour is expected in relationships with customers,

environment and society. These expectations may be informal or they may come

in the form of increased legal requirements.

2. Internal Forces: Besides reacting to or anticipating changes on the outside, an

organization may change because someone on the inside thinks a new way of doing

things will be beneficial or even necessary. Pressures for change that originate inside the

organization are generally recognizable in the form of signals indicating that something

needs to be altered. These internal forces are discussed below:

(a) Changes in Managerial Personnel: One of the most frequent reasons for major

changes in an organization is the change of executives at the top. No two

managers have the same styles, skills or managerial philosophies. Managerial

behaviour is always selective so that a newly appointed manager might favour

different organizational design, objectives procedures and policies than a

predecessor. Changes in the managerial personnel are thus a constant pressure for

change.


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(b) Declining Effectiveness: Declining effectiveness is a pressure to change. A

company that experiences losses is undoubtedly motivated to do something about

it. Some companies react by instituting layoffs and massive cost cutting

programmes, whereas others view the loss as symptomatic of an underlying

problem, and seek out the cause of the problem.

(c) Changes in Work Climate: Changes in the work climate at an organization can

also stimulate change. A workforce that seems lethargic, unmotivated, and

dissatisfied is a symptom that must be addressed. This symptom is common in

organizations that have experienced layoffs. Workers who have escaped a layoff

may find it hard to continue to be productive. They may fear that they will be laid

off as well and may feel insecure in their jobs.

(d) Deficiencies in the Existing System: Another internal pressure for organizational

change is the loopholes in the system. These loopholes may be unmanageable

spans of control, lack of coordination between departments, lack of uniformity in

politics, non-cooperation between line and staff etc.

(e) Crisis: A crisis may also stimulate change in an organization. Strikes or walkouts

may lead management to change the wage structure. The resignation of a key

decision maker is one crisis that causes the company to rethink the composition of

its management team and its role in the organization.

(f) Employees, Expectations: Changes in employees expectations can also trigger

change in organizations. These forces may be:-

• Employees' desire to share in decision-making.

• Employees' demand for effective organizational mechanism.

• Higher employees’ expectation for satisfying jobs and work environment.

• Employees' desire for higher wage payment.

All these forces necessitate change in organizations.

Resistance to Change People often resist change in a rational response based on self-interest. Resistance to change

doesn't necessarily surface in standardized ways. Resistance can be overt, implicit,

immediate, or deferred

The sources of resistance to change can be categorized into two sources: individual and

organizational.

1. Individual Resistance: One aspect of mankind that has remained more or less constant is

his innate resistance to change. Individuals resist change because they attach great preference

to maintain status quo. Individual sources of resistance to change reside in basic human

characteristics such as perceptions, personalities and needs. The following are the reasons:-

(a) Economic Reasons: The economic reasons to fear change usually focus on one or more

of the following:

• Fear of technological unemployment.

• Fear of reduced work hours and consequently less pay.

• Fear of demotion and thus reduced wages.

• Fear of speed-up and reduced incentive wages.

Changes in job tasks or established work routines can also arouse economic fears if people

are concerned they won't be able to perform the new tasks or routines to their previous

standards, especially when pay is closely tied to productivity.

(b) Fear of the Unknown: Change often bring with it substantial uncertainty.

Employees facing a technological change, such as the introduction of a new computer

system, may resist the change simply because it introduces ambiguity into what was once a


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comfortable situation for them. This is especially a problem when there has been a lack of

communication about the change.

(c) Fear of Loss: When a change is impending, some employees may fear losing their jobs,

particularly when an advanced technology is introduced. Employees may also fear losing

their status because of a change. Another common fear is that changes may diminish the

positive qualities the individual enjoys in the job. For example, computerizing the customer

service positions, threaten the autonomy that sales representatives previously enjoyed.

(d) Security: People with a high need for security are likely to resist change because it

threatens their feeling of safety.

(e) Status quo: Perhaps the biggest and most sound reason for the resistance to change is the

status quo. As human beings, we are creatures of habit. Change may pose disturbance to the

existing comforts of status quo. When confronted with change, this tendency to respond in

our accustomed ways becomes a source of resistance. Change means they will have to find

new ways of managing them and their environment – the ways that might not be successful as

those currently used.

(f) Peer Pressure: Individual employees may be prepared to accept change but refuse to

accept it for the sake of the group. Whenever change is unwilling to the peers, they force the

individuals who want to accept change to resist change.

(g) Disruption of Interpersonal Relationships: Employees may resist change that threatens

to limit meaningful interpersonal relationships on the job.

(h) Social Displacement: Introduction of change often results in disturbance of the existing

social relationships. Change may also result in breaking up of work groups. Thus when social

relationships develop, people try to maintain them and fight social displacement by resisting

change.

2. Organizational Resistance: Organizations, by their very nature are conservative.

They actively resist change. Some of the organizational resistances are explained below:

(a) Resource Constraints: Resources are major constraints for many organizations. The

necessary financial, material and human resources may not be available to the organization to

make the needed changes. Further, those groups in organization that control sizable resources

often see change as a threat. They tend to be content with the way things are.

(b) Structural Inertia: Some organizational structures have in-built mechanism for

resistance to change. For example, in a bureaucratic structure where jobs are narrowly

defined, lines of authority are clearly spelled out change would be difficult. This is so

because formalization provides job descriptions, rules, and procedures for employees to

follow. The people who are hired into an organization are chose for fit; they are then shaped

and directed to behave in certain ways. When an organization is confronted with change, this

structural inertia acts as a counterbalance to sustain stability.

(c) Sunk Costs: Some organizations invest a huge amount of capital in fixed assets. If an

organization wishes to introduce change then difficulty arises because of these sunk costs.

(d) Politics: Organizational change may also shift the existing balance of power in

organization. Individuals or groups who hold power under the current arrangement may be

threatened with losing these political advantages in the advent of change.

(e) Threat to established power relationships: Any redistribution of decisionmaking

authority can threaten long established power relationships within the organization. Managers

may therefore resist change that introduces participative decision making because they feel

threatened.

(f) Threat to expertise: Change in organizational pattern may threaten the expertise of

specialized groups. Therefore specialist usually resists change.

(g) Group Inertia: Even if individuals want to change their behaviour, group norms may act

as a constraint. For example, if union norms dictate resistance any unilateral change made by


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management, an individual member of the union who may otherwise be willing to accept the

changes may resist it.

Managing Resistance to Change Although resistance to change is a common phenomenon in organizations, it must be noted

that not all changes are resisted. In fact, if we look at any organization closely we would

probably find that far more changes are accepted than resisted. The traditional view of

resistance to change treated it as something to be overcome, and many organizational

attempts to reduce the resistance have only served to intensify it. The contemporary view

holds that resistance is simply a form of feedback and that this feedback can be sued very

productively to manage the change process. One key to managing resistance is to plan for it

and to be ready with a variety of strategies for using the resistance as feedback and helping

employees negotiate the transition. Some tactics have been suggested for sue in dealing with

resistance to change.

(a) Education and Communication: Communication about impending change is essential if

employees are to adjust effectively. The details of the change should be provided, but equally

important is the rationale behind the change. Employees want to know why change is needed.

If there is no good reason for it, why should they favour the change? Providing accurate and

timely information about the change can help prevent unfounded fears and potentially

damaging rumours from developing. It is also beneficial to inform people about the potential

consequences of the change. Educating employees on new work procedures is often helpful.

(b) Participation: It is difficult for individuals to resist a change decision in which they

participated. Prior to making a change, those opposed can be brought into the decision

process. When employees are allowed to participate, they are more committed to the change.

(c) Empathy and Support: Another strategy for managing resistance is providing empathy

and support to employees who have trouble dealing with the change. Active listening is an

excellent tool for identifying the reasons behind resistance and for uncovering fears.

(d) Negotiation: Another way to deal with potential resistance to change is to exchange

something of value for a lessening of the resistance. Where some persons in a group clearly

lose out in a change, and where groups have considerable power to resist, negotiation and

agreements are helpful. It becomes relatively easy to avoid major resistance through

negotiation

(e) Manipulation and cooperation: Manipulation refers to covert influence attempts.

Twisting and distorting facts to make them appear more attractive, withholding undesirable

information and creating false rumours to get employees to accept a change are all examples

of manipulation. It involves giving individuals a desirable role in design or implementation of

change.

(f) Coercion: Coercion is the application of direct threats or force on the resisters.

They essentially force people to accept a change by explicitly or implicitly threatening them

with the loss of their jobs, promotion possibilities and transferring them. Coercion is mostly

applied where speed is essential in implementing change and the change initiator possesses

considerable power.

Organizational Citizenship Behaviour: OCB is voluntary, informal behaviour that

contributes to organizational effectiveness. In many cases, the formal performance evaluation

system does not detect and reward it. Job satisfaction contributes greatly to the occurrence of

OCB. An example of OCB should clarify the concept. You are struggling to master a

particularly difficult piece of software. A colleague at the next desk, busy on her own rush

job, comes over and offers assistance. Irritated with the software, you are not even very

grateful at first, but within 10 minutes you have solved the problem with her help. Notice the

defining characteristics of this example of OCB: ■ The behaviour is voluntary. It is not included in her job description. ■ The behaviour is spontaneous. Someone did not order or suggest it.


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■ The behaviour contributes to organizational effectiveness. It extends beyond simply doing

you a personal favour. ■ The behaviour is unlikely to be explicitly picked up and rewarded by the performance

evaluation system, especially since it is not part of the job description.

What are the various forms that OCB might take? As the software example indicates, one

prominent form is helping behaviour, offering assistance to others. Another might be

conscientiousness to the details of work, including getting in on the snowiest day of the year

and not wasting organizational resources. A third form of OCB involves being a good sport

when the inevitable frustrations of organizational life crop up—not everyone can have the

best office or the best parking spot. A final form of OCB is courtesy and cooperation.

Examples might include warning the photocopy unit about a big job that is on the way or

delaying one’s own work to assist a colleague on a rush job. Just how does job satisfaction

contribute to OCB? Fairness seems to be the key. Although distributive fairness (especially in

terms of pay) is important, procedural fairness on the part of one’s manager seems especially

critical. If the manager strays from the prescriptions for procedural fairness we gave earlier,

OCB can suffer. If one feels unfairly treated, it might be difficult to lower formal

performance for fear of dire consequences. It might be much easier to withdraw the less

visible, informal activities that make up OCB. On the other hand, fair treatment and its

resulting satisfaction might be reciprocated with OCB, a truly personalized input. It is

interesting that OCB is also influenced by employees’ mood at work. People in a pleasant,

relaxed, optimistic mood are more likely to provide special assistance to others. Some of this

research is based on studies with salespeople, so OCB might make customer service more

competitive. Let’s look at this issue.

ORGANIZATIONAL CULTURE Organizational culture is a system of shared values and beliefs that interact with company’s

people, organizational structure and control systems to produce behavioral norms.

Characteristics 1. Individual Autonomy: This refers to the individual’s freedom to exercise his or her

responsibility. In other words, individual autonomy is the degree to which employees

are free to manage themselves; to have considerable decision making power; and not

to be continually accountable to higher management.

2. Position Structure: This refers to the extent of direct supervision, formalizations and

centralization in an organization. In other words, position structure is the degree to

which objectives of the job and methods for accomplishing it are established and

communicated to the individual by supervisors.

3. People Orientation:

This is still one of the most contentious issues in organizational culture today. How

much should be the management focus on the people? Some organizations are famous

for being employee oriented as they focus more on creating a better work

environment for its 'associates' to work in. Others still are feudal in nature, treating

employees no better than work-machines.

4. Reward Orientation: This refers to the degree to which an organization rewards

individuals for hard work or achievement. An organization which orients people to

perform better and rewards them for doing so, will have an OC characterized by high

reward orientation.

5. 5. Outcome Orientation: Some organizations pay more attention to results rather than

processes. It is really the business model of each business that defines whether the


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focus should be on the outcome or the processes. This defines the outcome orientation

of the business.

6. 6. Consideration, Warmth and Support: This refers to the extent of stimulation and

support received by an individual from other organization members. In other words, if

there is a sense of team spirit among the members of an organization, the OC is likely

to be perceived as considerate, warm and supportive.

7. Conflict: This refers to the extent to conflict present between individuals and the

willingness to be honest and open about interpersonal differences.

8. Progressiveness and Development: This aspect refers to the degree to which

organization conditions foster the development of the employees, allow scope for

growth and application of new ideas methods.

9. Innovation and Risk Taking: Risk and returns go hand in hand. Places where you take

a risk (calculated risk of course!), the chances of returns are higher. Same goes for

innovation. You could either be a follower or a pioneer. Pioneering has its share of

risks, but at times it can also have a breakthrough outcome for the organization. Thus,

innovation and risk taking is one of the main characteristics of organizational culture

defining how much room the business allows for innovation.

10. Control: This dimension refers to the degree to which control over the behavior of

organizational members is formalized. In a highly bureaucratic organization, control

systems are well defined. In a low- control organization, most of the controls are self-

regulated, i.e., individuals monitor their own behavior.

Dominant Culture

Expresses the core values that are shared by a majority of the organization’s members.

Subcultures

Minicultures within an organization, typically defined by department designations and

geographical separation.

The dominant culture expresses the core values shared by a majority of the organization’s

members. However, subcultures exist in any organization. Developing along departmental

or geographical lines to reflect common problems, situations, or experiences faced by

members, subcultures include core values of the dominant culture plus additional values

unique to members of the department.

If organizations had no dominant culture and were composed, instead, of numerous

subcultures, the value of organizational culture as an independent variable would be

significantly lessened because there would be no uniform interpretation of what

represented appropriate and inappropriate behavior. It is the “shared meaning” aspect of

culture that makes it such a potent device for guiding and shaping behavior.

Types of Culture: 1. “Collaborate (Clan)” Culture: An open and friendly place to work where people

share a lot of themselves. It is like an extended family. Leaders are considered to be

mentors or even parental figures. Group loyalty and sense of tradition are strong.

There is an emphasis on the long-term benefits of human resources development and

great importance is given to group cohesion. There is a strong concern for people.

The organization places a premium on teamwork, participation, and consensus.

2. “Create (Adhocracy)” Culture: A dynamic, entrepreneurial, and creative place to

work. Innovation and risk-taking are embraced by employees and leaders. A

commitment to experimentation and thinking differently are what unify the


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organization. They strive to be on the leading edge. The long-term emphasis is on

growth and acquiring new resources. Success means gaining unique and new products

or services. Being an industry leader is important. Individual initiative and freedom

are encouraged.

3. “Control (Hierarchy, Bureaucratic)” Culture: A highly structured and formal

place to work. Rules and procedures govern behaviour. Leaders strive to be good

coordinators and organizers who are efficiency-minded. Maintaining a smooth-

running organization is most critical. Formal policies are what hold the group

together. Stability, performance, and efficient operations are the long-term goals.

Success means dependable delivery, smooth scheduling, and low cost. Management

wants security and predictability.

4. “Compete (Market)” Culture: A results-driven organization focused on job

completion. People are competitive and goal-oriented. Leaders are demanding, hard-

driving, and productive. The emphasis on winning unifies the organization.

Reputation and success are common concerns. Long-term focus is on competitive

action and achievement of measurable goals and targets. Success means market share

and penetration. Competitive pricing and market leadership are important.

Culture’s Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system.

5. Serves as a sense-making and control mechanism for fitting employees in the

organization.

Culture as a Liability: 1. Barrier to change.

2. Barrier to diversity

3. Barrier to acquisitions and mergers

How employees learn culture

The stories which circulate through most organizations typically contain the following: a

narrative of events about the organization’s founders, rule breaking, rags-to-riches

successes, reductions in the work force, relocation of employees, reactions to past

mistakes, and organizational coping. These stories anchor the present to the past and

explain and legitimize current practices.

Repetitive sequences of activities (rituals) express the key values of the organization,

reinforce the goals that are most important, and identify the people who are either

important or expendable.

The following are examples of material symbols: an organization’s facilities, types of

executive vehicles, the size of offices, the elegance of furnishings, executive perks,

employee lounges, on-site dining facilities, and reserved parking spaces.

Organizational units use language as a way to identify members of a culture or a

subculture. Organizations, over time, develop jargon, unique terms to describe equipment,

offices, key personnel, suppliers, customers, or products related to their business. By

learning this language, members attest to their acceptance of the culture and, in so doing,

help to preserve it.


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ORGANIZATIONAL CLIMATE

Organizational climate is the aggregate perception of the members of an organization. It may

be the perception of the whole or parts of an organization. It is generally descriptive, but

invariably carries feelings and emotions regarding how an organization impacts its members.

On the other hand, organizational culture, as discussed earlier, consists also of physical and

social artifacts that are objective in nature and exist, irrespective of members’ perception,

beliefs, or values. For example, organizational structure, lines of authority, roles and

positions, vision and mission statements are all parts of culture and have independent

existence, although members’ perception of them turn them into the aspects of climate.

Organizational culture and climate overlap particularly with respect to members’ beliefs and

values regarding working and relating with each other that are inferred through ratings.

Another difference between organizational culture and climate is that culture has been

conceptualized as the organizational soul, ethos, or spirit that interacts with situational

contingencies and members’ needs and expectations to result in the perception of

organizational climate