Organizational Behaviour and Management Process

Organization behaviour
Sandeep Ghatuary
Kolhan University or Ranchi University
Semiester - 1
ORGANISATION BEHAVIOUR Introduction - Org. Behaviour (in short called as OB) is concerned with the study of the behaviour and interaction of
people in restricted or organized settings. It involves understanding people and predicting their behaviour, and knowledge of the means by which their behaviour is influenced and shaped. OB is thus of great concern to anyone who organizes, creates, orders, directs, manages, or supervises the activities of others. It is also of concern to those who build relationships between individuals, groups of people, and different parts of organisation between different organisations, for all these Activities are founded on human interactions.
MEANING OF OB
It is the study and application of knowledge about how people act within organisations. IT IS A HUMAN TOOL FOR HUMAN BENEFIT AND HUMAN DEVELOPMENT. It is directly concerned with the understanding, predicting, and controlling of human behaviour. It represents the behavioral approach to management - not the whole of management. It is not to be equated with the industrial psychology. For E.g., organizational structure and management processes, say, decision making play a direct role in OB, but they are indirectly discussed in industrial psychology. It is directly concerned with the conceptual and human side of management, but not with the technical side.
Organisational behaviour has been defined by:

Keith Davis: As a study of human behaviour at work. Fred Luthans: As understanding, prediction and control of human behaviour in the organisation. Stephen Robbins: As a study that investigates the impact, individuals, groups and structure have on human behaviour within the organisation. S. K. Kapoor: As a systematic study of actions and reactions, the people working in an organisation in order to improve the overall organisational performance.
ELEMENTS or Factors OF O.B. - There are 4 key elements of ob, which are as under: The People - An Organisation is a well-knit social system. People work in organisations. They constitute individuals and groups. Even in groups, there could be formal as well as informal classifications. People join organisations to achieve their objectives. Although people have a few things in common, each person is individualized, just as their palm prints. Heredity, endowment, social institutions contribute their share toward make up of individuals. The objective of Organization Behaviour is to develop a BETTER EMPLOYEE, A BETTER CITIZEN AND A BETTER MAN. The structure - In organisations we find two types of social systems, namely, the formal, and the informal, both of which coexist. It means that an organization's environment is dynamic, and not static. All parts are interdependent and each part is influenced by other parts. People need organisations, and organisations need people, is to state the obvious. If there is no sense of mutuality, there is any reason why at all organisations cannot attain their objectives without the people element there in, and so is true in reverse. The Environment - All organisations operate within an external environment. An organisation is a larger part of a social system. The external environment influences the Attitudes of people, affect work conditions, and provide resources. The Technology - Technology helps people work with machines, tools, and the like. Thus, they are able to produce more of goods and services, and offer them to the society. It helps people to do better work, but technology elements have both cost and benefit implications.
The important fundamental concepts of organisational behaviour are as follows:
Every individual is different - Every person is different with respect to his/her age, education, knowledge, skills, attitude, physical health, mental health, personality, etc. Therefore, each person should be treated separately while managing people. Every individual is a complete person - The employee has his/her individual knowledge, skills, attitude, opinions, views, likes-dislikes, family background, social background, biases/ prejudices, etc. People spend more than half their lifetime in the organisations for which they work. Naturally, they expect to be happy on-the-job as well as off-the-job. All behaviour has Cause-effect Relationship - Every person behaves as per his/her thought process and believes that the behaviour is correct, because the person has certain beliefs and faith. It is necessary for managers to understand these beliefs and faiths of the people and also the cause-effect relationship behind the behaviour, if they want to be effective in their managerial functions. Every individual has self-esteem - People are different from machines and materials. They can think, smile, laugh; they have feelings and emotions. They have self-respect and prestige. They are live entities, unlike machines or tools and equipment. Therefore, they should not be treated like machines or materials. An organisation is a social system - an organisation is a social system. Therefore, the organisational behaviour of people depends upon the social and psychological values and systems. Mutual interests are inter-dependent - As organisation needs people, people too need the organisation. The organisation wants to fulfill its objectives of production of goods and services. The employees working in an organisation have their personal goals, for example, individual career goals, family goals, etc. A total view of the organisation the organisational structure, the management-employee relationships, the interpersonal and the inter-group relationships, the total personality of the employee, and the organisation as a total system. This helps managers understand human behaviour in the organisation. In turn, this results in the necessary co-ordination between the three major factors viz., organisation, management and employees.
GOALS OF O.B - There are 4 primary goals of OB, which are as under:Describe Understand Predict Control
Behaviour
OB IS A BEHAVIOURAL SCIENCE - Behavoiural science (Beh, Sc.) is considered to be a new science of an ancient subject. The primary difference between beh.sc and other social sciences lies in its methodology, a beh.sc. Depend upon rigorous scientific methodology in the collection of empirical data on human behaviour. The other social sciences use indirect documentary practice in building their body of knowledge, Why man behaves the way he does is a very complex process. The problem is so great that many people argue that there can be no precise science of behaviour. Human beings cannot be effectively controlled CONTRIBUTING DISCIPLINES TO O.B. - OB is applied beh.sc and is built upon contributions from a number of behavioural disciplines. They are- Psychology, Sociology, and Social psychology. Anthropology and Political science. Contributions of psychology operate at MICRO levels, while other contributions operate at the MACRO level. PSYCHOLOGY - Individual or general psychology has been defined in many ways- It is called the science of soul, the science of mind, the science of behaviour. Psychology seeks to measure, explain, and sometimes the behaviour of men. Psychology attempts to study individual behaviour. Psychologists concern themselves with perception, learning, personality, training, job satisfaction, leadership and motivation. SOCIOLOGY - Sociologists have contributed to the areas of group dynamics, organisation theory and structure, bureaucracy, power and conflict. Sociology focuses attention on people in relation to fellow human beings. SOCIAL PSYCHOLOGY - This deals with interpersonal behaviour. In a broad sense, we can say that social behaviour involves one of the three basic reactions. When an individual meets another individual, there is social interaction. Bach individual affects the other individual with whom he comes into contact and is in turn affected
by them. Secondly, the Individual may be interacting with a group- Then also, behaviour gets affected. Finally, interaction of one group with the other groups. ANTHROPOLOGY - Anthropology is the science of man. Anthropologists study society, particularly the primitive ones to learn about human beings and their activities. How we behave is a function of culture- Our individual values system will affect our attitudes and behaviour on the job. Thus, anthropology teaches how our culture affects organizational Behaviour.
Why is the study of OB important for managers? With the growing number of organisations, rapidly changing technologies and increasing complexity of organisational structures, the importance of people in the organisations cannot be over-emphasized. At the beginning of the industrial revolution, people were considered commodities' that could be hired' and fired' but, during the last 100 years, things have changed very fast. Both, the employers and the employees have realized that the relationship between them is not that of Master Servant', but like Partners in progress'. Therefore, understanding people has become important, if not more important, as understanding machines and materials. People are called Human Resources' because they are not commodities, but have become resources. Managements have become aware that they have to treat their employees as human beings and not as machines or materials. Therefore, understanding the Organisational Behaviour of their employees has become extremely important for the managers of tomorrow. In the modern world, organisations are becoming increasingly complex with rapidly changing technology. As a result, organisations are demanding more and more from their employees. People are living resources with feelings, emotions and responses unlike machines or commodities. They cannot be treated like machines or materials but need psychological treatment. Hence, the study of organisational behaviour is of utmost importance today.
Scientific Management Unit 1

Meaning - The term scientific management is the combination of two words i.e. scientific and management. The word
"Scientific" means systematic analytical and objective approach while "management" means getting things done through others. In simple words scientific management is the art of knowing best and cheapest way. It is the art of knowing exactly what is to be done by whom it is to be done and what is the best and cheapest way of doing it. Scientific methods and techniques are applied in the field of management i.e., recruitment, selection, training, placement of workers and methods of doing work in the best and cheapest way.
Definition: Scientific Management is an early management theory analyzing and improving workflows in factories
though the use of 'science'. Its main objective was improving economic efficiency, especially individual labor productivity. Its development began with Taylor in the 1880s and 1890s within the manufacturing industries. Many SM themes are still important parts of industrial engineering and management today. These include analysis, synthesis, logic, rationality, empiricism, work ethic, production efficiency, elimination of waste, direct reward mechanisms, and standardization of best practices, organizational structure, and knowledge transfer into tools, processes, and documentation. Also called 'Taylorism'. According to Fredrick Winslow Taylor, "Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way." According to Peter F. Drucker, Scientific management is the organized study of work, the analysis of work into its simplest element and the systematic improvement of the workers". According to Lioyd, Dodd and zynch, "Scientific management seeks to get the maximum from methods, men materials machines and money and it controls the works of production from the location and layout of the worker to the final distribution of the product."
The Scientific management can be studied under the following heads:
1. Primary principles of scientific management as evolved by F.W. Taylor - F.W. Taylor, the father of scientific management evolved the following five primary principle of scientific management: Science, not Rule of Thumb - Rule of thumb was the technique of pre-scientific management era. Taylor maintained that the rule of thumb should be replaced by scientific knowledge. While rule of thumb emphasizes mere estimation, scientific method denotes precision in determining any aspect of work. This should be done with the help of careful scientific investigation. Exactness of various aspects of work like day's fair work, standardization in work, differential price rate for payment etc. is the basic care of scientific management. Therefore, it is essential that these should be measured precisely and not on mere estimates. Harmony not Discord - Taylor emphasized that harmony rather than discord should be obtained in group action. Harmony means that a group should work as a unit and contribute to the maximum. Within it there should be mutual give and take situation and proper understanding. Co-operation not Individualism - Scientific management requires that parts of industrial body co-operate with each other, scientific management is based on mutual confidence, co-operation and goodwill. It requires a complete mental revolution on the part of both workers and management. Taylor suggested "Substitution of war for peace, hearty and brotherly co-operation for contention and strife, replacement of suspicious watchfulness with mutual confidence of becoming friends instead of enemies." The Development of each man to his greatest efficiency and prosperity - In order to maximize production all possible efforts are made to increase the efficiency of workers. Workers are selected according to the nature of work. It includes scientific training, scientific allotment of work, implementation of incentive wage plan above all, development of workers to the fullest extent for themselves and also for the companies highest prosperity. Scientific management leads to the development of each worker to his greatest efficiency and prosperity. 2. Secondary principles of scientific management. Standardization of Tools and Equipments - another principle of scientific management is the standardization of tools and equipments. It is essential for the improvement of quality of products and also for bringing about uniformity in the production of standard goods. As a matter of fact, standardization should be maintained in respect of tools, equipments, materials, period of work, working conditions, amount of work, cost of production etc. Scientific Selection and Training of Workers - Scientific management requires a radical change in the selection and training or workers. They must be selected on a scientific basis. The old traditional and absolute method of selection of workers has to be replaced by the scientific and modern methods. Taylor suggested that the workers should be selected on scientific basis taking into account their educational background, health, work experience, aptitude, physical, strength and I.Q. etc. Further, proper training by qualified persons should be given according to their capabilities and nature of work. Experimentation and Scientific Investigation - The success of scientific management depends upon experimentation and investigation. It involves analytical study, observation research, experimentation and investigation. It is only through constant experimentation and scientific investigation that one can find out the best and most efficient methods of doing a work. It has been rightly said that experimentation and investigation is the life-blood of scientific management. Under scientific management too. Incentive Wage System - Taylor for the first time advocated an incentive wage system in the form of differential piece wages instead of time wages. Under differential piece system two wage rates are prescribed, i.e. one lower and the other higher. Those who are unable to perform standard work within standard time are paid wages at lower rate per unit. On the contrary, those who attain standard or even more within the standard time are paid wages at higher rate per unit. Thus, there is considerable difference in wages between those who attain and those who do not attain standards. Efficient attain system - Another important principle of scientific management is the efficient costing system. It is an essential element of scientific management. The management is interested in knowing the cost of production not only total cost but cost at every stage of production. Besides, it must see there is no waste, and proper cost control has been ensured.
Scientific Allotment of Task - Another important principle of scientific management is the scientific allotment of task. Every job must be entrusted to the best available man according to his aptitude and training for that specific job. As a matter of fact, every person, however efficient he may be, cannot perform all the jobs efficiently. One has to carefully fit "the man to the job", and "the job to the man". The principle of 'right job to the right person' should be implemented. A worker may perform his task most efficiently provided it suits his inclination aptitude taste and capability.
Characteristics / Features of Scientific Management

Approach: It is a systematic, analytical and objective approach to solve industrial problems. Economy: The basis of scientific management is economy. For implementing economy, all the unnecessary elements of production are eliminated and a sincere effort is made to achieve optimum production at the minimum cost. A Definite plan: The main characteristic of scientific management is that before starting and work there must be a definite plan before as and the work is to be done strictly according to that plan. Discards old methods: It discards the age old methods of rule of thumb and hit or miss approaches. Emphasis: It lays emphasis on all factors of production, men, material and technology. Techniques: It implies scientific techniques in methods of work, recruitment, selection and training of workers. Attempts: It attempts to develop each man to his greatest efficiency and prosperities. Method: It attempts to discover the best method of doing a work at the cheapest cost. A definite Aim: Scientific management is the process of organizing, directing, conducting and controlling human activities. Hence there must be a definite aim before the managers, so that the human activities be organized directed conducted and controlled for achieving that aim or aims. Changes in attitude: It involves a complete change in the mental attitude of workers as well as the management. A Set of Rules: There must be a set of rules in accordance with the laid plan so that the objectives can be achieved. According to F.W. Taylor, It is no single element but rather the whole combination that constitutes the scientific management.
Advantage of Scientific Management Theory

It provides useful information on which to base improvement in working methods. It leads to increase in productivity. It stimulates the management into adopting a more positive role in leadership. It contributes to major improvement in physical working environment for the employees. It provides the foundation on which modern study and other quantative techniques could be soundly based. Decrease inaccuracy: it helps to decrease inaccuracy Benefits of management and works Decrease autocracy: it helps to decrease autocracy Piecework pay system: Payment depended on piecework basis which taken as an incentive to maximize productivity and produce high wages for the workers. Instant decision making: it helps to making decision instantly. Early working method and control: scientific management involves developing a management methodology, selecting and training employees, and supervising them closely.
Disadvantage of Scientific Management Theory

It reduces the workers role to that of rigid and adherences to methods and procedures over which the employees have no description. It leads to fragmentation of work on account of its emphasis on the analysis and organization of individual task or operations. It puts planning and control of the workplace activities exclusively in the hands of the management. It rules out any realistic bargaining of the wage rates since jobs are measured, timed and rated scientifically.
Investment of huge capital: Scientific management is a costly system and a huge investment is required in establishment of planning dept., standardization, work study, training of workers. Probability of financial loss: lots of change to financial loss. Increasing the planning cost: Scientific management is a costly system and a huge investment is required in establishment of planning dept., standardization, work study, training of workers than others management systems. Lack of flexibility: Monotonous: Due to excessive specialization the workers are not able to take initiative on their own. Fraud: There is chance to fraud activities Non democracy: there is weakening of trade union as everything is fixed & predetermined by management. Unemployment: Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity fewer workers are needed to do work leading to chucking out from their jobs. Rapid flexible: scientific management drives the workers to rush towards output and finish work in standard time Over speeding - the scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers.
Systems Approach to Management - Unit 2

A system is a set of inter-connected and inter-related elements directed to achieve certain goals. This theory views organisation as an organic and open system composed of many sub-systems. As a system organisation is composed of a number of sub-systems viz. production, supportive, maintenance, adaptive managerial, individuals and informal groups. All these sub-systems operate in an interdependent and interactional relationship. The various subsystems or parts of an organisation are linked with each other through communication, decisions, authority responsibility relationships, objectives, policies, procedures and other aspects of coordinating mechanism. Organizations as systems have a variety of goals. The important among them are survival, integration and adaptation with environment and growth. "All organizations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things." - Tom Northup Systems approach is an approach that entails analysis of problems and come up with a blend of solutions. It is a generally approach that involves tackling problems in an advanced disciplined manner keeping priorities in mind. It is a branch of systems thinking process. The entire system can be broken into three parts namely - input, process and output. Input involves the raw materials, funds, technology, etc. The process refers to activities related to management, technology, operations, etc. Outputs are the products, results, etc. The response or feedback in a system focuses on the information and data which is utilized for executing certain operations. These inputs aid in correcting the errors found in the processes.
It is a management approach which enables the leadership to see the company as a unified part or a major section of the larger outside corporate environment. Even a small activity in a section of a company has a substantial effect on other sections of the company. Such a system may be biological, physical or social, and may enable the management to efficiently determine the long-term goals of the company. The systems approach states that, for realizing the operations of an entity, it is essential to see the entity as a whole system.
Feature of System approach - The major features of the approach to the study of management may be summed up
as under: A system consists of inter-related and interdependent parts. The approach emphasizes the study of the various parts in their inter-relationships rather than in isolation from each other. The approach brings out the complexity of a real life management problem much more sharply than any of other approaches. The approach may be utilised by any of the other approaches. The approach has been utilised in studying the function of complex organisations and has been utilised as the base for new kinds of organisation.
Elements of a System - A system is made of different subsystems: internal and external. These subsystems are
interconnected and influence each other and the system as a whole. Each of the subsystem interacts with the adjacent subsystem and they work in synergy for the betterment of the entire system. The limits, within which the internal subsystems function, are determined by the system boundary. The external subsystems, on the other hand, are those which lie outside the boundary limits, but still influence the system
For example: In a supermarket, the various subsystems are the marketing and advertising, sales, admin and finance department. These are the internal subsystems that lie within the boundary. The external subsystems here are the buyers or the customers who visit the store. Only when all these subsystems work together, the system is said to function effectively. Open and Closed System - The organization can act as an open or a closed system. An open system is the one where the elements of the system can interact with the environment. This interaction can involve the transfer of material, information or manpower. The purchase department in any
organization can be an example of open system. The buyers have to interact with suppliers (environment) and other internal departments to carry out the purchasing activity. A closed system is the one which does not interact with the environment at all. There is no exchange of information, material or manpower between the system and environment. It is sometimes referred as an 'isolated system'. An assembly line can be treated as a closed system if it does not interact for supply of raw materials. A research department can also be an example of closed system. All individual elements are highly dependent on each other, so a change in any one of them may disturb other sections. The company can analyze its current position and then look for areas where improvement is needed. For this, the organization can frame a set of questions based on the seven areas and look for answers for the same. Once the lacking areas are identified, the right action can be taken. The systems approach to management is the key to coordinate all the processes in a large company, and define the importance of individual procedures in the firm.
Advantages of Systems Approach in management

It concentrates on end results rather than the means. It provides an orderly and efficient plan of action. It develops coordination of the specialized activities. It provides a good basis of control It frees management from many daily details of operations management.
Human relations approach to Management - Unit 2

A "relational strategy of organizing" is more commonly called the "human relations approach" or "human relations school" of management by organizational theorists. This human relations approach can be seen as being almost entirely antithetical to the principles of classical management theory. Where classical management focused on the rationalization of work routines, human relations approaches stressed the accommodation of work routines and individual emotional and relational needs as a means of increasing productivity. Scientific management remained concerned tithe the efficiency and productivity of workmen at the shop floor. Fayols functional approach to management aimed at improving the managerial activities and performance at top level in the organization. Between 1925, opinion of many experts was directed towards the human element or aspect of the organization. They drew their attention from work emphasis to worker emphasis. It was clearly felt that earlier approaches to management were incomplete and insufficient in that there was little recognition of the importance of workers as human beings, their attitudes, feelings, needs and requirements. In fact, the technical approach to work methods in scientific management did not produce durable and desirable results in all cases. Individual and group relationships in the work place often prevented maximum benefits to be derived from planning and standardization of work or monetary rewards offered for efficiency. Elton Mayo is the founder of this theory.
The basic principles of the human relations approach are as follows:

Decentralization -- The strict notion of hierarchy employed by classical management theorists is replaced with the idea that individual workers and functional areas (i.e., departments) should be given greater autonomy and decision-making power. This requires greater emphasis on lateral communication so that coordination of efforts and resources can occur. This communication occurs via informal communication channels rather than the formal, hierarchical ones. Participatory Decision-Making -- Decision-making is participatory in the sense that those making decisions on a day-to-day basis include line workers not normally considered to be "management." The greater autonomy afforded individual employees -- and the subsequent reduction in "height" and increase in span of control of the organizational structure -- requires that they have the knowledge and ability to make their own decisions and the communication skill to coordinate their efforts with others without a nearby supervisor. Concern for Developing Self-Motivated Employees -- The emphasis on a system of decentralized and autonomous decision-making by members of the organization requires that those members be highly "selfmotivated" (that is, able to set their own task-related goals and monitor their own performance in achieving
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them). So one goal of managers in such an organization is to design and implement organizational structures that reward such self-motivation and autonomy. Another is to negotiate working relationships with subordinates that foster effective communication in both directions.
Hawthorne Experiments - The human relations approach to management developed as a result of a series of experiences (in all four) conducted by Elton Mayo and his associates F.J. Roethlisberger and W.J. Dickson at the Hawthrone plant of the Western Electric Company at Chicago in United States. The Hawthrone studies were aimed at finding out what factors really influenced the productivity and work performance of workers. These experiments were made with respect to different levels of illumination in the work place changing in working conditions like hours of work, lunches, test periods and how group norms affect group effort and output.
Human Relations Concepts: Findings of Hawthorne Studies - The main findings of Hawthrone studies were as
follows: Physical environment at work place (i.e., working conditions) do not have any material effect on the efficiency of work. Social or human relationship influenced productivity more directly than changes in working conditions. Favourable attitudes of workers and work-teams towards their work were more important factors determining efficiency. Fulfillment of workers social and psychological needs have a beneficial effect on the morale and efficiency of workers. Employee groups formed on the basis of social interactions and common interest exercised a strong influence on workers, performance. In other words, informal organization controlled the norms established by the groups in respect of each members output. Workers cannot be motivated solely by economic reward. More important motivators are job security, recognition by superiors and freedom to take initiative and to express their individual opinions as matters of their own concern.
Contingency or Situational Approach of Management - Unit 2

Definition - A contingency approach to management is based on the theory that management effectiveness is contingent - or dependent - upon the interplay between the application of management behaviors and specific situations. In other words, the way you manage should change depending upon the circumstances. One size does not fit all. The contingency approach is a method of business management derived from the Contingency theory. The Contingency theory assumes that there is no best way to manage a business because businesses and situations differ to a great extent. A management approach that works for one company may not work for another. Even within the same organization, management methods may vary depending on the situation. This theory recognizes the situational nature of management. According to this theory is based theory, management is absolutely situational. Manager practice depends upon situation. Contingency theory is based upon situation. Contingency theory is based on the nature and condition of situations. Every situation is unique, different situations demand different managerial practice. Managerial practice appropriate in one situation cannot be generalized in other situation. According to this theory, the technique of problem solving appropriate in one situation may not be applicable in other situation. There is no one best method of doing. There is no one best method of planning, organizing, directing and controlling, before managing the organization and before handling the problem. Manager must analyze, situation or conditions according to situation, he \she must apply managerial practice. This theory does not agree with universal application of management principles. Different factors affect this theory or there are 6 major contingency variables. They are: Size of organization Task technology Environmental uncertainty Geographical spread of organization The type of work being done Individual differences.
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A Classic Example of Contingency Approach Use - The contingency theory may be applied to human resources and
a companys bank of human capital. Employees may be hired, trained and laid-off depending on the current needs of the organizations. Businesses with fluctuating employee needs may have outsourcing as part of the contingency approach. Contingency approaches maybe used in conjunction with situational leadership theories. Situational leadership theory matches the business leaders level of involvement and level of delegation to the abilities and attitudes of the employees in the leaders workforce. When the employees abilities and attitudes shift, the leader adapts by changing levels of involvement and delegation.
Difference between Contingencies and Adaptation

Contingencies - The situational elements that change depending on the business or circumstance are called contingencies. Examples of contingencies include new technologies, new consumer markets and new competitors. To adapt to contingencies, businesses using the contingency approach identify and understand the contingency and then select the management approach that bests fits the situation. Managers may keep a detailed list of contingencies along with matching adaptation plans. Adaptation - Adaptation is how business managers respond to contingencies. Managers are likely to choose an adaptation model from existing business management systems. Aspects of a business subject to adaptation include the organizations culture, the product, the manufacturing process, marketing, finances and business structure. Some contingencies only require small adaptations. For example a change in requirements for nutritional labels may lead to small manufacturing adaptations. A shift in consumer taste resulting in a massive sales loss could lead to adaptations in several areas including product, manufacturing and marketing.
Managerial Process, Function, Skills and roles in the organization - Unit 3

Management is defined as the process of working with and through others to achieve organizational objectives in a changing environment. The job of a contemporary manager can be conceptualized in many different ways. The most widely accepted approaches, however, are from the perspectives of basic managerial functions, common managerial roles, and fundamental managerial skills.
Managerial Functions - The functions which describe managerial job, when put together, make up the management process. This process is analyzed into key functions of management viz., planning, organizing, staffing, directing and controlling. Planning, organizing and controlling which deal mostly with non-human aspects are known as mechanics of management, whereas staffing and direction which are primarily concerned with human aspects constitute dynamics of management. In the conceptual scheme, though the functions are listed out in a sequence, I practice they are interlocked as a system. As all functions are not equally important for all managers, time spent by them for each of these functions varies according to their levels in the organization. These functions have been discussed below: 1. Planning: Planning refers to anticipate the opportunity, problems and conditions and choosing from among the alternative future courses of action. The planning process generally includes the following activities. Forecasting is looking ahead to anticipate the opportunity, problems and conditions in a future period of time. Establishing objectives means setting the end results to be accomplished by directing organizational efforts. Programming is establishing sequence and priority of actions to be followed in the attainment of the objectives. Scheduling is deciding on time sequence for program steps. Budgeting is allocation of resources to minimize costs. Establishing procedures means developing and applying standardized methods of performing a specific work. Developing policies involve establishment and interpretation of standing decisions that apply to repetitive questions and problems of significance to be organization as a whole.
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2. Organizing function: The organizing function of management is the process of defining and grouping of activities and creating authority relationship among them. It consists of Developing the organization structure which involves identification of task and grouping them into units or departments for performance. Delegating authority to the managers and making him responsible for group performance. Establishing relations creating conditions necessary for mutually cooperatives efforts of people in the organization. 3. Staffing: Planning the organization with suitable personnel constitutes the staffing function. It involves selection, training and development, compensation, and appraisal of subordinates by the manager. Manpower planning and manpower management looks after these activities and try to ensure suitable methods of remuneration and performance appraisal of the employees. 4. Directing Function: involves managing people and the work through the means of motivation, proper leadership, effective communication and coordination. A manager must develop ability to command. He should issue orders and instructions without arousing any resentment among the subordinates. He must be able to secure willing obedience from his subordinates without destroying their initiative and creativity. Moreover, it requires a sound communication system to enable exchange of ideas and information for common understanding. 5. Controlling Function: enables management to ensure that achievement is in accordance with the established plans it involves: Establishing performance standards for evaluating results. Performance on the basis of records and reports on the progress of work. Performance evaluation against the standards set. Corrective action to regulate operations, remove deficiencies and improve performance
Managerial Roles Unit 3

As a manager, you probably fulfill many different roles every day. For instance, as well as leading your team, you might find yourself resolving a conflict, negotiating new contracts, representing your department at a board meeting, or approving a request for a new computer system. Put simply, you're constantly switching roles as tasks, situations, and expectations change. Management expert and professor, Henry Mintzberg, recognized this. He argued that there are ten primary roles or behaviors that can be used to categorize a manager's different functions are divided into three groups: interpersonal, informational, and decisional. According to Mintzberg (1973), managerial roles are as follows: 1. Informational roles: This involves the role of assimilating and disseminating information as and when required. Following are the main sub-roles, which managers often perform: Monitor-collecting information from organizations, both from inside and outside of the organization. Disseminator-communicating information to organizational members Spokesperson-representing the organization to outsiders 2. Decisional roles: It involves decision making. Again, this role can be subdivided in to the following: Entrepreneur-initiating new ideas to improve organizational performance Disturbance handlers-taking corrective action to cope with adverse situation Resource allocators-allocating human, physical, and monetary resources Negotiator - negotiating with trade unions, or any other stakeholders 3. Interpersonal roles: This role involves activities with people working in the organization. This is supportive role for informational and decisional roles. Interpersonal roles can be categorized under three subheadings: Figurehead-Ceremonial and symbolic role Leadership-leading organization in terms of recruiting, motivating etc. Liaison-Liaoning with external bodies and public relations activities.
Organization behaviour Management Skills
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A manager's job is varied and complex. Managers need certain skills to perform the duties and activities associated with being a manager. What type of skills does a manager need? Robert L. Katz (1974) found that managers needed three essential management skills 1. Technical skills: The ability is to apply specialized knowledge or expertise. All jobs require some specialized expertise, and many people develop their technical skills on the job. Vocational and on the job training programs can be used to develop this type of skill. 2. Human Skill: This is the ability to work with, understand and motivate other people (both individually and a group). This requires sensitivity towards others issues and concerns. People, who are proficient in technical skill, but not with interpersonal skills, may face difficult to manage their subordinates, To acquire the Human Skill, it is pertinent to recognize the feelings and sentiments of others, ability to motivate others even in adverse situation, and communicate own feelings to others in a positive and inspiring way. 3. Conceptual Skill: This is an ability to critically analyze, diagnose a situation and forward a feasible solution. It requires creative thinking, generating options and choosing the best available option. A mark of a good leader is to be able to provide consistent motivation to his team encouraging them to attain excellence and quality in their performance. A good leader is always looking for ways to improve production and standards. Here are six management skills you can develop as a leader in working to create a quality effective team. 4. Diagnostic Skills Most successful managers also bring diagnostic skills to the organization. Diagnostic skills allow the manager to better understand cause-and-effect relationships and to recognize the optimal solution to problems. Of course, not every manager has an equal allotment of these four basic skills. Nor are equal allotments critical. For example, the optimal skills mix tends to vary with the manager`s level in the organization. First-line managers generally need to depend more on their technical and interpersonal skills and less on their conceptual and diagnostic skills. Top managers tend to exhibit the reverse combination-a greater emphasis on conceptual and diagnostic skills and a somewhat lesser dependence on technical and interpersonal skills. Middle managers require a more even distribution of skills.
Corporate social responsibility - Unit 4

Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change. Companies have a lot of power in the community and in the national economy. They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in "green washing", or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy/cleantech, and various social welfare initiatives to benefit employees, customers, and the community at large. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large "Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business" An obligation, beyond that required by the law, for a business to pursue long term goals that are good for society About how a company manages its business to produce an overall positive impact on society
Purpose: To identify and improve a companys impact on society and the environment, while driving stronger business results such as brand enhancement, market differentiation, and employee satisfaction.
Attributes:
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CSR is a behavioral and programmatic approach to shaping company actions and strategy CSR is more to do with the management of issues than the life cycle of the company or product or the set up of the company environment as a whole CSR addresses shareholders management more than stakeholder management (two terms I will explain in a later post) As aforementioned, CSR tends to emphasize the actions of the company e.g. CSR reports deal much more with the celebration of the past (as opposed to sustainability practices, which look towards the future
So CSR involves:
Conducting business in an ethical way and in the interests of the wider community Responding positively to emerging societal priorities and expectations A willingness to act ahead of regulatory confrontation Balancing shareholder interests against the interests of the wider community Being a good citizen in the community
There are four main parts to CSR:

Economic - Responsibility to earn profit for owners Legal - Responsibility to comply with the law Ethical - Not acting just for profit, but doing what is right, just and fair Voluntary and philanthropic Promoting human welfare and goodwill Being a good corporate citizen contributing to the community and quality of life
In what ways has the idea of corporate responsibility changed over the last fifty years?
Responsibility is made because of movements and people in the company taking an initiative Erosion of responsibility because they can lie to customers and do not have to pay Government failing because do not put in the resources and time to prosecute corporations due to misdeeds Greed and knowing how to manipulate the law keeps corporations from being held responsible Regulations are being eroded as well
Individual Behaviour - Unit 5

Individual behavior is the way in which one person acts apart from another person or group. Individual behavior can be different than anyone else and is personalize by that person.
Why to study Individual Behaviour?

Learn ones own behaviour pattern Interpret ones own behaviour pattern Take corrective measures to develop appropriate behaviour pattern for personal effectiveness Develop Self Competency Self Competency Understanding ones own personality Taking responsibility for managing oneself Assessing and establishing ones own developmental, personal and work related goals
VARIABLES OF INDIVIDUAL BEHAVIOURS - Variables that characterize and describe an individuals behaviours
result to a large extent from dynamic factors, personality variables, values as well as cognitive and physical abilities, leadership, and training. Identified as particularly relevant, the following variables were included in the model. Memory performance is the correctness and extent of recall of cognitive contents previously encoded.
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Speed of response refers to the speed with which an individual reacts to a cue and with which a person completes a response following response initiation. Risk taking is the degree to which an individual willingly undertakes actions that involve a significant degree of risk. Self-monitoring describes self-observation and control of ones expressive behaviour and self-presentation. Adaptive behaviour refers to any process whereby behaviour or subjective experience alters to fit in with a changed environment or circumstances or in response to social pressure. Conformity is the tendency to attempt to act in ways consistent with the majority. Cooperative behaviour is in effect when individuals work in common with commonly agreed-upon goals and possibly methods, instead of working separately in competition. Extra-role behaviour involves activities that are essential for organisational effectiveness but are discretionary in nature, e.g. acting courteously and helping others.
Behaviour
What is behaviour?
Behaviour is the pattern of how a person responds to a stimulus. Responses can be influenced by 1. Culture: the shared patterns of behaviors and interactions, cognitive constructs, and affective understanding that are learned through a process of socialization. These shared patterns identify the members of a culture group while also distinguishing those of another group. 2. Attitude: a hypothetical construct that represents an individual's like or dislike for an item; mental position relative to a way of thinking or being. The current popular usage of attitude implies a negative mindset, a "chip on the shoulder" behavior, and an inner anger toward the prevailing majority of thought. Emotion: a feeling that is private and subjective; a state of psychological arousal an expression or display of distinctive somatic and autonomic responses. 3. Values: beliefs of a person or social group in which they have an emotional investment (either for or against something) Ethics: response based on what is right; the process of determining how one should hold the interests of various stakeholders, taking into account moral values/principles 4. Authority: the power or right to give orders or make decisions Coercion: obtaining a response by use force; compelling a person to behave in an involuntary way (whether through action or inaction) by use of threats/intimidation Persuasion: obtaining a response by convincing a person; the process of guiding people toward the adoption of an idea, attitude, or action by rational and symbolic (though not always logical) means. It is strategy of problem-solving relying on "appeals" rather than force. 5. Genetics: inherited from parents; pertaining to genes or any of their effects
Perception - Unit 5
The Meaning of Perception - Perceptions vary from person to person. Different people perceive different things
about the same situation. But more than that, we assign different meanings to what we perceive. And the meanings might change for a certain person. One might change one's perspective or simply make things mean something else.
What Is Perception? Perception is the process of acquiring, interpreting, selecting, and organizing sensory
information. The word perception comes from the Latin perception-, percepio, meaning "receiving, collecting, and action of taking possession, apprehension with the mind or senses. Perception is our sensory experience of the world around us and involves both the recognition of environmental stimuli and actions in response to these stimuli. Through the perceptual process, we gain information about properties and elements of the environment that are critical to our survival. Perception not only creates our experience of the world around us; it allows us to act within our environment. Perception includes the five senses; touch, sight, taste smell and taste. It also includes what is known as proprioception, a set of senses involving the ability to detect changes in body positions and movements. It also involves the cognitive processes required to process information, such as recognizing the face of a friend or detecting a familiar scent.
Why Perception is Important?
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Because peoples behavior is based on their perception of what reality is, not on reality itself? The world that is perceived is the world that is behaviorally important.
Factors Affecting or influencing Perception

The Perceiver: When an individual looks at the target and attempts to interpreted what he / she sees. Such interpretation is heavily influenced by personal characteristics of the individual perceiver. The characteristics of perceiver include persons needs. Past experience, habits, personality, values, attitudes etc. For example: a negative attitude person interprets negative results and further makes negative perception. The Perceived or target (object): Characteristics of the target, which has been, observed also affects the individuals perception. The physical attributes, appearance and behavior of other persons in the situation also influences the perception. Physical attributes of the person means age, height, weight, gender etc. Loud people are easily noticeable in a group in comparison to the quite ones. Motion sound, size and other attributes of a target also affect the perception of an individual. Object which is perceived is not observed in isolation, the relationship of a target with its background also influences perception. Person, objects or events that are similar to each other also tend to be grouped together. Greater the similarity, the greater is the probability that we will tend to perceive them as a common group. The Situation: The physical, social and organizational setting of the situation also influences individuals perception. The situation in which we see objects or events is important. The element in the surrounding environment influences our perception. For example:- hearing a subordinate calling his / her boss by his / her name may be perceived quite differently when observed in an office as opposed to an evening social reception.
Fred Luthans has defined Perception as a complicated interaction of selection, organization and interpretation of stimuli. According to Luthans, The perceptual process comprises of External environmentConfrontationRegistrationInterpretation FeedbackBehaviourConsequence. Perceptual Process Objects in the environment ObservationPerceptual SelectionPerceptual OrganizationInterpretation Response Perceptual Selectivity Perceptual selection is the process by which people filter out irrelevant or less significant information so that they can deal with the most important matters.
Perceptual Selection is determined by - * External Factors * Internal Factors
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1. Internal factors affecting perception Family background: A good family background cultivates good perception. A bad family background breeds bad perception. Thus, parents, brothers and sisters play an important role in forming perceptions in the early stages of life of every individual. Educational background: Educational background plays an important role in forming perceptions of people. Generally, people having a good educational background are more likely to have a more logical /rational perception as compared to those without such background. In this regard, teachers, class- mates and friends play an important role, which has an effect on perception. Work experience: Work experience refers to the on-the-job' life in the organisation. Every employee has to interact with 3 different levels, viz. superiors, colleagues and subordinates. All interactions at all these three levels affect perception through experience. Social needs: Man is a social animal. Every individual has certain social needs in terms of a sense of belonging to a group. Satisfaction or dissatisfaction of these needs affects the perception of the individual. Individuals with fairly satisfied social needs have better perceptions than those with dissatisfied social needs. Psychological needs: Every individual has certain psychological needs in terms of self-esteem, status, ego, recognition, appreciation, etc. Satisfaction or dissatisfaction of these needs also affects the perception of the individual. Interests: The individual's interest in people/situations affects perception either favourably or otherwise. Generally, objects, situations or the people in whom the individual is interested create a positive perception. Expectations: This is the greatest factor that affects one's perception. If expectations are fulfilled, the perception is favourable. If otherwise, it is distorted and not so favourable. Generally, people see what they expect to see. Learning: Learning is a continuous process. The higher the learning, the better is the perception, because a learned person can look at the world from an enlightened point of view. Therefore, his perception is likely to be more positive than of one who is less learned. Moreover, people keep on modifying their perceptions of the world through the process of learning. Values: Perception and value always go hand-in-hand. Good values result in good perception, while bad values result in bad perception. Of course, good and bad are relative terms and it all depends upon the individual's background as per the above factors. Personality: Personality is the total result of an individual's perception, values and attitude. Personality and perception are mutually interdependent. 2. External factors affecting perception Familiarity: Familiarity with the other person/object/situation helps positive perception. Otherwise, it is negative or distorted, for example, a good friend in a large group is noticed first, a known person is given preference for appointments. This means that those individuals who are more familiar with each other have better perceptions about each other than those who are not. Status: Generally, people with high status are perceived with respect/ reverence and therefore listened to. On the contrary, people without any substantial status in society are not perceived favourably. A president, prime minister, a governor, a minister, a manager, an actor/actress, a social worker, a doctor, an advocate, a judge, a Nobel laureate etc. are better placed due to their high status. Status in the organisation/society affects the perception of the individual. Appearance: Your face is your fortune'. Appearance matters in developing a perception. Many times a handsome man or a beautiful woman with a smile is given preference over others due to positive perception. Your first impression depends upon your appearance viz., how you are dressed; how you talk/walk and whether your body language sends positive signals or negative signals. Intensity: The intensity of an individual/object/situation relates to the force with which it approaches you e.g. a person speaking loudly with emotionally charged words, an object coming at a very high speed towards you, an accident on the road, a very bright light glaring at you, a very loud noise of an explosion, a strong odour, etc. attract attention and affect perception. In other words, the intensity of the stimulus determines the attention and the perception of the individual.
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Size: The size of the stimulus (person or object) affects perception. For example, a very fat person arriving at a party or a very thin and lean patient in a hospital, bigger machines, larger pictures, a full page advertisement, etc. Attract attention and affect perception. Contrast: A contrast between the person/object and the background affects perception, for example, a black spot on a white paper, dark shirt and white pant, tall husband and short wife, very fair woman with a very dark man, black and white, fat and lean, bold and normal v/s italic and underlined, etc. Motion: A moving person/object is noticed rather than a stationary one. More particularly, a person/object moving at a very high speed is noticed quickly in perception. The objects that are moving or changing attract more than those which are stationary, for example, flashing neon signs, are more attractive than the nonflashing ones. Repetition: This principle states that a stimulus that is repeated gets more attention than the one that appears only once. The messages that are repeated frequently are perceived better than those that are given only once, for example, repetitive failures in one subject, successive victories at Wimbledon, headline news of riots, arson and killings, frequent failures of a particular machine, repeated absence of an employee, frequent job changes, constant rejection of jobs for quality, consistent losses in business, repetitive failure of a particular product in the market, etc. Novelty: An unusual sight is always noticed and perceived more quickly than a usual/routine matter, for example, a trapeze, a clown in a circus doing acrobatics, an elephant riding a bicycle in the circus, a tiger walking in the middle of the street in a city, a dog obeying the master's instructions, a parrot picking an envelope for the astrologer, monkeys doing acrobatics at the command of their master, a cobra dancing on a tune of the flute, etc. Sometimes, monotony brings boredom and overconfidence that result in the lowering of efficiency. A change in the job design, job content improves the perception of the job thereby improving efficiency.
The process of perception

Confrontation with the Stimulus: The individual comes face to face with another individual/group/situation/problem. Registration: The individual registers the stimulus and its gravity. Observation: The individual uses his/her sensory tools to observe the stimuli (e.g. sight, hearing, smell, touch, taste, etc.). Perceptual selection: The individual selects the data e.g. status, appearance, familiarity, size, intensity, contrast, repetition, motion, novelty, etc. Perceptual organisation: It is a process through which the incoming information is organized and patterned in a systematic manner e.g. figures ground principle, relevancy principle, role of the central nervous system, etc. Perceptual grouping: It is a process through which certain aspects of the data are screened/filtered e.g. continuity, closure, similarity, proximity, constancy, context, defense, implicit personality, self-fulfilling prophecy, Pollyanna-Nietze effect, etc. Interpretation: The individual tries to understand the real meaning of the situation and to interpret it for the effects. E.g. perceptual errors, perceptual defense, characteristics of the perceiver/perceived, attribution, stereotyping, halo effect, projection, contrast effect, first impression, impression management, etc. Evaluation and feedback: The individual evaluates the strengths and weaknesses in a situation and gives a quick feedback to the sensory and motor mechanisms for the next step. Response: The individual gives the response in terms of a reaction, which can be positive, negative or neutral. Depending upon the mutual interaction between the stimulus and the individual, the reaction of the individual to the stimuli can be: behaviour, covert feelings emotions, attitudes, motivation, expectations, etc.
Perceptual Organization
Figure-ground: Perceived objects stand out as separable from their general background. In the context of organizations, a company may import a new technology in order to compete in the globalized economy. Here import of a new technology is a figure and global competitive environment is the background. The employees will immediately notice the installation of new technology whereas the global competitive environment is not visible by naked eyes.
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Perceptual grouping: There is a general tendency among individuals to group several stimuli together into a recognizable pattern. There are certain underlying uniformities in grouping. When simple constellations of stimuli are presented to people, they tend to group them together by closure, continuity, proximity, and similarity. Continuity: An individual tend to perceive continuous lines/patterns. This leads to inflexible thinking on the part of organizational members (both managers and employees). Thus, only the obvious, continuous patterns or relationships are perceived. For example, a new design for some production process or product may be limited to obvious flows or continuous lines/patterns. New innovative ideas or designs may not be perceived. Similarity: The greater the similarity of stimuli, the greater is the tendency to perceive them as a common group. Similarity is conceptually related to proximity but in most cases stronger than proximity. In an organization, all employees who wear blue collars may be perceived as a common group, when in reality, each employee is a unique individual. This might also lead to perceptual error termed as stereotyping. Perceptual Constancy: There are two issues. While objective reality of stimuli remains unchanged, peoples subjective reality also remains constant. That is, the individual is likely to give meaning to stimuli in the same way whenever exposed to them unless and until objective reality has been revealed more broadly by way of undoing the perceptual errors. For example, a manager in the company who believes that female employees are poor performers would continue to have the same perception until and unless the latter prove that they are better than their male colleagues. Perceptual Context: It gives meaning and value to simple stimuli in the environment. The organizational culture and structure provide the primary context in which workers and managers perceive things. Thus, a verbal order, an e-mail message, a new policy, a suggestion, a raised eyebrow, a pat on the back takes on special meaning and value when placed in the context of work organization.
Perceptual Errors:
Accuracy of judgment: Similarity error: People are predisposed towards those having similar traits, socio-economic-cultural background. Contrast error: People tend to compare among the available resources and thus arrive at a conclusion that might be far from the objective reality. Race/gender/age bias: Peoples perception may be tempered by their prejudices vis--vis race, gender, and age. First impression error: People may hold a long-term view about a person or thing based on first impression. Perceptual defense: People tend to defend the way they perceive things. Once established, a persons way of viewing the world may become highly resistant to change. Sometimes, perceptual defense may have negative consequences. This perceptual error can result in managers inability to perceive the need to be creative in solving problems. As a result, the individual simply proceeds as in the past even in the face of evidence that business as usual is not accomplishing anything worthwhile. Stereotyping: It is the belief that all members of a specific groups share similar traits and behaviour. Most often, a person is put into a stereotype because the perceiver knows only the overall category to which the person belongs. However, because each individual is unique, the real traits of the person are generally quite different from those that stereotype would suggest. Halo effect: Under halo effect, a person is perceived on the basis of a single trait. It generally occurs during performance appraisal where the supervisor rates an employee on the basis of only one trait e.g. intelligence, punctuality, cooperativeness appearance etc. Projection: It is the tendency of seeing ones own traits in others. Thus, individuals project their own feelings, personality characteristics attitudes, or motives onto others. Projection may be especially strong for undesirable traits that the perceivers possess but fail to recognize in themselves. People whose personality traits include stingyness, obstinacy, and disorderliness tend to rate others higher on these traits than do people who do not have these traits.
Organization behaviour Value - Unit 5
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Values are a dominant force that shape and determine the individual personality and behaviour. Values may not be always written down or expressed. But, they are manifested through the behaviour of the individual and the groups. Individual values contribute to the group values. Values represent the basic conviction that a specific mode of conduct is acceptable or otherwise. Values have a great influence on the perceptions, attitudes and motivational patterns of people. Values are not constant; they keep on changing from person to person, place to place, time to time, situation to situation. Individual values may be different from group values. Values can be expressed by words, actions and behaviour.
Value may be defined as:

The worth of a person, an object or a situation which enables distinguishing between the right and the wrong, good and bad.' Values provide the standards of competence and morality Transcend specific objects/situations/persons Are relatively permanent and resistant to change Are most central to the personality of an individual Shape and determine behaviour in a group/society
Sources of Values - Values of individuals/groups come from different sources:

Family (parents, brothers and sisters) Society (schools, teachers, class-mates, friends, religious organisations, etc.) Workplace (superiors, colleagues, subordinates, customers, suppliers, etc.) Government (politics, economics, policies, ideologies, philosophies, etc.)
Classifications of Values
Theoretical Values: discovering the truth through a critical approach and reasoning. Aesthetic Values: form, shape, size, colour, proportions, quality, harmony, etc. Social Values: service, help, love, affection, co-operation, human relations, etc. Religious Values: religion, culture, custom, faith, traditions, etc. Political Values: power, influence, leadership, control, money, etc. Economic Values: exchange, usefulness, application, cost-benefit, balance of trade.
Types of Values - values can be broadly classified as two categories 1. Terminal Values- Terminal values are those, through which ultimate goals in life are sought to be achieved. The following are some examples of terminal values: A comfortable life and A happy retired life A sense of accomplishment A secure life Freedom and independence Self-esteem and Self-actualisation Social recognition A world of peace Truth and non-violence 2. Instrumental Values - Instrumental values are those, through which the ultimate goals are achieved. The following are some examples of instrumental values. Ambition Capability Cleanliness and Housekeeping Health and Safety Courage
Co-operation Honesty Pardon Logic and Rationality Politeness and Courtesy
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Personality - Unit 5
What is personality?
We use the word Personality' for attractive men or women. There is no doubt that attractiveness is an important factor of a personality. In other words, all good personalities are attractive. But, attractive people cannot be said to have good personalities. Why? Because attractiveness is necessary but not the only sufficient condition for being a good personality is a combination of many factors and qualities in an individual. Personal characteristic that lead to consistent patterns of behavior Observable patterns of behaviour that last over time (Trait theory) How the unconscious of an individual reacts to stimuli (Psychoanalytic theory) Self-actualization and the drive to realize ones potential (Humanistic theory) According to Slocum and Hellriegal, 'Personality represents the overall profile or combination of stable psychological attributes that capture the unique nature of a person. It combines a set of mental and physical characteristics that reflects how a person looks, thinks, acts and feels. S P Robbins observes that personality is sum total of ways in which an individual reacts to and interacts with others.
Personality Attributes
Internal Locus of Control: People who believe that they can control their own destinies are said to have internal locus of control External Locus of Control: People who believe that things happen just by accident or chance are said to have external locus of control. Authoritarianism: Following are the traits of an authoritarian person Intellectually rigid, Judgmental, Suspicious, Resistant to change, Respects highly placed people and Exploits subordinates Machiavellianism: Following are the traits of Machiavellian person Pragmatic , Keeps an emotional distance, Believes that ends justify means, Takes decision quickly and Takes greater risks Self-esteem - The degree of liking/disliking the self; indicator of: capability, importance, success, job satisfaction, etc. Self-monitoring - Ability to adjust with external factors. Striking contradictions in public and private and ability to play multiple/contradictory roles, etc. Tolerance for ambiguity - The degree of tolerance to uncertainty, ability to change without undue stress, and capable of working in a turbulent environment. Risk-taking - Time taken for decision-making, logical and rational decision-making, subsequent actions for moderate risks. Work-ethics orientation - Extremity leads to work holism, normality leads to effective management, balance between work and home results in a rational manager.
Personality types based on temperament

The sanguine type is cheerful and optimistic, pleasant to be with, comfortable with his or her work. The choleric type is characterized by a quick, hot temper, often an aggressive nature. Phlegmatic temperament. These people are characterized by their slowness, laziness, and dullness. Melancholy temperament. These people tend to be sad, even depressed, and take a pessimistic view of the world.
What shapes personality?
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Heredity: Heredity approach, the ultimate explanation of an individuals personality is the molecular structure of the genes, located in the chromosomes. However, the critics observe that if personality characteristics were completely dictated by heredity, they would be fixed at birth and no amount of experience/learning could alter them. Socialization: Socialization involves learning the following: Social customs Values Norms Attitudes Relationships Hierarchies Structures Environment plays an important role in shaping ones personality. People are greatly influenced by culture, values, and traditions, formal and informal groups etc. Person-situation interaction: An individuals personality, although generally stable and consistent, does change in different situations. Individuals react to different situations differently. Moreover, individuals may also react differently to an identical situation. Thus, person-situation interactions keep adding to overall development of ones personality.
Personality Traits - There are five core personality traits that best predict performance at the workplace.
1. Emotional stability: degree to which a person is relaxed, secure and unworried High emotional stability: Stable, Confident, Effective Low emotional stability: Nervous, self-doubting moody 2. Agreeableness: persons ability to get along with others High agreeableness: Warm, tactful, considerate Low agreeableness: independent, cold, rude 3. Extraversion: persons comfort level with relationship High on extraversion: Gregarious, energetic, self-dramatizing Low on extraversion: Shy, unassertive, withdrawn 4. Conscientiousness: the number of goals on which a person focuses High Conscientiousness: Careful, neat, dependable Low Conscientiousness: Impulsive, careless, irresponsible 5. Openness: persons curiosity and range of interests High on openness: Imaginative, curious, original Low on openness: Dull, unimaginative
Major Determinants of Personality

1. Biological factors - The following are some of the biological factors that determine personality: Heredity: Determined at conception, physical stature, facial, attractiveness, sex, temperament, muscle composition, reflexes, energy levels, biological rhythm, molecular structure of genes located in the chromosomes. Brain: Electrical Stimulation of the Brain (ESB) and Split Brain Psychology (SBP). ESB: Pleasurable v/s Painful areas; can be manipulated by ESB for reducing stress and increasing creativity. SBP: Planning on the left and Managing on the right (Henry Mintzberg); the left and the right hemispheres control specific characteristics. Physical characteristics and rate of maturing: Physical appearance is extremely important; children exposed to social situations mature faster than those who are not. 2. Family factors - The following are some of the family factors that determine personality: Family atmosphere Loving, warm, caring and stimulating atmosphere Cold, non-caring, non-stimulating atmosphere Basic discipline 3. Social factors - The following are some of the social factors that determine personality: Social culture Social status Traditions, customs 4. Cultural factors - The following are some of the cultural factors that determine personality:
Early formative years Independence and aggression Competition and co-operation Beliefs, perceptions, values and attitudes Towards self, family, society; organisations, work, money 5. Situational factors - The following are some of the situational factors that determine personality: Every individual is a complete person Every individual is different Every situation is different Every individual-situation interaction is different Different situation > Different demands > Different behaviour >Personality
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Attitude - Unit 5
What is attitude?
Attitude is a persistent tendency to feel and behave in a particular way towards some object. Broadly speaking, attitudes are general evaluations that people make about themselves, others, objects or issues that develop from past experience, guide our current behaviour and direct our development in future. These are relatively lasting feelings, beliefs, and behavior tendencies directed toward specific people, groups, ideas, issues, or objects. Attitude can also be defined as a multiplicative function of beliefs and values.
Attitudes consist of three components

Affective = feelings Cognitive = beliefs Behavioural = predispositions to act
Characteristics of Attitude
Valence (the degree of favourableness or unfavourableness to the object) Multiplicity (different perceptions and values create different attitudes) Need relationship (basic/security/social/psychological/selfactualisation) Centrality (represents the importance of the object and resistance to change)
Attitudes are a complex cognitive process that has three basic features:
They persist unless changed in some way, They range along a continuum, They are directed towards an object about which a person has feelings/beliefs
How attitudes are formed?

Social Learning: acquiring attitudes by way of social interactions and value system Direct Experience Modeling: acquiring attitudes by observing others.
Does attitude influence human behaviour?

Attitudes do not normally predict or cause behaviour in a simple and direct way. Three principles relate attitudes to behavior: General attitudes best predict general behaviors Specific attitudes best predict specific behaviors The less time that elapses between attitude measurement and behavior, the more consistent will be the relationship between them
What are various functions of attitudes? According to D Katz, there are four functions of attitude:
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Adjustment Function - Attitudes often helps individuals adjust to their work environment. When employees are well treated, they are likely to develop a positive attitude towards management and organization. When they are berated and given minimal salary increase, they develop negative attitude towards their management/organization. These attitudes help employees adjust to their environment and are basis for their future behaviour. Ego-defensive Function - Attitudes help people in defending their own image. For instance, an older manager whose decisions are continuously challenged by a younger subordinate may feel that the latter is brash, cocky, immature, and inexperienced. In reality, the younger subordinate may be right in challenging the decisions. The older manager may not be an effective leader and may constantly make poor decisions. However, the older manager may not admit this. Rather he will protect his ego by putting the blame squarely on the younger subordinate. He will develop a negative attitude towards the younger subordinate. On the other hand, even the younger subordinate will develop a negative attitude towards the older manager. He will think that the boss is not doing his job properly. Thus he will protect his own ego. Value-Expressive Function - Attitudes provide people with a basis for expressing their values. For instance, a manager who believes strongly in the work ethic will tend to voice attitudes towards specific individuals or work practices as a means of reflecting this value. A supervisor who wants a subordinate to work harder may put it this way: You have got to work harder. That has been a tradition of the company since its inception. It helped us get where we are today. Knowledge Function - Attitudes also provide standards and frames of references that allow people to organize their worldview and express them emphatically. For instance, a trade union leader may have a negative attitude toward management. This attitude may not be based on fact but it does help the individual relate to the management.
What are job related attitudes?

Job Satisfaction Job satisfaction describes how content an individual is with his or her job. H M Weiss has been defined Job satisfaction as a pleasurable emotional state resulting from the appraisal of ones job an affective reaction to ones job and an attitude towards ones job. Job satisfaction can be influenced by a variety of factors, e.g. the quality of one's relationship with their supervisor, the quality of the physical environment in which they work, degree of fulfillment in their work, etc.
Mechanism of changing or alter attitudes

Compliance: applying subtle pressure on the individual to comply with a particular norm either by threat of punishment or by promise of reward Identification: Change agent influences the individual with his own attributes that is so powerful that people start identifying with him and following his way of looking at things. Internalization: new attitude is integrated with other attitude and becomes a part of individuals personality. Providing new information Fear arousal or reduction Dissonance arousal (dissonance leads to inconsistencies in attitude and behaviour causing unpleasant feeling which results in change in attitude) Position discrepancy Participation in decision-making
Factors affecting Attitude

Family background Early socialisation Educational background Work experiences Group affiliation Personal experiences
Manifestations of Attitudes
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Job satisfaction: Generally, an individual employee who has a positive attitude has a high level of job satisfaction. This helps in decision making, interpersonal communication and group relationships. Job involvement: This measures the degree to which the individual identifies with the job and considers performance level as important. High level of job involvement is related to fewer absences, lower employee turnover and a positive attitude. Organisational Commitment: This measures the identification of individual goals with those of the organisation. This results in a high level of commitment and loyalty to the organisation. This is also a manifestation of positive attitude.
Attitude at a Glance
Attitude is an inseparable part of human nature and is normally dormant. Attitude is acquired through early socialisation, education and work experience. Attitude is often based on limited knowledge/information/experience. Attitude becomes apparent through speech or behaviour in response to an individual, object or situation. Attitude can be rational or irrational irrespective of the individual's intelligence. Attitude is reinforced by beliefs (cognitive component), strong feelings (affective component) and behaviour (action component). Attitude has a bearing on the individual's thinking or behaviour. Opinion and emotion based attitude is more intense in expression and attachment. Attitude appears logical to the individual holding it, but illogical/ inconsistent to a neutral observer. Attitude is rationalised and justified by the individual by (often subconsciously) selective illustrations and experiences. Attitude based on rational consideration of facts is comparatively easier to change rather than the one based on strong emotional bias and opinions. Attitude is learned over a period of time. Therefore, it can be changed by the same process and reversed (delearning).
Learning - Unit 5
MEANING AND DEFINITION - Learning is defined as a relatively permanent change in behavior that occurs as a result
of prior experience. Learning is understood as the modification of behavior through practice, training, or experience. This is supplemented with five important components of learning: Learning involves change: a change may be for good or bad. Change may not be evident until a situation arises in which the new behavior can occur. Learning is not always reflected in performance Not all changes reflect learning: to constitute learning, change should be relatively permanent. Temporary changes may be only reflective and fail to represent any learning. This requirement, therefore, rules out behavioral changes caused by fatigue or drugs. Learning is reflected in behavior: a change in an individuals thought process or attitude, not accompanied by behavior, is no learning. It should be further clarified that learning needs to result in behavior potentiality and not necessarily in the behavior itself. The reason for this distinction lies in the fact that an individual may learn but owing to lack of motivation, may not exhibit any changed behavior. The change in behavior should occur as a result of experience, practice or training: this implies that behavior caused from maturity, disease, or physical damages does not constitute learning. The practice or experience must be reinforced in order for learning to occur: if reinforcement does not accompany the practice or experience, the behavior will eventually disappear. Though not implied in any standard definition of learning: contrary to popular belief, learning is not confined to ones schooling. Learning occurs throughout ones life.
THEORIES OF LEARNING - There are four theories which explain how learning occurs. They are
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1. Classical conditioning - Classical conditioning is based on the premise that a physical event termed a stimulus that initially does not elicit a particular response gradually acquires the capacity to elicit that response as a result of repeated pairing with a stimulus that elicits a reaction. The first model, classical conditioning, was initially identified by Pavlov in the salivation reflex of dogs. Salivation is an innate reflex, or unconditioned response, to the presentation of food, an unconditioned stimulus. Pavlov showed that dogs could be conditioned to salivate merely to the sound of a buzzer (a conditioned stimulus), after it was sounded a number of times in conjunction with the presentation of food. Learning is said to occur because salivation has been conditioned to a new stimulus that did not elicit it initially. The pairing of food with the buzzer acts to reinforce the buzzer as the prominent stimulus. 2. Operant conditioning - Operant conditioning also called instrumental conditioning refers to the process that our behavior produces certain consequences are. If our actions have pleasant effects, then we will be more likely to repeat them in the future. If, however, our actions have unpleasant effects, we are less likely to repeat them in the future. Thus, according to this theory, behavior is the function of its consequences. The famous Skinner box demonstrated operant conditioning by placing a rat in a box in which the pressing of a small bar produces food. Skinner showed that the rat eventually learns to press the bar regularly to obtain food. Besides reinforcement, punishment produces avoidance behavior, which appears to weaken learning but not curtail it. In both types of conditioning, stimulus generalization occurs; i.e., the conditioned response may be elicited by stimuli similar to the original conditioned stimulus but not used in the original training. 3. Cognitive theory - Contemporary perspective about learning is that it is a cognitive process. Cognitive process assumes that people are conscious, active participants in how they learn. Cognitive theory of learning assumes that the organism learns the meaning of various objects and event and learned responses depending on the meaning assigned to stimuli. Edward Tolman (1930) found that unrewarded rats learned the layout of a maze, yet this was not apparent until they were later rewarded with food. Tolman called this latent learning, and it has been suggested that the rats developed cognitive maps of the maze that they were able to apply immediately when a reward was offered. The cognitive theory of learning is relevant in the contemporary managerial practices. Many motivation theories center on the concept of cognition. Expectations, attributions and locus of control are all cognitive concepts requiring attention while motivating employees. 4. Social learning theory - Also called observational learning, social learning theory, emphasizes the ability of an individual to learn by observing others. The important models may include parents, teachers, peers, motion pictures, TV artists, bosses and others. An individual acquires new knowledge by observing what happens to his or her model. This is popularly known as vicarious learning. A learner acquires tacit knowledge and skills through vicarious learning. Social learning increases self-efficiency because people gain greater self-confidence after observing someone else do it than if they are simply told what to do. Managers can shape employee behavior by systematically reinforcing each successive step that moves the individual closer to the desired response. If an employee, for example, who has been chronically a half-hour late for work comes in only twenty minutes late, the boss can reinforce that improvement.
PRINCIPLES OF LEARNING - Principles of learning are highly useful for trainer in order to impart maximum knowledge and skills to the trainees. However, blind adherence to these principles can cause more harm than good. Each principle should, therefore, be interpreted and applied carefully in full consideration of the particular task being learned and the most important of them are Motivation - The concept of motivation is basic because, without motivation learning does not take place or, at least, is not discernible. Motivation may be seen at different levels of complexity of a situation. A thirsty rat will learn the path through a maze to a dish of water; it is not likely to do so well, or even more purposefully at all, if it is satiated. Reinforcement, punishment and extinction - Reinforcement issued to enhance desirable behavior; punishment and extinction are employed to minimize undesirable behavior. Whole versus part learning - A great deal of work has been done in psychology of learning to decide whether learning a whole job is superior to breaking the job into parts and learning the parts. In parts learning, the
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individual is not only required to learn each individual part but must be able to combine the separate parts so that the whole performance can be accomplished. Learning curves - A highly useful learning concept which is valid for a wide range of situation is the learning curve, a diagrammatic presentation of the amount learned in relation to time. A typical learning curve will show on the Y-axis the amount learnt and the X-axis the passage of time. Meaningfulness of material - A definite relationship has been established between learning and meaningfulness of the subject learnt. The more meaningful the materials, the better does learning proceed. Learning of nonsense syllables proceeds more slowly than that of prose or poetry. Learning styles - A managers long-term success depends more on the ability to learn than on the mastery of the specific skills or technical knowledge. There are four styles people use when learning: accommodation, divergence, assimilation and convergence. The four styles are based on dimensions: feeling versus thinking and doing versus observing.
LEARNING AS A MANAGERIAL TOOL

Stimulus generalization in organizations: Stimulus generalization refers to how people recognize the same or similar stimuli in different settings. In other words, it is the process by which they can generalize a contingent reinforcement from one setting to another. Stimulus discrimination in organizations: Stimulus discrimination is the ability to recognize differences among stimuli. As in stimulus generalization, the person learns the basic stimulus-response-consequence sequence for one stimulus. When confronted with a new stimulus, however, he can discriminate between the two stimuli and respond differently Learning and training: Learning is the major objective of training. If conducted keeping learning principles in mind, training becomes effective. Many organizations devote vast resources to training and development to expand the skills and abilities of their employees Learning through feedback: Feedback is any information that people receive about the consequences of their behavior. Feedback has a powerful effect on behavior and job performance by improving role perceptions, ability and motivation. With regard to role perceptions, feedback lets people know what behaviors are appropriate or necessary in a particular situation. Feedback improves employee ability by frequently providing information to correct performance problems. Employee indiscipline: Employee indiscipline exhibited in such acts as drunkenness on the job, late arrivals to work, insubordination, stealing company property and the like is common. Every manager is frequently confronted by such indiscipline. The manager will respond with disciplinary actions such as, verbal warnings, oral reprimands, or temporary suspensions. Research on discipline shows that the manager should act immediately to correct the problem, match the severity of punishment and the undesirable behavior. Punishment for indiscipline is hardly the answer to the problem.
WORK MOTIVATION - Unit 6 Motivation - In any organisation, people work not only for money, but also for job satisfaction and happiness. The
manager has to communicate and lead and also motivate his subordinates to work. To a large extent, the success of the manager's leadership abilities depends upon his ability to motivate his people to work. Motivation is a force or an impulse which makes a man move physically and mentally to achieve certain goals. Individual motivation is very important for group motivation. Although it is true that Money makes the mare go in modern business organisations, money is not the only motivating factor and has its own limitations. Money is only a means to satisfy wants. Motivation is something beyond that. Overall, the basic perspective on motivation looks something like this:
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In other words, you have certain needs or wants (these terms will be used interchangeably), and this causes you to do certain things (behavior), which satisfy those needs (satisfaction), and this can then change which needs/wants are primary (either intensifying certain ones, or allowing you to move on to other ones).
DEFINITION - Work motivation is a process to energize employee to the work goal through a specific path.
Process - This is not an object rather method or technique or art Energize - Developing inner urge to put effort on successful performance. Employee - Person employed to exchange his cognitive, affective and co native domains for achievement of organizational goal for salary etc. as contracted by the organization. Work goal - This is well defined, achievable and measurable Path - Specific roles and job responsibilities are measurable and related to goal achievement.
Importance of Motivation
Employees' performance is a result of their abilities and willingness. If and when the employees are able, but not willing, it is necessary to motivate them. Motivation is the force that moves a person physically and mentally to achieve goals. Individual motivation plays an important role in group motivation. Happiness and job satisfaction are functions of not only money but also needs and drives. It involves (influence of the leader + ability of the followers + role perception of both).
BARRIERS OF WORK MOTIVATION

Attitude to employees - Considering employee as cog of the machine rather as a human system having unique needs, abilities, personality traits, values, aptitudes, skills etc. Work Goal - Undefined, unachievable and unmeasurable Path - Job responsibilities are undefined, unachievable, unmeasurable and unrelated to work goal. Leadership - Leadership failure in manipulation of incentives. Third party - Influence of informal communication systems through colleagues, unions and family members
STRATEGIES TO OVERCOME BARRIERS

Job Analysis - More emphasis on personnel specification and regression analysis to determine weight age on job related individual characteristics. Human resource accounting - Accounting IQ, EQ, personality traits, aptitude profiles of each employee Selection - Selecting right man for right place at the right time. Attitude change - Employee as human system having specific needs, aptitudes, temperament, attitudes towards job and the organization Role clarity - Well defined job description and work roles. Introduce role drama for role understanding for both lower level employees and the managers. Training - Periodical training to the employees about up gradation of skills, work role analysis and to the leaders about leadership development (communication, manipulation of incentives, decision making etc). Survey - Periodical survey to study level of employee satisfaction, attitude towards organizational health and their relations to individual productivity and quality of working life for organizational diagnosis.. Introduce organization development programmes for attitude change in considering results of regression analysis. Work culture - Introduce quality circle, suggestion box system, and intermingle organization to the life style of the employees.
The Basic Theories of Motivation - Basically, the theories of motivation can be classified as follows:
Traditional theory - This theory is based on Scientific Management by F W Taylor who advocated that it is the manager's prerogative to decide the quantity, quality, the method of doing jobs and the system of financial compensation for work.
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Human Relations Theory - This theory is based on the research studies of Elton Mayo and Associates at the Hawthorne plant of the Western Electric Co. near Chicago (US), who proved that the output of employees does not depend only on extrinsic factors like working conditions alone, but also on the intrinsic factors of satisfaction of their social and psychological needs. The Human Resources Theory - This theory is based on the studies conducted by 20th century management experts including Abraham Maslow, Frederick Herzberg, David McClelland, Douglas McGregor, Peter Drucker, etc. who believed that people are motivated to work, not only by money alone, but also by the satisfaction of their higher order needs for authority, responsibility, achievement and meaningful work.
Maslow's hierarchy of needs - Unit 6

Abraham Maslow developed the Hierarchy of Needs model in 1940-50s USA, and the Hierarchy of Needs theory remains valid today for understanding human motivation, management training, and personal development. Abraham Maslow's book Motivation and Personality, published in 1954.The Maslow's Hierarchy of Needs five-stage model below (structure and terminology - not the precise pyramid diagram itself) is clearly and directly attributable to Maslow; later versions of the theory with added motivational stages are not so clearly attributable to Maslow. These extended models have instead been inferred by others from Maslow's work. Specifically Maslow refers to the needs Cognitive, Aesthetic and Transcendence (subsequently shown as distinct needs levels in some interpretations of his theory) as additional aspects of motivation, but not as distinct levels in the Hierarchy of Needs Where Maslow's Hierarchy of Needs is shown with more than five levels these models have been extended through interpretation of Maslow's work by other people. These augmented models and diagrams are shown as the adapted seven and eight-stage Hierarchy of Needs pyramid diagrams and models there have been very many interpretations of Maslow's Hierarchy of Needs in the form of pyramid diagrams.
Specific examples of these types are given below, in both the work and home context.
Need self-actualization esteem belongingness safety physiological Home education, religion, hobbies, personal growth approval of family, friends, community family, friends, clubs freedom from war, poison, violence food water sex Job training, advancement, growth, creativity recognition, high status, responsibilities teams, depts., coworkers, clients, supervisors, subordinates work safety, job security, health insurance Heat, air, base salary
Organization behaviour Herzberg two factor theory - Unit 6
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Herzberg's Two Factor Theory is a "content theory" of motivation" .Frederick Herzberg's two-factor theory, also known as the motivation-hygiene theory or intrinsic/extrinsic motivation, concludes that while there are certain factors in the workplace that cause job satisfaction, a separate set of factors can cause dissatisfaction. The factors that motivate people can change over their lifetime, but "respect for me as a person" is one of the top motivating factors at any stage of life. According to Herzberg, intrinsic motivators such as challenging work, recognition, and responsibility produce employee satisfaction, while extrinsic hygiene factors, including status, job security, salary, and fringe benefits if absent produce dissatisfaction. Herzbergs theory appears to parallel Maslow's needs hierarchy. Individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. However, Herzberg added a new dimension to this theory, including factors that cause dissatisfaction as well, such as company policies, supervision, technical problems, salary, interpersonal relations on the job, and working conditions. This two-factor model of motivation is based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction, while another and separate set of job characteristics lead to dissatisfaction. Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena
Hygiene Factors - Hygiene factors are based on the need to for a business to avoid unpleasantness at work. If these factors are considered inadequate by employees, then they can cause dissatisfaction with work. Hygiene factors include: Company policy and administration Wages, salaries and other financial remuneration Quality of supervision Quality of inter-personal relations Working conditions Feelings of job security Motivator Factors - Motivator factors are based on an individual's need for personal growth. When they exist, motivator factors actively create job satisfaction. If they are effective, then they can motivate an individual to achieve above-average performance and effort. Motivator factors include: Status Opportunity for advancement Gaining recognition Responsibility Challenging / stimulating work Sense of personal achievement & personal growth in a job
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There is some similarity between Herzberg's and Maslow's models. They both suggest that needs have to be satisfied for the employee to be motivated. However, Herzberg argues that only the higher levels of the Maslow Hierarchy (e.g. self-actualisation, esteem needs) act as a motivator. The remaining needs can only cause dissatisfaction if not addressed.
Applying Hertzberg's model to de-motivated workers - What might the evidence of de-motivated employees is in a business? Low productivity Poor production or service quality Strikes / industrial disputes / breakdowns in employee communication and relationships Complaints about pay and working conditions According to Herzberg, management should focus on rearranging work so that motivator factors can take effect. He suggested three ways in which this could be done: Job enlargement Job rotation Job enrichment Implications of Two-Factor Theory - The Two-Factor theory implies that the managers must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the employees skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality.
Limitations of Two-Factor Theory - The two factor theory is not free from limitations:
The two-factor theory overlooks situational variables. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory is acceptable broadly. The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. Factors for Satisfaction Achievement Recognition The work itself Responsibility Advancement Growth Factors for Dissatisfaction Company Policies Supervision Relationship with Supervisor and Peers Work conditions Salary Status
Organization behaviour Decision making - Unit 7
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Definition - The thought process of selecting a logical choice from the available options. When trying to make a good decision, a person must weigh the positives and negatives of each option, and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.
Individual Decision Making

Good decision making is a skill to be learned and mastered, especially for leaders who are managing a team. More importantly, individuals must also practice being good decision makers since it is not advisable to be too dependent on others for personal decisions. The downside of being too dependent on others is that you might have a hard time standing on your own two feet when a situation would require you to make a choice without anyones help. A better way to deal with it is to consult friends or trusted people who can advise you on the kind of decision you are about to make. They can give you tips, suggestions and warnings before you implement it. This way, you are still on your own in arriving at a final decision.
Pros and Cons of Individual Decision Making - When you make a decision on your own, you take pride in it especially if the choice made was successful and effective. Yet, there are moments when it is just difficult not to seek assistance from others. Find out the pros and cons of being an independent decision maker. Advantages of Individual Decision Making
You can take immediate action and fast solution to a problem or a situation. You are solely responsible for the kind of decision achieved, whether it is good or bad. You take full accountability for the outcome of the decision and its consequences. You take no arguments with your personal opinions on how to address a problem. You become efficient with the use of time and effort in reaching a decision. There is no need to delegate roles and responsibilities so you do not have to deal with people who are hesitant to take on a responsibility. You are free from too much diversity in a group which tends to limit cohesiveness and affect the decision making.
Disadvantages of Individual Decision Making

You only see things based on your own perception. You have no one to discuss regarding the projected outcome of the decision. There may be other people who have already gone through the kind of situation that you are experiencing and they might be able to share whether they were successful or not in the kind of decision they made. You may have a hard time reaching a decision especially when you have an indecisive character. It can be difficult for you to tell whether you are experiencing a decision making pitfall or not. The level of motivation there is in individual decision making is not as strong as when a team is successful enough to create a motivational effect to the members. There may not be so many creative solutions generated when only one person makes the decision.
Organization behaviour Why Group Decision-making? - Unit 7
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1. Integration of the team (Specialization vs. Integration)- As we will examine when we study organizational structure, the needs to specialized and group individuals in department by functional expertise posses some coordination, or integration, problems. One method of providing integration is the establishment of project teams. 2. Better decisions- It can be argued that group produce potentially superior decisions by affecting one of the three elements of decisions: Criteria - As group membership increases there is a likelihood that more stakeholders will be represented and their interests can be incorporated into the criteria used in the decision process. Cause/Effect- By including individuals with specialized expertise, we tend to increase the likelihood that more accurate cause/effect assumptions (theory) will be used in the decision making process. Alternatives- Groups tend to develop a greater number of potential options and more creative options. 3. Commitment to decision- This applies especially to individuals responsible for implementing the decision that requires a change of behavior. Individuals contributing to a decision tend to feel greater ownership to the decision, especially when their identities are tied to it. Resistance to change and motivation to ensure that the decision is implemented properly can be increased through participation.
What is the role of the formal leader in managing a group problem solving process?
The first issue for the leader is to define his/her style. This may range from completely autocratic to full participation. (If the leader opts for some form of group problem solving (CI ... GII), it is important that one individual be assigned as the process leader, or facilitator. This individual has the responsibility of guiding the group through the problem solving process. Here are some guidelines The leader should decide if he or she desires to take an advocacy role for a particular solution. If so, he or she should have someone else facilitate the problem solving process. The leader must decide if he or she has the skills to facilitate the process. If not, once again, someone else should take on this role. Sometimes a process leader (facilitator) emerges as the process progresses. It is important for the leader to turn over the process reigns explicitly, (if it is his or her wish to do so), rather than leave group members confused as to who is in charge of the process.
What motivates individuals to adopt a Group goal?

1. Goal identification- The individual has internalized the group goal as his or her own. 2. Instrumental motivation- The individual sees some extrinsic personal gain when the group is successful (Group goal based bonus, gain sharing plan, etc.) 3. Self concept external The individual social identity is tied to the group and when the group is viewed as success, the individual believe that he or she is viewed as successful by his or her reference group The individual believes that members of his or her reference group will attribute group success to his or her competencies. 4. Self concept internal- The individual see group success as a reinforcement or validation of his or her internally held self perception of competencies. Therefore when the group is successful, this success is validation of the individual competencies. This requires that the individual perceives that role that he or she performs has significant impact on group success. (This is the fundamental logic behind job enrichment and participative management.)
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Group Decision Making Process - At the outset of the meeting or process the leadership lay out the process being used so that members have an idea of where they are headed. 1. Problem Identification Define problem in situation or behavioral terms. Problem definition should be free to reference to causes and or fault Be careful not to invoke defensiveness on the part of group members. Problem definition should invoke mutual interests. Problem definition should culminate in a clear primary objective A set of criteria or constraints that a successful solution should meet should be developed. This constraint set should be based on claimant or stakeholder interests. Issues: Group members often want to advance a particular solution or plan. This must be avoided. The more public an individual's "position" becomes, the more committed he or she becomes to it. When a group member's identity is linked to a particular project, task or function, the form the problem statement takes will affect his or her degree of defensiveness. The group should focus on goals, behaviors, and outcomes rather than people and personality. 2. Problem Diagnosis - Develop a model of the problem using the behavior or objective as the dependent variable. The independent variables in the model should represent the potential causes of the problem. Avoid the trap of assessing the blame. Issues: Developing a model or construct is an "intuitive" exercise. Once the model is established, it tends to become the basis the remainder of the process. Be sure there is consensus on the model 3. Solution Generation - Generate a number of possible solutions before starting evaluation. Issues: Don't get locked into a limited solution set too early Work to encourage new and different approaches. Consensual schema often limits the range of alternatives groups consider. 4. Solution Evaluation and Choice - Evaluation should be based on comparing alternative solutions to constraint set developed in the problem identification phase Develop strategy for dealing with multiple conflicting criteria: Maximizing versus satisfying Issues: The method used to resolve intra-group conflicts is important at this point. The use of forcing (voting), smoothing, withdrawal, compromise, and integrative decision making (win-win) method have different consequence in terms of solution quality, solution acceptance, and group maintenance. 5. Problem Identification - Development of a plan to implement the change including reducing the expected resistance to the change 6. Evaluation - Develop strategy to evaluate effectiveness of chosen solution in solving stated problem without creating new problems (Pareto optimality). Methods or styles of Group Decision-Making
AI Autocratic or directive style of problem solving. Autocratic with group information input The leader defines problem, diagnoses problem, generates, evaluates and choose among alternative solutions. The leader defines the problem. Although the leader diagnoses the cause of the problem, the leader may use the group as an information source in obtaining data to determine cause. Using his or her list of potential solutions, the leader may once again obtain data from the group in evaluation of these alternatives and make a choice among them. The leader defines the problem, diagnoses its causes, and selects a solution. The leader then presents his or her plan to the group for understanding, review, and feedback
AII
AIII
Autocratic with group's review and feedback.
CI Individual Consultative Style
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CII GI
Group Consultative Style Group Decision Style
GII
Participative Style
GIII
Leaderless Team
The leader defines the problem and shares this definition with individual members of the work group. The leader solicits ideas regarding problem causes and potential solutions. The leader may also use these individuals expertise in evaluation of alternative solutions. Once this information is obtained, the leader makes the choice of which alternative solution to implement Same as CI, except the leader shares his or her definition of the problem with the group as a whole. Leader shares his or her definition of the problem with the work group. The group them proceeds to diagnose the causes of the problem. Following diagnosis, the group generates, evaluates, and chooses among solutions. The group as a whole proceeds through the entire decision making process. The group defines the problem and performs all other functions as a group. The role of the leader is that of process facilitator. The group has no formal leader, but rather is assembled as a leaderless team. If no substitute for task leadership, or process leadership is present, a process leader often emerges. This person may change from problem to problem. The group generates its own problem definition, performs its own diagnosis, generated alternatives, and chooses among alternatives
Advantages of Groups Decision Making: Individual and group decisions each have their own strengths and
weaknesses. Some of the advantages that group decisions have over individual decisions are described as follows: Since group members have different specialties, they tend to provide more information and knowledge. Also, the information tends to be more comprehensive in nature and the groups can generate a greater number of alternatives. There is often truth to the axiom that two heads are better than one. Implementation of the decision is more effective since the people who are going to implement the decision, either participated in the group themselves or had their representatives in it. This also increases the commitment of the people to see the implementation to success. It is important that the decision be accepted by all, because even a low quality decision that has acceptance can be more effective than a higher quality decision that lacks general acceptance. The input from a larger number of people eliminates the biases that are generally introduced due to individual decision making. It also reduces the unreliability of individual decisions. The participative style of decision making process builds up foundations as a training ground for subordinates who develop the skills of objective analysis of information and deriving of conclusions. The group decision making is more democratic in nature, while individual decision making is perceived to be more autocratic in nature. The democratic processes are more easily acceptable and are consistent with the democratic ideals of our society.
Disadvantages of Group Decision Making: There are certain drawbacks in group decision making also. The group processes can negatively affect performance in a variety of ways. The process is highly time consuming in terms of assembling the right group and usually a group takes more time in reaching a consensus since there are too many opinions to be taken into consideration. The time problem increases with the group size. Accordingly, the urgency of arriving at a decision must be considered when group decision making style is selected. Many times, the participants in group decision making have their own axes to grind or their own interests to protect. These self- centered interests lead to personality conflicts that may create interpersonal obstacles which may diminish the efficiency of the process as well as the quality of the decision. Some members may simply agree with the others for the sake of agreement since there are social pressures to conform and not to be the odd-man out. Thus the desire to be a good group member tends to silence disagreement and favours consensus. The social pressures can be very strong inducing people to change their attitudes, perceptions and behaviours. The group members may exhibit focus effect. This means that the group may focus on one or few suggested alternatives and spend all the time in evaluating these and may never come up with other ideas, thus limiting the choices.
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The decisions made by the group may not always be in accord with the goals and objectives of the organizations. This is especially true when the goals of the group and those of individuals do not reinforce each other. This will result in decisions that may be detrimental to organizational benefits. The groups may shift either towards more risk taking or towards less risk taking and either of the shifts may be undesirable. Generally speaking, problems suitable for group decision making involve some degree of risk or uncertainty. But to take excessive risk is as bad as taking no risk at all. Studies conducted by Stoner showed that groups tend to shift towards riskier decisions. This way, if the decision turns out to be a bad one, the responsibility for it will not be traceable to any particular individual in the group.
Inter-personal Relationships - Unit 8

In any organisation, people have to come together to accomplish organisational goals. Inter-personal relationships are a result of inter-personal communication. Groups are a result of inter-personal relationships. So, intergroup relationships are a result of inter-group communication. Initially, the inter-relationships are formal, but, over a period of time, they become less formal and work with more familiarity with each other. This gives rise to work groups and work teams and these interactions are called Group Dynamics.
Approaches to inter-personal relationships A Needs Approach - This approach is based on Abraham Maslow's hierarchy of needs. An individual may be attracted to another, if the needs are satisfied e.g. security, social and psychological. Sometimes, some needs are already satisfied and work as only maintenance factors; while some other needs are not and work as the really motivating factors (Frederick Herzberg's 2-factor theory of needs). There is also a Complementary Needs theory, which states that needs are mutually complementary e.g. a dominant person gets along well with a submissive person wherein both the individuals feel that the relationship is mutually rewarding. An Exchange Approach - This approach is based on the observation that there is a Rewards v/s Costs relationship. This means that individuals consider the cost involved v/s the rewards in return for maintaining a relationship. In other words, there is an exchange relationship. The rewards can be in the form of: love, money, status, information, goods, services etc. while the costs can be in the form of: conflict, disapproval, criticism, punishment, anxiety, frustration, etc. Life is give and take in organisational behaviour, people subconsciously think of the exchange value of relationships and continue with the same as long as rewards outweigh the costs.
Basis of Inter-personal Relationships

Personal qualities: Like physical attraction, personal appearance, honesty, sincerity, loyalty, reliability v/s dishonesty, rudeness, greed, hostility, etc Similarity: In beliefs, perception, values, interests, cognitive dissonance, etc. Familiarity: Of closeness, frequency of interaction, repetitive exposure, etc. Proximity: As in physical togetherness, reward-cost relationship, etc. Emotional identity: Which is positive feelings v/s negative feelings > relationship > behaviour > evaluation > judgments.
Factors influencing inter-personal Relationships

Role of parents - Generally, every person spends the first few years with one's parents. During this period, the child observes the way parents interact and behave with others within the family as well as outside the family. Naturally, one's behaviour is very highly influenced by one's own parents during the formative years of life. Self-identity - Every person is different and has an individual identity of his/her own. Self identity includes I' and Me'. It is the basis of self-esteem. Self-esteem leads to self-respect, which is sometimes a barrier. Selfidentity plays an important role in developing inter-personal relationship with others. Communication - The communication ability between individuals is an extremely important factor that decides the nature of inter-personal relationships between them. Communication is a vehicle to convey ideas, feelings, emotions, sentiments, views, opinions, thoughts, etc. Inter-personal communication is the core of inter-
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personal relationships; without proper communication, it is not possible to establish inter-personal relationships. Basis of attraction - People are attracted towards each other due to various reasons. Children are attracted due to colors, toys, games and other material things. Teenagers are attracted towards each other due to hobbies, games, studies, etc. Adults are attracted mainly due to physical and mental characteristics, similarity of cultures, customs, traditions, etc. Satisfaction of mutual needs becomes the basis of mutual attraction. Role of rewards - Inter-personal relationships depend upon the rewards that accompany behaviour. The rewards are not necessarily in the form of money; they can be in the form of appreciation, recognition, apology, co-operation, help, etc. Reciprocity - Generally, it is observed that people have a tendency to treat others as they are treated. Reaction is equal and opposite to action' .The behaviour is reciprocal with that of others. Norms and Rules - An informal relationship does not have many strict norms or rules of behaviour. Probably that is why it is called informal. But, in business organisations, there are certain norms and rules of behaviour that are important in the inter-personal relationship. They reduce uncertainty and improve predictability of behaviour. Social intelligence - Social intelligence means the intelligence required to behave properly in social groups. It helps to detect clues for the other person's behaviour or expectations.
Group Dynamics - Unit 8 What is a Group?

A group can be defined as: Robert Bales: A number of persons engaged in interaction with each other with face-to-face communication. Raymond Cat tells: A collection of individuals in which existence of all is necessary for the satisfaction of individual needs. Otto Kline berg: Two or more individuals who interact and influence each other for a certain time.
Characteristics of a group
Two or more individuals come together to work, There are common goals, objectives and tasks, There is interaction with each other, There is a sense of belonging, Norms and values are shared among members.
Functions of a group
Satisfaction of security needs of the members: self, family, job, belongings, property, etc. Satisfaction of social needs of the members: love, affection, affiliation, sense of belonging. Satisfaction of psychological needs of members: ego, self-esteem, appreciation, rewards, etc. Satisfaction of cognitive needs of the members: sense of identity/ recognition/values/beliefs, etc. Satisfaction of achievement-needs of members: sense of goals, objectives, job satisfaction, etc.
Why do people join groups?

Man is a social animal and he likes to be associated with Groups. But, on deeper scrutiny, we find that there are other reasons too for people joining groups. Some of them may be mentioned as follows: People join groups for the satisfaction of their psychological needs e.g.: self-esteem, ego, status, attention, recognition, appreciation, etc. People join groups for the satisfaction of their social needs e.g.: affection, friendship, acceptance, sense of belonging, etc. People join groups for the satisfaction of their security needs e.g.: job security, family security, property security, etc.
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Advantages of groups
Groups give better knowledge and information. Groups have the benefit of collective wisdom. Group decisions are better accepted by the members of the group. Group decisions have a better legitimacy. Groups facilitate problem solving.
Disadvantages of groups
Group activities are more time consuming. Groups exert pressures on members to conform to group norms. Groups can experience domination by a few members. Groups have hazy responsibilities. Group decisions are delayed.
Stages of group development - Groups in an organisation are not formed overnight. They take time depending upon the organisational structure, organisational culture, number of people involved, the nature of the task to be accomplished, the complexity of the job, requirement of special skills, interpersonal communication, etc. Generally, any group goes through the following stages to form and work: Forming - In the initial stages of group formation, there is a feeling of uncertainty about the purpose, structure, leadership, capability about themselves, etc. Storming - A little later, there is resistance by some members to the formation of the group mainly due to lack of inter-personal communication, etc. Norming - Once the above two stages are over, members develop a closer relationship. There is a better group cohesiveness with a sense of group identity. There are common expectations. In case of any deviation of behaviour by any member, there is an effort towards correction of behaviour. Performing - After the forming stage, the group gets ready to perform. It becomes fully functional and actually performs tasks. Adjourning - Normally Performing' is the last stage in many groups which continue to function. But sometimes some groups are formed temporarily for particular tasks or projects that are time bound. After the task is over, the temporary groups are dissolved.
- Group dynamics is a series of interactions between people working in the organisation. Group dynamics may be defined as: The interaction between members of the group in a social situation.' The way in which a group is formed, organized and conducted for the achievement of common goals.' A process of change to adopt new ideas/ knowledge/ methods/ systems for development.' A process through which members interact with each other for the accomplishment of common goals.' Implies common thinking, consensus decisions and consistent actions for common goals.'
What is Group Dynamics?
Important factors of Group dynamics

Organisational policies/strategies - Organisational policies and strategies play an important role in developing group dynamics in favour of or against the organisation. Liberal policies may facilitate group dynamics. But, strict policies restrict the same. Organisational culture - Organisational climate is a result of the organisational culture. A healthy and cooperative organisational culture helps group dynamics. But cut-throat competition among employees and mutual distrust between superiors and subordinates can mar group dynamics. Rules and Regulations - Administrative rules and regulations are the manifestations of organisational policies and procedures. Very strict rules and regulations do not permit group dynamics to flourish, but, flexible ones help.
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Physical working conditions - The working conditions of employees have an effect not only on the health and safety of the employees, but also their morale and motivation. As a result, this also affects group dynamics. Limitations to resources - People, machines, tools, equipment and materials are the main resources for employees to work and produce results. Adequate quantity and quality of resources help group dynamics to work in favour of efficiency. Otherwise, group dynamics suffers. Authority-responsibility relationship - Authority should be commensurate with responsibility and both of them should be balanced for successful effects of group dynamics. In case of in equilibrium groups cannot be effective. Organisational communication - Organisational communication is an extremely important factor for the success of group dynamics in an organisation. Open communication channels facilitate group dynamics to the favour of organisational efficiency. In cases otherwise, people are not interested in working in groups. Motivation of the members - High morale leads to high motivation which in turn, leads to high job satisfaction leading to higher organisational efficiency. This is a chain of actions and reactions, which affect group dynamics. Inter-personal conflicts - Inter-personal relationships are very important in group dynamics. They lead to intergroup relationships. If they are not cordial enough, they lead to interpersonal conflicts, which affect group dynamics negatively. Management attitude - Management attitude towards group dynamics can vary from Dictatorial to Democratic'. The growth and development of group dynamics depends upon the attitude and style of management. A too autocratic style of management may not allow group dynamics to function and a too democratic style of management may not help group dynamics bring organisational benefits.
TRANSACTIONAL ANALYSIS - Unit 8

The study of human behaviour is very complex and complicated concept. It is affected by the psychological factors such as perception, learning, personality and motivation. In addition to these factors, individual behaviour affects and affected by the behaviour of others. One of the major problems in the study of organisational behaviour is to analyze and improve the interpersonal relationships. One basic approach to study interpersonal relations in an organisational system is transactional analysis. This analysis deals with understanding, predicting and controlling interpersonal relationships. It was introduced by Eric Berne. Transactional analysis is a technique used to help people better understands their own and others behaviour, especially in interpersonal relationships. It is a good method for understanding interpersonal behaviour. It offers a model of personality and the dynamics of self and its relationship to others that makes possible a clear and meaningful discussion of behaviour. Transactional analysis is primarily concerned with following: 1. ANALYSIS OF SELF AWARENESS- Self is the core of personality pattern which provides integration. Self awareness is an important concept; it describes the self in terms of image, both conscious and unconscious. Joseph Luft and Harrington have developed a diagram to look at ones personality including behaviours and attitudes that can be known and unknown to self and known and unknown to others. This diagram is known as the JOHARI WINDOW. It comprising of 4 parts. JOHARI WINDOW OPEN BLIND (known to others and also self) (unknown to self but known to others) HIDDEN UNKNOWN(known to self but unknown to others) (unknown to self and unknown to others) 2. ANALYSIS OF EGO STATES - The ego plays an important role in human behaviour. People interact with each other in terms of psychological positions or behavioural patterns known as ego states. Ego states are persons way of thinking, feeling and behaving at any time. There are 3 important ego states: child, adult and parent. People of any age have these ego states in varying degree. A healthy person is able to move from one ego state to another. Parent ego state: The parent ego state means that the values, attitudes and behaviours of parent an integral part of the personality of an individual. These people tend to talk to people and treat others like children. The characteristics of a person with parent ego state are: Judge mental Rule maker Moralizing Over protective indispensable Adult ego state: The adult ego state is authentic, direct, reality based, fact seeking and problem solving. They assume that human beings as equal, worthy and responsible. The process of adult ego state formation
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3.
4.
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6.
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goes through ones own experiences and continuously updating attitudes left over from childhood. People with adult ego state, gather relevant information, carefully analyze it, generate alternatives and make logical choices. Child ego state: the child ego state is characterized by very immature behaviour. The important features of child ego state are creativity, anxiety, depression, dependence, fear, joy, emotional sentimental etc. ANALYSIS OF TRANSACTIONS - A transaction is a basic unit of social interaction. The heart of transactional analysis is the study and diagramming of the exchanges between two persons. Thus where a verbal or non verbal stimulus from one person is being responded by another person a transaction occurs. Transactional analysis can help us to determine which ego state is most heavily influencing our behaviour and the behaviour of the other people with whom we interact. Depending on the ego states of the persons involved in transactions, there may be three types of transactions: Complementary transactions: Both people are operating from the same ego state. There can be nine complementary transactions. *Adult-Adult transactions * Adult-Parent transactions* Adult-Child transactions *Parent-Parent transactions * Parent-Adult transactions*Parent-Child transactions* Child-Parent transactions *Child-Adult transactions* Child-Child transactions Crossed transactions: a crossed transaction is one in which the sender sends message behaviour on the basis of his ego state, but this message is reacted to by an unexpected ego state on the part of the receiver. Crossed communication should be avoided as far as possible. Whenever such transactions occur, communication tends to blocked and a satisfactory transaction is not accomplished. Ulterior transactions: two ego states within the same person but one disguises the other one. SCRIPT ANALYSIS - In a laymans view, a script is the text of play, motion picture, or a radio or TV programme. In transactional analysis a persons life is compared to a play and the script is the text of the play. According to Eric Berne, a script is an ongoing programme, developed in early childhood under parental influence which directs the individual behaviour in the most important aspects of his life. A script is a complete plan of living, offering prescriptions, permissions and structure which make one winner or loser in life. ANALYSIS OF LIFE POSITIONS - In the process of growing up people make basic assumptions about their own self worth as well as about the worth of significant people in their environment. The combination of assumptions about self and the other person called as life position. Transactional analysis constructs the following classifications of the four possible life positions or psychological positions I am OK, you are OK: It appears to be an ideal life position. People with this type of life position have confidence in themselves as well as trust and confidence in others. I am OK, you are not OK: This is a distrustful psychological position. This is the attitude of those people, who think that whatever they do is correct. I am not OK, you are OK: This is a common position for those people who feel powerless when they compare themselves to others. I am not OK, you are not OK: people in this position tend to feel bad about them and see the whole world as miserable. They do not trust others and have no confidence in themselves. STROKING - Stroking is an important aspects of the transactional analysis. The term stroke refers to giving some kind of recognition to others. People need strokes for their sense of survival and well being on the job. Lack of stroking can have negative consequences both on physiological and psychological well being of a person. There are three types of strokes: Positive strokes: the stroke one feel good, is a positive stroke. Recognition, approval are some of the examples. Negative strokes: a stroke one feel bad or not good is a negative stroke. Negative strokes hurt physically or psychologically. Mixed strokes: a stroke may be of a mixed type also. Example: the boss comments to a worker you did an excellent job in spite your limited experience. GAMES ANALYSIS - When people fail to get enough strokes at work they try a variety of things. One of the most important things is that they play psychological games. A psychological game is a set of transaction with three characteristics:
The transactions tend to be repeated. They make sense on superficial or social level. One or more transactions is ulterior. Types of games: A first degree game is one which is socially acceptable in the agents circle. A second degree game is one which more intimate end up with bad feelings. A third degree game is one which usually involves physical injury. BENEFITS AND UTILITY OF TRANSACATIONAL ANALYSIS Improved interpersonal communication. Source of positive energy. Understanding ego state. Motivation. Organisational development
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Leadership - Unit 9
The act of inspiring sub ordinates to perform and engage in achieving a goal Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. The individuals who are the leaders in an organization, regarded collectively. The activity of leading a group of people or an organization or the ability to do this Leadership involves establishing a clear vision, sharing that vision with others so that they will follow willingly, providing the information, knowledge and methods to realize that vision, and Coordinating and balancing the conflicting interests of all members and stakeholders. A leader steps up in times of crisis, and is able to think and act creatively in difficult situations. Unlike management, leadership cannot be taught, although it may be learned and enhanced through coaching or mentoring. Someone with great leadership skills today is Bill Gates who, despite early failures, with continued passion and innovation has driven Microsoft and the software industry to success.
The Two Most Important Keys to Effective Leadership

1. Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. 2. Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence: Helping employees understand the company's overall business strategy. Helping employees understand how they contribute to achieving key business objectives. Sharing information with employees on both how the company is doing and how an employee's own division is doing
Four Factors of Leadership

1. Leader - You must have an honest understanding of who you are, what you know, and what you can do. Also, note that it is the followers, not the leader or someone else who determines if the leader is successful. If they do not trust or lack confidence in their leader, then they will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of being followed. 2. Followers - Different people require different styles of leadership. For example, a new hire requires more supervision than an experienced employee does. A person who lacks motivation requires a different approach than one with a high degree of motivation. You must know your people! The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. You must come to know your employees' be, know, and do attributes.
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3. Communication - You lead through two-way communication. Much of it is nonverbal. For instance, when you set the example, that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and how you communicate either builds or harms the relationship between you and your employees. 4. Situation - All situations are different. What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective. Various forces will affect these four factors. Examples of forces are: Your relationship with your seniors The skill of your followers The informal leaders within your organization How your organization is organized
Principles of Leadership - To help you be, know, and do, follow these eleven principles of leadership guide expand
on these principles and provide tools for implementing them: 1. Know yourself and seek self-improvement - In order to know yourself, you have to understand your be, know, and do, attributes. Seeking self-improvement means continually strengthening your attributes. This can be accomplished through self-study, formal classes, reflection, and interacting with others. 2. Be technically proficient - As a leader, you must know your job and have a solid familiarity with your employees' tasks. 3. Seek responsibility and take responsibility for your actions - Search for ways to guide your organization to new heights. And when things go wrong, as they often tend to do sooner or later do not blame others. Analyze the situation, take corrective action, and move on to the next challenge. 4. Make sound and timely decisions - Use good problem solving, decision making, and planning tools. 5. Set the example - Be a good role model for your employees. They must not only hear what they are expected to do, but also see. We must become the change we want to see - Mahatma Gandhi 6. Know your people and look out for their well-being - Know human nature and the importance of sincerely caring for your workers. 7. Keep your workers informed - Know how to communicate with not only them, but also seniors and other key people. 8. Develop a sense of responsibility in your workers - Help to develop good character traits that will help them carry out their professional responsibilities. 9. Ensure that tasks are understood, supervised, and accomplished - Communication is the key to this responsibility. 10. Train as a team - Although many so called leaders call their organization, department, section, etc. a team; they are not really teams... they are just a group of people doing their jobs. 11. Use the full capabilities of your organization - By developing a team spirit, you will be able to employ your organization, department, section, etc. to its fullest capabilities.
Attributes of Leadership - If you are a leader who can be trusted, then those around you will grow to respect you. To
be such a leader, there is a Leadership Framework to guide you: BE KNOW DO BE a professional. Examples: Be loyal to the organization, perform selfless service, and take personal responsibility. BE a professional who possess good character traits. Examples: Honesty, competence, candor, commitment, integrity, courage, straightforwardness, imagination. KNOW the four factors of leadership follower, leader, communication, situation. KNOW yourself. Examples: strengths and weakness of your character, knowledge, and skills. KNOW human nature. Examples: Human needs, emotions, and how people respond to stress. KNOW your job. Examples: be proficient and be able to train others in their tasks.
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KNOW your organization. Examples: where to go for help, its climate and culture, who the unofficial leaders are. DO provide direction. Examples: goal setting, problem solving, decision making, planning. DO implement. Examples: communicating, coordinating, supervising, evaluating. DO motivate. Examples: develop morale and esprit de corps in the organization, train, coach, counsel.
The Process of Great Leadership - The road to great leadership that is common to successful leaders:
Challenge the process - First, find a process that you believe needs to be improved the most. Inspire a shared vision - Next, share your vision in words that can be understood by your followers. Enable others to act - Give them the tools and methods to solve the problem. Model the way - When the process gets tough, get your hands dirty. A boss tells others what to do; a leader shows that it can be done. Encourages the heart - Share the glory with your followers' hearts, while keeping the pains within your own.
Leadership Theories:
1. "Great Man" Theories: Have you ever heard someone described as "born to lead?" According to this point of view, great leaders are simply born with the necessary internal characteristics such as charisma, confidence, intelligence, and social skills that make them natural-born leaders. Great man theories assume that the capacity for leadership is inherent that great leaders are born not made. These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership. 2. Trait Theories: Similar in some ways to Great Man theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify particular personality or behavioral characteristics shared by leaders. For example, traits like extraversion, selfconfidence, and courage are all traits that could potentially be linked to great leaders. If particular traits are key features of leadership, then how do we explain people who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to explain leadership. There are plenty of people who possess the personality traits associated with leadership, yet many of these people never seek out positions of leadership. 3. Contingency Theories: Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspects of the situation. 4. Situational Theories: Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decisionmaking. For example, in a situation where the leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most appropriate. In other instances where group members are skilled experts, a democratic style would be more effective. 5. Behavioral Theories: Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Consider it the flip-side of the Great Man theories. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation. 6. Participative Theories: Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. In participative theories, however, the leader retains the right to allow the input of others. 7. Management Theories: Management theories, also known as transactional theories, focus on the role of supervision, organization and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are
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rewarded; when they fail, they are reprimanded or punished. Learn more about theories of transactional leadership. 8. Relationship Theories: Relationship theories, also known as transformational theories, focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. These leaders are focused on the performance of group members, but also want each person to fulfill his or her potential. Leaders with this style often have high ethical and moral standards.
Organizational structure - Unit 10

Definition - The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sells multiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well. An organizational chart illustrates the organizational structure.
What is organizational structure?

By structure, we mean the framework around which the group is organized, the underpinnings which keep the coalition functioning. It's the operating manual that tells members how the organization is put together and how it works. More specifically, structure describes how members are accepted, how leadership is chosen, and how decisions are made.
When should you develop a structure for your organization?
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It is important to deal with structure early in the organization's development. Structural development can occur in proportion to other work the organization is doing, so that it does not crowd out that work. And it can occur in parallel with, at the same time as, your organization's growing accomplishments, so they take place in tandem, side by side. This means that you should think about structure from the beginning of your organization's life. As your group grows and changes, so should your thinking on the group's structure.
Why should you develop a structure for your organization?

Structure gives members clear guidelines for how to proceed. A clearly-established structure gives the group a means to maintain order and resolve disagreements. Structure binds members together. It gives meaning and identity to the people who join the group, as well as to the group itself. Structure in any organization is inevitable -- an organization, by definition, implies a structure. Your group is going to have some structure whether it chooses to or not. It might as well be the structure which best matches up with what kind of organization you have, what kind of people are in it, and what you see yourself doing.
Organizational Structure Types - Following are the types of organizational structures that can be observed in the
modern business organizations. 1. Bureaucratic Structures - Bureaucratic structures maintain strict hierarchies when it comes to people management. There are three types of bureaucratic structures: a. Pre-bureaucratic structures - This type of organizations lacks the standards. Usually this type of structure can be observed in small scale, start-up companies. Usually the structure is centralized and there is only one key decision maker. The communication is done in one-on-one conversations. This type of structures is quite helpful for small organizations due to the fact that the founder has the full control over all the decisions and operations. b. Bureaucratic structures - These structures have a certain degree of standardization. When the organizations grow complex and large, bureaucratic structures are required for management. These structures are quite suitable for tall organizations. c. Post-bureaucratic Structures - The organizations that follow post-bureaucratic structures still inherit the strict hierarchies, but open to more modern ideas and methodologies. They follow techniques such as total quality management (TQM), culture management, etc. 2. Functional Structure - The organization is divided into segments based on the functions when managing. This allows the organization to enhance the efficiencies of these functional groups. As an example, take a software company. Software engineers will only staff the entire software development department. This way, management of this functional group becomes easy and effective. Functional structures appear to be successful in large organization that produces high volumes of products at low costs. The low cost can be achieved by such companies due to the efficiencies within functional groups. In addition to such advantages, there can be disadvantage from an organizational perspective if the communication between the functional groups is not effective. In this case, organization may find it difficult to achieve some organizational objectives at the end.
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3. Divisional Structure - These types of organizations divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to function independently. There can be many bases to define divisions. Divisions can be defined based on the geographical basis, products/services basis, or any other measurement. As an example, take a company such as General Electrics. It can have microwave division, turbine division, etc., and these divisions have their own marketing teams, finance teams, etc. In that sense, each division can be considered as a micro-company with the main organization.
4. Matrix Structure - When it comes to matrix structure, the organization places the employees based on the function and the product. The matrix structure gives the best of the both worlds of functional and divisional structures. In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the functions they belong to (ex: software engineers) and product they are involved in (ex: Project A). This way, there are many teams in this organization such as software engineers of project A, software engineers of project B, QA engineers of project A, etc.
Conclusion - Every organization needs a structure in order to operate systematically. The organizational structures can be used by any organization if the structure fits into the nature and the maturity of the organization. In most cases, organizations evolve through structures when they progress through and enhance their processes and manpower. One company may start as a pre-bureaucratic company and may evolve up to a matrix organization.
Four Basic Elements of Organizational Structure

Functional Structure - People who do similar tasks, have similar skills and/or jobs in an organization are grouped into a functional structure. The advantages of this kind of structure include quick decision making because the group members are able to communicate easily with each other. People in functional structures can learn from each other easier because they already possess similar skill sets and interests.
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Divisional Structure - In a divisional structure, the company will coordinate inter-group relationships to create a work team that can readily meet the needs of a certain customer or group of customers. The division of labor in this kind of structure will ensure greater output of varieties of similar products. An example of a divisional structure is geographical, where divisions are set up in regions to work with each other to produce similar products that meet the needs of the individual regions. Matrix Structure - Matrix structures are more complex in that they group people in two different ways: by the function they perform and by the product team they are working with. In a matrix structure the team members are given more autonomy and expected to take more responsibility for their work. This increases the productivity of the team, fosters greater innovation and creativity, and allows managers to cooperatively solve decision-making problems through group interaction. Project Organization Structure - In a project-organizational structure, the teams are put together based on the number of members needed to produce the product or complete the project. The numbers of significantly different kinds of tasks are taken into account when structuring a project in this manner, assuring that the right members are chosen to participate in the project.
Six Elements of Organizational Structure

1. Geography - How your organization is structured can depend on how many corporate locations you need to account for in your planning. The more spread out an organization is, the more autonomy each location will need to be given in order for the company to run efficiently. Hierarchy communication is also a challenge when creating an organizational structure over a large geographic area. Managers who report to executives in another location need to establish a clear line of communication in order to receive guidance and instruction. 2. Number of Employees - A large employee population can necessitate that there be several layers of management for a company to run efficiently. As a company grows, the organizational structure needs to be elastic enough to accommodate more employees and the potential need for a larger management structure. 3. Product Evolution - A company may start off with a small line of products that cover a general part of the industry. As the company grows, the need to create specified departments for product development and manufacturing can have an effect on the company's organizational structure. 4. Distribution of Authority - According to a study done by a group of college students known as Group A-Plus, a company's organizational structure is affected by whether the company wants centralized management or decentralized management. Centralized management keeps all major decisions with one specific executive group, while decentralized management allows company managers to have more said in the decision-making process. 5. Control - According to Management Guru, a company that requires a higher product quality will have stricter rules and a more regimented environment. This would apply to companies that manufacturer high tech product, hand-crafted products or critical products such as medical equipment. Companies that engage in the mass production of products may not exert as much control over the quality of their products and, subsequently, may create a different organizational structure. 6. Marketplace - The marketplace also has a bearing on how a company is structured. For example, a manufacturer may decide to sell products through wholesalers as well as directly to end users. In order for this model to be successful, the organizational structure of the company would need to be set up so as to keep these elements separate, including a separate marketing team and a separate sales force.
Advantages of organization structure are:

1. More easily control over the resources because with it resources can be rationed and allocated to different units to use them to their most productive uses at micro level. 2. Clearly defined reporting lines make it easy for employees to know to whom to report. 3. Reduce redundancies by eliminating extra and unproductive processes. 4. Stream line processes by giving it more focus and adoptive nature. 5. It helps to reduce costs because the controlling of various cost control centers are controlled at micro level. 6. It gives focus and direction to an organization.
Types of Organizational Structures
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"Every company has two organizational structures: The formal one is written on the charts; the other is the everyday relationship of the men and women in the organization." - Harold S. Geneen Every organization, to be effective, must have a structure. Let us first understand what an organization structure is. It is the setup that determines the hierarchy and reporting structure in an organization. It is represented by a drawing known as an organizational chart. There are different types of organizational structures that companies follow, depending on a variety of factors like leadership style, type of organization, geographical regions, work flow and hierarchy. To put it simply, an organizational structure is the plan of the hierarchy and arrangement of work. Here is a list of the different types of organizational structures. 1. Traditional Structures - These structures are based on functional division and departments. They are the kind of structures that follow the organization's rules and procedures to the T. They are characterized by having precise authority lines for all levels in the management. The various types of structures that fall under traditional structures are: a. Line Structure - This is the kind of structure that has a specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. Hence it is known as a line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This structure allows easy decision-making and is informal in nature. Merits It is the simplest kind of organizational structure. Strict authority results in a stronger discipline. Prompt decisions result in quick and effective actions. There is clarity in the structures of authority and responsibility. As the control rests with one superior, it accords him the flexibility to adjust the department. There are good career advancement prospects for individuals who deliver quality work. Demerits There are chances of the department head being biased. Lack of specialization is a persistent problem. The department head may be burdened with lots of work. Communication only happens from top to bottom. Superiors with authority can misuse it for their benefit. Decisions are taken by a single person and can go wrong. b. Line and Staff Structure - Though a line structure is suitable for most organizations, especially the small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and staff structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes slower in this type of organizational structure because of several layers and guidelines. Also, there is formality involved. Merits It enables the employees to perform at a faster rate. It helps employees to accept responsible jobs and specialize in a particular area. It helps line managers to concentrate on the task at hand. Little or no resistance is met when organizational changes take place. It results in less operational wastage and increases productivity. Employees feel that they are given the due credit for their contribution. Demerits Confusion may be created among employees. Employees lack operational knowledge to give result-oriented suggestions. There are too many levels of hierarchy. Employees may have differences of opinions and this may slow down the work. As staff specialists exist, it is costlier than a simple line organization.
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Decision-making may be time-consuming. 2. Functional Structure - This kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional organization consists of a Vice President, a Sales Department, a Customer Service Department, Engineering or Production Department, an Accounting Department, an Administration Department, etc. Merits It has high degrees of specialization. It has clear lines of authority. It facilitates easy accountability for the work. It accords a high level of speed and efficiency. The need for duplication of work is eliminated. All the functions command equal importance. Demerits Communication has several barriers which makes coordination difficult. More focus is laid on individuals rather than the organization. The decisions taken by a single person may not always work in favor of the organization. As the organization expands, it gets difficult to exercise control on its operations. There may be lack of teamwork between different departments or units. As all the functions are separated, employees may not gain knowledge about other specializations. 3. Divisional Structure - These are the kinds of structures that are based on different divisions in the organization. They group together employees based on the products, markets and geographical locations covered. Here is a detailed description of a divisional structure. a. Product Structure - A product structure is based on organizing employees and work on the basis of the different products. If the company produces three different products, they will have three different divisions for these products. This type of structure can be best utilized for retail stores with a number of products. Merits Units which are not working can be closed down easily. Each unit can be operated and treated as a separate profit center. It accords rapid and easy decision-making. It also gives a lot of independence to the decision makers. Individual products get separate attention as per the problems they face. It enables the organization to have a high productivity and efficiency quotient. Demerits As each unit operates on its own, organizational goals may not be achieved. Unhealthy competition may exist among internal business units. As it has too many managerial levels, it may hamper the business. Accounting work and taxes may increase considerably. All the units may not be considered as equal. Marketing individual products may add up to the cost significantly. b. Market Structure - Market structure is used to group employees on the basis of the specific market the company sells in. A company could have five different markets they use and according to this structure, each would be a separate division. Merits Employees can communicate with customers in the local language. They are available for the customers, if need is felt. The problems in a particular market can be isolated and dealt with separately. As individuals are responsible for a particular market, tasks are completed on time. Employees are specialized in catering to a particular market. New products for niche markets can be introduced.
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Demerits There can be intense competition among the employees. Decision-making can cause conflicts. It is difficult to determine the productivity and efficiency. All the markets may not be considered as equal. There may be lack of communication between the superiors and the employees. Employees may misuse their authority. c. Geographic Structure - Large organizations have offices at different places, for example, there could be a north zone, south zone, west zone and east zone. The organizational structure, in such a case, follows a zonal structure. Merits There is better communication among the employees at the same location. Locals are familiar with the local business environment and can cater to geographical and cultural differences. Customers feel a better connection with local managers who can speak their language. A record of the work of individual markets and groups can be maintained. Decisions are taken thoughtfully and work when implemented. New products or product modifications catering to a specific area can be introduced. Demerits It may give rise to a feeling of division among the employees of the organization. There may be unhealthy competition among different zones. Core company ethics, beliefs and practices may differ from location to location. Tracing the performance and profits of each region may be time-consuming and tedious. There may be poor communication among the employees at different locations. Collaboration and cooperation between employees at different locations may not work out. 4. Matrix Structure - This structure is a combination of function and product structures. It combines the best of both worlds to make an efficient organizational structure. This structure is the most complex structure. It uses teams of employees to accomplish work by capitalizing on their strengths while creating weaknesses which are of functional form. The different types of matrix structures are: Weak/Functional Matrix- In this type of matrix structure, a project manager is assigned to look over the cross-functional aspects of the project. However, he has a very limited authority and it is the functional manager who actually controls the inventory, resources and the project. Merits Employees are not attached to temporary staff or temporary work. The functional manager controls the project. The functional manager is responsible in case anything goes wrong. The more the project manager communicates with the employees, the better are the results. The project manager can make things happen without being in control. The decision-making rests in the hands of the functional manager. Demerits The project manager may face strong apathy from his workers. The project manager does not have complete authority. If not supervised, workers can reduce the productivity of the entire unit. The project manager is a weak authority who has no control over the employees. He has no control over workload management and task prioritization. He cannot even give a performance review. There are two more structures namely balanced/functional matrix and strong/project matrix. In the balanced/functional matrix, the responsibility and power is shared equally by both the project manager and the functional head. This may create a power struggle between them. In the strong/project matrix, the project manager is primarily responsible for the work while the functional head gives technical advice and allocates resources. 5. Other Organizational Structures
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a. Bureaucratic Structure - This kind of structure can be seen in tall organizations where tasks, processes and procedures are all standardized. This type of structure is suitable for huge enterprises that involve complex operations and require smooth administration of the same. It is highly recommended for industries like food, beverage, etc. as they have to adhere to stringent rules and regulations. Merits As the complete control rests in the hands of one person, it is easy to achieve organizational goals. Strict hierarchies ensure timely completion of tasks and quality. It helps in easy cooperation and coordination among the employees. Standardization and the best practices can be implemented easily. Employees have to adhere to policies and procedures. Production takes place efficiently and effectively. Demerits A centralized authority can discourage employees. It does not encourage innovative ideas. It can lead to employee dissatisfaction and attrition. It cannot adapt to changes in the business environment. One person cannot be responsible for coming up with creative ideas every time. It can trigger a power struggle in the organization. b. Pre-bureaucratic Structure - This structural form is best-exemplified in organizations where administration and control are centralized, and there is very little, if any, standardization of tasks. This structure is highly recommended for small-scale industries and start-ups. Merits It has a centralized structure with only one decision maker. The founder has complete control on decisions and their implementation. Communication mostly happens on a one-on-one basis. Decisions are made and implemented quickly. Productivity and profits are closely monitored. If an employee works hard, he gets noticed. Demerits Decisions taken by one person stand the risk of going wrong. It is only applicable to small businesses and cannot sustain once they expand. Lack of standardization can lead to inconsistencies. Employees are not part of the decision-making process and this can demoralize them. Effective communication may not take place as people do not open up in front of the authority. Due to lack of flexibility, employees may feel frustrated. c. Network Structure - In this structure, organization managers are required to maintain and coordinate business/professional relations with third parties such as clients, vendors and associates in order to achieve a collective goal of profitability and growth. Most of the time, these relations are maintained and tasks are coordinated via telecommunication and electronic media and, hence this structure is also known as a virtual structure. Merits The employees can be closer to the location of the customer. It helps in optimizing the knowledge potential of the organization. Even if something like a natural disaster occurs, the work of network employees can continue. It can be dynamic and easily adaptive to changes in the business environment. There is a certain level of flexibility for the employees. There can be a collaborative relationship between the supervisor and the employee. Demerits An employee may have to report to too many supervisors and this may affect his work. As a formal hierarchy is missing, it can lead to conflicts. Too much dependence on technologies like the Internet, phone, etc. can cause problems.
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As there is no physical place for employees, it affects communication. It can lead to increased work stress among the employees. An intense competition exists among the supervisors, to get a high-performing employee. d. Team Structure - Organizations with team structures can have both vertical as well as horizontal process flows. The most distinct feature of such an organizational structure is that different tasks and processes are allotted to specialized teams of personnel in such a way that a harmonious coordination is struck among the various teams. Merits It facilitates practical decision-making and implementation. Decisions are taken unanimously and not by an individual. It eliminates traditional scalar chains of command for getting approvals. The relationships and communication between employees improve. If one employee in the team fails to work, the other can take his place. It enables the heads to staff resources which complement each other. Demerits There is very less contact with teams of other functions. If teams undergo constant changes and alterations, it can affect work. Each team contributes on its own and may not be in alignment with the organizational goals. Team members need to be proactive and incorporate better project management. The need for an effective leader can be felt. As decisions are given by many people, they may take a long time. 6. A Few More Organizational Structures a. Entrepreneurial Structure - The authority of such organizations oftentimes is heavily centralized and lies with one person. It only comprises two to three vertical levels and the duties of the employees overlap. It is suitable for small or new organizations where the decision of one person matters the most. It also exhibits easy responsiveness and adaptability to change in the business environment. b. Horizontal Organization Structure - It is also known as a flat structure. In this type, there is absolutely nil or very less interference from the senior management which allows the employees to conduct their tasks smoothly. Employees are also involved in the decision-making process. As it eliminates the need for middle management, it contributes towards giving a quick response to customer feedback. However, it may not be applicable and practical for big organizations. c. Vertical Organization Structure - It relies on the middle management to monitor and control the work of the employees. These structures have well-defined roles and responsibilities for the employees. Hence, delegating tasks to the employees becomes easier. It requires a strong leader at the top of the hierarchy as he is the one to take all the decisions. As a hierarchy exists, it ensures that the work is done in a disciplined manner. d. Mechanistic Structure - This is the most formal and the strictest kind of structure with a clear distinction in the hierarchy and roles. Hence, these structures are vertically oriented. The hierarchy of the authority is welldefined. Decision-making rests in the hands of the senior management. As a lot of bureaucracy is involved in these structures, the leaders find it difficult to deal with competition. Also, innovation oftentimes is hampered due to red-tapeism. Employees work separately and are specialists of a task. e. Organic Structure - It is the exact opposite of a mechanistic organizational structure. In an organization following the organic structure, the authority is delegated and is decentralized. Hence, communication takes place laterally. There is a lot of flexibility in this type of an organization. Employees generally work together and coordinate different tasks. They are highly flexible to adapt to the changes in the external business environment. f. Post-bureaucratic Structure - This is a structure that is not bureaucratic in nature while bureaucratic organizations are too controlled, post-bureaucratic ones offer more freedom to the employees. Though there is hierarchy, the leaders are open to new ideas. The decisions are taken after discussion and consensus is not dependent on hierarchy. This encourages employee participation, trust, personal treatment, responsibility and empowerment. This type of structure is often used in housing cooperatives and non-profit organizations. It also incorporates techniques like total quality management (TQM) and culture management.
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Now that you know about the various organizational structures, implement the right one based on its applicability, advantages and disadvantages. It is important to find an organizational structure that works best for the organization as a wrong setup can hamper functioning and be detrimental to organizational success.

Organizational Behaviour and Management Process

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Organizational Behaviour and Management Process

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Organization behaviour

Organisational behaviour has been defined by:

Scientific Management Unit 1

Characteristics / Features of Scientific Management

Advantage of Scientific Management Theory

Disadvantage of Scientific Management Theory

Systems Approach to Management - Unit 2

Advantages of Systems Approach in management

Human relations approach to Management - Unit 2

The basic principles of the human relations approach are as follows:

Contingency or Situational Approach of Management - Unit 2

Difference between Contingencies and Adaptation

Managerial Process, Function, Skills and roles in the organization - Unit 3

Managerial Roles Unit 3

Organization behaviour Management Skills

Corporate social responsibility - Unit 4

There are four main parts to CSR:

Individual Behaviour - Unit 5

Why to study Individual Behaviour?

Factors Affecting or influencing Perception

The process of perception

Organization behaviour Value - Unit 5

Value may be defined as:

Sources of Values - Values of individuals/groups come from different sources:

Personality types based on temperament

Major Determinants of Personality

Attitudes consist of three components

How attitudes are formed?

Does attitude influence human behaviour?

What are job related attitudes?

Mechanism of changing or alter attitudes

Factors affecting Attitude

LEARNING AS A MANAGERIAL TOOL

BARRIERS OF WORK MOTIVATION

STRATEGIES TO OVERCOME BARRIERS

Maslow's hierarchy of needs - Unit 6

Organization behaviour Herzberg two factor theory - Unit 6

Organization behaviour Decision making - Unit 7

Individual Decision Making

Disadvantages of Individual Decision Making

Organization behaviour Why Group Decision-making? - Unit 7

What motivates individuals to adopt a Group goal?

Autocratic with group's review and feedback.

Group Consultative Style Group Decision Style

Inter-personal Relationships - Unit 8

Basis of Inter-personal Relationships

Factors influencing inter-personal Relationships

Group Dynamics - Unit 8 What is a Group?

Why do people join groups?

What is Group Dynamics?

Important factors of Group dynamics

TRANSACTIONAL ANALYSIS - Unit 8

The Two Most Important Keys to Effective Leadership

Four Factors of Leadership

Organizational structure - Unit 10

What is organizational structure?

Why should you develop a structure for your organization?

Four Basic Elements of Organizational Structure

Six Elements of Organizational Structure

Advantages of organization structure are:

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