20433176 Organisational Behaviour

8/3/2019 20433176 Organisational Behaviour

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Organisational Behaviour


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Organisational Behaviour is a field of study that

investigates the impact that individuals, groups,

and structure have on behaviour withinorganisation for the purpose of applying such

knowledge toward improving an organisations

effectiveness.

Definition


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OB is a field of study

Means a distinct area of expertise with a common

body of knowledge

Organisational Behaviour is a field of study that investigates the impact that individuals, groups,

and structure have on behaviour within organisation for the purpose of applying such knowledge

toward improving an organisations effectiveness.

What does it study?It studies three determinants of behaviour in organisation

Individuals, Groups, Structure

Applying such knowledge

OB applies knowledge about individuals, groups and the

effect of structure on behaviour in order to make

organisation work more effectively.


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Therefore OB is concerned with the study of what people do in an

organisation and how the behaviour affects the performance of

the organisation.

It is concerned with employment related situations, and

emphasises behaviour as related to concerns such as jobs, work,

absenteeism, employment turnover (attrition), productivity,performance and management.


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CONTRIBUTING DISCIPLINES TO THE FIELD OF OB

PsychologyThe science that seeks to measure, explain, andsometimes change the behaviour of human and other animals.

SociologyThe study of people in relation to their fellow human

beings.

Social psychologyAn area with psychology that blends

concepts from psychology and sociology and that focuses on the

influence of people on one another.

AnthropologyThe study of societies to learn about humanbeings and their activities.

Political sciencethe study of the behaviour of individual and

groups within a political environment.


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CONTRIBUTING DISCIPLINES TO THE FIELD OF OB

Behavioural Science Contribution Unit of

analysis

Output

Psychology

Sociology

Social psychology

Anthropology

Political science

Learning

Motivation

Personality

Emotions

Perception

Training

Leadership

Job satisfaction

Decision making

Performance appraisal

Attitude

Selection

Work design

Stress

Group dynamics

Work teams

Communication

Power

Conflict

Intergroup behaviour

Formal organisational theory

Organisational technology

Organisational change

Organisational culture

Behavioural change

Attitude change

Communication

Group processes

Group decisionmaking

Comparative values & attitudes

Cross culture analysis

Organisational culture &environment

Conflict

Intraorganisational politics

Power

Individual

Group

Organisationsystem

Study of

O B


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CHALLENGES AND OPPORTUNITIES FOR OB

1. Responding to Globalisation2. Managing Workforce Diversity

3. Improving Quality and Productivity

4. Responding to Labour Shortage

5. Improving Customer Service6. Improving People Skill

7. Empowering People

8. Coping with Temporariness

9. Stimulating Innovation and Change

10.Helping Employees Balance Work/Life Conflicts

11.Improving Ethical Behaviour


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What is Organisational Behaviour ?

Every individual has 24 hours a day. Theworldwide research has shown that an averageperson spends about 6 to 8 hours a day in sleep

more than 8 hours are spent in working andtraveling. One gets left with only 8 hours forpersonal and private life with family and friends.

It means we spend 33% of life in sleeping, 50%

in working and are left with only 17% for personalpleasures.


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Therefore subject of Organisational

Behaviour deals with that part of life

which we spend in working which is

also called On the joblife.

Our off the job life is interrelated

and interdependent on on the job lifeand vice versa.


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Models of organisational behaviour

1. Autocratic Model

2. The custodial model

3. The supportive model

4. The collegial model5. The SOBC (Stimulus, organism, behaviour,

consequences) model


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The model is based on the assumption that authority is

central to results. People must accept the authority of their

superiors and obey their instructions. Obedience is the main

employee orientation. Obedience on the part of subordinates

can be for respect for the knowledge and the authority of

the superiors or fear of punishment. Job security, basic

needs of a person, survival and growth makes the

subordinates to obey.

The Autocratic Model


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The Custodial Model

This assumes that the organisational behavior depends upon

the economic resources. Employee work for money and

desires job security. While money is the main managerial

orientation, job security is the main employee orientation.

For the basic need of job security employee offer a passive

co-operation to the superiors. The management knows

better welfare of the people & takes the role of custodian

and guardian of the people and their wealth.


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The Supportive Model

The model assumes that management is leadership. The

management plays the role of a supportive leadership. The

employees are performance oriented & need support for

their initiative and drive for performance. This encouragesparticipation by the subordinates. The basic need of the

employee is the self esteem and recognition. The

employees need support, status and recognition for their

performance.


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The Collegial Model

This model is based on the assumption that generally the

employees are self disciplined and they exhibit a

responsible behaviour. The main need of the employee is

self actualisaton. If this need is satisfied, they showenthusiastic performance. Therefore they must be

encouraged for the participation in decision making. Team

building on the part of management is must as the team

work is main managerial orientation.


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This model is based on the assumption that every behaviour is caused.

What we see are the consequences of the behaviour shown by organism

due to stimulus. This model can be diagrammatically shown as follows:Stimulus > Organism > Behaviour > Consequences

(cause) (individual) (Actions) (Results)

The Stimulus is the cause that may be overt or covert, physical, social,

psychological, technological, environmental etc.The Organism can be individual or a group. They have cognitive

mediators with physiological existence.

The Consequences are expressed as the results that may be overt or

covert. Positive or negative and can have effects on environmental

dynamics and applications.

SOBC model is based on the very practical philosophy of human

behaviour that: every behaviour is caused & follows the Cause-Effect

relationship.

The SOBC Model


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PERCEPTION


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Perception is a process by whichindividuals organise and interpret their

sensory impressions in order to give

meaning to their environment.

- Stephen Robins


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Factors

Influencing

Perception

Factors in the situation

Time

Work SettingSocial Setting

Factors in the Perceiver

Attitudes

Motives

InterestsExperience

Expectations

Factors in the target

Novelty

Motion

SoundsSize

Background

Proximity

Similarity

PERCEPTION


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What do you see?What do you see?

What do you see?


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There's a face... and the word liar


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Is the left center circle bigger?


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No, they're both the same size


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It's a spiral, right?


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No, these are a bunch of

independent circles


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What do you see ?


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A couple or a skull?


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Count the black dots!


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0 (ZERO)


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What do you see?


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Do you see the three faces?


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Process of Perception

1. Confrontation of stimulus

The Individual comes face to face with another

Individual/group/object/situation/problem


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2. Registration

The individual registers the stimulus and its gravity


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3. Interpretation


The individual tries to understand the real meaning ofthe situation.


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4. Feedback

The individual evaluates the strength and weaknessand gives a quick feedback to the sensory motor.


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5. Reaction

The individual gives the response in terms of reactionthat can be positive, negative or neutral, depending

upon the mutual interaction between the stimulus and

the individual.


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APPLICATION OF PERCEPTION

ATTRIBUTION THEORY

The theory is proposed to develop explanations of the

ways in which we judge people differently, depending on

what meaning we attribute to a given behaviour. The

theory suggests that when an individual observes anotherindividuals behaviour and they observer attempts to

determine whether the behaviour is caused internally or

externally.

The determination, however depends upon three factors1. Distinctiveness

2. Consensus

3. Consistency


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PERSONALITY


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Definitions

Personality is the dynamic organisation within an

individual of those psychological systems that determine

his unique adjustments to his environment.

- Gordon Allport

Personality is the sum total ways in which an individual

reacts to and interacts with others.

- Stephen Robins


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PERSONALITY DETERMINANTS

Individual Personality is the result ofheredity

and environmentand the third factor is

recognised to be situation.


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HEREDITY

Heredity refers to those factors that were determined at

conception. Physical stature, facial attractiveness,

temperament, muscle composition and reflexes, energy

level, and biological rhythms are characteristics that are

generally considered to be either completely or substantiallywho the parents are; that is, by their biological,

physiological, and inherent makeup.

The heredity approach argues that the ultimate explanationof an individuals personality is the molecular structure of

the genes.


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ENVIRONMENT

Environment factor like culture in which one is

raised, early conditioning; norms among

family, friends, social group and other

influences that one experiences, exert pressureon personality of an individual.


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SITUTATION

Situation influences the effect of heredity andenvironment on personality. A individuals

personality, although generally stable and

consistent, does change in different situations.

The different demands of different situations

call for different aspects ones personality.


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LOCUS OF CONTROL

Locus of control is the degree to which

people believe they are masters of their own

fateSome people believe that they are masters of their own fate.

Other people see themselves as pawns of fate, believing that

what happens to them in their lives is due to luck or chance.


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INTERNALS

Individual who believes that they controlwhat happens to them.

EXTERNALS

Individuals who believe that what happens to

them is controlled by outside forces such as

luck or chance.


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TYPE A AND TYPE B PERSONALITY


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TYPE A PERSONALITY

A person with a Type A personality is aggressivelyinvolved in chronic, incessant struggle to achieve

more and more in less and less time, and if required

to do so, against the opposing efforts of other

things or other persons.


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Type As

1. Are always moving, walking, and eating rapidly

2. Feels impatient with the rate at which most event take place

3. Strive to think or to do two or more things at once

4. Cannot cope with leisure time

5. Are obsessed with numbers, measuring their success


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TYPE B PERSONALITY

Type B is exactly opposite to type A are rarely

harried by the desire to obtain a wildly increasing

number of things or participate in an endless

growing series of events in an ever decreasingamount of time.


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Type Bs

1. Never suffer from a sense of time urgency with the

accompanying impatience

2. Feel no need to display or discuss their achievements

3. Play for fun and relaxation and not exhibit superiority4. Can relax without guilt


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PERSONALITY TRAITS

Personality are the enduring characteristics that describe an

individual behavior.

A study identified 17,953 individual traits.

Another researcher isolated 172 traits and reduced set of

traits that would identify underlying patterns and thereby16 personality factors (called the source orprimary traits)

were identified

These 16 traits are to be found generally steady and

constant source of behavior.

Personality traits


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Personality traits

Sixteen Primary Traits

1 Reserved Vs Outgoing

2 Less intelligent Vs More intelligent3 Affected by feelings Vs Emotionally stable

4 Submissive Vs Dominant

5 Serious Vs Happy-go-lucky

6 Expedient Vs Conscientious

7 Timid Vs Venturesome8 Tough minded Vs Sensitive

9 Trusting Vs Suspicious

10 Practical Vs Imaginative

11 Forthright Vs Shrewd

12 Self-assured Vs Apprehensive13 Conservative Vs Experimenting

14 Group dependent Vs Self-sufficient

15 Uncontrolled Vs Controlled

16 Relaxed Vs Tensed


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ATTITUDES


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ATTITUDES

AttitudesEvaluative statements or judgments concerning

objects, people or events.

Attitude may be favourable or unfavourableconcerningobjects or events. Attitudes are not the same as values, but the

two are interrelated.


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COMPONENTS OF AN ATTITUDE

Attitude has three components and they are

1. Cognitive Component

2. Affective Component

3. Behavioural Component


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COMPONENTS OF AN ATTITUDE

Cognitive component of an attitude

It is the opinion or belief segment of an attitude

Affective component of an attitude

It is the emotional or feeling segment of an attitude

Behavioural component of an attitude

An intention to behave in a certain way toward someone or something


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TYPES OF ATTITUDES

There may be thousands of attitudes in a person, OB

focuses attention on a very limited number of work

related attitudes. These work related attitudes are

positive or negative and shows how employee feelabout their job. Most of the research in OB has been

concerned with three attitudes namely:

1. Job Satisfaction2. Job Involvement

3. Organisational Commitment


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JOB SATISFACTION

The term job satisfaction refers to anindividuals general attitude toward his or her

job. An individual with high level of job

satisfaction holds positive attitudes about thejob, while a dissatisfied individual may hold

negative attitudes about the job.

Low job satisfaction can result in high attrition

rate, absenteeism, and poor mental health.


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JOB INVOLVEMENT

Job involvement measures the degree towhich a person identifies psychologically

with his or her job and considers his or

her perceived performance levelimportant to self worth.

High level of job involvement reducesattrition and absenteeism.

ORGANISATIONAL COMMITTMENT


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ORGANISATIONAL COMMITTMENT

Organisation commitment is defined as degree to

which an employee identifies with a particular

organisation and its objectives and wishes to maintain

membership in the organisation.

An employee may be dissatisfied with his or her

present job and consider it a temporary condition, yet

not be dissatisfied with the organisation as a whole.

But when dissatisfaction spreads to the organisationitself, individuals are more likely to resign.


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EFFECTS OF JOB SATISFACTION

The job satisfaction has an effect on the

performance of an individual however in

the organisation it tends to center on itseffect on productivity, absenteeism and

turnover.


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Satisfaction and productivity

Happy workers are productive workers is a myth, the concept

productive workers are likely to be happy workers may holdgood.

Satisfaction and absenteeism

There is a negative relationship between satisfaction andabsenteeism. Absenteeism increases with decrease in job

satisfaction

Satisfaction and turnoverSatisfaction is also negatively related to turnover , factors like

alternative job opportunities, length of tenure, labour market

condition will also effect the turnover.


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EXPRESSION OF DISSATISFACTION

Employee dissatisfaction can be expressed in various ways, however thefollowing four responses shall indicate different responses to employee

dissatisfaction.

Exit : Dissatisfaction expressed through behaviour directed toward leaving

the organisation.

Voice : Dissatisfaction expressed through active and constructive attempts

to improve conditions, may include union activity.

Loyalty : Passively but optimistically waiting for the condition to improve.

It is trusting organisation and management to do the right thing.

Neglect : Dissatisfaction expressed through allowing condition to worsen,

it includes chronic absenteeism, reduced effort and increased error rate.


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JOB SATISFACTION AND CUSTOMER SATISFACTION

Satisfied employees increase customer satisfaction and loyalty.

Satisfied employee are more likely friendly and responsive

which customers appreciate. Satisfied employees are less prone

to turnover, customers are more likely to encounter familiar faces

and receive experienced service.


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VALUES

ValuesBasic convictions that a specific mode of conduct or end

state of existence is personally or socially preferable to an

opposite or converse mode of conduct or end state of existence.

Value SystemA hierarchy based on ranking of an individuals

values in terms of their intensity.


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TYPES OF VALUES

Value typologies can be developed in two approaches

as per survey conducted by Milton Rokeach, the

survey is popularly known as Rokeach Value Survey

(RVS). RVS consists of two sets of values

Terminal values and

Instrumental values


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Terminal valuesDesirable end-states of existence; thegoals that a person would like to achieve during his or

her lifetime.

TYPES OF VALUES

Instrumental valuesPreferable modes of behaviour ormeans of achieving ones terminal values.

Terminal and Instrumental Values in Rokeach Value Survey


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Terminal and Instrumental Values in Rokeach Value Survey

Terminal ValuesA comfortable life (a prosperous life)

An exciting life ( a stimulating, active life)A sense of accomplishment ( lasting contribution)

A world of peace ( free of war and conflict)

A world of beauty (beauty of nature and the arts)

Equality (brotherhood, equal opportunity for all)

Family security (taking care of loved ones)

Freedom (independence, free choice)Happiness (contentedness)

Inner harmony (freedom from inner conflict)

Mature love (sexual and spiritual intimacy)

National security (protection from attack)

Pleasure (an enjoyable, leisurely life)

Salvation (saved, eternal life)Self respect (self-esteem)

Social recognition (respect, admiration)

True friendship (close companionship)

Wisdom (a mature understanding of life)

Instrumental ValuesAmbitious (hardworking, aspiring)

Broad minded (open minded)Capable (competent)

Cheerful (lighthearted, joyful)

Clean (neat, tidy)

Courageous (standing up for your beliefs)

Forgiving (willing to pardon others)

Helpful (working for the welfare of others)Honest (sincere, truthful)

Imaginative (daring, creative)

Independent (self-reliant, self-sufficient)

Intellectual (intelligent, reflective)

Logical (consistent, rational)

Loving (affectionate, tender)Obedient (dutiful, respectful)

Polite (courteous, well-mannered)

Responsible (dependable, reliable)

Self-controlled (restrained, self-discipline)


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MOTIVATION


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IT IS THE NEED OR DRIVE

WITHIN AN INDIVIDUAL THATDRIVES HIM OR HER TOWARD

GOAL ORIENTED ACTION. THE

EXTENT OF DRIVE DEPENDS

ON THE PRESCRIBED LEVEL

OF SATISFACTION THAT CANBE ACHIEVED BY THE GOAL


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-Definition-


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MOTIVATION IS A

PREDISPOSITION TO ACT

IN A SPECIFIED GOALDIRECTED MANNER

-Hellriegel and Slocum


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MOTIVATION REFERS TO

GOAL DIRECTED

BEHAVIOUR-Chung


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A process of stimulatingthe self or subordinates toget into the desired courseof action-Michael Julius


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DIFFERENCE BETWEEN

MOTIVATION AND SATISFACTION

MOTIVATION REFERS TO THE DRIVE AND EFFORT TO

SATISFY A WANT OR GOAL.

SATISFACTION REFERS TO THE CONTENTMENTEXPERIENCED WHEN WANT IS SATISFIED. IN OTHER

WORDS, MOTIVATION IMPLIES A DRIVE TOWARD AN

OUTCOME, AND SATISFACTION IS THE OUTCOME

ALREADY EXPERIENCED.


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Employees' performance is, of course, partially

determined by the opportunities given them todemonstrate their abilities. If employees are never given

opportunities to utilize all of their skills, then the

employer may never have the benefit of their total

performance. Work performance is also contingent upon

employee abilities. If employees lack the learned skills

or innate talents to do a particular job, then performance

will be less than optimal. A third dimension ofperformance is motivation.


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Mechanism of Motivation

Need Drive Barrier GoalDeprivation Direction Overt/Covert Achievement

Frustration


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NEEDS

An internal state of

disequilibrium or deficiency

which has the capacity to

energise or trigger a

behavioural response

M ti ti d F t ti


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Motivation and Frustration

A person get frustrated because of unfulfilled need. Whenever

a person is frustrated, the defence mechanism gets triggeredinto action. Frustration can be manifested into one or more of

following behaviour:

Aggression: A reaction to a situation where ones motive is

blocked, causing oneself to turn against the barrier in terms ofverbal or physical injury.

Withdrawal: Leaving the field physically and psychologically.

Fixation: An unreasonable stubbornness, repeated behaviour,

non adjusting.

Compromise: Adjusting with the situation leading to give and

take attitude.


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MOTIVATION THEORIES

MASLOWS HIERARCHY OF NEEDS


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MASLOWS HIERARCHY OF NEEDS

Self-Actuali-zationNeeds

Esteem Needs

BelongingnessNeeds

Physiological Needs

Achievement Challenging job

Status Job title

Friendship Friends in WorkGroup

Stability Pension Plan

Sustenance

Security Needs

Base Salary


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Douglas Mcgregors Theory

Douglas Mcgregor, a professor of industrial

Administration at MIT (USA) theorized that

every person has certain basic assumptions about

other peoples attitude towards work andorganisation the assumption is labeled as Theory

X and Theory Y.

Theory X Assumptions


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Theory X Assumptions

It is the traditional assumptions about the nature of people

and states that-

1. Average human being have an inherent dislike of work

and will avoid it if they can.

2. Because of this human characteristic of disliking work,

most people must be coerced, controlled, directed and

threatened with punishment to get them to put forth

adequate effort toward the achievement of organisational

objectives.

3. Average human beings prefer to be directed, wish to

avoid responsibility, have relatively little ambition, andwant security above all.

Theory Y Assumptions


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Theory Y Assumptions

The assumption under this are _

1. The expenditure of physical effort and mental effort in

work is as natural as play or rest.

2. External control and threat of punishment are not the only

means for producing effort toward organisationalobjectives. People will exercise self direction and self

control in the service of objectives to which they are

committed.

3. The degree of commitment to objectives is in proportion to

the size of the rewards associated with their achievement.4. Average human beings learn, under proper conditions, not

only to accept responsibility but also to seek it.


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Herzbergs 2-factor Theory

Fredrick Herzberg (1959) extended the work of Maslow anddeveloped a specific content theory of work motivation. He

conducted a widely reported study of about 200 accountants

and engineers from eleven industries in the Pittsburgh area.

He used the critical incident method of obtaining data foranalysis. He asked them two questions:

a) When did you feel particularly good about your job and

what turned you on?

b) When did you feel exceptionally bad about your job and

what turned you off?

CONTARSTING VIEW OF


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CONTARSTING VIEW OF

SATISFACTION AND DISSATISFACTION

TRADITIONAL VIEW

Satisfaction Dissatisfaction

Satisfaction No Satisfaction

No Dissatisfaction Dissatisfaction

HERZBERGs VIEW

Motivators

Hygiene Factor


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Herzbergs theory was based on a two-factor

hypothesis that is factors leading to job satisfaction

And factors leading to no job dissatisfaction. They

were classified in two categories:

1) Motivational factors

2) Hygiene or maintenance factors


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Motivational factors

Recognition

Advancement

Responsibility Possibility of growth

Achievement

Work itself


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Motivational factors are directly related to the job

itself. Present of such factor create a highly

motivating situation, but their absence does not cause

job dissatisfaction. These factors are contentoriented.


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Hygiene or Maintenance factors

Company policy and administration Technical supervision

Interpersonal relations with subordinates

Salary

Job security Personal life

Working conditions

Status

Interpersonal relations with supervisors

Interpersonal relations with peers/colleagues


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Maintenance factors are context oriented theirpresence does not significantly motivate the

person. The presence of such factors prevents

dissatisfaction and maintains a certain level of

motivation but any reduction in the availabilities

of these factors is likely to affect motivation and

bring down the level of performance. According to

Herzberg, Hygiene factors can dissatisfy by their

absence but they cannot satisfy by their presence.

i i i


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Motivational Factors Hygiene factors

When present lead to

satisfaction and motivation.

When present, help in

preventing dissatisfaction but

do not increase satisfaction ormotivation.

When absent prevents both

satisfaction and motivation.

When absent increase

dissatisfaction with the job.

Motivational vs. Hygiene Factors

Status goes down with Hygiene factors;

Recognition goes up with Motivators


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McClellands theory of Needs

Developed by David McClelland and his

associates. The theory focuses on three needs:

1. Achievement2. Power

3. Affiliation


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Need for Achievement (nAch): The drive to excel, to

achieve in relation to a set of standards.

Need for Power (nPow): The need to make others

behave in a way that they would not have behaved

otherwise.

Need for Affiliation (nAff): The desire for friendly and

close interpersonal relationship

E R G Theory


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E R G Theory

Clayton Alderfer of Yale University has reworked

Maslows need hierarchy.

He devised three groups of core needs:

1. Existence2. Relatedness

3. Growth

Maslows Need Hierarchy and Alderfers ERG Theory


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Physiological

Security

Social

Esteem

Self

Actu-

alisation

Existence

Relatedness

Growth

Maslows theory follows a rigid, steplike progression. ERG theory

does not assume that there exists a rigid hierarchy. It demonstrates

that (i) more than one need may be operative at the same time, and(ii) if the gratification of a higher level need is suppressed, the

desire to satisfy lower level need increases. In ERG all the need

categories could be operating at the same time

Maslow ERG

Vrooms Expectancy Theory


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Vroom s Expectancy Theory

The theory essentially emphasizes that motivation is increased if

the individual perceives that1. His effort will result in successful performance

2. Successful performance leads to desired rewards

The theory argues that the strength of a tendency to act in a

certain way depends on the strength of an expectation that the

act will be followed by a given outcome and on the

attractiveness of that outcome to the individual.



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Individual

Effort

Individual

Performance

Organizational

Rewards

Personal

Goals

1 2 3

1. Effort-performance relationship: Probability perceived by the

individual that exerting a given amount of effort will lead to

performance.2. Performance-reward relationship: The degree to which the

individual believes that performing at a particular level will lead to

the attainment of a desired outcome.

3. Rewards-personal goal relationship: The degree to which

organizational reward satisfy an individuals personal goals or needs

and the attractiveness of those potential rewards for individual.


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Vroom explains that motivation is a product of how much onewants something and ones estimate of the probability that a

certain action will lead to it.

This relationship is given in the formula:-

V X E = M

V = Valence is strength of desire for something

E = Expectancy is probability getting it with a certain action

M = Motivation is strength of drive towards an action



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Range of Valence and Expectancy

Valance

-1 0 +1

Expectancy

0 +1

EQUITY THEORY


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James Stacy Adams (1965)proposed the equity theory which

was based on his belief that an

individuals motivation is

influenced by his perception of how

equitably he is treated at work.

EQUITY THEORY


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To express his ideas, Adam used following formula:

Persons Outcomes

Equity exists when-

Persons InputsOthers outcomes

Others inputs

Negative Inequity exists when-Persons Outcomes

Persons InputsOthers outcomes

Others inputs

EQUITY THEORY


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In order to restore equity, individuals can make one of the

six choices:1. Change their inputs (reduce efforts)

2. Change their outcomes (earning more on a piece rate

basis producing higher quantity)

3. Distort perception of self (changing self perception)4. Distort perception of others (changing thoughts about

others)

5. Choose a different referent (changing person with whom

comparison is made)

6. Leave the field (quit the job)

Value of


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rewards

Perceived

Effort-reward

probability

Effort

Performance

accomplishment

Ability to

do a specific

task

Perception

Of taskrequired

Extrinsic

rewards

Perceived

equitable

rewards

Satisfaction

Intrinsic

rewards

PORTER & LAWLER MOTIVATIONAL MODEL


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MORALE

MORALE


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Morale indicates happiness of the employees within the

organizational environment.

It is essentially akin to job satisfaction and represents the

integration of an individual with the team and the

organization itself.Higher the morale higher is the productivity.

Relationship between morale and productivity need not

always be direct. With high morale there could be low

productivity.

High


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Low

Low HighProductivity

Morale

A B

C

Line A - High morale low productivity

Line BHigh morale high productivity

Line CHigh productivity low morale


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LEADERSHIP


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-Definition-


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The Leader is a part of the group

distinct from the group

andcan influence the behaviour of the

group


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Leadership is defined as influence, that

is, the art or process of influencing

people so that they will strive Willingly

and enthusiastically towards the

achievement of group goals. Leading

involves influencing and interacting with

people to attain goals


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The leadership can be defined as

the act of making an impact on other

in a desired direction


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The ability of a person to persuadeothers to seek achievement of the group

goals efficiently & effectively '.(Keith Davis)


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Leaders envision the future; theyInspire organization members and

chart the course of the organization.

Leaders must instill values whetherthey are concern for quality, honesty

and calculated risk taking or concern

for employees and customers.

LEADERSHIP STYLE


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Psychologists, sociologists, political scientistsand certainly, management scientists have

become increasingly interested in

leadership. There have been spurts of

research on this topic from time to time. The

more we research leadership, the more

complexity comes to light. Leadership is

broader than management. Managers caneffectively run organizations but only

leaders can build them.

Essential of Leadership


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An organisation requires management to achieve the

organisational goal including the economic performance

A manager must be a good leader since he has to get

work done by his people.

Leadership in the manager plays a very important role.




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Some of the major factors of importance of leadership in

business organisations may be summarised as follows :

It helps to build of the groupIt helps to create confidence among the members

It motivates the group members

It inculcates discipline

It helps to build work teams

It helps to improve the organisational efficiency

Theories of Leadership


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Various theories of leadership have been developed by

different management experts.

The major theories of leadership are as follows :

Traits TheoryBehavioural Theories

Contingency Theories

Leader-Member Exchange Theory

Managerial Grid

The Traits Theory(Ordway Tead & Chester Bernard)


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(Ordway Tead & Chester Bernard)

In the early stages of organisational development, it wasbelieved that 'Leaders are born' This theory is based on the

assumption that leadership depends upon the traits of the

successful leaders. Some of the major features of this approach

are as follows :

It is a traditional theory

It is based on the belief that 'Leaders are born & not made'

It is based on the assumption that physiological &

psychological traits of the leaders determine the success orfailure of the leadership

The Traits Theory


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Strengths

It banks upon thepersonal qualities of the

leader

It draws on the influence

of the charisma of the leader

There is an emotional

bond between the leader &

the followers.

There is loyalty by the

followersInter-personal

relationships among the

members of the group are

better

WeaknessesThe traits are not exhaustive oruniversal

There is a lack of scope for

development of the followers

There is a possibility ofexploitation of the followers

Some traits of effective leadership


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Knowledge of the job/task

Intelligence.

Self-respect

Self-confidence.

CourageLogical thinking

Rational judgment

Decision-making

Communication ability

Creativity

Initiative & drive

Problem-solving ability

High morale & motivation

Positive attitudeAuthority & Responsibility

Flexibility in approach

Conviction & Commitment

Impressive Personality


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THE FOUR LEADERSHIP STYLES

The four leadership style can be stated as

Directive

SupportiveConsulting

Delegating


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A combination of high and low

regulating and nurturing behaviour

will give four quadrants, eachrepresenting four different leadership

styles.


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THE FOUR

LEADERSHIP

STYLES

REGULATING BEHAVIOURNU


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U

R

TU

R

I

N

G

B

E

H

A

VI

O

U

R

Style 3

CONSULTINGLOW REGULATINGHIGH NURTURING

Style 2

SUPPORTIVEHIGH REGULATINGHIGH NURTURING

Style 4

DELEGATING

LOW REGULATING

LOW NURTURING

Style1

DIRECTIVE

HIGH REGULATING

LOW NURTURING


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The Managerial Grid


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The Managerial Grid is developed by

Robert Blake andJane Mouton.

The grid has been used throughout theworld as a means of training managers

and of identifying various combination of

leadership styles.

The Grid Dimensions


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The Grid Dimensions

The grid has two dimensions-1. Concern for People

2. Concern for Production

Concernforis meant to convey how and to what

extent managers are concerned about production

and how and to what extent they are concerned

about people, and not such things as how muchproduction they are concerned about getting out of a

group.


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Concern for production includes the attitude of a

manager towards wide variety of things, such as

1. Quality of Policy Decision

2. Procedure and Processes

3. Creativeness of Research4. Quality of Staff Services

5. Work Efficiency

6. Volume of Output

Concern for people is interpreted in a broad


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Concern for people is interpreted in a broad

way and includes-

1. Degree of Personal Commitment towardGoal Achievement

2. Maintenance of the Self Esteem of

Workers3. Placement of Responsibility on the basis

of Trust rather than Obedience

4. Provision of Good Working Conditions5. Maintenance of Satisfying Interpersonal

Relations

The Managerial Grid


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1.9 9.9

5.5

1.1 9.1

Concern for production

ImpoverishedTask

Managers

Middle ofthe Road

Team

managers

Country club

management


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The 1.1 Style

In this style the managers concern themselves

very little with either people or production and

have minimum involvement in their jobs. They

abandon their jobs and only mark time or actas messengers communicating information

from superior to subordinates.

This style is referred to as Impoverished

Management

The 9 9 Style


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The 9.9 Style

In this style the manager display in their actions

the highest possible dedication both to people

and to production. They mesh the production

needs of the enterprise with the needs ofindividuals.

This style is referred to as Team Managers

The 1 9 Style


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The 1.9 Style


little or no concern for the production but are

only concerned for people. They promote an

environment in which everyone is relaxed,friendly, and happy and no one is concerned

about putting forth coordinated effort to

accomplish organisational goals.

This style is referred to as Country ClubManagement

The 9 1 Style


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The 9.1 Style


the highest possible dedication only to

production and developing an efficient

operation. They have no concern for people, andthey are autocratic in leadership style.

This style is referred to as Autocratic Task

Managers

The 5 5 Style


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The 5.5 Style


the adequate performance through balance of

work requirements and maintain satisfactory

morale.This style is referred to as Middle of the Road

Managers


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SITUATIONAL THEORY OF LEADERSHIP

OR

LIFE CYCLE THEORY OF LEADERSHIP

The theory is devised by Paul Heresy and Kenneth

Bl h d h i hi h h h ll


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Blanchard who in this approach shows how well

managers can match the appropriate style withthe maturity level of the group being led. It

focuses on followers maturity.

The approach identifies two major styles-

1. Task Style: The leader organises and define rolesfor subordinates. The leader explain the task so

that each subordinate does it effectively.

2. Relationship Style: The leader have close

personal relationship with the members of thegroup with open communication and

psychological support.

f i


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Four style of leadership

1. Telling Style: high task low relationship style and is very

effective when followers are at very low level of maturity

2. Selling Style: high task high relationship style and is very

effective when followers are at low level of maturity.

Directive and supportive behaviour are provided by the

leader3. Participating Style: low task high relationship style and

is very effective when followers are at high level of

maturity

4. Delegating Style: low task low relationship style and isvery effective when followers are at very high level of

maturity

BOSS AND LEADER


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BOSS:

1. Drives his men

2. Depends onauthority

3. Creates 'fear'4. He knows

5. "Do it" is his slogan

6. Says "I"

LEADER:

1. Leads his men

2. Depends on goodwill

3. Inspires confidence'

4. He knows and shows

5. Takes the "Let us do it"approach

6, Says - "We".


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CONFLICT


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Conflict may occur due to

disagreements, Employees and

management have divergentinterests in allocating resources

which leads to conflict.


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Conflicts leads to Non-co-operation, arguments, hostility,

stress, absenteeism, morcha,

gherao, loss of production, strike,

lay-offs, lockouts, labour turnover,

etc.

Conflicts Resolution


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1. Direct observation2. Open door policy

3. Personnel counselors

4. Suggestion boxes

5. Exit interviews

6. Ombudsman approach7. Internal tribunal

Problem Solving for Unionized Employees


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Personnel Department should ensure that

1. Complaints are investigated and decided on the facts

2. Causes of grievances are genuine and due to personalityconflicts

3. Proper grievance procedure is followed involving both

union and the management

The grievance handling procedure may not

provide a satisfactory solution and that any of


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provide a satisfactory solution and that any of

the following method of grievance handling

may need to be resorted to -

1. Arbitration

2. Mediation3. Union Management co-operation

4. Prior consultation

5. Joint study committees


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COMMUNICATION

What are the most common wayswe communicate?


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Written Word

we communicate?


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The Five Components of

Communication


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Communication

STIMULAS MESSAGE DESTINATION1

Filter2

3MEDIUM

45

Internal

External

Verbal

Non-verbal

Feedback

The Goals of Communications


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To change behavior

To get action

To ensure understandingTo persuade

To get and giveInformation

The Communication Process Model


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Thoughts EncodingTransmission

OfMessage

Sender

Reception DecodingUnder-

standing

Receiver

Noise

Feedback

Sender

Communication


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Oral

Videoconferences

Presentations

Phone calls

Meetings

One-on-one conversations

Written

Miscellaneous

Reports

E-mail

Letters

Memorandums

Direction of Communication


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Downward

CEO

VP-1

MGR-1 MGR-2

VP-2

MGR-3 MGR-4

Upward

Lateral

Cross-Channel


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Interpersonal Communication

ORAL

WRITTEN

NON VERBAL

Oral Communication


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Oral Communication

1. Speeches

2. Group Discussions

3. One to one Communication

4. Meetings

5. Grapevine

Advantages

1. Speed

2. Feedback (instant)

3. Early Correction

Disadvantages

1. Distortion

Written Communication


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Written Communication

1. Letters

2. Electronic Mail

4. Fax

5. House Journals

3. Memos

6. Circulars

7. Notices on bulletin boards

Advantages

1. Tangible

2. Verifiable

3. Record & Storage

4. Carefully written

Disadvantages

1. Time Consuming

2. Feedback (lacking)

Nonverbal Communication Advantages


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Nonverbal Communication

1. Glance

2. Smile

4. Frown

5. Body movements

3. Stare

6. Intonations/emphasis

7. Facial expressions

Advantages

1. Conveys extent of liking and

disliking

2. Conveys relative perceived

status between sender and

receiver

3. Gives meaning to spokenlanguage

Disadvantages

1. No Record

2. May be different from

verbal communication

Formal Small Group Networks


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Formal Small Group Networks

In an organization - Formal Network can be complicated.

Hundreds or thousands of people may be involved. Hierarchy levels may be many.

For simplification we have condensed these networks

into three groups of five people each.

CHAIN


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It rigidly follows formal chain of command

It is rigid three level organization

WHEEL


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Central figure to act as conduit for all the group communication.

This type of network is found with strong leader.

ALL CHANNEL


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Permits all group members to actively communicate with each other.

Often used by self-managed teams.

All group members are free to contribute no one person has leadership role.

Formal Small Group Networks &

Effective Criteria


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Network

Criteria Chain Wheel All Channel

Speed Moderate Fast Fast

Accuracy High High Moderate

Emergence of aleader

Moderate High None

Membersatisfaction

Moderate Low High

Informal Communication Network


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Transmits information throughnonofficial channels Business-related

Accurate

Pervasive (all levels)

Rapid

Most active during change

NormalAccept & pay attention

Characteristics of Grapevine


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Not controlled by Management.

Perceived by most employees as being more believable

and reliable than formal communication.

It is largely used to serve self interest of the people.

Evidence show that 75%of what is carried in grapevine isaccurate.

Rumors emerge as response to situation that are important

and when there is ambiguity.

Rumors get spread because of anxiety.Rumors can not be eliminated, but can be minimized.

Suggestions to Reduce Negative

Consequences of Rumors


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Consequences of Rumors

Announce timetable for making important decisions.

Explain decisions and behaviors that may appear

inconsistent or secretive.

Emphasize the downside, as well as upside, of currentdecision of the future plans

Openly discuss worst-case-possibilitiesit is almost

never as anxiety as the unspoken fantasy.

70 % of all our communicationefforts are:


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efforts are:

misunderstood, misinterpreted,rejected, disliked, distorted, or notheard (in the same language, sameculture)!

Barriers to Effective Communication


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Sender Receiver

Feedback

Distortion

INTERESTING FACTS ABOUT LISTENING


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OUT OF THE TOTAL TIME INCOMMUNICATING YOU SPEND-

9% IN WRITING

16% IN READING

30% IN SPEAKING

45% IN LISTENING

What causes distortion or the barriers tounderstanding/listening?


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Perceptions

Language

Semantics

Personal Interests Emotions

Inflections

Environment noise

Preconceivednotions/expectations

Wordiness

Attention span

Physical hearing problem

Speed of thought

Other Barriers in Communication


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Management Philosophy

Attitudes and opinions

Non receptivity/defensive

Know-it-all attitudeBlocked mind

Obstinate person

Bias and prejudice

Wrong assumptions

Different comprehension

of reality

Emotions

Failure to discriminate

Polarization

Frozen evaluation

Improper assessment of thereceiver

Secrecy

Lack of self confidence

AbstractionsPremature evaluation

tendency

Filtering

How can we improve our listening skills?


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Eliminate distractions

Concentrate

Focus on the speaker

Maintain an open mind

Look for nonverbal cues

Do not react to emotivewords

Ask questions

Sit so you can see & hear

Avoid prejudices

Take notes

Ask for clarification


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STRESS MANAGEMENT

Stress


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The physical, psychological, and behavioralreactions experienced by individuals in

situations where they feel they are in danger

of being overwhelmed. It is a common experience of people when

any demands are placed on them by their

work or personal environment.

Definition


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Stress is mentally or emotionally disruptive ordisquitening influence.

The non specific response of the body to anydemands made upon it. -Hans selye

An adaptive response to an external situation thatresults in physical, psychological, and/orbehavioural deviations for organisationalparticipants. - Fred Luthans

The Fight or Flight Response


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When confronted by athreat, your body

prepares itself to either

stand ground and

fight, or to run away.

Classification of Stress


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The stress whichresults when

good things

happen to us orPositive stress

(1). EUSTRESS



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The stress whichresults when bad

things occur or

negative stress

(2). DISTRESS



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(3). Neustress

When a person isindifferent to the

stress and the result

is neutral.

Sources of Stress


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Stressors

External events or stimuli that are responsible

for stress.

Characteristics of stressors


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Produce state of overload

Evoke incompatible tendencies

Uncontrollable

Potential sources of stress


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Environmental factors

Organisational factors

Individual factors



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Economic uncertainty

Political uncertainty Technological uncertainty

Terrorism


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Individual factors


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Family problems

Economic problems

Personality


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Consequences of stress

Physiological consequences of stress - 1

Short-term effects


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ff

Speeding up of the reflexes

Improved performance

Increased muscle function

Lower load for the digestion system

Stomach troublesCooling of muscles

Increased breathing rate

Reduced sensitivity to minor injuries

Reduction in allergic reactions

Physiological consequences of stress - 2

Long-term effects


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Loss of weight

High/Low Blood pressure

Delayed blood clotting

Cardio- Vascular disorders

Arteriosclerosis (Thickening of wall of arteries)Exhaustion

Heart attack

Diabetes

Damage to the kidneysReduction in the immune system

Depression in sensory perceptions/responses

Psychological Consequences of Stress - 1Cognitive Effects

Decrease in concentration resulting into diminishing powers of


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Decrease in concentration resulting into diminishing powers of

observation.Increase in distractibility resulting into loss of the thread of

thinking process.

Deterioration of memory in the short as well as long term reducing

the span of the memory for recalling & recognition of even familiar

things .Reduction in the response speed.

Increase in error rate resulting into snap & hurried decisions and

errors in manipulative & cognitive tasks.

Deterioration in planning & organising disabling the mind to assess

accurately the existing & future conditions.

Increase in delusions & thought disorders resulting into reduced,

powers of objectivity, reality testing & confused thought process.


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Behavioural Effects

Increase in problems of speech : stuttering, stammering, hesitancy, etc.

Psychological Consequences of Stress - 3


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Diminishing interests & enthusiasm :abandoning short-term goals & life

objectives, dropping of hobbies, disposing of cherished possessions, drop in

energy levels, etc. .

Increase in absenteeism: real or imaginary illness, false excuses, etc. .

Increase in drug abuse: alcohol, caffeine, nicotine, etc.

Disturbance in sleep patterns: either lack of sleep or disturbed sleep.

Cynicism: an increasing tendency to be over-critical & sarcastic about thesuperiors, , colleagues, clients, customers, events, etc.

Ignorance of new developments: new people, new systems, new methods, new

products, new technology are ignored.

Superficial problem-solving : temporary & stop-gap solutions are offered, lack of

detailed thinking, lack of follow-up, 'giving-up' tendency.Lack of self -confidence: decrease in the confidence level, avoiding of

responsibilities or passing on the buck, etc.

Unexpected & bizarre behavioural patterns: odd mannerisms, unpredictable &

uncharacteristic behaviour, use of meaningless phrases, threats of suicide.

Physiological & Psychological effects of stress go


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hand-in-hand and are complementary. They vary fromorganisation to organisation, situation to situation, time

to time and person to person. It is found that some

people collapse at the first signs of stress, while others

have a great strength to cope with a very high level ofstress and do not show any symptoms. We can learn

from such people, the secrets of their success in coping

with the stress and avoiding a break-down in their

personalities.

Strategies of Stress Management


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Time Management

Most of us are poor in time management with the result of

feeling of work overload, skipping the schedules and the

attendant tension. The truth is that that, if we can manage our

time efficiently and effectively, we can accomplish twice as

much as we can otherwise.

Individual Strategies

Some of the basic principles of time management are:


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Preparing a list of the daily activities to be attended to.Prioritising the activities as per their importance & urgency.

Re-scheduling the activities as per the priorities.

Following up the schedule of the activities for early completion.

Checking up the activities & taking the corrective action (ifany).

It is observed that effective time management result$ in: better

physical health, better mental health, relaxed feeling in action,

higher motivation & enthusiasm, higher efficiency, better job

satisfaction, etc.


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Physical Exercise

It is rightly said that 'there is a sound mind in a sound body '. A

physical' exercise at any age is a must. It helps people to cope

with the stress. It is for this reason that people of all ages are seen

taking morning walk, jogging, swimming, playing outdoor games

like badminton or tennis.- etc:

Relaxation


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There are many ways of relaxation at the end of a hectic

day of work & stress. We can have relaxation through

meditation, hypnosis, biofeedback, yoga, etc. Whatever

the method, the main objective is that one must have

deep relaxation, where the person feels totally relaxedfrom the body sensations, At least 15 to 20 minutes a day

of deep relaxation releases tension & provides with a

pronounce sense of peace of mind. This practice causes

significant changes in the blood pressure, heart rate,sleep, concentration, memory, etc.

S i l S t


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Social Support,

Man is a social animal. After the basic needs and the security

needs are satisfied, an individual needs a social support with a

sense of belonging. It is observed that social support plays an

important role in relieving stress of the individual, because theperson gets friends, colleagues, listeners, and confidence builders

who help in networking and thus relieving the harmful stress. This

also helps to control the ill effects of stress, by virtue of giving a

vent to one's feelings, emotions, fears and frustrations to others,who can understand and possibly try help him/her out.

Yoga


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Yoga

Yoga is said to be the most effective way to relieve the

stress. Yoga has been used in many. countries for centuries.

There are many different aspects of Yoga which are said to

be very useful for managing the stress. However, it isadvisable that Yoga & Meditation should be followed under

some expert's guidance for the maximum benefit to reduce

the stress.


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Organisational Communication


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Organisational Communication

This consists of various factors like: oral & written

communication; downward, upward & lateral communication;

interpersonal & Intergroup communication; grapevine;

communication networking; etc. All these factors contribute tothe efficiency & effectiveness of the organisation, which in turn

affect the employees for their work related stress. Organisational

communication with downward and upward channels, equally

open for all employees, helps to reduce the work stress.

Job related activities


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Job related activities

Job re-design, job analysis, job descriptions, job

specifications, job evaluation, job enlargement. job

enrichment, job rotation. work-study, etc. are some of

the modern tools & techniques for attracting &retaining good employees in the organisation, with the

least stressful environment for all.

Recruitment / Selection / Placement


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Certain jobs are more stressful than others in the organisation.Individuals differ in their response to stress situations.

Individuals with comparatively less experience with an external

locus of control tend to be more stress prone. On the contrary,

people with more experience with an internal locus of controlmay adapt better to high stress jobs with a better performance.

These factors should be borne in mind while recruiting people.

It is necessary to give some kind of an induction training to the

new employees in order to orient them to the new organisation

culture, so that they can be better prepared to take up thestressful jobs.

Training & Development


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g p

Appropriate training & development programmes should be

organised for employees at all levels from time to time, so

that they are updated in their knowledge, skills and attitudes

towards their jobs & the organisation. This helps both the

management & the employees to reduce the gap between the

job requirements on the one hand & the capabilities of the

employees on the other. This automatically reduces the

possibilities of stressful situations, which can be caused by

apprehensions about the changes if any.

Performance Appraisal


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There should be a systematic, scientific & periodicperformance appraisal system in force for all employees. By

this process, both the management & the employees know as

to how they are doing & how they should do. Extra-ordinary

performers should be rewarded extra-ordinarily. Average

performers should be given counselling and the necessarytraining inputs for improvement. The mediocre/ below

average performers should be given a clear idea for their

improvement within a stipulated time limit. This helps to

reduce the number of stressed employees and others may berelieved to some extent, at least from the unnecessary &

avoidable stress.

Employee Counselling

Employee counseling can be classified in two parts: on-the-job

counseling and off the job counseling Both these are skilled


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counseling and off-the-job counseling. Both these are skilled

& sensitive jobs and need qualified & competent staff to dothe job of counseling successfully.

The objectives of the employee counseling can be three-fold :

to improve the overall organisational efficiency, .

to reduce the employee stress, and

to improve the employee efficiency.

Employee counseling, if properly done, can yield very good results not

only in terms of reducing the employee stress, but also in terms of

improvement in the overall organisational Productivity.


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Organisation Culture

Organisation culture represents a complex set of beliefs,expectations, ideas, values, attitudes, shared by the members of

an organisation that evolve over time


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an organisation that evolve over time.

Organisation culture includes:

Routine ways of communicating, such as organisationals

rituals and ceremonies and the language commonly used.The norms shared by the individuals and teams throughout the

organisation. (e.g. no reserve parking)

The dominant value held by the organisation (product quality)

The philosophy of the management.

The rules of the game for getting along in the organisation.

The feeling or climate conveyed.(e.g. physical layout,

interactions etc.)


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Cultural Symbols are words, gestures and picture or other

physical objects that carry a particular meaning within a culture.


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Shared Behaviours are norms in the organisation which are more

vixsible snd somewhat easier to change than values.

Cultural Values represents collective beliefs, assumptions and

feelings about what things are good, normal, rational. Andvaluable.

Shared Assumptions represent basic beliefs about reality,

human nature, and the way things should be done.

Forming a Culture


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An organisational culture forms in response to twomajor challenges that confront every organisation.

They are:

External adaptation and survival Internal Integration

Forming a Culture

External adaptation and survival


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This involves addressing the following issues:

Mission and Strategy: identifying primary purpose and selecting

startegies.

Goals: Setting specific targets.Means: Determining how to pursue the goals.

Measurement: Establishing criteria to determine how well

individuals, teams accomplish the goals.

Forming a Culture

Internal Integration


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Internal integration involves addressing the following issues:

Language and concepts: Identifying methods of

communication and developing a shared meaning for important

concepts.Group and team boundaries: Establishing criteria for

membership in groups and teams.

Power and status: determining the rules of acquiring,

maintaining and loose power and status.

rewards and punishments: developing systems for

encouraging desirable behaviour and discouraging undesirable

behaviour.


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Types of Organisation Culture


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Bureaucratic CultureClan Culture

Entrepreneurial Culture

Market Culture

Bureaucratic Culture

An organisation that values formality, rules, standard operating


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procedures, and hierarchical coordination has a bureaucraticculture.

concerns of a bureaucratic culture are:

- predictability

- efficiency and

- stabilityMangers view their role as as being coordinators and enforces

written rules and standards.

Tasks, responsibilities, and authority are clearly defined.

Employees believe that they go by the book as rules andprocess are clearly defined in the manual..

Clan Culture

Tradition, Loyalty, personal commitment extensive socialization,

teamwork self management and social influence are attributes of


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teamwork, self management, and social influence are attributes of

clan culture.

Its member recognise an obligation beyond the simple exchange of

labour for a salary.They understand that contribution to the

organisation may exceed any contractual agreement. Long term

security is given to the employee in exchange of his loyalty.A clan culture achieves unity through socialisation process.The

serve as a mentors and role models of its new members.

They have pride in membership and strong sense of identification

and recognise their common fate in the organisation.A clan culture generates feelings of personal ownership of a

business, a product or an idea.

Entrepreneurial Culture

The characteristics of Entrepreneurial culture are:

- high level risk taking


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high level risk taking

- dynamism- creativity

- experimentation

- innovation

This culture do not react to changes in the environmentit creatschange.

They are mostly small to mid-sized companies.

Market Culture

Its characteristics are:


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- achievement of measurable and demanding goals- hard driving competitiveness

- Profit orientation

In this culture relation between individual and organisation is

contractual.

The individual is responsible for some level of performance.

Organisation promises some level of award in return.

There is no promise of security

Interaction between superior and subordinates are largely on

negotiating performance and reward agreements.It is often tied to monthly, quarterly annual performance goal

based profits.

Framework of Types of Cultures

Flexible

on


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CLAN

CULTURE

ENTREPRENEURIAL

CULTURE

MARKET

CULTURE

BUREAUCRATIC

CULTURE

Internal External

Stable

Forms of Attention

F

ormalControlOrientati

o


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Characteristic of organisational change


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1. Change basically results from both outside and insidethe enterprise.

2. Change takes place in all organisations and in allparts of the organisation but at varying rates of speed

and degrees of significance.3. The enterprise change in several ways. Itstechnology, structure, procedure and other elementsmay change.

Forces for change

Force Examples--------------------------------------------------------------------------Nature of the workforce More cultural diversity


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y

Increase in professionalsMany new entrants withinadequate skills

Technology Faster and cheaper computers

New mobile communicationdeviceDeciphering of human geneticcode

Economic shocksRise and fall of dot.com stocksDecline in the value of euroCollapse of Enron Corp

Forces for change

Force Examples--------------------------------------------------------------------------Competition Global competitors


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p p

Mergers and consolidationsGrowth of e-commerce

Social trends Internet chatIncreased interest in urbanliving

World politics Escalation of hostilities/terrorismOpening markets in China

War on terrorism


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Resistance to change

Individual ResistanceSources of Individual Resistance to Change


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IndividualResistance

Habit

Security

Selective

information

processing

Fear of the

unknown

Economicfactors

Organisational ResistanceSources of Organisational Resistance to Change

Threat to


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Organisational

Resistance

Structuralinertia

Limited

focus of

change

Group

inertia

Threat to

established

power

relationship

Threat to

expertise

established

revenue

allocation

Overcoming Resistance to Change


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1. Education and communication

2. Participation

3. Facilitation and support

4. Negotiation5. Manipulation and cooptation

6. Coercion

Approaches to Managing Organisational Change

Kurt Lewins three step change model


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Unfreezing Movement Refreezing

Unfreezing change efforts to overcome the pressure of both

individual resistance and group conformity.

Moving changing, individuals learn to behave in new ways

after having convinced that their present behaviour is

inappropriate.

Refreezing stabilising a change

Conclusion: Main Points


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1. Change is necessary 2. Become person oriented

3. Take opportunities for Advancement

4. Keep up with technology 5. Introduce change effectively

6. Have Personal Control over Life


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GROUP DYNAMICS

Group


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Two or more individual, interacting andinterdependent, who have come together toachieve particular objectives.

Formal Group


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A designated work group defined by theorganisations structure.

Informal Group


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A group that is neither formally structured nororganisationally determined; appears inresponse to the need for social contact.


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Task Group


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Those working together to complete a jobtask and also organisationally determined.

Interest Group


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Those working together to attain a specificobjective with which each is concerned.

Group Dynamics


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Group Dynamics Refers to Changes WhichTake Place Within Groups and Is

Concerned With the Interaction and ForcesObtained Between Group Members in aSocial Setting.


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STAGES OF GROUP DEVELOPMENT

The five stage group development model

Stages of Group Development


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1. Forming

2. Storming

3. Norming

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20433176 Organisational Behaviour

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