Orgl behaviour ppts

MANAGEMENT
Management as an art of getting things done
Management gets things done through others by
performing managerial functions and also
satisfying their needs

INPUTS
(The Six M’s)
MANAGEMENT FUNCTIONS
(The Process of Management)
OUTPUT
(End Results)
Men and Women
Materials
Machines
Methods
Money
Minute
Goods and Services
desired by the
Customers
PLANNING DIRECTING
ORGANISING
STAFFING
CONTROLLING
Management as a Process
Process of effective utilization of human and
material resources to achieve enterprise objectives

MANAGEMENT
Management as a group of managers
- group of managerial personnel
- People who are looking after the affairs of the
company
- Body or group of people which performs certain
managerial functions for the accomplishment of
predetermined goals

LEVELS OF MANAGEMENT
The term ‘levels of management’ refers to a line
of demarcation between various managerial
positions in an organisation.
Generally – 3 levels
1. Top Management
2. Middle Management
3. Lower level Management

Top Level Management
-consisting of Board of directors and Managing Director
-ultimate source of authority and it establishes goals
and policies for the enterprise
-devotes more time in planning and coordinating
functions

Middle Management
- Consist of heads of various divisions
- Constant touch with the top management
- Responsible for effective performance of their
functional divisions

Supervisory or Lower Level Management
Supervisory management refers to those executives
whose work is to oversee and direct operative
employees
-direct contact with the operative employees
-also called first line supervisors
-link between the management and workers

ORGANISATION
- Backbone of Management
Take away our factories, take away our trade,
our avenues of transportation, our money.
Leave nothing but our organisation, and in four
years we shall have re-established ourselves
- A Carnagie – an American Industrialist

ORGANISATION
Organisation as a group of persons
Group of persons contributing their efforts towards
certain goals
An organisation comes into existence when there are
a number of persons in communication and
relationship to each other and are willing to
contribute towards a common endeavour

ORGANISATION
Organisation as a structure of Relationships
Organisation sets up the scope of activities of the
enterprise by laying down the structure of
relationships
Organisation as a function of Management
Integrating and coordinating the efforts of human,
financial, technological and other resources for
the accomplishment of certain objectives

Organizational Behavior
Organizational behavior (OB)
A field of study that investigates the
impact that individuals, groups, and
structure have on behavior within
organizations, for the purpose of
applying such knowledge toward
improving an organization’s
effectiveness.

ORGANISATIONAL BEHAVIOUR
- Study of Human Behaviour
- Study is about behaviour in organizations
- Knowledge about human behaviour would be
useful in improving organization’s effectiveness

Study involving the ability to see and understand the
behaviour of Individuals in organisations in order
to address organisational and behavioural issues
and find solutions for them.
ORGANISATION + BEHAVIOUR

NEED / IMPORTANCE
- help the managers in effective handling of human
resources for the realisation of organisational goals
1. Understanding of Self and Others
- Individual Behaviour
- Inter-personal Behaviour
- Group Behaviour

NEED / IMPORTANCE
2. Motivation of Human Resources
to understand the needs and desires of the
subordinates
3. Effective Communication
people come in contact with each other

NEED / IMPORTANCE
4. Effective Organisational Climate
creating a good working environment
5. Good Human Relations
relationship between individuals in the organisation
better Industrial Relations

NEED / IMPORTANCE
6. Introduction of Change in the Organisation
introduce changes according to the changes as a
result of technological, social, political factors
7. Problem Solving and Overall Efficiency
Organisation made-up of people and they have to
manage all the resources including themselves

NEED / IMPORTANCE
8. Career in Management
studying to predict behaviour and apply it in
organisation

SCOPE OF OB
1. Skill Development
Enhancing skill to manage people as well as work
effectively
2. Personal Growth through insight into Human
Behaviour
Understanding self, understanding others

SCOPE OF OB
3. Enhancement of Organisational and Individual
Effectiveness
provides information that can be applied to
organisational problems
Improve organisational effectiveness

SCOPE OF ORGANISATIONAL BEHAVIOUR
Individual Behaviour
•Perception
•Personality
•Values, Attitudes and Job
Satisfaction
•Motivation
•Learning
Group Behaviour
•Group Dynamics
•Team work
•Power and Politics
•Communication
•Leadership
•Decision making
Organisational
Factors
•Organisation Theory
•Organisation Design
and Structure
•Organisational Culture
•Organisational
Effectiveness
HUMAN BEHAVIOUR

CONTRIBUTING DISCIPLINES TO
Psychology – Science that seeks to measure, explain
and sometimes change the behaviour of people
Learning
Motivation
Personality
Emotions
Perception
Job Satisfaction
Attitudes
Psychologists study and attempt to understand
human behaviour

Sociology – Study of people in relation to their fellow
human beings – the science of society
Group Dynamics
Work Teams
Communication
Power
Conflict
Organisational Change
Organisational Culture……………………
Sociology deals with the society as a whole rather
than individuals

Social Psychology – An area within psychology that
blend concepts from psychology and sociology
and that focuses on the influence of people on
one another
Behavioural change
Attitude Change
Communication
Group Processes
Group Decision making………
Understanding the need for change, designing change
process, predicting possible resistance and
developing strategies

Anthropology– Science of human behaviour - Study of
Societies to learn about human beings and their
activities
Comparative Values
Comparative Attitudes
Cross-cultural Analysis
Organisational Culture
Organisational Environment………
Study about Orgl culture and differences among
various countries

Political Science– Study of the behaviour of
Individuals and groups within a Political
Environment
Conflict
Intraorganisational Politics
Power…………

Engineering and Technology – Engineering contributes
to the work design and thereby job design –
Technology influence the methodology adopted
by People in Work Environment
- Work Environment
- Communication
- Knowledge Management

Management – getting things done by the people
Decision Making Models
Communication Patterns
Leadership Styles
Organisational Structure
Management deals with supervising people in their
activity to contribute to organizational goals

Economics – understanding of economic conditions,
economic policies of the government
Decision making
Motivation

Medicine – applied science of healing or treatment of
diseases to enhance an individual health and
lifespan
Stress
Frustration
Hypertension
Medicine has concerns for physical as well as
psychological health of a human being

IMPORTANT CONCEPTS/FOUNDATIONS OF OB
Concept emerged from nature of people and
organizations
1. There are differences between individuals –
difference in Intelligence, physique, personality etc
– treat people differently
2. A whole Person – skill, background, likes and
dislikes all aspects of a person is hired – Family life
cannot be separated from his or her work life –
work place is a home away from home – better
person in terms of growth and fulfillment

3. Behaviour of an individual is caused – helps in
predicting the behaviour of individuals – anticipate
the effect of certain activities on human behaviour
4. An individual has dignity – proper respect and
recognition - People have to be treated differently
from other factors of production
5. Organizations are social systems – Social role and
status – Behaviour is influenced by their group as
well as by their individual drives – formal and
informal

6. Mutuality of Interest among organizational
members – ‘organizations need people and people
also need organizations’ – People see as a means to
help them reach their goals – Orgn need people to
attain their objectives
7. Holistic Concept– Interpreting People-organization
relationships, groups, whole Organization, whole
social social system
8. Need for Management - improving organizational
effectiveness

Evolution of Management Thoughts
1. Early Contributions - Upto 19th century
2. Scientific Management - 1900-1930
3. Administrative/
Operational Management - 1916-1940
4. Human Relations - 1930-1950
5. Social Systems - 1940-1950
6. Decision Theory - 1945-1965
7. Management Science - 1950-1960
8. Human Behaviour - 1950-1970
9. Systems Approach - 1960s onwards
10. Contingency Approach - 1970s onwards

Developments
• Division of Labour – Hunting/ Agriculture/ Fighting/ take
care of women & children
• Barter/ Economic Exchange system
• Sumerian civilization (3000 BC)
• efficient Tax collection system managed by Priests
Egyptian civilization
⚫ Construction of pyramids – example of organization of
human and material resources
⚫ Term ‘Supervisor’ – “Vizier” (1750 BC)
⚫ Office of the Vizier – obtained delegated authority
from Pharaoh ( to act as director, organizer,
Coordinator and decision maker)
⚫ Span of control – 10 “servants” to each supervisor

ROBERT OWEN
A successful textile mill manager- Scotland
He referred employees as vital machines
According to him workers should be provided with
• Incentives
• Motivation by improved working conditions
• Fair wages
• Sense of security

ROBERT OWEN
Introduced New ideas of Human Relations
- Shorter working hours
- Housing facilities
- Education of Children
- Provision of Canteen
- Training
Father of Personnel Management

- Importance of Good Human Relations
- systematically discover the social and psychological
factors that would create effective human relations
- Organisational situation should be viewed in social
terms as well as in economic and technical terms
- Hawthorne Experiments
HUMAN RELATIONS APPROACH

Challenges and Opportunities for OB

Challenges and Opportunities for OB
1. Managing Diversity
- Collective mixture of differences and
similarities
- How differences among individuals are
accepted and respected

Barriers to Accept Diversity
» Prejudice - unjustified negative attitude
towards a person based on his or her
membership of a particular group.
» Ethnocentrism - a tendency to regard one’s
own group, culture, or nation as superior to
others.
-People who are ethnocentric see their
group-related customs or beliefs as ‘right’
and evaluate other, beliefs or practices
against this yardstick.

» Stereotypes - set of beliefs about a group that
is applied universally to all members of that
group.
Stereotyping, whether positive or negative, is
not good because seldom does one statement
hold true for all members of a group.
» Discrimination - barring an individual from
membership of an organisation or from a job
because of his or her membership of a
particular group.

» Harassment - verbally or physically abusing an
individual because of membership of a
particular group.
» Sexual harassment - approaching a person in an
unwanted, uninvited way.

2. Changed Employee Expectations
-Empowerment
- Expectation of Quality
- Challenging Assignments
- Career Advancement

3. Globalization
- Management Styles
- Languages
- Attitudes

4. Technology Transformation
-Anything that workers of an organisation use to
transform inputs into outputs
- Automation and Information Technology
- Learner Organisations – changes in the organisation
- Outsourcing – the process of hiring outside firms to
perform non-core activities
- Virtual Offices – people work anytime, anywhere,
with anyone

5. Ethical Behaviour in the Workplace
- Whistle-blowing – refers to disclosure by former or
current employees of any illegal or immoral
practices involving its employees
- Ethics Committees
- Code of Ethics – describes the value system of an
organisation
- Ethics Hot Lines – confidential call
- Ethics Training Programmes

6. Changing Demographics of Workplace
-Dual career couples – both partners are actively
pursuing professional careers
- Young group of Employees
- Increasing number of working mothers

ORGANISATIONAL MODELS
Models are based on certain assumptions and beliefs
- General assumptions and belief of human
behaviour
- Different department works in different ways
- Models help to identify the organisational pattern
with which it works

AUTOCRATIC MODEL
- Started during the period of Industrial Revolution
- Focuses on power
- Dominant nature
- Formal
- Right of command
Management knows what is best and the employees will have to
listen to the orders and perform the task
Management is involved in thinking process and employees are
involved in executing the process

THE CUSTODIAL MODEL
Employees have some power and they wanted to tell many
things
Management started recognizing the employees work
Giving more consideration to material rewards and security
Creating a mind set in employees to depend on the organisation
for all their needs

THE SUPPORTIVE MODEL
- Supportive Relationship – depends on leadership
- Leader takes the responsibility and motivate the group
members
- Support the employees job performance
By having an effective leader the management helps the
employees in accomplishing the interest of the organisation

THE COLLEGIAL MODEL
- Extension of the supportive model
- Collegial – body of people who have a common purpose
- Importance of team concepts
- Based on two principles – self-actualization and self-
discipline
- Self – Actualization – environment where the employees
feel that all their needs are fulfilled and they have
contributed something worth to the company
- Self-discipline – clear in their work and perfection
Both management and the employees work together in achieving
the organisational goals

THE SYSTEM MODEL
- based on trust, self-motivation
- Performance result will be more than expected because
employees are committed to do their tasks
- Depends on trust and understanding
- Passion and commitment
- Spirituality at work – desire for employees to know their
deepest selves better to grow personally, to make
meaningful contribution to society
Organisation – Support employees commitment to short and long
term goals
Coach individuals and groups in appropriate skills and behaviours

THE SYSTEM MODEL
“You are an important part of our whole
system. We sincerely care about each of
you. We want to join together to
achieve a better product or service,
local community and society at large.
We will make every effort to make
products that are environmentally
friendly”

ATTITUDE
Attitude – the way we think, feel and act toward some aspect
of our environment
- thought or belief towards an idea, object or a person,
acquired through learning and experience – positive or
negative
- Attitudes are likes and dislikes
- State of mind

ATTITUDE
Attitude is a learned orientation (direction) or disposition
(character) toward an object or situation which provides a
tendency to respond favourably or unfavourably to the
object or situation

CHARACTERISTICES OF ATTITUDE
1. Attitudes can be held about any object, person,
issue or activity – referred to as the attitude
object
2. Attitude may be strongly or weakly held – an
attitude is an assessment based on continuous
evaluation
3. Attitude are learned through experience
4. Attitude remains inside a person
5. Attitude reflects how an individual feels about
something
6. Attitude endure (continue), unless something
happens

Components of attitude
Affective
Cognitive
Behavioural
A

ABC Model
➢ An Affective Component:
• The feelings, sentiments, moods and
emotions about some idea, person, event or
object (Persons feelings and Emotions)
➢ A Behaviour Component:
• The predisposition (tendency) to get on a
favorable or unfavorable evaluation of
something (Persons intended behaviour –
positive or negative)
➢ A Cognitive Element:
• The beliefs, opinion, knowledge, or information
held by the individual (Persons beliefs, values
and ideas)

Attitude Formation/Sources of
Attitude/Formation of Attitude
1. Direct Experience with the Object – favourable
or unfavourable – difficult to change.
2. Classical Conditioning and Attitudes – develop
associations between various objects and the
emotional reactions
3. Operant Conditioning and Attitude Acquisition
– Attitudes that are reinforced, either verbally
or non-verbally, tend to be maintained
4. Vicarious (experienced) learning – by observing
behaviour of others and consequences of that
behaviour

Attitude Formation/Sources of
Attitude/Formation of Attitude
5. Family and Peer Groups – imitations of parents,
peer groups in colleges and organizations
6. Neighbourhood – cultural and religious
7. Economic Status and Occupations –
Occupational positions
8. Mass Communications - Information

WORK RELATED ATTITUDES
positive or negative evaluations that employees
hold about aspects of the work environment.
❑OB is concerned with work related attitudes:
➢Job Satisfaction
➢Job Involvement
➢Organizational commitment
68

TYPES OF ATTITUDES
Work related attitudes
• Job Satisfaction: ( JS)
• When we talk of employee attitude , more often
we mean job satisfaction.
• JS is an individual’s general attitude towards
her/his job.
• A person with high levels of job satisfaction holds
a positive attitude about the job.
69

TYPES OF ATTITUDES
Job Involvement : ( JI)
The degree to which a person identifies with his/her
job, actively participates in it, considers his/her
performance important to self-worth
• Individuals with high JI really care about the kind
of work they do
• High JI – quality results -- lower levels of
absenteeism and turnover.
70

TYPES OF ATTITUDES
Organizational commitment : The degree to which
an employee identifies with a particular
organization and its goals and wishes to maintain
membership in the organization.
71

BENEFITS OF POSITIVE ATTITUDE
(In Organisation)
- Increases productivity
- Fosters teamwork
- Improves quality
- Makes for congenial (good natured) atmosphere
- Increases profits
- Better relationships with employees, employers
and customers
- Reduces stress
- Makes for a pleasing personality
72

Change of Attitude
• Attitudes are not stable
• Attitudes change as a result of new
information
• Attitudes may change as result of change in
attitude of the object
• Individual’s deep rooted attitude itself is
hindrance of changing attitude

Barriers to Changing Attitude
1. Prior Commitment – favourable towards a
particular action and don’t want to change
2. Lack of sufficient information
3. Confusion and conflicting thoughts
4. Strong Commitment – stronger the belief
5. Low Credibility
6. Degree of fear – Low level or high level

CHANGE ATTITUDE OF EMPLOYEES
1. Give feedback – telling the consequences of
negative attitude
2. Positive conditions – good working condition
3. Positive role model – by the superiors
4. Providing new information
5. Use of fear – moderate level of fear – people will
become aware of the situation and will change their
attitude
6. Influence of friends
7. Coopting approach – taking people who are
dissatisfied with a situation and getting them
involved in improving things
8. Group membership
9. Rewards
76

Responses to Job Dissatisfaction (Negative
Attitude in Organization)
- Exit – behaviour directed towards leaving the
organization – looking for a new position as well as
resigning
- Voice – attempting to improve conditions –
suggesting improvements, discussing problems with
superiors
- Loyalty – waiting for conditions to improve –
trusting the management and the organisation to do
the right things
- Neglect – allowing conditions to worsen –
absenteeism, reduced effort and increased error
rate
77

Measurement of Attitude
Five Approaches
Records – observed behavior – attendance, incidents
and interviews
Self Reports – reporting directly about their own
attitudes
Report of Others – information, rating scales and
interviews
Sociometric Techniques – members of a group report
about their attitudes towards one another
Projective Techniques – Picture presentations and
sentence completion
78

1. Thurston Attitude Scales
- Thurstone – Social psychologist
- Pool of opinion statements – positive, negative
and neutral
- 3 Scales
a) Paired Comparisons – Attitude
comparisons be paired in every possible combination
b) Equal-appearing intervals – Statements
given and asked to rate the statements – favourable
to extremely unfavourable
c) Successive Intervals – Extension of Equal-
appearing intervals – Statistical datas instead of
subjective answers
79

2. Likert Scale
- Rensis Likert
- individual is asked to indicate agreement or
disagreement with job factors
- point scale
80

3. Critical Incidents
Developed by Herzberg and his associates
Employees were asked to describe incidents on their
job when they were particularly satisfied or
dissatisfied
81

4. Interviews – Personal Interview
responses reveal their satisfaction and
dissatisfaction
82

GROUP
A Group refers to a collection of two or more
interacting individuals with a stable pattern of
relationships between them, who share
common goals, and who perceive themselves as
being a group.

CHARACTERISTICS OF GROUP
1. Interaction among members
2. Shared goals or common interests
3. People see themselves as members
4. Two or more people are needed to form groups

TYPES OF GROUPS
I Formal Group
A formal group is one that is deliberately created to
perform a specific task –Members are usually
appointed by the organisation
eg Committee, work units, small department etc.
Rules and regulations guide the behaviour of the
groups
Formal groups may be Command group or temporary
task group
Command group is specified by the organisation chart and
comprise supervisors and his subordinates
A temporary task group consist of employees who work
together to complete a particular task or project

TYPES OF GROUPS
II) Informal group also called a clique is an alliance that
is neither formally structured nor organisationally
determined
Clique – small group of people who spent their time
together
3 types of informal groups
a) Horizontal clique –consisting of people of similar
rank from the same work area
b) Vertical clique – consists of people from different
hierarchic levels within the same department
c) Random clique comprises people from various
departments, location and hierarchic levels

TYPES OF GROUPS
III) Open and Closed Groups
Open group – constant state of change – members
keep changing, new members joining and
existing ones leaving
Closed group – quite stable

TYPES OF GROUPS
IV) Membership and Reference group
Membership group are those to which individuals
actually belongs to
Reference group is the one with which he would
like to belong

- intimacy, face-to-face association and co-
operation
- Small groups get into formation for fulfilment
of needs like intimacy, face-to-face
association, security, companionship etc.
SMALL GROUP

- Have cohesiveness in the activity of the group
members
- An association of a limited number of persons
willing to have frequent face-to-face
interaction over a fixed span of time
- Members having like minded approach and
intentions, preferably positive towards each
other
- Members differentiating with members of
other sub-groups in some regards
- Group members being mutually aware of their
membership of the group
Characteristics of SMALL GROUP

1. TASK 2. MAINTENANCE 3. PERSONAL FUNCTION
1.Task - Help to keep the group focused and directed
towards achieving its goals
2. Maintenance - making the group members stay
involved and ensure that everyone is able to
contribute to their maximum potential
3. Personal Function - Personal needs of group members
to ensure that the group functions in the best
possible way
Functions of SMALL GROUP

1. TASK 2. MAINTENANCE 3. PERSONAL FUNCTION
I Task
- Help to keep the group focused and directed towards
achieving its goals
- Initiation – action taken to get the group members
started on working together towards their purpose
- Information, or Opinion, Seeking – act of asking for
facts, information, suggestions about a group concern –
through group interaction
- Information, or Opinion, Giving – offering information
in the form of facts, beliefs, opinions or ideas –
leadership function

I Task
- Clarifying and Elaborating – everyone in the group is
talking about the same thing – common understanding
- Summarizing – pulling together related ideas which is
fully discussed and offering a decision or conclusion
- Consensus Seeking – act of testing whether the group is
nearing a conclusion or decision – extent to which the
group is in agreement
- Implementing - putting the decisions of the group into
action – Delegating authority, Assigning responsibility
and accepting personal commitments

II Maintenance
- making the group members stay involved and ensure
that everyone is able to contribute to their maximum
potential
- Encouraging – giving an opportunity for recognition,
helping them
- Expressing Group Feelings – sensing the mood of the
group – giving a platform to express their feelings
- Setting Standards – imposing and insisting on standards
for the actions of the group – help the group focused on
its task
- House-keeping – making everyone aware of the group’s
decisions and progress

III Personal Functions
- Personal needs of group members to ensure
that the group functions in the best possible
way
- Self understanding – Capacity to see own
behaviour, actions, and reactions in the group
in an objective way
- Inter-Personal Understanding – understand the
other person’s point of view and encouraging
- Active Listening – involves both listening and
making a conscious attempt to understand the
other person’s view

III Personal Functions
- Managing Conflicts – prevents argumentation
from blocking progress and decision-making
- Monitoring Disruptive Behaviours – stop from
hindering the group’s progress – try to
understand and to change it – Be open to others
pointing-out disruptive behaviour
- Recognition – People work best when their
contributions are valuable – constantly
reinforce in memebers by recognizing and
acknowledging all actions which help the group
to function effectively

WHY DO PEOPLE JOIN GROUPS
1. Proximity, Interaction and Influence – work
near each other – frequent interaction with
one another – individual influence.
2. Security – people’s need for security – feel
stronger, have fewer self-doubts and are more
resistant to threats – No employee like to stay
alone
3. Esteem (value) – increase his self-esteem
through group membership

WHY DO PEOPLE JOIN GROUPS
4) Affiliation – enjoying the company of other
people, particularly those who possess common
interests
5) Power – Membership of groups offers power to
members in at least two ways – united we
stand, divided we fall and there is strength in
numbers – unionisation in organisations
6) Huddling – informal get-togethers- dealing with
emerging matters

STAGES IN GROUP DEVELOPMENT
(Tuckman’s Five Stage Model of Group
formation and Development)
1) Forming –
- great deal of uncertainty about the group’s
purpose, structure and leadership.
- Stage ends with interpersonal relationships and
members will start think of themselves as part of a
group
2) Storming –
- conflict arises because of interpersonal behaviour
- need to clarify roles and behavioural expectations
- resolve the conflict about power and task
structure

STAGES IN GROUP DEVELOPMENT
3. Norming –
- a single leader emerges and this results in group
cohesion
– a strong sense of group identity
– new group standards and roles are formed for
members
4. Performing –
- team work, role clarity and task accomplishment
– getting to know and understand each other to the
job of performance
5. Adjourning – disbandment of group.

Group Size
- Larger groups – idea generation and availability of
resources
- Nature of tasks to be performed
- Ideal group size is 5 to 7 members

Group Norms – are rules or guidelines of accepted
behaviour which are established by a group and
used to monitor the behaviour of its members
- a set of beliefs, feelings and attitudes commonly
shared by group members
- as rules or standards of behaviour that apply to
group members

- Norms serve three functions in groups
a) Predictive b) Control c) Relational
- Norms represents characteristics of groups
-Norms are the basis for behaviour of members in group
-Norms are the basis for predicting and controlling
behaviour of group members

How do Norms Develop ?
Norms develop gradually and informally as
members learn what behaviours are necessary
for the group to function
1. Members past experience from other groups
in other organisation
2. Primacy – the first behaviour pattern that
emerges in a group
3. Critical incident in the life of an organisation
4. Explicit statement made by supervisors or co-
workers themselves
DETERMINANTS OF GROUP BEHAVIOUR

Group Cohesiveness
- Degree of attachment of the members to their
groups
-It is the extent to which the members are
attracted to each other and to the group.
-extent of liking each member has towards
others and how far everyone wants to remain as
a member of the group

Group Cohesiveness is high when:
- the employees spend more time for working
together
- the group size is small
- Group members interact with each other
closely and frequently
- the group members have common threats
- Members agree with the common goals
- There is competition with other groups

Group Cohesiveness
Sources of Cohesiveness
1) Interaction
2) Threat
3) Severity of Initiation – difficulty in getting admission
into a group
4) Co-operation
5) Shared Goals
6) Attitudes and Values
7) Size
Factors contributing to Group Cohesiveness

Group Cohesiveness
Guidelines for attainment of orgl goals from a
highly cohesive group
1. Emphasis on task accomplishment
2. Participative management
3. Intergroup competition
4. Disband the group

Group Status
Status – social position or rank given to groups or
group members by others
Status – social ranking within a group
- title, level of pay, seniority

TEAM
A team is a form of group but it has some
characteristics in greater degree than ordinary
groups, including a higher commitment to group goal
and higher degree of interdependence and
interaction.

CHARACTERISTICS
1. Small Number of People
2. Complementary Skills – Technical or functional
skills, Problem-solving and decision making skills,
Interpersonal skills
3. Common Purpose and Performance Goals
4. Common Approach
5. Mutual Accountability

TYPES OF TEAMS
1. Problem-solving Team –to solve specific
problems which an organisation may facing-
may be from a single dept or more than one
department
- specific problems which cannot be solved by an
individual alone

TYPES OF TEAMS
2. Cross-functional Team – draws its members from
different functional areas –
eg. Committees
Made up of employees from about the same
hierarchical level, but from different work areas
who come together to accomplish a task

TYPES OF TEAMS
3. Self-managed Team – empowered to share various
management and leadership functions – plan
control and improve their own work processes –
set their own goals and inspect their own work
employees given a high degree of decision making
responsibility and behaviour control for
completing their work – team is empowered

TYPES OF TEAMS
4. Virtual Team – use of computer technology to tie
together physically dispersed members in order to
achieve a common goal
– interact among themselves online

Typical Teams in Organisations
5. Quality Circles
- small teams of employees (7 to 10)
- meet few hours each week to identify
quality and productive problems

Implementing Teams in Organisations
A right combination of skilled people and individuals
who are willing to work together with other as a
team
Planning the change – decision to have a team and
implementation
Making the Decision – establish leadership for the
change – explore the organisation’s readiness to have
team based structure

Creating Effective Teams – Context
(background factors that appear to be most significant
related to team performance)
• Adequate Resources – support received from the
organisation
• Leadership and Structure – who is to do what – ensure
that all members contribute equally in sharing the
workload – Leader’s expectation
• Climate of Trust – effective teams trust each other –
facilitates cooperation, reduces the need to monitor
each others’ behaviour
• Performance Evaluation and Rewards – individually and
jointly accountable – remuneration and performance –
group based appraisals, group incentives

Creating Effective Teams – Composition
(variables that relate to how teams should be staffed)
• Abilities of Members – knowledge, skills and abilities of
its individual members
Problem solving and decision making skills, technical
expertise, Interpersonal skills
• Personality – extroversion, agreeableness,
conscientiousness and emotional stability
• Roles – Teams have different needs and people should
be selected for a team to ensure that all various roles
are filled

• Diversity – variety of skills and knowledge
• Size – 5 to 7 members – cohesiveness and mutual
accountability – more members will lead to social
loafing
• Social Loafing
– The tendency for individuals to expend less effort
when working collectively than when working
individually.
– To reduce social loafing, teams should not be larger
than necessary, and individuals should be held
accountable for their actions.

• Member Flexibility - members who can complete each
other’s tasks
• Members’ Preference for Teamwork – High performing
teams are likely to be composed of people who prefer
working as part of a group

Creating Effective Teams – Work Design
(work together and take collective responsibility
to complete significant tasks)
Autonomy – degree to which the job provides
freedom, independence
Skill variety – degree to which the job requires
a variety of different activities
Task identity – degree to which the job
requires completion of a whole and
identifiable piece of work
Task significance – degree to which the job has
a substantial impact on the work of other
people

Creating Effective Teams – Process
(member commitment)
• Common Purpose -provides direction - Vision
• Specific Goals – common purpose transferred into
specific, measurable and realistic performance goals
• Team Efficacy (effectiveness) – means that the teams
have confidence in themselves and believe they can
succeed.
• Managed Level of Conflict – appropriate level of
conflicts

LEADERSHIP
Leadership is a process of influence on a
group.
Leadership is the ability of a manager to
induce subordinates to work with
confidence.

Leadership - Definition
“Leadership is interpersonal influence
exercised in a situation and directed
through communication process , towards
the attainment of a specified goal or
goals”
“Leadership is the process of influencing
and supporting others to work
enthusiastically toward achieving
objectives”

Characteristics of Leadership
1. Leadership is a process of influence
2. Leadership is related to a situation
3. Leadership is the function of stimulation
(motivating people)
4. Leadership gives an experience of
helping attain the common objectives
5. Employees must be satisfied with the
type of leadership provided

Importance of leadership
• Determination of goals
• Organisation of
activities
• Motivating employees
• Achieving co-ordination
• Building morale
• Creating confidence
• Securing co-operation
• Representation of
workers
• Facilitating
changes

LEADERSHIP VS MANAGERSHIP
1. Concept
Managership is a wider concept including
leadership that is every manager is
leader
Leadership is a narrower concept as every
leader may or may not be a manager

2. Applicability
Manager is applicable to only formal groups
that is there are no managers in
informal or unorganised groups
Leader is found in both formal and informal
groups

3. Authority vs Power
A manager operates on the basis of his
formal authority which may or may not
be coupled with his power over the group
A leader operates by his power possessed
through his personal qualities

4. Context (situation)
Managership is more significant in the
context of business enterprises and other
forms of organised endeavour
Leadership is specially required in political
organisations and military organisation

5. Role
A manager is primarily concerned with shaping
or moulding behaviour of subordinates
towards the attainment of common objectives
A leader is concerned with inspiring followers
through creating enthusiasm in them towards
the attainment of common objectives.

6. Appeal
A manager makes a formal appeal to
subordinates
A leader makes an emotional appeal to
followers

7. Relationship
In management, the relationships between
the manager and operators are those of
superior and subordinates
In the leadership terminology, the head and
his workers are called the leader and the
followers.

8. Organisation
A manager deals with an organisation which
is both technical and human
A leader deals primarily with a human
organisation

9. Approach
A manager is a boss and pusher of people
A leader is a friend and a puller of his
followers.

LEADERSHIP STYLES
1. Autocratic leadership style
-A leader believes in centralisation of powers
-takes all decisions himself without inviting any
consultations from his followers
-expects them to accept his decisions
unquestioningly
-orginated in military organisations

Merits
1. Quick decision making
2. Suitable at lower level in an organisation
3. Suitable in emergency situation
4. Provide strong leadership to the group
Demerits
1. Development of frustration in subordinates
2. Subordinates avoid responsibility
3. Retard (slow down) human development
4. Short-run

LEADERSHIP STYLES
2. Democratic leadership style
-leader believes in decentralisation of
powers
-invites followers to participate in the
decision-making process

Merits
1. Commitment to decision
2. Potential of subordinates is utilised
3. Helps to increase motivation, moral and
job satisfaction
4. Emergence of good human relations
Demerits
1. Delayed decision-making
2. A sign of managerial incompetence
3. Leads to loss of Leader’s control
4. The phenomenon of passing the buck
(shifting the responsibility)
5. Not suitable when decisions on complex
and strategic issues are required.

LEADERSHIP STYLES
3. Laissez-faire or Free-rein leadership
style
-leader plays only a supervisory role
-leader does not interfere while the
subordinates are performing
-this style is followed where subordinates
are educated and skilled

Merits
1. Highest sense of job satisfaction
2. Fullest exploitation of potential
3. Technique of training and developing
subordinates
Demerits
1. Minimise the role of the leader
2. Performance of subordinates is rather poor
because of loss of control of leader and
unavailability of leader’s expert guidance
3. Not suitable when subordinates are
uneducated or less skilled

LEADERSHIP STYLES
4. Paternalistic leadership style
-leader plays a ‘father-like’ role towards his
followers and also care of their problems, the
way a father does for his family
-philosophy is ‘work hard and I will take care of
you’
-most found in ‘family concerns’
-Japanese management system

Merits
1. Subordinates are loyal
2. Good human relations
3. Balanced leadership approach as fear
and love both are combined in a unique
manner by the leader
Demerits
1. Unsuitable when there is lack of mutual
trust
2. Undue advantage of the leniency of the
leader
3. More involved in personal problems of
subordinates than organisational issues.

RENSIS LIKERT’S 4 –SYSTEM MANAGEMENT
-theory was formed based on the study conducted by
Rensis Likert and his associates at the University of
Michigan, USA for a period of 3 decades.

Likert has classified four systems of management
System 1 – Exploitative-authoritative
System 2 – Benevolent-authoritative
System 3 – Consultive
System 4 – Participative group or democratic

System 1 – Exploitative-Authoritative
-highly Autocratic
-Decision is centralised in the hand of the leader who
has little trust in subordinates
-leader motivates subordinates through
fear,punishment etc and resorts to rewards only
occasionally.
-only downward communication from the leader to
the subordinates.

System 2: Benevolent-authoritative
-leader is a bit lenient autocrat
-gets some ideas and opinions from subordinates
-leader thinks that he is more important and intelligent than
subordinates
-allows limited delegation of authority within close control
-motivates subordinates with some rewards and some fear and
punishment
-permits some upward communication that is from subordinates to
the leader

System 3 : Consultive
-the leader has substantial trust in subordinates
-makes constructive use of subordinates ideas and
opinions
-broad policies and general decisions are made at the
top with specific decisions to be made at lower
levels
-motivation consist of rewards and occasional
punishments
-Communication system is two-way

System 4: Participative-group or democratic
-the leader has complete confidence and trust in subordinates in all
matters
-always gets ideas of subordinates and constructively uses them
- gives economic rewards to subordinates on the basis of group
participation in goal setting
- Both upward and downward communication
- Leader always encourages group approach to decision-making
throughout the organisation

MANAGERIAL GRID OR LEADERSHIP GRID
-based on research studies undertaken regarding the
behaviour of leaders at the Ohio-State University and
the University of Michigan-developed by Robert Blake
and Jane Mouton
-revealed that there were two broad dimensions of
leadership behaviour
They are
1. Initiating structure or task oriented behaviour
2. Consideration or employee-oriented behaviour

BEHAVIOURAL THEORIES OF LEADERSHIP
-Initiating structure or task oriented behaviour –
leaders closely supervises subordinates to
ensure that the task is performed in a
satisfactory manner and behaves like an
autocratic leader.

-Consideration of employee-oriented behaviour
– leader adopts an attitude of friendship and
trust towards subordinates and behaves like a
democratic leader

The management grid identifies various
alternative combinations of both basic styles
that is concern for production and concern for
people.
-These combinations are put in the horizontal
and vertical dimensions of the grid having a
scale from 1 to 9

-the grid has 81 possible combination out of
which Robert Blake and Mouton have
concentrated only on five combination

They are
a) (1,1) – Impoverished Leadership style
b) (9,9) – Team leadership style
c) (5,5) – Middle of the road leadership style
d) (1,9) – Country club leadership style
e) (9,1) – Task leadership style

a) Impoverished leadership style (1,1)
Managers have very little concern for either people or
production
-act as messengers communicating information from
superior to subordinate
-This style of leadership behaviour is also called laissez-
fair style.

b) Team leadership style (9,9)
-leader has highest dedication to both people and
production
-leader tries to meet production needs with needs of
individuals
-experienced managers prefer this style of leadership

c) Middle of the Road leadership style (5,5)
-medium concern for people and production
-tries to get adequate performance out of subordinates
through maintaining a balance between work
requirements and satisfactory morale of employees

d) Country Club leadership style (1,9)
-leader has little concern for production and maximum
concern for people
-to give a friendly and comfortable organisational
atmosphere

e) Task leadership style (9,1)
-leader is concerned only with development of efficient
production operations
-little or no concern for people
-leader behaves as an autocrat
-efficiency results from arranging work in such a way
that human elements have little effect.

ORGANISATIONAL CHANGE
process by which organisations move from their
present state to some desired future state to
increase their effectiveness
Three components
- The historical evolution of the company
- The management of the company
- The people who work for the company

Characteristics/Nature of CHANGE
- vital if a company were to avoid stagnation
- a process and not an event
- normal and constant
- fast and is likely to increase further in the
present competitive business
- ‘directive’ – implemented by top down
management or ‘participative’- involving those
parties impacted by change
- is ‘natural’ or ‘adaptive’
- Step by step process
- Interdependent on organisational environment
or culture

Factors influencing Organisational Change
External Forces
Globalization – MNCs – Joint venutres – has
made organisations to rethink the boundaries of
their markets and to encourage their employees
to think globally
Workforce Diversity – Expectations of people
Technological Change – methodology of work,
change in organisational structure
Managing Ethical Behaviour – product safety,
employee health, sexual harassment, etc etc
Others – government policies, competition etc

Factors influencing Organisational Change
Internal Forces
• Falling Effectiveness – incurring loss
• A Crisis – Critical incidence in the organisation
• Differing Employee Expectations – Young
employees – career-oriented
• Change in the work climate of an
Organisation – structure, productivity, policies

Levels of CHANGE
Individual-level Change – change in job
assignment, physical move, change in self
Group-level Change – Activities on a group basis –
departments or informal work groups – affect
work flows, communication pattern etc
Organisation-level changes – involve major
activities affecting both individual and groups –
require considerable planning for
implementation – Organisational Development

CHANGE PROCESS
Becoming Aware of the Pressure for Change
Internal and External
Recognizing the Need for Change
Diagnosing the Problem
To determine how it may affect the company and
its consequences – through Interviews,
questionnaires, Observations, other data

CHANGE PROCESS
Planning the change
Formulate a strategy for change
Implementing the Change
Resistance to Change
Managing Resistance
Education and communication, Participation and
involvement, Support, etc
Follow-up on the Change
Evaluate the effects of the change and to
implement modification if needed

Resistance to CHANGE
Individual level Resistance to Change
1. Economic Factors – fear that the change will
lead to technological unemployment
Fear of demotion if they don’t acquire new
skills
Fear that the organisation will set high job
standards
2. Habits – Not ready to try new – fear that
change leads to more complexities
3. Insecurity – Uncertainty – Job security – fear
of unknown.

Individual level Resistance to Change
4. Lack of Communication – Non participation of
workers in implementing change
5. Extent of Change – major changes causes
resistance
6. Psychological Factors – past experiences, likes
and dislikes
7. Social Factors – friendships, informal
relationships

Group level Resistance to Change
- Impact of Informal Groups in the organisation
- Fear that their cohesiveness or existence is
threatened
- When people have a very strong sense of
belongingness

Organisational Level Forces
1. Threat to Power – introducing strategies
where the position power is disturbed
2. Group Inertia – Individuals resist because the
group/Organisation resist to it.
3. Organisational Structure
4. Threat to Specialisation
5. Resource Constraints – Organisation resist
when there is no sufficient funds for change
6. Sunk Costs – heavy investment already made,
training given

Overcoming Resistance to CHANGE
Efforts at the Individual level
1. Participation and Involvement
2. Effective Communication
3. Facilitation and Support – removing barriers,
providing guidance
4. Leadership
5. Negotiation and Agreement
6. Manipulation and Co-optation
7. Coercion – threatening
8. Timing of Change

Overcoming Resistance to CHANGE
Efforts at the Group Level
- Change agent and the people target for
change belong to the same group
- More cohesiveness and strong belonging to the
group – change is easier
- Group interactions – providing information
- Convince that the interests of the group
members are fulfilled

CHANGE MODEL
Unfreezing, Moving and Refreezing
Unfreezing the current situation – make people
recognise the need for change and to search
for new solutions – eliminating the rewards for
current behaviours
Moving – alter the behaviour of the individuals
and departments – developing new behaviours,
values and attitudes – through structural
changes and OD Techniques

CHANGE MODELS
Unfreezing, Moving and Refreezing
Refreezing – change becomes permanent – New
attitudes and behaviours are established –
encourage the new behaviour

Meaning
“Organization development is an effort planned,
organization wide and managed from the top to
increase organization effectiveness and health through
planned intervention in the organization’s “processes”
using behavioral-science knowledge.”

ORGANIZATIONAL DEVELOPMENT IS:-
• Systematic
• Planned
• Long-range
• Organization-wide and
• Managed from the top

Characteristics of OD
1. Planned Change – Educational strategy – after proper
study and understanding.
2. Encompasses the Whole Organisation – development
in all parts of the organisation and well co-ordinated
3. Long Range Change – take month or years to implement
4. System Orientation - concerned with various groups –
formal and informal – concerned with group structures
and processes
5. Use of change agent:- bringing about a change
within the system at same time remaining
independent
External change agents are more objective and
have diverse experiences in comparison to internal
agents.
The internal agent along with the external agents
work with line management.

6. Solving of problems:- The problems of quality, cost,
machine breakdowns, marketing, finance are to be
identified and the plan of action should be implemented
in such a way that the problem is removed and the
efficiency of the organization is improved.
7. Learning through experience:-The modification must be
brought about through training.
8. Collaborative Management :- collaborations open
communications, shared power, constructive
confrontation (argument) and interpersonal trust. This
makes the employees expand their skills and be
effective and self-renewing.
9. Group processes:-Group discussion on the issues is
necessary. The object of common interaction is a must
to develop confidence among the members to work as a
team. It also provides the needed feedback.

10.Organisational Culture – Development will be
happening according to the Culture of the organisation
11.Feedback – encouraged to understand the situation and
take self corrective actions
12. Situational and Contingency Oriented – to fit
particular needs – open discussion of several better
alternatives
13. Team building – tie all the groups – finding solutions for
solving the differences

TECHNIQUES OF ORGANISATIONAL DEVELOPMENT
1.Sensitivity Training (‘T’ Group):-
T-group- t stands for training
Earlier OD technique and is still in use
The objectives of this are to provide employees
increased, awareness of their own behavior and how other
perceive them, greater sensitivity to the behavior of
others, and increase understanding group processes.
Increased ability to empathize with others
improved listening skills
improved conflict reduction skills.

2.The managerial Grid
Grid training seeks to promote organizational excellence by
fostering concern for production and concern for people.
Working on the premise that most organizational problems
stem from poor communication and inadequate planning,

The Managerial Grid:
- it was developed by Robert Blake and Jane Mouton
- it is based on practical research into behavioural
sciences in industrial setting
- it is tested science of management applied in day to
day situations
Two dimension:
i) Concern for people – it include personal commitment
towards goal achievement, maintenance of self esteem,
responsibility, good working conditions & satisfying
interpersonal relations
ii) Concern for production – it is assessed through number
of creative ideas that applied research turns into
useful products, procedures or processes, quality of self
services, work efficiency and volume of output

- scale from 1 to 9 (1 – least involvement & 9 – most involvement)
- (1,1) indicate minimum standards, (9,9) is maximum standards.

Coordinates (1,1) – known as “Impoverished management”.
- makes minimum efforts to get work done, minimum performance and
minimum worker dedication
Coordinates (1,9) – also called “Country Club management”
- relationships with people, friendly atmosphere and high morale
Coordinates (9,1) – also called “Autocratic task managers”
- excellent work design, established procedures, efficient operation,
orderly performance.
Coordinates (5,5) – known as “Middle of the road”
- satisfactory performance based on performance and reasonable morale.
Coordinates (9,9) – called as “team managers”
- managerial efficiency, dedicated people, trustworthy and respectable
atmosphere.
- highly organized task performance.

STEPS IN GRID OD:
1. Training,
2. Team development,
3. Inter-group development,
4. Organizational Goal settings,
5. Goal Attainment,
6. Stabilization.

3.Process Consultation
Set of activities on the part of a consultant which helps the
client to perceive, understand and act upon process events
which occur in the client’s environment
How well its people relate to one another
Use of External consultant
-Inter group processes
-Group problem solving and decision making
-Communication
-Group norms and growth
-Functional roles of group members
-Leadership

4.Team Building / Development
Team building is a process of diagnosing and improving the
effectiveness of a work group
- improving inter-personal relationships within it
- defining the role of the leader in relation to other group
members.
Both the group’s task producers and its human
interactions are the subjects of study in team building.
The basic assumption of team building is that increasing
the effectiveness of team will improve the organization’s
overall effectiveness.

5. Survey Feedback:- most popular and widely used
involves two basic activities:
1) collecting data about the organization through the use
of questionnaires
2) conducting feedback meetings and workshops in which
the data are presented to organizational members.

6. Third Party Peace Making
Focuses on the intervention by a third party to resolve the
conflicting situations
Consultant will make the two disagreeing parties to
confront or to face upto the fact that a conflict does
exist and it is impairing the effectiveness of both

7. Role Playing
To increase the trainee’s skill in dealing with others
Human relation training or sales training

8.Technical structure intervention/ Structural Technique
Change the organization’s formal structure
Job redesigning
Job Enlargement
Job Enrichment
Management by Objectives
Training and career development
Modifications of the organisational culture
Jobs should be so designed that they are made more
challenging, interesting, and motivating.

Managerial implication of OCD
• Manager must understand the changes & cope
with it (Due to advance in technology, trend in
composition, other factors)
• Manager should manage this resistance sources
successfully (Changes due to uncertainty, threat,
lack of trust).
• Maintain relationship between change agent &
change target
• Manager should go for change from traditional to
new methods
• Manager should use his positional power to
enforce change

CONFLICT
- disagreement
- process in which one party perceives that another
party has taken or will take actions that are
incompatible with one’s own interest
• Conflict is defined as a clash between individuals
arising out of a difference in thought process,
attitudes, understanding, interests, requirements and
even sometimes perceptions.
• A conflict may results in
- heated arguments
- physical abuses
- loss of peace and harmony

CONFLICT
- within an individual
- between two individuals
- between two groups

Relation Between Organisational Performance and Conflict

213
1. INTERDEPENDENCE/TASK-BASED CONFLICTS.
- Work is interdependent
– lack of coordination
2. LEADERSHIP CONFLICTS
- difference in leadership style
3. WORK STYLE CONFLICTS
- different work styles
- Preference of working – in group or individually
4. PERSONALITY-BASED CONFLICTS
- Individual Character
- Personality trait difference
5. DISCRIMINATION
- based o age, religion, gender etc
- No open-mindedness, acceptance or understanding
6. CREATIVE IDEA CONFLICT
- Idea brainstorming
- Non recognition of ideas of others
Types
of
Conflict

Conflict
resolution
215
Conflict resolution is a way for two or more
parties to find a peaceful solution to a
disagreement among them.
Negotiation to resolve the disagreement.

Conflict
Resolution
Strategies/
Techniques
217
People deal with conflict in a variety of ways, therefore you need different
conflict resolution strategies.

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