MCOB

UNIT I NATURE AND THEORIES OF MANAGEMENT

Evolution of management Thought-Classical, Behavioral and Management

Science Approaches Management- meaning, levels, management as an art or
science, Managerial functions and Roles, Evolution of Management Theory-
Classical era- Contribution of F.W.Taylor, Henri Fayol, Neo-Classical-Mayo &
Hawthorne Experiments. • Modern era – system & contingency approach
Managerial Skills.

UNIT II PLANNING AND ORGANISING

Planning - Steps in Planning Process - Scope and Limitations - Forecasting and

types of Planning - Characteristics of a sound Plan - Management by Objectives
(MBO) - Policies and Strategies - Scope and Formulation - Decision Making -
Types, Techniques and Processes. Organisation Structure and Design - Authority
and Responsibility Relationships - Delegation of Authority and Decentralization -
Interdepartmental Coordination - - Impact of Technology on Organizational design
- Mechanistic vs Adoptive Structures - Formal and Informal Organisation.Control:
meaning, function, Process and types of Control.

UNIT III INDIVIDUAL BEHAVIOUR

Meaning of Organizational behavior, contributing disciplines, importance of

organizational behavior, Perception and Learning - Personality and Individual
Differences - Motivation theories and Job Performance - Values, Attitudes and
Beliefs - Communication Types Process - Barriers - Making Communication
Effective.

UNIT IV GROUP BEHAVIOUR

Groups and Teams: Definition, Difference between groups and teams, Stages of
Group Development, Group Cohesiveness, Types of teams, Group Dynamics -
Leadership - Styles - Approaches - Power and Politics - Organisational Structure -
Organisational Climate and Culture,Conflict: concept, sources, Types, Stages of
conflict, Management of conflict Organisational Change and Development.

UNIT V EMERGING ASPECTS OF ORGANIZATIONAL BEHAVIOUR

 Comparative Management Styles and approaches - Japanese Management
Practices Organisational Creativity and Innovation - Organizational behavior
across cultures - Conditions affecting cross cultural organizational operations,
Managing International Workforce, Productivity and cultural contingencies, Cross
cultural communication, Management of Diversity.

UNIT III INDIVIDUAL BEHAVIOUR.

The Focus and Goals of Individual Behavior

• Organizational Behavior (OB)
The actions of people at work

Organizational behavior is a academic discipline concern with describing,

understanding, predicting and controlling human behavior in an organizational
environment.

Focus of Organizational Behavior

 Individual behavior
 Attitudes, personality, perception, learning, and motivation
 Group behavior
 Norms, roles, team building, leadership, and conflict
 Organizational
 Structure, culture, and human resource policies and
practices

6 Contributing Disciplines to the Organization Behavior

Psychology.
Sociology.
Social Psychology.
Economics.
Anthropology.
Political Sciences.
Psychology
Psychology has perhaps the first influence on the field of organizational behavior because it is a
science of behavior. A psychologist studies almost all aspects Of behavior. Psychology deals
with studying human behavior that seeks to explain and sometimes change the behavior of
humans and other animals.
Psychologists are primarily interested in predicting the behavior of individuals to a great extent
by observing the dynamics of personal factors. Those who have contributed and continued to add
to the knowledge of OB are teaching theorists, personality theorists, counseling psychologists
and primary, industrial and organizational psychologists.
Sociology
The major focus of sociologists is on studying the social systems in which individuals fill their
roles. The focus is on group dynamics. They have made their greatest contribution to OB through
their study of group behavior in organizations, particularly formal and sophisticated
organizations.
Sociological concepts, theories, models, and techniques help significantly to understand better
the group dynamics, organizational culture, formal organization theory and structure, corporate
technology, bureaucracy, communications, power, conflict, and intergroup behavior.
Social Psychology
It has been defined as the scientific investigation of how the thoughts, feelings, and behavior of
individuals are influenced by the actual, imagined or implied the presence of others. It deals with
how people are affected by other individuals who are physically present or who are imagined to
be present or even whose presence is implied.
In general, sociology focuses on how groups, organizations, social categories, and societies are
organized, how they function, how they change. Social Psychology deals with many of the same
phenomena but seeks to explain whole individual human interaction and human cognition
influences culture and is influenced by culture.
Economics
Economics contributes to organizational behavior to a great extent in designing the
organizational structure. Transaction cost economics influence the organization and its structure.
Transaction costs economics implies cost components to make an exchange on the market.
Anthropology
The main aim of anthropology is to acquire a better understanding of the relationship between
the human being and the environment. Adaptations to surroundings constitute culture. The
manner in which people view their surroundings is a part of the culture.
Culture includes those ideas shared by groups of individuals and languages by which these ideas
are communicated. In essence, culture is a system of learned behavior.
Political Sciences
Contributions of political scientists are significant to the understanding of behavior in
organizations. Political scientists study the behavior of individuals and groups within a political
environment. They contribute to understanding the dynamics of power centers, structuring of
conflict and conflict resolution tactics, allocation of power and how people manipulate power for
individual self-interest.
The knowledge of political science can be utilized in the study the behavior of employees,
executives at micro as well as macro level.
So we can assume that there are various types of disciplines that involve
organizational behavior. They, directly and indirectly, influence the overall activities of OB.
Importance of Organizational Behavior
The need and importance of organisational behaviour are,
1.Skill Improvement
Study of Organizational Behavior helps to improve skills. This includes the ability of employees
and use of knowledge to become more efficient. Organisational Behaviour study also improves
managers as well as other employees work-skill.
2. Understanding Consumer Buying Behavior
It also an important part to improve the marketing process by understanding consumer buying
behaviour.
3,Employee Motivation
Organisational Behaviour (OB) helps to understand the basis of Motivation and different ways to
motivate employees properly.
4.Nature of Employees
Understanding of personnel and employee nature is important to manage them properly. With the
help of Organizational behaviour, we can understand whether employees or people are –
Introvert
Extrovert
Motivated
Dominating
Other
5.Anticipating Organisational events
The scientific study of behaviour helps to understand and predict organisational events.
6.Efficiency & Effectiveness
Study of organisational behaviour helps to increase efficiency and effectiveness of the
organization
7.Better Environment of Organisation
OB helps to create a healthy, ethical and smooth environment in an organisation.
8.Optimum or Better Utilization of Resources
Study of OB helps to understand employees and their work style and skill better way. By
understanding this, management can train and motivate employees for optimum utilization of
resources.
9.The Goodwill of organization
Organisational Behaviour helps to improve Goodwill of organization.
This is all about the significance and importance of organisational behaviour and
its impact on overall business activities. Ultimately Organisational Business helps to increase
efficiency and productivity of the organisational forces. This may lead to an increase in the profit
of the organisation.

Learning

Any relatively permanent change in behavior that occurs as a result of

experience.

 Almost all complex behavior is learned.

 Learning is a continuous, life-long process.
 The principles of learning can be used to shape behavior.
Theories of learning:

 Operant Conditioning (B.F. Skinner)

 The theory that behavior is a function of its consequences and is learned through
experience.
 Operant behavior: voluntary or learned behaviors
 Behaviors are learned by making rewards contingent/liable to behaviors.
 Behavior that is rewarded (positively reinforced) is likely to be repeated.
 Behavior that is punished or ignored is less likely to be repeated.

 Social Learning
 The theory that individuals learn through their observations of others and through
their direct experiences.
 Attributes of models that influence learning:
  Attentional: the attractiveness or similarity of the model
 Retention: how well the model can be recalled
 Motor reproduction: the reproducibility of the model’s actions
 Reinforcement: the rewards associated with learning the model behavior

Perception
Perception is an intellectual process of transforming sensory stimuli to meaningful information.
It is the process of interpreting something that we see or hear in our mind and use it later to judge
and give a verdict on a situation, person, group etc.
Importance of Perception in OB

 Understanding the tasks to be performed.

 Understanding associated importance of tasks allotted.
 Understanding preferred behavior to complete respective tasks.
 Clarifying role perceptions.
Perceptual Process
Perceptual process are the different stages of perception we go through. The different stages are,

 Receiving
 Selecting
 Organizing
 Interpreting
Personality and Individual difference
Personality
The sum total of way in which an individual reacts and interacts with others.
Personality Types in Different Cultures
• The Big Five model is used in cross-cultural studies.
 Differences are found in the emphasis of dimensions.
• Extraversion
 Sociable, talkative, and assertive
• Agreeableness
 Good-natured, cooperative, and trusting
• Conscientiousness
 Responsible, dependable, persistent, and achievement oriented
• Emotional Stability
 Calm, enthusiastic, and secure or tense, nervous, and insecure
• Openness to Experience
 Imaginative, artistically sensitive, and intellectual
 No common personality types for a given country
  A country’s culture influences the dominant personality characteristics of
its people.
 Global managers need to understand personality trait differences from the
perspective of each culture.

Additional Personality Insights

• Self-Esteem (SE)
 The degree to which people like or dislike themselves
 High SEs
 Believe in themselves and expect success.
 Take more risks and use unconventional approaches.
 Are more satisfied with their jobs than low SEs.
 Low SEs
 Are more susceptible/at risk to external influences.
 Depend on positive evaluations from others.
 Are more prone/at risk to conform/imitate than high SEs.
• Self-Monitoring

 An individual’s ability to adjust his or her behavior to external, situational factors.

 High self-monitors:

 Are sensitive to external cues and behave differently in different

situations.

 Can present contradictory public personal and private selves—impression

management.

 Low self-monitors

 Do not adjust their behavior to the situation.

 Are behaviorally consistent in public and private

• Emotions

 Intense feelings (reactions) that are directed at specific objects (someone or something)

 Universal emotions:

 Anger ,Fear, Sadness ,Happiness, Disgust, Surprise

• Emotional Intelligence (EI)

The ability to notice and to manage emotional cues and information
Individual differences

Individual Differences are the specific characteristics that differentiate one person from another.
example:- Everyone has a different perspective to think, act, and acknowledge things in their
own way.

Types of Individual Differences:

• Physical differences
• Differences in intelligence
• Differences in attitudes
• Differences in achievement
• Differences in motor ability
• Differences on account of sex
• Racial differences
• Differences due to nationality

Motivation
o Is the result of an interaction between the person and a situation; it is not a
personal trait.

o Is the process by which a person’s efforts are energized, directed, and sustained
towards attaining a goal.

 Energy: a measure of intensity or drive.

 Direction: toward organizational goals

 Persistence: exerting effort to achieve goals.

Motivation works best when individual needs are compatible with organizational goals.

Early Theories of Motivation

• Maslow’s Hierarchy of Needs

• McGregor’s Theories X and Y
• Herzberg’s Two-Factor Theory
• McClelland’s Three Needs Theory

Maslow’s Hierarchy of Needs Theory

Needs were categorized as five levels of lower- to higher-order needs.

• Individuals must satisfy lower-order needs before they can satisfy higher order
needs.
• Satisfied needs will no longer motivate.
• Motivating a person depends on knowing at what level that person is on the
hierarchy.
Hierarchy of needs
 • Lower-order (external): physiological, safety

• Higher-order (internal): social, esteem, self-actualization

1. Physiological needs: The first of the id-driven lower needs on Maslow's hierarchy are
physiological needs. These most basic human survival needs include food and water, sufficient
rest, clothing and shelter, overall health, and reproduction. Maslow states that these basic
physiological needs must be addressed before humans move on to the next level of fulfillment.

2. Safety needs: Next among the lower-level needs is safety. Safety needs include protection
from violence and theft, emotional stability and well-being, health security, and financial
security.

3. Social needs: The social needs on the third level of Maslow’s hierarchy relate to human
interaction and are the last of the so-called lower needs. Among these needs are friendships and
family bonds

4. Esteem needs: The higher needs, beginning with esteem, are ego-driven needs. The primary
elements of esteem are self-respect and self-esteem.

5. Self-actualization needs: Self-actualization describes the fulfillment of your full potential as

a person. Sometimes called self-fulfillment needs, self-actualization needs occupy the highest
spot on Maslow's pyramid. Self-actualization needs include education, skill development.

• McGregor’s Theory X and Theory Y

 Theory X
 Assumes that workers have little ambition, dislike work, avoid
responsibility, and require close supervision.
 Theory Y
 Assumes that workers can exercise self-direction, desire
responsibility, and like to work.
 Assumption:
 Motivation is maximized by participative decision making, interesting
jobs, and good group relations.

• Herzberg’s Motivation-Hygiene Theory

  Job satisfaction and job dissatisfaction are created by different factors.

 Hygiene factors: extrinsic (environmental) factors that create job

dissatisfaction.

 Motivators: intrinsic (psychological) factors that create job satisfaction.

 Attempted to explain why job satisfaction does not result in increased

performance.

The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.

Three-Needs Theory (McClelland)

 There are three major acquired needs that are major motives in work.
 Need for achievement (nAch)
– The drive to excel and succeed
 Need for power (nPow)
– The need to influence the behavior of others
 Need of affiliation (nAff)
– The desire for interpersonal relationships
Contemporary Theories of Motivation
• Goal-Setting Theory
• Reinforcement Theory
• Designing Motivating Jobs
• Equity Theory
• Expectancy Theory

Goal-Setting Theory
• Proposes that setting goals that are accepted, specific, and challenging yet
achievable will result in higher performance than having no or easy goals.
 Reinforcement Theory
• Assumes that a desired behavior is a function of its consequences, is externally
caused, and if reinforced, is likely to be repeated.
Designing Motivating Jobs
• Combine tasks (job enlargement) to create more meaningful work.
• Create natural work units to make employees’ work important and whole.
• Establish external and internal client relationships to provide feedback.
Equity Theory
Proposes that employees perceive what they get from a job situation (outcomes) in
relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the
inputs-outcomes ratios of relevant others.
Expectancy Theory
 States that an individual tends to act in a certain way based on the expectation that
the act will be followed by a given outcome and on the attractiveness of that
outcome to the individual.
 Key to the theory is understanding and managing employee goals and the linkages
among and between effort, performance and rewards.

Job Performance

job performance determines whether a person is promoted, rewarded with pay raises, given
additional responsibilities, or fired from the job. Therefore, job performance is tracked and
observed in many organizations and is one of the main outcomes studied in the field of
organizational behavior.

Attitudes and Job Performance:

Attitudes are evaluative statements—favorable or unfavorable—concerning objects, people, or

events. They reflect how an individual feels about something.

An attitude is made up of three components:

Cognition , affect ,behavior

• The cognitive component of an attitude refers to the beliefs, opinions, knowledge,

or infor- mation held by a person (for instance, the belief that “discrimination is
wrong”).
 • The affective component of an attitude is the emotional or feeling part of an
attitude.
• The behavioral component of an attitude refers to an intention to behave in a
certain way toward someone or something. attitude usually refers only to the
affective component.

Naturally, managers aren’t interested in every attitude an employee has. They’re especially
interested in job-related attitudes.

Communication

 The transfer and understanding of meaning.

 Transfer means the message was received in a form that can be interpreted
by the receiver.
  Understanding the message is not the same as the receiver agreeing with
the message.
 Interpersonal Communication
 Communication between two or more people
 Organizational Communication
 All the patterns, network, and systems of communications within an
organization

Interpersonal Communication
Interpersonal communication involves the information, ideas, and feelings being exchanged
verbally or non-verbally between two or more people. Face-to-face communication often
involves hearing, seeing, and feeling body language, facial expressions, and gestures.
Process of communication
1.Sender

The sender or the communicator generates the message and conveys it to the receiver. He is the
source and the one who starts the communication

2.Message

It is the idea, information, view, fact, feeling, etc. that is generated by the sender and is then
intended to be communicated further.

3.Encoding

The message generated by the sender is encoded symbolically such as in the form of words,
pictures, gestures, etc. before it is being conveyed.

4.Media

It is the manner in which the encoded message is transmitted. The message may be transmitted
orally or in writing. The medium of communication includes telephone, internet, post, fax, e-
mail, etc. The choice of medium is decided by the sender.

5.Decoding

It is the process of converting the symbols encoded by the sender. After decoding the message is
received by the receiver.

6.Receiver
He is the person who is last in the chain and for whom the message was sent by the sender. Once
the receiver receives the message and understands it in proper perspective and acts according to
the message, only then the purpose of communication is successful.

7.Feedback

Once the receiver confirms to the sender that he has received the message and understood it, the
process of communication is complete.

8.Noise

It refers to any obstruction that is caused by the sender, message or receiver during the process of
communication.

Interpersonal Communication Methods

• Face-to-face
• Telephone
• Group meetings
• Formal presentations
• Memos
• Traditional Mail
• Employee publications
• E-mail
• Computer conferencing
• Voice mail
• Teleconferences
• Videoconferences
Types of Organizational Communication
• Formal Communication
 Communication that follows the official chain of command or is part of
the communication required to do one’s job.
• Informal Communication
 Communication that is not defined by the organization’s structural
hierarchy.
 Permits employees to satisfy their need for social
interaction.
Can improve an organization’s performance by creating faster and more effective channels of
communication
Types of Organizational Communication Networks
 • Chain Network
 Communication flows according to the formal chain of command, both
upward and downward.
• Wheel Network
 All communication flows in and out through the group leader (hub) to
others in the group.
• All-Channel Network
 Communications flow freely among all members of the work team.

Barriers to Effective Interpersonal Communication

• Filtering
 The deliberate manipulation of information to make it appear more favorable to
the receiver.
• Emotions
 Disregarding rational and objective thinking processes and substituting emotional
judgments when interpreting messages.
• Information Overload
 Being confronted with a quantity of information that exceeds an individual’s
capacity to process it.
• Defensiveness
 When threatened, reacting in a way that reduces the ability to achieve mutual
understanding.
• Language
 The different meanings of and specialized ways (jargon) in which senders use
words can cause receivers to misinterpret their messages.
• National Culture
 Culture influences the form, formality, openness, patterns, and use of information
in communications.
Overcoming the Barriers to Effective Interpersonal Communications
• Use Feedback
• Simplify Language
• Listen Actively
• Constrain Emotions
• Watch Nonverbal Cues

UNIT IV GROUP BEHAVIOUR

Groups and Group Development

 • Group
 Two or more interacting and interdependent individuals who come together to
achieve specific goals.
 Formal groups
 Work groups defined by the organization’s structure that have designated
work assignments and tasks.
– Appropriate behaviors are defined by and directed toward
organizational goals.
 Informal groups
 Groups that are independently formed to meet the social needs of their
members.
• Command Groups / Functional Groups

 Groups that are determined by the organization chart and composed of

individuals who report directly to a given manager.

• Task Groups

 Groups composed of individuals brought together to complete a specific job

task; their existence is often temporary because once the task is completed, the
group disbands.

• Cross-Functional Teams

 Groups that bring together the knowledge and skills of individuals from various
work areas or groups whose members have been trained to do each others’ jobs.

• Self-Managed Teams

Groups that are essentially independent and in addition to their own tasks, take on traditional
responsibilities such as hiring, planning and scheduling, and performance evaluations

Stages in Group Development

• Forming
 Members join and begin the process of defining the group’s purpose, structure, and
leadership.
• Storming
 Intragroup conflict occurs as individuals resist control by the group and disagree over
leadership.
• Norming
 Close relationships develop as the group becomes cohesive and establishes its norms for
acceptable behavior.
• Performing
  A fully functional group structure allows the group to focus on performing the task at
hand.

• Adjourning

 The group prepares to disband and is no longer concerned with high levels of
performance.

Difference between Group and Team

Group Member Resources
• Knowledge
• Skills
 Interpersonal skills such as conflict management and resolution,
collaborative problem solving, and communication determine how
effectively members perform in a group
• Abilities
 Determine what members can do
• Personality traits
 Positive traits tend to be positively related to group productivity and morale
Group Structure
• Role
 The set of expected behavior patterns attributed to someone who occupies a
given position in a social unit that assists the group in task accomplishment or
maintaining group member satisfaction.
• Norms

 Acceptable standards or expectations that are shared by the group’s members.

• Conformity
Individuals conform in order to be accepted by groups

• Status System
The formal or informal prestige grading, position, or ranking system for members of a group that
serves as recognition for individual contributions to the group and as a behavioral motivator.

 Group Cohesiveness
 The degree to which members are attracted to a group and share the group’s
goals.
 Highly cohesive groups are more effective and productive than less
cohesive groups when their goals aligned with organizational goals.
Group Size
• Small groups
 Complete tasks faster than larger groups.
 Make more effective use of facts.
• Large groups
 Solve problems better than small groups.
 Are good for getting diverse input.
Are more effective in fact-finding

• Social Loafing
The tendency for individuals to expend less effort when working collectively than when working
individually

Group Processes: Group Decision Making

• Advantages
 Generates more complete information and knowledge.
 Generates more diverse alternatives.
 Increases acceptance of a solution.
 Increases legitimacy of decision.
• Disadvantages
 Time consuming
 Minority domination
 Pressures to conform

 Ambiguous responsibility

Team
A team is defined as a group of people who perform interdependent tasks to work toward
accomplishing a common mission or specific objective.

Advantages of Using Teams

• Teams outperform individuals.
• Teams provide a way to better use employee talents.
• Teams are more flexible and responsive.
• Teams can be quickly
assembled, deployed,
refocused, and disbanded.

Types of Teams
• Problem-Solving Teams
 Employees from the same department and functional area who are involved in
efforts to improve work activities or to solve specific problems.
• Self-Managed Work Teams
 A formal group of employees who operate without a manager and responsible for
a complete work process or segment.
• Cross-Functional Teams
 A hybrid grouping of individuals who are experts in various specialties and who
work together on various tasks.
• Virtual Teams
  Teams that use computer technology to link physically dispersed members in
order to achieve a common goal.
Characteristics of Effective Teams
Are unified in their commitment to team goals.
Have good communication systems.
Possess effective negotiating skills.
Have appropriate leadership.
Have both internally and externally supportive environments.
Have a clear understanding of their goals.
Have competent members with relevant technical and interpersonal skills.
Exhibit high mutual trust in the character and integrity of their members.
Group Dynamics
The social process by which people interact and behave in a group environment is called group
dynamics. Group dynamics involves the influence of personality, power, and behaviour on the
group process.

Who Are Leaders and What Is Leadership

 Leader – Someone who can influence others and who has managerial authority
 Leadership – Leadership can be defined as the ability of the management to make sound
decisions and inspire others to perform well. It is the process of directing the behavior of
others towards achieving a common goal. In short, leadership is getting things done
through others.

Leadership Styles/Types

1.Democratic Leadership

A democratic leader makes decisions based on their team’s opinion and feedback. In simpler
words, they get everyone involved in the decision-making process.

2. Autocratic Leadership

This is precisely the opposite of democratic leadership. The opinions of team members are not
considered while making any business decision. Instead, leaders expect others to adhere to their
decisions, which is not sustainable in the long run.

3. Laissez-faire Leadership
Laissez-faire means “let them do”. This leadership style is the least intrusive and ensures that the
decision-making authority lies with the team members.

This leadership style empowers team members and holds them accountable for their work. This
motivates many team members to put their best foot forward, improving the organisation’s
efficiency and productivity.

4.Transformational Leadership

Transformational leaders inspire others to achieve the unexpected. They aim to transform and
improve team members’ and organisations’ functions and capabilities by motivating and
encouraging them.

Leadership Power.

Power is the ability to influence the behavior of others with or without resistance by using a
variety of tactics to push or prompt action.

Types of Power in Leadership

Legitimate Power.

Legitimate power happens when someone is in a higher position, giving them control over
others.

Coercive Power.

There's really no time or space for coercive power in the workplace, Lipkin notes.

Expert Power.

Informational Power.

Power of Reward.

Connection Power.

Referent Power.

What is political power in leadership?

Political power comes from the ability to understand what other people fear or desire, and to use
that understanding to influence their behavior.

Organizational structure
An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.

Designing Organizational Structure

• Organizational Design
 A process involving decisions about six key elements:
 Work specialization
 Departmentalization
 Chain of command
 Span of control
 Centralization and decentralization
 Formalization
• Work Specialization
 The degree to which tasks in the organization are divided into separate
jobs with each step completed by a different person.

• Departmentalization
Departments is teams of professionals within a larger company. This component of
organizational design allows each compartment or department to focus on a specific task the
professionals in each group work together to achieve.
• Chain of Command
 The continuous line of authority that extends from upper levels of an organization
to the lowest levels of the organization and clarifies who reports to whom.
• Span of Control
 The number of employees who can be effectively and efficiently supervised by a
manager.
• Centralization
 The degree to which decision making is concentrated at upper levels in the
organization.
• Organizations in which top managers make all the decisions and lower-
level employees simply carry out those orders.
• Decentralization
 Organizations in which decision making is pushed down to the managers who are
closest to the action.
Organizational Climate
Conflict means any contradiction or clashing interest between two persons or groups.
It is an expression of hostility, negative attitudes, dispute, aggression, rivalry and
misunderstanding.
Types:
1.Human-centric climate
An organizational climate that emphasizes the importance of caring for each other.
2.Rule-oriented climate:
An organizational climate that prioritizes compliance with organizational rules and regulations
for every organizational member.
3.Innovation-oriented climate:
An organizational climate that focuses on implementing innovative working styles and processes
to foster creativity and innovativeness at work.
4.Goal-oriented climate:
An organizational climate that is result-driven. Thus, this organizational climate emphasizes the
realization of organizational values and perfectionism to attain desirable business outcomes.

• Organizational Culture
 A system of shared meanings and common beliefs held by organizational members
that determines, in a large degree, how they act towards each other.
 “The way we do things around here.”
 Values, symbols, rituals, myths, and practices
 Implications:
 Culture is a perception.
 Culture is shared.
 Culture is descriptive.
Dimensions of Organizational Culture
Strong Cultures
• Strong Cultures
 Are cultures in which key values are deeply held and widely held.
 Have a strong influence on organizational members.
• Factors Influencing the Strength of Culture
 Size of the organization
 Age of the organization
 Rate of employee turnover
 Strength of the original culture
 Clarity of cultural values and beliefs

Benefits of a Strong Culture

• Creates a stronger employee commitment to the organization.
• Aids in the recruitment and socialization of new employees.
• Fosters (Promotes) higher organizational performance by instilling and
promoting employee initiative.

Sources of Organizational Culture

• The organization’s founder

• Vision and mission

• Past practices of the organization

• The way things have been done

• The behavior of top management

Strong versus Weak Organizational Cultures

How Employees Learn Culture
• Stories
 Narratives of significant events or actions of people that convey the spirit of the
organization
• Rituals
 Repetitive sequences of activities that express and reinforce the values of the
organization
• Material Symbols
 Physical assets distinguishing the organization
• Language
 Acronyms and jargon of terms, phrases, and word meanings specific to an
organization
How Culture Affects Managers

• Cultural Constraints on Managers

 Whatever managerial actions the organization recognizes as proper or improper
on its behalf
 Whatever organizational activities the organization values and encourages
 The overall strength or weakness of the organizational culture

Managerial Decisions Affected by Culture

• Planning
• The degree of risk that plans should contain
• Whether plans should be developed by individuals or teams
• The degree of environmental scanning in which management will engage
• Organizing
• How much autonomy should be designed into employees’ jobs
• Whether tasks should be done by individuals or in teams
• The degree to which department managers interact with each other
• Leading
• The degree to which managers are concerned with increasing employee job
satisfaction
• What leadership styles are appropriate
• Whether all disagreements—even constructive ones—should be eliminated

• Controlling
• Whether to impose external controls or to allow employees to control their own
actions
• What criteria should be emphasized in employee performance evaluations
 • What repercussions will occur from exceeding one’s budget

Organization Culture Issues

• Creating an Ethical Culture
 High in risk tolerance
 Low to moderate aggressiveness
 Focus on means as well as outcomes

• Creating an Innovative Culture

 Challenge and involvement
 Freedom
 Trust and openness
 Idea time
 Conflict resolution
 Debates
 Risk-taking

Conflict
 The perceived incompatible differences in a group resulting in some form of
interference with or opposition to its assigned tasks.
 Traditional view: conflict must be avoided.
 Human relations view: conflict is a natural and inevitable outcome in any
group.
 Interactionist view: conflict can be a positive force and is absolutely
necessary for effective group performance.
• Categories of Conflict

 Functional conflicts are constructive.

 Dysfunctional conflicts are destructive.

• Types of Conflict

 Task conflict: content and goals of the work

 Relationship conflict: interpersonal relationships

 Process conflict: how the work gets done

• Techniques to Manage Conflict:

  Avoidance

 Accommodation

 Forcing

 Compromise

 Collaboration

Conflict Stages:

1. No conflict.

2. Latent conflict.

The potential for conflict exists whenever people have different needs, values, or interests; this is
the "latent" conflict stage.

3. Emergence.

The conflict may not become apparent until a "triggering event" leads to the emergence (or
beginning) of the obvious conflict.

4. Escalation.

Emergence may be followed quickly by settlement oor it may be followed by escalation.

which can become very destructive. Escalation cannot continue indefinitely.

5. (Hurting) Stalemate.

Escalation may lead to a stalemate, a situation in which neither side can win.

6. De-Escalation.

De-escalation can be temporary or can be part of a broader trend toward settlement or

resolution.

7. Settlement/Resolution.

It often presents an ideal opportunity for negotiation and a potential settlement.

8. Post-Conflict Peace building

Finally, if and when an agreement is reached, peace building efforts work to repair damaged
relationships with the long-term goal of reconciling former opponents.

9. Reconciliation.

What is conflict management?

Conflict management refers to the way that you handle disagreements.

Conflict management styles:

1. Accommodating

An accommodating mode of conflict management tends to be high in cooperation but low in

assertiveness. When you use this style, you resolve the disagreement by sacrificing your own
needs and desires for those of the other party.

2. Avoiding:

When avoiding, you try to dodge or bypass a conflict.

This style of managing conflicts is low in assertiveness and cooperativeness. Avoidance is

unproductive for handling most disputes because it may leave the other party feeling like you
don't care.

3. Collaborating:
A collaborating conflict management style demands a high level of cooperation from all parties
involved. Individuals in a dispute come together to find a respectful resolution that benefits
everyone.

4. Competing:

When you use a competitive conflict management style (sometimes called 'forcing'), you put
your own needs and desires over those of others.

5. Compromising:

Compromising demands moderate assertiveness and cooperation from all parties involved. With
this type of resolution, everyone gets something they want or need.

This style of managing conflict works well when time is limited.

Organizational Change
• Any alteration of people, structure, or technology in an organisation.
• Change agent – someone who acts as a catalyst and assumes the responsibility for
managing the change process.
 Structure – work specialisation, departmentalisation, chain of commend, span of
control, centralisation, job redesign, actual structural design.
 Technology – Work processes, methods, and equipment.
 People – Attitudes, expectations, perceptions, and behaviour – individual and
group.
Organizational Development
According to Warren Bennis, organisational development is a complex strategy intended to
change the beliefs, attitudes, values, and structure of organisations so that they can better adapt to
new technologies, markets, and challenges.
• Change methods that focus on people and the nature and quality of interpersonal work
relationships.
Resistance to Change
• Why do people resist change
 Uncertainty
 Habit
 Concern about personal loss
 Belief that the change is not in the organization's best interest

Reducing Resistance to Change

• Education and Communication
• Participation
• Facilitation and Support
• Attempt to reduce false rumors
 • Coorperation
• Selection of people who accepts change
• Coersion – using direct threats or force

UNIT V EMERGING ASPECTS OF ORGANIZATIONAL BEHAVIOUR

Comparative Management
Comparative Management is the identifying, measuring and interpreting of similarities and
differences among managers’ behaviours, techniques followed, and practices applied as found in
various countries.
Approaches to Comparative Management Studies:
1. Socio-Economic (Economic Development) Approach
The socio-economic approach suggested by Harbison and Myers is based on the proposition that
the choice of management styles and beliefs should be tied to the stage or level of economic and
industrial development in the country where the manager is operating.'
Harbison and Myers identified four stages of economic development which they believed
represented the universal and inevitable progress from an agrarian- feudalistic society to an
industrialized-democratic system for all countries and then described corresponding appropriate
management styles for each of these stages.
2. Environmental (Ecological) Approach:
example of the environmental approach is the Farmer-Richman model which posited that
elements of the management process (e.g., planning, organizing, staffing, directing, controlling
and policy making in operational areas) are affected by cultural variables—risli-talking
preferences, attitudes toward achievement and needs—and various types of external constraints
(i.e., educational, sociological, legal-political and economic) and that the management process
affects management and managerial effectiveness which ultimately determines firm and system
efficiency."
3. Behavioral (Socio-Psychological) Approach
The behavioral approach is a micro model that is primarily interested in examining and
interpreting the psychological characteristics of managers and their employees in the workplace
and how those impact the way that groups within the firm interact and perform."
4. Organizational Theory Approach
The organizational theory approach is often cited as being more practical with greater utility for
managers seeking answers to their day-to-day issues and problems.
5. Open System or Eclectic Approach
The open system, or eclectic, approach encompasses the efforts of a number of researchers to
create models that focus on the interaction between firms and their various environments.
6. Systems Model Approach
The systems model approach suggested by Tung uses an organizational climate construct as a
platform for analyzing interactions between external and internal organizational variables and
measuring the impact of these interactions on organizational effectiveness.

Creativity and Innovation

• Creativity – the ability to combine ideas in a unique way or to make unusual
association between ideas.
• Innovation – the process of turning creative ideas into useful products or work
methods.

Cross Cultural Communication:

Cross cultural communication thus refers to the communication between people who have
differences in styles of working, age, nationality, ethnicity, race, gender, sexual orientation, etc.
MANAGING CULTURAL DIVERSITY:
1.Setting a good example—
This basic tool can be particularly valuable for small business owners who hope to establish a
healthy environment for people of different cultural backgrounds, since they are generally able to
wield significant control over the business's basic outlook and atmosphere.
2.Communicate in writing—
Company policies that explicitly forbid prejudice and discriminatory behavior should be
included in employee manuals, mission statements, and other written communications.
3.Training programs—
Training programs designed to engender appreciation and knowledge of the characteristics and
benefits of multicultural work forces have become ubiquitous in recent years.
4.Recognize individual differences—
Writing in The Complete MBA Companion, contributor Rob Goffee stated that "there are
various dimensions around which differences in human relationships may be understood.
5.Flexible work environment—
Cox indicated that flexible work environments—which he characterized as a positive
development for all workers—could have particularly "beneficial to people from nontraditional
cultural backgrounds because their approaches to problems are more likely to be different from
past norms."
6.Continuous monitoring—
Experts recommend that business owners and managers establish and maintain systems that can
continually monitor the organization's policies and practices to ensure that it continues to be a
good environment for all employees.