MB0038 - Prep

Unit 1 Management Process
Glossary
Terms Meaning
Controlling The process of monitoring and correcting the actions of the organization and its members to keep them
directed toward their goals.
Leading The process of getting the organization's members to work together toward the organization's goals.
Management Organization and coordination of the activities of an enterprise in accordance with certain policies and in
achievement of clearly defined objectives
Organizing The process of designing jobs, grouping jobs into units, and establishing patterns of authority between
jobs and units
Planning The process of determining an organization's desired future position and the best means of
getting there.
Summary
Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and
structure have on behavior within an organization, then applies that knowledge to make organizations work
more effectively (Robbins, 2003). An effective and efficient manager should focus on two key results.
Management functions have been grouped into four categories: planning, organizing, leading and controlling.
The characteristics of management are goal oriented. Economic resource, distinct process, integrative force,
intangible force, a science and an art, results through others, system of authority and multidisciplinary subject.
Planning involves the process of defining goals, establishing strategies for achieving these goals, and
developing plans to integrate and coordinate activities. All levels of management engage in planning in their
own way for achieving their preset goals. Organizing involves designing, structuring, and coordinating the
work components to achieve organizational goal. It is the process of determining what tasks are to be done,
who is to do, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. A
key issue in accomplishing the goals identified in the planning process is structuring the work of the
organization.
Leading involves team building, consensus building, selecting and training. An organization has the greatest
chance of being successful when all of the employees work toward achieving its goals. Since leadership
involves the exercise of influence by one person over others, the quality of leadership exhibited by supervisors
is a critical determinant of organizational success.
Controlling involves monitoring the employees‟ behavior and organizational processes and take necessary
actions to improve them, if needed. Control is the process through which standards for performance of people
and processes are set, communicated, and applied.
According to Mintzberg (1973), managerial roles are: Informational roles, Decisional roles and Interpersonal
roles. Katz (1974) has identified three essential management skills: technical, human, and conceptual. Luthans
(1988) found that all managers engage in four managerial activities: (i) Traditional management–This activity
consists of planning, decision making, and controlling, (ii) Communication–This activity consists of exchanging
routine information and processing paperwork, (iii) Human resource management–this activity consists of
motivating, disciplining, managing conflict, staffing, and training, and (iv) Networking–this activity involves
socializing, politicking, and interacting with outsiders.
1. “Management is the development of people and not the direction of things.” This
definition is given by ___________
2. “Management is a distinct process consisting of planning, organizing, actuating and
controlling performed to determine and accomplish the objectives by the use of people
and resources.”. This definition was given by Terry in _________.
3. _______________ is one of the factors of production together with land, labour and
capital.
4. Management is a ________ consisting of such functions as planning, organizing,
staffing, directing and controlling.
5. In recent time, management functions have been regrouped into____________
categories.
6. Training starts with an ___________________ analysis.
7. Ceremonial and symbolic role of a manager is called __________________.
8. Vocational and on-the-job training programs can be used to develop_______________ skill.
9. The average manager spent __________ percent of his or her time performing
traditional management.
10. Effective managers spend __________ percent of their time in human resource
management.
Answers to Self Assessment Questions

1. Appley
2. 1953
3. Management
4. Distinct Process
5. Four
6. Organizational
7. Figurehead
8. Technical
9. 32
10. 26
1. Discuss the characteristics of management.

2. Discuss the four management functions in brief.
3. Based on Katz‟ s proposition, briefly discus the essential managerial
skil s.
4. Explain the managerial activities listed by Luthans.
1. Refer section 1.3

Unit 2 Introduction and Foundations of Organizational Behaviour

Glossary
Words Meaning
Hawthorne studies Conducted between 1927 and 1932, these studies led to some of the first discoveries of the
importance of human behavior in organizations
Hierarchy of needs Maslow's hierarchy that assumes human needs are arranged in a hierarchy of importance.
theory
Organization Social unit of people, systematically arranged and managed to meet a need or to pursue
collective goals on a continuing basis.
Summary
Let us sum up what we have studied in this unit:
Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and
structure have on behavior within an organization, then applies that knowledge to make organizations work
more effectively. Specifically, OB focuses on how to improve productivity, reduce absenteeism and turnover,
and increase employee citizenship and job satisfaction. An organization consists of people and so it is also a
social system.
The field of organizational behavior (OB) draws primarily from the behavioral science disciplines of psychology,
social psychology, and cultural anthropology. The areas on which OB focuses are individuals who will often be
working within groups, which themselves work within organizations, as well as all the interrelationships
between them. Some of the specific themes embraced by OB are personality theory, attitudes and values,
motivation and learning, interpersonal behavior, group dynamics, leadership and teamwork, organizational
structure and design, decision-making, power, conflict, and negotiation. OB is an interdisciplinary field, it has
distinctly humanistic outlook, it is performance oriented, it considers external environment as critical, it uses
scientific method and it has an applications orientation.
The three broad levels of analysis are at individual level, group level and organizational level. Further to this,
Wood (1997) provides a useful model for exploring behavioral events. He suggests that different levels of
analysis can be applied when examining the significance of an organizational issue. He proposes eight,
namely: individual, team, inter-group, organizational, inter-organizational, societal, international, and global.
A large number of people have contributed to the growth of OB as a discipline. Some of the most important
works have been done by Adam Smith, Frederick Taylor, Henri Fayol, Max Weber, Mary parker Follet,
Abraham Maslow, B. F. Skinner, to name a few. Organizational behavior is an applied behavioral science that
is built upon contributions from a number of behavioral disciplines. The main areas are psychology, sociology,
social psychology, anthropology, and political science.
Terminal Questions
1 1. Discuss the level of analysis.
2 2. Explain Fayol‟s administrative theory.
3 3. What is Weber‟s ideal bureaucratic structure?
4 4. Write a note on contributing disciplines in the OB field.
Answers to Terminal Questions

1 1. Refer section 2.3
1. Buchanan and Huczynski (1997) have defined Organizations as “_________ arrangements”.

2. Barnard (1938) defined Organizations “as system of _______ activities”.
3. OB is concerned with “the study of the structure, functioning and performance of organizations, and the
behavior of groups and individuals within them”. This definition was given by ________
4. Best Deal retails team is consciously coordinated social unit, composed of a group of players that functions
on a relatively continuous basis to achieve a common goal or set of goals, and thus, it may best be described
as:
A. An organization
B. A club
C. A company
D. A profit centre
5. The issues related to personality, creativity and motivation are related to ______level of analysis.
6. Organization culture and organization structure are aspects related to the _____level of analysis.
7. Eight parameters for level of analysis were proposed by _______in 1997.
8. Adam Smith stated that organizations and society would reap from the __________ of labor.
9. Taylor has proposed ____________ principles of management.
10. Fayol has proposed _______________ theory.
11. _______________ is the science that attempts to measure, explain, and at times change the behavior of
humans and other animals.
12. _______________ blends the concepts of psychology and sociology.
13. Political science studies the behavior of individuals and groups within a ________________ environment.

1 1. Social
2 2. Co-operative
3 3. Pugh
4 4. An Organization (A)
5 5. Individual
6 6. Organizational
7 7. Wood
8 8. Division
9 9. Scientific
10 10. Administrative
11 11. Psychology
12 12. Social psychology
13 13. Political
Unit 3 Learning and Ability

Glossary
Terms Meaning
Ability Ability is an Individual's capacity to perform the various tasks in a job.
Learning Learning is a relatively permanent change in behaviour potentially that results from reinforced
practice or experience.
Positive The process of acknowledging specific behaviors with positive feedback, such as a smile, praise or
Reinforcement reward.
Reinforcement The practice of providing positive feedback to an individual or groups of individuals after completion
of a particular project or achievement of a particular goal.
Summary
Let us sum up what we have discussed in this unit.
Learning refers to a process that enhances the knowledge, skill and attitude (KSA) of individuals, to increase
his/her willingness to adopt those newly acquired KSA and to implement them at the workplace.
Characteristics of learning are: learning involves change; change must be relatively permanent; learning is
concerned with behavior; and some form of experience is necessary for learning.
There are three theories of learning namely – classical conditioning, operant conditioning, and social learning.
Classical Conditioning is a form of associative learning process proposed by Pavlov. This process involves
presentations of a neutral stimulus along with a stimulus of some significance. The neutral stimulus does not
lead to an overt behavioral response from the organism. This is called as Conditioned Stimulus (CS).
Significant stimulus evokes an innate, often reflexive, response. This is called Unconditioned Stimulus (US)
and Unconditioned Response (UR), respectively. If the CS and the US are repeatedly paired, eventually the
two stimuli become associated and the organism begins to produce a behavioral response to it. It is the
Conditioned Response (CR).
The operant conditioning theory is proposed by B.F. Skinner. This is based on the idea that learning is a
function of change in overt behavior. Changes in behavior are the result of an individual's response to stimuli.
When a particular Stimulus-Response (S-R) pattern is reinforced (rewarded), the individual is conditioned to
respond. Reinforcement is the key element in Skinner's S-R theory. A reinforcer is anything that strengthens
the desired response. The social learning theory was proposed by Bandura. It recognizes the importance of
observing and modeling the behaviors, attitudes, and emotional reactions of others. According to Bandura
(1977), most human behavior is learned observationally through modeling: from observing others one forms an
idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for
action. Social learning theory explains human behavior in terms of continuous reciprocal interaction between
cognitive, behavioral, and environmental influences. When a systematic attempt is made to change
individuals‟ behavior by directing their learning in graduated steps, it is called shaping behavior.
There are four methods of Shaping Behavior. They are: positive reinforcement, negative reinforcement,
punishment, and extinction. Both positive and negative reinforcement result in learning. They strengthen a
response and increase the probability of repetition. Both punishment and extinction weaken behavior and tend
to decrease its subsequent frequency.
The typical OB Mod program follows a five-step problem-solving model: Identifying critical behaviors,
Developing baseline data, Identifying behavior consequences, Developing and implementing an intervention
strategy, and Evaluating performance improvement.
The biographical characteristics include gender, age, marital status and tenure. Ability reflects a person‟s
existing capacity to perform the various tasks needed for a given job and includes both relevant knowledge and
skills (Cummings & Schwab, 1973). Aptitude represents a person‟s capability of learning something. In other
words, aptitudes are potential abilities, whereas abilities are the knowledge and skills that an individual
currently possesses. The abilities include intellectual and physical abilities.
Terminal Questions
1 1. Explain the classical conditioning theory and social learning theory.
2 2. Describe the four methods of shaping behavior.
3 3. Briefly explain the different types of reinforcement schedules.
4 4. Explain the biographical characteristics.

4 4. Refer section 3.6.1
Self Assessment Questions

1. Classical Conditioning is a form of associative learning process proposed by _________.
2. The operant conditioning theory is based on the idea that learning is a function of change in ___________
behavior
3. Social learning has __________ processes.
4. __________________is causing an unpleasant condition in an attempt to eliminate an undesirable behavior
5. _________________ is eliminating any reinforcement that is maintaining a behavior
6. In general, variable schedules tend to lead to __________ performance than fixed schedules
7. The typical OB Modification program follows a _________ step problem-solving model
8. OB Modification has been used by a number of organizations to improve employee ____________.
9. Continental Airlines‟ lottery system follows a _______ schedule.
10. Forbes magazine used __________ to cut its health care costs.
11. Women‟s absenteeism rates tend to be _________ than those of men.
12. There is a _______ relationship between tenure to absence.
13. Ability to do speedy and accurate arithmetic is called _________ aptitude.
14. Interpersonal intelligence means ____________ smart.
15. Ability to exert force against external objects is called as _________ strength.

1 1. Pavlov
2 2. Overt
3 3. Four
4 4. Punishment
5 5. Extinction
6 6. Higher
7 7. Five
8 8. Productivity
9 9. Variable-ratio
10 10. Well pay
11 11. Higher
12 12. Negative
1 13. Number Aptitude
2 14. People
3 15. Static Strength
Unit 4 Value, Attitude and Job Satisfaction
Glossary
Words Meaning
Attitude Person‟s complexes of beliefs and feelings about specific ideas, situations, or other
people.
Ethics An individual's personal beliefs about what is right and wrong or good and bad.
Job satisfaction The extent to which a person is gratified or fulfilled by his or her work.
Value Stable long lasting beliefs about what is important in a variety of situations.
Summary
Let us sum up what we have discussed in this unit:
Values represent basic convictions that a specific mode of conduct or end-state of existence is personally or
socially preferable to an opposite or converse mode of conduct or end-state of existence. Types of values
include, ethical/moral values, doctrinal/ideological (political, religious) values, social values, and aesthetic
values. Values build the foundation for the understanding of attitudes and motivation of an individual, since;
value has a great impact on perceptions. Values shape relationships, behaviors, and choices. The more
positive our values, more positive are people‟s actions. A significant portion of the values an individual holds is
established in the early years from parents, teachers, friends, and others.
Rokeach, in his Value Survey (Rokeach Value Survey- RVS), proposed two sets of values. They are: Terminal
values and Instrumental values. Each set contains 18 individual value items. Terminal values refer to desirable
end-states of existence, the goals that a person would like to achieve during his/her lifetime. Instrumental
values refer to preferable modes of behavior, or means of achieving the terminal values.
Hofstede proposed four dimensions of national culture: Power distance (this dimension measures the 'social
equality'), Uncertainty avoidance (this is a representation of a society's tolerance for uncertain situations),
Individualism vs. collectivism (individualism gauges to what extent individuals in a country consider themselves
as distinct entities rather than as members of cohesive groups and collectivism emphasizes on 'social ties
or bonds' between individuals) and Masculinity vs. femininity (this dimension refers to what extent dominant
values in a society emphasizes masculine social values like a work ethic expressed in terms of money,
achievement and recognition as opposed to feminine social role which show more concern for people and
quality of life).
Attitudes are evaluative statements that are either favorable or unfavorable concerning objects, people, or
events. Attitudes are not the same as values, but the two are interrelated. There are three components of an
attitude: Cognition (the mental process involved in gaining knowledge and comprehension), Affect (the
emotional or feeling segment of an attitude) and Behavior (an intention to behave in a certain way toward
someone or something). Festinger (1957), while linking attitudes with behavior, argued that, any form of
inconsistency is uncomfortable and individuals will attempt to reduce the dissonance. The desire to reduce
dissonance would be determined by the importance of the elements creating the dissonance, the degree of
influence the individual believes he/she has over the elements and the rewards that may be involved in
dissonance.
Self-perception theory (Bem, 1967) proposes that attitudes are used to make sense out of an action that has
already occurred rather than devices that precede and guide action. In contrast to the cognitive dissonance
theory, attitudes are just casual verbal statements and they tend to create plausible answers for what has
already occurred.
4.7 Terminal Questions
1 1. What is Rokeach Value Survey- RVS? Explain the values described in this survey.
2 2. Discuss Contemporary work cohort.
3 3. Write a note on Attitude and characteristics of attitude.
4 4. Discuss the important factors conductive to job satisfaction.

1 1. ___________ values refer to desirable end-states of existence, the goals that a person would like to
achieve during his/her lifetime.
2 2. Social Recognition is ____________ value.
3 3. ___________ values refer to preferable modes of behavior, or means of achieving the terminal
values.
4. Workers who entered the workforce from the early 1940s through the early 1960s, are called
________________.
5. _______________ began to enter the workforce from the mid-1980s.
6. Power distance measures the _________________.
7. ______________ gauges to what extent individuals in a country consider themselves as distinct entities
rather than as members of cohesive groups.
8. Hofstede and Bond (1988) have identified a fifth dimension called __________________
9. There are ____________ components of an attitude
10. Festinger has proposed _________________________ theory.
11. ________________ theory proposes that attitudes are used to make sense out of an action that has
already occurred rather than devices that precede and guide action.

1 1. Terminal
2 2. Terminal
1 3. Instrumental
2 4. Veterans
3 5. Xers
4 6. Social equality
5 7. Individualism
6 8. Long-term orientation
7 9. Three
8 10. Cognitive Dissonance
9 11. Self-perception
Unit 5 Personality
1. The heredity approach argues that the ultimate explanation of an individual‘s personality is the molecular
structure of the _____________
2. One of the most important determinants of the personality of a person is the________ family
3. Cattell referred to these 16 factors as _____________ factors.
4. The MBTI classifies human beings into _____________ opposite pairs
5. Locus of control was formulated within the framework of Rotter's ___________ theory of personality
6. Holland has proposed _________ themes of people and work environments, within which all jobs can be
classified
7. _____________ person prefers verbal activities in which there are opportunities to influence others and
attain power.
Summary
The term 'personality' has been derived from the Latin term 'persona' which means to 'speak through'. The
factors affecting personality development are Heredity, Environment, Culture, Family, and Situation.
Personality Traits are underlying tendencies to behave in a consistent and distinctive style and they describe
the frequency or intensity of a person's feelings, thoughts, or behaviors. Possession of a trait is, therefore, a
matter of degree. Early research on personality traits resulted in isolating large numbers of traits, which made it
impossible to predict behavior.
According to Sheldon(1940) there is a link between physiological traits and characteristics of an individual with
his behavior. There are basically three types-endomorph, mesomorph and ectomorph. Cattell‘s (1973) is one
of the most important personality trait theory, where the number of traits have been reduced. Cattell referred to
these 16 factors as primary factors. The MBTI classifies human beings into four opposite pairs (dichotomies),
base on their psychological opposites. These four opposite pairs result into 16 possible combinations. Many
researchers argue that five basic dimensions underlie all other personality dimensions (e.g; McCrae and
Costa, 1990; Digman, 1997). The five basic dimensions are Extraversion, Agreeableness, Conscientiousness,
Emotional stability, and openness to experience. A person‘s perception of the source of his/her fate is termed
locus of control. Locus of control was formulated within the framework of Rotter's (1954) social learning theory
of personality. Rotter (1975) pointed out that internality and externality represent two ends of a continuum, not
an either/or typology. Internals tend to attribute outcomes of events to their own control.
Machiavellianism is the term that some social and personality psychologists use to describe a person's
tendency to deceive and manipulate others for personal gain. Self-esteem is defined as the degree to which
people like or dislike themselves (Robbins, 2003). Self-monitoring refers to an individual‘s ability to adjust his
or her behavior to external, situational factors. Individuals high in self-monitoring show considerable
adaptability. Type A personality is a set of characteristics that includes, being impatient, excessively time-
conscious, insecure about one's status, highly competitive, hostile and aggressive, and incapable of relaxation.
Type B personality is rarely hurried by the desire to obtain an increasing number of things or participate in
events demanding an ever-decreasing amount of time.
According to Holland (1997), workers are not passive victims of their environments, but actively seek
potentially compatible work environments. If an individual‘s personality and the work environment ―fit‖ – that
is, if the personality is congruent with the work environment – the individual will most likely enjoy the work and
develop and grow in the career. Matching people to the organizational culture at the time of hiring should result
in higher employee satisfaction and reduced turnover.
Terminal Questions
1 1. Describe the determinants of personality.
2 2. Explain The Myers-Briggs Type Indicator.
3 3. Explain the personality dimensions mentioned in big five model.
4 4. Explain Type A and Type B personality.
5 5. Based on Holland‘s approach, explain personality-job-fit.
5.7 Answers
1 1. Genes
2 2. Immediate
3 3. Primary
4 4. Four
5 5. Social learning
6 6. Six
7 7. Enterprising

Glossary
Words Meaning
Agreeableness A person's ability to get along with others.
Culture Broadly, social heritage of a group (organized community or society). It is a pattern of responses
discovered, developed, or invented during the group's history of handling problems which arise from
interactions among its members, and between them and their environment
Extraversion The quality of being comfortable with relationships; the opposite extreme, introversion, is characterized
by more social discomfort
Family Social unit of two or more persons related by blood, marriage, or adoption and having a shared
commitment to the mutual relationship. See also household
Locus of The extent to which people believe their circumstances are a function of their own actions versus
control external factors beyond their control
Personality The relatively stable set of psychological attributes that distinguish one person from another.
Unit 6 Emotions
1. Subjective emotional responses are the result of __________ changes within human bodies.
2. Both feedback from peripheral responses and a ___________ appraisal of what caused those responses
produce emotions.
3. _____________ emotions are an individual‟s actual emotions.
4. Ekman (1999) has found _________ emotions which are universally recognized and applicable.
5. People who suffer from _________ rarely cry and are often seen by others as bland and cold
6. The most popular and accepted mixed model of emotional intelligence is the one proposed by
____________.
7. Personal competence comprises of ______________ dimensions of emotional intelligence.
8. Social competence comprises of _____________ dimensions
Summary
Let us sum up what we have discussed in this unit
„Emotion‟ is used to designate "a state of consciousness having to do with the arousal of feelings (Webster‟s
New World Dictionary)." It is "distinguished from other mental states, from cognition, volition, and awareness of
physical sensation." Feeling refers to "any of the subjective reactions, pleasant or unpleasant" that one may
experience in a situation.
There are many theories of emotion. James-Lange Theory proposes that subjective emotional responses are
the result of physiological changes within human bodies. Cannon-Bard theory proposes that emotion-provoking
events induce the subjective emotional experiences and physiological arousal simultaneously. Schachter-
Singer theory proposes that both feedback from peripheral responses and a cognitive appraisal of what caused
those responses produce emotions. How one interprets the peripheral response will determine the emotion
he / she feels. According to Lazarus' appraisal theory, an individual makes an initial and sometimes
unconscious cognitive appraisal of the situation to decide, if there is a threat; coping action is taken if
necessary; and the individual takes a closer look and identifies the emotions he or she is feeling. Weiner, in his
theory, proposes that certain attributions produce specific emotions.
Once the initial evaluation has been made, the individual looks at what caused the event. These attributions of
causality can modify the emotion felt. It is the interaction of the perceived internal and external causes,
controllability and outcome that will determine the emotional responses. Felt emotions are an individual‟s
actual emotions. Displayed emotions are those that are organizationally required and considered appropriate in
a given job. They are learned. Felt and displayed emotions may be different. This is particularly true in
organizations, where role demands and situations often require people to exhibit emotional behaviors that
mask their true feelings.
There are two Views of Culture and Emotion. In “Universality” view, it is believed that emotions are part of
human nature and in all cultures universally the same set of basic emotions. Based on his cross-cultural
research, Ekman (1999) has found six emotions which are universally recognized and applicable. They are:
Anger, Fear, Sadness, Happiness, Disgust, and Surprise. Women are assumed to experience more frequent
and intense emotions, whereas men are assumed to be emotionally inexpressive and to have less intense
emotional experiences. However, researchers have argued that the stereotype of men as unemotional is more
accurate for adult targets than for child targets because males learn to control their emotions as they get older.
Emotional intelligence is an aggregate of individuals‟ cognition of own and others' emotions, feeling,
interpretation and action as per environmental demand to manipulate the consequence, which in turn, results
in superior performance and better human relationship. The most popular and accepted mixed model of
emotional intelligence is the one proposed by Goleman. He viewed emotional intelligence as a total of personal
and social competences. Personal competence determines how we manage ourselves, whereas social
competence determines how we handle our interpersonal relationships. Assuming that emotional intelligence is
important, the question of assessment and measurement becomes particularly pressing.
Terminal Questions
1 1. Briefly explain Lazarus' appraisal theory and Weiner's attribution theory.
2 2. What are universally recognized emotions?
3 3. What is Alexithymia? What are the symptoms of this disease?
4 4. What is the relationship of gender with emotion?
5 5. Explain Goleman‟s emotional intelligence model.
6.7 Answers
1 1. Physiological
2 2. Cognitive
3 3. Felt
4 4. Six
5 5. Alexithymia
6 6. Goleman
7 7. Three
8 8. Two

Glossary
Words Meaning
Attribution Suggests that we attribute causes to behavior based on observations of certain
theory
Emotions The feelings experienced towards an object, person or event.
Emotional A form of intelligence relating to the emotional side of life, such as the ability to recognize and manage
intelligence one's own and others' emotions, to motivate oneself and restrain impulses, and to handle interpersonal
relationships effectively
Personal The set of individual personality traits which enable individuals to manage themselves independently
competence and capably.
Social The ability to achieve personal goals in social interaction while simultaneously maintaining positive
competence relationships with others over time and across situations
Unit 7 Perception
1 1. _____________ factors shape perception of an individual.
2 2. The ______________ in which objects or events are seen by individuals also influence their
attention.
3. Attribution theory was proposed by __________ Kelley
4. ___________ occurs, if, everyone who is faced with a similar situation responds in the same way.
5. The tendency of individuals to attribute their own successes to internal factors is
called__________________.
6. The ______________ occurs when we draw a general impression on the basis of a single characteristic.
7. The process through which one‟s reaction is influenced by other persons he has encountered recently is
called ___________.
8. This tendency to attribute one‟s own characteristics to other people is called __________.
1 9. ___________ is the tendency for someone‟s expectations about another to cause that person to
behave in a manner consistent with those expectations.
2 10. A negative instance of the self-fulfilling prophecy is called _________________.
11. Decision-making occurs as a reaction to a ______________.
12. While making a decision, data are typically received from ____________ sources.
13. The rational decision making model proposes _______________ steps.
14. People respond to a problem with a limited information-processing capability. As a result, people seek
solutions that are satisfactory and sufficient. This is called __________________
Summary
Indviduals behave in a given manner based not on the way their external environment actually, is but, rather,
on what they see or believe it to be. Perception can be defined as s a process by which individuals organize
and interpret their sensory impressions in order to give meaning to their environment. Since people‟s behavior
is based on their perception of what reality is, not on reality itself. Three factors that shape perception of an
individual are perceiver, target and situation. An important element in perception is attribution process.
Attribution theory (Kelley, 1972) suggests that when we observe an individual‟s behavior, we attempt to
determine whether it was internally or externally caused. Internally caused behaviors
are those that are believed to be under the personal control of the individual. Externally caused behavior is
seen as resulting from outside causes; that is, the person is seen as having been forced into the behavior by
the situation.
Research evidence shows that individuals have a tendency to underestimate the influence of external factors
and overestimate the influence of internal or personal factors. There is also a tendency for individuals to
attribute their own successes to internal factors, such as, ability or effort while putting the blame for failure on
external factors, such as, luck. This is called the “self-serving bias” and suggests that feedback provided to
employees will be distorted by recipients. Individuals have a tendency to use a number of shortcuts when they
judge others. An understanding of these shortcuts can be helpful toward recognizing when they can result in
significant distortions. Any characteristic that makes a person, object, or event stand out will increase the
probability that it will be perceived. It is impossible for an individual to internalize and assimilate everything that
is seen .Only certain stimuli can be taken in selectively. The halo effect (Murphy & Anhalt, 1992) occurs when
we draw a general impression on the basis of a single characteristic. Individuals do not evaluate a person in
isolation. Their reaction to one person is influenced by other persons they have encountered recently. This
tendency to attribute one‟s own characteristics to other people–which is called projection–can distort
perceptions made about others. When managers engage in projection, they compromise their ability to
respond to individual differences. They tend to see people as more homogeneous than they really are.
Stereotyping is the process of judging someone on the basis of our perception of the group to which he or she
belongs. Generalization is not without advantages (Hilton & Hippel, 1996).
Decision-making occurs as a reaction to a problem. Problem is defined as a discrepancy between some
current state of affairs and some desired state, needing attention for alternative courses of action. The
awareness that a problem exists and that a decision needs to be made is a perceptual issue. Every decision
requires interpretation and evaluation of information. The optimizing decision maker is rational. He or she
makes consistent, value-maximizing choices within specified constraints. This also includes the resource
crunch and other limitations as well. Most decisions in the real world do not follow the rational model.
Decision-makers generally make limited use of their creativity. Choices tend to be confined to the
neighborhood of the problem symptom and to the neighborhood of the current alternative. When faced with a
complex problem, most people respond by reducing the problem to a level at which it can be readily
understood, due to limited information-processing capability. As a result, people seek solutions that are
satisfactory and sufficient. This is called bounded rationality (Simon, 1947). Individuals operate within the
confines of bounded rationality. They construct simplified models that extract the essential features.
Terminal Questions
1 1. Explain Kelley‟s attribution theory.
2 2. Explain Halo effect and contrast effect with examples.
3 3. Describe the rational decision making process.
4 4. What is bounded rationality?
7.10 Answers
1 1. Three
2 2. Context
3 3. Kelley
4 4. Consensus
5 5. Self-serving bias
6 6. Halo effect
7 7. Contrast effect
8 8. Projection
9 9. Self-fulfilling prophecy
10 10. Golem Effect
11 11. Problem
12 12. Multiple
13 13. Six
14 14. Bounded rationality

Glossary
Words Meaning
theory
Bounded Concept that decision makers (irrespective of their level of intelligence) have to work under three
rationality unavoidable constraints
Halo effect Transfer of goodwill or positive feelings about one characteristic (such as pleasing appearance) of a
product or person to another, possibly unrelated, characteristics (such as performance). Contrasts with
devil's horns.
Pygmalion People tend to live up to what's expected of them and they tend to do better when treated as if they are
effect capable of success. These are the lessons of The Pygmalion Effect

theory
Unit 8 Motivation
1. In Maslow’s theory, _____________ needs include hunger, thirst, shelter, sex, and other bodily needs
2. In theory __________, management assumes employees are inherently lazy and will avoid work
3. According to Herzberg, motivators are ____________ factors.
4. Alderfer classifies needs into __________ categories into hierarchical order.
5. The need to excel and to achieve in relation to a set of standards, to strive to succeed is called need for
________________.
6. The perceived fairness of the interpersonal treatment used to determine organizational outcomes is called
as ______________.
7. Employees should have ____________ and specific goals.
8. Rewards should be ___________ on performance.
1 9. MBO and ____________Theory is closely linked
2 10. Employee Recognition Programs has close link with ____________ Theory
11. The professional employees likely to seek more _____________ satisfaction from their work than blue-
collar employees.
12. Temporary workers may be motivated if they are provided with ___________ job opportunity.
Summary
Motivation is “the processes that account for an individual’s intensity, direction, and persistence of effort toward
attaining a goal”. According to Maslow’s theory, human beings have five needs, which influence their behavior.
Those five needs are Physiological, Safety, Social, Esteem, and Self-actualization needs. In theory X and Y,
McGregor argued that a manager’s view of the nature of human beings is based on a certain grouping of
assumptions and he or she tends to mould his or her behavior toward employees according to these
assumptions. Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's attitudes
about work. These two factors are motivators and hygiene factors and this theory is also called motivation-
hygiene theory.
Alderfer classified needs into three categories into hierarchical order. They are: the existence category, the
Relatedness category and the Growth category. This theory is very similar to Maslow’s theory. Existence need
corresponds with Maslow’s physiological and safety needs, Relatedness need corresponds with Maslow’s
social needs and Growth need corresponds with Maslow’s esteem and self-actualization needs. McClelland’s
theory focuses on three needs: achievement, power, and affiliation. According to this theory, people with high
need for achievement have a compelling drive to succeed. Individuals high in need for power enjoy being “in
charge” of any situation. Individuals with high need for affiliation motive strive for friendship, prefer cooperative
situations rather than competitive ones, and desire relationships that involve a high degree of mutual
understanding.
Cognitive Evaluation theory proposes that when extrinsic rewards are used by organizations as payoffs for
superior performance, the intrinsic rewards, which are derived from individuals doing what they like, are
reduced. Goal- Setting Theory proposes that challenging goals produce a higher level of output than do the
generalized goals. More difficult the goal, the higher the level of performance will be. Reinforcement theory
argues that reinforcement conditions human behavior. According to this theory, behavior is a function of its
consequences. Behavior is environmentally caused.
According to Equity theory, employees make comparisons of their job inputs and outcomes relative to those of
others. If, an individual perceives the input-outcome ratio to be equal to that of the relevant others with whom
he/she compares his/herself, a state of equity is said to exist. He/she perceives the situation as fair. If the ratio
appears to be unequal, the individual experience inequity. Expectancy theory argues that the strength of a
tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a
given outcome and on the attractiveness of that outcome to the individual.
Terminal Questions
1. Compare Maslow’s hierarchy of needs with Alderfer’s ERG theory.
2. Explain goal setting theory.
3. What is organizational justice? Discuss various types of organizational justice.
4. Explain the concept of MBO and QC.

1 1. Physiological
2 2. X
3 3. Intrinsic
4 4. Three
5 5. Achievement
6 6. Interactional Justice
7 7. Tangible
8 8. Contingent
9 9. Goal-Setting
10 10. Reinforcement
11 11. Intrinsic
12 12. Permanent

1. Refer section 8.2 and 8.3
Glossary
Words Meaning
Expectancy theory Suggests that people are motivated by how much they want something and the likelihood
they perceive of getting it.
Self-Esteem The extent to which a person believes he or she is a worthwhile and deserving individual
Motivation The forces within an individual that affect his or her direction, intensity and persistence of
voluntary behavior.
MBO Management by A collaborative goal-setting process through which organizational goals cascade down
objectives throughout the organization
Unit 9 Leadership
1 1. _________ may be said to be a proponent of The Great Man Theory.
2 2. _______ is one the main scholars of trait theory approach to leadership.
3 3. McCall and Lombardo (1983) researched both success and failure identified _______ primary traits
by which leaders could succeed or 'derail'
4. This theory was developed by the scholars from Ohio State University during ________.
5. The modifications were made by Robert R Blake and ________to covert the managerial grid into a
leadership grid.
6. A ________ Leader, rather than taking autocratic decisions, seeks to involve other people in the process,
possibly including subordinates, peers, superiors and other stakeholders.
7. ________identified four main styles of leadership, in particular around decision-making.
8. ________ and colleagues did leadership decision experiments in 1939 and identified three different styles of
leadership, in particular around decision-making.
1 9. Major contribution towards development of situational leadership is made by _______and _______.
2 10. The ________ of Leadership was developed to describe the way that leaders encourage and
support their followers in achieving the goals they have been set by making the path that they should take clear
and easy.
3 11. In this model leadership is effective when the leader‟s style is appropriate to the situation, this is
proposed in the contingency model developed by _____.
12. ______leadership is related to management theories.
13. _________leadership is based on relationship rheories.
14. he transactional leadership style was first described by ______ in 1947
15. A leader asking the subordinate “How may I help you?”
________________
16. Such leaders focus on structure, strategy, environment, implementation, experimentation, and adaptation.
______________
Summary
Leadership is a means of directing. It is the ability to influence a group towards the achievement of goals. It is
the human factor that helps a group identify where it is going and then motivates it towards its goals. According
to Drucker, "Leadership is the lifting of man‟s visions to higher sights, the raising of man's performance to a
higher standard, the building of man's personality beyond its normal limitations.”(1954).
Aristotle may be said to be a proponent of The Great Man Theory as he is quoted as saying, “Men are marked
out from the moment of birth to rule or be ruled.” This theoretical perspective was developed further by
historians who studied the lives of respected leaders for clues to their greatness but it has never become part
of mainstream organizational psychology. The major assumptions are leaders are born and not made and
great leaders will arise when there is a great need. Stogdill is one the main scholars of trait theory approach to
leadership. Two of Stogdill's surveys established certain traits which were consistent of leaders. These surveys
took place from the 1930s-1950s.Behavioural theory was developed by the scholars from Ohio State University
during 1940-1950‟s. The study was conducted to understand “what behaviors make the leaders
effective?”Similar research was also conducted at University of Michigan and Harvard University.
The Managerial Grid was modified by Robert R Blake and Anne Adams McCanse. and it was named as
Leadership Grid. Leadership Grid is an approach to understanding a leader‟s concern for results (production)
and concern for people. Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified
three different styles of leadership, in particular around decision-making. These are Autocratic, Democratic and
Laissez-faire. Rensis Likert identified four main styles of leadership, in particular around decision-making and
the degree to which people are involved in the decision. Situational leadership theories in organizational
studies are a type of leadership theory, leadership style, and leadership model that presumes that different
leadership styles are better in different situations, and that leaders must be flexible enough to adapt their style
to the situation they are in.This was developed by Hersey and Blanchard.
The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support
their followers in achieving the goals they have been set by making the path that they should take clear and
easy. Relationship theories (also known as “Transformational theories”) focus upon the connections formed
between leaders and followers. These leaders motivate and inspire people by helping group members see the
importance and higher good of the task. Transactional leadership is based in contingency, in that reward or
punishment is contingent upon performance. Management theories (also known as “Transactional theories”)
focus on the role of supervision, organization, and group performance. The Four Framework Approach,
Bolman and Deal (1991) suggest that leaders display leadership behaviors in one of four types of frameworks:
Structural, Human Resource, Political, or Symbolic.
Terminal Questions
1. Discuss the trait theory of leadership in detail.
2. Explain Leadership Grid.
3. Write a note on Lewin‟s Leadership styles.
4. Describe transformational leadership/
Answerss to Self Assessment Questions

1 1. Aristotal
2 2. Stogdill
3 3. Four
4 4. 1940-1950
5 5. Anne Adams Mccanse
6 6. Participative
7 7. Likert
8 8. Lewin
9 9. Hersey and Blanchard
10 10. Path Goal Theory
11 11. Fiedler
12 12. Transactional
13 13. Transformational
14 14. Max Weber
15 15. Servant Leader
16 16. Structural Leader
1. Refer to section 9.2.2
4. Refer to section 9.6
Glossary
Words Meaning
Leadership The process of influencing people and providing an environment for them to achieve team or
organizational objectives.
Leadership A model of leadership developed by by Robert R Blake and Anne Adams McCanse,to indicate the
Grid leadership effectiveness based on the concern for people and concern for task
Unit 10 Group Behavior

1 1. Formal groups come into existence for serving a specific _________________ purpose.
2 2. A ______________ group is neither formally structured nor organizationally determined.
3 3. All command groups are also __________ groups.
4 In the ___________ stage the members are entering the group
5. The __________________ stage of group development is especially important for the many temporary
groups that are rampant in today’s workplaces.
6. Organizations have ____________ structures that define who reports to whom, who makes decisions, and
what decisions individuals or groups are empowered to make.
7. The more formal regulations that the organization imposes on all its employees, the more the behavior of
work group members will be _________ and _________.
8. Attributes that have a positive connotation in our culture tend to be ____________ related to group
productivity, morale, and cohesiveness
9. No ___________ personality characteristic is a good predictor of group behavior.
10. By watching and imitating __________ members of a group the new comers learn how to take on their
roles effectively and also learn how to play them well.
11. Role _________ is tuning oneself and behaving in a socially desirable manner is a part of fulfilling role
expectations in a given situation in the context of achieving group goals and organizational goals.
12. When a group member is faced with the challenge of playing multiple roles, role _______ may occur
13. All groups have ________ “acceptable standards of behavior that are shared by the group’s members.
14. __________ norms come from informal work groups and primarily regulate social interactions within the
group.
15. The _________ group is characterized as one where the person is aware of the others
16. Status is a _________ defined position or rank given to groups or group members by others.
17. When status inequity is perceived, it creates ______________ that results in corrective behavior.
18. Schein observes that groups may make decisions through _________ methods.
19. In Decision by_________, two or three people are able to dominate the group into making a decision to
which they agree.
20. Team building is a ____________ way to gather and analyze data to improve teamwork.
21. In ___________________ team – Employees from different work areas but from same hierarchical level,
come together to accomplish a task.
Summary
A group may be defined as a collection of two or more people who work with one another regularly to achieve
common goals. Groups can be of two types: Formal and Informal. Formal groups come into existence for
serving a specific organizational purpose. Individuals’ behaviors in this type of group is aimed at achieving
organizational goals. An informal group is neither formally structured nor organizationally determined. The
Five-Stage Model of group development has five stages: Forming, Storming, Norming, Performing and
Adjourning.
Punctuated equilibrium model of group development proposes that temporary groups with deadlines do not
seem to follow the model explained above. Rather, they follow it Phase I, transition and Phase II. All work
groups are part of larger systems and organizations and therefore cannot exist or work in isolation. It is
therefore influenced by mainly external factors which include organizational strategy, authority structures, rules
and regulations, access to resources, physical work conditions and organizational culture and performance
systems and reward structures. All groups have norms – “acceptable standards of behavior that are shared by
the group’s members.”
Norms serve as a guideline for members detailing what they ought and ought not to do under certain
circumstances. Though a work group’s norms are unique, yet there are still some common classes of norms. A
team is a small group of people with complementary skills, who work actively together to achieve a common
purpose for which they hold themselves collectively accountable (Katzenbach & Smith, 1993). Team building is
a collaborative way to gather and analyze data to improve teamwork (Schermerhorn et al 2002).
Terminal Questions
1 1. Explain the five-stage model of group development.
2 2. Explain the group structure
3 3. Describe the techniques on group decision making.
4. Explain different types of teams.

10.13 Answers
1 1. Organizational
2 2. Informal
3 3. Task
4 4. Forming
5 5. Adjourning
6 6. Authority
7 7. Consistent, predictable
8 8. Positively
9 9. Single
10 10. Senior
1 11. Expectations
2 12. Conflict
3 13. Norms
4 14. Social arrangement
5 15. Reference
6 16. Socially
7 17. Disequilibrium
8 18. Six
9 19. Minority rule
10 20. Collaborative
11 21. Cross-functional
Glossary
Words Meaning
Groupthink The tendency of highly cohesive groups to value consensus at the price of decision quality.
Formal A designated work group defined by the organization's structure

Group
Role Role is a set of norms or expectations applied to the incumbent of a particular position by the role
incumbent and the various other role players
Norms Acceptable standards of behavior that are shared by the group’s members.
Team A small number of people with complementary skills who are committed to a common purpose, common
performance goals, and approach for which they hold themselves mutually accountable
Unit 11 Power and Politics

1 1. Formal power may be categorized into___________ types.
2 2. The opposite of coercive power is __________ power
3 3. Expert power is relative, not ______________.
4. Where success is less predictable, managers are more likely to use __________ and sanctions to achieve
their objectives
5. US people prefer use of reason in contrast to China where _____________ as a tactic is preferred
6. _____________ is the process by which managers help others to acquire and use the power required to
make decisions affecting both themselves and their work.
7. When an organization attempts to move power down the ________, it must also alter the existing pattern of
position power
1 8. Successful coalitions have been found to contain ___________ membership.
2 9. More coalitions are likely be created where there is a great deal of task and resource
__________________.
3 10. Coalition formation will be influenced by the __________ tasks that workers perform.
11. Organizational politics is viewed as the art of creative _____________ among competing interests
12. Employees who are ___________ self-monitors, possess an internal locus of control
13. The ______________ personality is comfortable using politics as a means to further his/her self-interest
and does not see it as an unethical action.
Summary
Power is the ability to make things happen in the way an individual wants, either by self or by the subordinates.
The essence of power is control over the behavior of others (French & Raven, 1962). Managers derive power
from both organizational and individual sources. These sources are called position power and personal power,
respectively. In an organizational context leadership and power are related to each others. Power is used by
leaders as a means to attain group goals. In other words, power is a means of facilitating their achievement of
goals and objectives that they have set for themselves in view of organizational requirements.
Power can be categorized into two types: Formal and informal. Formal Power: is based on the position of an
individual in an organization. Formal power is derived from either one’s ability to coerce or reward others or is
derived from the formal authority vested in the individual due to his/ her strategic position in the organizational
hierarchy. Formal power may be categorized into four types: Coercive Power, Reward Power, Legitimate
Power, Information Power.
Personal power resides in the individual and is independent of that individual’s position. . Three bases of
personal power are expertise, rational persuasion, and reference. Using position and personal power well to
achieve the desired influence over other people is a challenge for most managers. There are many useful
ways of exercising relational influence. The most common strategies involve: Reason, Friendliness, Coalition,
Bargaining, Assertiveness, Higher authority, and Sanctions.
Empowerment is the process by which managers help others to acquire and use the power required to make
decisions affecting both themselves and their work. Moreover, today, managers in progressive organizations
are expected to be competent at empowering the people with whom they work. Rather than concentrating
power only at higher levels as found in the traditional “pyramid” of organizations, this concept views power to
be shared by all working in flatter and more collegial structures. Individuals who lose power or are out of power
seek to increase their power individually. If they fail to do so then the alternative is to form a coalition–an
informal group bound together by the active pursuit of a single issue. The natural way to gain influence is to
become a power holder but this may be difficult, risky, costly, or impossible. Politics is defined as those
activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to
influence, the distribution of advantages and disadvantages within the organization.
Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to
obtain sanctioned ends through non-sanctioned means and the art of creative compromise among competing
interests.

1 1. Discuss the bases of power.
2 2. Explain empowerment.
3 3. Explain Maccoby's Four Political Types
Answers
1 1. Four
2 2. Reward
3 3. Absolute
4 4. 1.Assertiveness
5 5. Coalition
6 6. Empowerment
7 7. Hierarchy
8 8. Fluid
9 9. Interdependence
10 10. Actual
11 11. Compromise
12 12. High
13 13. Machiavellian

Glossary
Words Meaning
Delegation Delegation is defined as granting decision-making authority to people at lower levels
Empowerment Sharing power in such a way that individuals learn to believe in their ability to do the job.
Expert power The extent to which a person controls information that is valuable to someone else.
Power Power is the social force that allows select persons to mobilize others; to organize others to act in
concert; and to melt away resistance to leaders’ authority.
Politics Politics is the use of power to develop socially acceptable ends and means that balance individual and
collective interests.
Unit 12 Conflict Management

1. Who defines conflict "As any situation in which incompatible goals, attitudes, emotions or behaviours lead to
disagreement or opposition between two or more parties." __________
2. Conflict can occur when individuals or groups perceive they have mutually _________ goals or values
3. Intrapersonal conflict may be of _________ types.
4. _____________________ conflict occurs when a person must choose between two negative and equally
unattractive alternatives.
5. _________ conflict occurs among members of different teams or groups
6. Conflict occurs whenever ____________ exist in a social situation over issues
7. The ___________ View of conflict encourages conflict on the grounds that a harmonious, peaceful, tranquil,
and cooperative group is prone to becoming static and non-responsive to needs for change and innovation
8. ___________ conflict relates to the content and goals of the work.
1 9. Communication becomes a source of conflict due to _________ in the communication channels.
2 10. The potential for conflict is greatest where group members are __________ and turnover is
__________ .
3 11. Personal variables include individual value systems and ___________ characteristics.
12. There are ___________ direct approaches to conflict management.
13. ____________ occurs when each party gives up something of value to the other.
14. ___________________ is a process where conflicts are reported to the senior levels to reconcile and
solve.
15. There are __________ general approaches to negotiation.
16. _________ bargaining strategy is adopted to create a win-win solution.
17. Personality traits have no significant ________ effect on the bargaining process or negotiation outcomes.
Summary
Conflict occurs whenever disagreements exist in a social situation over issues (work related or personal).
Conflict is a process that begins when one party perceives that another party has negatively affected, or is
about to negatively affect, something that the first party cares about (Thomas, 1992). Conflict can be either
constructive or destructive. Constructive conflict prevents stagnation, stimulates creativity, allows tensions to
be released. However, excessive levels of conflict can hinder the effectiveness of a group or an organization,
lessens satisfaction of group members, increases absence and turnover rates, and, lowers productivity.
Functional, constructive forms of conflict support the goals of the group and improve its performance.
Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. Task conflict relates
to the content and goals of the work. Low-to-moderate levels of task conflict are functional and consistently
demonstrate a positive effect on group performance because it stimulates discussion, improving group
performance. Relationship conflict focuses on interpersonal relationships. These conflicts are almost always
dysfunctional and the friction and interpersonal hostilities inherent in relationship conflicts increase personality
clashes and decrease mutual understanding.
People at work may encounter conflict at the intrapersonal level (conflict within the individual), the interpersonal
level (individual to- individual conflict), the inter-group level, or the inter-organizational level. Negotiation is a
“process in which two or more parties exchange goods or services and attempt to agree upon the exchange
rate for them (Robbins, 2008). There are two general approaches to negotiation: distributive bargaining and
integrative bargaining.
Terminal Questions
1 1. Briefly explain the different views about conflict.
2 2. What are the levels of conflict that people may experience at the workplace?
3 3. Explain the process of conflict management.
4 4. Explain the difference between distributive and integrative bargaining.

1 1. R. W Woodman
2 2. Exclusive
3 3. Disagreements
4 4. Inter-actionist
5 5. Task
6 6. Three
7 7. Avoidance–avoidance
8 8. Inter-group
9 9. Noise
10 10. Younger, high
11 11. Personality
12 12. Five
13 13. Compromise
14 14. Hierarchical Referral
15 15. Two
16 16. Integrative
17 17. Direct

Glossary
Words Meaning
Avoidance The opportunity to avoid or escape from an unpleasant circumstance after exhibiting behavior.
Avoidance occurs when the interacting parties' goals are incompatible and the interaction between
groups is relatively unimportant to the attainment of the goals
Accommodation Occurs when the parties' goals are compatible and the interaction between groups is relatively
unimportant to the goals' attainment
Conflict A disagreement among parties. It has both positive and negative characteristics
Negotiation The process in which two or more parties (people or groups) reach agreement even though they have
different preferences
Unit 13 Stress
1 1. Insomnia is __________.
2 2. Positive stress is called ________.
3 3. Negative stress is called ___________.
4. ______________is created when role expectations are not clearly understood.
5. Those with an ____________ locus of control believe they control their own destiny.
6. ______________ The confidence in one’s own abilities appears to decrease stress.
7. Stress shows itself in _________ ways
8. ____________________ is ―the simplest and most obvious psychological effect‖ of stress.
1 9. ______________physical exercise has long been recommended as a way to deal with excessive
stress levels.
2 10. Individuals can teach themselves to reduce tension through _____________ techniques, such as,
meditation.
3 11. Improved personnel selection and job placement leading to right ______________ thereby reducing
chances of non-performance and stress level.
12. The stress reaction is triggered by our __________________ of danger
13. Electronic biofeedback can help you gain __________________ control over such things as muscle
tension
14. _________ elements are common to most definitions of crisis.
15. There are __________ types of organizational crises
Summary
Stress has been defined as a physical, mental or emotional response to events which cause mental or bodily
tension. In the modern day life stress is a part and parcel of our lives. Stress can manifest itself in a number of
ways depending upon the suddenness of an even to be dealt with and types of stressors to be handled by an
individual. It may manifest itself either physically, emotionally and / mentally, as certain symptoms. Stress may
be classified into two types: positive stress (Eustress) and negative stress (Distress). Moderate and
manageable levels of stress for a reasonable period of time can be handled by the body through mobilization
of resources and is accompanied by positive emotions, such as, enjoyment, satisfaction, excitement and so on.
This beneficial element in stress has been defined by Selye as Eustress (EU- meaning – good).
However, an overload of stress resulting from a situation of either over arousal or under arousal for long
periods of time causes the following: first an unpleasant feeling, followed by physical damage, fatigue and in
extreme cases, even death of an individual. This has been termed by Selye as distress (dys- meaning – bad).
While environmental factors are forces outside the organization, which may act as potential sources of stress
due to uncertainties and threats that they create for any organization and its members, factors within
organization can also act as potential source of stress. Together or singly they may create a tense and volatile
working environment which can cause stress for organizational members because the inability of individuals to
handle the pressures arising out of these sources.
Stress shows itself in three ways – physiological, psychological, and behavioral symptoms. As there is a
positive side to stress and provides, drive, excitement and motivation for individuals to push themselves to
achieve more in their lives in the fulfillment of their set goals, there is no requirement to eliminate stress form
one’s life. Managing stress should be given importance rather than elimination. The goal should be to find the
optimal level of stress that can be handled effectively by an individual which will motivate the person and not
overwhelm and distress an individual. It is the systematic attempt to avoid organizational crises or to manage
those crises events that do occur. A crisis is a major, unpredictable event that threatens to harm an
organization and its stakeholders.
1 1. Define stress. Explain various types of stress.
2 2. Describe the potential sources of stress.
3 3. What are the consequences of stress?
4 4. Discus the individual and organizational approaches to managing stress.
5 5. Discuss the various types of organizational crises

1 1. Sleeplessness
2 2. Eustress
3 3. Distress
4 4. Role ambiguity
5 5. Internal
6 6. Self-efficacy
7 7. Three
8 8. Job dissatisfaction
9 9. Non-competitive
10 10. Relaxation
11 11. Person-job-fit
12 12. Perception
13 13. Voluntary
14 14. Three
15 15. Four

Glossary
Words Meaning
Distress The unpleasant stress that accompanies negative events
Stress A person's adaptive response to a stimulus that places excessive psychological or physical demands on that
person.
Unit 14 Organizational Change

1. Forces for change are of _____________ types.
2. Organizations are, therefore, forced to change their operational methods to meet the demands of the
_____________.
3. Environmental factors such as ___________, ______________, and _____________ factors play a vital
role in devising organizational policies and strategy
4. Resistance to change may be of _________ types.
5. Change leads to _______________ among the employees because of its unknown consequences.
6. Change may bring some potential _________to the organizational power to some people.
7. Many people, depending on their basic values and beliefs, move from anger to ___________.
8. ___________ and considerate listening can reduce employees‟ fear and anxiety towards change.
9. This can be a costly proposition when there is more than one _____________ union in the organization, as
all the contending parties would fight for power and recognition.
1 10. Organizational change focuses on ________ change.
2 11. In Organization-environment relationship, organizations attempt to redefine their relationships with
changing _________ and ____________ environment.
3 12. Lewin (1951) proposed a ___________ step sequential model of change process.
4 13. Action research model is another model of __________ change.
5 14. Planned change can range from ____________ change to _________ change.
6 15. According to Bennis, Benne and Chin, _______ basic strategies can be adopted to manage
change:
7 16. According to Nicklos (2004), there can be a ________ strategy in adapting to changes, i.e.
environmental-adaptive.
8 17. ______________resistance argues for a coupling of power-coercive and environmental-adaptive
strategies.
9 18. _________________ populations argue for a mix of all four strategies.
10 19. Short time frames argue for a _____________strategy.
Summary
Organizational change may be defined as the adoption of a new idea or a behavior by an organization. It is a
way of altering an existing organization to increase organizational effectiveness for achieving its objectives.
Forces for change are of two types: Internal forces and external forces. Internal forces are: change in the top
management, change in size of the organization, performance gaps and employee needs and values. External
forces are technology, business scenario, and environmental factors.
Resistance to change may be of two types: Individual resistance and Organizational resistance. There are
certain factors that may be related to the resistance to change; these are economic, psychological and social.
Change leads to insecurity among the employees because of its unknown consequences. Employees do not
know for certain whether the change will bring in better prospects. This results into individual resistance.
Change may bring some potential threat to the organizational power to some people. This leads to
organizational resistance. The responses to change depend upon the employees‟ perception about the
change. Different individuals differ in their attitudes and hence, the perceptions towards change.
Three major reactions to change are: Anger, Denial and Acceptance. Some approaches can be taken to
reduce the resistance to change, such as, education & communication, employee participation & involvement,
facilitation & support, and negotiation & agreement. Organizational change is deliberate, systematic and well
thought of. Velocity of change depends on the degree or level of significance and the status quo in the
organization is challenged with a long-term focus. Two major theories of change are (i) Force field analysis
theory and (ii) Action Research Model. Lewin proposed a three steps sequence of “unfreezing, moving and
refreezing” as the change process in Force Field Analysis Theory. According to Action Research Model,
planned change is a cyclical process in which initial research about organizations provides the data to guide
the subsequent action to bring the required changes in eight steps.
Terminal Questions
1 1. What are the forces for change? Explain.
2 2. Explain the different types of resistance to change.
3 3. Describe the force field analysis model and action research model.
4 4. Based on the toolkit forwarded by Nicklos stated in this chapter, explain how one can manage
change.

1 1. Two
2 2. Stakeholders
3 3. Economic, political and demographic
4 4. Two
5 5. Insecurity
6 6. Threat
7 7. Acceptance.
8 8. Empathetic
9 9. Dominant
10 10. Long-term
11 11. Social and political
12 12. Three
13 13. Planned
14 14. Incremental, quantum
15 15. Four
16 16. Fourth
17 17. Strong
18 18. Large
19 19. Power-coercive

Glossary
Words Meaning
Refreezing The process of making new behaviors relatively permanent and resistant to further change
Un freezing The process by which people become aware of the need for change
Unit 15 Organization Development

1. A technique to study symptom patterns and prescription to the organization. True/False
2. Organization development (OD) is a planned approach to improve _______and _________
effectiveness by conscious interventions in those processes and structures that have an
immediate bearing on the human aspect of the organization.
3 ________ is a strategy of planned change for organizational improvement. This „planned‟
emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by
organizations.
4. Laboratory training is popularly known as __________ training.
5. Exploitive authoritative system exhibits an autocratic ______________ approach to leadership.
6. The most distinguishing feature of QWL program is the development of ________________ work groups
which consist of multi-skilled workers.
7. The __________ step in OD process involves understanding and identification of the existing and potential
problems in the organization.
8. Any OD activity is incomplete without proper _____________.
9. Sensitivity training is also known as __________.
10. _________ is basically based on grid organization development developed by Blake and Mouton.
11. In order to gather data and make a diagnosis information is collected from various sources thorough the
use of ________, ______________ and_________about the problems, spelled out at the initial stage.
12. Organization must formulate the _________of OD programme very clearly and specifically.
13. Only fully competent _________ should be pressed for the service and he should develop understanding
with internal change agents.
Summary
Organization development (OD) is a planned approach to improve employee and organizational effectiveness
by conscious interventions in those processes and structures that have an immediate bearing on the human
aspect of the organization (Ramanarayan, Rao, and Singh 1998). OD is an organization-wide planned effort,
managed from the top, to increase organizational effectiveness and health through planned interventions in the
organizational processes, using behavioral science knowledge.
A number of special characteristics together distinguish organizational development from other approaches to
managing and improving organizational function. Behavioral science base approach is primarily concerned
with improving the organization by focusing on aspects that have a bearing on human and social improvement.
Leavitt (1972) has viewed an organization as a social system consisting of different sub-systems such as task,
structure, technology and human resource, interlinked by various processes.
The concept of OD has emerged from four stems: (i) Laboratory training background, (ii) Action-
research/survey-feedback background, (iii) Participative management, and (iv) Quality of work life (QWL)
approach. Any change in one part or process has implications for other parts or processes relevant to the
system. Action-research model is a “data based, problem solving model that replicated the steps involved in
the scientific method of inquiry” (French and Bell 1991). OD, using this model, involves a systematic process of
diagonising organizational problems through data collection and analysis, feeding the data back to the
organizational client group, discussing the findings, planning collaborative action and implementing proposed
solutions. A typical OD process can be divided into phases, such as, Problem identification, Data collection,
Diagnosis, Structural analysis, Processes analysis, Function analysis, Domain analysis, Planning and
implementation, and Evaluation and feedback.
Organization development, however, has invited sharp criticism as a strategy to increase organizational
viability and effectiveness because many OD programmes have failed. Only fully competent OD consultant
should be pressed for the service and he should develop understanding with internal change agents.
Terminal Questions
1 1. Discuss the characteristics of OD.
2 2. Explain the process of OD.
3 3. Describe the survey feedback intervention.
4 4. Discuss the problems in OD

1 1. False
2 2. Employee and organizatuional
3 3. OD
4 4. T-group
5 5. Top-down
6 6. Self-managing
7 7. First
8 8. Change
9 9. T-Group
10 10. Grid Training
11 11. Questionnaires, observations, and interview
12 12. Objectives
13 13. OD Consultant

Glossary
Words Meaning
Diagnosis Diagnosis is the process of assessing the functioning of the organization or departments to discover
sources of problems and areas of improvement
Organization Organization Development (OD) is a response to change, a complex educational strategy intended to
Development change the beliefs, attitudes, values and structure of organization so that they can better adapt to new
technologies, markets, and challenges, and the dizzying rate of change itself
QWL QWL programs, in general, require joint participation by union and management in the process of
work-designing, which consequently result into high level of task variety, appropriate feedback and
employee discretion
T-Groups Training Groups- T-groups are designed to provide members with experiential learning about group
dynamics, leadership and interpersonal relationships. The basic T-group training or sensitivity training
is to change the standards, attitudes and behavior of individuals by using psychological techniques
and programs.

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Unit 1 Management Process

Answers to Self Assessment Questions

1. Discuss the characteristics of management.

1. Refer section 1.3

Unit 2 Introduction and Foundations of Organizational Behaviour

Answers to Terminal Questions

1. Buchanan and Huczynski (1997) have defined Organizations as “_________ arrangements”.

Answers to Self Assessment Questions

Unit 3 Learning and Ability

Answers to Terminal Questions

Self Assessment Questions

Answers to Self Assessment Questions

Self Assessment Questions

Answers to Self Assessment Questions

Answers to Terminal Questions

Answers to Terminal Questions

Answers to Terminal Questions

Attribution Suggests that we attribute causes to behavior based on observations of certain

Answers to Self Assessment Questions

Answers to Terminal Questions

Answerss to Self Assessment Questions

Unit 10 Group Behavior

4. Explain different types of teams.

Formal A designated work group defined by the organization's structure

Unit 11 Power and Politics

11.8 Terminal Questions

Answers to Terminal Questions

Unit 12 Conflict Management

Answers to Self Assessment Questions

Answers to Terminal Questions

Answers to Self Assessment Questions

Answers to Terminal Questions

Unit 14 Organizational Change

Answers to Self Assessment Questions

Answers to Terminal Questions

Unit 15 Organization Development

Answers to Self Assessment Questions

Answers to Terminal Questions

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