ORGANIZATIONAL BEHAVIOUR

Unit I Organizational Behavior: Definition, assumptions, significance-Historical

Evolution- Fundamental concepts of OB, OB- as an emerging challenge of
managing diversity.

Unit II Individual Behavior and Managing diversity, Factors affecting

individual behavior, Personality Development: meaning and determinants, theories
of Personality development, managerial consideration for further developing of
personality development of employee. Perception: Meaning and definition,
Perceptual process, Managerial implications of perception in business situations,
Perceptual errors i.e. factors influencing perception.

Unit III Motivation: Nature and importance, basic process- theories of

motivation: Maslow’s hierarchy of needs theory, Herzberg theory, Alderfer’s ERG
theory, McClelland’s Achievement Motivation Theory, Expectancy theory, Theory
X & Y.

Unit IV Group Behaviour: Group formation: formal and informal group, stages
of group development, Group decision making, group effectiveness and self-
managed teams

Unit V Conflict and Stress Management: Meaning, process, functional and

dysfunctional conflict, conflict handling- nature, causes and consequences of
Stress. Management of change: concept, Lewin’s stages of change, forces of
change, resistance to change and Managing planned change.
 Unit I Organizational Behavior
MEANING &DEFINITION:
The Father of organizational behavior "Frederic Winslow Taylor, (1856-1915). Taylor was one of the
first to attempt to systematically analyze human behavior at work.

Organisational behavior is the study and application of knowledge about how

people – as individuals and as groups – act within organisations. The field of OB
attempts to understand human behavior in organisationalsettings, the organization
itself, and the individual organization interface. All this areas are highly
interrelated. Thus, although it is possible to focus on only one of these areas at a
time, a complete understanding of OB requires knowledge of all three areas. Thus,
the field of OB is exciting and complex.

What Is Organizational Behavior

Organizational Behavior has included two terms in it. Therefore, these two terms
should be detailed first before diving into the title in question.

Organization: It is a group of people who are collected to work for a common goal
with collective efforts. Organization works through two concepts i.e coordination
and delegation among its group members. Delegation is necessary to allocate
group members with equal work according to their capability, and coordination is
required to achieve organizational goal with precision.

Behavior: It is a verbal or physical response shown by a person as a consequence of

the impact of his/her surroundings. Individual Behavior varies in accordance with
their mental reactivity to particular circumstances because of their deeply imbibed
morals and value system.

Organizational Behavior: Organizational Behavior is the observation of individual

and/or group Behavior in response to the other individuals or group as a whole. It
studies Behavior of people or group to know their attitude towards particular
circumstances.

According to Fred Luthans, “Organisational behaviour is to understand

Predicting and controlling human behavior at work.”
According to Callahan, “Organisationalbehaviour is subset of management
activities concerned with understanding, predicting and influencing individual
behaviour in Organistional setting.”

Fundamental Aspects Of Organizational Behavior: There are various aspects of

Organizational Behavior which it has to deal with, to know the soul of particular
Organization. Below mentioned are some of the fundamental aspects of
Organizational Behavior-

1) People: This element is the soul of the Organization because people work to
achieve the target of Organization and Organization works to fulfill the needs of
individual or group of individuals. The word ‘people’ can be anyone who is
working inside the Organization, like employees or any external person like
supplier, customer, auditor, or any government official.

2) Structure: It is the body of the Organization which is to be taken care of to bring

coordination between different levels of Organization, because Organization does
not work aloof and is dependent on people which again work on the concept of
division of labor. So, there is always a hierarchy in Organization which if not
properly dealt with can mess the system because of nil scrutiny and flow of
control.

3) Technology: Organizations work on technologies to help people in efficiently

doing their work. Same technology does not apply to each Organization but
different Organizations demand different technologies for their different line of
businesses e.g bank needs mediating technology which connects customers and
bankers, Manufacturing companies need long linked technology because of their
assembly line process, and hospitals work on intensive technology because of their
responsibility to provide specialized services in terms of doctors and medical
equipments.

4) Environment: Organizations are influenced by the environment in which they

work, at a substantial level. Environment is important to Organizations because of
the following factors:

# Supply and demand comes from this environment.

# Human resource, competitors, government agencies, unions, and political parties
comes from environment in which Organization is surviving.

# The Organizations have to follow rules and regulations fostered by this

environment.

Organizational Behaviour Assumptions

The study of organizational behaviour has certain basic assumptions, which are
listed below:

 an industrial enterprise is an organization of people

 these people must be motivated to work effectively
 the goals of the employee and employer may not necessarily concide
 the policies and procedures adopted may influence people in the directions
not always foreseen by the policy makers

Importance of Organizational Behaviour:

1. It builds better relationship by achieving people’s, organizational, and social
objectives.
2. It covers a wide array of human resource like behavior, training and
development, change management, leadership, teams etc.
3. It brings coordination which is the essence of management.
4. It improves goodwill of the organization.
5. It helps to achieve objectives quickly.
6. It makes optimum utilization of resources.
7. It facilitates motivation.
8. It leads to higher efficiency.
9. It improves relations in the organization.
10. It is multidisciplinary, in the sense that applies different techniques,
methods, and theories to evaluate the performances.

Fundamental Concept of OB is based on two key elements namely–

Nature of people

Nature of the organization

Nature of the people Nature of the organisation

Individual Difference Social System

Fundamental
Perception Mutuality of Interest

Motivation of employees
concept Ethics

Whole person of
Caused Behaviour OB
Desire for Involvement

Human dignity

Fundamental concept of OB

Nature of People

In simple words, nature of people is the basic qualities of a person, or the character
that personifies an individual they can be similar or unique. Talking at the
organizational level, some major factors affecting the nature of people have been
highlighted. They are as follows:

Individual Difference − It is the managerial approach towards each employee

individually, that is one-on-one approach and not the statistical approach, that is,
avoidance of single rule. Example− Manager should not be biased towards any
particular employee rather should treat them equally and try not to judge anyone on
any other factor apart from their work.
Perception − It is a unique ability to observe, listen and conclude something. It is
believing in our senses. In short, the way we interpret things and have our point of
view is our perception. Example − Aman thinks late night parties spoil youth while
Anamika thinks late night parties are a way of making new friends. Here we see
both Aman and Anamika have different perception about the same thing.

A whole person − As we all know that a person’s skill or brain cannot be

employed we have to employee a whole person. Skill comes from background and
knowledge. Our personal life cannot be totally separated from our work life, just
like emotional conditions are not separable from physical conditions. So, people
function is the functioning of a total human being not a specific feature of human
being.

Motivated behavior − It is the behavior implanted or caused by some motivation

from some person, group or even a situation. In an organization, we can see two
different types of motivated employees −

Positive motivation − Encouraging others to change their behavior or say

complete a task by luring them with promotions or any other profits. Example − “If
you complete this, you will gain this.”

Negative motivation − Forcing or warning others to change their behavior else

there can be serious consequences. Example − “If you don’t complete this, you will
be deprived from the office.”

Value of person/Dignity − Employees want to be valued and appreciated for their

skills and abilities followed by opportunities which help them develop themselves.

Nature of Organization

Nature of organization states the motive of the firm. It is the opportunities it

provides in the global market. It also defines the employees’ standard; in short, it
defines the character of the company by acting as a mirror reflection of the
company. We can understand the nature of any firm with its social system, the
mutual interest it shares and the work ethics.

Let us take a quick look at all these factors −

Social system − Every organization socializes with other firms, their customers, or
simply the outer world, and all of its employees - their own social roles and status.
Their behavior is mainly influenced by their group as well as individual drives.
Social system are of two types namely −

Formal − Groups formed by people working together in a firm or people that

belong to the same club is considered as formal social system. Example −A
success party after getting a project.

Informal − A group of friends, people socializing with others freely, enjoying,

partying or chilling.Example − Birthday party.

Mutual interest − Every organization needs people and people need organizations
to survive and prosper. Basically it’s a mutual understanding between the
organization and the employees that helps both reach their respective objectives.
Example − We deposit our money in the bank, in return the bank gives us loan,
interest, etc.

Ethics − They are the moral principles of an individual, group, and organization.
In order to attract and keep valuable employees, ethical treatment is necessary and
some moral standards need to be set. In fact, companies are now establishing code
of ethics training reward for notable ethical behavior.

CHALLENGES AND OPPORTUNITIES OF ORGANIZATIONAL

BEHAVIOR

1. The creation of Q global village

2. Workforce diversity

3. Improving quality and productivity

4. Improving People skills

5. Management control to empowerment

6. Stability and flexibility

7. Improving ethical behavior.

 There are a lot of challenges and opportunities today for managers to use
Organizational behavior concepts. The critical issues for which Organization
behavior offers solutions are:

1. The creation of a global village The world has truly become global village. As
multinational companies develop operations world wide, as workers chase job
opportunities across national borders, managers have to become capable of
working with people from different cultures.

2. Workforce diversity Workforce diversity addresses differences among people

within given countries. It means that Organizations are becoming more
heterogeneous in terms of gender, race and ethnicity. When diversity is not
managed properly, there is potential for higher turnover, more difficult
communication and more interpersonal conflicts. So workforce diversity has
important implications for management practice.

3. Improving quality and productivity Toward Improving quality and productivity,

managers are implementing programs such as TQM (Total Quality Management)
and Reengineering programs that require extensive employee involvement. The
Organizational behavior offers important insights into helping managers work
through those programs.

4. Improving people skills Organizational behavior represents relevant concepts

and theories that can help a manager to predict and explain the behavior of people
at work. In addition, it also provides insights into specific people skills that can be
used on the job. Organizational Behavior also helps at improving a manager's
interpersonal skills.

5. Management control to empowerment In the 1980s, managers were encouraged

to get their employees to participate in work related decisions. But now managers
are going considerably further by allowing employees full control of their work. In
so doing, managers have to learn how to give up control and employees have to
learn how to take responsibility for their work and make appropriate decisions.

6. Stability and flexibility Now days, change is an ongoing activity for most
managers. The study of Organizational behavior can provide important insights
into helping a manager better understand a work world of continual change and
how to overcome resistance to change . So today's managers and employees must
learn to cope with temporariness.

7. Improving ethical behavior Today's manager needs to create an ethically healthy

climate for his or her employees where they can do their work productively and
confront a minimal degree of ambiguity regarding what constitutes right and wrong
behavior.
 Unit II Individual Behavior and Managing diversity
FACTORS AFFECTING INDIVIDUAL BEHAVIOUR

I. Personal Factors:

The personal factors which influence the individual behaviour can be

classified into two categories:
A. Biographic Characteristics
B. Learned Characteristics

A. Biographical Characteristics:

All the human beings have certain characteristics which are genetic in nature and
are inherited. These are the qualities which the human beings are born with. These
are the characteristics which cannot be changed; at the most, these can be refined
to some extent. If the managers know about the inherited qualities and limitations
of the persons, they can use their organizational behaviour techniques more
effectively.

All these characteristics are explained in detail as follows:

1. Physical Characteristics:
Some of these characteristics are related to height, skin, complexion, vision, shape
and size of nose, weight etc. All these have an impact on the performance of the
individuals. It is sometimes said that the eyes betray the character of a person.
Similarly certain ideas about the behaviour can be formed on the basis of whether
the person is fat, tall or slim.
Tall and slim people are expected to dress well and behave in a sophisticated
manner and fat people are supposed to be of a jolly nature. Whether there is a
correlation between body structure and behaviour or not has not been scientifically
proven. Even if there is a correlation between these two, it is very difficult to
understand which the independent variable is and which is dependent variable.
2. Age:
Age is considered to be an inherited characteristic because it is determined by the
date of birth. The relationship between age and job performance is an issue of
increasing performance. Psychologically, younger people are expected to be more
energetic, innovative, adventurous, ambitious and risk taking. Whereas old people
are supposed to be conservative, set in their own ways and less adaptable. Though
it is incorrect to generalize all old people as unadoptable, physiologically,
performance depends on age.
Performance declines with advancement of age because older people have less
stamina, memory etc. Younger people are likely to change jobs to avail better job
opportunities, but as one grows old, the chances of his quitting job are less. There
is a relationship between age and absenteeism also. Older people tend to absent
more from their jobs due to unavoidable reasons e.g. poor health.
Whereas younger people absent themselves from job due to avoidable reasons e.g.
going for a vacation. In the organisations which are subject to dramatic changes
due to latest innovations, the older people get less job satisfaction as they start
feeling obsolete as compared to their younger colleagues. Though there is no clear
cut demarcation between young age and old age but according to Lehman the peak
of creative ability is among people between the ages 30 and 40.
2. Gender:
Being a male or female is genetic in nature and it is considered to be an inherited
feature. Whether women perform as well as in jobs as men do, is an issue which
has initiated lot of debates, misconceptions and opinions. The traditional view was
that man is tougher than woman or women are highly emotional than men. But
these are some stereotyped baseless assumptions. Research has proved that there
are few if any, important differences between man and woman that will affect their
job performance.
Specially, in some are like problem solving ability, analytical skill, competitive
drive, motivation, leadership, sociability and learning ability, there are no
consistent male-female differences. Initially, some roles were considered to be
exclusive domain of women e.g. nurses, airhostesses etc. but now with the passage
of time, we have males in these professions also. Similarly, some jobs which were
considered to be exclusive domain of men e.g. pilots, defence jobs, etc. have
started accommodating women also, though with some conditions.
Gender has its impact on absenteeism. The tendency to abstain from work is more
in females than in men, because historically, our society has placed home and
family responsibilities on the females. When a child is ill, or the house is being
white washed or some unexpected guests turn up, it is the female who has to take
leave.
The turnover is also more in female employees, though the evidence is mixed in
this case. Some studies have found that females have high turnover rates, while the
others do not find any difference. The reasons for high turnover can be that
sometimes the females have to quit their jobs or change into part time jobs to look
after the children and their homes.
Sometimes they have to quit their jobs if their husbands get transferred to some
other place and the females’ job is non-transferable. Although this trend is
changing with the passage of time, but majority of the Indian families still follow
these norms.

3. Religion:
Though there are no scientific studies to prove it and we cannot generalize it, but
religion and religion based cultures play an important role in determining some
aspects of individual behaviour, especially those aspects which concern morals,
ethics and a code of conduct. The religion and culture also determine attitudes
towards work and towards financial incentives.

People who are highly religious are supposed to have high moral values e.g. they
are honest, they do not tell lies or talk ill of others, they are supposed to be
contended. But there is another side of the picture also. Though there are no
evidences but it has been observed that sometimes people who are highly
dishonest and immoral are more religious as compared to the others.

4. Marital Status:
There are not enough studies to draw any conclusion as to whether there is any
relationship between marital status and job performance. Research has
consistently indicated that as marriage imposes increased responsibilities, to
have a steady job becomes more valuable and important. Married employees
have fewer absences, less turnover and more job satisfaction as compared to
unmarried workers. But no research has so far identified the causes for this.
5. Experience:
The next biographical characteristic is tenure or experience. The impact of
seniority on job performance is an issue which is subject to a lot of
misconceptions and speculations. Work experience is considered to be a good
indicator of employee productivity. Research indicates that there is a positive
 relationship between seniority and job performance. Moreover studies also
indicate a negative relationship between seniority and absenteeism.
Employee turnover is also considered to be negatively related to seniority. But in
considering this relationship, past experience i.e. experience of the employee on
the previous job is also to be considered. Research indicates that experience and
satisfaction are positively related. Here we have to distinguish between
chronological age and seniority of the employee. Seniority experience is a better
indicator of job satisfaction than the chronological age of the person.

6. Intelligence:
Generally, it is considered that intelligence is an inherited quality. Some people
are born intelligent or in other words intelligent parents produce intelligent
children. But practical experience has shown that sometimes very intelligent
parents have less intelligent children and sometimes average parents have very
intelligent children.
Moreover intelligence can be enhanced with efforts, hard work, proper
environment and motivation. Anyway, whether it is an inherited trait or acquired
trait this factor affects the behaviour of the people. Intelligent people are
generally not adamant and stubborn, rather they are considered to be stable and
predictable.
7. Ability:

Ability of an individual can be of two types:

(i) Intellectual Ability:

If the individual is expected to perform mental activities, he must have a

particular level of intellectual ability. Some important dimensions used to
ascertain intellectual ability are number aptitude, comprehension, perceptual
speed and test of reasoning. For some important jobs or assignment, a person has
to clear some admission test.

(ii) Physical ability:

Physical abilities include a person’s stamina, manual dexterity, leg strength and
the like. If the performance of a particular job requires some specific physical
 abilities, it is the duty of the management to identify the employees having those
abilities. This is accomplished by either careful selection of people or by a
combination of selection and training.

B. Learned Characteristics:

Learning is defined as, “a relatively permanent change in behaviour resulting from

interactions with the environment.” A person is born with biographical
characteristics which are difficult to change or modify. Therefore, the managers lay
much stress on studying, learning and predicting the learned characteristics.

Some of these learned characteristics are as follows:

1. Personality:

By personality we don’t mean the physical appearance of a person. Psychologists

are not concerned with a smart person, with a smiling face and a charming
personality. They consider personality as a dynamic concept describing the growth
and development of a person’s whole psychological system. Rather than looking at
parts of the person, personality looks at some aggregate whole that is greater than
the sum of the parts.

Personality generally refers to personal traits such as dominance, aggressiveness,

persistence and other qualities reflected through a person’s behaviour. Some
personality traits like physical built and intelligence are biological in nature but
most traits like patience, open mindedness, extrovertness etc. can be learned.

An individual’s personality determines the types of activities that he or she is

suited for. According to Tedeschi and Lindskold, people who are open minded
seem to work out better in bargaining agreements than people who are narrow
minded. Similarly people who are extroverts and outgoing are more likely to be
successful as managers than those who are introverts.

2. Perception:

Perception is the viewpoint by which one interprets a situation. In other words,

“perception is the process by which information enters our minds and is interpreted
in order to give some sensible meaning to the world around us. Psychology says
that different people see and sense the same thing in different ways. For example,
if a new manager perceives an employee to be a job shirker, he will give him less
important jobs, even though that employee is a very able person. Sometimes, we
tend to lose good relatives and friends because we change our perceptions about
them.

3. Attitude:

Attitude is just like perception but with a frame of reference. It is a tendency to act
in a certain way, either favourably or unfavourably concerning objects, people or
events. For example, if I say I am satisfied with my job, I am expressing my
attitude towards work. An attitude may be defined as the way a person feels about
something, a person, a place, a thing, a situation or an idea. It expresses an
individual’s positive or negative feeling about some object. An attitude may be
unconsciously held. Most of our attitudes are such about which we are not aware;
QNE most common of this is prejudice.

A person’s attitude towards a given situation can be ascertained by measuring and

understanding his feelings, thoughts and behaviours. When we directly ask
questions from the individuals, we can measure his feelings and thoughts.
Behaviour can be measured either by observing the actions of the individual or
simply by asking him questions about how he would behave in a particular
situation.

In general, if a person has positive attitude about his work it will be reflected by
very good work performance, less absenteeism, less turnover, obedience towards
rule or authority etc. If a person has got negative attitude towards his work, he will
act in exactly the opposite way. The negative attitude can be changed by simple
persuasion or by training and coaching.

4. Values:

According to Milton Rokeach, “Values are global beliefs that guide actions and
judgements across a variety of situations. Values represent basic convictions that a
specific mode of conduct is personally or socially preferable to an opposite mode
of conduct.” Values carry an individual’s ideas as to what is right, good or
desirable. All of us have a hierarchy of values that form our value system. This
system is identified by the relative importance we assign to some values like
freedom, self respect, honesty, obedience, equality and so on.

Values are so closely embedded in the people that these can be observed from their
behaviour. Individual values are influenced by the parents, teachers, friends and
other external forces. A person’s values also develop as a product of learning and
experience in the cultural setting in which he lives. Values vary from person to
person because every person learns in a different way and have different types of
experience.

Values are very important in the study of organisationalbehaviour because these

help in understanding the attitudes and motivation of individuals as well as
influencing their perceptions. Values determine what is right and what is wrong,
where right or wrong is interpreted in terms of perceived values of the decision
maker. Values sometimes overpower even objectivity and rationality. The value
system can significantly influence the manager’s outlook and behaviour.

II. Environmental Factors:

The external environment is known to have a considerable impact on a person’s

behaviour.

A brief description of the external factors follows:

1. Economic Factors.

The behaviour of an individual is affected to a large extent by the economic

environment.

A few economic factors which directly or indirectly affect the individual

behaviour are as explained below:

(a) Employment Level:

The employment opportunities which are available to the individuals go a long

way in influencing the individual behaviour. If the job opportunities are less, the
individual will have to stick to a particular organisation even though he does not
have job satisfaction. He may or may not ‘ be loyal to the management but he will
remain in the organisation for monetary benefits only. On the other hand if the job
opportunities are more, the employees’ turnover will be more. They will continue
changing their jobs till they find the ideal job, which gives them maximum
satisfaction, monetary as well as psychological.

(b) Wage Rates:

The major consideration of every employee who is working in the organisation is

his wages. Though job satisfaction is very important, but what a person will get in
money terms, is the major factor affecting the decision of a worker to stay in a
particular organisation or shift to another one which will pay more wages.

(c) General Economic Environment:

Some employees who are working in Government offices or public sector

undertakings are not affected by economic cycles. Whatever the economic position
of the organisation, they will receive their salaries. Whereas, the employees, who
work in the organisations, which are severely affected by economic cycles are
subjected to layoffs and retrenchment. For these employees job security and a
stable income is the most important factor whereas the former employees will be
motivated by some other factors.

(d) Technological Development:

Though technology is not an economic factor, but we include it in the economic

factors because of the impact it has on the individual job opportunities. The
technological development has made the job more intellectual and upgraded. Some
workers will be dislocated unless they are well equipped to work on new machines.
This makes it the duty of management to retrain the employees. For those, who
pickup and acquaint themselves with new technology, the jobs will be rewarding
and challenging.

2. Socio-cultural Factors:

The social environment of an individual includes his relationship with family

members, friends, colleagues, supervisors and subordinates. The behaviour of other
people not with the individual, but in general, is also a part of his social
environment. Similarly, every individual has a cultural background, which shapes
his values and beliefs. Work ethics achievement need, effort-reward expectations
and values are important cultural factors having impact on the individual
behaviour.

3. Political Factors

Political environment of the country will affect the individual behaviour not
directly, but through several other factors. In a politically stable country there will
be a steady level of employment (both in quantity and quality) and high level of
capital investment. Whereas companies are reluctant to invest large sums of money
in a politically instable country.

The political ideology of a country affects the individual behaviour through the
relative freedom available to its citizens. A country can have a controlled society
or less controlled society. The relative freedom available to the individuals can
affect their career choice, job design and performance.

4. Legal Environment.

Rules and laws are formalized and written standards of behaviour. Both rules and
laws are strictly enforced by the legal system. Laws relate to all the members of the
society e.g. Murder is a crime which is illegal and punishable by law and applies to
all the people within the system. Observing the laws voluntarily allows for
predictability of individual behaviour.

III. Organisational Factors:

Individual behaviour is influenced by a wide variety of organisational systems and

resources.

These organisational factors are as explained below:

1. Physical Facilities:

The physical environment at a work place is the arrangement of people and things
so that is has a positive influence on people. Some of the factors which influence
individual behaviour are noise level, heat, light, ventilation, cleanliness, nature of
job, office furnishing, number of people working at a given place etc.

2. Organisation Structure and Design:

These are concerned with the way in which different departments in the
organisation are set up. What is the reporting system? How are the lines of
communication established among different levels in the organisation. The
behaviour and performance of the individual is influenced by where that person fits
into the organisational hierarchy.
3. Leadership:

The system of leadership is established by the management to provide direction,

assistance, advice and coaching to individuals. The human behaviour is influenced
to a large extent by the behaviour of the superiors or leaders. Behaviour of the
leaders is more important than their qualities.

4. Reward System:

The behaviour and performance of the individuals is also influenced by the reward
system established by the organisation to compensate their employees.

PERSONALITY

Personality is usually defined as the set of habitual behaviors, cognitions and

emotional patterns that evolve from biological and environmental factors. While
there is no generally agreed upon definition of personality, most theories focus on
motivation and psychological interactions with ones environment. Trait-based
personality theories, such as those defined by Raymond Cattell define personality
as the traits that predict a person's behavior. On the other hand, more behaviorally
based approaches define personality through learning and habits. Nevertheless,
most theories view personality as relatively stable.

Personality means “The totality of qualities and traits, as of character or behavior,

that are peculiar to a specific person.”

Personality means “The totality of qualities that distinguish a group, organization,

or place.”

Personality means “the sum total of the physical, mental, emotional, and social
characteristics of an individual and the organized pattern of behavioral
characteristics of the individual.”

DETERMINANTS OF PERSONALITY

 Biological Factors
 Cultural Factors
 Family Factors
 Social Factors
  Situational Factors

Biological Factors-

Heredity:

• It refers to physical stature, facial attractiveness, sex, temperament, muscle

composition and
reflexes,energy level, and biological rhythms are characteristics that are
considered to be inherent.
• It plays an important part in determining an individual's personality.
• Heredity approach argues that the ultimate explanation of an individual's
personality is the
molecular structures of the genes, which are located in the chromosomes.
• Recent research studies shows that young children lend strong support to the
power of heredity and
finding shows that some personality traits may be built into the same genetic
code that affects
factors like height and hair color.
• Brain is the second biological approach to determine personality.
• It plays an important role in determining personality.
• Electrical Stimulation of the Brain (ESB) and Split brain psychology results
indicates that a better
understanding of human personality and behavior might come from a closer
study of the brain.
• The definite areas of the human brain are associated with pain and pleasure.
Research study shows
that these things are true.
• It is third biological approach to determine personality.
• Physiologists and psychologists felt that biological functions like brainwave
patterns, gastric and
hormonal secretions, and fluctuations in blood pressure and skin temperature
were beyond
conscious control. Recent research shows that these functions can be consciously
controlled
through biofeedback techniques.
• For this purpose, individual can learns the internal rhythms of a particular body
process through
electronic signals that are feedback from equipment which is wired to body.
• In this process, the person can learn to control the body process through
questions.
• It is one of the interesting topics to do future research work in personality.

Physical Features:
• It is third biological approach to determine personality.
• It is vital ingredient of the personality, it focus an individual person's external
appearance which also determined the personality.
• Physical features like tall or short, fat or skinny, black or white. These physical
features will be influenced the personal effect on others and also affect self concept
of individual.
• Recent research studies shows that definitely this features influence to individual
personality in an organization.
In totally, heredity would be fixed at birth and no amount of experience can be
altering them through creation of suitable environment. Apart from this,
personality characteristics are not completely dictated by heredity. There are other
factors also influenced to determining
personality.
Cultural Factors "Each culture expects, and trains, its members to behave in ways
that are acceptable to the group. To a marked degree, the child's cultural group
defines the range of experiences and situations he is likely to encounter and the
values and personality characteristics that will reinforced and hence learned".-
PaulHMussen
• Cultural factors are also major factors which influence to determine individual
personality.
• It refers to traditional practice, customs, procedure, norms and rules and
regulation followed by the society.
• It significantly influence to individual behavior compare to biological factors.
• Cultural factors determine attitudes towards independence, aggression,
competition, cooperation, positive thinking, team spirit, and a host of the human
being and discharge his/her duties towards valuable responsibilities to society.
• Western culture influence to Indian society. It is best example of the cultural
factors also determine the personality.
Family Factors • Family factors are also major factors which influence to
determine individual
personality.
• Family consists of husband and wife and their children's.
• Family role is very important for nurturing and personality development of their
children.
• Family will be guided, supervised, take care of all family members, cooperation,
Organizational Behavior coordination and cooperation in work and also explained
the role and responsibilities towards the family, society and real life.
• Family either directly or indirectly influence to person for development of
individual
personality.
Social Factors • Social factors are also major factors which influence to determine
individual personality.
• It involves the reorganization of individual's in an organization or society.
• It refers to acquiring of wide range of personality by acquiring and absorbed by
themselves in the society or an organization.
• Socialization process is starting from home and extending to work environment
in an organization or society.
• It focuses on good relationships, cooperation, coordination and interaction among
the members in the society or an organization or a family.
In totally, environment factors consist of cultural factors, family factors, and social
factors.
Situational Factors • Situational factors also influence to determine of personality.
• Situational factors are very important to change the individual behavior in a
different circumstance at different situations, it also influence to personality of
individual person.
• In general term, personality is stable and consistent and it does change in
different
situations. The Interaction of Personality and Situational Factors are outlined:
•Strong situational pressures
•Personality may not predict behavior Example: enforcement of rules
•Weak Situational pressures
•Personality may predict behavior Example: Customer sales representative
• A strong situation can overwhelm the effects of individual personalities by
providing strong cues for appropriate behavior.
PERSONALITY THEORIES
PSYCHOANALYTICAL THEORY OF PERSONALITY
 Developed by Sigmund Freud
 Importance of instincts
 Sexual instinct
 Aggressive instinct
 Instincts must be balanced with social
 Acceptability

FREUD'S EGO, SUPEREGO, ID

Freud conceptualized three separate but interactive psychic parts. The id is the
source of drives, including biological drives such as the sex and death drives. The
id also stores the repressions the superego passes from conscious experiences.
Ideologies and beliefs guide our behavior, and these reside within the superego.
The superego restricts the flow of unwieldy drives upon the conscious mind. The
ego regulates the conscious mind's rational decision making processes, coping with
the environment, and so on.

ID
 Unconscious drives and instincts
 Follows the pleasure principle, instant gratification
EGO
 Follows the reality principle
 Balancing id’s demands with social approval
 Ego prevents anxiety by keeping troubling desires, memories from
consciousness-
 Defense Mechanisms/Examples
 Repression
 Denial
 Reaction formation
 Rationalization
  Projection
 Sublimation
Superego
 Moral guardian, conscience
 May impose self-punishment, guilt, shame

TRAIT THEORY
There are near about 16 triats.
 Personality consists of traits
 Stable, enduring characteristics or dispositions
 Describe and predict behavior
 Focus on
 How people differ in traits
 Ways of measuring traits
–Organization of traits

SOCIAL-COGNITIVE THEORY
 Personality is based on learning
 Going beyond traditional behaviorism
Importance of
 Cognitive aspects of behavior
 Expectancies
 Social aspects of behavior
 Imitation
TRAITS FOR BUILDING POSITIVE PERSONALITY
 Accept Responsibility:
 Show consideration :
 Think Win-Win
 Choose your words carefully
 Never Criticize, Complain and Condemn
  Smile and Be Kind :
 Put Positive interpretation on other people’s behavior:
 Be a Good Listener
 Be Enthusiastic
 Give honest and Sincere Appreciation
 When you make a mistake, accept it and make it easy to amend:
 Discuss but don’t argue
 Don’t Gossip
 Turn your promises into commitment
 Be grateful but do not expect gratitude
 Be dependable and practice loyalty
 Avoid bearing grudges
 Practice honesty, Integrity and Sincerity
 Practice Humility
 Be understanding and Caring
 Practice courtesy on daily basis
 Develop a sense of humor
 Don’t be sarcastic and put others down
 To have a friend be a Friend
 Show Empathy

DEVELOPING POSITIVE PERSONALITY

 Defensive Approach
 Imaginary Anchoring or Invisible Counseling Committee
 Physical Action / Body Language Approach
 Domino-effect. Direct exposure to good personalities or environment

GENERATING GOOD IDEAS

 Ideas rule the world and thoughts rule your life.

 Success starts with an idea.
 Every idea worth considering.
 Treat the ideas like new born babies
 Treat them tenderly
 They can get killed pretty quickly.
 Treat them gently
  They can be bruised in infancy.
 Treat them respectfully,
 They could be most valuable things that ever came into your life.
 Treat them protectively
 Don’t let them get away
 Treat them nutritionally
 Feed them and feed them well.
 Treat them antiseptically
 Don’t let them get infected with the germs of negative thought.
 Treat them responsively, Respond; Act ; Do something with them.
 Be possibility thinker... Look every idea as prospect.
 Forming good habits:
 Personal grooming
 Self efficacy
 Self esteem
 Motivational processes
 Attitude formation

PERCEPTION
DEFINITION

The process by which people translate sensory impressions into a coherent and
unified view of the world around them. Though necessarily based on incomplete
and unverified (or unreliable) information, perception is equated with reality for
most practical purposes and guides human behavior in general.

The perceptual process is the method by which humans take information, or

stimuli, from the environment and create meaning or reaction to the stimuli.
Perceptual process is a continual function of the brain. People may not be aware of
the actual steps of the process because it is automatic and instantaneous.

The process of perceiving something with the senses….

a.The process or state of being aware of something: the perception of time.
b. Insight or knowledge gained by thinking: the perception that inheritance must be
coded in
DNA.
c. The capacity for such insight or knowledge: theories of how to enhance human
perception.
d. An insight or point of knowledge: The article is full of astute perceptions.
An interpretation or impression; an opinion or belief: doctors working to change
the public
perception of certain diseases.

Perceptual Process

Perception is the organization, identification, and interpretation of sensory

information to represent and understand the environment.

Perceptual Process

The perceptual process is the sequence of psychological steps that a person uses to
organize and interpret information from the outside world. The steps are:

 Objects are present in the world.

 A person observes.
 The person uses perception to select objects.
 The person organizes the perception of objects.
 The person interprets the perceptions.
 The person responds.

The selection, organization, and interpretation of perceptions can differ among

different people. Therefore, when people react differently in a situation, part of
their behavior can be explained by examining their perceptual process, and how
their perceptions are leading to their responses.

FACTORS INFLUENCING PERCEPTION

Perceptual selection is driven by internal and external factors.

Internal factors include:

  Personality – Personality traits influence how a person selects perceptions.
For instance, conscientious people tend to select details and external stimuli
to a greater degree.
 Motivation – People will select perceptions according to what they need in
the moment. They will favor selections that they think will help them with
their current needs, and be more likely to ignore what is irrelevant to their
needs.
 Experience – The patterns of occurrences or associations one has learned in
the past affect current perceptions. The person will select perceptions in a
way that fits with what they found in the past.

External factors include:

 Size – A larger size makes it more likely an object will be selected.

 Intensity – Greater intensity, in brightness, for example, also increases
perceptual selection.
 Contrast – When a perception stands clearly out against a background, there
is a greater likelihood of selection.
 Motion – A moving perception is more likely to be selected.
 Repetition – Repetition increases perceptual selection.
 Novelty and familiarity – Both of these increase selection. When a
perception is new, it stands out in a person’s experience. When it is familiar,
it is likely to be selected because of this familiarity.
 Unit III Motivation
DEFINITION
Motivation is the reason for people's actions, desires, and needs. Motivation is also
one's direction to behavior, or what causes a person to want to repeat a behavior. A
motive is what prompts the person to act in a certain way, or at least develop an
inclination for specific behaviour.
According to Maehr and Meyer, "Motivation is a word that is part of the popular
culture as few other psychological concepts are.

Some definitions are discussed as follows:

“A motive is an inner state that energizes, activates, or moves and directs or

channels behaviour goals.”

“It is the stimulation of any emotion or desire operating upon one’s will and
promoting or driving it to action.”
“Motivation is the complex of forces starting and keeping a person at work in an
organization.”
“Motivation implies any emotion or desire which so conditions one’s will that the
individual is properly led into action.”

Nature of Motivation:

Motivation is a psychological phenomena which generates within an individual. A

person feels the lack of certain needs, to satisfy which he feels working more. The
need satisfying ego motivates a person to do better than he normally does.

From definitions given earlier the following inferences can be derived:

1. Motivation is an inner feeling which energizes a person to work more.

2. The emotions or desires of a person prompt him for doing a particular work.

3. There are unsatisfied needs of a person which disturb his equilibrium.

4. A person moves to fulfill his unsatisfied needs by conditioning his energies.

5. There are dormant energies in a person which are activated by channelizing
them into actions.

IMPORTANCE OF MOTIVATION

Motivation is a very important for an organization because of the following

benefits it provides:

1. Puts human resources into action

Every concern requires physical, financial and human resources to

accomplish the goals. It is through motivation that the human resources can
be utilized by making full use of it. This can be done by building willingness
in employees to work. This will help the enterprise in securing best possible
utilization of resources.

2. Improves level of efficiency of employees

The level of a subordinate or a employee does not only depend upon his
qualifications and abilities. For getting best of his work performance, the gap
between ability and willingness has to be filled which helps in improving the
level of performance of subordinates. This will result into-

a. Increase in productivity,
b. Reducing cost of operations, and
c. Improving overall efficiency.
3. Leads to achievement of organizational goals

The goals of an enterprise can be achieved only when the following factors
take place :-

a. There is best possible utilization of resources,

b. There is a co-operative work environment,
c. The employees are goal-directed and they act in a purposive manner,
d. Goals can be achieved if co-ordination and co-operation takes place
simultaneously which can be effectively done through motivation.
4. Builds friendly relationship

Motivation is an important factor which brings employees satisfaction. This

can be done by keeping into mind and framing an incentive plan for the
benefit of the employees. This could initiate the following things:
 a. Monetary and non-monetary incentives,
b. Promotion opportunities for employees,
c. Disincentives for inefficient employees.

In order to build a cordial, friendly atmosphere in a concern, the above steps

should be taken by a manager. This would help in:

iv. Effective co-operation which brings stability,

v. Industrial dispute and unrest in employees will reduce,
vi. The employees will be adaptable to the changes and there will be no
resistance to the change,
vii. This will help in providing a smooth and sound concern in which
individual interests will coincide with the organizational interests,
viii. This will result in profit maximization through increased productivity.

Leads to stability of work force

Stability of workforce is very important from the point of view of reputation

and goodwill of a concern. The employees can remain loyal to the enterprise
only when they have a feeling of participation in the management. The skills
and efficiency of employees will always be of advantage to employees as
well as employees. This will lead to a good public image in the market
which will attract competent and qualified people into a concern. As it is
said, “Old is gold” which suffices with the role of motivation here, the older
the people, more the experience and their adjustment into a concern which
can be of benefit to the enterprise.

From the above discussion, we can say that motivation is an internal feeling which
can be understood only by manager since he is in close contact with the employees.
Needs, wants and desires are inter-related and they are the driving force to act.
These needs can be understood by the manager and he can frame motivation plans
accordingly. We can say that motivation therefore is a continuous process since
motivation process is based on needs which are unlimited. The process has to be
continued throughout.

We can summarize by saying that motivation is important both to an individual and

a business.
Motivation is important to an individual as:

1. Motivation will help him achieve his personal goals.

 2. If an individual is motivated, he will have job satisfaction.
3. Motivation will help in self-development of individual.
4. An individual would always gain by working with a dynamic team.

Similarly, motivation is important to a business as:

1. The more motivated the employees are, the more empowered the team is.
2. The more is the team work and individual employee contribution, more
profitable and successful is the business.
3. During period of amendments, there will be more adaptability and creativity.
4. Motivation will lead to an optimistic and challenging attitude at work place.

Types of Motivation:

When a manager wants to get more work from his subordinates then he will have
to motivate them for improving their performance. They will either be offered
incentive for more work, or may be in the space of rewards, better reports,
recognition etc., or he may instill fear in them or use force for getting desired
work.

The following are the types of motivation:

1. Positive Motivation:

Positive motivation or incentive motivation is based on reward. The workers are

offered incentives for achieving the desired goals. The incentives may be in the
shape of more pay, promotion, recognition of work, etc. The employees are offered
the incentives and try to improve their performance willingly.

According to Peter Drucker, the real and positive motivators are responsible for
placement, high standard of performance, information adequate for self- control
and the participation of the worker as a responsible citizen in the plant community.
Positive motivation is achieved by the co-operation of employees and they have a
feeling of happiness.

2. Negative Motivation:

Negative or fear motivation is based on force or fear. Fear causes employees to act
in a certain way. In case, they do not act accordingly then they may be punished
with demotions or lay-offs. The fear acts as a push mechanism. The employees do
not willingly co-operate, rather they want to avoid the punishment.
Though employees work up-to a level where punishment is avoided but this type of
motivation causes anger and frustration. This type of motivation generally becomes
a cause of industrial unrest. In spite of the drawbacks of negative motivation, this
method is commonly used to achieve desired results. There may be hardly any
management which has not used negative motivation at one or the other time.

PROCESS OF MOTIVATION
The motivational process is the steps thatyou take to get motivated. It is a process,
that when followed producesincredible results. It is amazing what you can do if
you are properly motivated,and getting properly motivated is a matter of following
the motivationalprocess. Like any other process it takes a little work and foresight
andplanning on your part. However, the return on your investment of time
issignificant, and it is important when needing extra motivation that you applythe
motivational process. Motivational Process 1. Determining what you wantto be
motivated to do or accomplish. This is a specific goal in a very specificarea of your
life. The motivational process is not best for general motivation,but does wonders
when you need to get motivated to do a specific task, or reacha specific goal. 2.
Making up the steps to get to your determined goal, littleby little. These are the
little things you need to do, like read your goals eachby little. These are the little
things you need to do, like read your goals eachmorning. This is an important part
of the motivational process because this isthe part that breaks the task up in to
manageable and convenient sized pieces.When you look at the task at hand in little,
manageable segments, it does notseem as overwhelming, and thus it is easier to get
motivated, and to staymotivated. 3. Removing your distractions so that you stay
motivated. This iskey to the motivational process. Getting motivated does little
good if you can'tstay motivated, so this part of the process is the part where you
remove thethings the ruin your ability to stay focused and stay motivated.
The process of motivation of an organization goes step by step. The first stepis
deprivation which is known as need, drive is the tensions or drives tofulfill a need,
actions that is a goal directed behavior and satisfaction thisis reduction of the dive
from the original need.
There are many ways in which to motivate a employee in the work place.
Motivation means getting the employee to focus and put his/her efforts all into the
work they do. It sets the employee in the same direction as management and gets
everyone working for the business goals. Our motivation is what derives us to
achieve success in all aspects of our lives. Motivation is an internal state that
arouses directs and maintains behaviour.

In today's large corporation world motivation plays an important role in boasting a

personsmorale, efficiency and increase in his/her productivity.

The work motivation theories are categorized into two they are content theory i.e.
what motivates us? And process theories i.e. how we become motivated.

I will begin first by explaining the process theories and then reviewing some
traditional process theories of work motivation.

Theories of Motivation

Process theories attempt to explain the thought processes concerning the 'why' and
'how' people choose one action over another and get motivated.
MASLOWS HIERARCHY OF NEEDS

Maslow's hierarchy of needs is often portrayed in the shape of a pyramid with the
largest, most fundamental needs at the bottom and the need for self-actualization
and self-transcendence at the top.

The most fundamental and basic four layers of the pyramid contain what Maslow
called "deficiency needs" or "d-needs": esteem, friendship and love, security, and
physical needs. If these "deficiency needs" are not met – with the exception of the
most fundamental (physiological) need – there may not be a physical indication,
but the individual will feel anxious and tense. Maslow's theory suggests that the
most basic level of needs must be met before the individual will strongly desire (or
focus motivation upon) the secondary or higher level needs. Maslow also coined
the term "metamotivation" to describe the motivation of people who go beyond the
scope of the basic needs and strive for constant betterment.

The human brain is a complex system and has parallel processes running at the
same time, thus many different motivations from various levels of Maslow's
hierarchy can occur at the same time. Maslow spoke clearly about these levels and
their satisfaction in terms such as "relative", "general", and "primarily". Instead of
stating that the individual focuses on a certain need at any given time, Maslow
stated that a certain need "dominates" the human organism. Thus Maslow
acknowledged the likelihood that the different levels of motivation could occur at
any time in the human mind, but he focused on identifying the basic types of
motivation and the order in which they should be met.

Physiological needs

Physiological needs are the physical requirements for human survival. If these
requirements are not met, the human body cannot function properly and will
ultimately fail. Physiological needs are thought to be the most important; they
should be met first.

Air, water, and food are metabolic requirements for survival in all animals,
including humans. Clothing and shelter provide necessary protection from the
elements. While maintaining an adequate birth rate shapes the intensity of the
human sexual instinct, sexual competition may also shape said instinct.

Safety needs

Once a person's physiological needs are relatively satisfied, their safety needs take
precedence and dominate behavior. In the absence of physical safety – due to war,
natural disaster, family violence, childhood abuse, etc. – people may (re-
)experience post-traumatic stress disorder or transgenerational trauma. In the
absence of economic safety – due to economic crisis and lack of work
opportunities – these safety needs manifest themselves in ways such as a
preference for job security, grievance procedures for protecting the individual from
unilateral authority, savings accounts, insurance policies, disability
accommodations, etc. This level is more likely to be found in children as they
generally have a greater need to feel safe.

Safety and Security needs include:

 Personal security
 Financial security
 Health and well-being
 Safety needs against accidents/illness and their adverse impacts

Social belonging

After physiological and safety needs are fulfilled, the third level of human needs is
interpersonal and involves feelings of belongingness. This need is especially strong
in childhood and it can override the need for safety as witnessed in children who
cling to abusive parents. Deficiencies within this level of Maslow's hierarchy – due
to hospitalism, neglect, shunning, ostracism, etc. – can adversely affect the
individual's ability to form and maintain emotionally significant relationships in
general, such as:

 Friendships
 Intimacy
 Family

According to Maslow, humans need to feel a sense of belonging and acceptance

among their social groups, regardless whether these groups are large or small. For
example, some large social groups may include clubs, co-workers, religious
groups, professional organizations, sports teams, and gangs. Some examples of
small social connections include family members, intimate partners, mentors,
colleagues, and confidants. Humans need to love and be loved – both sexually and
non-sexually – by others.[2] Many people become susceptible to loneliness, social
anxiety, and clinical depression in the absence of this love or belonging element.
This need for belonging may overcome the physiological and security needs,
depending on the strength of the peer pressure.

Esteem

All humans have a need to feel respected; this includes the need to have self-
esteem and self-respect. Esteem presents the typical human desire to be accepted
and valued by others. People often engage in a profession or hobby to gain
recognition. These activities give the person a sense of contribution or value. Low
self-esteem or an inferiority complex may result from imbalances during this level
in the hierarchy. People with low self-esteem often need respect from others; they
may feel the need to seek fame or glory. However, fame or glory will not help the
person to build their self-esteem until they accept who they are internally.
Psychological imbalances such as depression can hinder the person from obtaining
a higher level of self-esteem or self-respect.

Most people have a need for stable self-respect and self-esteem. Maslow noted two
versions of esteem needs: a "lower" version and a "higher" version. The "lower"
version of esteem is the need for respect from others. This may include a need for
status, recognition, fame, prestige, and attention. The "higher" version manifests
itself as the need for self-respect. For example, the person may have a need for
strength, competence, mastery, self-confidence, independence, and freedom. This
"higher" version takes precedence over the "lower" version because it relies on an
inner competence established through experience. Deprivation of these needs may
lead to an inferiority complex, weakness, and helplessness.

Maslow states that while he originally thought the needs of humans had strict
guidelines, the "hierarchies are interrelated rather than sharply separated" This
means that esteem and the subsequent levels are not strictly separated; instead, the
levels are closely related.

Self-actualization

"What a man can be, he must be." This quotation forms the basis of the perceived
need for self-actualization. This level of need refers to what a person's full
potential is and the realization of that potential. Maslow describes this level as the
desire to accomplish everything that one can, to become the most that one can be.
Individuals may perceive or focus on this need very specifically. For example, one
individual may have the strong desire to become an ideal parent. In another, the
desire may be expressed athletically. For others, it may be expressed in paintings,
pictures, or inventions. As previously mentioned, Maslow believed that to
understand this level of need, the person must not only achieve the previous needs,
but master them.

Herzberg's Two-Factor Theory

Frederick Herzberg was a psychologist interested in the correlation between

employee attitude and workplace motivation. He wanted to find out what made
people feel satisfied and unsatisfied when it came to the workplace. After spending
countless hours interviewing employees about what made them feel both good and
bad about their jobs, Herzberg developed a theory of workplace motivation called
the two-factor theory. The two-factor theory is based on the assumption that there
are two sets of factors that influence motivation in the workplace by either
enhancing employee satisfaction or hindering it.

The first of the two are called hygiene factors and no, I am not talking about the
personal hygiene of your co-workers, though that can certainly be questionable at
times. Rather, Herzberg used the term 'hygiene' to describe factors that cause
dissatisfaction in the workplace, are extrinsic (or independent of the work itself),
and are linked to things such as compensation, job security, organizational politics,
working conditions, quality of leadership, and relationships between supervisors,
subordinates, and peers.
According to Herzberg, these factors do not motivate employees. However, when
they are missing or inadequate, hygiene factors can cause serious dissatisfaction.
Just think about how unhappy you would be in a job where you were underpaid,
were in fear of losing your job, dealt constantly with gossip, lacked effective
leadership, and were surrounded by coworkers whom you despised. Hygiene
factors are all about making an employee feel comfortable, secure, and happy.
When hygiene factors are not fulfilled, it feels like something is missing or not
quite right, kind of how you would feel if you couldn't shower, brush your teeth, or
wash your hands after using the bathroom.

The second factor is motivators or satisfiers. These are linked to employee

motivation and arise from intrinsic, or dependent, conditions of the job itself.
Factors for satisfaction include responsibility, job satisfaction, recognition,
achievement, opportunities for growth, and advancement.

Motivation-Hygiene Theory

Herzberg's findings revealed that certain characteristics of a job are consistently

related to job satisfaction, while different factors are associated with job
dissatisfaction. These are:

Motivator Factor Hygiene Factor

Achievement Company policies
Recognition Supervision
The work itself Relationship with supervisor and peers
Responsibility Work conditions
Advancement Salary
Growth Status

Expectancy Theory

The basic premise of Victor Vroom's Expectancy theory is that motivation is based
on the strength with which individuals want something and how likely individuals
think they will get it. Wood refers to expectancy theory as the argument "that work
motivation is determined by individual beliefs about effort-performance
relationships and the desirability's of various work outcomes from different
performance levels".
The framework of expectancy theory states that motivation to behave or perform
depends on the following variables:

Expectancy refers to the effort-performance relationship - It represents the strength

of one's belief that the effort put into a task will result in a similar level of
performance outcome. Expectancy is equal to one if an individual is certain that
the performance could be achieved.

Instrumentality refers to the performance- reward relationship - It is the strength of

one's belief that a performance will lead to reward. Instrumentality is equal to one
if an individual is certain that the reward will be received.

Valence refers to the attractiveness or utility of the reward to the individual - The
scale for valence ranges from -1 (an undesirable reward) to +1 (a desirable
reward). Rewards can be either intrinsic, that is, concerned with

Vroom suggests that "motivation to work results from expectancy multiplied by

instrumentality multiplied by valence". Hence the equation is as follows:

Motivation (M) =Expectancy (E) X Instrumentality (I) X Valence (V)

Some suggestion on how managers can apply the basic ideas of expectancy theory:

· Managers should first determine the rewards anticipated by employees.

· Managers should decide what kinds and levels of performance are needed to meet
organizational goals, ensure that the desired levels of performance are attainable.

· Managers need to ensure that desired outcomes and desired performance are
linked.

· Rewards need to be large enough, and the total system needs to be equitable.

· Equity Theory

Stacy Adams' Equity theory suggests that individuals compare their work inputs
and outcomes to what they perceive others performing similar jobs are receiving
(or what they received when they were performing a similar job). As noted by
Wood, "inequities exist whenever people feel that the rewards or inducements they
receive for their work inputs or contributions are unequal to the rewards other
people appear to have received for their inputs".

Felt inequities can be either negative or positive, a negative felt inequity occurs
when individuals feel that their outcomes are less for the same inputs, or that
outcomes are the same for greater inputs, compared to their peer/s, and vice versa.

ERG Theory of Motivation

To bring Maslow’s need hierarchy theory of motivation in synchronization with

empirical research, Clayton Alderfer redefined it in his own terms. His rework is
called as ERG theory of motivation. He recategorized Maslow’s hierarchy of needs
into three simpler and broader classes of needs:

 Existence needs- These include need for basic material necessities. In short,
it includes an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individual’s have for
maintaining significant interpersonal relationships (be it with family, peers
or superiors), getting public fame and recognition. Maslow’s social needs
and external component of esteem needs fall under this class of need.
 Growth needs- These include need for self-development and personal
growth and advancement. Maslow’s self-actualization needs and intrinsic
component of esteem needs fall under this category of need.
McClelland’s theory of needs is one such theory that explains this process of
motivation by breaking down what and how needs are and how they have to be
approached. David McClelland was an American Psychologist who developed his
theory of needs or Achievement

Theory of Motivation which revolves around three important aspects, namely,

Achievement, Power And Affiliation. This theory was developed in the 1960’s and
McClelland’s points out that regardless of our age, sex, race or culture, all of us
possess one of these needs and are driven by it. This theory is also known as the
Acquired Needs as McClelland put forth that the specific needs of an individual are
acquired and shaped over time through the experiences he has had in life.

Psychologist David McClelland advocated Need theory, also popular as Three

Needs Theory. This motivational theory states that the needs for achievement,
power, and affiliation significantly influence the behavior of an individual, which
is useful to understand from a managerial context.

This theory can be considered an extension to Maslow’s hierarchy of needs. Per

McClelland, every individual has these three types of motivational needs
irrespective of their demography, culture or wealth. These motivation types are
driven from real life experiences and the views of their ethos.

Need for Achievement

The need for achievement as the name itself suggests is the urge to achieve
something in what you do. If you are a lawyer it is the need to win cases and be
recognized, if you are a painter it is the need to paint a famous painting. It is the
need that drives a person to work and even struggle for the objective that he wants
to achieve. People who possess high achievement needs are people who always
work to excel by particularly avoiding low reward low risk situations and difficult
to achieve high risk situations.

Such people avoid low risk situations because of the lack of a real challenge and
their understanding that such achievement is not genuine. They also avoid high risk
situations because they perceive and understand it to be more about luck and
chance and not about one’s own effort. The more the achievements they make the
higher their performance because of higher levels of motivation. These people find
innovative clever ways to achieve goals and consider their achievement a better
reward than financial ones. They take calculated decision and always appreciate
feedback and usually works alone.
The individuals motivated by needs for achievement usually have a strong desire
of setting up difficult objectives and accomplishing them. Their preference is to
work in the result oriented work environment and always appreciate any feedback
on their work. Achievement based individuals take calculated risks to reach their
goals and may circumvent both high-risk and low-risk situations. They often prefer
working alone. This personality type believes in a hierarchical structure derived
primarily by work based achievements.

Need for power

The need for power is the desire within a person to hold control and authority over
another person and influence and change their decision in accordance with his own
needs or desires. The need to enhance their self esteem and reputation drives these
people and they desire their views and ideas to be accepted and implemented over
the views and ideas over others. These people are strong leaders and can be best
suited to leading positions. They either belong to Personal or Institutional power
motivator groups. If they are a personal power motivator they would have the need
to control others and a institutional power motivator seeks to lead and coordinate a
team towards an end.

The individuals motivated by needs for power have a desire to control and
influence others. Competition motivates them and they enjoy winning arguments.
Status and recognition is something they aspire for and do not like being on the
losing side. They are self-disciplined and expect the same from their peers and
teams. The do not mind playing a zero-sum game, where, for one person to win,
another must lose and collaboration is not an option. This motivational type is
accompanied by needs for personal prestige, and a better personal status.

Need for Affiliation

The need for affiliation is urge of a person to have interpersonal and social
relationships with others or a particular set of people. They seek to work in groups
by creating friendly and lasting relationships and has the urge to be liked by others.
They tend to like collaborating with others to competing with them and usually
avoids high risk situations and uncertainty

The individuals motivated by needs for affiliation prefer being part of a group.
They like spending their time socializing and maintaining relationships and possess
strong desire to be loved and accepted. These individuals stick to basics and play
by the books without feeling a need to change things, primarily due to a fear of
being rejected. People in this group tend to adhere to the norms of the culture in
that workplace and typically do not change the norms of the workplace for fear of
rejection. Collaboration is the way to work for them competition remains
secondary. They are not risk seekers and are more cautious in their approach.
These individuals work effectively in roles based on social interactions, for
instance, client service and other customer interaction positions.

Theory X and Theory Y

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two

aspects of human behaviour at work, or in other words, two different views of
individuals (employees): one of which is negative, called as Theory X and the
other is positive, so called as Theory Y. According to McGregor, the perception of
managers on the nature of individuals is based on variousassumptions.

Assumptions of Theory X

 An average employee intrinsically does not like work and tries to escape it
whenever possible.
 Since the employee does not want to work, he must be persuaded,
compelled, or warned with punishment so as to achieve organizational goals.
A close supervision is required on part of managers. The managers adopt a
more dictatorial style.
 Many employees rank job security on top, and they have little or no
aspiration/ ambition.
 Employees generally dislike responsibilities.
 Employees resist change.
 An average employee needs formal direction.

Assumptions of Theory Y

 Employees can perceive their job as relaxing and normal. They exercise
their physical and mental efforts in an inherent manner in their jobs.
 Employees may not require only threat, external control and coercion to
work, but they can use self-direction and self-control if they are dedicated
and sincere to achieve the organizational objectives.
 If the job is rewarding and satisfying, then it will result in employees’
loyalty and commitment to organization.
  An average employee can learn to admit and recognize the responsibility. In
fact, he can even learn to obtain responsibility.
 The employees have skills and capabilities. Their logical capabilities should
be fully utilized. In other words, the creativity, resourcefulness and
innovative potentiality of the employees can be utilized to solve
organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees’ nature
and behaviour at work, while Theory Y presents an optimistic view of the
employees’ nature and behaviour at work. If correlate it with Maslow’s theory, we
can say that Theory X is based on the assumption that the employees emphasize on
the physiological needs and the safety needs; while Theory X is based on the
assumption that the social needs, esteem needs and the self-actualization needs
dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X. Thus,
he encouraged cordial team relations, responsible and stimulating jobs, and
participation of all in decision-making process.
 Unit IV Group Behaviour
DEFINITION : -

Groups are composed of individuals. Hence, the group behaviour means behaviour
of its members. In practice, each member of the group affects the behaviour of
other members and, in turn, is also affected by them. The nature and patterns of
reinforcement the members receive through their interaction with one another is
also determined by the group itself. This is because the behaviour of individual
members in a group becomes different than their behaviour outside the group
situation. Therefore, while studying group behaviour, the factors that should be
understood are group norms, group cohesion, group role, group conflict and group
decision-making.
A group of people or things is a number of people or things which are together in
one place at one time.
A group is a set of people who have the same interests or aims, and who organize
themselves to work or act together.
CHARACTERISTICS OF GROUP

A figure of people who act together with one other are mentally aware of one
another perceives themselves to be a compilation.

Uniqueness of groups:

Group consciousness

A sense of shared purpose and identity

Shared communication and net work

Shared goals

Interdependence

Interaction

Groups play a very important role on organizations. Groups are an essential feature
of the work patterns of organizations.
Why do People form and Join Groups?

Groups are formed and joined for a variety of reasons. The most popular reasons
for forming and joining a group are related to our needs for safety and security,
relatedness or belonging, esteem, power and identity. A brief description of these
follows :

1. Safety and Security Needs : Groups provide protection to their members from
outside pressures. That is why workers join trade unions to feel safe and secure.
Even in the nursery class, when the teacher asks the small kids who broke the toy,
he seldom gets an answer. What happens is all the kids keep mum or quiet.
Although young, they protected their member by not disclosing any body's name or
pointing out at any one in group.

2. Relatedness or Belongingness Needs : People being social beings, belonging to

or relating to groups satisfies a number of their social needs. In every organization,
there are many persons who are very isolated or who prefer to be absent from work
most of the times. Studies show, such phenomena occur more where people are
unable to belong to groups.

3. Esteem Needs : When one is a member of a group and does some good piece of
work, gets a praise from others. This, in turn, brings a sense of recognition to the
group member, on the one hand and also a sense of fulfillment of one's need for
growth towards higher achievement of work and better career prospects, on the
other.

4. Power : One of the appealing aspects of groups is that they represent power and
also offer power to their members. Workers enjoy much greater power by joining
groups than they do as individuals. This is because of at least two reasons :

(i) There is strength in numbers and

(ii) United we stand, divided we fall.

5. Identity : As a member of a group, an individual gets identity "Who am I" In

practice we understand ourselves through the behaviour of others towards us. For
example, when others praise us, we feel we are great, if others laugh at us, we see
ourselves as funny ones.
TYPES OF GROUP
FORMAL AND INFORMAL GROUP

Formal Groups

Schools, church, hospitals, government, civic organizations etc are all examples of
formal groups. In these groups, there are clearly defined hierarchical structures and
roles and responsibilities of the members. Inside these groups, there are formal
groups that are made by the management and entrusted with tasks that are
completed according to set procedure and guidelines by the members of the group.
The members are bound to the group in relationships of boss and subordinates.
Formals groupings are mostly made to achieve organizational goals and better
coordination while doing work related activities is the primary motive of formal
groups.

In formal groups, roles and responsibilities are defined, and so are the norms
governing the nature of interaction between the members of the group. The
duration of formal groups is predetermined though there are formal groups that
continue for very long. Of all the work inside an organization, majority is
completed through formal groups.

Informal Groups

Informal groups are not made by the management but get made on their own inside
an organization because of constant interaction between members. Personal
relationships rather than work related requirements dominate the formation and
working of informal groups inside organizations. Personal and psychological needs
of the members are satisfied by such formations, but the overall effectiveness of
work inside an organization is greatly affected by informal groups. Let us see this
effect through an example.

Though an employee from the sales team and another person working in
production may not be members of a formal group, they may have a great
friendship. This relationship enables the sales person to be aware of the delivery
schedule greatly enhancing his sales efforts. On the contrary, because of the
friendship, the production employee may prefer items sold by the sales employee
affecting the overall production schedule thus affecting the performance of the
production team.
The informal organization is the interlocking social structure that governs how
people work together in practice. It is the aggregate of, norms, personal and
professional connections through which work gets done and relationships are built
among people who share a common organizational affiliation or cluster of
affiliations. It consists of a dynamic set of personal relationships, social networks,
communities of common interest, and emotional sources of motivation. The
informal organization evolves, and the complex social dynamics of its members
also.

Features of Formal organisation:

(1) The formal organisational structure is created intentionally by the process of

organising.

(2) The purpose of formal organisation structure is achievement of organisational

goal.

(3) In formal organisational structure each individual is assigned a specific job.

(4) In formal organisation every individual is assigned a fixed authority or

decision-making power.

(5) Formal organisational structure results in creation of superior-subordinate

relations.

(6) Formal organisational structure creates a scalar chain of communication in the

organisation.

Advantages of Formal Organisation:

1. Systematic Working:

Formal organisation structure results in systematic and smooth functioning of an

organisation.

2. Achievement of Organisational Objectives:

Formal organisational structure is established to achieve organisational objectives.

3. No Overlapping of Work:
In formal organisation structure work is systematically divided among various
departments and employees. So there is no chance of duplication or overlapping of
work.

4. Co-ordination:

Formal organisational structure results in coordinating the activities of various

departments.

5. Creation of Chain of Command:

Formal organisational structure clearly defines superior subordinate relationship,

i.e., who reports to whom.

6. More Emphasis on Work:

Formal organisational structure lays more emphasis on work than interpersonal

relations.

Disadvantages of Formal Organisation:

1. Delay in Action:

While following scalar chain and chain of command actions get delayed in formal
structure.

2. Ignores Social Needs of Employees:

Formal organisational structure does not give importance to psychological and

social need of employees which may lead to demotivation of employees.

3. Emphasis on Work Only:

Formal organisational structure gives importance to work only; it ignores human

relations, creativity, talents, etc.

Informal Organisation:

In the formal organisational structure individuals are assigned various job

positions. While working at those job positions, the individuals interact with each
other and develop some social and friendly groups in the organisation. This
network of social and friendly groups forms another structure in the organisation
which is called informal organisational structure.

The informal organisational structure gets created automatically and the main
purpose of such structure is getting psychological satisfaction. The existence of
informal structure depends upon the formal structure because people working at
different job positions interact with each other to form informal structure and the
job positions are created in formal structure. So, if there is no formal structure,
there will be no job position, there will be no people working at job positions and
there will be no informal structure.

Features of informal organisation:

(1) Informal organisational structure gets created automatically without any

intended efforts of managers.

(2) Informal organisational structure is formed by the employees to get

psychological satisfaction.

(3) Informal organisational structure does not follow any fixed path of flow of
authority or communication.

(4) Source of information cannot be known under informal structure as any person
can communicate with anyone in the organisation.

(5) The existence of informal organisational structure depends on the formal

organisation structure.

Advantages of Informal Organisation:

1. Fast Communication:

Informal structure does not follow scalar chain so there can be faster spread of
communication.

2. Fulfills Social Needs:

Informal communication gives due importance to psychological and social need of

employees which motivate the employees.

3. Correct Feedback:
Through informal structure the top level managers can know the real feedback of
employees on various policies and plans.

Strategic Use of Informal Organisation. Informal organisation can be used to get

benefits in the formal organisation in the following way:

1. The knowledge of informal group can be used to gather support of employees

and improve their performance.

2. Through grapevine important information can be transmitted quickly.

3. By cooperating with the informal groups the managers can skillfully take the
advantage of both formal and informal organisations.

Disadvantages of Informal organisation:

1. Spread Rumours:

According to a survey 70% of information spread through informal organisational

structure are rumors which may mislead the employees.

2. No Systematic Working:

Informal structure does not form a structure for smooth working of an organisation.

3. May Bring Negative Results:

If informal organisation opposes the policies and changes of management, then it

becomes very difficult to implement them in organisation.

4. More Emphasis to Individual Interest:

Informal structure gives more importance to satisfaction of individual interest as

compared to organisational interest.

TYPES OF GROUP
FORMAL GROUP

Command Group: This type of group can be looked at like commandos. They
accompany a leader on a specific mission. For example, a company executive is
doing a presentation to a customer and needs to have an engineer and an
installation technician present during the presentation. The engineer and technician
make up members of the command group. For this type of group, they have
multiple tasks to accomplish - as opposed to a task group, which usually has only
one task to accomplish.

Task Group: A task group has one specific task to accomplish, and it is clearly
and specifically defined. They differ from a command group in that a command
group is assembled to help a leader with a specific job that could be general in
nature (say, doing a presentation), whereas a task group has a specific task they are
focused on and need to accomplish.

INFORMAL GROUP

The various kinds of informal groups are :

1. Friendship Groups : Friendship groups are associations of people who like

each other and who like to be together. Such groups are formed because members
have one or more common characteristics, such as age or ethnic heritage, political
beliefs, religious values and other bonds of attraction.

2. Interest Groups : Interest groups are composed of individuals who may not be
members of the same organization (command or task groups), but they are united
by their interest in a common issue. Example of interest groups may include a
group of University Professors. They organize a seminar on Law and Order
Problems in the State of Tamil Nadu.

3. Reference Group : A reference group is a special type of informal group that

people use to evaluate themselves. A reference group may not be an actual one that
meets together, it can be an imaginary group. The reference group for a new
university Lecturer, for example, may be other scholars in the same discipline at
other universities.

5 STAGES OF GROUP DEVELOPMENT

Forming

The “forming” stage occurs when the team first assembles together. During this
initial meeting, team members share information about their experiences and
develop first impressions of other members. The group leader plays a vital role
during this stage, as this leader is tasked with laying out the group's objectives,
methods and practices. The leader must also clarify each member's powers and
responsibilities to the group, as well as how each individual contributes to the
group's mission.

Storming

As its name implies, the "storming" stage is often the most turbulent time in any
group's life cycle. In some instances, the storming stage can bring about
"brainstorming," where the ideas are brought up, debated and measured by their
merits. In other cases, the "storming" can imply the clash of personalities, as the
dominant personas in the group attempt to wrest control of the company's mission
from the more passive members.

Norming

The "norming" phase occurs when the personalities of the group have settled into
their roles. During this phase, the individuals understand their responsibilities and
act as a cohesive unit to accomplish the company's goals. Each member respects
and appreciates the talents and contributions of the others. Members act out of a
sense of trust and community, rather than the competition and rivalry. A company
leader can delegate responsibilities to those members that work well together.

Performing

The "performing" phase sees the group at its peak. Each member knows his role
and carries out his duties with the full support and understanding of the rest of the
group. The workers reach their highest level of competence and motivation during
this phase as they see the company progress toward its goals. The company leaders
will continue to develop the team spirit and camaraderie needed to reach the goals
but will often not take part in day-to-day supervision.

Adjourning

The final phase, "adjourning," reflects the end of the group's life cycle. Adjourning
can occur when a project is completed, when members of the group leave the
company or when the company closes its doors permanently. Groups often use this
time to reflect on their accomplishments and instill the lessons that they have
learned during the process. Members can also use the adjourning phase to praise
other members who have performed well or adjust their strategies for the next
project.

GROUP DECISION MAKING PROCESS

Group decision making is a type of participatory process in which multiple
individuals acting collectively, analyze problems or situations, consider and
evaluate alternative courses of action, and select from among the alternatives a
solution or solutions. The number of people involved in group decision-making
varies greatly, but often ranges from two to seven. The individuals in a group may
be demographically similar or quite diverse. Decision-making groups may be
relatively informal in nature, or formally designated and charged with a specific
goal. The process used to arrive at decisions may be unstructured or structured.
The nature and composition of groups, their size, demographic makeup, structure,
and purpose, all affect their functioning to some degree. The external contingencies
faced by groups (time pressure and conflicting goals) impact the development and
effectiveness of decision-making groups as well.

The decision‐making process involves the following steps:

1. Define the problem.

2. Identify limiting factors.

3. Develop potential alternatives.

4. Analyze the alternatives.

5. Select the best alternative.

6. Implement the decision.

7. Establish a control and evaluation system.

GROUP EFFECTIVENESS

Factors and process which influence group effectiveness:

Task orientation- an efficient groups is the majority possible to stay alert on its
aims and targets that some one personality on your own and will be a great deal
more focused than a dysfunctional group. This possibly will be achieved of
through an organization goals and targets for the group as they progress through a
task.
Motivation through hierarchical flattening- The introduction of equality by the
adding up of management within the group structure. The crash of barriers stuck
between support staff and organization can lead to extra stress-free working
environment. Also organization with in group can uphold the focus and direction
of the group. A successful group will be skilled to introduce a new member to the
culture of the organization rapidly so the new member may not waste time in
settling in.

Group norms can serve to facilitate goal achievement- if each group member
knows how he is to behave and what is expected of them, and then greater
productivity is sure to ensue.

If suitable rewards are deliberately offered to the maximum performing group then
opposition will increase

In a successful group the aims and targets are complete clear to all members, no
one is puzzled or left exclusive of a task, nor are farm duties duplicated.

Based up on social identify theory and the ordinary desire to uphold optimistic self
perception; people like to identify with high status groups and subsequently will
work hard to stay associated with them.

The stereotyping of out-group factors can facilitate in -group unity

High expectations placed upon a group can lead its members to function more
effectively. Some possible benefits of high expectations are:

Increased responsibility
Independence and trust
Praise
Room for creativity
Seek comments
Over look minor setback

A group working successfully will make easy cultural differences, for example,
Americans and French tend to prefer not to work in a group where as the Japanese
do.

The construction of a successful group may be due to its members living and
socializing jointly, for example; the Google employees live together in apartment
style accommodation; this creates a sense of group harmony and also defines each
member's role in the strict hierarchy within the organization.

Self-Managing Teams

A self-managing team is a group of employees working together who are

accountable for all or most aspects of their task.

A self-managing team is a group of employees working together who are

accountable for most or all aspects of their task. A self-managing team has
considerable discretion over how its work gets done. This means the majority of
key decisions about activities are made by people with direct knowledge of, and
who are most affected by, those choices. Self-managing teams are distinct from
self-directed teams. While the latter define their own goals, the scope of a self-
managing team’s authority is limited by goals that are established by others.

Self Managed Teams

 Self-managing teams share work tasks and supportive or managerial tasks.

 Because they are both responsible for their outcomes and in control of their
decision -making process, members of the self-managing team may be more
motivated and productive than traditional teams.
 Self-managing teams are different from self-directed teams. Self-managing
teams work toward goals that are set for them by outside leadership, whereas
self-directed teams work toward a common goal that they define.

\
 Unit V Conflict and Stress Management
DEFINITION : -
A basic definition of organizational conflict is disagreement by individuals or
groups within the organization, which can center on factors ranging from resource
allocation and divisions of responsibility to the overall direction of the
organization. A common example of organizational conflict occurs when workers
advocate for higher pay and the business owner or management wants pay levels to
remain the same.
The different types of disagreement between employees or departments in an
organization, and how these affect its activities.

Types of Conflict

When most people hear the word conflict, they think of the term in a negative
manner. Surprisingly, conflict can actually be a positive within an organization.
Conflict can bring about change, improve situations and offer new solutions. Two
types of conflict that can occur within a company are functional and dysfunctional.
Functional conflict is healthy, constructive disagreement between groups or
individuals, while dysfunctional conflict is unhealthy disagreement that occurs
between groups or individuals.

Functional Conflict

Susie Steel is a vice president in a real estate development firm called Hearts
Development. She has spent enormous amounts of energy cultivating a relationship
with a local town regarding an available plot of land. Susie would like to purchase
the land to build townhomes for sale. She has developed an excellent relationship
with the town politicians and community members.

An issue has developed over the planned usage of the land, though. The town will
sell the land to Susie's company but feels that townhomes would be bad for the
overall community. They're concerned with the additional cost and burden of kids
that the townhomes would bring into the community. Susie understands the
community's concern and wants a win-win situation to occur. She feels that this
issue will be a functional conflict due to the fact that the disagreement will bring a
positive end result to both parties. Positive results of functional conflict include:

 Awareness of both sides of issues

  Improvement of working conditions due to accomplishing solutions together
 Solving issues together to improve overall morale
 Making innovations and improvements within an organization

In Susie's case, constructive criticism and discussion resulted in a compromise and

a solution between the parties. Susie understood the town's concern but needed to
find something to build that would bring revenue for the company. Through their
joint meetings, the end solution was for Hearts Development to build a retirement
community, which would only have citizens 55 and over living in the town. This
would eliminate the issue of having more young people come into town and burden
the school system.

Dysfunctional Conflict

Sometimes, conflict can be a very negative experience for companies. Susie's

colleague, John Dirt, is also a vice president of development at Hearts. He also has
a major conflict regarding a construction project. He is looking to build a nuclear
power plant in an East Coast town. The town is vehemently against having a power
plant, and the discussions have been heated in conflict. This is a win-lose
situation, or a dysfunctional conflict. Most dysfunctional conflicts are unhealthy
and stem from emotional or behavioral origins.

The town is very emotional over the fact that a possible nuclear power plant could
be built in their neighborhood. They are extremely concerned with the danger and
health issues. John Dirt has had to use threats, personal attacks and deception in
order to get his power plant plans passed by the town. Negative results of
dysfunctional conflict include:

 Individuals use threats, verbal abuse and deception, which destroy

relationships
 Both parties can end up losing in this type of conflict
 This type of conflict can lead to retaliation and further acts of negativity

STAGES OF CONFLICT

In 1967, Pondy developed a process model of conflict which is very useful

in understanding how conflict starts and what stages it goes through. Pondy
identifies five stages in what he calls a "conflict episode".
1. Latent conflict
2. Perceived conflict
 3. Felt conflict
4. Manifest conflict
5. Conflict aftermath

This model is portrayed in the following figure :

1. Latent Conflict : Latent conflict is the stage in which factors exist in the
situation which could become potential conflict inducing forces. Four basic types
of latent conflict are :

(i) Competition for scarce resources

(ii) Drive for autonomy

(iii) Divergence of goals

(iv) Role conflict.

2. Perceived Conflict : Conflicts may, sometimes, arise even if no conditions of

latent conflict exist. This is the stage when one party perceives the other to be
likely to thwart or frustrate his or her goals. The case in which conflict is perceived
when no latent conflict arises, is said to result from the parties misunderstanding
each other's true position. Such conflict can be resolved by improving
communication between the groups.

3. Felt Conflict : Felt conflict is the stage when the conflict is not only perceived
but actually felt and cognized. For example, A may be aware that he is in serious
argument with B over some policy. But this may not make A tense or anxious and
it may have no effect, whatsoever, on A's affection towards B. The personalization
of conflict is the mechanism which causes many people to be concerned with
dysfunctions of conflict. In other words, it makes them feel the conflict. There are
two reasons for the personalization of the conflict:

(i) the inconsistent demands on efficient organization and individual growth which
is caused within the individual. Anxieties may also result from crisis or from extra-
organizational pressures. Individual need to vent these anxieties in order to
maintain internal equilibrium.

(ii) Conflict becomes personalized when the whole personality of the individual is
involved in the relationship. Hostile feelings are most common in the intimate
relations that characterize various institutions and residential colleges.

4. Manifest Conflict : Manifest conflict is the stage when the two parties engage
in behaviours which evoke responses from each other. The most obvious of these
responses are open aggression, apathy, sabotage, withdrawal and perfect obedience
to rules. Except for prison riots, political revolutions and extreme labour unrest,
violence as a form of manifest conflict is rare. The motives towards violence may
remain but they tend to be expressed in less violent forms.

5. Conflict Aftermath : The aftermath of a conflict may have positive or negative

repercussions for the organization depending upon how the conflict is resolved. If
the conflict is genuinely resolved to the satisfaction of all participants, the basis for
a more co-operative relationship may be laid; or the participants in their drive for a
more ordered relationship may focus on latent conflicts not previously perceived
and dealt with. On the other hand, if the conflict is merely suppressed but not
resolved, the latent conditions of conflict may be aggravated and explode in a more
serious form until they are rectified. This conflict episode is called 'conflict
aftermath'.

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 :

Several styles or techniques have been suggested for managing conflict. Based on
styles' assertiveness (the extent to which one's goals met) and co-cooperativeness
(the extent to which one wants to see the other party's concerns met). Thomas has
classified conflict management styles into five style; avoiding, accommodating,
competing, compromising and collaborating.
CONFLICT MANAGEMENT STYLE

STRESS
DEFINITION
In a medical or biological context stress is a physical, mental, or emotional factor
that causes bodily or mental tension. Stresses can be external (from the
environment, psychological, or social situations) or internal (illness, or from a
medical procedure). Stress can initiate the "fight or flight" response, a complex
reaction of neurologic and endocrinologic systems.

Stress is the state which is seen in response to internal or external stressors. Every
system of the body responds to stress in varying ways. Stress enlists changes
affecting almost every system of the body, influencing how people feel and
behave.

STRESS: "Stress brings mental and physical disturbance in living beings. Stress
may emulate itself as either physical or mental."
Causes of Stress

Everyone has different stress triggers. Work stress tops the list, according to
surveys. Forty percent of U.S. workers admit to experiencing office stress, and
one-quarter say work is the biggest source of stress in their lives.

Causes of work stress include:

 Being unhappy in your job

 Having a heavy workload or too much responsibility
 Working long hours
 Having poor management, unclear expectations of your work, or no say in
the decision-making process
 Working under dangerous conditions
 Being insecure about your chance for advancement or risk of termination
 Having to give speeches in front of colleagues
 Facing discrimination or harassment at work, especially if your company
isn't supportive

Life stresses can also have a big impact. Examples of life stresses are:

 The death of a loved one

 Divorce
 Loss of a job
 Increase in financial obligations
 Getting married
 Moving to a new home
 Chronic illness or injury
 Emotional problems (depression, anxiety, anger, grief, guilt, low self-
esteem)
 Taking care of an elderly or sick family member
 Traumatic event, such as a natural disaster, theft, rape, or violence against
you or a loved one

Sometimes the stress comes from inside, rather than outside. You can stress
yourself out just by worrying about things. All of these factors can lead to stress:

 Fear and uncertainty. When you regularly hear about the threat of terrorist
attacks, global warming, and toxic chemicals on the news, it can cause you
to feel stressed, especially because you feel like you have no control over
those events. And even though disasters are typically very rare events, their
 vivid coverage in the media may make them seem as if they are more likely
to occur than they really are. Fears can also hit closer to home, such as being
worried that you won't finish a project at work or won't have enough money
to pay your bills this month.
 Attitudes and perceptions. How you view the world or a particular situation
can determine whether it causes stress. For example, if your television set is
stolen and you take the attitude, "It's OK, my insurance company will pay
for a new one," you'll be far less stressed than if you think, "My TV is gone
and I'll never get it back! What if the thieves come back to my house to steal
again?" Similarly, people who feel like they're doing a good job at work will
be less stressed out by a big upcoming project than those who worry that
they are incompetent.
 Unrealistic expectations. No one is perfect. If you expect to do everything
right all the time, you're destined to feel stressed when things don't go as
expected.
 Change. Any major life change can be stressful -- even a happy event like a
wedding or a job promotion. More unpleasant events, such as a divorce,
major financial setback, or death in the family can be significant sources of
stress.

Your stress level will differ based on your personality and how you respond to
situations. Some people let everything roll off their back. To them, work stresses
and life stresses are just minor bumps in the road. Others literally worry
themselves sick.
Symptoms of stress: Stress can manifest as various symptoms affecting one’s
body, mind, behavior, and/or emotions.

Negative or overwhelming work experiences can cause a person substantial

distress. Burnout, depression, and psychosomatic disorders are particularly
common outcomes of work-related stress. In general, individual distress manifests
in three basic forms: psychological disorders, medical illnesses, and behavioral
problems.

Psychological Disorders

Psychosomatic disorders are a type of psychological disorder. They are physical

problems with a psychological cause. For example, a person who is extremely
anxious about public speaking might feel extremely nauseated or may find
themselves unable to speak at all when faced with the prospect of presenting in
front of a group. Since stress of this type is often difficult to notice, managers
would benefit from carefully monitoring employee behavior for indications of
discomfort or stress.

Medical Illnesses

Physiological reactions to stress can have a long-term impact on physical health. In

fact, stress is one of the leading precursors to long-term health issues. Backaches,
stroke, heart disease, and peptic ulcers are just a few physical ailments that can
arise when a person is under too much stress.

Behavioral Problems

A person can also exhibit behavioral problems when under stress, such as
aggression, substance abuse, absenteeism, poor decision making, lack of creativity,
or even sabotage. A stressed worker may neglect their duties, impeding workflows
and processes so that the broader organization slows down and loses time and
money. Managers should keep an eye out for such behaviors as possible indicators
of workplace stress.

Organizational Effects of Stress

Stress in the workplace can be, so to speak, “contagious”—low job satisfaction is

often something employees will discuss with one another. If stress is not noted and
addressed by management early on, team dynamics can erode, hurting the social
and cultural synergies present in the organization. Ultimately, the aggressive
mentality will be difficult to remedy.

Managers are in a unique position when it comes to workplace stress. As they are
responsible for setting the pace, assigning tasks, and fostering the social customs
that govern the work group, management must be aware of the repercussions of
mismanaging and inducing stress. Managers should consistently discuss job
satisfaction and professional and personal health with each of their subordinates
one on one.

Reducing Workplace Stress

A combination of organizational change and stress management is a productive

approach to preventing stress at work.

MANAGEMENT OF CHANGE

CONCEPT

The study of organizational change is interdisciplinary in nature and draws from

the fields of psychology, sociology, political science, economics, and management.
You will not find a grand, unified theory of organizational change. Instead, you
will find distinct theories that have not really been integrated to date. In this lesson,
we'll focus on the Carnegie School of thought on organizational change.

Organizational change is both the process in which an organization changes its

structure, strategies, operational methods, technologies, or organizational culture to
affect change within the organization and the effects of these changes on the
organization. Organizational change can be continuous or occur for distinct periods
of time.

Change is a common thread that runs through all businesses regardless of size,
industry and age. Our world is changing fast and organizations must change
quickly, too. Organizations that handle change well thrive, whilst those that do not
may struggle to survive.
Lewin's Model of Change:

This model consists of three stages. They are

1. Unfreezing
2. Changing or Movement
3. Refreeze

Unfreezing:

Unfreezing is the change where they violate down active ways of doing things,
discarding the conventional methods and behaviours patterns and introducing a
new methods and behaviours. Education, communication, participating in decision
making etc.., is some of the techniques used for unfreezing.

This first stage of change involves preparing the organization to accept that change
is necessary, which involves break down the existing status quo before you can
build up a new way of operating.

Key to this is developing a compelling message showing why the existing way of
doing things cannot continue. This is easiest to frame when you can point to
declining sales figures, poor financial results, worrying customer satisfaction
surveys, or suchlike. These show that things have to change in a way that everyone
can understand.

To prepare the organization successfully, you need to start at its core – you need to
challenge the beliefs, values, attitudes, and behaviors that currently define it. Using
the analogy of a building, you must examine and be prepared to change the
existing foundations as they might not support add-on storeys. Unless this is done,
the whole building may risk collapse.

This first part of the change process is usually the most difficult and stressful.
When you start cutting down the "way things are done," you put everyone and
everything off balance. You may evoke strong reactions in people, and that's
exactly what needs to done.

By forcing the organization to re-examine its core, you effectively create a

(controlled) crisis, which in turn can build a strong motivation to seek out a new
equilibrium. Without this motivation, you won't get the buy-in and participation
necessary to effect any meaningful change.
Changing or Movement:

Change or movement is the change where they move towards the proposed change,
where they learn new methodologies. This is the change where problems arise and
they tackle it efficiently it is a time of trail and error.

After the uncertainty created in the unfreeze stage, the change stage is where
people begin to resolve their uncertainty and look for new ways to do things.
People start to believe and act in ways that support the new direction.

The transition from unfreeze to change does not happen overnight: People take
time to embrace the new direction and participate proactively in the change. A
related change model, the Change Curve, focuses on the specific issue of personal
transitions in a changing environment and is useful for understanding this aspect in
more detail.

In order to accept the change and contribute to making it successful, people need to
understand how it will benefit them. Not everyone will fall in line just because the
change is necessary and will benefit the company. This is a common assumption
and a pitfall that should be avoided.

Refreezing:

Refreezing is making the change permanent. It is the final stage where new
concepts become habitual, which includes developing new concepts and
establishing new interpersonal relationships.

When the changes are taking shape and people have embraced the new ways of
working, the organization is ready to refreeze. The outward signs of the refreeze
are a stable organization chart, consistent job descriptions, and so on. The refreeze
stage also needs to help people and the organization internalize or institutionalize
the changes. This means making sure that the changes are used all the time, and
that they are incorporated into everyday business. With a new sense of stability,
employees feel confident and comfortable with the new ways of working.

Forces for change

There are a number of factors both internal and external which affect
organizational functioning. Any change in these factors necessitates change in an
organization. The more important factors are as follows :
There are five forces of change which are increasing risk, complexity, and costs
resulting in the need to rethink and re-implement defense-in-depth. These five
forces are:

 Business needs – improve collaboration among staff and with customers,

partners, and suppliers; increase use of contractors, increase use of remote
and mobile workers, increase efficiency and reduce data center
administration and operations costs
 Technology – Web 2.0 applications, social networking; virtualization, cloud
computing, smartphones and tablets, converged video, voice, and data
networks
 Threats– have shifted to criminal financial gain: credit card and identity
theft, funds transfer fraud, trade secrets theft
 Compliance – New regulations including Red Flag Rules, Mass 201 CMR
17, ARRA/HITECH, HEOA
 Economy– Recession requires we do more with less.

Forces for Organizational Change

1. External Forces for Organizational Change

External environment affects the organisations both directly and indirectly. The
organisations do not have any control over the variables in such an environment.
Accordingly, the organisation cannot change the environment but must change
themselves to align with the environment. A few of these factors are:

1. Technology: Technology is the major external force which calls for

change. The adoption of new technology such as computers,
telecommunication systems and flexible manufacturing operations have
profound impact on the organisations that adopt them. The substitution of
computer control for direct supervision, is resulting in wider spans of control
for managers and flatter organisations. Sophisticated information technology
is also making organisations more responsive. Both the organisations and
their employees will have to become more adaptable. Many jobs will be
reshaped. Individuals who do routine, specialized and narrow jobs will be
replaced by workers who can perform multiple in decision
making. Managements will have to increase their investment in training and
education of the employees because employees skills are becoming obsolete
more quickly. Japanese firms have progressed rapidly because they are very
fast in adopting new technological innovations.
 2. Marketing Conditions: Marketing conditions are no more static. They are
in the process of rapid change as the needs, desires and expectations of
the customers change rapidly and frequently. Moreover, there is tough
competition in the market as the market is flooded with new products and
innovations everyday. New methods of advertising are used to influence the
customers. Today the concept of consumerism has gained considerable
importance and thus, the consumers are treated as the kings. Moreover, the
competition today has some significant new twists. Most markets will soon
be international because of decreasing transportation and communication
costs and the increasing export orientation of business. The global economy
will make sure that competitors are likely to come across the ocean as well
as from across town. Successful organisations will be those who can change
in response to the competition. Organisations that are not ready for these
new sources of competition in the next decade may not exist for long.
3. Social Changes: Social and cultural environment also suggest some
changes that the organisations have to adjust for. There are a lot of social
changes due to spread of education, knowledge and a lot of government
efforts. Social equality e.g. equal opportunities to women, equal pay for
equal work, has posed new challenges for the management. The
management has to follow certain social norms in shaping its employment,
marketing and other policies.
4. Political Forces: Political environment within and outside the country
have an important impact on business especially the transnational
corporations. The interference of the government in business has increased
tremendously in most of the countries. The corporate sector is regulated by a
lot of laws and regulations. The organisations do not have any control over
the political and legal forces, but they have to adapt to meet the pressure of
these forces. In our country, the economic policy has liberalized the
economy to a large extent. Many of the regulatory laws have been amended
to reduce the interference of the Government in business. An organisation is
also affected by the world politics. Some of the changes in the world politics
which have affected business all over the world are e.g. the reunification of
Germany, Iraq’s invasion of Kuwait, the break of Soviet Union etc.

2. Internal Forces for Organizational Change

Internal forces for organizational change are too many and it is very difficult to list
them comprehensively. However, major internal causes are explained as follows:
1. Nature of the Work Force: The nature of work force has changed over
a passage of time. Different work values have been expressed by
different generations. Workers who are in the age group of 50 plus value
loyalty to their employers. Workers in their mid thirties to mid forties are
loyal to themselves only. The youngest generation of workers is loyal to
their careers. The profile of the workforce is also changing fast. The new
generation of workers have better educational qualifications, they place
greater emphasis on human values and question authority of managers. Then
behavior has also become very complex and leading them towards
organisational goals is a challenge for the managers. The employee turnover
is also very high which again puts strain on the management. The work force
is changing, with a rapid increase in the percentage of women employees,
which in turn means, more dual career couples. Organisations have to
modify transfer and promotion policies as well as make child care and elder
care available, in order to respond to the needs of two career couple.
2. Change in Managerial Personnel: Change in managerial personnel
is another force which brings about change in organisation. Old managers
are replaced by new managers which is necessitated because of
promotion, retirement, transfer or dismissal. Each managers brings his own
ideas and way of working in the organisation. The informal relationships
change because of changes in managerial personnel. Sometimes, even
though there is no change in personnel, but their attitudes change. As a
result, the organisation has to change accordingly. Changes in the
organisation are more fast when top executives change. Change in top
executives will lead to important changes in the organisation in terms of
organisation design, allocation of work to individuals, delegation
of authority, installation of controls etc. All these changes will be
necessitated because every top executive will have his own style and he will
like to use his own ideas and philosophies.
3. Deficiencies in Existing Management Structure: Sometimes changes
are necessary because of some deficiencies in the existing organisational
structure, arrangement and processes. These deficiencies may be in the form
of unmanageable span of management, larger number of managerial levels,
lack of coordination among various departments, obstacles in
communication, multiplicity of committees, lack of uniformity in policy
decisions, lack of cooperation between line and staff and so on. However,
the need for change in such cases goes un-recognised until some major crisis
occurs.
4. To Avoid Developing Inertia: In many cases, organisational changes
take place just to avoid developing inertia or inflexibility. Conscious
managers take into account this view that organisation should be dynamic
because any single method is not the best tool of management every time.
Thus, changes are incorporated so that the personnel develop liking for
change and there is no unnecessary resistance when major changes in the
organisation are brought about.

There are 8 common reasons why people resist change:

(1) Loss of status or job security in the organization.

It is not our nature to make changes that we view as harmful to our current
situation. In an organizational setting, this means employees, peers, and
managers will resist administrative and technological changes that result in
their role being eliminated or reduced. From their perspective, your change
is harmful to their place in the organization!

Forcing a change on others has its place. Over time, however, when this is
the only approach that you use to make change, you’ll find that your change
results suffer. If you overuse this approach, you will harm your
effectiveness over the long term as others will find direct and indirect ways
to resist you. Without a thoughtful change strategy to address resistance to
change, you will trigger strong resistance and organizational turnover.

(2) Non-reinforcing reward systems.

There is a common business saying that managers get what they reward.
Organizational stakeholders will resist change when they do not see any
rewards.

When working with managers, I will ask them, Where is the reward to
employees for implementing your change?

Without a reward, there is no motivation for your team to support your

change over the long term. This often means that organizational reward
systems must be altered in some way to support the change that you want to
implement. The change does not have to always be major or costly. Intrinsic
rewards are very powerful motivators in the workplace that are non-
monetary.
 (3) Surprise and fear of the unknown.

The less your team members know about the change and its impact on them,
the more fearful they will become. Leading change also requires not
springing surprises on the organization! Your organization needs to be
prepared for the change.

In the absence of continuing two-way communication with you, grapevine

rumors fill the void and sabotage the change effort. In fact, ongoing
communication is one of your most critical tools for handling resistance to
change. But, it’s not just telling! The neglected part of two-way
communication — listening — is just as powerful.

(4) Peer pressure.

Whether we are introverted or extroverted, we are still social creatures.

Organizational stakeholders will resist change to protect the interests of a
group.

You might see this among some of your team members who feel compelled
to resist your change to protect their co-workers. If you’re a senior executive
or middle manager, your managers who report to you may will resist your
change effort to protect their work groups.

As the psychologist Abraham Maslow discussed, the need to belong to

a group is a powerful need in the workplace. If your change effort threatens
these workplace social bonds, some of your team members may resist your
change effort.

(5) Climate of mistrust.

Meaningful organizational change does not occur in a climate of mistrust. Trust,

involves faith in the intentions and behavior of others. Mutual mistrust will doom
an otherwise well-conceived change initiative to failure.

If you are trying to implement your change effort in an environment where most of
the people working with you mistrust each other, you’ll have limited success.
You’ll need to spend some time rebuilding trust if you want better results from
your change effort.

Trust is a fragile asset that is easily harmed.

(6) Organizational politics.

Some resist change as a political strategy to “prove” that the decision is wrong.
They may also resist to show that the person leading the change is not up to the
task. Others may resist because they will lose some power in the organizational. In
these instances, these individuals are committed to seeing the change effort fail.

Sometimes when I work with managers they become frustrated with the political
resistance that they encounter from others. Political obstacles are frustrating when
you are trying to implement needed change. My advice to you is to acknowledge
what you are feeling and then take positive steps to counter the organizational
resistance you are facing.

Politics in organizations are a fact of life!

(7) Fear of failure.

Sweeping changes on the job can cause your team members to doubt their
capabilities to perform their duties. What is known is comfortable! Your team
members may be resisting these changes because they are worried that they cannot
adapt to new work requirements.

Fear is a powerful motivator that can harden people’s intent to resist your efforts to
implement change. If you want your change effort to be successful, you’ll need to
help your team members move beyond these fears.

(8) Lack of tact or poor timing.

Sometimes it is not what a leader does, but it is how s/he does it that creates
resistance to change! Undue resistance can occur because changes are introduced
in an insensitive manner or at an awkward time.

In other words, people may agree with the change that you want to implement but
they may not agree with how you are going about making the change.

For any significant organizational change effort to be effective, you’ll need a

thoughtful strategy and a thoughtful implementation approach to address these
barriers.
MANAGING PLANNED CHANGE

Steps of planned change management

1. Recognize the need for change. Recognition of the need for change
may occur at the top management level or in peripheral parts of the
organization. The change may be due to either internal or external
forces.
2. Develop the goals of the change. Remember that before any action is
taken, it is necessary to determine why the change is necessary. Both
problems and opportunities must be evaluated. Then it is important to
define the needed changes in terms of products, technology, structure,
and culture.
3. Select a change agent. The change agent is the person who takes
leadership responsibility to implement planned change. The change
agent must be alert to things that need revamping, open to good ideas,
and supportive of the implementation of those ideas into actual
practice.
4. Diagnose the current climate. In this step, the change agent sets about
gathering data about the climate of the organization in order to help
employees prepare for change. Preparing people for change requires
direct and forceful feedback about the negatives of the present
situation, as compared to the desired future state, and sensitizing people
to the forces of change that exist in their environment.
5. Select an implementation method. This step requires a decision on
the best way to bring about the change. Managers can make themselves
more sensitive to pressures for change by using networks of people and
organizations with different perspectives and views, visiting other
organizations exposed to new ideas, and using external standards of
performance, such as competitor's progress.
6. Develop a plan. This step involves actually putting together the plan,
or the “what” information. This phase also determines the when,
where, and how of the plan. The plan is like a road map. It notes
specific events and activities that must be timed and integrated to
produce the change. It also delegates responsibility for each of the
goals and objectives.
7. Implement the plan. After all the questions have been answered, the
plan is put into operation. Once a change has begun, initial excitement
can dissipate in the face of everyday problems. Managers can maintain
the momentum for change by providing resources, developing new
 competencies and skills, reinforcing new behaviors, and building a
support system for those initiating the change.
8. Follow the plan and evaluate it. During this step, managers must
compare the actual results to the goals established in Step 4. It is
important to determine whether the goals were met; a complete
follow‐up and evaluation of the results aids this determination. Change
should produce positive results and not be undertaken for its own sake.

Keep in mind that a comprehensive model of planned change includes a set of

activities that managers must engage in to manage the change process effectively.
They must recognize the need for change, motivate change, create a vision,
develop political support, manage the transition, and sustain momentum during the
change.