Organizational Behavior - Introduction

Organizational behavior is a combination of responses to external and internal stimuli by a person as

an individual or as a part of a group. This brief introductory tutorial explains the methodologies
applied in the rapidly growing area of organizational behavior in an organization.

Organizational Behavior (OB) can be defined as the understanding, prediction and management of
human behavior both individually or in a group that occur within an organization.

Internal and external perspectives are the two theories of how organizational behavior can be viewed
from an organization’s point of view.

1.0. Importance of Organisational Behaviour

While working in an organization, it is very important to understand others behavior as well as make
others understand ours. In order to maintain a healthy working environment, we need to adapt to the
environment and understand the goals we need to achieve. This can be done easily if we understand
the importance of OB.

Following points bring out the importance of OB −

 It helps in explaining the interpersonal relationships employees share with each other as well
as with their higher and lower subordinates.
 The prediction of individual behavior can be explained.
 It balances the cordial relationship in an enterprise by maintaining effective communication.
 It assists in marketing.
 It helps managers to encourage their sub-ordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behavior & their application to achieve organizational goals.
 It helps in making the organization more effective.

Thus studying organizational behavior helps in recognizing the patterns of human behavior and in turn
throw light on how these patterns profoundly influence the performance of an organization.gfy

1.2. Organizational Behavior – Determinants

Three major factors affect OB. The working environment being the base for all three factors, they are
also known as the determinants of OB. The three determinants are −

 People
 Structure
 Technology

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(a). People

An organization consists of people with different traits, personality, skills, qualities, interests,
background, beliefs, values and intelligence. In order to maintain a healthy environment, all the
employees should be treated equally and be judged according to their work and other aspects that
affects the firm.

Example − A company offers campus placement to trainees from different towns like Kitwe, Ndola,
Lusaka, Kasama and many more. However, during and after training, all trainees are examined only
because of their performance in the tasks assigned.

(b). Organizational Structure

Structure is the layout design of an organization. It is the construction and arrangement of

relationships, strategies according to the organizational goal.

Example − Organizational structure defines the relation of a manager with employees and co-workers.

(c). Technology

Technology can be defined as the implementation of scientific knowledge for practical usage. It also
provides the resources required by the people that affect their work and task performance in the
right direction.

Example − Introduction of System Analysis Development Programme (SAP), big data and other
software in the market determines individual and organizational performance.

(d). Environment

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All companies function within a given internal and external environment.
Internal environment: can be defined as the conditions, factors, and elements within an enterprise
that influences the activities, choices made by the firm, and especially the behavior of the employees.
External environment: can be defined as outside factors that affect the company's ability to operate.
Some of them can be manipulated by the company’s marketing, while others require the company to
make adjustments.
Some examples of internal environment include employee morale, culture changes, financial changes
or issues, and some examples of external environment include political factors, changes to the
economy and the company itself.

1.3 Organizational Behavior – Elements

Organizational Behaviour is a very important part of Behaviour Science. If you want to understand
organizational behavior properly, you have to learn different elements. The fundamental elements of
organizational behavior are discussed below:

1. People/ Employee:
The employee is one of the very important parts of an organization. There is no any alternative in an
organization without employee/people. You know, there may be many parties in an organization. Some
party may be formal and some may be informal. These parties are not stable rather than mobile.
Actually, today's Human Organization is tomorrow's future. Organization and employee are
connected to each other and it will remain forever.

2. Structure:
This is the second steps of organizational behavior. Actually, Structure means the formal relationship
with on the job employee of an organization. There is created different types of position for doing
work nicely in the organization.

These position or designation are Manager, Accountant, Administration and general staff. These

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officer and staff have to connect structurally so that they can work efficiently and can play an
important role in organizational development.

3. Technology:
Technology is a very important primary aspect of organizational structure in the modern age.
Technology supplies essential resource and equipment to the employee for doing their work
efficiently.
Thus technology effect on their activity. Employees are not able to finish their work with the bare
hand. They build the buildings, prepare the design of the devices, determine the working process, and
assemble the resources with the help of technology. Technology effects notably on the correlation of
workers at the workplace.

4. Social System:
Everything around us is society and everyone in the social lives together. The social system
determines the organizational work environment and from which the organization can operate. As
people cannot live alone just like organization cannot run alone its job. The organization has to do its
activity with the help of the employee.

5. Environment:
There is no any organization where they can survive alone. Every organization has to work on the
internal and external environment. Management has to come near to all the staff to maintain a good
working environment. You know, a good working environment is helpful for good production.

Conclusion:
Finally, it can be said that Organizational Behavior and Organizational Structure are deeply affected
by the above fundamental elements. Actually, the main objectives of Organizational Behavior are to
develop the good working environment for the people, nation, society and the country.

1.4. Organizational Behavior - Concepts

The concept of OB is based on two key elements namely −

 Nature of people
 Nature of the organization

Nature of People

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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 −

 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

Every individual is different from the other in respect of intelligence, habit, nature, attitude,
etc. This individual difference is the outcome of his psychological aspects. Organisational
behaviour is a part of psychology.
An individual with psychological differences will show the same in his behavioural pattern in an
organization. Management (Manager) has to behave differently with different persons. This
knowledge is provided to management by the study of OB.

 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 as 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.

An individual is a whole person with physical and psychological aspects. Therefore, we cannot
deal with a person by part. For example, an employee working in an organization has many
personal problems worrying him. It is not possible for him to perform the work by keeping
away these problems at home and work efficiently with his physical capability alone.
No one can separate the physical and psychological aspects and deal with the individual.
Hence, the knowledge of OB and management has to be integrated and the problem of an
individual probed to find out remedial action to solve it considering the individual as a whole
person. Solving the problem will become quite easy, if the relation between OB and
management is well understood by the manager.

 Motivated behavior/caused behaviour − It is the behavior implanted or caused by some

motivation from some person, group or even a situation.
 Caused Behaviour-This is a reaction in an individual due to some needs and wants, which he has to
satisfy. These may be financial or non-financial. This caused behaviour has to be regulated by proper
motivation. Hence the management and OB have to work together to understand the exact nature of

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 the need of an individual to be satisfied and the desired incentive to be provided to the individual so as
to help satisfy his needs.

In an organization, we can see two different types of motivated employees −

o 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.”
o 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 − Employees want to be valued and appreciated for their skills and abilities
followed by opportunities which help them develop themselves.

Nature of an 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 −
o 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.
o 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.


1.5. Organizational Behavior – Scope

In a very broad sense, the scope of OB is the extent to which it can govern or influence the
operations of an organization. The scope of OB integrates 3 concepts respectively −

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Individual Behavior

It is the study of individual’s personality, learning, attitudes, motivation, and job satisfaction. In this
study, we interact with others in order to study about them and make our perception about them.

Example − The personal interview round is conducted to interact with candidates to check their skills,
apart from those mentioned in the resume.

Inter-individual Behavior

It is the study conducted through communication between the employees among themselves as well
as their subordinates, understanding people’s leadership qualities, group dynamics, group conflicts,
power and politics.

Example − A meeting to decide list of new board members.

Group Behavior

Group behavior studies the formation of organization, structure of organization and effectiveness of
organization. The group efforts made towards the achievement of organization’s goal is group
behavior. In short, it is the way how a group behaves.

1.6. Functions of a Manager

Functions of a manager are the various roles played by the manager in an organization. A manager is
accountable for all the happenings in the firm and is answerable to the management. The seven major
roles played by the manager are −

 Planning
 Organizing
 Staffing
 Directing/leading
 Coordinating
 Reporting
 Budgeting
 Controlling

Roles of a Manager

Now, let us see what exactly are these roles and their importance. Starting with the first role.

 Planning − The basic step required for any project, big or small, is the planning stage. The
manager needs to plan the schedule and give the blueprint of how the task is to be done with
all the necessary details, and also the manager should have a backup plan that if this doesn’t
work then what next. Example − There is a new project, how to start, human resource
required, resources required, etc., everything should be planned.

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  Organizing − Next comes the organizing part, where the manager needs to synchronize and
have to make sure everything is going according to the plan. Everything should work as per
the plan, and if not then the manager needs to look into the issue and make it work as
planned. Example − A software tester is required, so organize the venue, date and time to
interview those eligible for the post.
 Staffing − In simple words, staffing means grouping of people into different teams and
allotting different tasks to them. If the team members have some disputes then the team
member needs to report to the team leader who will forward it to the manager and the issue
will be taken care of. Example − Assembling a new team for a new project.
 Directing/Leading − It is a manager’s responsibility to guide the employees in all situations in
order to avoid conflicts and delay in the task. Manager has to lead the employees so that
they can get a clear idea about what is to be done and how to do it. Example − a team needs
a team leader to look after each task that is accomplished, in-process, or aborted.
 Coordinating − It means bringing all the employees together by forming an efficient
relationship and making them feel comfortable to share their views and issues freely. Example
− Coordinating the schedule for a project.
 Reporting − The manager has to keep updated information about all the ongoing tasks, and it
is the sole responsibility of the manager to report the updated status to the higher
authorities; while all the employees are bound to report to the manager. Example − Keeping
the respective directors informed about the progress on their respective projects.
 Budgeting − A task has to be completed within the given time frame as well as it should be
cost efficient. The manager needs to be double sure that all the amount invested in the
project doesn’t exceed the budget given and in case of imbalance, the budgeting manager has
to report to the management. Example − If budget allows to place three employees then five
employees cannot be assigned for the task.
 Controlling − Last but of course not the least role played by the manager is having
everything under control. Whether it is the budget, or resource allocation, everything should
be in order. Example − All members of a team cannot be granted leave on the same day, as it
affects work delivery.

1.7. Various Challenges of a Manager

We have seen the different roles a manager as to play in order to maintain the workflow balance in an
organization. With all these responsibilities, there are some tough challenges a manager has to deal
with while trying to balance everything. Following are some challenges a manager has to deal with −

 Managing workforce diversity − Manager shouldn’t create or encourage discrimination among

employees. Employees from different background, culture, and ethnicity should be treated as
equal and rewards should be given only on the basis of work.
 Improving quality and productivity − It is the sole responsibility of the manager to increase
the productivity without hampering the quality. It can be done in two ways −
o Totally quality management − That is constant focus on customer satisfaction by
improving organizational process.
o Process of engineering − Focusing on the manufacturing of the product, so that the
quality is not compromised.
 Responding to labor shortage − If there is a labor shortage then the manager should quickly

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 respond to solve this problem by arranging for the workforce required so that the product
delivery is not delayed.
 Eradication of labor shortage − The manager needs to take quick action, if there is a labor
shortage and should assure with backup plans so that there is no labor shortage in future.
 Improving customer service − Manager faces the challenge to constantly improve customer
service to survive in an ever-competitive environment.
 Improving ethical behavior − Managers should make sure that the employees behave properly
and maintain the decorum of the company. These are few major challenges a manager faces
while trying to complete a project. To maintain work-life balance and for the betterment of
the organization, the manager should try level best to resolve these challenges.

1.8. Organizational Behavior - Models

Organizational behavior reflects the behavior of the people and management all together, it is
considered as field study not just a discipline. A discipline is an accepted science that is based upon
theoretical foundation, whereas OB is an inter-disciplinary approach where knowledge from different
disciplines like psychology, sociology, anthropology, etc. are included. It is used to solve
organizational problems, especially those related to human beings.

There are four different types of models in OB. We will throw some light on each of these four models.

Autocratic Model

The root level of this model is power with a managerial orientation of authority. The employees in this
model are oriented towards obedience and discipline. They are dependent on their boss. The employee
requirement that is met is subsistence. The performance result is less.

The major drawbacks of this model are people are easily frustrated, insecurity, dependency on the
superiors, minimum performance because of minimum wage.

Custodial Model

The root level of this model is economic resources with a managerial orientation of money. The
employees in this model are oriented towards security and benefits provided to them. They are
dependent on the organization. The employee requirement that is met is security.

This model is adapted by firms having high resources as the name suggest. It is dependent on
economic resources. This approach directs to depend on firm rather than on manager or boss. They
give passive cooperation as they are satisfied but not strongly encouraged.

Supportive Model

The root level of this model is leadership with a managerial orientation of support. The employees in
this model are oriented towards their job performance and participation. The employee requirement
that is met is status and recognition. The performance result is awakened drives.

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This model is dependent on leadership strive. It gives a climate to help employees grow and
accomplish the job in the interest of the organization. Management job is to assist the employee’s job
performance. Employees feel a sense of participation.

Collegial Model

The root level of this model is partnership with a managerial orientation of teamwork. The employees
in this model are oriented towards responsible behavior and self-discipline. The employee requirement
that is met is self-actualization. The performance result is moderate zeal.

This is an extension of supportive model. The team work approach is adapted for this model. Self-
discipline is maintained. Workers feel an obligation to uphold quality standard for the better image of
the company. A sense of “accept” and “respect” is seen.

1.9. Organizational Behavior - Learning

Learning can be defined as the permanent change in behavior due to direct and indirect experience. It
means change in behavior, attitude due to education and training, practice and experience. It is
completed by acquisition of knowledge and skills, which are relatively permanent.

Nature of Learning

Nature of learning means the characteristic features of learning. Learning involves change; it may or
may not guarantee improvement. It should be permanent in nature, that is learning is for lifelong.

The change in behavior is the result of experience, practice and training. Learning is reflected through
behavior.

Factors Affecting Learning

Learning is based upon some key factors that decide what changes will be caused by this experience.
The key elements or the major factors that affect learning are motivation, practice, environment, and
mental group.

Coming back to these factors let us have a look on these factors −

 Motivation − The encouragement, the support one gets to complete a task, to achieve a goal
is known as motivation. It is a very important aspect of learning as it acts gives us a positive
energy to complete a task. Example − The coach motivated the players to win the match.
 Practice − We all know that ”Practice makes us perfect”. In order to be a perfectionist or at
least complete the task, it is very important to practice what we have learnt. Example − We
can be a programmer only when we execute the codes we have written.

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  Environment − We learn from our surroundings, we learn from the people around us. They are
of two types of environment – internal and external. Example − A child when at home learns
from the family which is an internal environment, but when sent to school it is an external
environment.
 Mental group − It describes our thinking by the group of people we chose to hang out with. In
simple words, we make a group of those people with whom we connect. It can be for a social
cause where people with the same mentality work in the same direction. Example − A group
of readers, travelers, etc.

These are the main factors that influence what a person learns, these are the root level for our
behavior and everything we do is connected to what we learn.

How Learning Occurs?

Learning can be understood clearly with the help of some theories that will explain our behavior. Some
of the remarkable theories are −

 Classical Conditioning Theory

 Operant Conditioning Theory
 Social Learning Theory
 Cognitive Learning Theory

Classical Conditioning Theory

The classical conditioning occurs when a conditioned stimulus is coupled with an unconditioned
stimulus. Usually, the conditioned stimulus (CS) is an impartial stimulus like the sound of a tuning fork,
the unconditioned stimulus (US) is biologically effective like the taste of food and the unconditioned
response (UR) to the unconditioned stimulus is an unlearned reflex response like salivation or sweating.

After this coupling process is repeated (for example, some learning may already occur after a single
coupling), an individual shows a conditioned response (CR) to the conditioned stimulus, when the
conditioned stimulus is presented alone. The conditioned response is mostly similar to the
unconditioned response, but unlike the unconditioned response, it must be acquired through
experience and is nearly impermanent.

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Operant Conditioning Theory

Operant conditioning theory is also known as instrumental conditioning. This theory is a learning
process in which behavior is sensitive to, or controlled by its outcomes.

Let’s take an example of a child. A child may learn to open a box to get the candy inside, or learn to
avoid touching a hot stove. In comparison, the classical conditioning develops a relationship between
a stimulus and a behavior. The example can be further elaborated as the child may learn to salivate at
the sight of candy, or to tremble at the sight of an angry parent.

In the 20th century, the study of animal learning was commanded by the analysis of these two sorts
of learning, and they are still at the core of behavior analysis.

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Social Learning Theory

The key assumptions of social learning theory are as follows −

 Learning is not exactly behavioral, instead it is a cognitive process that takes place in a social
context.
 Learning can occur by observing a behavior and by observing the outcomes of the behavior
(known as vicarious reinforcement).
 Learning includes observation, extraction of information from those observations, and making
decisions regarding the performance of the behavior (known as observational learning or
modeling). Thus, learning can occur beyond an observable change in behavior.
 Reinforcement plays an important role in learning but is not completely responsible for
learning.
 The learner is not a passive receiver of information. Understanding, environment, and behavior
all mutually influence each other.

Cognitive Learning Theory

Cognition defines a person’s ideas, thoughts, knowledge, interpretation, understanding about himself
and environment.

This theory considers learning as the outcome of deliberate thinking on a problem or situation based
upon known facts and responding in an objective and more oriented manner. It perceives that a person
learns the meaning of various objects and events and also learns the response depending upon the
meaning assigned to the stimuli.

This theory debates that the learner forms a cognitive structure in memory which stores organized
information about the various events that occurs.
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Learning & Organizational Behavior

An individual’s behavior in an organization is directly or indirectly affected by learning.

Example − Employee skill, manager’s attitude are all learned.

Behavior can be improved by following the listed tips −

 Reducing absenteeism by rewarding employees for their fair attendance.

 Improving employee discipline by dealing with employee’s undesirable behavior, drinking at
workplace, stealing, coming late, etc. by taking appropriate actions like oral reprimands,
written warnings and suspension.
 Developing training programs more often so as to grab the trainees’ attention, provide
required motivational properties etc.

1.10. Organizational Behavior - Personality

The word personality is derived from a Greek word “persona” which means “to speak through.”
Personality is the combination of characteristics or qualities that forms a person’s unique identity. It
signifies the role which a person plays in public. Every individual has a unique, personality

and major determinant of his behavior that defines his/her personality.

Personality trait is basically influenced by two major features −

 Inherited characteristics
 Learned characteristics

Inherited Characteristics

The features an individual acquires from their parents or forefathers, in other words the gifted
features an individual possesses by birth is considered as inherited characteristics. It consists of the
following features −

 Color of a person’s eye

 Religion/Race of a person
 Shape of the nose
 Shape of earlobes

Learned Characteristics

Nobody learns everything by birth. First, our school is our home, then our society, followed by
educational institutes. The characteristics an individual acquires by observing, practicing, and learning
from others and the surroundings is known as learned characteristics.

Learned characteristics includes the following features −

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  Perception − Result of different senses like feeling, hearing etc.
 Values − Influences perception of a situation, decision making process.
 Personality − Patterns of thinking, feeling, understanding and behaving.
 Attitude − Positive or negative attitude like expressing one’s thought.

Traits of Personality

Personality traits are the enduring features that define an individual’s behavior. A personality trait is a
unique feature in an individual. Psychologists resolved that there are five major personality traits and
every individual can be categorized into at least one of them. These five personality traits are −

 Extrovert
 Neurotic
 Open
 Agreeable
 Conscientious

Major Personality Attributes

Following are the five major personality attributes that influence OB −

Locus of Control

Locus of control is the center of control of an individual’s code of conduct. People can be grouped into
two categories i.e., internals and externals respectively.

People who consider themselves as the masters of their own fates are known as internals, while,
those who affirm that their lives are controlled by outside forces known as externals.

Before making any decision, internals actively search for information, they are achievement driven,
and want to command their environment. Thus, internals do well on jobs that craves complex
information processing, taking initiative and independent action.

Externals, on the other hand, are more compliant, more willing to follow instructions, so, they do well
in structured, routine jobs.

Machiavellianism

Machiavellianism is being practical, emotionally distant, and believing that ends justify means.

Machiavellians are always wanting to win and are great persuaders. Here are the significant features

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of a high-mach individuals −

 High-Machs prefer precise interactions rather than beating about the bush.
 High-Machs tend to improvise; they do not necessarily abide by rules and regulations all the
time.
 High-Machs get distracted by emotional details that are irrelevant to the outcome of a
project.

Self-esteem

It is the extent up to which people either like or dislike themselves. Self-Esteem is directly related to
the expectations of success and on-the-job satisfaction.

Individuals with high self-esteem think that they have what it takes to succeed. So, they take more
challenges while selecting a job.

On the other hand, individuals with low self-esteem are more susceptible to external distractions. So,
they are more likely to seek the approval of others and to adapt the beliefs and behaviors of those
they respect.

Self-monitoring

Self-monitoring is the capability of regulating one’s behavior according to social situations. Individuals
with high self-monitoring skill easily adjust their behavior according to external, situational factors.
Their impulsive talents allow them to present public personae which are completely different from
their private personalities.

However, people with low self-monitoring skills cannot cover themselves. Regardless of any situation,
they are always themselves. They have an attitude of, “what you see is what you get.”

Risk taking

Generally, managers are reluctant on taking risks. However, individual risk-taking inclination affects
the bulk of information required by the managers and how long it takes them to make decisions.

Thus, it is very important to recognize these differences and align risk-taking propensity with precise
job demands that can make sense.

Theories of Personality

A theory is a simple model of reality that helps us understand, explain, predict and deal with reality.

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We have some theories that explain an individual’s personality.

Sigmund Freud’s Psychoanalytic Theory

This theory is based on the belief that man is encouraged more by unforeseen forces than the
conscious and logical thought. Freud believed that most of the things in life are not present at the
conscious level but they are present at an unconscious level.

The features of Freud’s theory include three attributes − Id, Ego, and Superego.

 Id − It defines the innate component of personality. It is the impulsive and unconscious part of
mind that seeks immediate satisfaction. Example − A hungry baby cries till he/she is fed.
 Ego − It is derived from Id and assists in dealing with the external world. It also helps in
translating the inner needs into expressions. It deals with practical and rational thinking
process. Example − We have a fight with our friend and expect the friend to talk first, even
though both of us want to talk.
 Superego − It is different from ego and is partially unconscious. It includes the traditional
values of society as interpreted by our parents. It also helps in the integral vision of
punishment. Example − Ram came late today so he is grounded for a week.

Erikson’s Theory

This theory states that personality is groomed throughout lifetime. He presents eight distinct stages
each with two possible outcomes. Successful completion of each stage leads to a healthy personality.
These stages are −

 Infancy − It is the period between 0-1 years of age. In this stage, children learn the ability to
trust others depending on their caregivers. Unsuccessful completion in this stage results in
anxiety and insecurity. Example − Children of this age are more comfortable with those faces
they see more often and not with strangers.
 Early Childhood − It is the period between 1-3 years of age. In this stage, children learn to be
independent. If given support, they become more confident else they become dependent over
others. Example − Children in this age are taught how to walk, how to talk etc.
 Play Age − It is the period between 3-6 years of age. In this stage, children assert themselves
frequently. The failure leads to development of a sense of guilt among them. Example −
Children in this age group, need to be taught how to behave and should be taught to be
focused.
 School Age − It is the period between 6 years of age till puberty. In this stage, children
become more innovative. They feel confident and want to achieve their goals. If not
encouraged they may feel inferior. Example − Teenagers should be protected and parents
need to understand them and should handle them patiently.
 Adolescence − This stage is a transformation from childhood to adulthood. Here children find
their own identity and should be guided and supported in order to help them choose the right
direction. Example − Decision such as which stream to choose science or commerce etc.
happens during this stage.
 Young Childhood − This stage is also known as young adulthood. Here, they begin to open up

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 and become more intimate with others. Example − Making close friends.
 Adulthood − In this stage, they focus on establishing career and settling down with
relationships that are important. Example − Applying for jobs.
 Mature Adulthood − In this stage, a person is old and thus in this stage the productivity
slows down. Example − Taking care of the family.

Sheldon’s Physiognomy Theory

This theory was proposed by William Sheldon. He presents personalities by classifying individuals into
convenient categories based on their body shapes. They are −

 Endomorphs
 Mesomorphs
 Ectomorphs

Endomorphs
In this category, the body is soft and spherical. People with this kind of personality love comfort, eat
a lot, like to be around people and desire affection. Some common endomorph features are large
amount of fat accumulation, insatiable appetite, larger frame etc.

Mesomorphs
In this category, the body is hard and rectangular physique. People with this kind of personality like
to take risk, are courageous and have power. Some common mesomorph features are wide shoulders,
small waist, low body fat.

Ectomorphs
In this category, the body is fragile, flat chest and delicate body. People with this kind of personality
are anxious, ambitious and dedicated. Some common ectomorph features are narrow frame, low body
fat, etc.

1.11. Perception and communication

Perception is an intellectual process of transforming sensory stimuli to meaningful information. It is

the process of interpreting something that we see or hear in our mind and use it later to judge and
give a verdict on a situation, person, group etc.

It can be divided into six types −

 Of sound − The ability to receive sound by identifying vibrations.

 Of speech − The competence of interpreting and understanding the sounds of language heard.
 Touch − Identifying objects through patterns of its surface by touching it.
 Taste − The ability to receive flavor of substances by tasting it through sensory organs
known as taste buds.
 Other senses − They approve perception through body, like balance, acceleration, pain, time,
sensation felt in throat and lungs etc.

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  Of the social world − It permits people to understand other individuals and groups of their
social world. Example − Priya goes to a restaurant and likes their customer service, so she will
perceive that it is a good place to hang out and will recommend it to her friends, who may or
may not like it. Priya’s perception about the restaurant is good.

Perceptual Process

Perceptual process are the different stages of perception we go through. The different stages are −

 Receiving
 Selecting
 Organizing
 Interpreting

Receiving
Receiving is the first and most important stage in the process of perception. It is the initial stage in
which a person collects all information and receives the information through the sense organs.

Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data randomly but
selectively. A person selects some information out of all in accordance with his interest or needs. The
selection of data is dominated by various external and internal factors.

 External factors − The factors that influence the perception of an individual externally are
intensity, size, contrast, movement, repetition, familiarity, and novelty.
 Internal factors − The factors that influence the perception of an individual internally are
psychological requirements, learning, background, experience, self-acceptance, and interest.

Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense of the data
received, it is important to organize them.

We can organize the data by −

 Grouping them on the basis of their similarity, proximity, closure, continuity.

 Establishing a figure ground is the basic process in perception. Here by figure we mean what
is kept as main focus and by ground we mean background stimuli, which are not given
attention.
 Perceptual constancy that is the tendency to stabilize perception so that contextual changes
don’t affect them.

Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular object
depending upon the need or interest. Interpretation means that the information we have sensed and
organized, is finally given a meaning by turning it into something that can be categorized. It includes

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stereotyping, halo effect etc.

Importance of Perception in OB
We need to understand what the role of perception in an organization is. It is very important in
establishing different role of perceptions like −
 Understanding the tasks to be performed.
 Understanding associated importance of tasks allotted.
 Understanding preferred behavior to complete respective tasks.
 Clarifying role perceptions.

For example, every member in a group has to be clear regarding the role allotted to them. Programmer
writes the code, tester checks it, etc.

Organizational Behavior - Motivation

Motivation Theories: Top 8 Theories of Motivation – Explained!

Some of the most important theories of motivation are as follows:

1. Maslow’s Need Hierarchy Theory

2. Herzberg’s Motivation Hygiene Theory
3. McClelland’s Need Theory
4. McGregor’s Participation Theory
5. Urwick’s Theory Z
6. Argyris’s Theory
7. Vroom’s Expectancy Theory
8. Porter and Lawler’s Expectancy Theory.

From the very beginning, when the human organisations were established, various thinkers have tried
to find out the answer to what motivates people to work. Different approaches applied by them have
resulted in a number of theories concerning motivation.

These are discussed in brief in that order.

1. Maslow’s Need Hierarchy Theory:

It is probably safe to say that the most well-known theory of motivation is Maslow’s need hierarchy
theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical experience, he
classified all human needs into a hierarchical manner from the lower to the higher order.

In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man.
Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified
five levels in his need hierarchy as shown in figure 17.2.

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 postulate

These are now discussed one by one:

1. Physiological Needs:

These needs are basic to human life and, hence, include food, clothing, shelter, air, water and
necessities of life. These needs relate to the survival and maintenance of human life. They exert
tremendous influence on human behaviour. These needs are to be met first at least partly before
higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.

2. Safety Needs:

After satisfying the physiological needs, the next needs felt are called safety and security needs.
These needs find expression in such desires as economic security and protection from physical
dangers. Meeting these needs requires more money and, hence, the individual is prompted to work
more. Like physiological needs, these become inactive once they are satisfied.

3. Social Needs:

Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness,
etc. It is this socialising and belongingness why individuals prefer to work in groups and especially
older people go to work.

4. Esteem Needs:

These needs refer to self-esteem and self-respect. They include such needs which indicate self-
confidence, achievement, competence, knowledge and independence. The fulfillment of esteem needs
leads to self-confidence, strength and capability of being useful in the organisation. However, inability
to fulfill these needs results in feeling like inferiority, weakness and helplessness.

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5. Self-Actualisation Needs:

This level represents the culmination of all the lower, intermediate, and higher needs of human beings.
In other words, the final step under the need hierarchy model is the need for self-actualization. This
refers to fulfillment.

The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one
is potentially good at. In effect, self- actualization is the person’s motivation to transform perception
of self into reality.

According to Maslow, the human needs follow a definite sequence of domination. The second need
does not arise until the first is reasonably satisfied, and the third need does not emerge until the
first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is
that human needs are unlimited. However, Maslow’s need hierarchy-theory is not without its
detractors.

The main criticisms of the theory include the following:

1. The needs may or may not follow a definite hierarchical order. So to say, there may be overlapping
in need hierarchy. For example, even if safety need is not satisfied, the social need may emerge.

2. The need priority model may not apply at all times in all places.

3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of behaviour.
Hence, Maslow’s preposition that one need is satisfied at one time is also of doubtful validity.

4. In case of some people, the level of motivation may be permanently lower. For example, a person
suffering from chronic unemployment may remain satisfied for the rest of his life if only he/she can
get enough food.

Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly among
practicing managers. This can be attributed to the theory’s intuitive logic and easy to understand.
One researcher came to the conclusion that theories that are intuitively strong die hard’.

12. Herzberg’s Motivation Hygiene Theory:

The psychologist Frederick Herzberg extended the work of Maslow and propsed a new motivation
theory popularly known as Herzberg’s Motivation Hygiene (Two-Factor) Theory. Herzberg conducted a
widely reported motivational study on 200 accountants and engineers employed by firms in and
around Western Pennsylvania.

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

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(2) When did you feel exceptionally bad about your job? He used the critical incident method of
obtaining data.

The responses when analysed were found quite interesting and fairly consistent. The replies
respondents gave when they felt good about their jobs were significantly different from the replies
given when they felt bad. Reported good feelings were generally associated with job satisfaction,
whereas bad feeling with job dissatisfaction. Herzberg labelled the job satisfiers motivators, and he
called job dissatisfies hygiene or maintenance factors. Taken together, the motivators and hygiene
factors have become known as Herzberg’s two-factor theory of motivation

Herzberg’s motivational and hygiene factors have been shown in the Table 17.1

According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying reason, he
says, is that removal of dissatisfying characteristics from a job does not necessarily make the job
satisfying. He believes in the existence of a dual continuum. The opposite of ‘satisfaction’ is ‘no
satisfaction’ and the opposite of ‘dissatisfaction’ is ‘no dissatisatisfaction’.

According to Herzberg, today’s motivators are tomorrow’s hygiene because the latter stop
influencing the behaviour of persons when they get them. Accordingly, one’s hygiene may be the
motivator of another.

However, Herzberg’s model is labeled with the following criticism also:

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1. People generally tend to take credit themselves when things go well. They blame failure on the
external environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a person may dislike
part of his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Because of its ubiquitous nature, salary commonly shows up as a motivator as well as hygiene.

Regardless of criticism, Herzberg’s ‘two-factor motivation theory’ has been widely read and a few
managers seem undermine with his recommendations. The main use of his recommendations lies in
planning and controlling of employees work.

3. McClelland’s Need Theory:

Another well-known need-based theory of motivation, as opposed to hierarchy of needs of

satisfaction-dissatisfaction, is the theory developed by McClelland and his associates’. McClelland
developed his theory based on Henry Murray’s developed long list of motives and manifest needs used
in his early studies of personality. McClelland’s need-theory is closely associated with learning theory,
because he believed that needs are learned or acquired by the kinds of events people experienced in
their environment and culture.

He found that people who acquire a particular need behave differently from those who do not have.
His theory focuses on Murray’s three needs; achievement, power and affiliation. In the literature, these
three needs are abbreviated “n Ach”, “n Pow”, and “n Aff” respectively’.

They are defined as follows:

Need for Achievement:

This is the drive to excel, to achieve in relation to a set of standard, and to strive to succeed. In other
words, need for achievement is a behaviour directed toward competition with a standard of excellence.
McClelland found that people with a high need for achievement perform better than those with a
moderate or low need for achievement, and noted regional / national differences in achievement
motivation.

Through his research, McClelland identified the following three characteristics of high-need
achievers:

1. High-need achievers have a strong desire to assume personal responsibility for performing a task
for finding a solution to a problem.

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2. High-need achievers tend to set moderately difficult goals and take calculated risks.

3. High-need achievers have a strong desire for performance feedback.

Need for Power:

The need for power is concerned with making an impact on others, the desire to influence others, the
urge to change people, and the desire to make a difference in life. People with a high need for power
are people who like to be in control of people and events. This results in ultimate satisfaction to man.

People who have a high need for power are characterized by:

1. A desire to influence and direct somebody else.

2. A desire to exercise control over others.
3. A concern for maintaining leader-follower relations.

Need for Affiliation:

The need for affiliation is defined as a desire to establish and maintain friendly and warm relations
with other people’. The need for affiliation, in many ways, is similar to Maslow’s social needs.

The people with high need for affiliation have these characteristics:

1. They have a strong desire for acceptance and approval from others.

2. They tend to conform to the wishes of those people whose friendship and companionship they
value.

3. They value the feelings of others.

Figure 17.2 is a summary chart of the three need theories of motivation just discussed. The chart

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shows the parallel relationship between the needs in each of the theories. Maslow refers to higher-
lower order needs, whereas Herzberg refers to motivation and hygiene factors.

4. McGregor’s Participation Theory:

Douglas McGregor formulated two distinct views of human being based on participation of workers.
The first basically negative, labeled Theory X, and the other basically positive, labled Theory Y.

Theory X is based on the following assumptions:

1. People are by nature indolent. That is, they like to work as little as possible.

2. People lack ambition, dislike responsibility, and prefer to be directed by others.

3. People are inherently self-centered and indifferent to organisational needs and goals.

4. People are generally gullible and not very sharp and bright.

On the contrary, Theory Y assumes that:

1. People are not by nature passive or resistant to organisational goals.

2. They want to assume responsibility.

3. They want their organisation to succeed.

4. People are capable of directing their own behaviour.

5. They have need for achievement.

What McGregor tried to dramatise through his theory X and Y is to outline the extremes to draw the
fencing within which the organisational man is usually seen to behave. The fact remains that no
organisational man would actually belong either to theory X or theory Y. In reality, he/she shares the
traits of both. What actually happens is that man swings from one set or properties to the other
with changes in his mood and motives in changing .environment.

5. Urwick’s Theory Z:

Much after the propositions of theories X and Y by McGregor, the three theorists Urwick, Rangnekar,
and Ouchi-propounded the third theory lebeled as Z theory.

The two propositions in Urwicks’s theory are that:

(i) Each individual should know the organisational goals precisely and the amount of contribution
through his efforts towards these goals.

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(ii) Each individual should also know that the relation of organisational goals is going to satisfy
his/her needs positively.

In Urwick’s view, the above two make people ready to behave positively to accomplish both
organisational and individual goals.

However, Ouchi’s Theory Z has attracted the lot of attention of management practitioners as well as
researchers. It must be noted that Z does not stand for anything, is merely the last alphabet in the
English Language.

Theory Z is based on the following four postulates:

1. Strong Bond between Organisation and Employees

2. Employee Participation and Involvement

3. No Formal Organisation Structure

4. Human Resource Development

Ouchi’s Theory Z represents the adoption of Japanese management practices (group decision making,
social cohesion, job security, holistic concern for employees, etc.)by the American companies. In India,
Maruti-Suzuki, Hero-Honda, etc., apply the postulates of theory Z.

6. Argyris’s Theory:

Argyris has developed his motivation theory based on proposition how management practices affect
the individual behaviour and growth In his view, the seven changes taking place in an individual
personality make him/her a mature one. In other words, personality of individual develops

Argyris views that immaturity exists in individuals mainly because of organisational setting and
management practices such as task specialisation, chain of command, unity of direction, and span of
management. In order to make individuals grow mature, he proposes gradual shift from the existing
pyramidal organisation structure to humanistic system; from existing management system to the

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more flexible and participative management.

He states that such situation will satisfy not only their physiological and safety needs, but also will
motivate them to make ready to make more use of their physiological and safety needs. But also will
motivate them to make ready to make more use of their potential in accomplishing organisational
goals.

7. Vroom’s Expectancy Theory:

One of the most widely accepted explanations of motivation is offered by Victor Vroom in his
Expectancy Theory” It is a cognitive process theory of motivation. The theory is founded on the basic
notions that people will be motivated to exert a high level of effort when they believe there are
relationships between the effort they put forth, the performance they achieve, and the outcomes/
rewards they receive.

The relationships between notions of effort, performance, and reward are depicted in Figure 17.3

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence:

Valence, according to Vroom, means the value or strength one places on a particular outcome or
reward.

2. Expectancy:

It relates efforts to performance.

3. Instrumentality:

By instrumentality, Vroom means, the belief that performance is related to rewards.

Thus, Vroom’s motivation can also be expressed in the form of an equation as follows: Motivation =
Valence x Expectancy x Instrumentality

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Being the model multiplicative in nature, all the three variables must have high positive values to imply
motivated performance choice. If any one of the variables approaches to zero level, the possibility of
the so motivated performance also touches zero level.

However, Vroom’s expectancy theory has its critics. The important ones are:

1. Critics like Porter and Lawler lebeled it as a theory of cognitive hedonism which proposes that
individual cognitively chooses the course of action that leads to the greatest degree of pleasure or
the smallest degree of pain.

2. The assumption that people are rational and calculating makes the theory idealistic.

3. The expectancy theory does not describe individual and situational differences.

But the valence or value people place on various rewards varies. For example, one employee prefers
salary to benefits, whereas another person prefers to just the reverse. The valence for the same
reward varies from situation to situation.

In spite of all these critics, the greatest point in me expectancy theory is that it explains why
significant segment of workforce exerts low levels of efforts in carrying out job responsibilities.

8. Porter and Lawler’s Expectancy Theory:

In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory. They posit
that motivation does not equal satisfaction or performance. The model suggested by them
encounters some of the simplistic traditional assumptions made about the positive relationship
between satisfaction and performance. They proposed a multi-variate model to explain the complex
relationship that exists between satisfaction and performance.

What is the main point in Porter and Lawler’s model is that effort or motivation does not lead directly
to performance. It is intact, mediated by abilities and traits and by role perceptions. Ultimately,
performance leads to satisfaction,. The same is depicted in the following Fig 17.4.

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There are three main elements in this model. Let us briefly discuss these one by one.

Effort:

Effort refers to the amount of energy an employee exerts on a given task. How much effort an
employee will put in a task is determined by two factors-

(i) Value of reward and

(ii) Perception of effort-reward probability.

Performance:

One’s effort leads to his/her performance. Both may be equal or may not be. However the amount of
performance is determined by the amount of labour and the ability and role perception of the
employee. Thus, if an employee possesses less ability and/or makes wrong role perception, his/her
performance may be low in spite of his putting in great efforts.

Satisfaction:

Performance leads to satisfaction. The level of satisfaction depends upon the amount of rewards one
achieves. If the amount of actual rewards meet or exceed perceived equitable rewards, the employee
will feel satisfied. On the country, if actual rewards fall short of perceived ones, he/she will be
dissatisfied.

Rewards may be of two kinds—intrinsic and extrinsic rewards. Examples of intrinsic rewards are such
as sense of accomplishment and self-actualisation. As regards extrinsic rewards, these may include
working conditions and status. A fair degree of research support that, the intrinsic rewards are much

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more likely to produce attitudes about satisfaction that are related to performance.

There is no denying of the fact that the motivation model proposed by Porter and Lawler is quite
complex than other models of motivation. In fact motivation itself is not a simple cause-effect
relationship rather it is a complex phenomenon Porter and Lawler have attempted to measure
variables such as the values of possible rewards, the perception of effort-rewards probabilities and
role perceptions in deriving satisfaction.

They recommended that the managers should carefully reassess their reward system and structure.
The effort-performance-reward-satisfaction should be made integral to the entire system of
managing men in organisation.

Theories of Motivation

What you’ll learn to do: Describe various theories of motivation

We talked a little bit about what motivation is and what it looks like within an organization. To do
that, we used Victor Vroom’s expectancy framework, a model that attempts to dissect and explain
employee performance by distilling it down to its most basic level.

The expectancy framework is just one of many models that have been developed over the years. Since
the industrial age, scientists have been examining what motivates people to perform in employment
situations. None of them have it all wrong, but none of them have it all right. They’ll continue to try,
we’re sure, because a lot is at stake for organizations, and situations change every day.

In this unit, we’re going to take a look back at how we got to where we are now, and how we can
apply that today, domestically and abroad.

Learning Outcomes

 Explain the role of the Hawthorne effect in management

 List the various levels of needs in Maslow’s hierarchy
 Summarize the changes to Maslow’s hierarchy of needs in Alderfer’s ERG theory
 Describe how employees might be motivated using McClelland’s acquired needs theory
 Differentiate between Theory X and Theory Y
 Explain the difference between intrinsic and extrinsic motivators in Herzberg’s two-factor
theory

The Hawthorne Effect

During the 1920s, a series of studies that marked a change in the direction of motivational and
managerial theory was conducted by Elton Mayo on workers at the Hawthorne plant of the Western
Electric Company in Illinois. Previous studies, in particular Frederick Taylor’s work, took a “man as
machine” view and focused on ways of improving individual performance. Hawthorne, however, set the
individual in a social context, arguing that employees’ performance is influenced by work surroundings
and coworkers as much as by employee ability and skill. The Hawthorne studies are credited with
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focusing managerial strategy on the socio-psychological aspects of human behavior in organizations.

The following video from the AT&T archives contains interviews with individuals who participated in
these studies. It provides insight into the way the studies were conducted and how they changed
employers’ views on worker motivation.

The studies originally looked into the effects of physical conditions on productivity and whether
workers were more responsive and worked more efficiently under certain environmental conditions,
such as improved lighting. The results were surprising: Mayo found that workers were more
responsive to social factors—such as their manager and coworkers—than the factors (lighting, etc.)
the researchers set out to investigate. In fact, worker productivity improved when the lights were
dimmed again and when everything had been returned to the way it was before the experiment began,
productivity at the factory was at its highest level and absenteeism had plummeted.

What happened was Mayo discovered that workers were highly responsive to additional attention
from their managers and the feeling that their managers actually cared about and were interested in
their work. The studies also found that although financial incentives are important drivers of worker
productivity, social factors are equally important

There were a number of other experiments conducted in the Hawthorne studies, including one in which
two women were chosen as test subjects and were then asked to choose four other workers to join
the test group. Together, the women worked assembling telephone relays in a separate room over the
course of five years (1927–1932). Their output was measured during this time—at first, in secret. It
started two weeks before moving the women to an experiment room and continued throughout the
study. In the experiment room, they were assigned to a supervisor who discussed changes with them
and, at times, used the women’s suggestions. The researchers then spent five years measuring how
different variables affected both the group’s and the individuals’ productivity. Some of the variables
included giving two five-minute breaks (after a discussion with the group on the best length of time),
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and then changing to two ten-minute breaks (not the preference of the group).

Changing a variable usually increased productivity, even if the variable was just a change back to the
original condition. Researchers concluded that the employees worked harder because they thought
they were being monitored individually. Researchers hypothesized that choosing one’s own coworkers,
working as a group, being treated as special (as evidenced by working in a separate room), and having
a sympathetic supervisor were the real reasons for the productivity increase.

The Hawthorne studies showed that people’s work performance is dependent on social issues and job
satisfaction. The studies concluded that tangible motivators such as monetary incentives and good
working conditions are generally less important in improving employee productivity than intangible
motivators such as meeting individuals’ desire to belong to a group and be included in decision making
and work.

Need-Based Theories

Maslow’s Hierarchy of Needs

Human motivation can be defined as the fulfillment of various needs. These needs can encompass a
range of human desires, from basic, tangible needs of survival to complex, emotional needs
surrounding an individual’s psychological well-being.

Abraham Maslow was a social psychologist who was interested in a broad spectrum of human
psychological needs rather than on individual psychological problems. He is best known
for his hierarchy-of-needs theory. Depicted in a pyramid (shown in Figure 1), the theory organizes the
different levels of human psychological and physical needs in order of importance.

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 Figure 1. Maslow’s hierarchy of
needs is illustrated here. In some versions of the pyramid, cognitive and aesthetic needs are also
included between esteem and self-actualization. Others include another tier at the top of the pyramid
for self-transcendence.

The needs in Maslow’s hierarchy include physiological needs (food and clothing), safety needs (job
security), social needs (friendship), self-esteem, and self-actualization. This hierarchy can be used by
managers to better understand employees’ needs and motivation and address them in ways that lead
to high productivity and job satisfaction.

At the bottom of the pyramid are the physiological (or basic) human needs that are required for
survival: food, shelter, water, sleep, etc. If these requirements are not met, the body cannot continue
to function. Faced with a lack of food, love, and safety, most people would probably consider food to
be their most urgent need.

Once physical needs are satisfied, security (sometimes referred to as individual safety) takes
precedence. Security and safety needs include personal security, financial security, and health and well
-being. These first two levels are important to the physical survival of the person. Once individuals
have basic nutrition, shelter, and safety, they seek to fulfill higher-level needs.

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The third level of need is social, which includes love and belonging; when individuals have taken care of
themselves physically, they can address their need to share and connect with others. Deficiencies at
this level, on account of neglect, shunning, ostracism, etc., can impact an individual’s ability to form
and maintain emotionally significant relationships. Humans need to feel a sense of belonging and
acceptance, whether it comes from a large social group or a small network of family and friends.
Other sources of social connection may be professional organizations, clubs, religious groups, social
media sites, and so forth. Humans need to love and be loved (sexually and non-sexually) by others.
Without these attachments, people can be vulnerable to psychological difficulties such as loneliness,
social anxiety, and depression. These conditions, when severe, can impair a person’s ability to
address basic physiological needs such as eating and sleeping.

The fourth level is esteem, which represents the normal human desire to be valued and validated by
others, through, for example, the recognition of success or status. This level also includes self-esteem,
which refers to the regard and acceptance one has for oneself. Imbalances at this level can result in
low self-esteem or an inferiority complex. People suffering from low self-esteem may find that
external validation by others—through fame, glory, accolades, etc.—only partially or temporarily
fulfills their needs at this level.

At the top of the pyramid is self-actualization. At this stage, people feel that they have reached
their full potential and are doing everything they’re capable of. Self-actualization is rarely a
permanent feeling or state. Rather, it refers to the ongoing need for personal growth and discovery
that people have throughout their lives. Self-actualization may occur after reaching an important goal
or overcoming a particular challenge, and it may be marked by a new sense of self-confidence
or contentment.

Alderfer’s ERG Theory

Clayton Paul Alderfer is an American

psychologist who developed Maslow’s hierarchy of needs into a theory of his own. Alderfer’s ERG
theory suggests that there are three groups of core needs: existence (E), relatedness (R), and growth
(G)—hence the acronym ERG. These groups align with Maslow’s levels of physiological needs, social
needs, and self-actualization needs, respectively.

Existence needs concern our basic material requirements for living. These include what Maslow

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categorized as physiological needs (such as air, food, water, and shelter) and safety-related needs
(such as health, secure employment, and property).

Relatedness needs have to do with the importance of maintaining interpersonal relationships. These
needs are based in social interactions with others and align with Maslow’s levels of love/belonging-
related needs (such as friendship, family, and sexual intimacy) and esteem-related needs (gaining the
respect of others).

Finally, growth needs to describe our intrinsic desire for personal development. These needs align with
the other portion of Maslow’s esteem-related needs (self-esteem, self-confidence, and achievement)
and self-actualization needs (such as morality, creativity, problem-solving, and discovery).

Alderfer proposed that when a certain category of needs isn’t being met, people will redouble their
efforts to fulfill needs in a lower category. For example, if someone’s self-esteem is suffering, he or
she will invest more effort in the relatedness category of needs.

McClelland’s Acquired Needs Theory

Psychologist David McClelland’s acquired-needs theory splits the needs of employees into three
categories rather than the two we discussed in Herzberg’s theory. These three categories
are achievement, affiliation, and power.

Employees who are strongly achievement-motivated are driven by the desire for mastery. They prefer
working on tasks of moderate difficulty in which outcomes are the result of their effort rather than
luck. They value receiving feedback on their work.

Employees who are strongly affiliation-motivated are driven by the desire to create and maintain
social relationships. They enjoy belonging to a group and want to feel loved and accepted. They may
not make effective managers because they may worry too much about how others will feel about
them.

Employees who are strongly power-motivated are driven by the desire to influence, teach, or
encourage others. They enjoy work and place a high value on discipline. However, they may take a zero
-sum approach to group work—for one person to win, or succeed, another must lose, or fail. If
channeled appropriately, though, this approach can positively support group goals and help others in
the group feel competent.

The acquired-needs theory doesn’t claim that people can be neatly categorized into one of three
types. Rather, it asserts that all people are motivated by all of these needs in varying degrees and
proportions. An individual’s balance of these needs forms a kind of profile that can be useful in
creating a tailored motivational paradigm for her. It is important to note that needs do not
necessarily correlate with competencies; it is possible for an employee to be strongly affiliation-
motivated, for example, but still be successful in a situation in which her affiliation needs are not met.

McClelland proposes that those in top management positions generally have a high need for power
and a low need for affiliation. He also believes that although individuals with a need for achievement
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can make good managers, they are not generally suited to being in top management positions.

McGregor’s Theory X and Theory Y

Douglas McGregor, a management professor at the Massachusetts Institute of Technology during the
1950s and 1960s, originally proposed the idea that a manager’s attitude has an impact on employee
motivation. In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by which
managers perceive and address employee motivation. He referred to these opposing motivational
methods as Theory X and Theory Y management. Each assumes that the manager’s role is to organize
resources, including people, to best benefit the company. However, beyond this commonality,
the attitudes and assumptions they embody are quite different.

Theory X

According to McGregor, Theory X management assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid work whenever
possible.
 Most people are not ambitious, have little desire for responsibility, and prefer to be directed.
 Most people have little aptitude for creativity in solving organizational problems.
 Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs.
 Most people are self-centered. As a result, they must be closely controlled and often coerced
to achieve organizational objectives.
 Most people resist change.
 Most people are gullible and unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is monetary, with
security as a strong second. Under Theory X, one can take a hard or soft approach to getting results.

The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight
controls— essentially an environment of command and control. The soft approach, however, is to be
permissive and seek harmony in the hopes that, in return, employees will cooperate when asked.
However, neither of these extremes is optimal. The hard approach results in hostility, purposely low
output, and extreme union demands. The soft approach results in a growing desire for greater reward
in exchange for diminished work output.

It might seem that the optimal approach to human resource management would lie somewhere
between these extremes. However, McGregor asserts that neither approach is appropriate, since the
basic assumptions of Theory X are incorrect.

Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once satisfied, no longer
motivates. The company uses monetary rewards and benefits to satisfy employees’ lower-level needs.
Once those needs have been satisfied, the motivation disappears. Theory X management hinders the
satisfaction of higher-level needs because it does not acknowledge that those needs are relevant in
the workplace. As a result, the only way that employees can attempt to meet higher-level needs at
work is to seek more compensation, so, predictably, they focus on monetary rewards. While money
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may not be the most effective way to self-fulfillment, it may be the only way available. People will use
work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time.
However, employees can be most productive when their work goals align with their higher-level needs.

McGregor makes the point that a command-and-control environment is not effective because it relies
on lower needs for motivation, but in modern society, those needs are mostly satisfied and thus are
no longer motivating. In this situation, one would expect employees to dislike their work, avoid
responsibility, have no interest in organizational goals, resist change, etc.—creating, in effect, a self-
fulfilling prophecy. To McGregor, a steady supply of motivation seemed more likely to occur
under Theory Y management.

Theory Y

The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are
never completely satisfied. As such, it is these higher-level needs through which employees can best
be motivated.

In strong contrast to Theory X, Theory Y management makes the following assumptions:

 Work can be as natural as play if the conditions are favorable.

 People will be self-directed and creative to meet their work and organizational objectives if
they are committed to them.
 People will be committed to their quality and productivity objectives if rewards are in place
that address higher needs such as self-fulfillment.
 The capacity for creativity spreads throughout organizations.
 Most people can handle responsibility because creativity and ingenuity are common in the
population.
 Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with organizational goals by
using the employee’s own need for fulfillment as the motivator. McGregor stressed that Theory Y
management does not imply a soft approach.

McGregor recognized that some people may not have reached the level of maturity assumed by
Theory Y and may initially need tighter controls that can be relaxed as the employee develops.

If Theory Y holds true, an organization can apply the following principles of scientific management to
improve employee motivation:

 Decentralization and delegation: If firms decentralize control and reduce the number of levels
of management, managers will have more subordinates and consequently need to delegate
some responsibility and decision making to them.
 Job enlargement: Broadening the scope of an employee’s job adds variety and opportunities
to satisfy ego needs.
 Participative management: Consulting employees in the decision-making process taps their
creative capacity and provides them with some control over their work environment.
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  Performance appraisals: Having the employee set objectives and participate in the process of
self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually fuel motivation as
employees work to satisfy their higher-level personal needs through their jobs.

Herzberg’s Two-Factor Theory

American psychologist Frederick Herzberg is regarded as one of the great original thinkers in
management and motivational theory. Herzberg set out to determine the effect of attitude on
motivation, by simply asking people to describe the times when they felt really good, and really bad,
about their jobs. What he found was that people who felt good about their jobs gave very different
responses from the people who felt bad.

The results from this inquiry form the basis of Herzberg’s Motivation-Hygiene Theory (sometimes
known as Herzberg’s “Two Factor Theory”). Published in his famous article, “One More Time: How do
You Motivate Employees,” the conclusions he drew were extraordinarily influential, and still form the
bedrock of good motivational practice nearly half a century later. He’s especially recognized for his
two-factor theory, which hypothesized that are two different sets of factors governing job
satisfaction and job dissatisfaction: “hygiene factors,” or extrinsic motivators and “motivation
factors,” or intrinsic motivators.

Hygiene factors, or extrinsic motivators, tend to represent more tangible, basic needs—i.e., the kinds
of needs included in the existence category of needs in the ERG theory or in the lower levels of
Maslow’s hierarchy of needs. Extrinsic motivators include status, job security, salary, and fringe
benefits. It’s important for managers to realize that not providing the appropriate and expected
extrinsic motivators will sow dissatisfaction and decrease motivation among employees.

Motivation factors, or intrinsic motivators, tend to represent less tangible, more emotional
needs—i.e., the kinds of needs identified in the “relatedness” and “growth” categories of needs in
the ERG theory and in the higher levels of Maslow’s hierarchy of needs. Intrinsic motivators include
challenging work, recognition, relationships, and growth potential. Managers need to recognize that
while these needs may fall outside the more traditional scope of what a workplace ought to provide,
they can be critical to strong individual and team performance.

The factor that differentiates two-factor theory from the others we’ve discussed is the role of
employee expectations. According to Herzberg, intrinsic motivators and extrinsic motivators have an
inverse relationship. That is, intrinsic motivators tend to increase motivation when they are present,
while extrinsic motivators tend to reduce motivation when they are absent. This is due to employees’
expectations. Extrinsic motivators (e.g., salary, benefits) are expected, so they won’t increase
motivation when they are in place, but they will cause dissatisfaction when they are missing. Intrinsic
motivators (e.g., challenging work, growth potential), on the other hand, can be a source of additional
motivation when they are available.

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If management wants to increase employees’ job satisfaction, they should be concerned with the
nature of the work itself—the opportunities it presents employees for gaining status, assuming
responsibility, and achieving self-realization. If, on the other hand, management wishes to reduce
dissatisfaction, then it must focus on the job environment—policies, procedures, supervision, and
working conditions. To ensure a satisfied and productive workforce, managers must pay attention to
both sets of job factors.

Motivation can be described as the internal force that impacts the direction, intensity, and endurance
of a person’s voluntary choice of behavior. It consists of −

 Direction − focused by goals.

 Intensity − bulk of effort allocated.
 Persistence − amount of time taken for the effort to be exerted.

Example − A team leader encourages team members to work efficiently.

Features of Motivation

Motivation is an internal feeling, that is, it defines the psychological state of a person. It is a

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continuous process and we should make sure that it is not disturbed. A person should be encouraged
completely.

Motivation consists of three interacting and dependent elements −

 Needs − The requirements or deficiency which is created whenever there is physiological

imbalance.
 Drives − The various camps or events organized to motivate the employees and give them
new opportunities.
 Incentives − Employees need to be rewarded for their nice work in order to keep them
encouraged.

Importance of Motivation

We need to motivate employees because of the following reasons −

 Motivated employee are more quality oriented.

 Highly motivated employees are more productive as compared to other employees.
 It helps in achieving three behavior dimension of human resource namely
o Candidates must be attracted not only to join but also remain in the firm.
o Employees must perform task in a dependable manner.
o Employees should be creative, spontaneous and innovative at work.

Maslow’s Hierarchy of Needs Theory

This theory was produced in order to answer the question “What motivates an individual”. Every
second need comes to force when the first need is satisfied completely. Maslow explained the
hierarchy of needs by grouping them into two: deficiency needs and growth needs.

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Physiological Needs

Every individual needs to take care of the basic requirements required to sustain. These requirements
include food to eat, clothing to wear and shelter to live in. These necessities are relatively
independent of each other but are finite.

Safety Needs

Everybody wants to stay in a protected environment with minimal danger so that they can have a
peaceful life. Safety needs basically includes protection from physiological danger like accident and
having economic security like bank accounts, health insurance

In an enterprise, it includes job security, salary increment, etc. The managerial practice to satisfy this
involves offering pension scheme, provident fund, gratuity etc.

Social Needs

We have all heard that man is a social animal, we want to be there with those people where we are
loved and we are accepted as we are; nobody wants to be judged. This is a common requirement every
human desires.
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This theory helps managers to think about encouraging their employees by identifying employee
needs. In short, it presents motivation as constantly changing force, expressing itself to the constant
need for fulfilment of new and higher levels of needs.

Esteem

Esteem means the typical human desire to be accepted and valued by others. People often involve in a
profession or hobby to gain recognition, earn fame and respect. According to Maslow, the needs of
humans have strict guidelines - the hierarchies rather than being sharply separated, are interrelated.
This means that esteem and the consequent levels are not strictly separated but are closely related.

Self-Actualization

Self-actualization means realizing one’s full potential. Maslow describes this as a desire to complete
everything that one can, to become the most that one can be.

Theory X & Theory Y

Our management style is firmly influenced by our beliefs and assumptions about what encourages
members of our team like: If we believe that our team members dislike work, then we tend towards an
authoritarian style of management. However, if we assume that employees take pride in doing a good
job, we tend to adopt a more participative style.

Douglas McGregor, the eminent social psychologist, divides management style into two contrasting
theories −

 Theory X
 Theory Y

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Theory X

This theory believes that employees are naturally unmotivated and dislike working, and this
encourages an authoritarian style of management. According to this theory, management must firmly
intervene to get things done. This style of management concludes that workers −

 Disfavor working.
 Abstain responsibility and the need to be directed.
 Need to be controlled, forced, and warned to deliver what's needed.
 Demand to be supervised at each and every step, with controls put in place.
 Require to be attracted to produce results, else they have no ambition or incentive to work.

McGregor observed that X-type workers are in fact mostly in minority, and yet in mass organizations,
such as large scale production environment, X Theory management may be needed and can be
unavoidable.

Theory Y

This theory explains a participative style of management, that is, distributive in nature. It concludes
that employees are happy to work, are self-motivated and creative, and enjoy working with greater
responsibility. It estimates that workers −

 Take responsibility willingly and are encouraged to fulfill the goals they are given.
 Explore and accept responsibility and do not need much guidance.
 Assume work as a natural part of life and solve work issues imaginatively.

In Y-type organizations, people at lower levels are engaged in decision making and have more
responsibility.

Comparing Theory X & Theory Y

Let us now compare both the theories −

Motivation

Theory X considers that people dislike work, they want to avoid it and do not take responsibilities
willingly.

While, Theory Y considers that people are self-motivated, and sportingly take responsibilities.

Management Style and Control

In Theory X-type organization, management is authoritarian, and centralized control is maintained.

While in Theory Y-type organization, the management style is participative, employees are involved

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decision making, but the power retains to implement decisions.

Work Organization

Theory X employees are specialized and the same work cycle continues.

In Theory Y, the work tends to be coordinated around wider areas of skill or knowledge. Employees
are also motivated to develop expertise, and make suggestions and improvements.

Rewards and Appraisals

Theory X-type organizations work on a ‘carrot and stick’ basis, and performance assessment is part
of the overall mechanism of control and compensation.

Coming to Theory Y-type organizations, appraisal is also regular and crucial, but is usually a separate
mechanism from organizational controls. Theory Y-type organizations provide employees frequent
opportunities for promotion.

Application

Admitting the fact that Theory X management style is widely accepted as inferior to others, it has
its place in large scale production procedure and unskilled production-line work.

Many of the principles of Theory Y are widely accepted by different types of organization that value
and motivate active participation.

Theory Y-style management is appropriate for knowledge work and licensed services. Licensed service
organizations naturally develop Theory Y-type practices by the nature of their work, even high
structure knowledge framework, like call center operations, benefit from its principles to motivate
knowledge sharing and continuous improvement.

Organizational Behavior - Groups

A group can be defined as two or more interacting and interdependent individuals who come together
to achieve particular objectives. A group behavior could be stated as a course of action a group takes
as a family. For example: Strike.

Types of Groups

There are two types of groups an individual forms. They are formal groups and informal groups. Let us
know about these two groups.

Formal Groups

These are the type of work groups created by the organization and have designated work

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assignments and rooted tasks. The behavior of such groups is directed toward achieving
organizational goals.

These can be further classified into two sub-groups −

 Command group − It is a group consisting of individuals who report directly to the manager.
 Interest group − It is a group formed by individuals working together to achieve a specific
objective. Example − A group of workers working on a project and reporting to the same
manager is considered as a command group. A group of friends chilling out together is
considered as interest group or say members of a club.

Informal Groups

These groups are formed with friendships and common interests. These can be further classified into
two sub-groups −

 Task group − Those working together to finish a job or task is known as task group.
 Friendship group − Those brought together because of their shared interests or common
characteristics is known as friendship group.

Why Do People Join Groups

There is no particular reason answering why individuals join groups. Group helps individual to feel
stronger, have fewer self-doubts, and be more contrary to threats.

The following points help us understand the need of joining a group by individuals −

 Security mirrors strength in numbers. Status pinpoints a prestige that comes from belonging
to a specific group. Inclusion in a group is considered as important because it provides
recognition and status.
 Self-esteem transmits people's feelings of self-worth. Membership can sometimes raise
feelings of self-esteem like being accepted into a highly valued group.
 Affiliation with groups can meet one's social needs. Work groups significantly contribute to
meet the need for friendships and social relations.
 Groups represent power. What mostly cannot be achieved individually becomes possible with
group effort. Power might be aimed to protect themselves from unreasonable demands.
Informal groups provide options for individuals to practice power.
 People may join a group for goal achievement. Sometimes it takes more than one person to
accomplish a particular task.

Group Roles

The concept of roles is applicable to all employees within an organization as well as to their life

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outside the organization. A role is a set of expected behavior patterns attributed to the one who
occupies the position demanded by the social unit.

Individuals play multiple roles at the same time. Employees attempt to understand what kind of
behavior is expected from them. An individual when presented by divergent role expectations
experiences role conflict. Group roles are divided into three types −

 Task-oriented Roles
 Relationship-oriented Roles
 Individual Roles

Task-oriented Roles

Roles allotted to individuals according to their work and eligibility is known as task-oriented roles.
Task-oriented roles can broadly divide individuals into six categories initiator, informer, clarifier,
summarizer, reality tester and information seekers or providers respectively.

 Initiator − The one who proposes, suggests, defines.

 Informer − The one who offers facts, expresses feelings, gives opinions.
 Clarifier − The one who interprets, defines, clarifies everything.
 Summarizer − The one who links, restates, concludes, summarizes.
 Reality Tester − The one who provides critical analysis.
 Information seekers or providers − The one who gives information and data.

These roles present the work performed by different individuals according to their marked
designation.

Relationship-oriented Roles

Roles that group individuals according to their efforts made to maintain healthy relationship in the
group and achieve the goals are known as relationship-oriented roles. There are five categories of
individuals in this category namely: harmonizer, gatekeeper, consensus tester, encourager, and
compromiser.

 Harmonizers − The one who limits tension and reconciles disagreements.

 Gatekeeper − The one who ensures participation by all.
 Consensus Tester − The one who analyzes the decision-making process.
 Encourager − The one who is warm, responsive, active, shows acceptance.
 Compromiser − The one who admits error, limits conflict.

These roles depict the various roles an individual plays to maintain healthy self as well as group
relationships.

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Individual Roles

Roles that classify a person according to the measure of individual effort put in the project aimed is
known as individual roles. Five types of individuals fall into these roles: aggressor, blocker, dominator,
cavalier, and avoidance.

 Aggressor − The one who devalues others, attacks ideas.

 Blocker − The one who disagrees and rebels beyond reason.
 Dominator − The one who insists superiority to manipulate.
 Cavalier − The one who takes part in a group non-productively.
 Avoidance − The one who shows special interest to avoid task.

These are the various roles a person plays in an organization.

Well-Functioning Groups

We know what a group is, why it is important to form a group, and what the group-oriented roles are.
Now we need to know how to mark a group as a well-functioning group, what features are necessary
for a group to mark it as efficient.

A group is considered effective when it has the following characteristics.

 Relaxed, comfortable, friendly atmosphere.

 Task to be executed are well understood and accepted.
 Members listen well and actively participate in given assignments.
 Assignments are made clear and are accepted.
 Group is acquainted of its operation and function.
 People express their feelings and ideas openly.
 Consensus decision-making process is followed.
 Conflict and disagreement center regarding ideas or method.

Group Behavior – Example

Let us understand group behavior with the help of an example.

To work on a specific project, we make a group of 4 members: Rohit, Raj, Sid, and Rahul. It is not
possible for any one of them to complete the project individually as it may be time consuming as well
as not all the members as individuals have mastered the skills required to complete the project. This
indicates the need to come together as a group.

Moving ahead, let us specify their roles. Rohit is the initiator, as he proposes the idea of the project,
Raj collects all the information and resources required for the project and becomes the informer, Sid
is the clarifier as he interprets the data and saves refined information, and Rahul is the summarizer as
he concludes the result of the project that is what do we achieve by the end of our project. These are
the task-oriented roles.

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When a group of people come together and present their ideas there is a fair chance of collision.
Rohit tries to resolve all the disagreements and disputes in the first place and acts as a harmonizer,
Sid makes sure that everybody is giving their full support and effort in the project and acts as a
gatekeeper, Raj is the one encouraging everyone and motivating them when they fail to try harder to
complete the project and is the encourager, while Rahul tests the project at each stage and examines
the major decision to be made and is the consensus tester. These are the relationship-oriented roles
of each member.

Individually, each of them have different tasks to fulfill. Rohit tries to be the group leader and impose
his ideas on others and we consider him as the dominator, Rahul is always up with excuses to avoid
the task given to him and acts as avoider, Raj is the one who opposes everything but is never up with
some new idea and becomes the blocker, while Sid takes part in every group activity in a non-
productive way and becomes the cavalier.

Reference Groups

It is a group to which a person or another group is compared. Reference groups are used in order to
examine and determine the nature of a person or other group's features and sociological attributes. It
is the group to which a person relates or aspires to link himself or herself psychologically.

It is important for deciding a person's self-identity, attitudes, and social ties. It becomes the ground
of reference in making comparisons or contrasts and in judging one's appearance and performance.
These groups act as a benchmark and contrast needed for comparison and evaluation of group and
personal characteristics.

An example of a reference group, would be the certainty of wealth. An individual in the US with an
annual income of $70,000, may consider himself rich if he compares himself to those in the middle
income strata, who earn roughly $22,000 a year. However, if the same person considers the relevant
reference group to be those in the top 0.5% of households in the US, those making $1.8 million or
more, then the individual's income of $70,000 would make him seem rather poor.

Group Decision Making

Group decision-making commonly known as collaborative decision-making is a situation faced when

individuals collectively make a choice from the alternatives before them.

The decision is then no longer attributable to any individual group member as all the individuals and
social group processes like social influence contribute to the decision outcome.

The decisions made by groups are mostly different from those made by individuals. For example,
groups tend to make decisions that are more extreme than those made by individual members, as
individuals tend to be biased.

Advantages of Group Decision Making

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Group decision making has two advantages over individual decision making.

Synergy

It is the idea that the whole is greater than the aggregate of its parts. When a group makes a
decision collectively, its judgment can be powerful than that of any of its members. Through
discussing, questioning, and collaborative approach, group members can identify more complete and
robust solutions and recommendations.

Sharing of information

Group decisions take into account a wider scope of information as each group member may
contribute distinct information and expertise. Sharing information increases understanding, clarifies
issues, and facilitates movement towards a collective decision.

Disadvantages of Group Decision Making

The major disadvantages of group decision making are as follows −

Diffusion of Responsibility

Group decision making results in distribution of responsibility that results in lack of accountability for
outcomes. In this way, everyone is responsible for a decision, and no one really is. Moreover, group
decisions can make it easier for members to refuse personal responsibilities and blame others for bad
decisions.

Lower Efficiency

Group decisions can sometimes be less efficient than individual decisions. It takes additional time
because there is a need of active participation, discussion, and coordination among group members.
Without good facilitation and structure, meetings can get eliminated in trivial details that may
matter a lot to one person but not to the others.

Groupthink

One of the biggest disadvantage of effective group decision making is groupthink. It is a

psychological phenomenon that occurs within a group of people in which the wish for harmony or
conformity results in an illogical or dysfunctional decision-making outcome.

By refraining themselves from outside influences and actively suppressing opposing viewpoints in the
interest of minimizing conflict, group members reach a consensus decision without critical evaluation
of substitute viewpoints.

Groupthink sometimes produces dehumanizing actions against the out-group.

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Group Decision-Making Techniques

In order to eliminate group think and group shift from a group, we can use four different techniques
that will help us make a collaborative decision that is best for the group. These techniques are −

 Brainstorming
 Nominal group thinking
 Didactic technique
 Delphi technique

Brainstorming

This technique includes a group of people, mostly between five and ten in number, sitting around a
table, producing ideas in the form of free association. The main focus is on generation of ideas and
not on evaluation of these ideas.

If more ideas can be originated, then it is likely that there will be a unique and creative idea among
them. All these ideas are written on the blackboard with a piece of chalk so that all the team
members can see every idea and try to improvise these ideas.

Brainstorming technique is very effective when the problem is comparatively precise and can be
simply defined. A complex problem can be divided into parts and each part can be dealt with
separately at a time.

Nominal Group Thinking

This technique is similar to brainstorming except that this approach is more structured. It motivates
individual creativity. Members form the group for namesake and operate independently, originate
ideas for solving the problem on their own, in silence and in writing. Members do not communicate
well with each other so that strong personality domination is evaded.

The group coordinator either collects the written ideas or writes them on a large blackboard so that
each member of the group can see what the ideas are. These ideas are further discussed one by one in
turn and each participant is motivated to comment on these ideas in order to clarify and improve
them. After all these ideas have been discussed, they are evaluated for their merits and drawbacks
and each actively participating member is needed to vote on each idea and allot it a rank on the basis
of priority of each alternative solution.

The idea with the highest cumulative ranking is selected as the final solution to the problem.

Didactic Interaction

This technique is applicable only in certain situations, but is an excellent method when a situation
actually demands it. The type of problem should be such that it generates output in the form of yes
or no. Say for example, a decision is to be made whether to buy or not to buy a product, to merge or

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not to merge, to expand or not to expand and so on. These types of decision requires an extensive
and exhaustive discussion and investigation since a wrong decision can have serious consequences.

There are many advantages as well as disadvantages of this type of situation. The group that makes
the decision is divided into two sub-groups, one in favor of the “go” decision and the opposing in
favor of “no go” decision.

The first group enlists all the “pros” of the problem solution and the second group lists all the “cons”.
These groups meet and discuss their discoveries and their reasons.

After tiring discussions, the groups switch sides and try to find weaknesses in their own original
standpoints. This interchange of ideas and understanding of various viewpoints results in mutual
acceptance of the facts as they exist so that a solution can be put together around these facts and
ultimately a final decision is reached.

Delphi Technique

This technique is the improvised version of the nominal group technique, except that it involves
obtaining the opinions of experts physically distant from each other and unknown to each other.

This isolates group members from the undue influence of others. Basically, the types of problems
sorted by this technique are not specific in nature or related to a particular situation at a given time.

For example, the technique could be used to explain the problems that could be created in the event of
a war. The Delphi technique includes the following steps −

 The problem is first identified and a panel of experts are selected. These experts are asked to
provide potential solutions through a series of thoughtfully designed questionnaires.
 Each expert concludes and returns the initial questionnaire.
 The results of the questionnaire are composed at a central location and the central
coordinator prepares a second set of questionnaire based on the previous answers.
 Each member receives a copy of the results accompanied by the second questionnaire.
 Members are required to review the results and respond to the second questionnaire. The
results typically trigger new solutions or motivate changes in the original ideas.
 The process is repeated until a general agreement is obtained.

Organizational Behavior - Leadership

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

Importance of Leadership

Leadership is very important in a firm as it leads to higher performance by the team members, it
improves motivation and morale within the members, and helps to respond to change.

Leadership facilitates organizational success by creating responsibility and accountability among the
members of the organization. In short, it increases value in an organization.

Leader Vs Manager disavows

A leader is someone whom people follow or someone who guides or directs others. A manager is
someone who is responsible for directing and controlling the work and staff in an organization, or of
a department within it.

The main difference between the two is that a leader works by example, while a manager dictates
expectations. If a manager goes against the rules, that will tarnish his position as a manager. If a
leader goes against the example he or she is trying to set, that will be seen as a setback. Following
are a few subtle differences between the two −

 A leader is an innovator and creator whereas a manager is a commander.

 A leader can’t be a manager but the opposite is possible, a manager is more than a leader.
 A leader does what is right, while the manager makes things right.
 A leader deals with change whereas a manager plans for a change.
 A leader gives direction to do something whereas the manager plans for everything that is to
be done.
 A leader encourages people whereas the manager controls people.
 A leader handles communication, credibility, and empowerment whereas a manager deals with
organizing and staffing.

Leadership Styles

Different leadership styles exist in work environments. The culture and goal of an organization
determine which leadership style fits best. Some organizations offer different leadership styles within
an organization, depending on the necessary tasks to complete and departmental needs.

We find five different leadership styles in the corporate world. They are as follows

Laissez-Faire

A laissez-faire leader does not directly supervise employees and fails to provide regular updates to
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those under his supervision. Highly experienced and trained employees with minimal requirement of
supervision fall under the laissez-faire leadership style.

But, not all employees possess these features. This leadership style blocks the production of
employees needing supervision. The laissez-faire style implements no leadership or supervision efforts
from managers, which can lead to poor production, lack of control and increasing costs.

Autocratic

The autocratic leadership style permits managers to make decisions alone without the input of others.
Managers access total authority and impose their will on employees. No one opposes the decisions of
autocratic leaders. Countries like Cuba and North Korea operate under the autocratic leadership style.

This leadership style benefits those who require direct supervision. Creative employees who
participate in group functions detest this leadership style.

Participative

This is also known as the democratic leadership style. It values the input of team members and peers,
but the responsibility of making the final decision rests with the participative leader. Participative
leadership motivates employee morale because employees make contributions to the decision-making
process. It accounts to a feeling that their opinions matter.

When an organization needs to make changes within itself, that is internally, the participative
leadership style helps employees accept changes easily as they play a role in the process. This
leadership style meets challenges when companies need to make a decision in a short period of time.

Transactional

Transactional leadership style is formed by the concept of reward and punishment. Transactional
leaders believe that the employee's performance is completely dependent on these two factors. When
there is an encouragement, the workers put in their best effort and the bonus is in monetary terms in
most of the cases. In case they fail to achieve the set target they are given a negative appraisal.

Transactional leaders pay more attention to physical and security requirements of the employees.

Transformational

Transformational leadership has the ability to affect employee's perceptions through the returns that
organization gets in the form of human capital benefits. These leaders have the ability to reap higher
benefits by introducing knowledge management processes, encouraging interpersonal communication
among employees and creating healthy organizational culture.

It helps in flourishing organizational innovation by creating a participative environment or culture. It

promotes a culture where the employees have autonomy to speak about their experiences and share

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knowledge.

It has been seen that transformational leaders are more innovative than transactional and laisse-faire
leaders.

Traditional Theory

Traditional theory is a theory based on different traits of a human beings. It assumes that leaders are
born and not made. According to this theory, leadership behavior is the sum total of all traits that a
leader possess.

Thus this theory gives the profile of a successful and complete leader. According to this theory, there
are five human traits. They are −

 Physical trait − it includes energy, activity, appearance, and height.

 Ability trait − it includes judgement, knowledge, and fluency in speech.
 Personal trait − it includes self-confidence, creativity, and enthusiasm.
 Work trait − it includes organization and achievement.
 Social trait − it includes interpersonal skill, cooperativeness, popularity and prestige.

Drawbacks

Following are the major drawbacks of this theory −

 Traits are not arranged according to their importance.

 There is no quantitative tool to judge the human traits.
 This trait can’t be used universally.
 This trait can be achieved and developed.
 Situational factors are avoided.

Theories of Leadership

Behavioral Theory

This theory explains the effectiveness of leadership. According to this theory, leadership has two
qualities i.e., initiating structure and consideration. These qualities are tested with higher and lower
levels with proper intersection of each other.

Initiating Structure

It is the level up to which a leader is task oriented and directs the employee towards achieving a goal.
In this case, the leader gives instruction, makes plan and schedules work activities.

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Consideration

It is the level up to which a leader is concerned with the sub-ordinates, ideas and feelings.
Considerate leaders are friendly, they show concern for sub-ordinates’ well-being and satisfaction.

This type of leadership is achieved by performance and is found to be effective. But it is not the best
way as situational factors are not taken into consideration.

Contingency Theory

According to this theory, propounded by Paul Hersey and Ken Blanchard, believes the effectiveness of
a leader is dependent on the action or readiness of his followers. By readiness we mean the extent to
which the followers are able and willing to achieve the goal.

This theory is explained on the basis of four cases.

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  Case 1 − In case one, we have high relationship behavior and low task behavior. The leader
motivates the followers and helps in decision making. Not much productivity can be seen in
this case but the sense of togetherness is high.
 Case 2 − In case two, we have high relationship behavior as well as high task behavior. In this
combination, the leader explains the decision and helps to build confidence of the employees.
In this case, productivity as well as loyalty towards the leader is more.
 Case 3 − In case three, we have a combination of low relationship behavior and low task
behavior. Here we see that the leader delegates the responsibility of decision making to the
followers. In this case, there is poor communication as well as poor production.
 Case 4 − Here we deal with a combination of low relationship behavior and high task behavior.
The leader gives specific direction and supervises the performance. This theory is effective
only if the leaders change their style irrespective of the readiness of the followers.

Conflict Management

Conflict can be defined as a mental struggle resulting from incompatible or opposing needs, drives,
wishes, and external or internal demands. Where there are people, there is conflict.

They are usually taken in a negative association. However, this is inaccurate as conflicts are necessary
for healthy relationships. It all depends on the approach we use to resolve the conflict.

Classification of Conflict

When we think of the different types of conflict, we might instantly think of the ones referred to in
literature, especially in fiction. They can be applied to real life, of course. However, in contemporary
times, types of conflict which are easily identifiable are classified into four different types −

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  Intrapersonal
 Intragroup
 Interpersonal
 Intergroup

Intrapersonal Conflict

Intrapersonal conflict takes place within an individual. The person experiences it in his own mind. Thus,
it is a type of conflict that is psychological involving the individual’s thoughts, values, principles and
emotions. Intrapersonal conflict may come in different forms, from the simple mundane ones like
deciding whether or not to go vegan for lunch to ones that can affect major decisions such as
choosing a career path.

However, this type of conflict can be quite difficult to handle, if you find it hard to decipher your inner
struggles. It results in restlessness and uneasiness, or can even cause depression. On such occasions,
it is advised to seek a way to let go of the anxiety by communicating with other people. Eventually,
when the person finds himself/herself out of the situation, he/she can become more empowered as a
person. Thus, the experience invokes a positive change which helps in personal growth.

Intragroup Conflict

Intragroup conflict occurs among individuals within a team. The incompatibilities and
misunderstandings between team members leads to intragroup conflict. It starts from interpersonal
disagreements like team members have different personalities which may lead to tension or
differences in views and ideas. Say for example, during a presentation, members of the team might
find the notions presented by the one presiding to be erroneous due to their differences in opinion.

Within a team, conflict can be helpful in coming up with decisions, which will eventually allow them to
achieve their objectives as a team. But, if the degree of conflict disrupts harmony among the members,
then some serious guidance from a different party will be needed for it to be settled.

Interpersonal Conflict

Interpersonal conflict means a conflict between two individuals. Basically, this occurs because of some
differences in people. We have varied personalities which usually lead to incompatible choices and
opinions. So, it is a natural occurrence which can eventually help in personal growth or developing our
relationships with others.

In addition, adjustments are necessary for managing this type of conflict. However, when
interpersonal conflict becomes too destructive, calling in a mediator helps so as to have the issue
resolved.

Intergroup Conflict

Intergroup conflict occurs when a misunderstanding arises among different teams within an

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organization. For example, the marketing department of an organization can come in conflict with the
customer support department. This is because of the varied sets of goals and interests of these
different groups. In addition to this, competition also contributes to intergroup conflict. There are
other factors which increase this type of conflict. Some of these factors may include a rivalry in
resources or the boundaries set by a group to others which forms their own identity as a team.

Conflict should not always be perceived as a problem rather at times it is a chance for growth and
can be an effective means of opening up among groups or individuals. However, when conflict begins
to suppress or disrupt productivity and gives way to more conflicts, then conflict management is
what is needed for problem resolution.

Conflict Resolution

Conflict resolution is a method by which two or more parties find a peaceful solution to a
disagreement among them. The disagreement can be personal, financial, political, or emotional. When
a disagreement arises, often the best course of action is negotiation to resolve the disagreement. We
all know that when people gather for a discussion, it is not necessary that what one thinks is right
the other thinks the same way, this difference in thinking or mentality leads to conflict.

"I’m doing my best at work and you expect me to do more! Why don’t you ask the other team
members?" This is the start of a conflict! Let us know about some of the conflict management
techniques.

Conflict Management Techniques

We get into a conflict when the person opposite to us has a different mindset. It is very common in a
workplace to get into differences of opinion. Sometimes there is a conflict between two or more
employees, sometimes employees have a conflict with their managers and so on. Now the question is,
how can we manage disagreements in ways that build personal and collegial relationships?

Here are five strategies from conflict management theory for managing stressful situations. None of
them is a "one-size-fits-all" answer. Which one is the best in a given situation depends on variety of
factors, including an appraisal of the levels of conflict.

 Collaborating − win/win
 Compromising − win some/lose some
 Accommodating − lose/win
 Competing − win/lose
 Avoiding − no winners/no losers

Collaborating

This technique follows the rule "I win, you win". Collaborating means working together by integrating
ideas set out by multiple people. The objective here is to find a creative solution acceptable to
everyone. It calls for a significant time commitment but is not appropriate for all conflicts.

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This technique is used in situations where −

 There is a high level of trust

 We don't want to take complete responsibility
 We want others to also have "ownership" of solutions
 People involved are willing to change their thinking
 We need to work through animosity and hard feelings

However, this process takes a lot of time and energy and some may take advantage of other people's
trust and openness.

Example − A businessman should work collaboratively with the manager to establish policies, but
collaborative decision-making regarding office supplies wastes time better spent on other activities.

Compromising

This technique follows the rule "You bend, I bend". Compromising means adjusting with each other’s
opinions and ideas, and thinking of a solution where some points of both the parties can be
entertained. Similarly, both the parties need to give up on some of their ideas and should agree with
the other.

This technique can be used in situations where −

 People of equal levels are equally committed to goals

 Time can be saved by reaching intermediate settlements on individual parts of complex
matters
 Goals are moderately important

Important values and long-term objectives can be derailed using this technique. This process may not
work if initial demands are high and mainly if there's no commitment to honor the compromise
solutions.

Example − Two friends had a fight and they decide to compromise with each other through mutual
understanding.

Accommodating

This technique follows the rule "I lose, you win". Accommodating means giving up of ideas and
thoughts so that the other party wins and the conflict ends. This technique can be used when −

 An issue is not that important to us as it is to the other person

 We realize we are wrong
 We are willing to let others learn by mistake
 We know we cannot win
 It is not the right time and we would prefer to simply build credit for the future

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  Harmony is extremely important
 What the parties have in common is a good deal more important than their differences

However, using this technique, one's own ideas don't get attention and credibility, and influence can
be lost.

Example − When we fight with someone we love we choose to let them win.

Competing

This technique follows the rule "I win, you lose". Competing means when there is a dispute a person or
a group is not willing to collaborate or adjust but it simply wants the opposite party to lose. This
technique can be used when −

 We know you are right.

 Time is short and a quick decision is to be made.
 A strong personality is trying to steamroll us and we don't want to be taken advantage of.
 We need to stand up for our rights.

This technique can further escalate conflict or losers may retaliate.

Example − When in a debate the party with more facts wins.

Avoiding

This technique follows the rule "No winners, no losers". Avoiding means the ideas suggested by both
the parties are rejected and a third person is involved who takes a decision without favoring any of
the parties. This technique can be used when −

 The conflict is small and relationships are at stake

 We are counting to ten to cool off
 More important issues are pressing and we feel we don't have time to deal with this particular
one
 We have no power and we see no chance of getting our concerns met
 We are too emotionally involved and others around us can solve the conflict more successfully

Organizational Behavior - Culture

Organizational culture can be defined as the group norms, values, beliefs and assumptions practiced in
an organization. It brings stability and control within the firm. The organization is more stable and its
objective can be understood more clearly.

Organizational culture helps the group members to resolve their differences, overcome the barriers
and also helps them in tackling risks.

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Elements of Organizational Culture

The two key elements seen in organizational culture are −

 Visible elements − These elements are seen by the outer world. Example, dress code, activities,
setup, etc.
 Invisible elements − These inner elements of the group cannot be seen by people outside the
group or firm. Example, values, norms, assumptions, etc. Now let us discuss some other
elements of organizational culture. They are −
 Stories − Stories regarding the history of the firm, or founder.
 Rituals − Precise practices an organization follows as a habit.
 Symbol − The logo or signature or the style statement of a company.
 Language − A common language that can be followed by all, like English.
 Practice − Discipline, daily routine or say the tight schedule everyone follows without any
failure.
 Values and Norms − The idea over which a company is based or the thought of the firm is
considered as its value and the condition to adopt them are called norms.
 Assumptions − It means we consider something to be true without any facts. Assumptions
can be used as the standard of working, means the employees prepare themselves to remain
above standard.

Different Types of Organizational Culture

The culture a firm follows can be further classified into different types. They are −

 Mechanistic and Organic culture

 Authoritarian and Participative culture
 Subculture and Dominant culture
 Strong and Weak culture
 Entrepreneurial and Market culture

Mechanistic and Organic Culture

Mechanistic culture is formed by formal rule and standard operating procedures. Everything needs to
be defined clearly to the employees like their task, responsibility and concerned authorities.
Communication process is carried according to the direction given by the organization.
Accountability is one of the key factors of mechanistic culture.

Organic culture is defined as the essence of social values in an organization. Thus there exists a high
degree of sociability with very few formal rules and regulations in the company. It has a systematic
hierarchy of authority that leads towards free flow of communication. Some key elements of organic
culture include authority, responsibility, accountability and direct flow towards the employee.

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Authoritarian and Participative Culture

Authoritarian culture means power of one. In this culture, power remains with the top level
management. All the decisions are made by the top management with no employee involvement in the
decision making as well as goal shaping process. The authority demands obedience from the employee
and warns them for punishment in case of mistake or irregularity. This type of culture is followed by
military organization.

In participative culture, employees actively participate in the decision making and goal shaping
process. As the name suggests, it believes in collaborative decision making. In this type of culture,
employees are perfectionist, active and professional. Along with group decision making, group
problem solving process is also seen here.

Subculture and Dominant Culture

In subculture, some members of the organization make and follow a culture but not all members. It is a
part of organizational culture, thus we can see many subcultures in an organization. Every
department in a company have their own culture that gets converted to a subculture. So, the
strength and adaptability of an organizational culture is dependent on the success of subculture.

In dominant culture, majority of subculture combine to become a dominant culture. The success of
dominant culture is dependent on the homogeneity of the subculture, that is, the mixture of different
cultures. At the same point of time, some cold war between a dominant culture and a minor culture
can also be seen.

Strong and Weak Culture

In a strong culture, the employees are loyal and have a feeling of belongingness towards the
organization. They are proud of their company as well as of the work they do and they slave towards
their goal with proper coordination and control. Perception and commitment are two aspects that
are seen within the employees. In this culture, there is less employee turnover and high productivity.

In a weak culture, the employees hardly praise their organization. There is no loyalty towards the
company. Thus, employee dissatisfaction and high labor turnover are two aspects of this culture.

Entrepreneurial and Market Culture

Entrepreneurial culture is a flexible and risk-taking culture. Here the employees show their
innovativeness in thinking and are experimental in practice. Individual initiations make the goal easy to
achieve. Employees are given freedom in their activity. The organization rewards the employees for
better performance.

Market culture is based on achievement of goal. It is a highly target-oriented and completely profit-
oriented culture. Here the relationship between the employees and the organization is to achieve the
goal. The social relation among the workers is not motivating.

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How to Create an Organizational Culture

An organizational culture is created with the combination of certain criteria that are mentioned
below −

 The founder of the organization may partly set a culture.

 The environment within which the organization standards may influence its activities to set a
culture.
 Sometimes interchange of culture in between different organizations create different new
cultures.
 The members of the organization may set a culture that is flexible to adapt.
 New cultures are also created in an organization due to demand of time and situation.

The culture of an organizational can change due to composition of workforce, merger and acquisition,
planned organizational change, and influence of other organizational culture.

Organizational Behavior - Change

Organizational change can be defined as the alteration in structure, technology or people in an

organization or behavior by an organization. Here we need to note that change in organizational
culture is different from change in an organization. A new method or style or new rule is implemented
here.

An organizational change occurs due to two major factors namely −

 External factor − External factors are those factors that are present outside the firm but
force the firm to change or implement a new law, rule etc. For example, all banks are bound to
follow the rules laid down by the RBI.
 Internal factor − Internal factors are those factors that are caused or introduced inside an
organization that forces a change. For example, no smoking in the workplace.

Kurt Lewin’s Force Field Analysis

Kurt Lewin, is a noted organizational theorist, who proposed the force field analysis for
organizational change. In this theory, he has prioritized two factors for change in an organization,
namely −

 Driving force − Driving force can be defined as an organizational force that makes a change
with respect to structure, people and technology. In short, it drives the organization from
one culture to another.
 Restoring force − Restoring force is the force which changes the culture from the existing
state to the old state. It indicates a backward motion while the driving force indicates a
forward motion.

Importance of Organizational Change

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There is a need of change in an organization because there is always a hope for further development,
and in order to survive in a competitive market, the organization needs to be updated with changes.
However, we have listed some reasons to explain why changes are deliberately made and carefully
planned by the organization before implementation.

 It improves the means to satisfy the economic requirements of people.

 It enhances the profitability of organization.
 It promotes employee satisfaction and well-being.

Planned Change

We can define planned change as any kind of alteration or modification which is done in advance and
differently for improvement.

The Need for Planned Change

Planned change takes places in an organization when there is a demand for change due to two types
of forces. These forces are grouped into internal sources and external sources.

Internal forces that lead to a planned change in an organization include obsolescence of production
and service, new market opportunities, new strategic direction, increasing workforce diversity, and
shift in socio-cultural values.

External forces that lead to a planned change in an organization include regulators, competitors,
market force, customers, and technology. Each of these forces can create pressing demand for
change in small or big, public or private, business or non-business organizations.

Process of Planned Change

Once the management decides to implement some changes in the organization, it needs to be done
carefully as it is a very sensitive issue. It is very important for all the employees to adapt to change.
According to Kurt Lewin, the planned organizational change is implemented in three different stages.
They are −

 Unfreezing − In this stage, the organization studies if the change is required or not, what and
why is the change necessary. Considering the entire situation, the organization decides for
appropriate change. Thus a plan and strategy is formulated as required.
 Changing − In this stage, the organization executes the plan and program for change. For this
purpose, proper precautions are taken in order to maintain cooperation and coordination
between the employees and management, avoiding miscommunication or disputes. Adequate
supervision and control is arranged as needed.
 Refreezing − This is the final stage, in order to bring organizational change. By way of
supervision, the organization tries to evaluate the effectiveness of change. Collecting all this
information, the management interprets whether to continue or replace change by some
other alternatives or to make further minor changes.

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Types of Planned Change

On the basis of a company’s requirement planned change is classified into three types. They are −

 Change in structure
 Change in technology
 Change in people

Change in Structure

We say that the planned change required is change in structure when development is required in these
following areas −

 Change in management
 New management
 Change in position or location
 Change in objective, rules, regulations etc.
 Launching new branches

Change in Technology

We say that the planned change required is change in technology when development is required in
these following areas −

 Need of office automation

 Installing new hardware and software
 Executing new working procedures
 New methods in production function
 Producing new products and devices
 New training, research and development program

Change in People

We say that the planned change required is change in people when development is required in these
following areas −

 New candidate requirement

 Promotion or demotion
 Transfer to other location
 Suspension or dismissal
 Deputation
 Training and development

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Organizational Behavior - Development

Organizational Development is a field of research, theory, as well as practice devoted to expanding

the knowledge and effectiveness of how people accomplish successful organizational change and
performance.

Organizational development is not an overnight transformation that can be done in an organization,

rather it is a gradual process that has to be executed systematically and by taking care of the
external environment.

Organization Development Techniques

Companies adopt organizational development technique to modify the behavior of people who are
resisting change. It is a program to bring a change in the values, norms, attitudes, perception, and
behavior of people and improve the quality of inter-personal relations. Some of the major
organizational development techniques are −

 Sensitivity technique
 Survey feedback
 Process consultation
 Team building
 Intergroup development

Now let us have a look at all these techniques.

Sensitivity Technique

Here sensitivity refers to the psychological aspect of human mind that has to be shaped to act as
expected by the group. In this technique, one’s own weakness is exposed and members understand
how others react towards them. Stress is on group dynamics and tackling inter-relationship disputes.

The idea is to improve the behavior of people in order to maintain smooth inter-personal relationship
without any power or influence. Members are motivated to have an open, heart-to-heart talk to
develop mature relationship. Sensitivity training borders on psychotherapy where the emotions as
well as body language are considered.

Survey Feedback

In this technique, the discrepancies among a group are weeded out using questionnaires, which
identify the difference in perception amongst the same working family, group or department. The
collected data is then tabulated and distributed for further deliberations. This acts as the basis for
further discussions and the discrepancies if any can be sorted out by open discussions with all
concerned, defending and opposing till a consensus is reached. This technique mainly focuses on ideas
and not on persons who put up those ideas.

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Process Consultation

In this technique, a firm may either seek the support of experts from within the firm or from outside.
The firm must check that process consultation is done through an external expert with the needed
support provided by the authorities from within the organization.

Team Building

In this technique, attempts are made at the group or inter-group level. The main objective is to
improve co-ordination thereby improving the performance as a group. This can be done by goal
setting, development of inter-personal relations, role analysis to identify roles and responsibilities
and team process analysis.

Intergroup Development

Inter group development technique attempts to change the perceptions of groups about themselves
or about other groups. This can be done by organizing independent group meeting, developing a list
consisting of perception of itself, views about other departments and how others view them, trying
to understand and resolve the actual cause of conflicts, or sub grouping the groups to remove
difference in perceptions and impressions that groups have about each other.

Job Satisfaction and why its importance

Many people use the term “job satisfaction” as nothing more than a mere word, but it can be
important to look deeper into what it means and how important it is.

There are so many jobs and career types out there. Some jobs might be stable with good pay, while
others might be more exciting. While some jobs are about helping people, others let you learn and
improve yourself. Nevertheless, what kind of job suits different types of people? In addition, how can
job satisfaction affect employee performance?

Finding the right role and company

If you’ve ever heard anyone complain about their job, it might be because they are lacking job
satisfaction. There is, of course, a difference between having a bad day and lacking satisfaction in
your job as a whole, but if you have a constant dislike for your job, you might need to find a role with
higher job satisfaction. Learning about Wellbeing and Resilience at Work with the University of Leeds
might help you achieve a good work-life balance.

Job satisfaction is not just about the role you work in – different companies or organisations have
different approaches that can make all the difference in whether or not their employees are satisfied.
To make it more complex, we all find job satisfaction in different aspects of employment. Take a look
at some of the drivers of satisfaction vs. dissatisfaction when inspiring and motivating individuals for
some examples.

If you’re just starting to think about your career choices, taking the Career Planning Essentials:

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Unlock Your Future by the Lulea University of Technology will help you unlock your possibilities.

What is job satisfaction?

Job satisfaction is based on how we feel about our job – the good career components that make us
feel valued or let us feel like we have a purpose, vs. the bad components, such as long hours or
unpleasant tasks, or feeling undervalued as an employee. Learn how to map out what makes up the
components of a fulfilling career for you in this open step.

Aims, goals and values

The amount of satisfaction someone gets from a job is entirely dependent on their aims, goals and
values. One person might find job satisfaction from having a simple job and getting a regular
paycheck to put towards their interests, while someone else might find this kind of job lacks
satisfaction and desire professional challenges.

It can be hard to figure out your personal, ideal career criteria, but we make it easy with this handy
guide. It is important, however, to try to figure out what you want from a career before you start
looking for new jobs.

Figuring out what kind of career you want to aim for and what kind of career would give you job
satisfaction can also help you decide what kind of subjects to study and training to undertake. If you
are not sure yet, don’t worry – check out how to Believe, Build, Become: How to Supercharge your
Career by Allbright to identify some of your main strengths and motivations.

Different job roles

It’s worth noting that different job roles within one field can still give vastly different types of job
satisfaction. For example, there are a huge number of professions within the medical field, ranging
from patient-facing roles such as nurses and doctors to administrative roles, researchers and even
couriers.

Working out which factors will increase the likelihood of job satisfaction for you can help you narrow
down your ideal job role. Rather than looking too broadly into the field you want to work in, classify
the job role you want and go from there.

On the other hand, if you work in HR, you may want to consider the importance of job satisfaction
when hiring. If an employee is satisfied in their role, they are likely to be more invested in their work
and stay longer with the company.

The 12 key ingredients for job satisfaction

If everyone’s definition of good job satisfaction is different, it means that the recipe to reach job

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satisfaction will change from person to person. There are, however, some key ingredients that often
go into a feeling of enjoying your job.

Figuring these out can be the key to helping increase employee motivation. Some of the most
commonly sought-after aspects of jobs are listed below.

1. Job security

Worrying about whether or not you will have a job in six months is stressful. Having good job security
makes people happier in their jobs, meaning it’s possible to work towards long-term goals and feel a
stronger sense of community and purpose within the company.

2. Working conditions

It should go without saying, that all employees feel better with good working conditions. If your
workplace is a pleasant space to spend time, where you receive constructive feedback without
harassment, you will feel more at ease in the job and, therefore, more satisfied.

Unscheduled overtime, unrealistic performance expectations and toxic work culture can all lead to
feelings of dissatisfaction and a desire to look for other work. Being careful to construct a healthy
work environment that emphasises the value of its employees, on the other hand, leads to good
working conditions and an increase in job satisfaction.

Learning about Professional Resilience: Building Skills to Thrive at Work with Deakin University will
help you advocate for yourself and contribute to a healthy work environment.

3. Pay and benefits

This is a particularly divisive aspect of work. Some people will take lower-paying jobs that provide
them with satisfaction by minimising pressure, allowing for a healthy work-life balance. For many
people, however, pay is a large contributor to job satisfaction. Of course, almost no one will turn
down higher pay if they like their job. Added benefits are important, too. Benefits can feel more
personal than a pay packet and usually add value beyond a paycheck to a role.

4. Communication

Clear and open communication in a workplace makes employees feel trusted and appreciated. It
dispels any worries they may have about their performance, increases transparency within the
company and encourages trust. Communication is incredibly important at work. If you’re looking to
improve your skills, the Communication and Interpersonal Skills at Work course by The University of
Leeds is a perfect place to start.

For a lot of employees, it’s important to be able to communicate openly with their managers when
they have concerns, complaints or are dealing with personal matters, without there being a risk of
punishment for doing so.

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5. Recognition

If you put a lot of effort into your job, you want that to be acknowledged. Recognition can include
bonuses — financial or otherwise — or can be as simple as being appreciated by fellow employees and
your boss. If people feel their efforts go unnoticed, they will likely stop working as hard in the future
or feel that their job is unrewarding.

6. Career development

While some people are happy to work one job indefinitely, others want options for career
development and progression. This can include having plans and routes for promotions, or in-built
ways to improve skills and study for new qualifications in line with their desired career progression.
Learning a little about the Essential Skills for Your Career Development with this course by the
University of Leeds will fast-track your progress.

7. Variety

Job variety can be vital to fostering satisfaction. While having employees focus on a single task can
help efficiency, it can be demoralising for people to have no flexibility or diversity in what they do.
Employees are usually more satisfied when they have the opportunity to participate in interesting
and challenging projects.

8. Acknowledging employee differences

If people feel that the employer sees and acknowledges their differences, they are likely to be more
satisfied. No one likes to be treated as just a number or a statistic – we would all much rather be
treated as individuals. This means both acknowledging the employee as a person beyond the
workplace, as well as seeing and respecting their strengths and experiences. Both of these
approaches help people feel more valued.

Understanding the importance of diversity and inclusion is key to developing a healthy workplace. Get
started with the ExpertTrack course, Develop Diversity, Equity, and Inclusion in the Creative Industries
to ensure you’re creating a safe, inclusive and supportive workplace.

9. Company values

It’s hard for people to feel committed to a cause that they don’t agree with. This is why having core
company values is so important. Working for a company that aligns with your values will increase
your desire to work for that company. If a company doesn’t match its core values with action, this
can create dissonance and make people feel less satisfied in their job.

This is why the idea of working for charities or in healthcare can be attractive. Many people want to
feel like they are making a difference in the world, but it can be more subtle than this. If companies
encourage charity fundraising or if they are committed to good environmental practices, for example,
employees are more likely to be satisfied with the company they work for because it aligns with their

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values.

10. Human contact

As mentioned before, many people want to work for companies or in roles where they help others.
This can be a major driving factor for many; helping someone else as part of a job instils a sense of
purpose. However, for other people, working with members of the public can be difficult for them. In
this case, they are likely to feel more satisfied working alone or as part of a small team.

11. Work-life balance

Most people work to afford their lifestyle, so it’s important to consider the work-life balance that
employees have. There has to be room in a job role for life’s big moments – such as starting a family.
Respecting this and providing support to encourage a healthy work-life balance leads to employees
feeling valued.

12. Respect for illness

Most people will hopefully only become ill once or twice a year, but sometimes people are ill for longer,
or more often. This is especially true after the COVID-19 pandemic. It’s important for employees to
feel safe to recover from illness, without worrying that they might lose their jobs or feel pressured
into working when they are unwell.

How job satisfaction affects employee performance

If employees are happy and have high job satisfaction, they are more likely to work well in their jobs
and stay longer with a company. In fact, business units where employees score in the top half for
employee engagement have a 50% higher success rate on productivity outcomes, on average.

The benefits of high job satisfaction

If someone feels happy, relaxed, valued and motivated, their performance increases. Let’s look at the
benefits of good job satisfaction within a company.

Low turnover

If your employees are happy and feel satisfied in their role, they are less likely to search for
employment elsewhere. This saves time and money spent hiring and training new staff, especially in
highly technical fields where the onboarding and training periods can take months.

It also cuts costs for HR departments massively. As a bonus, if people get to consistently work with
the same co-workers for years, they can build good relationships, which also increases office morale
and job satisfaction.

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Loyalty and word-of-mouth

Company profile and branding are vital to finding and retaining top talent. If you have satisfied, happy
workers, they are more likely to stay loyal to the company. It also increases the chances that they
will speak highly of their workplace to friends and family. This word-of-mouth is invaluable in building
a positive company reputation, which can have an impact beyond hiring.

Increased profits

Some employees may turn down offers of higher salaries elsewhere, to stay in a company where they
have great job satisfaction. Mostly, however, people will work harder and do better if they feel
satisfied in their job. This can feed directly into your productivity and profits, by building better
working relationships with clients, for example.

Better collaboration

If the work culture is healthy and balanced, employees as a whole are more likely to be happy at their
workplace and more willing to collaborate. On the other hand, if employees are feeling unhappy, it can
lower productivity across the board and create a difficult working culture. A company works or fails
as a whole; if employees are unhappy, it will have a knock-on effect.

The great part is that once you manage to define job satisfaction for yourself, or for the people you
work with, you can increase job engagement and boost productivity massively. We outline the four
dimensions of creating employee engagement in our open step, How can job engagement be increased?

Of course, as an employee, there are huge benefits to job satisfaction. The increase in productivity
comes from feeling more valued, having a better work-home life balance and feeling supported. Aiming
for high job satisfaction should be a collaborative effort between companies and employees,
benefiting both parties.

Which careers have the highest job satisfaction?

Now that we’ve covered the benefits of job satisfaction – for both the company and the employee –
how do we go about finding roles with the highest job satisfaction? Is it as simple as picking a job
from a list?

Sadly, the answer is no. Remember: everyone’s idea of a dream job is different and everyone places
importance on different factors. The fact is, we all have a different recipe for job satisfaction.

If you’re worried about taking on a job in our increasingly digital world, our Skills to Succeed in the
Digital Workplace course by the University of Leeds will help you compete with others and find
satisfaction.

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4 of the most highly-rated careers

That being said, some jobs consistently rank highly on surveys for job satisfaction. If you’ve worked in
one of these jobs before but did not find it satisfying, you might still want to consider it. It could be
that the company you worked for scored poorly for job satisfaction, and working for another
company might give you the satisfaction you are looking for.

Nurse

Nursing is a stable and future-proof career, and in a lot of nursing roles, job satisfaction is rated at
94 to 98%. While this job role might not be for everyone, a lot of people find huge satisfaction when
working as a nurse.

Helping people alongside the opportunity to work in a fast-paced and exciting field makes this a
rewarding job. FutureLearn has several nursing courses to get you started in this field, such as our
introduction to nursing course, and courses to explore the role of nursing.

Software developer

Many HR experts say that software developers are going to be in high demand for the foreseeable
future. This career can be very lucrative, especially if you study rare programming languages.

Additionally, many software developers can work from home. Remote work can help you find the right
work-life balance, especially if you have children or pets. Of course, there’s a lot to learn, from
Software Development Fundamentals to specialised skills in languages such as Python or JavaScript,
but much of this can be learnt through online courses.

Construction worker

Construction is a great career for people who like working on projects that keep them on their feet.
Many find construction to be a well-paid field, depending on their specialisations or expertise, and
there is a huge satisfaction to be had from making something from scratch while getting paid well.

There are plenty of construction courses to help you get into the field, from stepping into
construction to learning about sustainable construction and development.

Psychologist

Psychology is a broad field, and it involves everything from helping people overcome or live with
mental health conditions, to conducting experiments and carrying out research. Within this, there are
numerous specialisations – almost as many as there are mental health conditions.

This can be an incredibly rewarding field for many. It’s also a highly skilled field, with the potential to
progress into senior clinical psychology or research-based practice. However, it does usually take a
doctoral degree to become a psychologist.

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