DSC 3C: Organizational Behaviour

Unit-I:
Focus and Purpose: Definition, need and importance of organizational behaviour – Nature and scope
– Frame work – Organizational behaviour models.

Unit-II:
Personality – types – Factors influencing personality – Theories – Learning – Types of learners – The
learning process – Learning theories – Organizational behaviour modification. Misbehavior – Types
– Management Intervention. Emotions - Emotional Labour – Emotional Intelligence – Theories.

Unit-III:
Attitudes – Characteristics – Components – Formation – Measurement- Values. Perceptions –
Importance – Factors influencing perception – Interpersonal perception- Impression Management.
Motivation – importance – Types – Effects on work behavior.

Unit-IV:
Organization structure – Formation – Groups in organizations – Influence – Group dynamics –
Emergence of informal leaders and working norms – Group decision making techniques – Team
building - Interpersonal relations – Communication – Control.

Unit-V:
Leadership and Power: Meaning – Importance – Leadership styles – Theories – Leaders Vs
Managers – Sources of power – Power centers – Power and Politics.

References:

1. Stephen P. Robins, Organizational Behavior, PHI Learning/Pearson Education, 2008.

2. Fred Luthans, Organizational Behavior, McGraw Hill, 2001.
3. Schermerhorn, Hunt and Osborn, Organizational behavior, John Wiley, 9th Edition, 2008.
4. UdaiPareek, Understanding Organizational Behaviour, Oxford Higher Education, 2004.
5. Mc Shane & Von Glinov, Organizational Behaviour, 4th Edition, Tata Mc Graw Hill, 2007.
6. Hellrigal, Slocum and Woodman, Organizational Behavior, Cengage Learning, 2007.
7. Ivancevich, Konopaske&Maheson, Organizational Behaviour & Management, Tata McGraw Hill,
2008. 85
 UNIT - I
1. FOCUS AND PURPOSE

1.1. DEFINITION, NEED AND IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR

1.2. NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOUR

1.3. FRAME WORK OF ORGANIZATIONAL BEHAVIOUR

1.4. ORGANIZATIONAL BEHAVIOUR MODELS

1.1. DEFINITION, NEED AND IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR
INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR
Managers make a lot of mistakes. Some come from inexperience. Others reflect lack of knowledge and some are
just dumb. But few mistakes could be considered as stupid as what managers did. However, managers commonly make
other mistakes due to their lack of knowledge. This is where the organizational behavior comes into play.
THE IMPORTANCE OF INTERPERSONAL SKILLS
Recognition of the importance of developing managers’ interpersonal skills is closely tied to the need for
organizations to get and keep high – performing employees. Regardless of labour market conditions, outstanding
employees are always in short supply. We have come to understand that technical skills are necessary, but they are not
enough to succeed in management. In today’s increasingly competitive and demanding workplace, managers can’t
succeed on their technical skills alone. They also have to have good people skills.
WHAT MANAGERS DO?
Managers [Administrators] are individuals who achieve goals through other people. They make decisions,
allocate resources and direct the activities of others to attain goals.
WHERE MANAGERS WORK?
Managers do their work in an organization, which is a consciously coordinated social unit, composed of two or
more people that functions on a relatively continuous basis to achieve a common goal or set of goals.
FUNCTIONS OF MANAGEMENT
Figure1a: Functions of management

 Planning
Planning is a process that includes defining goals, establishing strategy, and developing plans to coordinate activities.
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 Organizing
It is a process of determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports
to whom, and where decisions to be made.
 Staffing
The managerial function of staffing involves manning the organization structure through proper and effective selection,
appraisal and development of the personnel’s to fill the roles assigned to the workforce.
 Directing
It is a function that includes motivating employees, directing others, selecting the most effective communication channels
and resolving conflicts.
 Controlling
It is a process which includes monitoring activities to ensure that things are accomplished as planned and correcting any
significant deviations.
MANAGEMENT ROLES
In the late 1960s, Henry Mintzberg, a graduate student at MIT [Massachusetts Institute of Technology,
Cambridge], undertook a careful study of 5 executives to determine what those managers did on their jobs. On the basis
of his observations, Mintzberg concluded that managers perform 10 different, highly interrelated roles or sets of
behaviours, attributable to their jobs. These 10 roles can be grouped as being primarily:
1. Interpersonal roles
2. Informational roles and
3. Decisional roles

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MANAGEMENT SKILLS
Still another way of considering what managers do is to look at the skills or competencies they need to achieve
their goals. Robert Katz has identified 3 essential management skills viz. technical, human and conceptual.
 Technical skills

The ability to apply specialized knowledge or expertise.

 Human skills
The ability to work with, understand and motivate other people, both individually and in groups.
 Conceptual skills
The mental ability to analyze and diagnose complex situations.
EFFECTIVE VERSUS SUCCESSFUL MANAGERIAL ACTIVITIES
Fred Luthans and his associates studied more than 450 managers. What they found was that these managers all
engaged in 4 managerial activities and they are as follows.
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1. Traditional management
Decision making, planning and controlling
2. Communication
Exchanging routine information and processing paper work
3. Human resource management
Motivating, disciplining, managing conflict, staffing and training
4. Networking
Socializing, politicking
Figure 1b: Allocation of managerial activities by time

DEFINITIONS OF ORGANIZATIONAL BEHAVIOUR

 Organizational behavior is defined as actions and attitudes of individuals and groups toward one another and toward
the organization as a whole, and its effect on the organization's functioning and performance.
 Organizational behavior is defined as the study which deals with all aspects of human behavior that occur within the
context of an organization. It entails the study of how individuals behave as individuals and in groups within an
organization.
 Organizational behavior is the study of human behavior, attitudes and performance in organizations.
 Organizations are social inventions for accomplishing common goals through group effort. Organizational behavior is
concerned with the attitudes and behaviours of individuals and groups in organizations and can be understood in
terms of three levels of analysis: the individual, the group, and the organization.
 A field of study that investigates the impact that individuals, groups and structure have on behavior within
organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.
ELEMENTS OF ORGANIZATIONAL BEHAVIOUR
The key elements in the organizational behaviour are people, structure, technology and the environment in which
the organization operates.
 People
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People make up the internal and social system of the organization. They consist of individuals and groups. The groups
may be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organization to
achieve their objectives.
 Structure
Structure defines the formal relationships of the people in organizations. Different people in the organization are
performing different type of jobs and they need to be related in some structural way so that their work can be effectively
coordinated.
 Technology
Technology such as machines and work processes provide the resources with which people work and affects the tasks
that they perform. The technology used has a significant influence on working relationships. It allows people to do more
and work better but it also restricts' people in various ways.
 Environment
All organizations operate within an external environment. It is the part of a larger system that contains many other
elements such as government, family and other organizations. All of these mutually influence each other in a complex
system that creates a context for a group of people.
NEED AND IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR
Organizations are all around us. We are born in an organization, we live, work and most probably will die in an
organization. Yet most of us do not understand how people function, behave and interact between each other within these
organizations. We also do not understand if people shape an organization or an organization shapes people. In the
beginning, people create an organization and shape its mission and culture and later more people join the organization.
This new group of people adjust themselves within the existing organizational culture. Sometimes they also influence
organizational culture by bringing new and unique skills to the organization. Sometimes they learn from each and at other
times, external forces like competition, political and cultural changes compel them to learn new technical, communication
or interpersonal skills. All these internal and external factors help an organization and its people to evolve to cope with the
ever-changing world. Until recently, managers paid little attention to Organizational Behavior or soft skill training. The
industrial revolution created the need for hard [technical] skills. People worked in the production line and were not
required to think or interact to each other. However, things have changed; instead of standing behind the production lines,
they now sit in front of a computer and control a robot who works in the production line. Now, people need more technical
skills, but they also need skills to communicate and work within a group. The great English poet Samuel Butler put it
together more eloquently, "Any fool can paint a picture, but it takes a wise man to be able to sell it." If the "fool" is the
metaphor for hard skill then the "wise man" would be the soft skill; but the soft skill of the wise man is useless without the
hard skill of the fool; the harmonizing of both skills sells the picture. Therefore, the study of Organizational Behavior is not
considered pop psychobabble anymore. A comparison between old and new organizations makes the picture clear.
OLD ORGANIZATION VERSUS NEW ORGANIZATION
First, in old organizations, machinery used to be considered as a primary asset, and in order to maximize
productivity the managers needed to concentrate on 100% usage of those machinery. Later, people became the most
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important asset of the new organization and organizations are finding ways to use the "whole person". According to
Bradford, within last ten years, usage of human capital raised from 20 percent to 40 percent. Second, in the new
organization everyone is responsible for the whole process. The old organizational attitude was "you are responsible for
your area and I'm responsible for mine and if you screwed up, that helps me to look better." But the new organizational
attitude is all about "powering up", according to Bradford, and “increasing the total power of each individual, every unit,
and the entire organization." Old organizational layers are slowly melting together and the words 'superior' and
'subordinate' are becoming obsolete. For example, in my company, everyone has the same title 'benefits consultant' and
the difference between managers and consultants is defined by the word 'senior'. Finally, in the old organization it was
always presumed that the bosses know the solution to all problems; according to Bradford, "the traditional organization is
anti-learning." In the old organization, managers used to show up in the meetings with a solution. New organizations are
constantly evolving and in this new environment, managers are not ashamed to admit they need input and assistance.
The organizational paradigm - people focused thinking which is based on healthy communications and
supportive leadership, has been receiving a lot of attention in recent years. At the same time, the demand for hard skills
has also increased - the technologically advanced society demands more analytically and technologically savvy
workforce. Therefore, the challenge is to develop human capital with the perfect combinations of hard and soft skills.
Political economist Robert Reich recommended the hi-tech companies to focus more on human capital than high volume
production. He said in order to attract employees and reduce turnover, companies must create an environment that
fosters learning and responsibility and encourage group ownership in a common mission. Therefore, the previously
perceived notion that this hi-tech, high paced environment would cause stiff cutthroat competition among workers and
create tyrannical corporate environment never materialized. Instead, we are observing more and more cooperation and
support among workers.
IMPORTANCE OF ORGANIZATIONAL BEHAVIOUR: SOME EVIDENCE
Recent research shows that soft skill training should start at the University. Graham and Krueger pointed out
those soft skills are not well-appreciated and understood among students - students consider decision making, computer
and math competencies as the most important skills. However, in an extensive study done on career paths of corporate
CFOs by Baker and Phillips shows high level of importance put on soft skills by the CFOs. The following table [Baker &
Phillips shows the most important skills that someone should acquire to be a CFO.
Figure1c: Skills required being a CFO

Skill Percentage

Communication [Oral and Written] 13.3%

Management and Leadership 12.4

Financial [e.g. Cash Management and Financial Analysis] 10.1

People and Interpersonal 9.5

Analytical and Critical Thinking 9.1

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 Technical [e.g. Mathematics and Statistics] 7.4

Accounting and Taxation 6.3

Computer 4.4

Negotiation 1.7

Other [e.g. Foreign Language, Strategic Planning and Organizational 25.7

Skills]

Total 100.0%

To summarize the researches on OB, there is more evidence that the teaching and implementation of soft skills
should get higher priority in education and company training process, but it should only complement hard skill, not
substitute for it. Today's postindustrial hi-tech organization requires knowledge intensive work environment and demands
creativity form its workers. Most organizations are now encouraging team approach to solve problems. Workers are not
only needed to learn new technical skills but also how to communicate, delegate, negotiate, and motivate with each other.
1.2. NATURE AND SCOPE OF ORGANIZATIONAL BEHAVIOUR
Organizational behaviour is an applied behavioral science that is built on contributions from a number of
behavioral disciplines such as psychology, sociology, social psychology, anthropology and economics.
So now let us see how these disciplines are related to organizational behavior.
 Psychology
Psychology is the study of human behavior which tries to identify the characteristics of individuals and provides an
understanding why an individual behaves in a particular way. This thus provides us with useful insight into areas such as
human motivation, perceptual processes or personality characteristics.
 Sociology
Sociology is the study of social behavior, relationships among social groups and societies, and the maintenance of social
order. The main focus of attention is on the social system. This helps us to appreciate the functioning of individuals within
the organization which is essentially a socio-technical entity.
 Social psychology
Social psychology is the study of human behaviour in the context of social situations. This essentially addresses the
problem of understanding the typical behavioral patterns to be expected from an individual when he takes part in a group.
 Anthropology
Anthropology is the science of mankind and the study of human behaviour as a whole. The main focus of attention is on
the cultural system, beliefs, customs, ideas and values within a group or society and the comparison of behaviour among
different cultures. In the context of today's organizational scenario, it is very important to appreciate the differences that
exist among people coming from different cultural backgrounds as people are often found to work with others from the
other side of the globe.
 Economics
Any organization to survive and sustain must be aware of the economic viability of their effort. This applies even to the
non-profit and voluntary organizations as well.
1.3. FRAMEWORK OF ORGANIZATIONAL BEHAVIOUR
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 Figure1d: Major elements of a good organizational behavior system

Organizations achieve their goals by creating, communicating and operating an organizational behaviour system.
Organizational behaviour system defines organizational structure and culture and explains their impact on employees.
These systems exist in every organization, but sometimes in varying forms. They have a greater chance of being
successful, though, if they have been consciously created, regularly examined and updated to meet new and emerging
conditions. The primary advantage of organizational behaviour system is to identify the major human and organizational
variables that affect organizational outcomes. For some variables managers can only be aware of them and acknowledge
their impact whereas for other variables, managers can exert some control over them. The outcomes are measured in
terms of quantity and quality of products and services, level of customer service, employee satisfaction and personal
growth and development.
1.4. ORGANIZATIONAL BAHAVIOUR MODELS
Keith Davis recognizes four different models of OB. These models show evolution of the thinking and behaviour
on the part of management and managers alike. The four major models or frameworks that organizations operate out of:
 Autocratic
The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards
obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is
minimal.
 Custodial
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The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented
towards security and benefits and dependence on the organization. The employee need that is met is security. The
performance result is passive cooperation.
 Supportive
The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards
job performance and participation. The employee need that is met is status and recognition. The performance result is
awakened drives.
 Collegial
The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented
towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance
result is moderate enthusiasm.
Although there are four separate models, almost no organization operates exclusively in one. There will usually
be a predominate one, with one or more areas over-lapping in the other models.
Figure 1e: Four models of organizational behaviour

Autocratic Custodial Supportive Collegial

Model depends on Power Economic resources Leadership Partnership

Managerial orientation Authority Money Support Teamwork

Employee orientation Obedience Security and benefits Job performance Responsibility

Employee psychological
Dependence on boss Dependence on organization Participation Self-discipline
result
Higher-order
Employees needs met Subsistence Maintenance Self-actualization
[Status and recognition]
Performance result Minimum Passive cooperation Awakened drives Moderate enthusiasm
CHALLENGES AND OPPORTUNITIES OF ORGANIZATIONAL BEHAVIOUR
1. Responding to globalization
 Increased foreign assignments
 Working with people from different cultures
 Coping with anticapitalism backlash
 Overseeing movements of jobs to countries with low cost labour
2. Managing workforce diversity
 Embracing diversity
 Changing U.S. demographics
 Implications for managers
3. Improving quality and productivity
 Quality management
 Process Reengineering
4. Responding to the labour shortage
 Changing work force demographics
 Fewer skilled labourers
 Early retirements and older workers
5. Improving customer service
 Increased expectation of service quality
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 Customer – responsive culture
6. Improving people skills
7. Empowering people
8. Stimulating innovation and change
9. Coping with “Temporariness”
10. Working in networked organizations
11.Helping employees to balance work and life
12. Improving ethical behaviour
QUESTION BANK UNIT - II
TWO MARKS
2. INDIVIDUAL BEHAVIOUR
1. Define OB.
2. 2.1.
WhatPERSONALITY
is the importance of interpersonal skills?
3. What managers
- TYPES do?
4. What are the functions of management?
- FACTORS INFLUENCING PERSONALITY
5. What are the three essential management skills identified by Robert Katz?
6. What are- the
THEORIES
elements / components of OB?
7. 2.2.
WhatLEARNING
are the major behavioural science disciplines that contribute to OB?
SIXTEEN MARKS- TYPES OF LEARNERS
1. Discuss about
- THEthe importancePROCESS
LEARNING of OB.
2. Discuss about Henry Mintzberg’s managerial roles.
- LEARNING THEORIES
3. Brief on framework of OB with a diagram.
4. 2.3.
WhatORGANIZATIONAL BEHAVIOUR
are different models of OB? MODIFICATION
5. List out
2.4. the challenges and opportunities of OB.
MISBEHAVIOUR
- TYPES
- MANAGEMENT INTERVENTION
2.5. EMOTIONS
- EMOTIONAL LABOUR
- EMOTIONAL INTELLIGENCE
- THEORIES
2.6. ATTITUDES
- CHARACTERISTICS
- COMPONENTS
- FORMATION
- MEASUREMENT
2.7. VALUES
2.8. PERCEPTIONS
- IMPORTANCE

- FACTORS INFLUENCING PERCEPTION

- INTERPERSONAL PERCEPTION

2.9. IMPRESSION MANAGEMENT

2.10. MOTIVATION

- IMPORTANCE

- TYPES
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- EFFECTS ON WORK BEHAVIOUR

2.1. PERSONALITY
DEFINITION AND MEANING OR PERSONALITY
Personality is a complex, multi-dimensional construct and there is no simple definition of what personality is. Maddi
defines personality as, “A stable set of characteristics and tendencies that determine those commonalities and differences
in the psychological behavior and that may not be easily understood as the sole result of the social and biological
pressures of the moment". Gordon Allport nearly 70 years ago said personality is “the dynamic organization within the
individual of those psychological systems that determine his unique adjustments to his environment.” For our purposes,
we should think of personality as the sum total of ways in which an individual reacts to and interacts with others. We most
often describe it in terms of the measurable traits a person exhibits. From the above definitions, we can infer that all
individuals have some universally common characteristics. Yet they differ in some other specific attributes. This makes it
difficult for the managers to assume that they can apply same reward types or motivation techniques to modify different
individual behaviors. The definition, however, does not mean that people never change. In simple terms, it asserts that
individuals do not change all at once. Their thoughts, feelings, values and actions remain relatively stable over time.
Changes in individual's personality can, however, occur gradually over a period of time. The managers should, therefore,
attempt to understand certain dimensions of personality. This can enable them to predict the behavior of their employees
on a daily basis. Some personality theorists stress the need of identifying person-situation as interaction. This is
equivalent to recognizing the social learning aspects related to personality. Such a social learning analysis is one of the
most comprehensive and meaningful ways included in the overall study of organizational behavior. From this perspective,
personality means the way people affect others. It also involves people's understanding themselves, as well as their
pattern of inner and outer measurable traits, and the person and situation interaction. People affect others depending
primarily upon their external appearance such as height, weight, facial features, color and other physical aspects and
traits.
PERSONALITY TRAITS
Enduring characteristics that describe an individual’s behavior. Popular characteristics include shy, aggressive,
submissive, lazy, ambitious, loyal, and timid. When someone exhibits these characteristics in a large number of situations,
we call them personality traits.
SIXTEEN PRIMARY PERSONALITY TRAITS
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 MEASURING PERSONALITY
There are three main ways in which personality is measured.
1. Self – report surveys [By the individual]
2.Observer ratings surveys [By the co-worker]
3.Projective measures
- Inkblot Test [What inkblots seem to resemble]
- Thematic Apperception Test [TAT] – [Writes a story about each picture]
Figure2a: Inkblot test

Figure2b: Thematic Apperception Test [TAT]

USE OF ASSESSMENTS OF INDIVIDUAL DIFFERENCES IN

ORGANIZATIONS
In organizations, assessments of individual differences are carried out at the time of
selection and during other times in an employee’s career. Personality tests can help in the following ways in an
organization.
1. Screening
2. Selection
3. Succession planning
4. Career planning
5. Team building
6. Management development
TYPES OF PERSONALITY
THE MYERS – BRIGGS TYPE INDICATOR [MBTI]
The MBTI is the most widely used personality assessment instrument in the world. It’s a 100 question personality test that
asks people how they usually feel or act in particular situations. On the basis of their answers, individuals are classified
as:
1. Extraverted vs. Introverted
Extraverted individuals are outgoing, sociable and assertive. Introverts are quiet and shy.
2. Sensing vs. Intuitive
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Sensing types are practical and prefer routine and order. They focus on details. Intuitives rely on unconscious processes
and look at the big picture.
3. Thinking vs. Feeling
Thinking types use reason and logic to handle problems. Feeling types rely on their personal values and emotions.
4. Judging vs. Perceiving
Judging types want control and prefer their world to be ordered and structured. Perceiving types are flexible and
spontaneous.
Figure2c: MBTI

THE BIG FIVE PERSONALITY MODEL /

FIVE FACTOR MODEL [FFM]
The MBTI may lack for strong supporting evidence, but the
same cannot be said for the five – factor model of personality
typically called the Big Five Model, of the Big Five. The Big
Five factors are as follows:
1. O penness to experience
Openness is a general appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity, and variety of
experience. The trait distinguishes imaginative people from down-to-earth, conventional people. People who are open to
experience are intellectually curious, appreciative of art, and sensitive to beauty. They tend to be, compared to closed
people, more creative and more aware of their feelings. They are more likely to hold unconventional beliefs. People with
low scores on openness tend to have more conventional, traditional interests. They prefer the plain, straightforward, and
obvious over the complex, ambiguous, and subtle. They may regard the arts and sciences with suspicion or even view
these endeavors as uninteresting.
Sample openness statements
 I have a rich vocabulary.
 I have a vivid imagination.
 I have excellent ideas.
 I am quick to understand things.
 I use difficult words.
 I spend time reflecting on things.
 I am full of ideas.
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 I am not interested in abstractions. (reversed)
 I do not have a good imagination. (reversed)
 I have difficulty understanding abstract ideas. (reversed)

2. C
onscientiousness
Conscientiousness is a tendency to show self-discipline, act dutifully, and aim for achievement against measures or
outside expectations. The trait shows a preference for planned rather than spontaneous behavior. It influences the way in
which we control, regulate, and direct our impulses.
Sample conscientiousness statements
 I am always prepared.
 I pay attention to details.
 I get chores done right away.
 I like order.
 I follow a schedule.
 I am exacting in my work.
 I leave my belongings around. (reversed)
 I make a mess of things. (reversed)
 I often forget to put things back in their proper place. (reversed)
 I shirk my duties. (reversed)
3. E xtraversion
Extraversion is characterized by positive emotions and the tendency to seek out stimulation and the company of others.
The trait is marked by pronounced engagement with the external world. Extraverts enjoy being with people, and are often
perceived as full of energy. They tend to be enthusiastic, action-oriented individuals who are likely to say "Yes!" or "Let's
go!" to opportunities for excitement. In groups they like to talk, assert themselves, and draw attention to themselves.
Introverts lack the social exuberance and activity levels of extraverts. They tend to seem quiet, low-key, deliberate, and
less involved in the social world. Their lack of social involvement should not be interpreted as shyness or depression.
Introverts simply need less stimulation than extraverts and more time alone. They may be very active and energetic,
simply not socially.
Sample extraversion statements
 I am the life of the party.
 I don't mind being the center of attention.
 I feel comfortable around people.
 I start conversations.
 I talk to a lot of different people at parties.
 I don't talk a lot. (reversed)
 I keep in the background. (reversed)
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 I have little to say. (reversed)
 I don't like to draw attention to myself. (reversed)
 I am quiet around strangers. (reversed)

4. A greeableness
Agreeableness is a tendency to be compassionate and cooperative rather than suspicious and antagonistic towards
others. The trait reflects individual differences in general concern for social harmony. Agreeable individuals value getting
along with others. They are generally considerate, friendly, generous, helpful, and willing to compromise their interests
with others. Agreeable people also have an optimistic view of human nature. They believe people are basically honest,
decent, and trustworthy. Disagreeable individuals place self-interest above getting along with others. They are generally
unconcerned with others’ well-being, and are less likely to extend themselves for other people. Sometimes their
skepticism about others’ motives causes them to be suspicious, unfriendly, and uncooperative.
Sample agreeableness statements
 I am interested in people.
 I sympathize with others' feelings.
 I have a soft heart.
 I take time out for others.
 I feel others' emotions.
 I make people feel at ease.
 I am not really interested in others. (reversed)
 I insult people. (reversed)
 I am not interested in other people's problems. (reversed)
 I feel little concern for others. (reversed)

5. N euroticism / Emotional stability

Neuroticism is the tendency to experience negative emotions, such as anger, anxiety, or depression. It is sometimes
called emotional instability. Those who score high in neuroticism are emotionally reactive and vulnerable to stress. They
are more likely to interpret ordinary situations as threatening, and minor frustrations as hopelessly difficult. Their negative
emotional reactions tend to persist for unusually long periods of time, which means they are often in a bad mood. These
problems in emotional regulation can diminish the ability of a person scoring high on neuroticism to think clearly, make
decisions, and cope effectively with stress. At the other end of the scale, individuals who score low in neuroticism are less
easily upset and are less emotionally reactive. They tend to be calm, emotionally stable, and free from persistent negative
feelings. Freedom from negative feelings does not mean that low scorers experience a lot of positive feelings.
Sample neuroticism items
 I am easily disturbed.
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 I change my mood a lot.
 I get irritated easily.
 I get stressed out easily.
 I get upset easily.
 I have frequent mood swings.
 I often feel blue.
 I worry about things.
 I am relaxed most of the time. (reversed)
Common acronyms for this model are OCEAN, NEOAC or CANOE.
Figure2d: Big Five personality traits

OTHER

PERSONALITY TRAITS RELEVANT TO OB

Although the Big Five traits have proven to be highly relevant to OB, they don’t exhaust the range of traits we can use to
describe someone’s personality. Now we will look at other, more specific, personality attributes that have been found to be
powerful predictors of behavior in organizations.
 Core self – evaluation
People differ in the degree to which they like or dislike themselves and whether they see themselves as capable and
effective. This self – perspective is the concept of core self – evaluation. People who have positive core self – evaluations
like themselves and see themselves as effective, capable and in control of their environment. Those with negative core
self – evaluations tend to dislike themselves, question their capabilities, and view themselves as powerless over their
environment.
 Machiavellianism
Machiavellianism is manipulating or influencing other people as a primary way of achieving one's goal. An individual tends
to be Machiavellian, if he tends to be logical in assessing the system around, willing to twist and turn facts to influence
others, and try to gain control of people, events and situations by manipulating the system to his advantage.
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 Narcissism
Narcissism is the tendency to be arrogant, have a grandiose sense of self – importance, require excessive admiration,
and have a sense of entitlement.
 Self – monitoring
Self – monitoring is a personality trait that measures an individual’s ability to adjust his or her behavior to external,
situational factors.
 Risk taking
People differ in their willingness to take chances. This propensity to assume or avoid risk has been shown to have an
impact on how long it takes managers to make a decision and how much information they require before making a choice.
Studies showed that high risk taking managers made more rapid decisions and used less information in making their
choices than did the low risk taking managers. Interestingly, decision accuracy was the same for both groups.
 Locus of Control
Locus of control is the degree to which an individual believes that his or her behavior has direct impact on the
consequences of that behavior. Some people, for example, believe that if they work hard they will certainly succeed. They
strongly believe that each individual is in control of his or her life. They are said to have an internal locus of control. By
contrast, some people think that what happens to them is a result of fate, chance, luck or the behavior of other people,
rather than the lack of skills or poor performance on their part. Because- these individuals think that forces beyond their
control dictate the happenings around them, they are said to have an external locus of control. As a personality attribute,
locus of control has clear implications for organizations. For example, certain individuals have an internal locus of control,
which means they have a relatively strong desire to participate in the management of their organizations and have a'
freedom to do their jobs. Thus, they may prefer a decentralized organization where they have a right of decision-making
and work with a leader who provides them freedom and autonomy. They may like a reward system that recognizes
individual performance and contributions. Conversely, people with an external locus of control, are likely to prefer a more
centralized organization where they need not take any decisions. They may incline to structured jobs where standard
procedures are defined for them. They may prefer a leader who makes most of the decisions and a reward system that
considers seniority rather than merit.
 Introversion and Extroversion
Introversion is the tendency of individuals, which directs them to be inward and process feelings, thoughts and ideas
within themselves. Extroversion, on the contrary, refers to the tendency in individuals to look outside themselves,
searching for external stimuli with which they can interact. While there is some element of introversion as well as
extroversion in all of us, people tend to be dominant as either extroverts or introverts. Extroverts are sociable, lively and
gregarious and seek outward stimuli or external exchanges. Such individuals are likely to be most successful while
working in the sales department, publicity office, personal relations unit, and so on, where they can interact face to face
with others. Introverts, on the other Hand, are quiet, reflective, introspective, and intellectual people, preferring to interact
with a small intimate circle of friends. Introverts are more likely to be successful when they can work on highly abstract
ideas such as R&D work, in a relatively quiet atmosphere. Since managers have to constantly interact with individuals
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both in and out of the organization and influence people to achieve the organization's goals, it is believed that extroverts
are likely to be more successful as managers.
 Self-Esteem and Self-Concept
Self-esteem denotes the extent to which individuals consistently regard themselves as capable, successful, important and
worthy individuals. Self-esteem is an important personality factor that determines how managers perceive themselves and
their role in the organization. Self-esteem is important to self-concept, i.e., the way individuals, define themselves as to
who they are and derive their sense of identity. High self-esteem provides a high sense of self-concept, which, in turn,
reinforces high self-esteem. Thus, the two are mutually reinforcing. Individuals with a high self-esteem will try to take on
more challenging assignments and be successful. Thus, they will be enhancing their self-concept i.e., they would tend to
define themselves as highly valued individuals in the organizational system. The higher the self-concept and self-esteem,
the greater will be their contributions to the goals of the organization, especially when the system rewards them for their
contributions.
 Authoritarianism and Dogmatism
Authoritarianism is the extent to which an individual believes that power and status differences are important within'
hierarchical social systems like organizations. For example, an employee who is highly authoritarian may accept directives
or orders from his superior without much questioning. A person who is not highly authoritarian might agree to carry out
appropriate and reasonable directives from his boss. But he may also raise questions, express disagreement and even
refuse to carry out requests if they arc for some reason objectionable. Dogmatism is the rigidity of a person's beliefs and
his or her openness to other viewpoints. The popular terms 'close-minded' and 'open-minded' describe people who are
more and less .dogmatic in their beliefs respectively. For example, a manager may be unwilling to listen to a new idea
related to doing something more efficiently. He is said to be a person who is close-minded or highly dogmatic. A manager
who is very receptive to hearing about and trying out new ideas in the same circumstances might be seen as more open-
minded or less dogmatic. Dogmatism can be either beneficial or detrimental to organizations, but given the degree of
change in the nature of organizations and their environments, individuals who are, not dogmatic are most likely to be
useful and productive organizational members.
 Type A and B Personalities
Type A persons feel a chronic sense of time urgency, are highly achievement-oriented, exhibit a competitive drive, and are
impatient when their work is slowed down for any reason. Type B persons are easy-going individuals who do not feel the
time urgency, and who do not experience the competitive drive. Type A individuals are significantly more prone to heart
attacks than Type B individuals. While Type A persons help the organization to move ahead in a relatively short period of
time they may also suffer health problems, which might be detrimental to both themselves and the organization in the long
run.
 Work-Ethic Orientation
Some individuals are highly work-oriented while others try to do the minimum Work that is necessary to get by without
being fired on-the-job. The extremely work oriented person gets greatly involved in the job. Extreme work ethic values
could lead to traits of "workahollism" where work is considered as the only primary motive for living with very little outside
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interests. For a workaholic turning to work can sometimes become a viable alternative to facing non-work related
problems. A high level of work ethic orientation of members is good for the organization to achieve its goals. Too much
"workahollism", however, might lead to premature physical and mental exhaustion and health problems, which is
dysfunctional for both organization and the workaholic members.
FACTORS / DETERMINANTS INFLUENCING PERSONALITY
Personality does not evolved by a single factor. It is a mixture of a lot of things. Some of those factors are psychological,
some are physical, some are biological and some are even hereditary.
1. Brain
Brain is one of the most important factors of personality determinant. It is generally believed that the father and the child
adopt almost the same type of brain stimulation and the later differences are the result of the environment in which the
child has been grown up.
2. Physical Factors
One of the most important factors in determining personality is the ‘Physical Characteristics’ of an individual. It is believed
that this factor plays a vital role in determining one’s behavior in any organization. Physical features may involve the
height of a person (short or tall), his color (white or black), his health status (fat or skinny) and his beauty (handsome or
ugly). These factors are involved when interacting with any other person and thus contribute in the personality
development in many ways.
3. Social Factors
Social factors also play a vital role in determining one’s personality. The things that revolve and evolve around us on a
regular basis determine our personality. The society that we live in, the cultural environment that we face daily, the
community we get interacted to, all are included in this factor. Relationships, co-ordination, co-operation, interaction,
environment in the family, organizations, workplaces, communities, societies all contribute in way or another as
personality determinants.
4. Cultural and Religious Factors
The culture in which one lives in that may involve traditional practices, norms, customs, procedures, rules and regulations,
precedents and values, all are important determinants of personality. Moreover, the creed, religion and believes are also
very important factors of personality determinants.
5. Heredity Factor
Heredity refers to factors determined at conception. Physical stature, facial attractiveness, gender, temperament, muscle
composition and reflexes, energy level, and biological rhythms are generally considered to be either completely
physiological or inherent psychological makeup. The heredity approach argues that the ultimate explanation of an
individual’s personality is the molecular structure of the genes, located in the chromosomes.
THEORIES OF PERSONALITY
Psychologists and other human behavior theorists developed personality theories based on research studies. These
personality theories are grouped into:
1. Psychoanalytical theories
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Various psychologists contributed to the development of psychoanalytic theory. These psychologists include Sigmund
Freud, Carl Jung, Alfred Adler, Karen Horney and Eric Fromm. Sigmund Freud made significant contributions to the
theory compared to other psychologists. Sigmund Freud, based on his research, concluded that unconscious framework
motivates the man costly. There are three aspects in the unconscious framework viz.,
Figure2e: Freud’s theory of the personality


The Id
The Id
is the

primary principle of all human life. It is the mental agency containing

everything inherited. It seeks gratification for biological needs. It is the unconsciousness part of human personality. The
biological needs include hunger, thirst and sexual needs. These needs would be the driving force for thinking and
behaving throughout the life. According to the Id, the man removes the tension of unsatisfied biological needs by forming
a mental image of the object would satisfy the needs. Thus, the Id concept is related to the imaginary and illusionary
world.
 The Ego
The ego is related to the reality principle. It is the conscious and logical part of human personality. Ego is based on the
realities of the external environment through intellect and reason. The Id wants immediate pleasure through imagination
while the ego wants a real pleasure.
 The Super Ego
Super ego represents a system of personal and societal values, norms, ethics and attitudes. It acts as an ethical
constraint on behavior. This can be treated as conscience. Super ego acts as a norm to the ego in order to determine
which behavior is right and which behavior is wrong. Thus, the super ego judges whether the behavior / action is correct
or incorrect based on the culture, norms and values of the society concerned.
These three aspects are interrelated with each other.
Example
 The Id
A fresh management graduate develops a mental image of a General Manager’s position in a multinational company.
 The Ego
The job market, competition from other candidates like CAs, ICWAs, MHRM, CFAs etc. and recession in the industry
make him to realize the reality and aspire for a junior management position.
 The Super Ego
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The fresh management graduate aspiring for a General Manager’s position and forced to accept a junior management’s
position by the environment.
2. Socio – psychological theories
The society’s needs and psychological factors of the individual shape the personality. The individual and the society
cannot live in isolation. These two interact with and are interdependent on each other. The individual contributes to the
achievement of society’s needs. Similarly, society assists the individual in fulfilling his needs. The psychological factors of
the individual and the sociological factors of the society interact with each other. Thus, this theory is inclusive of social
factors and psychological factors. Contributors to this theory include Alder, Fromni, Horney and Sullivan. The contributions
of the socio – psychologists are as follows:
 Fomm stressed on the importance of social context. These contributions include building social relations, making the
work more social relevance, making the employee to have the feel of social sets in his work and output.
 Sullivan and Horney stressed on interpersonal behaviour. These contributions include developing transactional
abilities, viewing the people positively, developing positive attitude etc.
 Alder emphasized on different variables. These contributions include career networking, religious beliefs, balancing
family and work requirements etc.
 Horney stressed on predominant interpersonal behaviours like being compliant, aggressive and detached. Compliant
people are dependent on others, aggressive people are motivated by the need of power and detached people are self
– sufficient.
3. Trait theories
Catell developed set of traits such as:
 Surface traits
Surface traits include wise – foolish, affectionate – cold, sociable – seclusive, honest – dishonest etc. Individuals keep
their actual feelings inside and exhibit the traits desirable by the situation. Individuals would like to be good to others at
their own cost. Similarly, individuals maintain social relations, develop friendship and networks.
 Source traits
Source traits include Maturity – realism, good nature and trustworthiness, critical – suspicious etc. Individuals with source
traits possess characteristics like maturity of mind, judgmental, analyzing and understanding people and situations more
accurately.
4. Holistic / Self theories
Self theory emphasizes on the totality of the human behaviour. This theory is also known as Organismic theory. This
theory treats the organism as a whole. Carl Rogers contributed four factors viz.,
 Self – image
Self –image is the way one sees himself / herself. Self – image is the set of beliefs of oneself who or what he is.
 Ideal self
The ideal self denotes the way one would like to be. The self – image is the realities of a person while the ideal self is the
ideal position as expected / perceived by him. The ideal self motivates the person.
 Looking glass- self
The looking glass – self is the perception of an individual about how others perceive his / her characteristics and qualities.
Looking glass – self is perception of others’ perception and is the outcome of face – to – face interaction with others from
the very beginning of life.
 Real life
The real life is what one actually is. In other words, real life is the real characteristics, values and attitudes of one self. The
person adjusts and readjusts himself based on the responses of others and the environmental influences.
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2.2. LEARNING
DEFINITION OF LEARNING
Learning can be defined as any relatively permanent change in behavior that occurs as a result of experience.
CHARACTERISITCS OF LEARNING
 Learning involves change
Learning involves a change in behavior, though this change is not necessarily an improvement over previous behavior.
Learning generally has the connotation of improved behavior, but bad habits, prejudices, stereotypes, and work
restrictions are also learned.
 Change must be relatively permanent
The behavioral change must be relatively permanent. Any temporary change in behavior is not a part of learning.
 Behavioral issues
The change in the knowledge and wisdom should produce different attitudes and values. These new attitudes and values
should change the behavior. Then only it is called learning. In other words, the new attitudes and values not accompanied
by change in behavior are not called learning.
 Experience - based
Learning is based on experience. Experience may be direct or indirect, personal or through observation or through
reading.
IMPORTANCE OF LEARNING
The fast growing information and knowledge make learning as the order of the day not only for individual but also for the
organizations. People learn not only information but the behavior. Therefore, we should understand the concept of
learning in order to understand the behavior of the individuals, groups and the organization.
TYPES OF LEARNERS
Learners are categorized into three types. They are as follows:

VISUAL LEARNERS AUDITORY LEARNERS KINESTHETIC LEARNERS

WRITE IT SAY IT DEMONSTRATE IT

Provide written materials and exercises State the information Demonstrate how a principle works

Write key words on board or flip chart Ask audience to describe specific info Ask them to practice the technique

Encourage underlining and

Ask them to write a response Provide discussion periods
highlighting key words
Use visuals or graphics Encourage questions Provide real-life simulations

Ask them to be recorder in a group Foster small group participation Offer hands-on activities

Involve them through

Utilize audiovisuals and audio cassettes Involve them physically
visual/spatial sense

THE LEARNING PROCESS

The learning process is a mental and habit formation process. Attention is paid to certain stimuli used for learning which
are recognized and translated into reinforcement and behavior.
STEPS IN LEARNING PROCESS
1. Stimuli
Stimuli are any objects and language which draw the attention of people. Employees get stimuli from the actions of their
superiors.
2. Attention
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The degree of attention depends upon the nature of stimuli. All stimuli are not paid attention to technical and interesting
stimuli are highly attended. Career oriented stimuli are generally accepted by employee.
3. Recognition
Attention paid – stimuli are recognized as acceptable factors of improvement and new life styles. Employees paying
attention to stimuli are recognizing the stimuli for learning process.
4. Translation
Recognized stimuli are evaluated at the mental level to eliminate the irrelevant points for accepting a part of the stimulus
for changing behavior.
5. Reinforcement
Reinforced perception is learning. The perception process includes stimuli, attention, recognition, translation and behavior.
Perception leads to learning, but perception itself is not learning unless it is reinforced.
Figure 2f: Learning process

Stimuli Attention Recognition Translation

Reinforcement

Behaviour

Efforts Motives Habit Reward

6. Behaviour
Learning changes behavior through reinforcement of perceived knowledge. It makes permanent change in behavior. A
temporary change in behavior is not learning. Positive behavior gives rewards to employees.
7. Reward
Employees expects rewards for learning. If the translated behavior provides a reward, it is accepted, otherwise it is not
accepted.
8. Habits
A permanent change in behavior becomes a habit which helps continuous improvement in behavior and performance.
Employees develop the habit of self – appraisal and development.
9. Motives
Motives depend on the level of satisfaction. Employees getting more satisfaction through learning develop high motives.
Less satisfied learners have low motives. Learning is complete only when motives are fully realized and translated into
efforts.
10. Efforts
Habits help achieve good efforts and performance. This is a continuous process. Efforts are the automatic outcome of
good habits which are acquired through the learning process.
LEARNING THEORIES
There are three theories of learning viz.,
1. Behaviouralistic theories
 Classical conditioning
Ivan Pavlov conducted classical conditioning experiment using dogs as subjects. Classical conditioning came out of
experiments to teach dogs to salivate in response to the ringing of a bell. Pavlov measured the amount of saliva secreted
by a dog. Pavlov presented meat powder to the dog [unconditioned stimulus], and then he noticed a great deal of
salivation [unconditioned response]. When he merely rand a bell [neutral stimulus] the dog had no salivation. Next, Pavlog
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presented the meat powder along with ringing the bell. After doing this several times, he rang the bell without presenting
the meat. This time the dog salivated to do the bell alone. The dog had become classically conditioned to salivate
[conditioned response] to the sound of the bell [conditioned stimulus]. Thus, the classical conditioning reveals that the
stimulus elicits response i.e., Stimulus  Response.
 Operant conditioning
Skinner felt that classical conditioning cannot explain the more complex human behaviors. He felt that human behavior
affects or is affected by the environment. This behavior is explained by operant conditioning. Operant conditioning
emphasis that learning occurs as a consequences of behavior i.e., Response  Stimulus. Employees work for more
hours to get more salary or not to be fired. If the management pays more salary to those employees who work for more
hours, then the employees repeat their behavior of working for more hours. Paying more salary is called reinforcement.
Reinforcement strengthens a behavior and increases the likelihood of repeating that behavior.
2. Cognitive theories
Cognitive theories emphasis on the cognitive process. Cognitive learning theories establish the relationship between
cognitive environmental cues and expectations. Edward Tolman conducted an experiment using white rats as subjects.
He found that a rat could learn to run through a complex maze with purpose and direction toward a goal [food]. The rat
learned to expect that certain cognitive cues associated with the choice point might eventually led to food. Tolman’s
approach is depicted as Stimulus  Stimulus. In other words, learning is the association between the cue and
expectancy. Employees expect higher salaries, promotions, and high quality of work life. Employees learn that they can
achieve their expectations by working productively. The realization of working productively is the result of cognitive
environmental cues.
3. Social learning theories
People learn through different means like observation of others, direct experiences and indirect experiences. Learning
through various means is called social learning. People learn from various models like parents, teachers, peers, leaders
etc. The influence of model is significant in social learning theory. There are four processes through which the model
influences the individuals. These four processes include:
1. Attention processes
People learn from the critical features of the models like leadership skills, attractiveness, timely decision – making etc.
2. Retention process
The level of influence of the model depends on the level to what extent the individual remembers the model.
3. Motor reproduction processes
People may times imitate the models. Children imitate their parents and teachers. This is because, observation is covered
into action.
4. Reinforcement processes
Individuals prefer to exhibit the behavior of the model, if such behavior results in rewards. People may more attention to
and learn the positively reinforced behaviors from the models.
SHAPING: A MANAGERIAL TOOL
Shaping behavior is a systematic reinforcing each successive step that moves an individual closer to the desired
response.
METHODS OF SHAPING BEHAVIOUR
There are four ways to shape behavior. They are as follows:
1. Positive reinforcement
Following a response with something pleasant is called positive reinforcement.
2. Negative reinforcement
Following a response by the termination or withdrawal of something unpleasant is called negative reinforcement.
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3. Punishment
Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable behavior.
4. Extinction
Eliminating any reinforcement that is maintaining a behavior is called extinction.

SCHEDULES OF REINFORCEMENT
The two major types of reinforcement schedules are:
1. Continuous reinforcement schedule
Reinforcing a desired behavior each time it is demonstrated.
2. Intermittent reinforcement schedule
Reinforcing a desired behavior often enough to make the behavior worth repeating but not every time it is demonstrated.
The intermittent reinforcement schedule can be of two types. They are:
1. Ratio schedules
Ratio schedules depend on how many response the subject makes. The individual is reinforced after giving a certain
number of specific types of behavior.
The ratio schedules can be of two types. They are:
1. Fixed – ratio schedule
Initiating rewards after a fixed or constant number of responses.
2. Variable – ratio schedule
Varying the reward relative to the behavior of the individual.
2. Interval schedules
Interval schedules depend on how much time has passed since the previous reinforcement. With interview schedules,
the individual is reinforced on the first appropriate behavior after a particular time has elapsed.
The interval schedules can be of two types. They are:
1.Fixed – interval schedule
Spacing rewards at uniform time intervals
2.Variable – interval schedule
Distributing rewards in time so that reinforcements are unpredictable.
2.3. ORGANIZATIONAL BEHAVIOUR MODIFICATION [OB – Mod]
Emery Air Freight [now part of FedEx] illustrates the use of behavior modification, or what has become more popularly
called OB Mod. It represents the application of reinforcement concepts to individual in the work setting. The typical OB
Mod program follows a five – step problem solving model. The five steps are as follows:
1. Identify critical behaviors
The first step in the OB Mod, therefore, is to identify the critical behaviors that make a significant impact on the
employee’s job performance.
2. Develop baseline data
The second step requires the manager to develop some baseline performance data. This is obtained by determining the
number of times the identified behavior is occurring under present conditions.

3. Identify behavioral consequences

The third step is to perform a functional analysis to identify the behavioral contingencies or consequences of performance.
This tells the manager the antecedent cues that emit the behavior and the consequences that are currently maintaining it.
4. Develop and implement an intervention strategy
Once the functional analysis is complete, the manager is ready to develop and implement an intervention strategy to
strengthen desirable performance behaviors and weaker undesirable behaviors.
5. Evaluate performance improvement
The final step in the OB – Mod is to evaluate performance improvement. That is to evaluate whether employees
underwent a relatively permanent change in behavior.
2.4. MISBEHAVIOR
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DEFINITION OF ORGANIZATIONAL MISBEHAVIOUR [OMB]
Organizational Misbehavior can be defined as “any intentional action by members of organizations that violate core
organizational and / or societal norms. A crucial element in the definition is the intention underlying the misbehavior.
TYPES OF ORGANIZATIONAL MISBEHAVIOUR
Intention serves as the basis for the distinction among three types of organizational misbehavior. They are as follows:
1. OMB Type S
Misbehavior that intends to benefit the self.
2. OMB Type O
Misbehaviour that intends to benefit the organization.
3. OMB Type D
Misbehaviour that intends to inflict damage.
CAUSES OF OMB INTENTIONS
1. OMB Type S
Mostly instrumental and calculative forces [gain or loss, reward or punishment]
2. OMB Type O
Mostly affective forces of commitment and loyalty [identification]
3. OMB Type D
Could be either or both.
GENERAL MODEL OF OMB
Figure 2g: General model of OMB

 Intra – person OMB

Improper behaviours of individuals [workers, managers]
directed at themselves.
 Inter – person OMB
Improper behavior directed at others [colleagues, employees,
supervisors, customers, clients]
 Work processes OMB
Behaviours that may harm job performance and work processes in the organization.
 Property OMB
Misbehaviour which intentionally abuses the organization’s resources and assets.
 Political OMB
Misbehavior aimed at gaining control over resources, and territory, by means of aggressive influence, and subversive
means and tactics.
MANAGEMENT INTERVENTIONS IN ORGANIZATIONAL MISBEHAVIOUR
Figure2h: Management interventions in Organizational Misbehavior
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Management interventions are the actions taken by managers [representing the organization] to prevent, control, or
respond to harmful misbehavior. Figure 2h displays three specific points for management intervention viz., A, B & C. At ‘A’,
management can carefully screen and refuse to hire “risky” individuals. Management also can intervene at the other
antecedent points [job, group and organizational]. The problem with interventions at these points is that the person is
already employed. The most efficient intervention point is during the pre-employment phase. Management intervention ‘B’
requires affecting the normative force, as well as the instrumental force. The goal of this intervention point is to reduce the
possibility of a job, group, or organizational antecedent triggering misbehavior. The attention of an intervention at ‘C’ shifts
from prevention to deterrence. The manager works to reduce the possibility of the intention to misbehave. A member of a
team that values being a part of the unit may learn that misbehavior could mean being transferred to another unit. He /
She may decide that staying with the preferred unit is important and elect to behave properly. The threat of a transfer may
be powerful enough to evoke a change in behavior plans. These intervention points offer managers different opportunities
and challenges. If properly executed, that can possibly reduce the consequences or costs or misbehavior.
2.5. EMOTIONS
DEFINITION AND MEANING OF EMOTIONS
Emotions can be defined as intense feelings that are directed at someone or something.
 Caused by specific event
 Very brief in duration [seconds or minutes]
 Specific and numerous in nature [ many specific emotions such as anger, fear, sadness, happiness, disgust, surprise]
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 Usually accompanied by distinct facial expressions
 Action oriented in nature
SOURCES OF EMOTIONS
 Personality
Personality predisposes us to certain emotions. Some people feel anger and guilt more readily than others. Others feel
calm and relaxed no matter what the situation.
 Time of day and week
Negative emotions are highest at the beginning of the week. [Sundays and Mondays] Positive emotions are highest at the
end of the week [Thursday to Saturday]. People are generally in lower spirits in the morning. During the day, our emotions
improve and then decline in the evening.
 The weather
There is a belief that people have more positive emotions on bright sunny days than rainy ones.
 Stress
Stressful daily events negatively affect employee’s emotions. The effects of stress are cumulative even if the stress is not
severe. Constant, prolonged exposure to stress leads to depression and negative feelings.

 Social interaction
Social activities increase positive emotions and have little effect on negative emotions.
 Sleep
Sleep quality affects emotions. Sleep deprived workers are tend to have greater feelings of fatigue, anger and hostility.
 Exercise
Exercise modestly enhances people’s positive emotions.
 Age
Young people do not experience more positive emotions than older people. Negative emotions seem to occur less as
people get older. Emotional experience tends to improve with age. As we age, we feel fewer negative emotions.
 Gender
Contrasted with men, women are more in touch with their emotions, show greater emotional expression, experience
emotions more intensely, more likely to display positive
EMOTIONAL LABOUR
DEFINITION
Emotional Labour is defined as an employee’s expression of organizationally desired emotions during interpersonal
transactions at work.
EMOTIONAL DISSONANCE
DEFINITION
Emotional Dissonance is defined as inconsistencies between the emotions people feel and the emotions they project.
FELT Vs. DISPLAYED EMOTIONS
 Felt emotions
An individual’s actual emotions
 Displayed emotions
Emotions that are organizationally required and considered appropriate in a given job.
SURFACE Vs. DEEP ACTING
 Surface acting
Hiding one’s inner feelings and forgoing emotional expressions in response to display rules.
 Deep acting
Trying to modify one’s true inner feelings based on display rules.
AFFECTIVE EVENTS THEORY [AET]
Understanding emotions at work has been significantly helped by a model called affective events theory (AET). AET
demonstrates that employees react emotionally to things that happen to them at work and that this influences their job
performance and satisfaction. The theory begins by recognizing that emotions are a response to an event in the individual
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work environment. The work environment includes everything surrounding the job — characteristics of the job such as the
variety of tasks and degree of autonomy, job demands, and requirements for expressing emotional labor. This
environment created work events that can be hassles, uplifts, or both. Examples of events that employees frequently see
as hassles are colleagues who refuse to carry their share of work, conflicting directions by different by different mangers,
and excessive time pressures. Examples of uplifting events include meeting a goal, getting support from a colleague and
receiving recognition for an accomplishment. These work events trigger positive or negative emotional reactions. But the
events-reaction relationship is moderated by the employee’s personality and mood. Personality pre-disposes people to
respond with greater or lesser intensity to the event. For instance, people who score low on emotional stability are more
likely to react strongly to negative events. And the individual’s mood introduces the reality that general affect cycle creates
fluctuations. So a person’s emotional response to a given event can change depending on his or her mood. Emotions
influence a number of performance and satisfaction variables such as organizational citizenship behavior, organizational
commitment, intentions to quit, and level of effort.
In addition, tests of the theory suggest that,
(1) An emotional episode is actually a series of emotional experiences precipitated by a single event. It reflects elements
of both emotions and mood cycles
(2) Job satisfaction is influenced by current emotions at any given time along with the history of emotions surrounding the
event
(3) Since moods and emotions fluctuate over time, their effect on performances also fluctuates
(4) Emotion driven behaviors are typically short in duration and of high variability
(5) Because emotions tend to be incompatible with behaviors required to do a job, they typically have a negative influence
on job performance (even for positive emotions like happiness and joy).
Figure 2i: Affective Events Theory [AET]

An example might help better explain AET. Mr. Y works as an aero-nautical engineer for Boeing. Because of the downturn
in the demand for commercial jets, he has just learnt that the company is considering retrenching 10,000 employees. This
could include Y. This event is likely to elicit a negative emotional reaction. Y has now a fear that he might lose his job and
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primary source of income. And because Y is prone to worry a lot and obsess about problems, his feelings of insecurity are
increased. This event also puts into place a series of sub-events that create an episode. Y talks with his boss and he is
assured that his job is safe. But Y hears rumors that his department is high on the list to be eliminated; he then runs into a
former colleague who was laid six months ago and still has not found work. This in turn creates emotional ups and downs.
One day Y is feeling more upbeat and that he survive the cuts. The next day, he is depressed and anxious, convinced that
his department will be eliminated. These swings in emotions take his attention away from work and result in reduced job
performance and satisfaction. His response is also magnified because this is the fourth large layoff that Boeing has
initiated in the past three years. In summary, AET offers two important messages. First, emotions provide valuable insights
into understanding employee behavior. The model demonstrates how daily hassles and uplifts influence employee
performance and satisfaction. Second, emotions in organizations and the events that cause them should not be ignored,
even when they appear to be minor. This is because they accumulate. It’s not the intensity of hassles and uplifts that lead
to emotional reactions, but more the frequency with which they occur.
EMOTIONAL INTELLIGENCE [EI]
DEFINITION
Emotional Intelligence is defined as the ability to detect and to manage emotional cues and information.
THE CASE FOR EI
 Intuitive appeal
 EI predicts criteria that matter
 EI is biologically based
THE CASE AGAINST EI
 EI is too vague concept
 EI cannot be measured
 The validity of EI is suspect
OB APPLICATIONS OF EMOTIONS
 Selection
 Decision Making
 Creativity
 Motivation
 Leadership
 Negotiation
 Customer Service
 Job Attitudes

THEORIES / MODELS OF EI
There are three main models of EI. They are as follows:
1.Ability based EI model [Peter Salovey and John D.Mayer’s]
The model proposes that EI includes four types of abilities and they are:
 Perceiving emotions
The ability to detect and interpret emotions in faces, pictures, voices, and cultural artifacts – including the ability to identify
one’s own emotions. Perceiving emotions represents a basic aspect of EI, as it makes all other processing of emotional
information possible.
 Using emotions
The ability to harness emotions to facilitate various cognitive activities, such as thinking and problem solving. The
emotionally intelligent person can capitalize fully upon his or her changing moods in order to best fit the task at hand.
 Understanding emotions
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The ability of comprehend emotional language and ability to appreciate complicated relationships among emotions. For
example, understanding emotions encompasses the ability to be sensitive to slight variations between emotions, and the
ability to recognize and describe how emotions evolve over time.
 Managing emotions
The ability to regulate emotions in both ourselves and in other. Therefore, the emotionally intelligent person can harness
emotions, even negative ones, and manage them to achieve intended goals.
2.Mixed model of EI
 Emotional competencies [Daniel Goleman]
This model outlines four main EI constructs. They are as follows:
1.Self – awareness
The ability to read one’s emotions and recognize their impact while using gut feelings to guide decisions.
2.Self – management
Involves controlling one’s emotions and impulses and adapting to changing circumstances.
3.Social awareness
The ability to sense, understands, and reacts to other’s emotions while comprehending social networks.
4.Relationship for management
The ability to inspire, influence, and develop others while managing conflict.
 Bar – on model of Emotional Social Intelligence [ESI] – [Reuven Bar – on]
Reuven defines EI as being concerned with effectively understanding oneself and others, relating well to people, and
adapting to and coping with the immediate surroundings to be more successful in dealing with environmental demands.
Bar – on posits that EI develops over time and that it can be improved through training, programming, and therapy. Bar –
on hypothesizes that those individuals with higher than average EQ are in general more successful in meeting
environmental demands and pressures. He also notes that a deficiency in EI can mean a lack of success and the
existence of emotional problems. Problems in coping with one’s environment are thought, by Bar – on, to be especially
common among these individuals lacking in the subscales of reality testing, problem solving, stress tolerance, and
impulse control. In general, Bar – on considers emotional intelligence and cognitive intelligence to contribute equally to a
person’s general intelligence, which then offers an indication of one’s potential to success in life.
3.Trait EI model [Petrides, et al.,]
This model proposed a conceptual distinction between the ability based model and a trait based model of EI. Trait EI
refers to a collection of behavioural dispositions and self – perceptions concerning one’s ability to recognize, process, and
utilize emotion – laden information. This definition of EI encompasses bahavioural dispositions and self perceived abilities
and is measured by self report, as opposed to the ability based model which refers to actual abilities as they express
themselves in performance based measures. Trait EI should be investigated within a personality framework. The
conceptualization of EI as a personality trait leads to a construct that lies outside the taxonomy of human cognitive ability.
This is an important distinction as much as it bears directly on the operationalization of the construct and the theories and
hypothesis that are formulated about it.
2.6. ATTITUDES
DEFINITION
Attitudes are evaluative statements – either favorable or unfavorable about objects, people, or events. They reflect how
one feels about something.
CHARACTERISTICS OF ATTITUDE
 Difficult to measure
 May create inflexibility and stereotypes
 Demonstrated by behavior
 Formed largely from the continuous process of socialization
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 Can be a positive or negative attitude
 Once formed not easily changed
COMPONENTS OF ATTITUDE
There are three main components of attitude and they are as follows:
1.Cognitive component
The opinion or belief segment of an attitude.
Figure 2h: The components of an Attitude
Cognition, affection and behavior are closely related

Negative attitude
toward Supervisor

Cognitive = Evaluation Affective = Feeling Behavioral = Action

My supervisor gave a I dislike my supervisor I am looking for other

promotion to a work; I have
coworker who complained about my
deserved it less than supervisor to anyone
me. My supervisor is who would listen.
unfair.

2.Affective component
The emotional or feeling segment of an attitude.
3.Behavioural component
An intention to behave in a certain way toward someone or something
ATTITUDE FORMATION
Individual attitude are formed over time as a result of repeated personal experiences with ideas, situations or
people. One of the very important ways to understand individual behaviour in an organization is that of studying attitude,
which is situationally specific and learned.
Attitudes are acquired through:
 Social learning
 Classical conditioning
Classical conditioning theory shows that when initially neutral social stimuli are paired repeatedly with positive or
negative stimuli, subjects will develop positive or negative attitudes towards the previously neutral stimuli.
 Operant / Instrumental conditioning
As per this theory, persons are rewarded for expressing the “correct” attitudes / punished for “incorrect”.
 Observational learning or Modeling
Persons form attitudes by observing and imitating models they like and admire.
 Social comparison
Social comparison is our tendency to compare ourselves with others to judge whether our view of social reality is correct
or not.

 Genetic factors
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Genetic factors may influence general dispositions [e.g. tendency to positive effect] and conditionability that may influence
formation of more specific attitudes.
MEASUREMENT OF ATTITUDES
There are several ways to measure attitudes. They are as follows:
1. Ranking
Rank order preference.
Ranking tasks require that the respondent rank order a small number of objects in overall performance on the basis of
some characteristic or stimulus.
2. Rating
Estimates magnitude of a characteristic.
Rating asks the respondent to estimate the magnitude of a characteristic, or quality, that an object possesses. The
respondent’s position on a scale[s] is where he or she would rate an object.
Different types of scaling techniques for measuring attitudes are as follows:
 Simple attitude scaling
It is the most basic form of attitude scaling and it requires that an individual agree with a statement or respond to a single
question. This type of self – rating scale merely classifies respondents into one of two categories.
Example: The president should run for re – election. – Agree / Disagree
 Category scaling
A category scale is a more sensitive measure than a scale having only two response categories and it provides more
information. Questions working are an extremely important factor in the usefulness of these scales.
Example:

 Method of Summated rating: The Likert scale

An extremely popular means for measuring attitudes. Respondents indicate their own attitudes by checking how strongly
they agree or disagree with statements.
Example:
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 Semantic differential scaling
A series of seven - point bipolar rating scales. Bipolar adjectives, such as good and bad, anchor both ends [or poles] of
the scale. A weight is assigned to each position on the rating scale. Traditionally, scores are 7,6,5,4,3,2,1 or +3, +2, +1, 0,
-1,-2,-3.
Example:

 Graphic rating scale

A graphic rating scale presents respondents with a graphic continuum.
Example:

3. Sorting
Arrange or classify concepts.
Sorting might present the respondent with several concepts typed on cards and require that the respondent arrange the
cards into a number of piles or otherwise classify the concepts.
4. Choice
Selection of preferred alternative.
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Choice between two or more alternatives is another type of attitude measurement. It is assumed that the chosen object is
preferred over the other.
2.7. VALUES
DEFINITION
Values are constellation of likes, dislikes, viewpoints, inner inclinations, rational and irrational judgments, prejudices, and
association pattern that determine a person’s view of the world.
- Edwards Spranger
Values are global beliefs that guide actions and judgments across a variety of situations.
- Milton Rokeach
CHARACTERISTICS OF VALUES
 Part of culture
 Learned responses
 Inculcated
 Social phenomenon
 Gratifying responses
 Adaptive process
IMPORTANCE OF VALUES
 Values lay the foundations for the understanding of attitudes and motivation.
 Personal value system influences the perception of individuals.
 Value system influences the manager’s perception of individuals.
 Personal value system influences the way in which a manager views the other individuals and the groups of individuals
in the organization.
 Value system also influences a manager’s decisions and his solutions to the various problems.
 Values influence the attitudes and behaviours. An individual will get more job satisfaction if his values align with the
organization’s policies. If the organization’s policies are different from his views and values, he will be disappointed; the
disappointment will lead to job dissatisfaction and decline in performance.
 The challenge and re – examination of established work values constitute important cornerstones of the current
management revolution all over the world. Hence, an understanding of the values becomes a necessity.
CONSTRAINTS IN PRACTICING VALUES IN ORGANIZATIONS
 Lack of awareness about one’s own values and practice.
 Choices and decisions based on habits, fears, and expectations of others rather than own values.
 Differing standards for self and others.
 Tendency to avoid pain / loss rather than actively seek meaning and well being.
 People making choices based on values different from others feeling they are alone.
 Blindness to group processes and larger entities.
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 People holding incompatible values, often with materialistic and self – serving values taking priority.
 End values not supported by process values and skills.
2.8. PERCEPTIONS
DEFINITION
Perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to
give meaning to their environment.
- Stephen P Robbins
NATURE / FEATURES OF PERCEPTION
 Perception is an intellectual process.
 Perception is a cognitive or psychological process
 Perception is a subjective process
IMPORTANCE OF PERCEPTION
 Facilitates understanding of human behavior
 Helps in behavior prediction
 Determination of needs
 Effective subordinate dealing
FACTORS INFLUENCING PERCEPTION
1.Characteristics of the perceiver [Internal factors]
 Needs and motives
People’s perception is determined by their inner needs. A need is a feeling of tension or discomfort when one thinks he is
missing something or requires something. People with different needs usually experience different stimuli. Similarly people
with different needs select different items to remember or respond to.
 Self – concept
The way a person views the world depends a great deal on the self – concept or image he has about himself. The self –
concept plays an important role in perceptual selectivity. It can be thought of as an internal form of attention – getting and
is largely based on the individual’s complex psychological make – up.

 Beliefs
A person’s beliefs have profound influence on his perception. Thus, a fact is conceived not on what is but what a person
believes it to be. The individual normally censors stimulus inputs to avoid disturbance of his existing beliefs.
 Past experience
A person’s past experience mould the way he perceives the current situation. If a person has been betrayed by a couple
of friends in the past, he would tend to distrust any new friendship that he might be in the process of developing.
 Current psychological state
The emotional and psychological states of an individual are likely to influence how things are perceived. If a person is
depressed, he is likely to perceive the same situation differently than if he is elated.
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 Expectations
Expectations affect what a person perceives. Expectations are related with the state of anticipation of particular behavior
from a person. In the organizational setting, expectations affect people’s perception. Thus, a technical manager may
expect ignorance about the technical feature of a product from the non – technical people.
2.Characteristics of the target or perceived [External factors]
 Size
The bigger the size of the perceived stimulus, the higher is the probability that is perceived. Size attracts the attention of
an individual. It establishes dominance and enhances perceptual selection.
 Intensity
High intensity increases the chances of selection. If the message is bright, if sentences are underlined, it gets more
attention than in normal case. The greater the intensity of stimulus, the more likely it will be noticed.
 Frequency
Repeated external stimulus is more attention – attracting than a single time. Repetition increases our sensitivity and
alertness to the stimulus. Thus, greater the frequency with which a sensory stimulus is presented, the greater the chances
we select it for attention.
 Status
Perception is also influenced by the status of the perceiver. High status people can exert greater influence on perception
of an employee than low status people.
 Contrast
Stimuli that contrast with the surrounding environment are more likely to be attention catching than the stimuli that blend
in. A contrasting effect can be caused by colour / size or any other factor that is unusual. The contrast principle states that
external stimuli that stand out against the background or which are not what are expected will receive better attention.

3.Characteristics of the situation

The context in which objects or events is seen, is important. Elements in the surrounding environment influence our
perception. The time at which an object or event is seen can influence attention, as can location, light, heat, or any
number of situational factors.
INTERPERSONAL PERCEPTION
Interpersonal perception is an area of research in social psychology which examines the beliefs that interacting people
has about each other. This area differs from social cognition and person perception by being interpersonal rather than
intrapersonal, and thus requiring the interaction of at least two actual people. People all have beliefs about the other
people that they know. A woman might believe that her parents are harsh, that her lover is kind and her friend is intelligent.
These beliefs guide people in various ways. They help people to predict and explain the behavior of others. A man may
believe that because his girl friend is intelligent, she can do complicated crossword puzzles. Beliefs about others are also
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useful when one person has to describe another person to a third party. However, their primary utility lies in helping people
to guide their interactions with others. Beliefs about other tell people whom they should avoid, with whom they should
leave their car when they go on as long trip and whom they should ask for advice when they have a personal problem. So
people’s beliefs about others have important consequences in their everyday lives.
2.9. IMPRESSION MANAGEMENT
Impression management is a process people use to control the perceptions or impressions about themselves, a bit like
personal branding. Individuals may believe they are being judged or perceived based on their outward appearance,
personality or other subjective opinions by other people. Impression management attempts to control these perceptions
from other people through the development of self presentation methods and techniques used to control outward
perceptions or impressions. Common self presentation methods include authentic, ideal or tactical styles of impression
management. An authentic self presentation is used when an individual wants to present himself to other people the same
way he perceives himself. This authenticity allows individuals to behave in a manner consistent with their daily image and
personality. This presentation often involves disclosing information about oneself to solidify the authentic brand. The ideal
impression management presentation is the attempt to present one’s self how he desires to behave or be viewed, rather
than presenting himself in an authentic manner. Closely tied to the ideal brand is the tactical presentation. A tactical brand
is used by individuals who wish to present a public image that reflects positively on them. This technique is used to create
a behavior or personality that is consistent with outside perceptions of how an individual should act or behave.
PURPOSE OF IMPRESSION MANAGEMENT
There are two main motives that govern self – presentation and they are as follows:
1.Instrumental
We want to influence others and gain rewards. There are three instrumental goals.
 Ingratiation
When we try to be happy and display our good qualities so that others will like us.

 Intimidation
Intimidation is aggressively showing anger to get others to hear and obey us.
 Supplication
When we try to be vulnerable and sad so people will help us and feel bad for us.
2.Expressive
We construct an image of ourselves to claim personal identity, and present ourselves in a manner that is consistent with
that image. If we feel like this is restricted, we exhibit reactance / be defiant. We try to assert our freedom against those
who would seek to curtail our self – presentation expressiveness. A classic example is the idea of the “preacher’s
daughter”, the notion that her suppressed personal identity and emotions cause an eventual backlash at her family and
community. Concerning the strategies followed to establish a certain impression, the main distinction is between defensive
and assertive strategies. Whereas defensive strategies include behaviors like avoidance of threatening situations or
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means of self – handicapping, assertive strategies refer to more active behavior like the verbal idealization of the self, the
use of status symbols or similar practices.
2.10.MOTIVATION
DEFINITION
Motivation refers to the way in which urges, drives, desires, aspirations, and strivings or needs direct, control or explain
the behavior of human beings”.
- Dalton E. McFarland
Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned by the effort and ability
to satisfy some individual need”.
- Stephen P Robbins
CHARACTERISTICS OF MOTIVATION
 Motivation is a psychological phenomenon
 Motivation is dynamic and situational
 Motivation is not easily observed phenomenon
 Motivation is a goal oriented process
 Motivation is influenced by social and cultural norms
 Motivation is a continuous process
IMPORTANCE OF MOTIVATION
 Motivation sets in motion the action of people
 Motivation improves the efficiency of work performance
 Ensures achievement of organizational goals
 Motivation creates friendly and supportive relationships
 Motivation leads to the stability in the work place
 Acceptance of organizational changes
PROCESS OF MOTIVATION
Figure 2i: Motivation process

In the initiation a
person starts
feeling lack nesses.
There is an arousal of
need so urgent, that the bearer has to venture in search to satisfy it. This leads to creation of tension, which urges the
person to forget everything else and cater to the aroused need first. This tension also creates drives and attitudes
regarding the type of satisfaction that is desired. This leads a person to venture into the search of information. This
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ultimately leads to evaluation of alternatives where the best alternative is chosen. After choosing the alternative, an action
is taken. Because of the performance of the activity satisfaction is achieved which than relieves the tension in the
individual.
TYPES OF MOTIVATION
 Positive versus Negative motivation
Positive motivation
Positive motivation is a response which includes enjoyment and optimism about the tasks that you are involved in.
Negative motivation
Negative motivation involves undertaking tasks because there will be undesirable outcome. Example: Failing a subject, if
tasks are not completed.
 Rational versus Emotional Motivation
Rational motivation
The term rationality is associated with persons who carefully weigh the pros and cons of all the alternatives and then
choose the one that gives them the greatest utility. In the marketing context we can say that consumers who are rational
will select the goals after ascertaining various objective criteria such as size, weight, price, etc.,

Emotional motivation
As against this emotional motive are those goals, which are selected on the basis of emotion’s involvement. Usually such
goals are selected purely on personal or subjective criteria such as desire for recognition of status, fear, esteem, love, etc.
 Primary versus secondary motivation
Primary motivation
This mainly pertains to motives involved with our need for self-preservation. This includes needs such as hunger and
thirst, warmth, avoidance of pain and other primary motives which influence a person's behaviour at a very basic level.
Secondary motivation
More known in psychology as "learned" motivation, this type of "drives" differ from one person to another. In many ways
they involve a person's own sense of values and priorities in life. Many of the behaviour derived from secondary
motivation are conscious ones. That is, a person consciously desires a particular goal or result, and behaves in a way that
brings them closer to that particular goal. What drives them to do something or to act in a particular way is the longing for
something which they currently do not have or possess.
 Financial and Non – financial motivation
Financial motivation
These are monetary in natures as they involve flow of money from the organization to its staff. The examples financial
benefits are wages, salaries, allowances, bonus, fringe benefits, etc.
Non – financial motivation
Non – financial motivation do not involve much financial commitments on the part of the organization. They do not add to
the money income of those who receive them. They take the form of job enrichment, participative management, praise,
opportunity for growth, etc.
 Intrinsic versus Extrinsic motivation
Intrinsic motivation
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It refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than
relying on any external pressure.
Extrinsic motivation
Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards like money and
grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win
and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also
extrinsic incentives.
EFFECT OF MOTIVATION ON WORK BEHAVIOUR
Motivation is a term in organizational behavior which leads the employee inside the organization to attain the specific
goals and objectives. The goal oriented behavior come when only a kind of intrinsic or extrinsic motivational force is there,
enforcing the employees to fill the gap between the tension recognition and the goal attainment. When a motivated
employee attains its specific goal, a positive reinforcement is brought along the work performance. According to the
instrumental theory of work motivation and learning, if this positive reinforcement is compensated through any intrinsic or
extrinsic reward, the situation / stimulus becomes instrumental into the habit of employees and they feel more satisfied
inside the organization. Thus, it can be overlooked that motivation, job satisfaction and their outcomes are closely bound
with each other. Increase in one factor automatically gives an increment in another factor. Motivation is termed as a major
factor behind the job satisfaction. The overall effects of job satisfaction through motivation are as follows:
 Job satisfaction through motivation and job performance
Happy workers are more likely to be productive workers, although it is hard to tell which way the causality runs. However,
some researchers used to believe that the relationship between job satisfaction and job performance was a management
myth. But a review of 300 studies suggested that the correlation is pretty strong. As we move from the individual level to
that of the organization, we also find support for the satisfaction – performance relationship. When satisfaction and
productivity data are gathered for the organization as a whole, we find that organizations with more satisfied employees
tend to be more effective then organizations with fewer satisfied employees.
 Job satisfaction through motivation and OCB
It seems logical to assume that job satisfaction should be a major determinant of an employee’s Organizational
Citizenship Behaviour [OCB]. Satisfied employees would seem more likely to talk positively about the organization, help
others, and go beyond the normal expectation in their job. Moreover, satisfied employees might be more prone to go
beyond the call of duty because they want to reciprocate their positive experiences. Consistent with this thinking, early
discussion of OCB assumed that it was closely linked with satisfaction. More recent evidence, however, suggests that
satisfaction influences OCB, but through perceptions of fairness.
 Job satisfaction through motivation and customer satisfaction
Employees in service jobs often interact with customers. Since the management in service organizations should be
concerned with pleasing those customers, it is reasonable to ask : Is employee satisfaction related to positive customer
outcomes? For front line employees who have regular contact with customers, the answer is “Yes”. The evidence
indicates that satisfied employees increase customer satisfaction and loyalty. Why? In service organizations, customer
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retention and defection are highly dependent on how front – line employees deal with customers. Satisfied employees are
more likely to be friendly, upbeat, and responsive – which customers appreciate. And because satisfied employees are
less prone to turnover, customers are more likely to encounter familiar faces and receive experienced service. These
qualities build customer satisfaction and loyalty. In addition, the relationship seems to apply in reverse. Dissatisfied
customers can increase an employee’s job dissatisfaction. Employees who have regular contact with customers report
that rude, thoughtless, or unreasonably demanding customers adversely affect the employees’ job satisfaction.
 Job satisfaction through motivation and absenteeism
A consistent negative relationship is found between satisfaction and absenteeism, but the correlation is moderate to weak.
While it certainly makes sense that dissatisfied employees are more likely to miss work, other factors have an impact on
the relationship and reduce the correlation coefficient. For example, organizations that provide liberal sick leave benefits
are encouraging all their employees – including those who are highly satisfied – to take days off. Assuming that you have
a reasonable number of varied interests, you can find work satisfying and yet still take off work to enjoy a 3 day weekend
or tan yourself on a warm summer day if those days come free with no penalties.
 Job satisfaction through motivation and turnover
Satisfaction is also negatively related to turnover, but the correlation is stronger than what we found for absenteeism. Yet,
again, other factors such as labour market conditions, expectations about alternative job opportunities, and length of
tenure with the organization are important constraints on the actual decision to leave one’s current job. Evidence indicates
that an important moderator of the satisfaction – turnover relationship is the employee’s level of performance
 Job satisfaction through motivation and workplace deviance
Job dissatisfaction predicts a lot of specific behaviours, including unionization attempts, substance abuse, stealing at
work, undue socializing, and tardiness. Researchers argue that these behaviours are indicators of a broader syndrome
that we would term deviant behavior in the workplace [or employees’ withdrawal]. The key is that if employees do not like
their work environment, they will respond somehow. It is not always easy to forecast exactly how they will respond. One
worker’s response might be to quit. But another may respond by taking work time to surf the internet, taking work supplies
home for personal use and so on. If employers want to control the undesirable consequences of job dissatisfaction, they
had best attack the source of the problem – the dissatisfaction – rather than trying to control the different responses.
THEORIES OF MOTIVATION
1) Abraham Maslow’s “Need Hierarchy Theory”
One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth by psychologist
Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he
concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator.
As per his theory these needs are:
(i) Physiological needs
These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep, medicine and education are
the basic physiological needs which fall in the primary list of need satisfaction. Maslow was of an opinion that until these
needs were satisfied to a degree to maintain life, no other motivating factors can work.
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(ii) Security or Safety needs
These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes
protection against any emotional harm.
(iii) Social needs
Since people are social beings, they need to belong and be accepted by others. People try to satisfy their need for
affection, acceptance and friendship.
(iv) Esteem needs
According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by
themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It
includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as
states, recognition and attention.
(v) Need for self-actualization
Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is capable of becoming; it
includes growth, achieving one’s potential and self-fulfillment. It is to maximize one’s potential and to accomplish
something.
Figure 2j: Maslow’s Need Hierarchy Theory

As each of these needs is substantially satisfied, the next need becomes dominant. From the standpoint of motivation, the
theory would say that although no need is ever fully gratified, a substantially satisfied need no longer motivates. So if you
want to motivate someone, you need to understand what level of the hierarchy that person is on and focus on satisfying
those needs or needs above that level. Maslow’s need theory has received wide recognition, particularly among practicing
managers. This can be attributed to the theory’s intuitive logic and ease of understanding. However, research does not
validate this theory. Maslow provided no empirical evidence and other several studies that sought to validate the theory
found no support for it.
2) “Theory X and Theory Y” of Douglas McGregor
McGregor, in his book “The Human side of Enterprise” states that people inside the organization can be managed in two
ways. The first is basically negative, which falls under the category X and the other is basically positive, which falls under
the category Y. After viewing the way in which the manager dealt with employees, McGregor concluded that a manager’s
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view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mold his or
her behavior towards subordinates according to these assumptions.
Under the assumptions of theory X
 Employees inherently do not like work and whenever possible, will attempt to avoid it.
 Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals.
 Employees avoid responsibilities and do not work fill formal directions are issued.
 Most workers place a greater importance on security over all other factors and display little ambition.
In contrast under the assumptions of theory Y
 Physical and mental effort at work is as natural as rest or play.
 People do exercise self-control and self-direction and if they are committed to those goals.
 Average human beings are willing to take responsibility and exercise imagination, ingenuity and creativity in solving the
problems of the organization.
 That the way the things are organized, the average human being’s brainpower is only partly used.
On analysis of the assumptions it can be detected that theory X assumes that lower-order needs dominate individuals and
theory Y assumes that higher-order needs dominate individuals. An organization that is run on Theory X lines tends to be
authoritarian in nature, the word “authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to
command.” In contrast Theory Y organizations can be described as “participative”, where the aims of the organization and
of the individuals in it are integrated; individuals can achieve their own goals best by directing their efforts towards the
success of the organization. However, this theory has been criticized widely for generalization of work and human
behavior.
3) Frederick Herzberg’s motivation-hygiene theory
Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known as two-factor theory or
Hygiene theory. He stated that there are certain satisfiers and dis-satisfiers for employees at work. Intrinsic factors are
related to job satisfaction, while extrinsic factors are associated with dissatisfaction. He devised his theory on the
question: “What do people want from their jobs?” He asked people to describe in detail, such situations when they felt
exceptionally good or exceptionally bad. From the responses that he received, he concluded that opposite of satisfaction
is not dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. He
states that presence of certain factors in the organization is natural and the presence of the same does not lead to
motivation. However, their non-presence leads to de-motivation. In similar manner there are certain factors, the absence
of which causes no dissatisfaction, but their presence has motivational impact.
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 Figure2k: Frederick Herzberg’s motivation-hygiene theory

Examples of Hygiene factors

Security, status, relationship with subordinates, personal life, salary, work conditions, relationship with supervisor and
company policy and administration.
Examples of Motivational factors
1. Growth prospectus.
2. Job advancement.
3. Responsibility.
4. Challenges.
5. Recognition.
6. Achievements.
4) Vroom’s Valence x Expectancy theory
The most widely accepted explanations of motivation have been propounded by Victor Vroom. His theory is commonly
known as expectancy theory. The theory argues that the strength of a tendency to act in a specific 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 to make this simple, expectancy theory says that an employee can be motivated to perform better when
there is a belief that the better performance will lead to good performance appraisal and that this shall result into
realization of personal goal in form of some reward. Therefore Motivation = Valence x Expectancy.
The theory focuses on three things:
 Efforts and performance relationship
 Performance and reward relationship
 Rewards and personal goal relationship
This leads us to a conclusion that:
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5) The Porter and Lawler Model
Lyman W. Porter and Edward E. Lawler developed a more complete version of motivation depending upon expectancy
theory.

Figure 2l: The Porter and Lawler Model

Actual performance in a job is primarily determined by the effort spent. But it is also affected by the person’s ability to do
the job and also by individual’s perception of what the required task is. So performance is the responsible factor that leads
to intrinsic as well as extrinsic rewards. These rewards along with the equity of individual lead to satisfaction. Hence,
satisfaction of the individual depends upon the fairness of the reward.
6) Clayton Alderfer’s ERG Theory
Alderfer has tried to rebuild the hierarchy of needs of Maslow into another model named ERG i.e. Existence –
Relatedness – Growth. According to him there are 3 groups of core needs as mentioned above. The existence group is
concerned mainly with providing basic material existence. The second group is the individuals need to maintain
interpersonal relationship with other members in the group. The final group is the intrinsic desire to grow and develop
personally. The major conclusions of this theory are:
1. In an individual, more than one need may be operative at the same time.
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2. If a higher need goes unsatisfied than the desire to satisfy a lower need intensifies.
3. It also contains the frustration-regression dimension.
7) McClelland’s Theory of Needs
David McClelland has developed a theory on three types of motivating needs:
1. Need for Power
2. Need for Affiliation
3. Need for Achievement
Basically people for high need for power are inclined towards influence and control. They like to be at the center and are
good orators. They are demanding in nature, forceful in manners and ambitious in life. They can be motivated to perform if
they are given key positions or power positions. In the second category are the people who are social in nature. They try
to affiliate themselves with individuals and groups. They are driven by love and faith. They like to build a friendly
environment around themselves. Social recognition and affiliation with others provides them motivation. People in the third
area are driven by the challenge of success and the fear of failure. Their need for achievement is moderate and they set
for themselves moderately difficult tasks. They are analytical in nature and take calculated risks. Such people are
motivated to perform when they see at least some chances of success. McClelland observed that with the advancement
in hierarchy the need for power and achievement increased rather than Affiliation. He also observed that people who were
at the top, later ceased to be motivated by this drives.
8) Equity Theory
As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the reward structure as being fair
or unfair, relative to the inputs. People have a tendency to use subjective judgment to balance the outcomes and inputs in
the relationship for comparisons between different individuals. If people feel that they are not equally rewarded they either
reduce the quantity or quality of work or migrate to some other organization. However, if people perceive that they are
rewarded higher, they may be motivated to work harder.

Figure 2m:
Equity Theory
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9) Reinforcement Theory
B.F. Skinner, who propounded the reinforcement theory, holds that by designing the environment properly, individuals can
be motivated. Instead of considering internal factors like impressions, feelings, attitudes and other cognitive behavior,
individuals are directed by what happens in the environment external to them. Skinner states that work environment
should be made suitable to the individuals and that punishment actually leads to frustration and de-motivation. Hence, the
only way to motivate is to keep on making positive changes in the external environment of the organization.
QUESTION BANK
TWO MARKS
1. Define Personality.
2. List out the primary personality traits.
3. What are the ways to measure personality?
4. Brief on Locus of Control.
5. What is Dogmatism?
6. Differentiate between Introversion and Extroversion.
7. Differentiate between Type A & Type B personality.
8. What are the factors / determinants influencing personality?
9. Define Learning.
10.What are the characteristics of learning?
11. Define OMB.
12.What are the types of OMB?
13.Define Emotion.
14.What are the sources of emotions?
15.Define Emotional Labour.
16.Define Emotional Dissonance.
17.Define EI.
18.Define Attitude.
19.What are the characteristics of attitude?
20.What are the components of attitude?
21.Define Value.
22.What are the characteristics of value?
23.Define Perception.
24.What are the features of perception?
25.What are the factors influencing perception?
26.Write a note on Interpersonal perception.
27.Define Motivation.
28.What are the characteristics of motivation?
SIXTEEN MARKS
1. What are the different types of personality?
2. Brief on Big Five personality model.
3. What are different theories of personality?
4. What are the types of learners?
5. Brief on learning process.
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6. What are the different theories of learning?
7. What are the methods of shaping behavior?
8. Discuss about the 5 step OB Mod problem solving model.
9. Discuss about the theories of EI.
10.What are the different ways to measure attitude?
11. Discuss about the importance of motivation.
12.Brief on motivation process.
13.What are the different types of motivation?
14.What are the different theories of motivation?
15.How motivation will effect on work behavior?

UNIT - III
3. GROUP BEHAVIOUR
3.1. ORGANIZATION STRUCTURE
- FORMATION
3.2. GROUPS IN ORGANIZATION
- INFLUENCE OF INFORMAL GROUPS IN ORGANIZATION
- GROUP DYNAMICS
- EMERGENCE OF INFORMAL LEADERS AND WORKING NORMS
- GROUP DECISION MAKING TECHNIQUES
- INTERPERSONAL RELATIONS IN GROUPS
- COMMUNICATION WITHIN GROUPS
- CONTROL IN GROUPS
3.3. TEAM BUILDING
3.1. ORGANIZATION STRUCTURE
MEANING
Organizational structure refers to the hierarchical arrangement of various positions in an enterprise. It also defines the
relationship between various positions, departments and persons. It helps in allocating authority and responsibility formally
and decides who is to report to whom and who is to direct to whom. It defines the position of persons in the organization,
i.e., who is superior to whom and who are his subordinates. Organizational structure defines the formal relationship into
managerial hierarchy. The organizational structure looks like a pyramid with a narrow top and broad bottom below.
Figure3a: Organization Structure
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FEATURES OF GOOD
ORGANIZATION STRUCTURE
 Simplicity
An organizational structure should be basically simple. The concept of simplicity implies that various organizational
relations should be kept minimum possible.
 Flexibility
An organization structure should be flexible enough so that changes can be incorporated whenever needs arise. The
structure is design do not only for a time period but a distant future also. As such continuity must be maintained in the
organizational structure over the period of time.
 Clear line of authority
Whatever the form of structure is adopted, there should be clear lines of authority running from top to bottom or in
horizontal directions.
 Application of ultimate responsibility
The concept of ultimate responsibility suggests that although a superior manager assigns some of the work to his
subordinates, he is ultimately responsible for performance of total work.
 Proper delegation of authority
The concept of ultimate responsibility can work only when there is proper delegation of authority at various levels of the
organization. Delegation of authority refers to authorizing a manager to make certain decisions.
 Minimum possible managerial levels
As far as possible, there should be minimum managerial levels. Greater the number of managerial levels, longer is the line
of communication in the chain of command and the communication has to travel along the line creating problems of delay
and distortion.
 Principles of unity of direction and command
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Principles of unity of direction and unity of command should be followed that is an employee should receive orders from
only one superior.
 Proper emphasis on staff
Line functions should be separated from staff functions and adequate emphasis should be placed on important staff
activities.
 Provision for top management
In corporate form of organization, it is imperative to provide some means by which shareholder and members of the board
of directors participate in management process. Normally shareholders are indifferent so far as day – to – day
management affairs of the company are concerned.
ELEMENTS OF ORGANIZATIONAL STRUCTURE
 Work specialization
 Departmentalization
 Chain of command
 Unity of command
 Span of management’
 Centralization and Decentralization
 Formalization
FORMATION OF ORGANIZATIONAL STRUCTURE
The following are the steps in the formation of organizational structure:
 Determination of organizational goals and identification of related activities
Organization goals must be well and clearly spelt – out. Based on the goals, all activities that are required should be
identified and broken down into smallest sub – activities that may be assigned as a task or a job to the worker. This is
applicable to both managerial and operational functions in the organization.
 Grouping of activities
All identical activities should be grouped, keeping in mind formation of various departments or divisions, A set of activities
could be further sub – divided and assigned to a particular section of a department.
 Delegation of authority
A person cannot perform his duties unless he has been given adequate authority to accomplish the assigned task, He
cannot be made responsible and accountable if requisite authority has not been given. Authority, responsibility, and
accountability are tied together. An individual employee cannot be held responsible without authority. When jobs, activities
are classified, divided, and grouped under executives at various levels, it would give birth to a rough skeleton on which an
organization structure is established. Formulating an organization structure on the basis of the content of the job and
subsequently making placements or various people is generally carried out. However, first assigning a job and later
shaping an organization structure can also happen. Some thinkers are of the opinion that beginning to allot the task
should be made at the top level coming down to the bottom level. While others feel that the bottom level tasks should be
allotted at the beginning and gradually moving up the ladder and making allocation. It is not important as to which
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approach is taken in making an organization structure, what is important is grouping or jobs and activities, delegation of
authority and utilization or resources to its full capacity. It is also important to keep in mind that each job is confirmed to a
single person, and adequate care is taken for narrow specialization within the structure of the organization.
TYPES OF ORGANIZATION STRUCTURE
There are different types of organizational structures and a company should choose the one that best suits their needs.
Traditional Structures
These are the structures that are based on functional division and departments. These are the kind of structures that
follow the organization's rules and procedures. They are characterized by having precise authority lines for all levels in the
management. Under types of structures under traditional structures are:
 Line Structure
This is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure
come from top to bottom in a line. Hence the name line structure. This kind of structure is suitable for smaller
organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision-making,
and also very informal in nature. They have fewer departments, which makes the entire organization a much decentralized
one.
 Line and Staff Structure
Though line structure is suitable for most organizations, especially small ones, it is not effective for larger companies. This
is where the line and staff organizational structure comes into play. Line and 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 the layers and guidelines that are typical to it, and let’s not forget the
formality involved.
Figure3b: Line structure

Figure3c: Line and

Staff structure
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  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 based
organization consists of Vice President, Sales department, Customer Service Department, Engineering or production
department, accounting department and Administrative department.
Figure3d: Functional structure

Divisional Structures
This is the kind of structure that is based on the different divisions in the organization. These structures can be further
divided into:
 Product structure
A product structure is based on organizing employees and work on the basis of the different types of products. If the
company produces three different types of products, they will have three different divisions for these products.
Figure3e: Product structure
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 Market Structure
Market structure is used to group employees on the basis of specific market the company sells in. A company could have
3 different markets they use and according to this structure, each would be a separate division in the structure.
Figure3f: Market structure

 Geographic structure
Large organizations have offices at different place, for example there could be a north zone, south zone, west and east
zone. The organizational structure would then follow a zonal region structure.
Figure3g: Geographic structure
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 Matrix Structures
This is a structure, which is a combination of function, and product structures. This combines both the best of both worlds
to make an efficient organizational structure. This structure is the most complex organizational structure.
It is important to find an organizational structure that works best for the organization, as the wrong set up could hamper
proper functioning in the organization.
Figure3h: Matrix structure

The new organization structure or management style

The new organization structure has no clearly defined boundary separating management from employees. It is a more flat
and open structure known as the "humanistic" or "organic" style of management whereby employees and managers are
seen as equal partners working towards a common goal. It is a more humane and "long-term thinking" style of
management that permits the decision-making process to be distributed throughout the organization as a way of tapping
onto the creativity and experience of its staff.
Among the more common aspects of this new style of management are as follows:
1. Self-managing individuals and work teams.
2. People become more multi - skilled so there are fewer job classifications.
3. Greater investment in learning and training for everyone.
4. Few status distinctions.
5. More goal-oriented and less emphasis on how people do the work.
6. Incentives for employees to perform work are less financially-based (eg. salary).
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7. Greater employment security.
8. A policy that decisions will be made by consensus.
9. Flexible outsourcing arrangements.
10.A flexible (yet stable) management structure. Flexible to the point of learning from its employees and stable in the
sense that it is developing long-term quality solutions for the organization.
The only potential problem with this management style is what happens if the organization suddenly finds itself in a
survival situation. Would the staff be too complacent and happy achieving the goals of the organization without finding
ways of being able to quickly respond to the emergency? Perhaps they may expect other people to have the skills to
handle the problem?
Figure3i Flat / Organic structure

3.2.

GROUPS IN ORGANIZATION
DEFINITION
A group is a set of two or more individuals who are jointly characterized by a network of relevant communications, a
shared sense of collective identity and one or more shared dispositions with associated normative strength.
- David H Smith
A group may de defined as a social phenomenon in which two or more persons decide to interact with one another, share
common ideology and perceive themselves as a group.
- Edgar H Schien
CHARACTERISITICS OF A GROUP
 Social interaction
One of the most obvious characteristics of group is that they are composed of two or more people in social interaction. In
other words, the members of group must have influence on each other. The interaction between parties may either verbal
or non - verbal, but the parties must have some impact on.
 Stable structure
Group also must posses a stable structure. Although groups can change, and often do, there must be some stable
relationships that keep group members together and functioning as an unit.
 Common Interest
Another characteristic of groups is that their members share common interests or goals.
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 Perceive themselves as part of group
Finally, to be a group, the individuals involved must perceive themselves as a group. Group is composed of people who
recognize each other as a member of their group and can distinguish these individuals from non - members.
TYPES OF GROUPS
In an organization, there are three types of groups, which are as follows:
 Functional or formal groups
Functional groups are the groups formed by the organization to accomplish different organizational purposes. According to
A L Stencombe, "a formal group is said to be any social arrangement in which the activities of some persons are planned
by others to achieve a common purpose". These groups are permanent in nature. They have to follow rules, regulations
and policy of the organization. A formal organizational group includes departments such as the personnel department, the
advertising department, the quality control department and the public relations department.
 Task group
Tasks groups are the groups formed by an organization to accomplish a narrow range of purposes within a specified time.
These groups are temporary in nature. They also develop a solution to a problem or complete its purpose. Informal
committees, task forces and work teams are included in task groups. The organization after specifying a group
membership, assigns a narrow set of purposes such as developing a new product, evaluating a proposed grievance
procedure, etc.
 Informal group
Informal groups are the groups formed for the purposes other than the organizational goals. Informal groups form when
individuals are drawn together by friendship, by mutual interests or both. These groups are spontaneous. According to
Keith David, "the network of persons and social relations which is not established or required form an informal
organization". These are the groups formed by the employees themselves at the workplace while working together. The
organization does not take any active interest in their formation. Informal groups are very effective and powerful. These
groups work as an informal communication network forming a part of the grapevine to the organizations. They are also
like a powerful force, which an organization cannot avoid. Some managers consider them to be harmful to the interest of
an organization. They suspect their integrity and consider as a virtual threat. Some managers do not consider them as
threat and seek the help of group members in getting the organizational task accomplished. Informal groups are of
following types:

 Interest group
Interest groups are the groups formed to attain a common purpose. Employees coming together for payment of bonus,
increase in salary, medical benefit and other facilities are the examples of interest groups.
 Membership group
Membership groups are the groups of individuals' belonging to the same profession and knowing each other. For
example, teachers of the same faculty in a university.
 Friendship group
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Friendship groups are the groups of individuals belonging to same age group, having similar views, tastes and opinions.
These groups can also be formed outside the plant or office and can be in the form of clubs and associations.
 Reference group
Reference groups are the group where individuals shape their ideas, beliefs, values etc. They want support from the
group.
INFLUENCE OF INFORMAL GROUPS IN ORGANIZATION
Influence is defined as the ability to effect the perceptions, attitudes, or behaviors of others. Informal groups are important
not only from the view point of their members; they have a great utility from organization's point of view also. They help
the organization in better administration by performing the following functions:
 Filling in gaps in manager's abilities
Informal organization may act to fill in gaps in a manager's abilities. For example, if a manager is weak in planning, one of
his subordinates may help him informally in such a situation.
 Solving work problems
Informal organization helps in solving the work problems of members. It allows them sharing job knowledge and taking
decisions which affect a number of jobs.
 Better coordination
Informal groups evolve short - cuts and eliminate red tapism. They facilitate smooth flow of information and quick decision
- making. All these ensure better coordination among various individuals and departments.
 Channel of communication
Informal groups act to fill up the communication gaps, which arise in the organization. Informal communication cuts across
the hierarchical and departmental boundaries and transmits information with greater speed.
 Restraint on managers
Informal groups do not allow the managers to cross their limits. They restrict them from acquiring unlimited power and
from using their power injudiciously.
 Better relations
A manager can build better relations with subordinates through informal contacts. He can consult the informal leaders and
seek their cooperation in getting the things done from the workers.

 Norms of behaviour
Informal groups develop certain norms of behaviour, which differentiate between good and bad conduct and between
legitimate and illegitimate activities. These bring discipline and order among the employees.
 Satisfied workforce
Cohesive informal groups provide satisfaction to the workers. As a result, labour turnover and absenteeism are reduced
and organization's productivity is increased.
 Developing future executives
Informal groups recognize talented workers as their leaders. Such leaders can be picked by the management to fill
vacancies at the junior executive level in the future.
GROUP DYNAMICS
MEANING
The term "Group Dynamics" contains two terms : Group and Dynamics. Group is basically a collectively of two or more
persons. Dynamics comes from Greek word and meaning is force. Group dynamics is a social process by which people
interact face - to - face in small groups. It encompasses the dynamic of interaction patterns within the group, the subtle
and the non - subtle pressures exerted by group members, the manner in which decisions are made in the group, how
work gets done and how member needs are satisfied. Kurt Levin popularized the term Group Dynamics in 1930's.
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FEATURES OF GROUP DYNAMICS
 Perception
Every member of the group have face - to - face meetings. They develop some impression or perception about each
other and give their reactions to each other. Each member perceives the group differently, which he reveals at some
situations.
 Motivation
Members join groups because they expect that the group will solve their problems. They want progress and promotion
which are achieved through group performance. Employees join groups to get their pay and working problems redressed.
 Group goals
Group goals are targets towards which input, process and output are directed. If people of a group accept responsibility,
group activities are evolved and workers perform successfully.
 Group organization
Group is an organization which is composed of different organs to attain certain objectives. A group has the structural
elements of an effective organization. Similarly, it has a set of norms that regulate the functions of the group. A number of
individuals in the group have definite status, role relationship, set of values and own regulating behaviour.
 Interdependency
The main feature of a group is the members' interdependence. If the individuals start supporting each other and interact
with each other, they form a group. If they develop it as a permanent system, it becomes an organization.
Interdependence must be dynamic.
 Interaction
Members of a group must interact with each other. If they are interdependent but do not interact, the group's goals are not
achieved. If any problem arises, the interaction of all the members is needed to solve the problem.
 Entity
A group has its own identity. It has similarity and proximity. It is felt and realized but cannot be seen. The collection of
individual experiences becomes the guidelines for the members. Vicinity and proximity have given birth to the group.
IMPORTANCE OF GROUP DYNAMICS
 Group dynamics is increasingly important in an organization due to changes in an organization.
 Managers can bring out higher performance by weighing the characteristics of members who assigned with
particular job / task.
 Group members have task - relevant expertise and appropriate interpersonal skills for accomplishment of tasks.
 The size of the group has also plays significant role in improving the group's performance.
 In the case of mid - sized groups, it consists of five to seven members that seem to be an optimum size in an
organization.
 In the case of smaller groups, it can often intensify individual differences in team work.
 In the case of large groups which tend to be when working in groups than when working alone.
 Provide free riding is particularly likely when members exhibit individualism rather than collectivism.
EMERGENCE OF INFORMAL LEADERS
Groups are unique and evolving entities. The individuals within the group help determine the way the group will operate by
selecting their leaders from those who have the special skills or abilities needed by their group. An informal leader is
someone within an organization or work unit who, by virtue of how he or she is perceived by his peers is seen as worthy
of paying attention to, or following. The major thing that distinguishes an informal leader from a formal one is that the
informal leader does not hold a position of power or formal authority over those that choose to follow him or her. The
ability for an informal leader to influence or lead others rests on the ability of that person to evoke respect, confidence,
and trust in others, and it is not uncommon for an informal leader to not intentionally try to lead. Informal leaders can be
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exceedingly valuable to organizations, and to the success of formal leaders, or, if informal leaders do not support the
formal leaders and their agendas and vision, they can function as barriers in the organization. However, a successful
leader of one group will not necessarily be the acknowledged leader in another. Although elected to an office, a person
may not have the required capabilities or be seen by others as directing the group activities. This is especially true when
other group members are more clearly expressing leadership qualities. In this situation, the other individuals can be
helpful or disruptive to the established leadership.
WORKING NORMS OF GROUPS
Group norms are the informal rules that groups adopt to regulate members' behavior. Norms are characterized by their
evaluative nature; that is, they refer to what should be done. Norms represent value judgments about appropriate
behavior in social situations. Although they are infrequently written down or even discussed, norms have powerful
influence on group behavior. If each individual in a group decided how to behave in each interaction, no one would be
able to predict the behavior of any group member; chaos would reign. Norms guide behavior and reduce ambiguity in
groups.
Groups do not establish norms about every conceivable situation but only with respect to things that are significant to the
group. Norms might apply to every member of the group or to only some members. Norms that apply to particular group
members usually specify the role of those individuals. Norms vary in the degree to which they are accepted by all
members of the group: some are accepted by almost everyone, others by some members and not others. For example,
university faculty and students accept the faculty norm of teaching, but students infrequently accept the norm of faculty
research. Finally, norms vary in terms of the range of permissible deviation; sanctions, either mild or extreme, are usually
applied to people for breaking norms. Norms also differ with respect to the amount of deviation that is tolerable. Some
norms require strict adherence, but others do not. Understanding how group norms develop and why they are enforced is
important to managers. Group norms are important determinants of whether a group will be productive. A work group with
the norm that its proper role is to help management will be far more productive than one whose norm is to be antagonistic
to management. Managers can play a part in setting and changing norms by helping to set norms that facilitate tasks,
assessing whether a group's norms are functional, and addressing counterproductive norms with subordinates.
Norms usually develop slowly as groups learn those behaviors that will facilitate their activities. However, this slow
development can be short-circuited by critical events or by a group's decision to change norms. Most norms develop in
one or more of four ways:
(1) explicit statements by supervisors or coworkers
(2) critical events in the group's history
(3) primacy, or by virtue of their introduction early in the group's history
(4) carryover behaviors from past situations
Why are group norms enforced? The most important reason is to ensure group survival. They are also enforced to simplify
or make predictable the expected behavior of group members. That is, they are enforced to help groups avoid
embarrassing interpersonal problems, to express the central values of the group, and to clarify what is distinctive about it.
GROUP DECISION MAKING
MEANING
Group decision making is a type of participatory process in which multiple individuals acting collectively, analyze problems
or situations, consider and evaluate alternative courses of action, and select from among the alternatives a solution or
solutions. The number of people involved in group decision-making varies greatly, but often ranges from two to seven. The
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individuals in a group may be demographically similar or quite diverse. Decision-making groups may be relatively informal
in nature, or formally designated and charged with a specific goal. The process used to arrive at decisions may be
unstructured or structured. The nature and composition of groups, their size, demographic makeup, structure, and
purpose, all affect their functioning to some degree. The external contingencies faced by groups (time pressure and
conflicting goals) impact the development and effectiveness of decision-making groups as well. In organizations many
decisions of consequence are made after some form of group decision-making process is undertaken. However, groups
are not the only form of collective work arrangement. Group decision-making should be distinguished from the concepts of
teams, teamwork, and self managed teams. Although the words teams and groups are often used interchangeably,
scholars increasingly differentiate between the two. The basis for the distinction seems to be that teams act more
collectively and achieve greater synergy of effort. Katzenback and Smith spell out specific differences between decision
making groups and teams:
 The group has a definite leader, but the team has shared leadership roles
 Members of a group have individual accountability; the team has both individual and collective accountability.
 The group measures effectiveness indirectly, but the team measures performance directly through their collective work
product.
 The group discusses, decides, and delegates, but the team discusses, decides, and does real work.
GROUP DECISION MAKING TECHNIQUES
There are many methods or procedures that can be used by groups. Each is designed to improve the decision-making
process in some way. Some of the more common group decision-making methods are brainstorming, dialetical inquiry,
nominal group technique, and the Delphi technique.
Brainstorming
Brainstorming involves group members verbally suggesting ideas or alternative courses of action. The "brainstorming
session" is usually relatively unstructured. The situation at hand is described in as much detail as necessary so that group
members have a complete understanding of the issue or problem. The group leader or facilitator then solicits ideas from
all members of the group. Usually, the group leader or facilitator will record the ideas presented on a flip chart or marker
board. The "generation of alternatives" stage is clearly differentiated from the "alternative evaluation" stage, as group
members are not allowed to evaluate suggestions until all ideas have been presented. Once the ideas of the group
members have been exhausted, the group members then begin the process of evaluating the utility of the different
suggestions presented. Brainstorming is a useful means by which to generate alternatives, but does not offer much in the
way of process for the evaluation of alternatives or the selection of a proposed course of action. One of the difficulties with
brainstorming is that despite the prohibition against judging ideas until all group members have had their say, some
individuals are hesitant to propose ideas because they fear the judgment or ridicule of other group members. In recent
years, some decision-making groups have utilized electronic brainstorming, which allows group members to propose
alternatives by means of e-mail or another electronic means, such as an online posting board or discussion room.
Members could conceivably offer their ideas anonymously, which should increase the likelihood that individuals will offer
unique and creative ideas without fear of the harsh judgment of others.
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Dialetical inquiry
Dialetical inquiry is a group decision-making technique that focuses on ensuring full consideration of alternatives.
Essentially, it involves dividing the group into opposing sides, which debate the advantages and disadvantages of
proposed solutions or decisions. A similar group decision-making method, devil's advocacy, requires that one member of
the group highlight the potential problems with a proposed decision. Both of these techniques are designed to try and
make sure that the group considers all possible ramifications of its decision.
Nominal group technique
The nominal group technique is a structured decision making process in which group members are required to compose a
comprehensive list of their ideas or proposed alternatives in writing. The group members usually record their ideas
privately. Once finished, each group member is asked, in turn, to provide one item from their list until all ideas or
alternatives have been publicly recorded on a flip chart or marker board. Usually, at this stage of the process verbal
exchanges are limited to requests for clarification—no evaluation or criticism of listed ideas is permitted. Once all
proposals are listed publicly, the group engages in a discussion of the listed alternatives, which ends in some form of
ranking or rating in order of preference. As with brainstorming, the prohibition against criticizing proposals as they are
presented is designed to overcome individuals' reluctance to share their ideas. Empirical research conducted on group
decision making offers some evidence that the nominal group technique succeeds in generating a greater number of
decision alternatives that are of relatively high quality.
Delphi technique
The Delphi technique is a group decision-making process that can be used by decision-making groups when the
individual members are in different physical locations. The technique was developed at the Rand Corporation. The
individuals in the Delphi "group" are usually selected because of the specific knowledge or expertise of the problem they
possess. In the Delphi technique, each group member is asked to independently provide ideas, input, and/or alternative
solutions to the decision problem in successive stages. These inputs may be provided in a variety of ways, such as e-mail,
fax, or online in a discussion room or electronic bulletin board. After each stage in the process, other group members ask
questions and alternatives are ranked or rated in some fashion. After an indefinite number of rounds, the group eventually
arrives at a consensus decision on the best course of action.
ADVANTAGES AND DISADVANTAGES OF GROUP DECISION MAKING
Advantages
Group decision-making, ideally, takes advantage of the diverse strengths and expertise of its members. By tapping the
unique qualities of group members, it is possible that the group can generate a greater number of alternatives that are of
higher quality than the individual. If a greater number of higher quality alternatives are generated, then it is likely that the
group will eventually reach a superior problem solution than the individual. Group decision-making may also lead to a
greater collective understanding of the eventual course of action chosen, since it is possible that many affected by the
decision implementation actually had input into the decision. This may promote a sense of "ownership" of the decision,
which is likely to contribute to a greater acceptance of the course of action selected and greater commitment on the part
of the affected individuals to make the course of action successful.
Disadvantages
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There are many potential disadvantages to group decision-making. Groups are generally slower to arrive at decisions than
individuals, so sometimes it is difficult to utilize them in situations where decisions must be made very quickly. One of the
most often cited problems is groupthink. Irving Janis, in his 1972 book Victims of Groupthink, defined the phenomenon as
the "deterioration of mental efficiency, reality testing, and moral judgment resulting from in-group pressure." Groupthink
occurs when individuals in a group feel pressure to conform to what seems to be the dominant view in the group.
Dissenting views of the majority opinion are suppressed and alternative courses of action are not fully explored. Research
suggests that certain characteristics of groups contribute to groupthink. In the first place, if the group does not have an
agreed upon process for developing and evaluating alternatives, it is possible that an incomplete set of alternatives will be
considered and that different courses of action will not be fully explored. Many of the formal decision-making processes
(e.g., nominal group technique and brain-storming) are designed, in part, to reduce the potential for groupthink by
ensuring that group members offer and consider a large number of decision alternatives. Secondly, if a powerful leader
dominates the group, other group members may quickly conform to the dominant view. Additionally, if the group is under
stress and/or time pressure, groupthink may occur. Finally, studies suggest that highly cohesive groups are more
susceptible to groupthink. Group polarization is another potential disadvantage of group decision-making. This is the
tendency of the group to converge on more extreme solutions to a problem. The "risky shift" phenomenon is an example
of polarization; it occurs when the group decision is a riskier one than any of the group members would have made
individually. This may result because individuals in a group sometimes do not feel as much responsibility and
accountability for the actions of the group as they would if they were making the decision alone. Decision-making in
groups is a fact of organizational life for many individuals. Because so many individuals spend at least some of their work
time in decision-making groups, groups are the subjects of hundreds of research studies each year. Despite this, there is
still much to learn about the development and functioning of groups. Research is likely to continue to focus on identifying
processes that will make group decision-making more efficient and effective. It is also likely to examine how the internal
characteristics of groups (demographic and cognitive diversity) and the external contingencies faced by groups affect their
functioning.
INTERPERSONAL RELATIONSHIP
MEANING
An interpersonal relationship is an association between two or more people that may range from fleeting to enduring. This
association may be based on love, solidarity, regular business interactions, or some other type of social commitment.
Interpersonal relationships are formed in the context of social, cultural and other influences. The context can vary from
family or kinship relations, friendship, marriage, relations with associates, work, clubs, neighborhoods, and places of
worship. They may be regulated by law, custom, or mutual agreement, and are the basis of social groups and society as a
whole.
WORKING ON INTERPERSONAL RELATIONSHIPS IN GROUPS
1. Allow time for introductions.
2. Acknowledge that all members have needs and sensitive feelings.
3. Understand and respect the background and cultural norms of group members; this is especially important if they differ
from your own.
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4. Make accommodations for differences [e.g., language interpreters for multi - cultural groups or logistical support to
meet needs of people with disabilities]
5. Listen actively and non - judgmentally to what each person is saying.
6. Accept that there may be more uncertainty and perhaps anxiety in the meeting process when many types of people
are involved.
7. Beware of your own biases; do not stereotype people.
8. Be honest.
9. Be humble.
10.Show enthusiasm
COMMUNICATION WITHIN GROUPS
Group communication is the messages that are sent and received within any group larger than two through verbal and
non - verbal communication. Verbal communication is any message that is communicated with oral words while non-
verbal communication is every other aspect that sends a message. For example, when the leader of the group makes an
announcement, she / he will verbally communicate the instructions and then may walk by later to check - up on the group.
The walking by is non - verbal communication saying, " I 'm watching."
Some of the points to be considered while communicating within groups. They are as follows.
1. Group communication is significant because it has the ability to either build the group or tear it down.
2. A misconception in group communication is that it is primarily verbal. In actuality, the non - verbal messages sent
within the group can have a greater affect on the morale of the group.
3. It is important to consider delegation in group communication. Using delegation in the communication process helps to
get the message out faster and more efficiently.
4. The function of group communication is to empower and inform the group with one vision and common goal which
increases motivation and productivity.
CONTROL IN GROUPS
Controlling group performance is a close companion of the competency setting the example. The coordination of
individual efforts for collective purpose is externally and internally controlled - by the leader and each individual herself.
Setting the example is a personal, internal manner of control that we hope others will model [when it's positive and
appropriate].
The leader sets the example by doing what he expects other to do:
1. Doing his own job well.
2. Following instructions with little or no supervision.
3. Trying his hardest.
4. Behaving maturely.
5. Showing a positive attitude.

3.3. TEAM BUILDING

DEFINITION OF TEAM
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Team is defined as a small number of people with complementary skills who are committed to a common purpose,
performance goals, and approach for which they hold themselves mutually accountable.
- Katzenbach
and Smith
FEATURES OF A TEAM
Members of a team:
 Are committed to goals they have defined.
 Support one another willingly.
 Trust and support others.
 Offer suggestions and give feedback to other members.
 May disagree but work to resolve differences and reach consensus.
NEED AND SIGNIFICANCE OF TEAMS AT WORK PLACE
 Increased employee satisfaction
 Improved communication
 Organizational flexibility
 Increased employee motivation
 Common commitment to goals
 Expanded job skills
 Higher level of productivity
TEAM BUILDING
MEANING
A team is a group of people working towards a common goal. 'Team Building' is the process of enabling that group of
people to reach their goal.
TEAM BUILDING PROCESS
The following are the steps to be followed in the process of team building.
1. Problem - sensing
At this stage generally most of the members come forward with their arguments as to what the real problems are. The
view may be quite different ranging from the organizational problem, group problems to even personal problems. In
problem identification, the emphasis should be on consensus.
2. Examining differences
The perception of people on an issue differs because of their differing backgrounds, such as their value systems,
personality and attitudes. The perception may be brought to conformity through the process of exercise on perception
which involves a number of psychological exercises particularly on perpetual differences.

3. Giving and receiving feedback

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The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that
such processes may create tense situation in the group often, members report about the painful feelings that they have at
the time of evaluation of their feelings. The discussion should continue until all members of the team have commented.
The feedback should be given to the members about their feelings, about the issue, the way people talk about the issue,
etc. Such feedback generally provides members to evaluate the values but at the same time, also provides opportunity to
understand themselves.
4. Developing interactive skills
The basic objective of this process is to increase the ability among the people as to how they should interact with others
and engage in constructive and negative behaviours.
1. Constructive bahviour
- Building: Developing and expanding the ideas of others.
- Bringing in: Harmonizing, encouraging others to participate.
- Clarifying: Resting, ensuring, understanding, seeking relevant information.
- Innovating: Bringing in new relevant ideas, information, feelings, etc.
2. Negative behaviour
- Over talk: Interrupting, talking together with speaker
- Attacking: Deriding, criticizing person
At the time of discussion of feedback, people themselves take assignments to increase specific constructive behaviours
and decrease negative behaviours. If this process is adopted several times, there is a strong possibility that members may
learn constructive behaviours and leave negative behaviours. This is quite helpful in developing teamwork.
5. Follow - up action
This is the final stage in team building. At this stage, the total team is convened to review what has been learned and to
identify what the next step should be. Follow - up action also helps in overcoming the drawback grouped at the initial
stages of team building. It involves deciding who will take care of each area of the teams responsibilities and who will be
responsible for team projects in a group that has not developed a satisfactory division of responsibility; clarifying and
settling differences in perception concerning responsibility and authority in the team, with complex division of responsibility
and authority among members.
Figure3j: Process of Team Building
T h
e s
e

attempts bring co-operative and supportive feelings among people involved in the team functioning. When this exercise is
undertaken at the initial stage, it contributes positively towards the feelings of the people. However, to encourage and
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sustain such feelings, management should take such actions at regular intervals so that members feel reinforced and
sustain their positive behaviour. Such actions will go a long way in shopping the organizational climate quite conducive to
members for their efficient working.
GUIDELINES FOR TEAM BUILDING
1. Emphasize common interest and values
2. Use ceremonies and Rituals
3. Use symbols to develop identification with the group
4. Encourage and facilitate social interaction
5. Tell people about group activities and achievements
6. Conduct process analysis sessions
7. Conduct alignment sessions
8. Increase incentives for mutual cooperation
QUESTION BANK
TWO MARKS
1. Define Organization Structure.
2. What are the features of good organization structure?
3. Define Group.
4. What are the characteristics of a group?
5. In what ways, informal groups help the organization?
6. Define Group Dynamics.
7. What is meant by Group Decision Making?
8. Brief on communication within groups.
9. Brief on control in groups.
10. Define Team.
11. What is Team Building?
12. What are the guidelines to be followed for team building?
SIXTEEN MARKS
1. What are the steps to be followed in the formation of organization structure?
2. What are the different types of organization structure?
3. What are the different types of group?
4. What are the features of group dynamics?
5. Discuss about the importance of group dynamics in the organization.
6. What are the different of methods of group decision making and discuss about advantages and disadvantages of
group decision making in detail.
7. How to work on interpersonal relationships in group?
8. What are the features of a team and discuss about the significance of teams at workplace?
9. Explain the process of team building.
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85
 UNIT - IV
4. LEADERSHIP AND POWER
4.1. LEADERSHIP
- MEANING
- IMPORTANCE
- LEADERSHIP STYLES
- THEORIES
- LEADERS Vs. MANAGERS
4.2. POWER
- SOURCES OF POWER
- POWER CENTERS
- POLITICS
4.1. LEADERSHIP
MEANING
Leadership is the process of influencing the behaviour of others to work willingly and enthusiastically for achieving
predetermined goals. It is the ability of a leader to induce subordinates to work with confidence and zeal. Leadership
changes potential into reality. It is the final act that brings to success or the potential, i.e., in an organization and its
people. Thus, leadership is the ability to influence a group toward the achievement of goals.
DEFINITION
Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.
- Alan Keith
CHARACTERISTICS OF LEADERSHIP
1. Leadership is a process of influence
2. Leadership is related to a situation
3. Leadership is the function of simulation
4. Leadership gives an experience of helping attain the common objectives
5. Employees must be satisfied with the type of leadership provided
6. There must be followers
7. Working relationship between leader and followers
8. Community of interests
IMPORTANCE OF LEADERSHIP
Leadership is an important function of management which helps to maximize efficiency and to achieve organizational
goals.
The following points justify the importance of leadership in a concern.
1. Initiates action
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Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work
actually starts.
2. Motivation
A leader proves to be playing an incentive role in the concern’s working. He motivates the employees with economic and
non-economic rewards and thereby gets the work from the subordinates.
3. Providing guidance
A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the
subordinates the way they have to perform their work effectively and efficiently.
4. Creating confidence
Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates,
explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the
employees with regards to their complaints and problems.
5. Building morale
Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning
their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities
as they work to achieve goals.
6. Builds work environment
Management is getting things done from people. An efficient work environment helps in sound and stable growth.
Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and
should listen to their problems and solve them. He should treat employees on humanitarian terms.
7. Co-ordination
Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can
be achieved through proper and effective co-ordination which should be primary motive of a leader.
LEADERSHIP STYLES
Leadership style refers to a leader's behavior. It is the result of the philosophy, personality, and experience of the leader.
There are 3 major types of leadership style. They are as follows:
1. Authoritarian / Autocratic Leader
Under the autocratic leadership style, all decision-making powers are centralized in the leader, as with dictators. Leaders
do not entertain any suggestions or initiatives from subordinates. The autocratic management has been successful as it
provides strong motivation to the manager. It permits quick decision-making, as only one person decides for the whole
group and keeps each decision to him/herself until he/she feels it needs to be shared with the rest of the group.
2. Participative / Democratic Leader
The democratic leadership style favors decision-making by the group. Such a leader gives instructions after consulting the
group. They can win the cooperation of their group and can motivate them effectively and positively. The decisions of the
democratic leader are not unilateral as with the autocrat because they arise from consultation with the group members
and participation by them.
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 Figure4a: Leadership styles

I WANT BOTH OF YOU TO.........

[Authoritarian / Autocratic Leader]

LET'S WORK TOGETHER TO SOLVE THIS

[Participative / Democratic Leader]

YOU TWO TAKE OF THE PROBLEM WHILE I GO.........

[Delegate / Free Rein / Laissez Faire Leader]

3. Delegate / Free Rein / Laissez Faire Leader

A free-rein leader does not lead, but leaves the group entirely to itself. Such a leader allows maximum freedom to
subordinates; they are given a free hand in deciding their own policies and methods. Different situations call for different
leadership styles. In an emergency when there is little time to converge on an agreement and where a designated
authority has significantly more experience or expertise than the rest of the team, an autocratic leadership style may be
most effective; however, in a highly motivated and aligned team with a homogeneous level of expertise, a more
democratic or laissez-faire style may be more effective. The style adopted should be the one that most effectively
achieves the objectives of the group while balancing the interests of its individual members.
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Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to stick with one style.
LEADERSHIP THEORIES
Many leadership theories have been suggested since time immemorial. Early leadership theories focused on the
behaviour and qualities of successful leaders where as later theories gave more importance to the role of associates and
followers.
Some of the leadership theories are as follows:
Great Man Theory
According to Great Man theory, a leader is born and cannot be made. This theory believed that leaders are people who
have inborn exceptional qualities and are destined to lead. Here the term “Man” is used since leadership was considered
as a concept that would be primarily dominated by males. Great leaders would arise only when there is an urgent need of
it. It also suggests that leadership qualities are inherent.
Trait Theory
According to Trait theory, few people are born with qualities that are suited to leaderships. People who transform into good
leaders posses right combination of leadership qualities. Through this approach, people with such leadership qualities
could be separated and then people with such qualities could be recruited or selected into leadership positions. This
approach was commonly used in military and is even today used to recruit candidates for commission.
Contingency Theory
This theory focuses on variables that are related to environment and that would determine which style of leadership is
suitable for a particular situation. It says that it is impossible to determine which leadership style will suit best for any
situation. Success depends on qualities of followers and other variables.
Situational Theories
This theory suggests that on the basis of situational variable, leaders should choose the course of action. Diverse styles of
leadership will me more suitable to make certain types of decisions
Behavioral Theories
This theory believes that great leaders are not born but are made. The prime focus of this theory is on actions of leaders.
The focus is not on internal states or mental qualities. This theory believes that people can become leaders through the
process of teaching, learning and observation.
Participative Theory
This theory defines ideal leadership style. An ideal leadership style takes into consideration the input of its associates.
Such leaders encourage contribution and participation from group members. The leader also has the right to say no to any
suggestion of other team member.
Management Theories
This theory gives more importance to the role of organization, supervision and most importantly the group performance.
This theory is based on the system of punishment and reward. Managerial theory is often used in many companies. When
employee’s performance is very good, he or she is given a reward. If the employee’s performance decreases below a
certain level, he or she is punished.
Relationship Theory
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This theory also called Transformational theory focuses on the connections that are formed between followers and
leaders. These leaders inspire and motivate people. They also help group members in case of any difficulty. Such leaders
focus on performance of members of group. These leaders have high moral values.
Path Goal Theory
This theory focuses on what leaders should do to motivate and inspire people so that the employees can perform well.
LEADERS Vs. MANAGERS
“Leadership and managership are two synonymous terms” is an incorrect statement. Leadership doesn’t require any
managerial position to act as a leader. On the other hand, a manager can be a true manager only if he has got the traits of
leader in him. By virtue of his position, manager has to provide leadership to his group. A manager has to perform all five
functions to achieve goals, i.e., Planning, Organizing, Staffing, Directing, and Controlling. Leadership is a part of these
functions. Leadership as a general term is not related to managership. A person can be a leader by virtue of qualities in
him. For example: leader of a club, class, welfare association, social organization, etc. Therefore, it is true to say that, “All
managers are leaders, but all leaders are not managers.” A leader is one who influences the behavior and work of others
in group efforts towards achievement of specified goals in a given situation. On the other hand, manager can be a true
manager only if he has got traits of leader in him. Manager at all levels are expected to be the leaders of work groups so
that subordinates willingly carry instructions and accept their guidance. A person can be a leader by virtue of all qualities
in him.
Leaders and Managers can be compared as follows:
 The manager administers; the leader innovates.
 The manager is a copy; the leader is an original.
 The manager maintains; the leader develops.
 The manager focuses on systems and structure; the leader focuses on people.
 The manager relies on control; the leader inspires trust.
 The manager accepts reality; the leader investigates it.
 The manager has a short-range view; the leader has a long-range perspective.
 The manager asks how and when; the leader asks what and why.
 The manager has his or her eye always on the bottom line; the leader has his or her eye on the horizon.
 The manager imitates; the leader originates.
 The manager accepts the status quo; the leader challenges it.
 The manager is the classic good soldier; the leader is his or her own person.
 The manager does things right; the leader does the right thing.
4.2. POWER
MEANING
The term 'Power' may be defined as the capacity to exert in influence over others. If a person has power, it means that he
is able to influence the behaviour of other individuals. The essence of power is control over the behaviour of others. "In
one's role as a supervisor, a manager's power may be seen as the ability to cause subordinates to do what the manager
wishes him to do". A manager's power may be measured in terms of the ability to:
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1] Give rewards
2] Promise rewards
3] Threaten to withdraw current rewards
4] Withdraw current rewards
5] Threaten punishment, and
6] Punish.
Power is the degree of influence an individual or group has in decision making, without being authorized by the
organization to do so. Power is used not only in getting a certain result achieved but it includes impact on negative
decisions, or the action of not deciding also. Therefore, power is not only one's influence over the decision - making, but
also one's capability of limiting the scope of actual decision - making.
DEFINITION
Power is defined as the ability to influence and control anything that is of value of others.
- Stephen P. Robbins
NATURE OF POWER
1. Power can be potential or enacted.
2. Power represents the capacity, ability or potential to influence the behaviour of other people to achieve a certain goal.
3. Leaders exercise power to accomplish goals of an organization.
4. Leaders have only as much power as others allow them to have.
5. Some times appearing to be powerful is just as important as being powerful.
6. Power is neither completely formal nor informal. It is rather a judicious mixture of two.
IMPORTANCE OF POWER
1. Necessary for coordinated activities
2. Basis for authority and responsibility.
SOURCES OF POWER
Power is a force of influence and authority. Most leaders wield power, but how power is manifested and used often differs
between leaders. Where does a leader get power from? Or do a leader’s followers give it to them? Well it’s both. In this ,
we’ll be looking at the five different sources of power a leader can use, with some advice on when these powers should be
used, and perhaps when not.
The five sources of a leader’s power come from distinctly different sources. Here’s an overview:
1. Expert Power
When a leader has significant domain knowledge/skills. E.g. an expert accountant influences how junior accountants go
about their tasks
Use expert power when:
 You have a genuine expertise in a subject
 You have access to resources within your control who do
Don’t use expert power when:
 You’re unsure of your competence in a subject
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2. Positional Power
Comes when a leader has a legitimately held position of authority. E.g. typically, the CEO of an organization has the
highest positional power
Use positional power when:
 You need something done quickly when you don't have time to explain why
 If a political situation has grown that needs stemming
 Your accountabilities are in serious jeopardy
Don't use positional power when:
 You are feeling impatient or frustrated
 You have purely personal reasons to influence an outcome
 Your values are at odds with someone else's
 You have recently entered a new post with an unfamiliar team
3. Reward Power
Is evident when a leader can give, or take away, a reward. E.g. a leader can influence a follower’s behavior by awarding a
bonus, or taking away perks
Use reward power when:
 You need something done quickly
 Your team needs a motivation boost
 You are asking your followers to go above and beyond their duty
 You want to create friendly competition
Don't use reward power when:
 Resources are scare, so that someone wins, someone loses
 You have doubts about your ability to provide the reward
 They are targeted towards individuals in situations where there are petty jealousies exhibited in your team
4. Coercive Power
This is felt when a leader creates the perception of a threat. E.g. a leader has coercive power if her followers believe that
she will initiate disciplinary action
Use coercive power when:
 You need to ensure standards and policies are adhered to
 There is a significant risk in a situation
 You have no other opinion
Don't use coercive power when:
 You have the ability to apply other power. Rather, use positional power if you must.
 You won't be around to put things right, afterwards
 You are feeling frustrated and emotional
5. Personal Power
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Influence gained by persuasion. E.g. a manager may have to rely on nothing more than a friendly please and thank you
for an employee to perform a task
Use personal power when:
 There is a strong relationship between you and your followers
 Your desired outcomes does not conflict with your followers values, or the values of your organization
 Your desired outcome is flexible
Don't use personal power when:
 There is not a strong relationship between you and your followers
It is perhaps only personal power that can be used singularly, but this comes at a cost in terms of the time and resources it
takes for you to build relationships. All other forms of power should be used in conjunction with each other. It is unlikely
that you can use the same mix of power for every situation. The skill of leadership is knowing when to use these powers
and when not too. Judgment is key. Like any other skill, using power must be practiced, and we will make mistakes. Don’t
be afraid! Let us learn from these mistakes.
POWER CENTERS
Power Center is a person who is in close vicinity of higher management and whom management trusts and takes
feedback from. It is very important to understand the actual people who are powerful in the company. These people may
not be on very important designations but may be the source of information to the boss. These people may not be
necessarily being the part of your department. They must be other department heads, relatives or friends of the boss.
Make a list of such people. You must not be astonished that this list may consists of the people like driver of your boss,
the head guard of the company, if it is a small company or medium size company. It is very likely that these people are
open to higher power centers and may give a favourable opinion about you are whenever your reference comes - or
whenever your boss asks an opinion about you.
Power centers, are often defined by organizational charters or by laws. In case of schools, position status, authority
structures, and rules and regulations prescribe the power centers. These could be central executive, regional office,
district office, principal, head teachers, class coordinators, and classrooms teachers. Each of these individuals makes
decisions that guide the decisions of others. Moreover, because of the positions they hold, others accept the fact that they
have a right to do so. For example, teachers expect the principals to assign them to classrooms, and students expect
teachers to make the best out of classroom time, rather than giving homework assignments. When individuals act in such
ways and their directions are followed, we can say they are exercising authority. Authority relationships are essential
guides to behaviour in schools as they are in other organizations. The concept of authority involves not only giving orders
or directions but also the acceptance of such orders, by those within the organization as legitimate and binding.
HOW TO USE POWER CENTERS?
There are two ways to use these people.
1. You should use to advertise your achievements and your plan to these people in a very discrete manner, which does
not disclose the full plan but gives only hints. Discuss what you are doing and what you will do in future with these people.
Never ever criticize the company or your boss in front of these people.
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2. Pass on the negative information about your competitors to these people and thus defame your competitors. Tell them
how others are giving loss to company.
THINGS TO REMEMBER WHILE TALKING WITH THESE PEOPLE
 Identify and select more than one power center
 Selectively disclose the things
 Make them feel important
 Never criticize the company or your boss
 Develop deeper relations with these people
POLITICS
MEANING
Politics relates to the way a person is able to get power over others and the way in which he uses power over others. In
other words, it is the process whereby power is acquired and exercised upon others to influence their behaviour or to get
things done. Thus, it is a method of operating in order to influence the behaviour of others.
DEFINITION
Politics in organization are 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.
- Stephen
P Robbins
FEATURES OF POLITICS
 Political behaviour involves some kind of power either directly or indirectly. Power can be exercised by those who are
in formal positions and enjoy authority. It can also be influenced by other persons close to those who hold formal
authority.
 Politics involves behaviour that is self - serving. It suggests that either organizational resources are used for personal
benefits or benefits to be given to one person are given to another. In both the cases, the decision is not rational from
organization's point of view.
 Politics takes place when an individual recognises that achievement of his goals is influenced by the behaviour of
others. In such a case, politicking involves the elimination of adversaries by the influential manueuvers of a member of
the organization.
 All self - serving behaviours which do not involve use of power or threat of use of power cannot be termed as politics.
For example, an employee's asking for a rise in pay is not political behaviour, but the use of threat to unionize to obtain
a pay rise amounts to political behaviour.
FACTORS INFLUENCING POLITICAL BEHAVIOUR
A number of factors are responsible for political behaviour. These factors are grouped into individual factors and
organizational factors.
1. Individual factors
 High self - monitors
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Skilled in political behaviour
 High Machiavellian personality
Proactive and prone to manipulate situation in their favour
 Investment in organization
Investment in terms of expectations forces the individual to use illegitimate means.
 Perceived job alternatives
2. Organizational factors
 Reallocation of resources
The reallocation or resources is necessary when the resources available either increase or decrease. These situations
force the individuals to resort to politics.
 Promotion opportunities
Normally, the opportunities for promotion or advancement are lesser than the candidates expecting promotion. This
situation leads to competition and thereby political behaviour by the competing candidates.
 Low trust
Low trust in organization leads to tight control which in turn makes the subordinates to behave illegitimately.
 Role ambiguity
The unclear expectation from the employee makes him to act politically.
 Unclear performance appraisal system
Employee does not know what to do? And to what level of perfection he has to do? etc., under the unclear performance
appraisal system. This situation creates ambiguity and leads to political behaviour.
 Zero - sum reward system
The win - lose approach in reward allocation is called zero - sum approach. People perceive that they won double if others
lose. Therefore, this situation makes people take the chance, even through illegitimate means.
 Democratic decision making
The traditionally autocratic managers cannot make the decisions democratically in its true sense. Therefore, they refer the
issues to committees and commissions to offer recommendations, and finally they make the decisions as they desire.
 High performance pressures
High performance pressures make the people to find short-cuts and politics to show superfluously high performance or
through window - dressing.
 Self - serving senior managers
The political behaviour by the top management with rewards encourages the people at the lower level to resort to politics.
TACTICS USED TO GAIN POLITICAL POWER
 Bargaining or Trade - off
It refers to negotiation of a quid pro quo [this for that] agreement between two groups. Each party to the conflict offers
some benefits to the other so that there can be some stability in their relationship.
 Competition
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The resources at the command of the organization are limited. Various groups compete with each other to have a greater
share of such resources. For this, they try to influence the criteria used as the basis for resource distribution in the form of
funds, space, support staff, etc.
 Co-optation
Co-optation occurs when a group gives some of its important positions to members of other groups or includes them in its
policy - making committees.
 Coalition
It is a temporary alliance of a number of individuals or groups who combine their efforts and energy for their common
goals. For example, National Democratic Government was formed in India on the basis of coalition arrangement between
a numbers of political parties. By forming a coalition, the members are able to increase their power or area of influence.
 Pressure
It is a hostile method of gaining power. For example, a trade union might threaten a strike or slow down if the
management does not accept its demands. In a similar vein, the management might threaten a lock - out in the factory if
the trade union does not accept its terms.
 Control over information
It is very much a part of political behaviour to control the dissemination of critical information to others. Releasing good or
bad news when it is likely to have its fullest impact can promote someone's self interest and may ruin the hopes of others.
 Control over communication channels
People who are in lower level positions but have some control over the channels of communication can acquire
considerable political power. For example, the secretary may have considerable power in deciding who sees the boss and
who doesn't at a given time.
LEVELS OF POLITCAL ACTION IN ORGANIZATIONS
Figure4b: Levels of political action in organizations

QUESTION BANK
TWO MARKS
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1. Define Leadership.
2. What are the characteristics of leadership?
3. Who is a Leader?
4. Who is a Manager?
5. Define Power.
6. Define Power Center.
7. Define Politics.
8. What are the features of politics in organization?
9. What are the different tactics used to gain political power?
10. What are the three levels of political action in organizations?
SIXTEEN MARKS
1. Discuss about the importance of leadership in the organization.
2. What are the major leadership styles?
3. Discuss about the theories of leadership.
4. Differentiate between Leader and Manager.
5. Discuss about the nature and importance of power in the organization.
6. What are the different sources of power?
7. How to use Power Centers?
8. What are the different factors influencing political behaviour in the organizational?

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