ORGANISATIONAL BEHAVIOUR

Unit 1
INTROCUTION TO ORGANISATIONAL BEHAVIOUR
The study of Organizational Behavior (OB) is very interesting and challenging too. It is related to individuals,
group of people working together in teams. The study becomes more challenging when situational factors
interact. The study of organizational behavior relates to the expected behavior of an individual in the
organization.
No two individuals are likely to behave in the same manner in a particular work situation. It is the predictability
of a manager about the expected behavior of an individual. There are no absolutes in human behavior. It is the
human factor that is contributory to the productivity hence the study of human behavior is important. Great
importance therefore must be attached to the study.

Researchers, management practitioners, psychologists, and social scientists must understand the very
credentials of an individual, his background, social framework, educational update, impact of social groups and
other situational factors on behavior.
Managers under whom an individual is working should be able to explain, predict, evaluate and modify human
behavior that will largely depend upon knowledge, skill and experience of the manager in handling large group
of people in diverse situations. Preemptive actions need to be taken for human behavior forecasting.
The value system, emotional intelligence, organizational culture, job design and the work environment are
important causal agents in determining human behavior. Cause and effect relationship plays an important role
in how an individual is likely to behave in a particular situation and its impact on productivity.
An appropriate organizational culture can modify individual behavior. Recent trends exist in laying greater stress
on organizational development and imbibing a favorable organizational culture in each individual. It also
involves fostering a team spirit and motivation so that the organizational objectives are achieved.
There is a need for commitment on the part of the management that should be continuous and incremental in
nature.

DEFINITIONS OF ORGANISATIONAL BEHAVIOUR (OB) by various individuals.

In words of K Aswathappa, “OB is the study of human behaviour in organisational setting, of the interface
between human behaviour and organisation and of the organisation itself.”
In words of Stephen P. Robbins, “OB is a field of study that investigates the impact that individuals, groups
and structures have on behaviour within organisations for the purpose of applying such knowledge towards
improving an organisation’s effectiveness.”
According to L. M. Prasad, “Organisational behaviour can be defined as the study and application of knowledge
about human behaviour related to other elements of an organisation such as structure, technology and social
systems.”
According to Davis and Newstram, “Organisational behaviour is the study and application of knowledge about
how people act within organisations.”
According to Fred Luthans, “Behaviour is directly concerned with the understanding, prediction and control
of human behaviour in organisations.”
In words of John Newstram and Keith Devis, “Organisational behaviour is the study and application of
knowledge about how people as individuals and as groups act within organisations. It strives to identify ways in
which people can act more effectively.”
OB is the study of individual behaviour in isolation, when in group and as a part of an
organisation. The study of individual behaviour only, would be incomplete because behaviour is affected by
the people surrounding us as well as by the organisation, in which we work. Studying only individuals or only
organisations would be of no use. It is essential to study both simultaneously.

By analyzing the above definitions, we can define OB as a behavioural Science that states about :

• Nature of Man
• Nature of the Organization
• Knowledge of human would be useful in improving an organization’s effectiveness.

Why study OB?

Study of OB helps in understanding:-
i. Why people behave in a particular way?
ii. Why one person is more effective than the other?
iii. Why one group is more effective than the other?
iv. Why one person is more effective in one organisation as compared to the other organisations?

Organisational Behaviour – Scope

The scope of the organizational behavior is as under:
• Impact of personality on performance
• Employee motivation
• Leadership
• How to create effective teams and groups
• Study of different organizational structures
• Individual behavior, attitude and learning
 • Perception
• Design and development of effective organization
• Job design
• Impact of culture on organizational behavior
• Management of change
• Management of conflict and stress
• Organizational development
• Organizational culture
• Transactional analysis
• Group behavior, power and politics
• Job design
• Study of emotions

ORAGNISATIONAL BEHAVIOUR – NATURE:

The nature it has acquired is identified as follows:
1. A Separate Field of Study and Not a Discipline Only:
By definition, a discipline is an accepted science that is based on a theoretical foundation. But, O.B. has a multi-
interdisciplinary orientation and is, thus, not based on a specific theoretical background. Therefore, it is better
reasonable to call O.B. a separate field of study rather than a discipline only.
2. An Interdisciplinary Approach:
Organizational behaviour is essentially an interdisciplinary approach to study human behaviour at work. It tries
to integrate the relevant knowledge drawn from related disciplines like psychology, sociology and anthropology
to make them applicable for studying and analysing organizational behaviour.
3. An Applied Science:
The very nature of O.B. is applied. What O.B. basically does is the application of various researches to solve the
organizational problems related to human behaviour. The basic line of difference between pure science and O.B.
is that while the former concentrates of fundamental researches, the latter concentrates on applied researches.
O.B. involves both applied research and its application in organizational analysis. Hence, O.B. can be called both
science as well as art.
4. A Normative Science:
Organizational Behaviour is a normative science also. While the positive science discusses only cause effect
relationship, O.B. prescribes how the findings of applied researches can be applied to socially accepted
organizational goals. Thus, O.B. deals with what is accepted by individuals and society engaged in an
organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is normative as well that is well
underscored by the proliferation of management theories.
5. A Humanistic and Optimistic Approach:
Organizational Behaviour applies humanistic approach towards people working in the organization. It, deals
with the thinking and feeling of human beings. O.B. is based on the belief that people have an innate desire to be
independent, creative and productive. It also realizes that people working in the organization can and will
actualise these potentials if they are given proper conditions and environment. Environment affects performance
or workers working in an organization.
6 A Total System Approach:
The system approach is one that integrates all the variables, affecting organizational functioning. The systems
approach has been developed by the behavioural scientists to analyse human behaviour in view of his/her socio-
psychological framework. Man’s socio- psychological framework makes man a complex one and the systems
approach tries to study his/her complexity and find solution to it.

ORGANISATIONAL BEHAVIOUR – CHARACTERISTICS

Some of the important characteristics of organisational behaviour are discussed as follows:

1. Organisational behaviour is a rational thinking, not an emotional feeling about people. The major goals of
organisational behaviour are to explain and predict human behavioural in organisations. It is action-oriented
and goal-directed.

2. Organisational behavioural seeks to balanced human and technical values at work. It seeks to achieve
productivity by building and maintaining employee’s dignity, growth and satisfaction, rather than at the expense
of these values.

3. Organisational behaviour integrates behavioural sciences. Many of its core concepts are borrowed from others
fields and discipline like social psychology, sociology, and anthropology, etc.

4. Organisational behaviour is both a science and an art, the knowledge about human behaviour in organisations
leans towards being science. Modern organisational behaviour is, at once, empirical, interpretative, and critical.
It is an interpretative science in the pursuit of knowledge and meaning.
The basic purpose is to make meaningful the facts of organisational life. Modern OB is an optic perspective; a
process for looking at events, a way of life. It has empirical facts, and interesting interpretations and powerful
paradigms.
However it is an inaccurate science to provide specific answers to specific organisational problems. As such very
little can be prescribed to consistently predict relationships between a variable on broad scale. The skills in
applying the knowledge clearly lean towards being art.

5. Organisational behaviour exists at multiple like levels. Behaviour occurs at the individual, the group, and the
organisational systems levels. Behaviour that is attributable to each of these levels can be both identified and
isolated but at the same time these three levels interact with each other and OB-being affected by the behaviour
of individuals, group level behaviour is affected by the organisational level phenomena and so on.
6. Organisational behaviour does not exist in vacuum. Organisations are made up of both social and technical
components and therefore characterized as social-technical systems. The operational implication of this is that
any approach of looking at behaviour must also take into account the technical component of organisation
especially such issues as the nature of work and the technology. Organisations at the same time, must take into
account the constructs of the working environment, for example, the extent to which the market and the product
is changing.

ORGANISATIONAL BEHAVIOUR - LEVELS

OB can be studied at various levels within an organization, and each level has a unique set of roles,
responsibilities, and goals.
Following points discuss the three levels briefly:
1. Individual Level – Deals with the concepts at the individual level. Examples of individual-level concepts are
perception, personality, learning, motivation, and attitude.
2. Group Level – Deals with the concepts at the group level. Examples of group-level concepts are team,
conflict, leadership, power, and politics. Group-level concepts may include how groups are formed, how to make
effective teams, how individually and collectively the group activities can be improved, how to motivate
employees, and which type of group would be suitable for a particular assignment.
3. Organizational Level – Deals with the concepts at the organizational level. Examples of organizational-
level concepts are change management and organizational culture. Other topics discussed at organizational level
include the concept of organization, different organizational models, and organizational change along with its
impact and implementation. The working conditions and stress management are also discussed at the
organizational level.

ORGANISATIONAL BEHAVIOUS –
IMPORTANCE/SIGNIFICANCE
• OB provides a road map to our lives in organizations
People bring to their work place their hopes and dreams as well as their fears and frustrations. Much of the time,
people in organizations may appear to be acting quite rationally, doing their fair share of work, and doing about
their tasks in a civil manner. Suddenly, a few people appear distracted, their work slips, and they even get
withdrawn. Worse still, one may find someone taking advantage of others to further his or her personal interest.
Such a range of human behaviors makes life in organizations perplexing. But those who know what to look for
and have some advance ideas about how to cope with pressures are more likely to respond in ways that are
functional, less stressful, and even career-advancing. Therefore, OB need to map out organizational events so
that employee can function in a more secure and comfortable environment.

• A Manager in a Business Establishment is concerned with Getting Things Done Through

Delegation
He or she be successful when he or she can motivate subordinates to work for better results. OB will help the
manager understand the basis of motivation and what he or she should do to motivate subordinates.
 • The field of OB is useful for improving Cordial Industrial/Labour Relations
If an employee is slow in his/her work, or if his/her productivity is steadily declining, it is not always because of
a poor work environment. Often the indifferent attitude of the boss makes the worker lazy. Similarly, reluctance
of the management to talk to union leaders about issues might provoke them to give a strike call.
In other words, relations between management and employees are often strained for reasons which are personnel
issues, not technical. Human problems need to be tackled humanely. OB is very useful to understand the cause
of the problem, predict its course of action, and control its consequences. The field of OB serves as the basis for
human resource management.

• OB helps in motivating employees

OB helps manager to motivate the employees bringing a good organizational performance automatically that
leads to job satisfaction. It helps managers to apply appropriate motivational tools and techniques in accordance
with the nature of individual employees.

• OB helps effective utilization of human resources

OB helps managers to manage the people’s behaviour and the organization effectively. It enables managers to
inspire and motivates employees towards high productivity and better results.
• Attaining Organizational Effectiveness:
Refers to a process that acts as an indicator or a scorecard for an organization’s performance. The analysis of
performance can be done from individual and organizational perspectives.
• Sustaining Changes in Business Environment:
Refers to the need of an organization to accept the changes occurring in the business environment. The dynamic
external environment increases the importance of OB as a field of study, because it affects the internal
environment as well, thus, forcing an organization to accept changes as survival strategy.
• Balancing Increase in Capitalism:
Refers to the economic system that is represented by private ownership of capital and means of production. The
features of capitalism make the study of OB very important because of increasing monopolists and capital-
intensive industries.
• Surviving Intense Competition:
Requires great efforts on part of an organization. You should note that an organization can face fierce competition
by adopting various policies, such as capturing market share and developing human resource. The study of OB
helps the organization to develop the human resource by molding their behavior for the benefits of organization.
• Managing Global Influences:
Refers to controlling the effects of privatization, liberalization, and globalization on organizations. Global
influences make the workforce of an organization more diverse in nature, thus makes the study of OB more
important.
• Fulfilling Human Needs:
Refers to managing and enhancing the skills of employees.
For developing these skills, a manager must be capable of:
i. Understanding human aspirations
ii. Building coordination among employees
iii. Imparting timely training to employees
iv. Motivating them so that they willingly utilize their abilities towards attainment of organizational goals
v. Communicating the goals successfully to employees so that they would know what is expected of them
vi. Introducing new and innovative ideas
Employees also expect the organization to understand their needs and provide them with right impetus to grow
both financially and professionally. Thus, knowledge of OB helps the management to understand and fulfill these
needs of employees.
• Managing the Complexity in the Structure of Organizations:
Refers to controlling the complexity that may arise in the organizational structure due to dynamic business
environment. As an organization grows, its structure becomes complex because its command chain expands, the
scope of authority becomes multifaceted, and the responsibilities of employees keep changing.
• Managing the Presence of Labor Unions:
Refers to monitoring and controlling the activities of labor unions. These unions persuade the management of
an organization to give importance to human relations. Therefore, organizations lay emphasis on the study of
OB to take care of human aspects.

Application of OB in Management
1) Responding to Globalization
Organization in recent days has changed the style of working and tries to spread worldwide. Trapping new market
place, new technology or reducing cost through specialization or cheap labour are few of the different reasons
that motivates organizations to become global.

2) Managing Workforce Diversity

The increasing heterogeneity of organizations with the inclusion of different groups. Whereas globalization
focuses on differences among people from different countries.
"Workforce diversity has important implications for management practice. Managers will need to
shift their philosophy from treating everyone alike to recognizing differences and responding to those
differences in ways that
will ensure employee retention and greater productivity while, at the same time, not discriminating".

3) Improving Quality and Productivity

a) Total Quality Management (TQM)
It is a philosophy of management that is driven by the constant attainment of customer satisfaction
through the continuous improvement of all organizational processes. 1. Intense focus on the customer

2. Concern for continuous improvement

3. Improvement in the quality of everything the organization does
4. Accurate measurement
5. Empowerment of employees.

b) Reengineering
Reengineering: Reconsiders how work would be done and the organization structured if they
were being created from scratch. "It asks managers to reconsider how work would be done and their
organization structured if they were starting over".

4) Improving people skills

 It will help management to better plan and respond to changes in the workplace. employee relationship
is also showing change in the modern era. Employer Employers are no more autocrats and participative
style of leadership welcomed. Flexible working hours and increased is authority motivates employees
to perform to their best. Management now welcomes upward communication and participation of lower
level employees in the decision making process.

5) Stimulating Innovation and Change

"Today's successful organizations must foster innovation and master the art of change or they'll become
candidates for extinction. An organization's employees can be the impetus for innovation and change or they
can be a major stumbling block. The challenge for managers is to stimulate employee creativity and tolerance for
change.

6) Work-life Balance
Achieving a work-life balance between work and other important aspects of life is a big challenge today in every
organization. It can be tough to make time for family and work. Hence, Employers can help employees to achieve
work-life balance by instituting policies, procedures, actions, and expectations that enable them to pursue more
balanced lives, such as flexible work schedules, company sponsored family events and activities etc.

7) Improving People Skills

Possessing people skills is essential to have success in todays’ organizations. Employees needs to improve their
skills through a little effort and showing basic common courtesy in their business dealings like being polite,
avoiding conflict, listening, appreciating etc. On the other hand employers’ should also concentrate more on
training employees with this above context.

Management
Management is the act of getting people together to accomplish desired goals and objectives using available
resources efficiently and effectively.
Managing is one of the most important activities of human life. To accomplish aims that could not be achieved
individually, people started forming groups. Managing has become essential to ensure the coordination of
individual efforts. Management applies to all kinds of organizations and to managers at all organizational levels.
Principles of management are now used not only for managing business but in all walks of life viz., government,
military, social and educational institutions. Essentially, management is same process in all forms of
organization. But it may vary widely in its complexity with size and level of organization. Management is the life
giving element of any organization.
Definitions suggested by some of the management experts are presented
below:
Henri Fayol: “Management is conduct of afffairs of business, moving towards its objective through a
continuous process of improvement and optimization of resources”.
Koontz: “Management is the process of designing and maintaining an environment in which individuals,
working together in groups, efficiently accomplish selected aims”.
Mary Parker Follett: “Management is the art of getting things done through people”.
George R. Terry: “Management is a process consisting of planning, organizing, actuating and controlling,
performed to determine and accomplish the objectives by use of people and resources”.
ILO: “Management is the complex of continuously coordinated activity by means of which any undertaking
administration/public or private service conducts its business”.
Lawrence A. Appley: “Management is guiding human and physical resources into a dynamic, hard hitting
organization until that attains its objectives to the satisfaction of those served and with a high degree of morale
and sense of attainment on the part of those rendering the service”.

CHARACTERISTICS OF MANAGEMENT

FUNCTIONS OF MANAGEMENT
Planning
• Look ahead and chart out future course of operation
• Formulation of Objectives, Policies, Procedure, Rules, Programmes and Budgets
Organizing
• Bringing people together and tying them together in the pursuit of common objectives.
• Enumeration of activities, classification of activities, fitting individuals into functions, assignment
of authority for action.

Directing
• Act of guiding, overseeing and leading people.
• Motivation, leadership, decision making.
Controlling
 • Laying standards, comparing actuals and correcting deviation-achieve objectives according to
plans.

Co-ordination
• Synchronizing and unifying the actions of a group of people.
Budgeting
• A budget is an organisational plan in financial terms.
Reporting
• Management reporting is a detailed report of the actual year to date position and a full year
forecast. It includes a Profit and Loss statement, cash flow balances and a Balance Sheet.

Roles of management
Interpersonal and Leadership Roles

 Figurehead – includes symbolic duties which are legal or social in nature.

 Leader – includes all aspects of being a good leader. This involves building a team, coaching the members,
motivating them, and developing strong relationships.

 Liaison – includes developing and maintaining a network outside the office for information and assistance.
Informational Roles

 Monitor – includes seeking information regarding the issues that are affecting the organization. Also, this
includes internal as well as external information.

 Disseminator – On receiving any important information from internal or external sources, the same needs
to be disseminated or transmitted within the organization.

 Spokesperson – includes representing the organization and providing information about the organization
to outsiders.
Decisional/ Decision making Roles

 Entrepreneur – involves all aspects associated with acting as an initiator, designer, and also an encourager
of innovation and change.

 Disturbance handler – taking corrective action when the organization faces unexpected difficulties which
are important in nature.

 Resource Allocator – being responsible for the optimum allocation of resources like time, equipment,
funds, and also human resources, etc.

 Negotiator – includes representing the organization in negotiations which affect the manager’s scope of
responsibility.

SKILLS OF MANAGEMENT
 1. Technical Skills

Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques
to achieve their objectives. These skills not only involve operating machines and software, production tools, and
pieces of equipment but also the skills needed to boost sales, design different types of products and services, and
market the services and the products.

2. Conceptual Skills

These involve the skills managers present in terms of the knowledge and ability for abstract thinking and
formulating ideas. The manager is able to see an entire concept, analyze and diagnose a problem, and find
creative solutions. This helps the manager to effectively predict hurdles their department or the business as a
whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’ ability to interact, work or relate
effectively with people. These skills enable the managers to make use of human potential in the company and
motivate the employees for better results.

Other skills required for better management are:-

 Leadership skill
 Communication skill
 Organisation and delegation.
 Forward planning and strategic thinking.
 Problem solving and decision-making.
 Commercial awareness.
 Mentoring.

Unit II

PERSONALITY
The word personality has arrived from a Greek word “persona”, which means Mask. Personality is the
combination of characeristics or qualities that forms a persons unique identity. Every individual
has a unique, personal and major determinant of his behavior that defines his/her personality.
Personality is the sum of the ideas, attitudes and values of a person which determine his role in society and form
an integral part of his character.
Personality can be described as the collective qualities, characteristics, disposition and values of a person which
distinguish him or her from others, and which will affect the manner he/she reacts toward or interacts with other
people and his/her environment.

To sum up we would say that:

(i) Personality is not related to bodily structure alone. It includes both structure and dynamics
(ii) Personality is an indivisible unit.
(iii) Personality is neither good nor bad.
(iv) Personality is not a mysterious phenomenon.
(v) Every personality is unique.
(vi) Personality refers to persistent qualities of the individual. It expresses consistency and regularly.
(vii) Personality is acquired.
(viii) Personality is influenced by social interaction. It is defined in terms of behaviour.

Personality is basically influenced by two major features:-

Inherited Characteristics
Learned Characteristics

Inherited Characteristics :- Such characteristics which one acquires from fathers and forefathers or we can the features
which one have since birth. Example:- Physical features, Religion, Race etc.
Learned Characteristics:- The characteristics an individual acquires by observing, practicing, and learning from others
and the surroundings is known as learned characteristics. Examples:- Attitude, Values Perception etc.

Determinants of Personality
The determinants of personality can be grouped in five broad categories:
1. Biological Factors
2. Cultural Factors
3. Family Factors
4. Social Factors
5. Situational Factors

 Biological Factors
The study of the biological contributions to personality may be studied under three heads:-

Heredity
Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness,
sex, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that
are considered to be inherent from one’s parents.
The heredity approach argues that the ultimate explanation of an individual’s personality is the molecular
structure of the genes, located in the chromosomes.

Brain
The second biological approach is to concentrate on the role that the brain plays in personality. The psychologists
are unable to prove empirically the contribution of the human brain in influencing personality.

Preliminary results from the electrical stimulation of the brain (ESB) research give an indication that a
better understanding of human personality and behaviour might come from the study of the brain.
Physical Features
A vital ingredient of the personality, an individual’s external appearance, is biologically determined. The fact
that a person is tall or short, fat or skinny, black or white will influence the person’s effect on
others and this in turn, will affect the self-concept.

 Cultural Factors
Among the factors that influence personality formation is the culture in which we are raised, early
conditioning, norms prevailing within the family, friends and social groups and other miscellaneous
experiences that impact us.
The culture largely determines attitudes towards independence, aggression, competition, cooperation
and a host of other human responses.

 Family Factors
Whereas the culture generally prescribes and limits what a person can be taught, it is the family, and later the
social group, which selects, interprets and dispenses the culture. Thus, the family probably has the most
significant impact on early personality development.

A substantial amount of empirical evidence indicates that the overall home environment created by the
parents, in addition to their direct influence, is critical to personality development.
The parents play an especially important part in the identification process, which is important to the person’s
early development.

 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.

 Situational Factors

These factors do not literally create and shape up an individual’s personality , situational factors do alter a
person’s behavior and response from time to time. The situational factors can be commonly observed when a
person behaves contrastingly and exhibits different traits and characteristics. For example, a person’s behavior
will be totally different when he is in office, in front of his boss, when compared to his hangout with old friends
in a bar.

In this way, situational factors impact a personality in a significant way. They often bring out the traits of a person
that are not commonly seen.

MEASURMENT OF PERSONALITY
The top four methods used for measuring the personality of an individual. The methods are:

1. Subjective Methods

2. Objective Methods

3. Projective Methods

4. Psycho-Analytic Methods.
1. Subjective Methods:

(a) Observation:
Observation of behaviour of a person over a long period is one of the techniques of assessing personality traits.

(b) Case Study Method:In this method the case history has to be re-organized and re-written from infancy upto

adulthood. Really speaking, on the basis of this method, the reality of the personality is found out.

(c) Interview: It is a process of communication or interaction in which the interviewee gives the needed

information verbally to the interviewer in a face-to-face situation or one-to-one situation.

(d) Autobiography: Autobiography method is also used to assess personality. The child is asked to write his

own autobiography and certain personality characteristics can be studied from them.

(e) Cumulative Record Card: The cumulative record is a useful and permanent record which includes various

information about the child.

2. Objective Methods:

(a) Rating Scales: Rating scales are used to rate the various personality traits, adjustment, emotions, interests,

attitudes performance on a task.

(b) Check lists: Carefully prepared check list can be employed to collect data about a person.

(c) Controlled Observation: Controlled observation under laboratory conditions or under controlled

conditions can be used to study certain aspects of the personality of an individual.

(d) Sociogram: With the help of this method, the sociability of the subject is measured.

(e) Personality Inventories: An individual’s written account of the past behaviour, feelings and wishes can

be a good source of information about his personality. Self-ratings can be done through personality inventories

and paper and pencil test.

Some popular personality inventories are:

 California Tests of Personality.

 Minnesota Multiphasic Personality Inventory (MMPI).

 Bell’s Adjustment Inventory.

 Woodworth Personal Data Sheet.

 Edward Personal Preference Schedule.

 Cornell Index.
  Boyd’s Personality Questionnaire.

 Guilford-Zimmerman Temperament Survey.

 Minnesota Counselling Inventory.

 Thurstone Temperament Schedule.

 Eysenck’s Personality Inventory.

 The Shipley Personal Inventory.

 I.P.P. Personality Inventory Test.

 Comrey Personality Scales.

 Saxena’s Personality Inventory.

 Mittal’s Adjustment Inventory.

3. Projective Methods:

These techniques enable a subject to project his internal feelings, attitudes, needs, values or wishes to an external

object. In the projective test situation, the individual responds freely to relatively unstructured yet standard

situation to which he is asked to respond.

Some of the major projective techniques are:

(a) Thematic Apperception Test (TAT): The TAT was developed by Morgan and Murray in 1935. It requires

the subject to look at the picture and to interpret it by telling a story. He is invited to say what led up to the scene

in the picture. Why such events occurred, and what the consequences will be?

(b) Children’s Apperception Test (CAT): It was developed by Leopold Bellak. The test consists of ten

pictures meant for children of the age group 3 to 10. Pictures are shown one after another and reactions

(responses) are noted and interpreted.

(c) Rorschach’s Ink-Blot Test: This test was developed by Hermann Rorschach in 1921. It uses ten irregular-

ink-blots standing against a white background. Each inkblot is shown in a fixed number of ways and the testee

is asked to report what he sees.

(d) Projective Questionnaires: In this technique the subject is given a series of questions to answer in his

own way. Through such questionnaires it is possible to obtain information regarding the subject’s emotional life,

his values, his attitudes and sentiments.

(e) Sentence Completion Test: These tests present a series of incomplete sentences to be completed by the

testee in one or more words.

(f) Psychodrama: It requires the subject to play spontaneously a role assigned to him in a specific situation.

Psychodrama deals with interpersonal relationships and maladjustment problem within the individual.

(g) Drawing, Painting and Sculpture: Artistic productions can also be used as projective techniques.

4. Psycho-Analytic Methods:

(a) Word Association Test: In such test the subject is presented a list of words, one at a time and is asked to

give the first word that comes to his mind. The responses given by the subject and the time taken by him are

recorded by the tester for interpretation.

(b) Free Association Test: In this test the subject is allowed to talk for hours together and from it certain

traits and behavioural problems are noted.

(c) Dream Analysis: In this technique the dream of the subject is analysed and unconscious behaviour is
interpreted. Since ‘Dream is the royal road to unconscious’, the dream analysis is an effective psychoanalytic
method to locate unconscious behaviour of the individual.

PERSONALITY TRAITS
A personality trait is a unique feature of an individual. Personality traits reflect people’s characteristic patterns
of thoughts, feelings, and behaviors. They are basically enduring features that define an individual behavior.
Psychologists revolve that there are five personality tests and each individual possess one or another, they are:-
Perception
Perception is an intellectual process of transforming sensory stimuli to meaningful information. It is the process
of interpreting something that we see or hear in our mind and use it later to judge and give a verdict on a situation,
person, group etc. Perception means perceiving i.e. giving meaning to the environment around us. For example:
Looking at a sculpture some may perceive it as beautiful, the others as ugly.

According to Udai Pareek and others, perception can be defined as “the process of receiving, selecting,
organizing, interpreting, checking, and reacting to sensory stimuli or data”.
According to Stephen P Robbins, “A process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment”.
By analyzing the above definitions we can say that the term perception involves the following:-

 Deciding which information to notice,

 How to categorize this information,
 How to interpret it within the frame work of our existing knowledge.
Perception can be of:-
Of sound − The ability to receive sound by identifying vibrations.
Of speech − The competence of interpreting and understanding the sounds of language heard.
Touch − Identifying objects through patterns of its surface by touching it.
Taste − The ability to receive flavor of substances by tasting it through sensory organs known as taste buds.
Other senses − They approve perception through body, like balance, acceleration, pain, time, sensation felt in
throat and lungs etc.
Of the social world − It permits people to understand other individuals and groups of their social world.

FACTORS INFLUENCING PERCEPTION

I. INTERNAL FACTORS
The internal factors include the following:-
1) Learning
Learning may play the single biggest role in developing perceptual set. It is a cognitive awareness by which the
mind organizes information and forms images and compares them with previous exposures to similar stimuli.
Learning creates an expectancy in an individual and expectancy makes him see what he wants to see which means
perceptions and interpretations of people depend upon their previous exposure.
For instance: Verbal Response Set

M-A-C-D-O-W-E-L-
L M-A-C-D-O-N-A-
L-D
M-A-C-B-E-T-H
M-A-C-H-I-N-E-R-Y

2) Motivation
Motivation also has a vital impact on perceptual selectivity where it creates a urge and activates the inner stimuli
of individuals.
For example:-a) a hungry person will be more sensitive to the smell or sight of food than a non-hungry person;
b) When a person walks into the lunch room, he may go to the table where several of his co-workers are sitting,
rather than a table which is empty or on which just one person is sitting.

3) Personality
Behavior, values and even age of an individual may also affect the people perceive the world around them.
For example, the older senior executives often complain about the inability of the new young manager to take
tough concerning terminating and paying attention to details and paper work. The young managers, in
turn,complain about the ‘old guards’ resisting change and using paper and rules as ends in themselves. Further,
the generation gap witnessed definitely contribute to different perceptions.

II. EXTERNAL FACTORS

External factor includes the following:-

1) Size
Size always attracts the attention, because it establishes dominance. The size may be the height or weight of an
individual, sign board of a shop, or space devoted to an advertisement in the newspaper.
The bigger the size of stimulus, the higher is the probability that is perceived. For example:-A full page
advertisement will always catch attention as compared to a few lines in the classified section.

2) Intensity
Intensity attracts to increase the selective perception. In other words it is an activity involves concentrating a lot
of effort or people on one particular task in order to try to achieve a great deal in a short time.
Example: Yelling or whispering, very bright colors or very dim colors etc.
The term also includes behavioral intensity. For instance, if office order says “Report to the boss
immediately,” it will more intense as compared to “Make it convenient to meet the boss today”.

3) Repetition
Repetition refers to make others to pay attention by stimulating their inner urge through repeated stimulus.
In other words, it states that a repeated external stimulus is more attention drawing than a single one. Because
of this factor, supervisors make it a point to give the necessary directions again and again to the workers.
For example:-Product shown again and again on TV grabs more attention as compared to an advertisement
which is shown once a day.

4) Status
High status people can exert greater influence on the perception of the employees than the low status people.
For example:-There will always be different reactions to the orders given by the foreman, the supervisor or the
production manager.

5) Contrast
An object which contrasts with the surrounding environment is more likely to be noticed than the object which
blends in the environment.
For example:-In a room if there are twenty men and one woman will be noticed first because of the contrast;
EXIT SIGN in cinema halls which have red lettering on a black background are attention drawing.

6) Movement
This principle states that a moving object receives more attention than an object which is standing still.
For example:-A moving car among the parked cars catch attention faster.

7) Novelty and Familiarity

This principle states that either a novel or a familiar external situation can serve as an attention getter. This
principle helps the managers to change the workers jobs from time to time, because it will increase the attention
they give to their jobs.
For example:-A familiar face on a crowded railway platform will immediately catch attention.

8) Nature
This principle states that whether it is a visual, auditory or pictures of people or animals that will attract more
attention than words.
For example:-Video attracts more attention than still pictures.

PERCEPTUAL PROCESS
1) Receiving
Receiving is the first stage in the process of perception. It is the initial stage in which a person collects all
information and receives the information through the sense organs.

2) Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data randomly but selectively. A
person selects some information out of all in accordance with his interest or needs. The selection of data is
dominated by various external and internal factors.
External factors − The factors that influence the perception of an individual externally are intensity, size,
contrast, movement, repetition, familiarity, and novelty.
Internal factors − The factors that influence the perception of an individual internally are psychological
requirements, learning, background, experience, self-acceptance, and interest.

3) Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense of the data received,
it is important to organize them. Usually data can be organized through grouping them on the basis of their
similarity, proximity, closure, continuity.

4) Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular object depending
upon the need or interest. Interpretation means that the information we have sensed and organized, is finally
given a meaning by turning it into something that can be categorized.

Attribution Theory
Attribution theory is concerned with how individuals interpret events and how this relates to their thinking and behavior.
The process of attribution refers to— an individual’s understanding of the reasons behind peoples’ behaviour.
Heider (1958) was the first to propose a psychological theory of attribution, but Weiner and colleagues (e.g., Jones et al,
1972; Weiner, 1974, 1986) developed a theoretical framework that has become a major research paradigm of social
psychology.

Attribution theory assumes that people try to determine why people do what they do, i.e., attribute causes to behavior.
A person seeking to understand why another person did something may attribute one or more causes to that behavior. A
three-stage process underlies an attribution:

(1) The person must perceive or observe the behavior,

(2) Then the person must believe that the behavior was intentionally performed, and

(3) Then the person must determine if they believe the other person was forced to perform the behavior (in which case
the cause is attributed to the situation) or not (in which case the cause is attributed to the other person).

Weiner focused his attribution theory on achievement. He identified ability, effort, task difficulty, and luck as the most
important factors affecting attributions for achievement. Attributions are classified along three causal dimensions: locus
of control, stability, and controllability. The locus of control dimension has two poles: internal versus external locus of
control. The stability dimension captures whether causes change over time or not. For instance, ability can be classified
as a stable, internal cause, and effort classified as unstable and internal. Controllability contrasts causes one can control,
such as skill/efficacy, from causes one cannot control, such as aptitude, mood, others’ actions, and luck.

Example
Attribution theory has been used to explain the difference in motivation between high and low achievers. According to
attribution theory, high achievers will approach rather than avoid tasks related to succeeding because they believe
success is due to high ability and effort which they are confident of. Failure is thought to be caused by bad luck or a poor
exam, i.e. not their fault. Thus, failure doesn’t affect their self-esteem but success builds pride and confidence. On the
other hand, low achievers avoid success-related chores because they tend to (a) doubt their ability and/or (b) assume
success is related to luck or to “who you know” or to other factors beyond their control. Thus, even when successful, it
isn’t as rewarding to the low achiever because he/she doesn’t feel responsible, i.e., it doesn’t increase his/her pride and
confidence.

Principles
1. Attribution is a three stage process: (1) behavior is observed, (2) behavior is determined to be deliberate, and (3)
behavior is attributed to internal or external causes.
2. Achievement can be attributed to (1) effort, (2) ability, (3) level of task difficulty, or (4) luck.
3. Causal dimensions of behavior are (1) locus of control, (2) stability, and (3) controllability.
LEARNING
Learning is a change in behavior as a result of experience. Learning is the product of reasoning, thinking, information
processing and perception.

In a Layman’s view, “Learning is something we did when we went to school”.

According to Stephen P Robbins or E R Hilgard, Learning is “any relatively permanent change in behavior that occurs
as a result of experience”.

According to Steers and Porter, Learning can be defined as relatively permanent change in behavior the potentiality
that results from reinforced practice or experience”.

By analyzing the above definitions we can define the term learning as a “all changes in behavior that result from prior
experience and behavior in similar situations”.

Learning covers virtually all behaviours and is concerned with the acquisition of knowledge, attitudes and values,
emotional responses (such as happiness and fear), and motor skills (such as operating a computer keyboard or riding a
bicycle).

Learning may be defined as "any relatively permanent change in behaviour or behavioural potential produced by
experience".

NATURE
 Change in Behavior
Learning involves change in behavior, although the change may be good or bad from an organization’s point of view. The
change in behavior need not be an improvement over the previous behavior, although learning improves behavior. For
example:-Bad habits like smoking.

 Change in Behavior must be relatively permanent

All the changes do not reflect learning. To constitute learning, change should be relatively permanent. Temporary
changes may be only reflective and fail to represent any learning.

For example:-any temporary adaptations like fatigue or drugs etc are not covered in learning.

 Change must be based on some experience, practice or training

The behavioral change may also influenced by experience, practice or training. This change may not be evident until a
situation arises in which the new behavior can occur.

For example:-any change in behavior due to physical maturation, any disease or physical damages do not constitute
learning.

 Reinforcement
The practice or experience must be reinforced in order for learning to occur. If reinforcement does not accompany the
practice or experience the behavior will eventually disappear.

 Learning is reflected in Behavior

A change in an individual’s thought process or attitudes not accompanied by behavior is not learning. Further learning
needs to result in behavior potentially and not necessarily in the behavior itself.

For example:-if a person is thinking of using drugs but has not actually used them and he finds out that a friend of his has
died because drugs, he will never get involved with drugs.
Elements of Learning
Elements of learning are:

1. Motivation : Motivation is based on need and goals. Motivation acts as a spur to learning, with needs and goals
serving as stimuli.
2. Cues: Cues are the stimuli that give direction to those motives. In the market, marketing mix (place, price, packaging,
styling, advertising and displays) serve as cues to help consumers fulfill their needs in product specific ways.
3. Response: How an individual reacts to a drive or cue constitutes his or her response. Learning can occur even if
responses are not overt.
4. Reinforcement:

Characteristics of Learning
Characteristics of learning are:

1. Learning is Purposeful
2. Learning is a Result of Experience
3. Learning is Multifaceted: While learning the subject at hand, students may be learning other things as well.
4. Learning is an Active Process

PRINCIPLES OF LEARNING
Learning is a very complex and wide topic. Following are the principles of learning in formal training situations:-

Feedback
Learning can be a more effective process when both the instructor and trainee give feedback to each other. The
instructor needs feedback to know how the trainee is progressing and the trainee needs the feedback to know his level
of performance.

Active learning
Learning can be more effective and quick, if the trainee is actively involved in the learning process.

Reinforcement
According to this principle “learning which is rewarded is more likely to be retained.” This is how learning make children,
students and even pets to learn.

Meaningful material
The material supplied to the trainee should be meaningful. He can understand and learn more, if the material supplied is
related to his existing knowledge.

Multiple sense learning

The presentation method which makes use of two or more senses are more effective than using one sense only which
means “one picture is worth a thousand words”. Generally, the most important senses for learning are SIGHT and
HEARING.

Overloading
If an individual frequently makes attempts to recall the learned material, forgetting is reduced and the material is
memorized in his brain.
Primary and recency
This principle states that trainees can recall those things they learn first and last in sequence. This principle does not
hold true in all conditions and sometimes they act against one another.

For example:-When the most recent impressions change or blot our first impressions.

Learning Process
The learning process has the following steps:
1. Stimuli: are any objects and language which draw the attention of people.
2. Attention: The degree of attention depends upon the nature of stimuli. All stimuli are not paid attention to.
Technical and interesting stimuli are highly attended.
3. Recognition: Attention-paid stimuli are recognised as acceptable factors of improvement and new life styles.
4. Translation: The translation and evaluation process is a crucial point for implementing the stimuli in behaviour
through reinforcement.
5. Reinforcement : Perception leads to learning, but perception itself is not learning unless it is reinforced.
6. Behavior: Learning changes behaviour through reinforcement of perceived knowledge. It makes permanent changes
in behaviour. A temporary change in behaviour is not learning.
7. Reward: Employees expect rewards for learning.
8. Habits: A permanent change in behaviour becomes a habit which helps continuous improvement in behaviour and
performance.
9. Motives: It 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 realised 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.

TYPES OF LEARNING
1.) OBSERVATIONAL LEARNING
Observational learning is learning that occurs through observing the behavior of others.

Observational learning is a form of social learning where it is concerned with learning by watching others is called
Observational learning.

Observational learning always occurs through attention, retention, production and motivation.

For example: (1) A child learns to interact with other people by observing their parents; (2) A newer employee avoids
being late to work after seeing a co-worker fired for being late.

BENEFITS OF OBSERVATIONAL LEARNING

 Encourage Social Interactions
 Improves Behaviour
 Expands Knowledge
 Enhances Memory
2.) REINFORCEMENT
Reinforcement is a process of strengthening desirable behaviors, often through the use of rewards.
Reinforcement is the attempt to develop or strengthen desirable behavior. There are two types of reinforcement in
organizational behavior: positive and negative.
Positive reinforcement strengthens and enhances behavior by the presentation of positive reinforcers. There are
primary reinforcers and secondary reinforcers.

Primary reinforce satisfy basic biological needs and include food and water. Where secondary reinforce include such
benefits as money, status, grades, trophies and praise from others.

Negative reinforcement, an unpleasant event that precedes a behavior is removed when the desired behavior occurs.
For example, Supervisors apply negative reinforcement when they stop criticizing employees whose poor performance
has improved.

Punishment Punishment is an undesirable consequence an employee receives for bad behavior. This can involve
actions like demoting the employee or suspending the employee.
Extinction Extinction is the elimination of a behavior. This type of behavior modification should be reserved for the
most damaging behaviors.

BENEFITS OF REINFORCEMENT
 Increases Behavior
 Sustain Change
 Gives a path to correct errors
 Achieve perfection

3.) COGNITIVE LEARNING

Cognitive Learning is a type of learning that is active, constructive, and long-lasting. It engages students in the learning
processes, teaching them to use their brains more effectively to make connections when learning new things.
Comprehension, Application and Memory are the basic factors that influences cognitive learning.
In other words, the cognitive learning process aims to chart the learning process for optimal thinking, understanding and
retention of what we learn.

BENEFITS OF COGNITIVE LEARNING

 Enhance Comprehension
 Improve Problem Solving Skills
 Boosts Confidence
 Encourages Continuous Learning

4.) SELF-DIRECTED LEARNING

Learning that occurs when learners explore, question, react, and respond to learning material relevant to their needs.
Also known as self-concept or self-initiated learning.

Self-directed learning describes a process in which individuals take the initiative, with or without the help of others, in
diagnosing their learning needs, formulating learning goals, identifying human and material resources for learning,
choosing and implementing appropriate learning.

BENEFITS OF SELF-DIRECTED LEARNING

 Support learning through trails and error
 Value System
 Intrinsic Motivation
 Inspires a love of learning
 5.) EXPERIMENTIAL LEARNING
Experiential learning is a method of educating through first-hand experience. For Example :- internships, studies abroad,
field trips, field research, and service-learning projects.

In other words, it is a process whereby knowledge is created through the transformation of experience. Knowledge
results from the combinations of grasping and transforming the experience.

BENEFITS OF EXPERIMENTIAL LEARNING

 Links theory to Practice
 Increase Engagement
 Leads to development of Skills
 Assist memory retention

Approaches/Theories of Learning

Classical Conditioning
Classical conditioning is a type of conditioning in which an individual responds to some stimulus that would not
ordinarily produce such as response.

In other words, it is the process of learning to associate a particular thing in our environment with a prediction of what
will happen next.

The classical conditioning was first constructed by Ivan Pavlov, the Russian psychologist.

Pavlov presented one dog with a piece of meat, the dog exhibited a noticeable increase in salivation. When Pavlov
withheld the presentation of meat and merely rang a bell, the dog did not salivate. Then Pavlov proceeded to link the
meat and the ringing of the bell. After repeatedly hearing the bell before getting the food, the dog began to salivate as
soon as the bell rang. After a while, the dog would salivate merely at the sound of the bell, even if no food was offered.

In classical conditioning, learning involves a conditioned stimulus and an unconditioned stimulus. Here, the meat was
unconditioned stimulus; it invariably caused the dog to react in a specific way.

The reaction that took place whenever the unconditioned stimulus occurred was called the unconditioned response.
Here, the bell was a conditioned stimulus.

When the bell was paired with the meat, it eventually produced a response when presented alone. This is a conditioned
response.

We can conclude the below from this:-

 Stimulus Generalisation: He found that those stimuli which are similar to the original the same response is
given.
 Response Generalisation: It is also found on the basis of Pavlov’s experiment that response also gets
generalized. Suppose, if one hand is damaged the the other hand takes the responsibility to support the invalid
hand by enhancing its energy and making oneself stronger one.
 Extinction: Pavlov introduced a very impt. Concept and that was extinction , if time and again CS is coming
without any UCS then a stage comes that the learned behavior starts extinguishing or meeting an end i.e.
Extinction.
 Spontaneous Recovery: But after few months that extinct response emerges again.
Operant conditioning
Operant conditioning learns that a particular behavior is usually followed by a reward or punishment.

The Harvard psychologist B.F. Skinner proposed operant conditioning.

Operant conditioning argues that one’s behavior will depend on different situations. People will repeatedly behave in a
specific way from where they will get benefits.

On the other hand, they will try to avoid a behavior from where they will get nothing. Skinner argued that creating
pleasing consequences to specific forms of behavior would increase the frequency of that behavior.

In one famous experiment displaying operant learning, the psychologist B.F. Skinner trained rats to press a lever to get
food. In this experiment, a hungry rat placed in a box containing a lever attached to some concealed food. At first, the
rat ran around the box randomly. In this process, it happened to press the lever, and the food dropped into the box. The
dropping of food-reinforced the response of pressing the lever. After repeating the process of pressing the lever
followed by dropping off food many times, the rat learned to press the lever for food.

People will most likely engage in desired behaviors if they are positively reinforced for doing so. Rewards are most
effective if they immediately follow the desired response. Also, behavior that is not rewarded, or is punished, is less
likely to be repeated.

Trial and error Theory

Trial and Error is a method of learning in which various responses are tentatively tried and some discarded until a
solution is attained.

E.L.Thorndike (1874-1949) was the chief exponent of the theory of connectionism or trial and error. He was an American
Psychologist who conducted Stimulus - Response(S-R) theory experiment with the help of animals. Thorndike was the
first to study the subject of learning systematically using standardized procedure and apparatus. All learning, according
to Thorndike is the formation of bonds or connections between stimulus-response.

The Puzzle Box Experiment

Thorndike's Experiment on cat in the puzzle is widely known and often quoted in psychology of learning. The
experimental set up was very simple. A hungry cat was confined in a puzzle box and outside the box a dish of food was
kept. The cat, in the box had to pull a string to come out of the box. The cat in the box made several random movements
of jumping, dashing and running to get out of the box. The cat at last succeeded in pulling the string. The door of the
puzzle box opened, the cat came out and ate the food. He promptly put the cat to next trial. The cat again gave a lot of
frantic behaviour but it soon succeeded in pulling the string. It repeated for several time, Thorndike noticed as the
repetition increases the error also reduced i.e., Thorndike's cat showed slow, gradual and continuous improvement in
performance over successive trials. He concluded that learning of cat in the puzzle box can be explained in term of
formation of direct connectionism between stimulus and response.

Features of Trial and Error Learning

1. Learning by trial and error is gradual process.

2. For learning to occur, the learner must be definitely motivated.

3. The learner makes random and variable response.

4. Some responses do lead to the goal (annoying response)

5. Some responses lead to the goal. (Satisfying responses)

6. With the increase in number of trials the annoying responses will tend to be eliminated and the satisfying responses
will be strengthened and repeated.

7. The time taken to perform the task (to repeat the satisfying response) decreases with successive trials.

Thorndike's Laws of Learning

i) Law of Readiness: The law states "When any conduction unit is ready to conduct, conduction by it is always
satisfying. When a conduction unit is not ready to conduct, forceful conduction is annoying. When any
conduction unit is ready to conduct is always annoying."
ii) Law of Effect: The law states "When a modifiable connection between a stimulus and response is made and
is accompanied or followed by a satisfying state of affairs the strength of connection is increased. When a
connection between stimulus and response is made and accompanied or followed by an annoying state of
affairs, it strength decreases.
iii) Law of Exercise: The law states "Any response to a situation will, other things being equal, be more strongly
connected with the situation in proportion to the number of times it has been connected with that situation
and to the average vigour and duration of the connection."

The law has two sub parts: a) Law of Use and b) Law of Disuse
a) Law of Use states that "When a modifiable connection is made between a situation and response that
connection strength is increased if it is practised."
b) Law of Disuse states that "When a modifiable connection is not made between a situation and response,
during a length of time, that connection's strength is decreased." This means, any act that is not practised
for sometimes gradually decays.

Insight Learning Theory

The learning theory named as “Learning by Insight” is the contribution of Gestalt Psychologists. Gestalt
Psychology began with the work of German Psychologists who were studying the nature of perception.
Wertheimer is generally considered to be the Gestalt Psychology’s founding father. Wertheimer, Kohler, Koffka
and Lewin-all four of these men are the leaders of what is historically Gestalt Psychology.
The nearest English translation of Gestalt is ‘configuration’ or more simply ‘an organized whole’.
Gestalt Psychology used the term ‘insight’ to describe the perception of the whole situation by the learner and
of his intelligence in responding to the proper relationships.
Kohler, first of all, used this term (insight) to describe the learning of his apes. Kohler conducted many
experiments on chimpanzees and brought out a book. ‘Mentality of Apes’ in 1925 which was the result of his
experiments, conducted during the period 1913-17 on the canary Island. These experiments, show learning by
insight.
 In one experiment, Kohler put a chimpanzee Sultan inside a cage and a banana was hung from the roof of
the cage. A box was placed inside the cage. The chimpanzee tried to reach the banana by jumping but could
not succeed. Suddenly, he got an idea and used the stick as a jumping platform by placing it just below the
hanging banana.
 In other experiment, Kohler made this problem more difficult. Now it required two or three boxes to reach
the banana. Moreover, the placing of one box over the other required different specific arrangements.
 In a more complicated experiment, banana was placed outside the cage of the chimpanzee. Two sticks, one
larger than the other, were placed inside the cage. One was hollow at one end so that the other stick could
be thrust into it to form a longer stick. The banana was so kept that it could not be picked up by one of the
 sticks. The chimpanzee first tried these sticks one after the other but failed. Suddenly, he got a bright
idea. The animal joined the two sticks together and reached the banana. In these experiments, Kohler used
many different chimpanzees. Sultan, who was the most intelligent of Kohler’s chimpanzees, could solve all
the problems. Other chimpanzees could solve the problems only when they saw Sultan solving them.

With such experiments, Kohler concluded that in the solution of problems, his apes did not resort to blind trial and error
mechanism. They solved their problems intelligently. Kohler used the term ‘Insight’ to describe the learning of his apes.

Insight involves the following criteria

 The situation as a whole is perceived by the learner.

 The learner tries to see and judge the relationship between various factors involved in the situation.
 As a result, the learner is helped in the sudden grasping of the solution of the problem.

Insight depends upon the following factors.

 Experience
 Intelligence
 Learning Situation
 Initial Efforts
 Repetition and Generalization

This theory brings the following important facts into limelight :

1. The whole is greater than the parts and, therefore, the situation should be viewed as a whole.
2. The use of blind fumbling and mechanical trial and error should be minimized. The learner should try to
see relevant relationships and act intelligently.
3. The purpose or motive plays the central role in the learning process.

Measurement of Learning
For marketers, the dual goals of consumer learning are increased market share and brand-loyal consumers. These goals are
interdependent.

Thus, it is important for marketers to measure how effectively consumers have “learned” its message. Recognition and
recall tests are conducted for measureing consumer learning.

1. Recognition and Recall

2. Brand Loyalty

Recognition and Recall tests are conducted to determine whether consumers remember seeing an advertisement and the
extent to which they have read it or seen it and can recall its content.
Recognition tests are based on aided recall, whereas recall tests use unaided recall. In recognition tests, the consumer is
shown an ad and asked whether he or she remembers seeing it and can remember any of its salient points.

In recall tests, the consumer is asked whether he or she has read a specific magazine or watched a specific television
show, and if so, can he or she recall any ads or commercials seen, the product advertised, the brand and any salient points
about the product.

Brand Loyalty is the ultimate desired outcome of consumer learning. Brand loyalty consists of both attitude and actual
behaviours toward a brand and that both must be measured. Attitudinal measures are concerned with the consumers’
overall feelings about the product and the brand, and their purchase intentions.
Behavioural measures are based on observable, factual behaviours regarding the brand, such as quantity purchased,
purchase frequency and repeated buying.

ATTITUDES
An attitude describes persons’ enduring favorable or unfavorable cognitive evaluations, feelings, and action tendencies
toward some object or idea. People have attitudes regarding almost everything such as religion, politics, cloth, music, food.

In simple words, an “attitude” is an individual’s way of looking or an individual’s point of view at something.

To be more specific, an “attitude” may be defined as the mental state of an individual, which prepares him to react or
make him behave in a particular pre-determined way. It is actually an acquired feeling.

Characteristics of Attitude
Characteristics of attitude are discussed below:
1. Attitude are predispositions
2. Attitude are different from values
3. Attitude are evaluative statement
4. Attitude influence human behavior
5. Attitude have intensity
6. Attitude are learnt

COMPONENTS OF ATTITUDE

1) Informational or Cognitive Component

The informational component consists of beliefs, values, ideas and other information a person has about the object. For
example, a person seeking a job may learn from his own sources and other employees working in the company that in a
particular company the promotion chances are very favorable. In reality, it may or may not be correct. Yet the
information that person is using is the key to his attitude about that job and about that company.
2) Emotional or Affective Component
The informational component sets the stage for the more critical part of an attitude, its affective component. The
emotional components involve the person’s feeling or affect-positive, neutral or negative-about an object. For example,
“I like this job because the future prospects in this company are very good”.
3) Behavioural Component
The behavioural component consists of the tendency of a person to behave in a particular manner towards an object.
For example, the concerned individual in the above case may decide to take up the job because of good future
prospects.

EMOTIONAL INTELLIGENCE
MEANING OF EQ
Emotional intelligence refers to the capability of a person to manage and control his or her emotions and possess the
ability to control the emotions of others as well.
Emotional intelligence are the skills which are required to better understand, empathize and negotiate with other
people.

IMPORTANCE OF EQ AT WORKPLACE

Self-awareness
If a person has a healthy sense of self-awareness, he understands his own strengths and weaknesses, as well as how his
actions affect others. A person who is self-aware is usually better able to handle and learn from constructive criticism
than one who is not.

Self-regulation
A person with a high EQ can maturely reveal her emotions and exercise restraint when needed. Instead of squelching her
feelings, she expresses them with restraint and control.
Motivation
Emotionally intelligent people are self-motivated. They're not motivated simply by money or a title. They are usually
resilient and optimistic when they encounter disappointment and driven by an inner ambition.

Empathy
A person who has empathy has compassion and an understanding of human nature that allows him to connect with other
people on an emotional level. The ability to empathize allows a person to provide great service and respond genuinely to
others’ concerns.
People skills: People who are emotionally intelligent are able to build rapport and trust quickly with others on their
teams. They avoid power struggles and backstabbing. They usually enjoy other people and have the respect of others
around them.

UNIT III

Transactional Analysis

 Transactional analysis is a technique which helps to understand the behaviour of oneself and other person so
that communication becomes effective.
 TA studies transactions amongst people and understands their interpersonal behaviour.
 It is a method of analyzing and understanding interpersonal behaviour.

 It was developed by Eric Berne, a psychotherapist.

 TA offers a model of personality and the dynamics of self and its relationship to others that makes possible a clear
and meaningful discussion of behaviour.”

Transactions Analysis is primarily concerned with following:

1.) Analysis of EGO States

2.) Analysis of Transactions
 3.) Analysis of Life Positions
4.) Stroke Analysis
5.) Games Analysis
6.) Analysis of Self Awareness(Johari Window)

1.) Ego States

The ego plays an important role in human behaviour. “An ego state is a pattern of behaviour that a person develops as
he or she grows, based on his or her accumulated network of feelings and experiences.” People interact with each other
in terms of psychological positions or behavioural patterns known as ego states. Ego states are person’s way of thinking,
feeling and behaving at any time.
Sigmund Freud was the first to believe that there are three sources within human personality that stimulate, monitor
and control behaviour. TA uses Freudian psychoanalytic theory as background for identifying three important ego
states; child, adult and parent. These three ego states have nothing to do with the chronological age of the persons;
they are related only with psychological age. A person of any age can have these ego states in varying degrees.
BERNE states that “although we cannot directly observe these ego states, we can observe behaviour and from this infer
which of the three ego states are operating at that moment.”
A healthy person is able to move from one ego state to another. Further, these three ego states are not like Freud’s Id,
ego and super ego. They are based on real world behaviour.

These three ego states are shown in the following figure:

1. Parent Ego:
The parent ego state means that the values, attitudes and behaviours of parents become an integral part of the
personality of an individual. By parents, we do not mean the natural parents but all those emotionally significant people
like elder brothers, and sisters, school teachers, elder relatives or friends, who served as parent figure when an
individual was a child. The attitudes, behaviours, values and habits of these people are recorded in the mind of the
individual and these become the basis of this personality.
Parent ego is expressed by giving advice, admonitions, do’s and don’ts, showing displeasure, reliance on the ways which
were successful in the past etc. These people tend to talk down to people and treat others like children.

There are two types of parent ego states:

(i) Nurturing Parent Ego:

Nurturing parent ego state reflects sympathetic, protective and nurturing behaviour not only towards children but also
to other people in interaction.
(ii) Critical Parent Ego:

Critical parent ego state shows critical and evaluative behaviour in interaction with others. This ego state attacks
people’s personalities as well as their behaviour. They are always ready to respond with a should or ought to almost
anything people tell them. Each individual has his unequal parent ego state which is likely to be a mixture of helpfulness
(Nurturing state ego) and hurtfulness (Critical ego state). People with parent ego “state have more choice over their
actions.
2. Adult Ego:
The adult ego state is authentic, direct, reality based, rational, fact seeking and problem solving. People interacting with
adult ego; do not act impulsively or in a domineering style. They assume human beings as equal, worthy and responsible.
The process of adult ego state formation goes through one’s own experiences and continuously updating parental
prejudices or attitudes left over from childhood.
Though certain values which are formed in the childhood are rarely erased, an individual at the later stage of the life
may block his child and parent ego states and use his adult ego only based on his experiences. He updates the parent
data to determine what is valid and what is not. Similarly, he updates the child data to determine which feelings should
be expressed.
Thus, people, with adult ego state, gather relevant information, carefully analyze it, generate alternatives and make
logical choices. This ego state can be identified by verbal and physical signs which include thoughtful concentration and
factual discussion.
3. Child Ego:
The child ego state is the inner world of feelings, experiences and adaptations. In each case, the child ego is
characterized by very immature behaviour.

The characteristics of child ego state are:

 Creativity
 Conformity
 Anxiety
 Depression
 Dependence
 Fear
 Joy
 Emotional Sentimental

Physical and verbal clues that a person is acting in the child ego are silent compliance, attention seeking, temper
tantrums, giggling and coyness. Child ego state reflects early childhood conditions and experiences perceived by
individuals in their early years of life that is up to the age of 5 years.

There are several forms of the child ego states are:

(i) Natural Child:

The natural child is affectionate, impulsive, sensuous, uncensored and curious. Nevertheless, he is also fearful, self
indulgent, self centred, rebellious and aggressive and may emerge in many unpleasant roles.

(ii) The Little Professor:

The little professor is intuitive, creative and manipulative. He responds to non-verbal messages and play hunches. He
can figure things out and believes in magic. People who express their creativity purposefully use their little professor in
conjunction with their adult ego state.

(iii) The Adaptive Child:

The adaptive child is the trained one and he is likely to do what parents insist on and sometimes learn to feel non O.K.
The adapted child when overtly inhibited, often becomes the troubled part of the personality.

Each person may respond to specific situations in quite distinct ways from each ego state. ABE WAGNER is of the opinion
that a healthy person has a personality that maintains a balance among all three. However, practically speaking, it would
be difficult. If not impossible to maintain a balance among all the three ego states.

An ego state from which a person behaves would depend upon, to an extent situation in which an individual operates at
that particular moment. Sometimes, these ego states harmonise whereas sometimes they are in conflict. Some people
respond with one ego state more than they do with other ego states.

2.) Analysis of Transactions:

A transaction is a basic unit of social interaction. The heart of transactional analysis is the study and diagramming of the
exchanges between two persons. Thus, where a verbal or non-verbal stimulus from one person is being responded by
another person, a transaction occurs. T.A. can help us to determine which ego state is most heavily influencing our
behaviour and the behaviour of the other people with whom we interact.
Depending on the ego states of the persons involved in transactions, there may be three types of transactions:

(i) Complementary transactions

(ii) Crossed transaction

(iii) Ulterior transactions.

(I) Complementary Transactions:

Complementary transactions are those where the ego states of the sender and the receiver in the opening transaction
are simply reversed in the response. In these transactions stimulus and response patterns from one ego state to another
are parallel. The message by one person gets the predicted response from the other person. There can be nine
complementary transactions:

1. Adult-Adult Transactions:
In these transactions, the manager and his subordinate interact with each other from adult-adult ego. This is an ideal
transaction. Complementary transactions in these ego states are psychologically mature and effective because both the
boss and the subordinate are acting in a rational manner. Both are attempting to concentrate on problems, developing
alternatives and trying to choose the best possible alternative to solve the problem.
Adult-Adult transaction is presented in the following figure:
However, there are some inherent problems in this transaction. At times, these transactions may prevent reaching any
decisions because of rational data processing procedure and a deadline may emerge. Moreover, the absence of child
ego state may make the transactions dull due to the lack of stimulation a child can provide. In such situations, the boss
may move to the parent ego state to take a decision to solve the problems. In-spite of these problems, this type of
transaction is generally considered best from the organizational point of view.

2. Adult-Parent Transaction:
In adult parent transaction, the manager has the adult ego and he attempts to use the information he himself has
processed. On the other hand, the subordinate has the parent ego and he prefers to use the clicks and rules of the past.
The employee’s parent ego tries to control and dominate the boss. This type of transaction can be effective only on a
temporary basis and it can help a new manager in understanding the rules and guidelines under which his subordinate
operates.

The following figure presents the Adult-parent transaction:

There can be a lot of problems in this type of transactions. In the long run the employee with the parent ego may have
hostile feelings towards the managers with adult ego. Such problems can be further aggravated if the other employees
working in the organisation have child ego and they are under the influence of the employee with the parent ego. As he
may be having better interaction with the employees with child ego, the employee with the parent ego can come into
direct conflict with the manager with adult ego.

3. Adult-Child Transaction:
An adult child transaction occurs when the manager has an adult ego but the subordinate has a child ego as shown
in the following figure:
Such a transaction can be effective only if the manager is aware of the child ego state of the employee. Further, he must
be aware that what type of child ego state the employees is in. If the subordinate has the little professor style child ego,
the manager can allow the employee to be creative. But the problems in this interaction may arise if the employee
behaves irrationally because of his child ego. Another problem may arise if the manager assumes the employee to be in
adult ego, whereas he is in child ego. This may create frustration both for the manager and his subordinate.

4. Parent-Parent Transaction:
If the manager has got a parent ego, he will be characterised by admonitions, rewards, rules criticisms and praise
depending upon whether he has a nurturing or a critical parent ego. As, on the other hand, the subordinate has also got
a parent ego, this transaction can be effective only if the subordinate joins hands with the manager and supports him.

Such a transaction can lead to some problems also. There will be unnecessary competition between manager and the
subordinate. The manager will want to enforce his own ideas, whereas the employee will like to promote his own ideas
rather than that of the manager.
5. Parent -Adult Transaction:
In such type of transaction, the boss has got a parent ego whereas the subordinate has got an adult ego as shown in the
following figure:

Such a relationship may not last for a long period because they will be frustration on both the sides. The manager will
feel frustrated because the employee will not act as directed. The employer will feel frustrated because of the
manager’s failure to act as an adult.

6. Parent-Child Transactions:
The parent-child transaction is considered the ideal situation. The manager will be satisfied because he can dictate his
own terms. The employee will be satisfied because he will escape from responsibility and pressure. The child ego in the
subordinate presents much conflict and there will be chances of smooth working in the organisation.
7. Child-Parent Transaction:
This is not a very effective style of transaction. The manager with the child ego may be creative, but the role of the
manager goes beyond creativity. In the child-parent transaction, there is a reversal of roles and the employee controls
the manager. As the parent ego is strong and overbearing, the manager will yield to the employee. The manager will
always perceive the employee as a threat because in his mind there will always be a fear of ridicule, loss of popularity
and even of demotion.

8. Child-Adult Transaction:
When the manager has a child ego and the employee has an adult ego, the adult employee will control the child
manager.

The child ego in the manager will discourage the employees, particularly, when decisions are made by the manager on
the basis of his whims, fancies and emotions. This will pose problems for the adult employees who want to interact on
the basis of their rationality. The organisation may lose many good employees particularly those who want to act on the
basis of their rationality but their managers have got a child ego.
9. Child-Child Transaction:
When the manager has got a child ego and the employees have also got a child ego, the transaction will not be long
lasting. The manager in such a transaction will not be able to lead the employees successfully and will prove to be a
liability to the organisation. Because of their child egos, both the employees and the manager will act on their whims
and fancies. It will jeopardies the performance of the organisation. Whenever there is a review of the situation by the
management, steps will be taken to change this situation.

From the above discussion it is clear that all the complementary transactions are not ideal for the organisation or for the
people concerned. Adult-Adult transactions are good from the organisational and people’s point of view. In some
circumstances, parent-child complementary transactions may also prove to be good.
(II) Crossed Transactions:
A crossed or non-complementary transaction is one in which the sender sends a message or exhibits a behaviour on the
basis of his ego state, but this message or behaviour is reacted to by an un-compatible and unexpected ego state on the
part of the receiver. Such transactions occur when the stimulus and response are not parallel.

The following figure depicts one cross transaction, which may occur in an organisational system:

In this case, the manager tries to deal with the employee on adult to adult basis, but the employee responds on child to
parent basis and the communication is blocked. Crossed transactions should be avoided as far as possible. Whenever
such transactions occur, communication tends to be blocked and a satisfactory transaction is not accomplished. Conflicts
often follow soon afterwards. The conflicts may cause hurt feelings and frustration on the part of the parties involved
and possible dysfunctional accomplishments for the organisation.

(III) Ulterior Transaction:

Ulterior transactions are the most complex because unlike complementary and crossed transactions, they always involve
more than two ego states and the communication has double meaning. An ulterior transaction occurs when a person
appears to be sending one type of message but is secretly sending another message. Thus, the real message is often
disguised in a socially acceptable way. On the surface level, the communication has a clear adult language, whereas on
the psychological level it carries a hidden message. Just like crossed transactions, ulterior transactions are also
undesirable.

3.) Analysis of Life Positions:

In the process of growing up, people make basic assumptions about their own self worth as well as about the worth of
significant people in their environment. These assumptions tend to remain with the person for life, unless major
experiences occur to change them. Harris called the combination of assumptions about self and the other person, a LIFE
POSITION.

Transactional analysis constructs the following classifications of the four possible life positions or psychological
positions:

These life positions can be shown with the help of the following figure also.

1. I am OK-You are OK:

This is a rationally chosen and mentally healthy position. It appears to be an ideal life position. People with this type of
life position have confidence in themselves as well as trust and confidence in others. They accept the significance of
other people and feel that life is worth living. The people who have this position behave from adult, nurturing parent
and happy child ego state.

When managers have this type of position, they have complete confidence and trust in their subordinates. They display a
very high level of mutual give and take. They delegate authority throughout the organisation. These managers encourage
free flow of communication not only up and down the hierarchy but among the peers also. In short, people with these
feelings have positive outlooks on life. They seem to be happy-active people who succeed in whatever they do.

2. I am OK-You are not OK:

This is a distrustful psychological position. This position is taken by people who feel victimized or prosecuted. They blame
others for their miseries. This is the attitude of those people, who think that whatever they do is correct. Such behaviour
is the outcome of a situation in which the child was seriously neglected and ignored by his parents in his childhood.
Criminals often have this position, based on rebellious child ego, which in extreme cases may lead to homicide also. In his
life position, people operate from critical Parent Ego.
Managers operating with this position will always be negative and will give critical and oppressive remarks. They tend to
point out the flaws, the bad things, rarely giving any positive feelings. They feel that workers are lazy, irresponsible and
untruthful; therefore, they need to be closely controlled and often coerced to achieve organisational objectives. They do
not delegate any authority and feel that decentralization is a threat.

3. I am not OK-You are OK:

This is a common position for those people who feel powerless when they compare themselves to others. People with
this position always feel themselves at the mercy of others and grumble for one thing or the other. They have a tendency
to withdraw, experience depression and in extreme cases become suicidal. People who have this position operate from
child ego state.

Managers operating from this position, tend to give and receive bad feelings. They use these had feelings as an excuse to
act against others. But when the whole thing comes out, they feel guilty for their acts and turn their bad feelings against
themselves. These people are often, unpredictable and erratic.

4. I am not OK-You are not OK:

People in this position tend to feel bad about themselves and see the whole world as miserable.
These people tend to give up. They do not trust others and have no confidence in themselves. This is a desperate life
position. In extreme cases these people commit suicide or homicide. This is the case of individuals who were seriously
neglected by their parents in their childhood and were brought up by servants. At times, persons with this life position
begin to use intoxicated drugs.

Managers who operate from this position are not competent, energetic, efficient and effective. They are indecisive,
confused and make stupid mistakes. They provoke others to give them negative strokes in order to relieve themselves for
stresses and strains.

One of the above four life positions dominates each person’s life. The desirable position and the one that involves the
greatest likelihood of adult to adult transaction is “I am OK-you are OK”. It shows healthy acceptance of self and others.
The other three life positions are less mature and less effective. However, regardless of one’s present life position, the “I
am OK-you are OK” position can be learnt. If all the people in the society operate from this life position, there will be hope
for improved interpersonal transactions.
 4.) Stroke Analysis
Stroking is an important aspect of transactional analysis. The term stroke refers to “giving some kind of recognition to the
other.” Strokes are exchanged whenever two persons interact with each other. The word stroking originated from the
studies of the needs that babies have for physical affection for complete psychological development. As we grow from
infancy into childhood and adulthood, we do not entirely lose our need for stroking. A part of original need for physical
stroking seems to be satisfied with symbolic stroking like verbal recognition and eye contact between persons.

Jongeward and Seyer observe that “People need strokes for their sense of survival and well being on the job.” Lack of
stroking can have negative consequences both on physiological and psychological well being of a person.

In-fact, strokes are a basic unit of motivation because:

The quantity and quality of strokes serves as either positive or negative motivation for employees.
A good share of satisfaction we get from work depends on the strokes available from other people.
We can get strokes from the activities of the work itself, especially if what we are doing really fits and we can take
responsibility for it.
There are three types of strokes:
1. Positive Strokes:
The stroke that makes one feel good is a positive stroke. Recognition, approval, pats on the back are some of the examples
of positive strokes. For positive results on the jobs, it is crucial to give positive strokes to people.

2. Negative Strokes:
A stroke that makes one feel bad or not good is a negative stroke. Negative strokes hurt physically or psychologically.
Hating, criticizing and scolding are some of the examples of negative strokes.

3. Mixed Strokes:
A stroke may be of a mixed type also. An example of combination of positive and negative strokes may be the boss’s
comment to a worker “you did an excellent job in-spite your limited experience.” Excellent job is a positive stroke and lack
of experience is a negative stroke.

People do not always seek positive strokes. The negative stroke completes a social transaction as they think it should be
and provides social equilibrium from their point of view. People feel relieved of their guilt if they get the expected negative
stroke. For example, if the subordinate has committed a mistake and his boss criticizes him for that, the subordinate will
feel relieved of his mistake since the expected punishment has been received.

The supervisor will normally secure better results by giving positive strokes, like initiating an adult to adult communication.
He should avoid the punishing parent to child approach. People can learn to give and receive positive strokes by making
source efforts.

Game analysis:
When people fail to get enough strokes at work they may try a variety of things. One of the most important things is that
they play psychological games. According to Eric Berne, “A game “is a recurring set of transactions, often repetitions,
superficially plausible, with a concealed motivation or more colloquially, a series of moves with a share or gimmick.”

James and Jongeward note that “games prevent honest, intimate and open relationship between the players. Yet people
play them because they fill up time, provoke attention, reinforce early opinions about self and others and fulfill a sense of
destiny.”

A psychological game is a set of transactions with three characteristics:

I. The transaction tends to be repeated.
 II. They make sense on superficial or social level.
III. One or more of the transactions is ulterior.

The set of transactions end with a predictable payoff-a negative feeling. This negative feeling generally reinforces a
decision made in childhood about oneself or about others. They reflect feelings of non-oneness. Psychological games
prevent people and organisations to become winners.

However, people still play psychological games in the organisations because of the following reasons:

1. To get Strokes: Every person wants to have positive strokes on the jobs. When they are not in a position to get these
strokes from the others, they try to play psychological games to satisfy their need for strokes.
2. To Strengthen Life Positions:
Games are generally played to strengthen life position which the people hold. If people hold non. OK positions, they try
to emphasize it through the games. Sometimes, a person acts like a loser in order to win the game. For example, in a game
of KICK ME a player provokes someone else to a putdown response.

3. To Avoid or Control Intimacy:

Some people are afraid of openness, accountability and responsibility in relationships. Such people generally play games
to avoid or control intimacy, because games generally put distance between people.

Types of Games:
People play games with different degrees of intensity from the socially accepted, relaxed level to the criminal
homicide/suicide level.

According to Eric Berne, following are some of the games:

I. A first degree game is one which is socially acceptable in the agent’s circle.
II. A second degree game is one from which no permanent irremediable damage arises, but which the player would
rather conceal from the public.
III. A third degree game is one which is played for keeps and which ends in the surgery, the courtroom or the morgue.

Games are programmed individually. If parent’s games are initiated, they are played from parent ego state. If the games
are deliberately planned, they are played from the adult ego state. They are played from the child ego state, if they are
based on early life experiences, decisions and the positions that a child takes about self and others.

Game players generally assume one of the three basic roles; prosecutor, rescuer or victim.

Prosecutors are generally those people who make unrealistic rules, enforce rules in cruel ways and pick on little guys
rather than people of their own size. Victims are the people who provoke others to put them down, use them, hurt them,
send them helpless message, forget conveniently and act confused. Rescuers are the people, who offer help to keep others
dependent on them, do not really help others and may actually dislike helping and work to maintain the victim role so
that they can continue to play rescuer.

These three roles are not independent; rather the players of psychological games often switch back and forth in their
roles. On many occasions, the characteristics of these people may not be imaginary. For example, people may actually be
victimised personally or discriminated against on the job. In such situations, they are the real victims. Nevertheless, actors
in the psychological games assume the role of game players and differ from reality.

Methods of Preventing Games:

Since games prevent open, warm, intimate and honest relationships between players, it is essential to develop methods
to discourage games in organisation.

Jongeward has suggested the following steps to overcome psychological games:

I. Avoidance of the complementary hand
II. Avoidance of acting roles involved in games particularly, victim roles.
III. Avoidance of putting other people down.
IV. Avoidance of putting oneself down.
V. Giving and taking positive strokes as against negative strokes.
VI. Investing more of life’s time in activities and intimacy and
VII. Levelling the thinking with others.

Analysis of Self Awareness:

The interpersonal relationships are composed of inter-self. Self is the core of personality pattern which provides
integration. This relationship can be studied properly if a person can perceive his own behavioural style and at the same
time how it is perceived by others. Self awareness is a cognitive concept; it describes the self in terms of image, both
conscious and unconscious.
Joseph Luft and Harrington Ingham have developed a diagram to look at one’s personality including behaviours and
attitudes that can be known and unknown to self and known and unknown to others. They named this diagram the Johari
window.

This Johari window comprising of four quadrants is shown in the following diagram.

1. The Open Self:

The open quadrant refers to the behaviours, feelings and motivations of an individual which are known to self and also
known to others in any specific organisational setting. Some individuals are straight forward, open and sharing. He himself
is very clear about what he is doing, what he is feeling and what his motivations are. Similarly others are also very clear
about his actions, feelings and motivations. In such type of interpersonal relationship, chances of conflict, if any, will be
very little.

2. The Blind Self:

The blind self quadrant is unknown to self but known to others. Other people know what is happening to a person, but he
himself is unaware of it. Very often such blind behaviour is copied by individuals from certain significant people
unconsciously right since the childhood.Since such a behaviour is copied unconsciously, people may not be aware of it.
Another reason for this unawareness is that other people are not willing to be open and do not give relevant feed back to
the person concerned. Even if there is a verbal or non-verbal response in the system, the individual may not be in a position
to perceive it. There are chances of interpersonal conflict in this situation.Jongeward and Seyer observes that, “Subtle
bars to our personal effectiveness are often our blind quadrant. We may speak in a certain way with a tone of voice, a
look on our facea gesture-that we are blind to, but other people are acutely aware of it. In fact, our manner can affect
how they perceive us and they believe they can interact with us.”

3. The Hidden Self:

The hidden self is the quadrant which is known to self but not known to others. This is a very private and personal window
because only the person concerned knows what is happening. The individual is aware about the hidden self but does not
want to share it with others. People learn to hide their feeling and ideas right from the childhood. Other people in the
system are unable to perceive the verbal and non-verbal behaviour of the person in quadrant. Like blind self, chances of
interpersonal conflict are there is this situation.

4.The Unknown Self:

This quadrant is unknown to self and unknown to others. The unknown self is mysterious in nature. Sometimes feelings
and motivation go so deep that no one including the person concerned knows about them. In Freudian Psychology, this
would be called the subconscious or unconscious. Many times only a small portion of motivation is clearly visible or
conscious to oneself. People experience unknown parts of life in dreams or deep rooted fears or compulsions. In such
situations, misunderstanding and interpersonal conflict is almost sure to result.

The process that affects the shape of the Johari window is the feedback. This is the extent to which others are willing to
share with the person on how he or she is coming across. It is also the extent to which the person is able to perceive the
verbal and non verbal feedback in the organisational setting.
Another important factor that affects the Johari window is the disclosure. This is the extent to which the persons are
willing to share with the others the data that exist in their organisational system.

Unit IV
MOTIVATION

A motive is a reason for doing something. Motivation is concerned with the strength and direction of behaviour and the
factors that influence people to behave in certain ways. The term ‘motivation’ can refer variously to the goals individuals
have, the ways in which individuals chose their goals and the ways in which others try to change their behaviour.

Motivating other people is about getting them to move in the direction you want them to go in order to achieve a result. Motivating
yourself is about setting the direction independently and then taking a course of action that will ensure that you get there.
Motivation can be described as goal-directed behaviour. People are motivated when they expect that a course of action is likely
to lead to the attainment of a goal and a valued reward – one that satisfies their needs and wants.

Types of motivation
The two types of motivation are intrinsic motivation and extrinsic motivation.
Intrinsic motivation

Intrinsic motivation can arise from the self-generated factors that infl uence people’s behaviour. It is not created by external
incentives. It can take the form of motivation by the work itself when individuals feel that their work is important, interesting and
challenging and provides them with a reasonable degree of autonomy (freedom to act), opportunities to achieve and advance, and
scope to use and develop their skills and abilities. Deci and Ryan (1985) suggested that intrinsic motivation is based on the needs
to be competent and self-determining (that is, to have a choice).
Intrinsic motivation can be enhanced by job or role design. According to an early writer on the significance of the motivational
impact of job design (Katz, 1964): ‘The job itself must provide sufficient variety, sufficient complexity, sufficient challenge and
sufficient skill to engage the abilities of the worker.’ In their job characteristics model, Hackman and Oldham (1974) emphasized
the importance of the core job dimensions as motivators, namely skill variety, task identity, task significance, autonomy and
feedback.

Extrinsic motivation

Extrinsic motivation occurs when things are done to or for people to motivate them. These include rewards, such as incentives,
increased pay, praise, or promotion; and punishments, such as disciplinary action, withholding pay, or criticism.
Extrinsic motivators can have an immediate and powerful effect, but will not necessarily last long. The intrinsic motivators, which
are concerned with the ‘quality of working life’ (a phrase and movement that emerged from this concept), are likely to have a
deeper and longer-term effect because they are inherent in individuals and their work and not imposed from outside in such forms
as incentive pay.

Motivation theories
There are a number of motivation theories which, in the main, are complementary to one another,we have to study two out of
them:
1.) Content theory
2.) Process theory

Content (needs) theory

The theory focuses on the content of motivation in the shape of needs. Its basis is the belief that an unsatisfied need creates
tension and a state of disequilibrium. To restore the balance a goal is identified that will satisfy the need, and a behaviour
pathway is selected that will lead to the achievement of the goal and the satisfaction of the need. All behaviour is therefore
motivated by unsatisfied needs. This process is modelled in Figure 19.1 below:

There are three points that emerge from this model.

First, people have a multiplicity of needs depending on themselves and the situation they are in. Second, they can select all sorts
of goals and actions to satisfy those needs. Third, while we can observe their behaviour we cannot be certain of the needs and
goals that motivated it. It is unwise to assume that any one approach to motivation will appeal to all affected by it. Motivation
policies and practices must recognize that people are different.
Maslow’s hierarchy of needs

The most famous classification of needs is the one formulated by Maslow (1954). He suggested that there are five major
need categories that apply to people in general, starting from the fundamental physiological needs and leading through a
hierarchy of safety, social and esteem needs to the need for self-fulfillment/self -actualization, the highest need of all.
When a lower need is satisfied the next highest becomes dominant and the individual’s attention is turned to satisfying
this higher need. The need for self-fulfillment, however, can never be satisfied. ‘Man is a wanting animal’; only an
unsatisfied need can motivate behaviour and the dominant need is the prime motivator of behaviour. Psychological
development takes place as people move up the hierarchy of needs, but this is not necessarily a straightforward
progression. The lower needs still exist, even if temporarily dormant as motivators, and individuals constantly return to
previously satisfied needs.
Maslow’s needs hierarchy has an intuitive appeal and has been very popular.

But it has not been verified by empirical research such as that conducted by Wahba and Bridwell (1979), and it has been
criticized for its apparent rigidity (different people may have different priorities and it is difficult to accept that needs
progress steadily up the hierarchy) and for the misleading simplicity of Maslow’s conceptual language. In fact, Maslow
himself expressed doubts about the validity of a strictly ordered hierarchy.

Herzberg’s motivation - hygiene theory

The Herzberg’s Motivation-Hygiene Theory is given by Fredrick Herzberg and his associates, who studied the variables
that are perceived to be desirable to achieve goals and the undesirable conditions to avoid.
In this context, the study was conducted wherein the experiences and feelings of 200 engineers and accountants were
analyzed. They were asked to share their previous job experiences in which they felt “exceptionally good” or “exceptionally
bad.” Through this study, Herzberg concluded that there are two job conditions independent of each other that affect the
behavior differently.

The first set of job conditions has been referred to as maintenance or hygiene factor, wherein the same job conditions
provide the same level of dissatisfaction, in case the conditions are absent, however, their presence does not motivate in
a strong way.

The second set of job conditions is referred to as motivational factors, which primarily operate to build strong motivation
and high job satisfaction, but their absence does not result in strong dissatisfaction.

Hygiene Factors: Herzberg identified ten maintenance or hygiene factors that are not intrinsic parts of a job, but are
related to the conditions in which the job has to be performed. These are company policy and administration, technical
supervision, job security, working conditions, interpersonal relationship with peers, subordinates and supervisors, salary,
job security, personal life, etc.

Motivational factors: These factors have a positive effect on the functioning of the employees in the organization. There
are six factors that motivate employees: Achievement, Recognition, Advancement, Work-itself, Possibility of growth and
Responsibility. An increase in these factors satisfies the employees and the decrease in these will not affect the level of
satisfaction.

Thus, Herzberg’s Motivation-Hygiene Theory studied the variables which were responsible for the level of satisfaction and
had been applied in the industry that has given several new insights.

Some common criticisms of Herzberg’s Motivation Theory include:

  The theory only applies to white collar workers.
 It doesn’t take an individual’s situation or perception into consideration. We have attempted to address this
above by applying the theory at an individual level.
 The theory focuses on improving employee satisfaction. That doesn’t necessarily translate into increased
productivity.
 There is no objective way to measure employee satisfaction within the theory.
 Two Factor Theory is subject to bias. For example, when an employee is satisfied they will give themselves credit
for that satisfaction. Conversely, when they are dissatisfied they will blame external factors.

McClelland’s Achievement Motivation Theory/Need Theory

McClelland’s Needs Theory was proposed by a psychologist David McClelland, who believed that the specific needs of
the individual are acquired over a period of time and gets molded with one’s experience of the life. McClelland’s Needs
Theory is sometimes referred to as Three Need theory or Learned Needs Theory.

McClelland has identified three basic motivating needs, Viz. Need for Power, Need for Affiliation and Need for
Achievement and, along with his associates performed a considerable research work on these basic needs.

Need for Power (n-pow): What is Power? Power is the ability to induce or influence the behavior of others. The people
with high power needs seek high-level positions in the organization, so as to exercise influence and control over others.
Generally, they are outspoken, forceful, demanding, practical/realistic-not sentimental, and like to get involved in the
conversations.

Need for Affiliation (n-affil): People with high need for affiliation derives pleasure from being loved by all and tend to
avoid the pain of being rejected. Since, the human beings are social animals, they like to interact and be with others
where they feel, people accept them. Thus, people with these needs like to maintain the pleasant social relationships,
enjoy the sense of intimacy and like to help and console others at the time of trouble.

Need for Achievement (n-ach): McClelland found that some people have an intense desire to achieve. He has identified
the following characteristics of high achievers:

 High achievers take the moderate risks, i.e. a calculated risk while performing the activities in the management context.
This is opposite to the belief that high achievers take high risk.
 High achievers seek to obtain the immediate feedback for the work done by them, so as to know their progress towards
the goal.
 Once the goal is set, the high achiever puts himself completely into the job, until it gets completed successfully. He will
not be satisfied until he has given his 100% in the task assigned to him.
 A person with a high need for achievement accomplishes the task that is intrinsically satisfying and is not necessarily
accompanied by the material rewards. Though he wants to earn money, but satisfaction in the accomplishment of work
itself gives him more pleasure than merely the cash reward.
Hence, McClelland’s Needs Theory posits that the person’s level of effectiveness and motivation is greatly influenced by
these three basic needs.

Alderfer’s ERG Theory

It is the extension of Maslow’s Needs Hierarchy, wherein the Maslow’s five needs are categorized into three categories,
Viz. Existence Needs, Relatedness Needs, and Growth Needs.

An American psychologist Clayton Paul Alderfer had proposed this theory and believed that each need carries some value
and hence can be classified as lower-order needs and higher-order needs. He also found some level of overlapping in the
physiological, security and social needs along with an invisible line of demarcation between the social, esteem and self-
actualization needs. This led to the formation Alderfer’s ERG theory, which comprises of the condensed form of Maslow’s
needs.

Existence Needs: The existence needs comprises of all those needs that relate to the physiological and safety aspects of
human beings and are a prerequisite for the survival. Thus, both the physiological and safety needs of Maslow are grouped
into one category because of their same nature and a similar impact on the behavior of an individual.

Relatedness Needs: The relatedness needs refer to the social needs that an individual seeks to establish relationships with
those for whom he cares. These needs cover the Maslow’s social needs and a part of esteem needs, derived from the
relationship with other people.

Growth Needs: The growth needs cover Maslow’s self-actualization needs as well as a part of esteem needs which are
internal to the individual, such as a feeling of being unique, personnel growth, etc. Thus, growth needs are those needs
that influence an individual to explore his maximum potential in the existing environment.

Process Theories
Vroom’s Expectancy Theory
Vroom’s Expectancy Theory was proposed by Victor. H. Vroom, who believed that people are motivated to perform
activities to achieve some goal to the extent they expect that certain actions on their part would help them to achieve the
goal.

Vroom’s Expectancy Theory is based on the assumption that an individual’s behavior results from the choices made by
him with respect to the alternative course of action, which is related to the psychological events occurring simultaneously
with the behavior. This means an individual selects a certain behavior over the other behaviors with an expectation of
getting results, the one desired for.

Thus, Vroom’s Expectancy Theory has its roots in the cognitive concept, i.e. how an individual processes the different
elements of motivation. This theory is built around the concept of valence, instrumentality, and Expectancy and, therefore,
is often called as VIE theory.

The algebraic representation of Vroom’s Expectancy theory is:

Motivation (force) = ∑Valence x Expectancy

Valence: It refers to the value that an individual places on a particular outcome or a strength of an individual’s preference
for the expected rewards of the outcome. To have a positive valence, one should prefer attaining the outcome to not
attaining it. For example, if an employee gets motivated by promotions, then he might not value offers of increased
incentives. The valence is zero if an individual prefers not attaining outcomes to attaining it. In the above example, an
employee agrees with the increased incentives.

Instrumentality: Another major input into the valence is the instrumentality of first level outcome in obtaining the second
level outcome, i.e. a degree to which the first level leads to the second level outcome. For example, suppose an employee
desires promotion and he feel that superior performance is a key factor to achieve the goal. Thus, his first level outcomes
are superior, average and poor performance and the second level outcome is the promotion.

Hence, the first level outcome of high performance acquires the positive valence so as to have the expected relationship
with the second level outcome of the promotion. Thus, an employee will be motivated to perform efficiently with a desire
to get promoted.
 Expectancy: Expectancy, another factor that determines the motivation, refers to the probability that a particular action
will lead to the desired outcome. The expectancy is different from the instrumentality in the sense; it relates efforts to the
first level outcome, whereas the instrumentality relates to first and second-level outcomes to each other. Thus,
expectancy is the probability that a particular action will lead to a particular first-level outcome.

Adam’s Equity Theory

The Adam’s Equity Theory posits that people maintain a fair relationship between the performance and rewards in
comparison to others. In other words, an employee gets de-motivated by the job and his employer in case his inputs are
more than the outputs.

The Adam’s Equity Theory was proposed by John Stacey Adams, and is based on the following assumptions:

 Individuals make contributions (inputs) for which they expect certain rewards (outcomes).
 To validate the exchange, an individual compares his input and outcomes with those of others and try to rectify the
inequality.
There are three types of exchange relationships that arise when an individual input/outcomes are compared with that of
the other persons.

1. Overpaid Inequity: When an individual perceives that his outcomes are more as compared to his inputs, in relation to
others. The overpaid inequity can be expressed as:

2. Underpaid Inequity: When an individual perceives that his outcomes are less as compared to his inputs, in relation to

others. The Underpaid Equity can be expressed as:

3. Equity: An individual perceives that his outcomes in relation to his inputs are equal to those of others. The equity can be

expressed as Thus, Adam’s equity theory shows the

level of motivation among the individuals in the working environment. An individual is said to be highly motivated if he
perceives to be treated fairly. While the feelings of de-motivation arise, if an individual perceives to be treated unfairly in
the organization.
Thus, an individual’s level of motivation depends on the extent he feels being treated fairly, in terms of rewards, in
comparison to others.

Operant Conditioning/Reinforcement Theory of Motivation

The Reinforcement Theory of Motivation was proposed by B.F. Skinner and his associates. This theory posits
that behavior is the function of its consequences, which means an individual develops a behavior after performing
certain actions.

The reinforcement theory of motivation is based on the “Law of Effect” concept, i.e. an individual is likely to
repeat those actions having the positive consequences, and will avoid those behaviors that result in negative or
unpleasant outcomes.

The behaviors that elicit consequences is called as operant behavior and reinforcement theory work on the
relationship between the operant behavior and the associated consequences and, therefore, is often called
as Operant Conditioning. Operant conditioning means, the change in the behavior caused due to the
reinforcement (Positive reward or punishment) given after the response.

The reinforcement theory lay emphasis on the environmental factors that shape the behaviors and thus, Skinner
believed that environment external to the organization must be designed effectively so as to increase the
motivation among the employees.

Thus, the reinforcement theory of motivation mainly focuses on what happens when an individual takes some
action. It is observed, that people tend to repeat those activities which gives them pleasure and avoid the
activities with negative consequences.

Goal theory

Goal theory as developed by Latham and Locke (1979) states that motivation and performance are higher when individuals
are set specific goals, when goals are difficult but accepted, and when there is feedback on performance. Participation in
goal setting is important as a means of getting agreement to the setting of higher goals. Difficult goals must be agreed and
their achievement reinforced by guidance and advice. Finally, feedback is vital in maintaining motivation, particularly
towards the achievement of even higher goals. Goal theory is in line with the 1960s concept of management by objectives
(a process of managing, motivating and appraising people by setting objectives or goals and measuring performance
against those objectives). But management by objectives or MBO fell into disrepute because it was tackled
bureaucratically without gaining the real support of those involved and, importantly, without ensuring that managers
were aware of the significance of the processes of agreement, reinforcement and feedback, and were skilled in practising
them. Goal theory, however, plays a key part in performance management.

Unit V
Leadership

The ability to create a vision and influence, motivate, inspire and transform others to achieve certain goals towards that
vision is known as leadership.”

Leadership is the specific set of skills and attributes which can be acquired through learning.

Who is a Leader?

A Leader is a person who guides others and motivates them to achieve specific goals to accomplish his vision.
 Qualities of a Good Leader

 Proactive
 Ability to Inspire
 Clear Vision
 Good Communication Skills
 Confident
 Self Driven
 Decision Maker
 Responsible
 Learner
 Patient Listener
 Commitment
 Never Give Up Attitude
 Trustworthy

Leadership Process
I. Evaluate and assess the organisation’s position
II. Take initiative
III. Create a vision
IV. Set objectives to accomplish the vision
V. Formulate strategies to achieve objectives
VI. Develop a change process or tactics
VII. Explain the need for change to the employees
VIII. Motivate and inspire the employees to bring the desired change
IX. Implement the strategies
X. Analyze the results

Leadership Styles
1. Supportive Leadership: Leaders are more attentive towards the welfare and individual needs of the subordinates.
2. Directive Leadership: Leaders establish the standards of performance for the subordinates and expect them to adhere
to the rules and regulations. They provide complete guidance to the subordinates.
3. Achievement-oriented Leadership: Leaders usually set challenging goals for the subordinates, expecting their constant
improvement in performance. They have confidence that the subordinates will perform excellently.
4. Participative or Democratic Leadership: Leaders invite opinions and suggestions from the subordinates while making
decisions.
5. Autocratic or Authoritative Leadership: Leaders have the complete hold over the subordinates and do not entertain
opinions, suggestions, questions and complains. They take all the decisions solely without the participation of
subordinates.
6. Strategic Leadership: Strategic leaders frame a set of strategies towards their vision and motivate subordinates to
accomplish that vision.
7. Charismatic Leadership: Charismatic Leader has an extraordinary and powerful personality and acts as a role model for
his followers who follow him blindly.
8. Laissez-faire or Delegative Leadership: Leaders are lenient and assign authority and responsibility to the subordinates.
The subordinates are free to work as they like to and take their own decisions with the minimal interference of the
management. Laissez-faire is one of the least effective styles of leadership.
9. Transformational Leadership: Transformational Leaders initiates a revolutionary change in the
behaviour, perception and attitude of the subordinates. They motivate and inspire the subordinates to develop their
own skills to perform better and ultimately accomplish the vision of the organisation.
10. Transactional Leadership: Transactional Leaders believe in motivating subordinates through rewards and incentives and
discouraging them through punishments.
11. Coaching Leadership: A Coaching Leader is well experienced in his role and is focussed on the long-term growth of his
subordinates.
12. Cross-cultural Leadership: In today’s global scenario, Cross-cultural Leaders keep themselves updated and aware of the
different cultures around the world, and uses this knowledge to lead culturally diverse teams.
13. Visionary Leadership: A Visionary Leader communicates his vision for the organisation to his followers and intellectually
influences them to become self-driven towards the shared vision.
14. Bureaucratic Leadership: Bureaucratic leaders use their position to exercise power and strict control over the
subordinates. The subordinates have to be in complete discipline and are promoted on the basis of their capability to
comply with the rules and regulations of the organisation.

Theories of Leadership
The Trait Theory
Ralph M. Stogdill proposed the trait theory of leadership in the late 1940s; he explained that an individual must possess
the key personality traits and characteristics to be an effective leader and these traits are inherent by birth.
Some of the core leadership traits based on this theory can be categorised as follows:

o Physiological traits: Height, weight, structure, colour, appearance and so forth.

o Socioeconomic characteristics: Gender, religion, marital status, age, occupation, literacy and earnings.
o Personality traits: Extraversion, self-confidence, patience, agreeable, reliable, honesty and leadership motivation.
o Intellectual traits: Decisiveness, intelligence, judgemental ability, knowledge and emotional attribute.
o Task-related traits: Attainment drive, dedication, initiative, determination and business expertise.
o Social characteristics: Socially active, cordiality and cooperation.
o Some of the other traits being charisma, adaptiveness, creativity, uniqueness.
This theory was criticised since it neglected the environmental factors which may not always remain the same. The list of
traits is quite vast and keeps on changing from time to time. It was unable to explain failures despite possessing the certain
traits specified in the theory. Moreover, of the identified traits can be acquired through learning and training.

Behavioural Theory
 The behavioural theory of leadership evolved in the 1950s. After understanding that the personal traits of a leader are
essential for effective leadership, the researchers were now keen to know that what leaders do to become effective
leaders
Thus, they now focused on the leader’s behaviour rather than traits. To study the behaviour of leaders, two major
research programs were started by two different universities namely, the Ohio State Leadership Studies and the
University of Michigan Studies.

The Ohio State University Studies: A group of researchers at Ohio State University prepared a questionnaire to
be surveyed in military and industrial setups, to determine the perception of the subordinates for the actual behaviour of
their leaders. From their findings, the researchers identified two major categories of leader behaviour:

o Consideration: The leaders are attentive towards their subordinates and build up an excellent inter-personnel relationship
with them. They are very supportive and friendly. This was termed as ‘people-oriented behaviour’.
o Initiating structure: The leaders are majorly concerned about the achievement of goals and schedule and structure work
accordingly. For such leaders, subordinates are just resources, and they have to make the optimal utilisation of them. This
was termed as ‘task-oriented behaviour’.

The University of Michigan Studies: This study is based on how the leader’s behaviour is related to group
performance. Researchers made a comparison of effective managers with the ineffective ones and found that the two can
be discriminated on the basis of their behaviour, i.e. job-centric behaviour and organisational-member centric behaviour.
The study further resulted in the identification of four additional behaviours essential for effective leadership which are:

o Support
o Goal emphasis
o Work facilitation
o Interaction facilitation

Blake and Mouton’s Leadership Grid: Robert R. Blake and Jane S. Mouton gave the Leadership/Managerial Grid
Theory and discovered the five different styles of leadership by categorising the managers into 81 possible ways arising
out of the combination of rating depending on two variables, concern for people and concern for results.
 Following are the various styles of Leadership according to this model:

o Indifferent: Neither the attention is paid towards the work, nor towards the employees, it is the most ineffective style of
leadership.
o Controlling or the country club: All that matters is the well-being of the staff.
o Accommodating or task oriented: All that matters is production and output.
o Status Quo or balance: Moderate and equal importance and attention are given to work as well as employee welfare.
o Sound: A high level of concern is shown towards both, the output as well as the employees, it is the most effective style
of leadership.

Contingency Theory

Contingency theories of leadership state that effective leadership comprises of all the three factors, i.e. traits, behaviour
and situation. A leader’s behaviour varies as per the situation. To support this theory of leadership various models were
developed, and multiple studies were conducted in this direction.
 Transactional Leadership Theory
Transactional Leadership Theory emphasizes the realization of a desired outcome and result. The leaders motivate the
followers by way of a reward system, i.e. rewarding the performers and punishing the non-performers.
The theory emphasizes maintaining a cordial relationship with the followers, leaders and followers must work mutually to
meet organisational goals.

Transformational Leadership Theory

The transformational theory states that a leader is effective only if he can transform or change the perceptions, behaviour
and expectations of the followers and direct them towards a common goal which will lead to the accomplishment of the
leader’s vision. Such leaders have a charismatic and influential personality.
Following are the key factors behind Transformational Leadership:

o Psychological transformation: Bring about a change in the perception and mindset of the follower.
o Influential: Creates a strong impact on the followers.
o Motivational: Generates positive energy within followers.
o Inspirational: Encourages them to achieve something.
o Individual impact: Creates a powerful effect on the behaviour and perception of the followers.
 Unit VI
Group

A Group is basically an assemblage of people. It can be understood as a collection of individuals (two or more), who come
together and interact with each other, so as to achieve the objectives of the organization. These are the foundation of an
organization.
Characteristics of Groups

 Size: To form a group, it must be having at least two members. Practically, the number of group members ranges from 15
to 20. The more the members in the group, the more complex it is to manage.
 Goals: Every group has certain goals, that are the reasons for its existence.
 Norms: A group has certain rules, for interacting with the group members.
 Structure: It has a structure, based on the roles and positions held by the members.
 Roles: Every member of a group has certain roles and responsibilities, which are assigned, by the group leader.
 Interaction: The interaction between the group members can occur in several ways, i.e. face to face, telephonic, in writing
or in any other manner.
 Collective Identity: A group is an aggregation of individuals, which are separately called as members, and collectively
called as a group.

Types of Groups
Formal Groups

Groups that are formed consciously by the management, with an aim of serving an organizational objective. These are
further classified as:

o Self-directed teams: The group of employees which are so authorised to make decisions, on their own, as it is
independent and self-governing in nature.
o Quality Circles: A number of employees classed together belonging to the same field, who meet every week for an hour,
to talk about their problems, identify the causes and find out solutions, to take necessary steps in this regard.
o Committees: An association of people created by the management for different matters to identify and discuss the
issues of the company and arrive at a conclusion. It can be:
o Standing Committee
o Advisory Committee
o Audit Committee
o Grievance Committee
o Adhoc Committee
o Task force: It is a temporary committee, wherein people belonging to different fields are grouped together for the
performance of the task.

Informal Groups:
 The social and psychological variables operating at the workplace, results in the formation of informal groups. The
creation of these groups is spontaneous due to the common interest, social needs, physical proximity and mutual
attraction.
Apart from the two broad classifications of the group, they are also divided into the primary groups, secondary groups,
membership groups, reference groups and interest groups.

Reasons for Group Formation

 Personal Characteristics: Individuals with similar beliefs, attitudes and values are more likely to form groups.
 Opportunity for interaction: If the employees of an organization, are given an opportunity to interact with one another,
they find that they have many things similar, which also creates a group.
 Interest and goals: When individuals share common interest and goals, it requires cooperation and coordination for its
achievement, which also results in the formation of groups.
 Influence and power: Last but not the least, a group has more influence and power, as compared to an individual, which
also promotes its formation.

Reasons for Joining a group

#1 Security
Probably the most important reason for joining groups is security reason. By joining groups, individuals can reduce the
insecurity of ‘Standing Alone’. People feel stronger, have fewer self-doubts, and are more resistant to threats when they
are part of the groups.

#2 Status
Groups provide recognition and status to their members. Where works of group’s members are clearly shown to
everyone. Members can make their position inside and outside of groups.

#3 Self-Esteem
Groups provide an individual a feeling of self-worth. A member is able to know his value. In addition to conveying the
status to those outside groups, membership can also give an increased feeling of worth to the members themselves.

#4 Affiliation
Groups can fulfill social needs. People enjoy the regular interaction that comes with group members. For many people,
on-the-job interactions are their primary means of fulfilling their needs for affiliation.

#5 Power
A group represents power, what can’t be achieved individually often becomes possible through the group’s actions.
Individuals may align with others to protect themselves from unreasonable demands by the management.

For an individual who wants to influence others, a group can offer him/her power without a formal position, or authority
in the organization.

#6 Goal Achievement
People may join groups for goal achievement. When it takes more than one person’s talents, knowledge, or power to
complete the job, the stated goal can be achieved easily.
Group Cohesiveness
Group cohesiveness is one of the characteristic features of the groups, which is very important from behavioristic point
of view. Cohesiveness is the degree to which the group members are attracted to each other and are motivated to stay
in the groups. Cohesiveness defines the degree of closeness that the members feel with the groups. It is understood as
the extent of liking each member has towards others in the group and how far everyone wants to remain as a member
of the group.
“Cohesiveness refers to the extent of unity ‘in the group and is reflected in members’ conformity to the norms of the
group, feeling of attraction for each other and wanting to be co-members of the group.” Attraction, cohesiveness and
conformity are all intertwined. The more the members feel attracted to the group, the greater will be the group
cohesiveness. The greater the cohesiveness, the greater the influence of the group members to persuade one another to
conform to the group norms. The greater the conformity, the greater the identity of the members to the group and the
greater the group cohesiveness.

Consequences of Cohesiveness:
Group cohesiveness has only positive consequences.

1.More Participation:
Higher the degree of group cohesiveness, closer will be the interpersonal relationships among the members. As a result
members will participate actively in group affairs and activities. As the members consider the group as their own, just
like a family, they will help other members of the group in times of need which will further strengthen their bonds. The
turnover of members will be very low. If possible, all the members attend the group meetings and group activities and
take active part in discussions relating to preparing of strategies for achieving individual and group goals.
2. More Conformity:
One of the factors which influence cohesiveness is similarity of attitudes and values. As a result, members tend to like
each other and perceive themselves as similar. These characteristics lead members to be relatively dependent on the
group for satisfaction and, thus, they are susceptible to being influenced. For example, if any member is getting involved
in organisational politics for enhancing his personal goals, the group might put social pressure on him and make him
comply with the group norms.
3. More Success:
Cohesiveness and success are mutually dependent upon each other. Cohesiveness makes the goal achievement easier
and goal achievement adds to success. The reason for this relationship is that higher degree of cohesiveness leads to
high degree of communication, participation and conformity to group norms. Such coordinated efforts result in
agreement about the goals to be achieved, the methods of achieving them and finally achieving the final goals.
4. More Communication:
Members of cohesive groups communicate with each other more than the members of non-cohesive groups. Because
the members share common ideologies, goals, backgrounds or attitudes, they are inclined to greater
communicativeness. Such communication is reinforcing as it tends to foster and cement positive social relations as well
as depth in personal relationships.
5. More Personal Satisfaction:
Members of cohesive groups are more satisfied as compared to members of non-cohesive groups. Thus is
understandable because if members are not satisfied they will leave the group and join some other group. Members are
more satisfied due to so many factors which include friendliness, respect, support, achievement, protection and a
feeling of security.
6. High Productivity:
Cohesiveness may contribute to increased productivity because:
(i) People in cohesive groups experience fewer work related anxieties and tensions
(ii) Highly cohesive groups tend to have lower absenteeism and turnover and
(iii) Cohesiveness decreases productivity differences among groups.

Studies consistently show that the relationship of cohesiveness and productivity depends on the performance related
norms established by the group. If performance related norms are high, a cohesive group will be more productive than
will a less cohesive group. But if cohesiveness is high and performance norms are low, productivity will be low.
If cohesiveness is low and performance norms are high, productivity increases but less than in high cohesiveness-high
norms situation. Where cohesiveness and performance related norms are both low, productivity will tend to fall into the
low to moderate range.
The worst situation for the manager is a highly cohesive group with low performance norms. Here members are highly
motivated to work for their personal satisfaction only not for the organizational goals. Here the success of the
management will depend upon how to direct the activities of highly cohesive group towards the successful attainment
of organisational goals.

These conclusions are summarized in the following figure:

Managerial Actions for Increasing or Encouraging Cohesiveness:

A manager can follow any one or more of the following suggestions to encourage cohesiveness:

1. Make the group smaller

2. Encourage agreement with group goals
3. Increase the time members spend together
4. Increase the status of the group and the perceived difficulty of getting membership of the group
5. Stimulate competition with other groups.
6. Give rewards to the group rather than to members.
7. Physically isolate the group
8. Increase membership homogeneity
9. Increase interaction among members

Managerial Actions to Decrease or Discourage Cohesiveness:

Sometimes high cohesiveness adversely affects the productivity. In such cases managers have to reduce the
cohesiveness of the groups.

Following are some of the actions which can be taken by the managers:
1. Induce disagreement on group goals
2. Increase membership heterogeneity
3. Restrict interactions among members
4. Increase group size
5. Reduce the time members spend together
6. Allocate rewards to individuals rather than to group member.
7. Remove physical isolation
8. Disband the group
9. Introduce a dominating member

Group Think

Sometimes we feel like speaking up in a meeting, classroom, or informal group, but decide against it. Why?
Mainly due to shyness, or we may have been victim of groupthink. The phenomenon that arises when group members
become so enamored of seeking concurrence that the norm for consensus alters the realistic appraisal of substitute
courses of action and the full expression of deviant, minority or unpopular views.
It worsens an individual’s mental efficiency, reality, testing, and moral judgment due to group pressure.
The symptoms of the groupthink phenomena are −
 Group members justify any resistance to the assumptions they have made. No matter how firmly the evidence
contradicts their basic assumptions, members behave in way so as to reinforce those assumptions continually.
 Members apply direct pressure on those who briefly present their doubts about any of the views shared by the
group or the one who question’s the validity of arguments supporting the substitute favored by the majority.
 Members reserving doubt or holding contradicting viewpoints seek to avoid deviation from what appears to be
group consensus, by maintaining silence about misgivings and minimizing the importance of their doubts to
themselves.
 An illusion of unanimity appears in the picture. If someone doesn’t speak, it is assumed that he or she is in favor.
In other words, silence becomes viewed as a ‘Yes’ vote.

Risky/Group Shift
Risky shift was coined by James Stoner in 1961.
In balancing group decisions with the individual decisions of members within the group, evidence hints that there are
differences. In some cases, the group decisions are more timid than the individual decisions. More often, the shift is close
to greater risk.
What appears to happen in groups is that the discussion results in a significant shift in a position of members towards a
more extreme position in the direction in which they were already leaning before the discussion.
So conservative types become more cautious and the more intrusive types take on more risk. The group discussion tends
to fabricate the initial position of the group.
Group shift is the phenomena in which individual decisions make way for exaggerated group decisions. Group shift can
be seen as a special case of groupthink.
The decision of the group shows the dominant decision-making norm that is developed during the group’s discussion.
Whether the shift in the group’s decision is towards greater deliberation or more risk depends on the dominant pre-
discussion norm.
The greater episode of the shift towards risk has generated several explanations for the phenomenon. It has been argued,
for instance, that the discussion creates familiarization between members. As they become more comfortable with each
other, they also become more bold, confident and daring.
Group decisions free any single individual from accountability for the group’s final choice. Greater risk can be taken as
even if the decision fails, no single individual can be held wholly responsible.
Techniques to Eliminate Groupthink & Groupshift
In order to eliminate group think and group shift from a group, we can use four different techniques that will help us
make a collaborative decision that is best for the group. These techniques are −

 Brainstorming
 Nominal group thinking
 Didactic technique
 Delphi technique
Brainstorming
This technique includes a group of people, mostly between five and ten in number, sitting around a table, producing ideas
in the form of free association. The main focus is on generation of ideas and not on evaluation of these ideas.
If more ideas can be originated, then it is likely that there will be a unique and creative idea among them. All these ideas
are written on the blackboard with a piece of chalk so that all the team members can see every idea and try to improvise
these ideas.
Brainstorming technique is very effective when the problem is comparatively precise and can be simply defined. A
complex problem can be divided into parts and each part can be dealt with separately at a time.
Nominal Group Thinking
This technique is similar to brainstorming except that this approach is more structured. It motivates individual creativity.
Members form the group for namesake and operate independently, originate ideas for solving the problem on their own,
in silence and in writing. Members do not communicate well with each other so that strong personality domination is
evaded.
The group coordinator either collects the written ideas or writes them on a large blackboard so that each member of the
group can see what the ideas are.
These ideas are further discussed one by one in turn and each participant is motivated to comment on these ideas in
order to clarify and improve them. After all these ideas have been discussed, they are evaluated for their merits and
drawbacks and each actively participating member is needed to vote on each idea and allot it a rank on the basis of
priority of each alternative solution.
The idea with the highest cumulative ranking is selected as the final solution to the problem.
Didactic Interaction
This technique is applicable only in certain situations, but is an excellent method when a situation actually demands it.
The type of problem should be such that it generates output in the form of yes or no. Say for example, a decision is to be
made whether to buy or not to buy a product, to merge or not to merge, to expand or not to expand and so on. These
types of decision requires an extensive and exhaustive discussion and investigation since a wrong decision can have
serious consequences.
There are many advantages as well as disadvantages of this type of situation. The group that makes the decision is divided
into two sub-groups, one in favor of the “go” decision and the opposing in favor of the “no go” decision.
The first group enlists all the “pros” of the problem solution and the second group lists all the “cons”. These groups meet
and discuss their discoveries and their reasons.
 After tiring discussions, the groups switch sides and try to find weaknesses in their own original standpoints. This
interchange of ideas and understanding of various viewpoints results in mutual acceptance of the facts as they exist so
that a solution can be put together around these facts and ultimately a final decision is reached.
Delphi Technique
This technique is the improvised version of the nominal group technique, except that it involves obtaining the opinions
of experts physically distant from each other and unknown to each other.
This isolates group members from the undue influence of others. Basically, the types of problems sorted by this technique
are not specific in nature or related to a particular situation at a given time.
Say for example, the technique could be used to explain the problems that could be created in the event of a war. The
Delphi technique includes the following steps −
 The problem is first identified and a panel of experts are selected. These experts are asked to provide potential
solutions through a series of thoughtfully designed questionnaires.
 Each expert concludes and returns the initial questionnaire.
 The results of the questionnaire are composed at a central location and the central coordinator prepares a second
set of questionnaire based on the previous answers.
 Each member receives a copy of the results accompanied by the second questionnaire.
 Members are required to review the results and respond to the second questionnaire. The results typically trigger
new solutions or motivate changes in the original ideas.
 The process is repeated until a general agreement is obtained.

Unit VII
Decision Making
Decision Making is the cognitive process of selecting a course of action, out of a set of available alternatives, so as to
achieve the goals of the organization.
It is an indispensable part of the management, as decisions are made at each level by the management executives.

Characteristics of Decision Making

The characteristics of decision making are discussed as under:

 Selective: It is a selective process in which the optimal alternative is opted, among the various alternatives. The selection
of the alternative is done, only after evaluating all the alternatives against the objectives.
 Cognitive: As the decision making encompasses the application of intellectual abilities, such as analysis, knowledge,
experience, awareness and forecasting, it is a cognitive process.
 Dynamic: It is a dynamic activity in the sense that a particular problem may have different solutions, depending upon the
time and circumstances.
 Positive or Negative: A decision is not always positive, sometimes even after analysing all the points a decision may turn
out as a negative one.
 Ongoing process: We all know that a company has perpetual succession and various decisions are taken daily by different
levels of management to keep the firm going. These decisions are taken, keeping in mind the objectives of the
organization.
 Evaluative: Evaluation of the possible alternatives using critical appraisal methods, is a part of the decision-making
process.

Process of Decision Making

Decision making involves the identification and selection of the alternatives on the basis of the values, preferences,
requirements, and beliefs. To begin the process objectives must be defined, classified and arranged in the order of their
importance.

1. Defining the problem: The first and foremost step in the decision-making process is to clearly identify the problem for
which a decision has to be taken.
2. Collecting information: Gathering the relevant information concerning the problem is the next step in the process. For
this purpose, an internal assessment needs to be done, while seeking external sources for the information.
3. Identifying alternatives: After collecting the pertinent information, you will come across the multiple courses of action
which can be taken to solve the given problem.
4. Weighing the alternatives: On the basis of different parameters such as risk, economy for effort, timing, and limitation
of resources weigh each alternative and check how accurately it resolves the issue and what are its consequences.
5. Selecting the best possible option: After weighing each and every alternative, the next step in this process is to select
the best possible course of action, or a combination thereof. The alternative which is able to attain the objectives is
regarded as the tentative decision, which is evaluated for possible consequences.
6. Planning and Execution: To convert the decision into action, the course of action so selected is taken, along with that
supplementary actions are taken to block negative consequences (if any).
7. Taking the follow up of the action: In the last step, the outcome of the decision is reviewed and evaluated as to whether
it is capable of resolving the problem.

Types of Decision Making

The managers or non-managers have to make decisions at some point to get their organizational goals done. These
decisions are categorized further. The types of decision making in an organization are as follows:

1. Programmed And Non-Programmed Decisions:

Programmed decisions are routine and repetitive in nature. These decisions deal with common and frequently occurring
problems in an organization such as buying behaviour of consumers, sanctioning of different types of leave to
employees, purchasing decisions, salary increment, etc.

Non-programmed decisions are not routine or common in nature. These are related to exceptional situations in which
guidelines or routine management is not set. For example, problems arising from a decline in market share, increasing
competition in the business environment. The majority of the decisions taken by managers do fall in this non
programmed category.

2. Operational and Strategic Decisions:

Operational decisions are just the normal functioning of the organization. These decisions do not require much time and
take a shorter time as compared to other decisions taken. Ample of responsibilities are delegated to subordinates. The
main decision is to create harmony in an organization and to see whether the management is proper or not.

Strategic decisions include all present issues and problems. The main idea is to achieve better working conditions, better
equipment, and efficient use of existing equipment, etc. These all fall under this category. Usually, strategic decisions are
taken by top-level management.

3. Organizational and Personal Decisions:

If the decision is taken collectively keeping in mind the organizational goal, it is known as the organization goal, and if
the manager takes any decision in the personal capacity (affecting his/her life). It is known as personal decisions. These
decisions may sometimes affect the functioning of the organization as well. For example, if the employee has decided to
leave the organization, it may affect the organization. The authority of taking personal decisions cannot be delegated
and is dependent on the individual itself.

4. Major and Minor Decisions:

These are classified as the type of decision-making in management where decision-related to purchase of new premises
is a major decision. These are taken by top management whereas the purchase of stationery is a minor decision. Minor
decisions can be taken by the superintendent.

5. Individual and Group Decisions:

When the decision is taken by an individual, it is categorized as an individual decision. Usually, routine decisions are
taken by individuals within the policy framework of the organization.

Group decisions are taken by a group of individuals in the form of a standing committee. Generally, important types of
decisions in management are shifted to this committee. The main aim of a group decision is to involve the maximum
number of individuals in the process of decision making.

6. Tactical and Operational Decisions:

Decisions that are pertaining to various policy matters in the organization are known as policy decisions. These are taken
by top management and do have a long-term impact on the organization. For example, decisions regarding the location
of the plant or volume of production. These are tactical decisions

Operational decisions are all day-to-day decisions that need to be taken for the proper functioning and operation of the
organization. These can be taken by middle or lower-level managers. For example, the Calculation of bonuses given to
each individual is an operational decision and is performed by middle or lower-level managers.

Decision Making Models

Rational Decision Making
The rational decision making model assumes decisions are based on an objective, orderly, structured information
gathering and analysis. The model encourages the decision maker to understand the situation, organize and interpret
the information, and then take action. There are eight steps in the rational decision making process:
The goal of the rational decision making model is to eliminate possibilities for error and biases. It assumes the following:

 Managers have all the information about the situation.

 Managers are aware of all alternative options and are equipped to evaluate them properly.
 Managers are looking to make the best possible decision.
 Managers are capable of eliminating misperceptions and biases.
 There are no cost or time constraints.

In a perfect world, where all of those assumptions are met, this model is how the decision making process works best.
But we know that those assumptions can’t all be met.

Bounded Rationality Model

The bounded rationality model assumes numerous organizational and individual factors restrict rational decision
making. This is the version of decision making that occurs most often in organizations, because the assumptions of this
model are much closer to the truth:
 Early alternatives and solutions are quickly adopted because of perceptual limitations.
 Managers often don’t have access to all the information they need.
 Managers are not aware of all the alternatives and can’t predict the consequences of each one.
 Organizational goals constrain decisions.
 Conflicting goals of multiple stakeholders can force a compromise of a decision.
Because a human being is limited in the amount of information he or she can process, when a complex decision needs to
be made, he or she will reduce the problem to a manageable size. By limiting the number of choices and the amount of
necessary information, the product is a decision that’s acceptable and satisfactory. This is sometimes referred to as the
Satisficing model.
In the bounded rationality model, the same steps are used in the decision making process, only instead of reviewing all
information and all alternatives, those aspects are limited to the amount the decision maker is willing to gather.
Linear Model of Decision Making
Linear decision making involves listing positive and negative factors of each decision alternative. If you’ve ever made a
list of pros and cons around a certain decision, then you’ve embarked on linear decision making.
In order for it truly to be linear decision making, the decision maker must then assign a numerical “weight” to each of his
pros and cons, and arrive at a total score for each side. For instance, let’s say you were trying to decide if you should or
should not hire a very experienced but very expensive candidate for a position in your office. Your linear decision making
model might look like this:
Reasons to Hire Candidate Reasons to Not Hire Candidate

Very experienced in an area

Another candidate might be able
where it’s difficult to find 3 –2
to be hired cheaply and trained
experience

Would not lose as much Wouldn’t be promoting from

productivity because candidate 3 within but rather hiring from –3
has experience outside

Candidate would be a good fit

Candidate has done some job
with the group culturally 1 –3
hopping recently
speaking

Searching for another qualified

Did not impress all the managers
candidate, even if he has to be 2 –3
that interviewed him.
trained, may take a while.

Total 9 Total –11

You’ve assigned the most important reasons a 3 on the positive side, and a –3 for the most important reason on the
negative side. This makes it easy for you to tally up both sides and add them together. A positive score suggests you
should hire the candidate, and a negative score suggests you should not. Looks like you’re not hiring this candidate!

Intuitive Decision Making

Intuitive decision making is a model that assumes managers make decisions by relying on past experience and their
personal assessment of a situation. This model of decision making is often used when there are high levels of
uncertainty or complexity around a particular problem, or when the decision is novel and the managers don’t have past
experience with this kind of problem.
If managers are faced with uncertain, complex situations and they can’t get the right information to make a good
decision quickly, they are apt to rely on hunches and intuition. Given the choice between this model and a linear model
(like the one discussed above), managers should reach for the linear model.
Garbage Can Model

Figure 2. The Garbage Can Method

The garbage can model is one where managers use information about problems, participants, solutions and
opportunities haphazardly to generate ideas and potential decisions. Unlike the other decision making models we
discussed, the garbage can model does not always lead to satisfactory solutions, because the problem does not always
precede alternatives and solutions.
For instance, the corporate office of an organization might have been recently informed of the benefits of going to an
“open environment” where people can talk and collaborate freely. Senior management may get behind this idea and
start looking for ways to knock down cube walls and make their environment more collaborative before it’s even been
determined that their office has issues being collaborative.

As you can see in Figure 2, there is no sequence of steps the way there is in rational decision making, but rather the
decision comes by looking at independent streams of events.

Unit VIII

Stress

Stress is a personal experience caused by pressure or demands on an individual, and impacts upon the individual’s ability
to cope or rather, his/her perception of that ability.
Stress is defined as a subjective feeling of tension or arousal that is triggered by a potentially stressful situation. For
example:-Job security, Overwork, Information overload etc.

Stress is an adaptive response to a situation that is perceived as challenging or threatening to a person’s well-being.

Stress has both psychological and physiological dimensions. Psychologically, people perceive a situation and interpret
it as challenging or threatening. This cognitive appraisal leads to a set of physiological responses, such as higher blood
pressure, sweaty hands, and faster heart beat.

TYPES OF STRESS
1) Acute Stress
Acute stress is short-term stress. Acute stress is most often caused by reactive thinking. Negative thoughts predominate
about situations or events that have recently occurred, or upcoming situations, events, or demands in the near future.
Symptoms of acute stress are irritability, anger, sadness, tension, headaches etc.

2) Episodic Stress
People who frequently experience acute stress, or whose lives present with frequent triggers of stress, have episodic acute
stress. People with this kind of stress will oftentimes take on more responsibilities and projects than they can handle.
Symptoms of episodic acute stress are Migraines, Hypertension, Heart disease etc.

3) Chronic Stress
Chronic stress occurs when someone feels trapped in a bad situation. Whether it be an over-demanding job, an unhappy
marriage, or a desperate financial situation and so on. Symptoms of Chronic stress are Anxiety, Depression, Sleep issues,
Memory and concentration issues etc.

Causes and Consequences of Stress

Work related Stress

1) Inter personal stress

Stress arises within workplace because employees must interact more with coworkers.

For example:-Bad boss, Office politics, sexual harassment, workplace violence, and bullying. It includes the following
stresses:-

Sexual harassment: - Unwelcome conduct of a sexual nature that detrimentally affects the work environment or leads to
adverse job-related consequences for its victims. Sexual harassment includes situations where a person’s employment or
job performance is conditional on unwanted sexual relations.

Work place Violence: - The most serious interpersonal stressor is the rising wave of physical violence in the workplace.
Employees who experience violence usually have symptoms of severe distress after the traumatic event.
Work place Bullying: - Offensive, intimidating, or humiliating behavior that degrades, ridicules, or insults another person
at work is called work place bullying. It leads to more absenteeism and, back on the job, have impaired decision making,
lower work performance, and more work errors.
2) Role related stress
Role-related stressors include conditions where employees have difficulty understanding, reconciling, or performing the
various roles in their lives.

Two types of role-related stressors are role conflict, role ambiguity.

Role conflict: - It refers to the degree of incongruity or incompatibility of expectations associated with the person’s role.
Conflict that occurs when people face competing demands.

In other words, Role conflict also occurs when an employee receives contradictory messages from different people about
how to perform a task (called intra role conflict) or work with organizational values and work obligations that are
incompatible with his or her personal values (called person-role conflict).

Role ambiguity: -Role ambiguity refers to the lack of clarity and predictability of the outcomes of one’s behavior. In other
words, role ambiguity refers to uncertainty about job duties, performance expectations, level of authority, and other job
conditions.
3) Task control stress
Employees are more stressed when they lack control over how and when they perform their tasks as well as over the pace
of work activity.

4) Organizational and Physical environment stress

Organizational and physical environment stressors come in many forms. Organizations create stress by altering the
psychological contract, reducing job security, and restructuring and downsizing employment.
Physical work environment, such as excessive noise, poor lighting, and safety hazards. For example, a study of textile
workers in a noisy plant found that their levels of stress measurably decreased when supplied with ear protectors.

Non work Stress

There are three types of these non work stressors: time based, strain-based, and role-based conflict.

Time based stress: - It refers to the stress of trying to balance time at work with family. The challenge of balancing the
time demanded by work with family and other non work activities.
This stressor is particularly noticeable in employees who hold strong family values and weakest in people whose values
emphasize a work- -life imbalance.

Strain-based conflict: - Strain-based conflict occurs when stress from one domain spills over into the other. Relationship
problems, financial difficulties, and loss of a loved one usually top the list of non work stressors. New responsibilities such
as marriage, birth of a child, and a mortgage are also stressful to most of employees.

Role behavior conflict: - It occurs when people are expected to enact different work and non work roles. People who act
logically and impersonally at work have difficulty switching to a more compassionate behavioral style in their personal
lives.
For example:-one study found that police officers were unable to shake off their professional role when they left the job.
This was confirmed by their spouses, who reported that the officers would handle their children in the same manner as
they would people in their job.

CONSEQUENCES OF STRESS

1) Physiological Consequences
Many people experience tension headaches due to stress. Others get muscle pain and related back problems.
These physiological ailments are attributed to muscle contractions that occur when people are exposed to
stressors.
2) Psychological Consequences
Stress produces various psychological consequences, including job satisfaction, moodiness, and depression.
Emotional fatigue is another psychological consequence of stress and is related to job burnout.
3) Behavioral Consequences
When stress becomes distress, job performance falls and workplace accidents are more common. High stress levels
impair our ability to remember information, make effective decisions, and take appropriate action. This might
probably experience in an exam or emergency work situation. This kind of stress makes us to forget important
information, make mistakes, and otherwise “draw a blank” under intense pressure.
Ways of overcoming the stress
Some of the ways to reduce the stress as explained below:-

1) Flexible work time: -Some firms are flexible about the hours, days, and amount of time employees want
to work.
For example:-Providing work–life program gives employees the freedom to rearrange their work schedule to
accommodate family events, from attending their kids’ sports activities to caring for elderly parents.

2) Job Sharing: -Job sharing splits a career position between two people so they experience less time based
stress between work and family. They typically work different parts of the week with some overlapping work time
in the weekly schedule to coordinate activities.
3) Telecommuting: -This reduces the time and stress of commuting to work and makes it easier to fulfill
family obligations, such as temporarily leaving the home-office to pick the kids up from school. Research suggests
that telecommuters experience a healthier work–life balance.
4) Personal leave programs: -Employers with strong work–life values offer extended maternity, paternity,
and personal leaves to care for a new family or take advantage of a personal experience. Increasingly, employees
require personal leave to care for elderly parents who need assistance.
5) EAPs (Employee assistance programs): - EAPs are counseling services that help employees overcome
personal or organizational stressors and adopt more effective coping mechanisms.Most EAPs are “broad brush”
programs that counsel employees on any work or personal problems.
6) Receive social support: - Social support from co-workers, supervisors, family, friends, and others is one
of the more effective stress management practices. Social support refers to the person’s interpersonal transactions
with others and involves providing either emotional or informational support to buffer the stress experience. For
example: social support might reduce a new employee’s stress because co-workers describe ways to handle
difficult customers. Finally, emotional support from others can directly help to buffer the stress experience.

Unit XI

Organisation Structure
 The organization structure is the system which describes the organizational hierarchy in terms of different
functions, roles, responsibilities, supervision, etc. It demonstrates different concerns including different roles of
the employees, job descriptions, job functions, decision-making authorities, reporting structure, allocation of
tasks in the department, individuals, project team, branch, etc.
 The organizational structure also defines the flow of information between different levels of an organization,
clarity of job of each employee, and its fitment in the overall system which motivates the employees to work
efficiently by keeping their morale high; hence, increasing the overall productivity of an organization.

Types of Organisational Structures

Centralized Structure

In this type of organizational structure, all decisions, as well as processes, are defined; and handled by the top
management. Employees and managers are responsible for the successful implementation of decisions and have to follow
them. The employees low in the chain of command play a minimal role in the process of decision-making. Few real-life
examples of such organizations are Army, where the power of decision- making is held at the top level and there is a wide
chain or hierarchy of managers and subordinates. Thus, the centralized structure has a top-down approach for decision
flow.

Decentralized Organization Structure

In such type of organizations, day-to-day tasks and the decision-making processes are delegated to the supervisors at
the middle and lower level by the top management for fast and effective decisions and to improve efficiency. By letting
the middle and lower level executives jump in the process of decision-making, the top management can focus on other
major decisions. This also increases the responsibility and accountability of the employees.

Organizational Design
 In simpler terms, “Organizational Design” refers to defining, designing, and re-structuring organizational structure.
The very process of organizational design is aimed at finding any type of defective or dysfunctional elements
related to an organization’s system, organization structure, process, and work culture. Identification of these
elements leads to their rectification so that they can better fulfil an organization’s objective.
 It clarifies different aspects like authority, the responsibility of tasks and its limitations, reporting structure, a flaw
of information, etc. With the help of organizational design, one can identify and eliminate any kind of duplicity in
work, inefficient work, and poor customer dealing, blame games, obstacles in the decision-making process,
 shortfalls in systems, and processes which result in the decline of efficiency of the employees, lack of trust among
superiors and subordinates, etc.
 So, organizational design and organizational structure are interrelated to each other, yet have a slight difference.
The organizational structure represents organizations in an immovable or static form that can be presented
through a diagram, popularly known as “Organogram.” These diagrams or organization charts provide an easy
interpretation of different functions of organizations and their relationships. Also, they show a hierarchy of the
staff i.e. managers, leaders, other team members, and supervision levels.
 With the help of the organizational design, weaker systems of an organization can be identified and corrective
steps can be taken to strengthen them.

Elements of Organizational Design

A well-designed organizational structure not only defines functions, hierarchy, roles, and responsibilities but also the
alignment of organizational goals of staff/teams. Poor organizational design or structure may result in serious downfalls
in organizations i.e. ambiguity of roles, lack of trust in team and superiors, rigid work environment, slow and ineffective
decision-making, etc. So, it is important to look for organizational design and structure as per a company’s
requirement. Largely, there are 6 elements of organizational design and structure:

Chain Of Command/Line of Command

In this, the authority and power are delegated from top to bottom i.e. in an organization top management gives
instructions to the bottom team and all the employees at each level. Further, the accountability of an employee’s job
flows upward to the management. It gives clarity of the reporting structure in an organization.

Span of Control
“Span Of Control” demonstrates how wide is the area of the direct control of supervisors over their subordinates which
is directly related to how many subordinates (in numbers) report to a senior or supervisor; which, in turn, depends on
the number of tasks performed at different levels. In case of more tasks, the span of control will be wider. It also
depends on other aspects like geographical location, the ability of the team and superior, the complexity of tasks, etc.

Centralization
Centralization refers to centralizing an organizational system where planning and decision-making authority is allotted
either to a single person or the top management. A decentralized organization is the one where planning and decision-
making are handed over to middle or low-levels.
Decentralized Organization

Specialization
Large organizations divide some of its functions based on the specialized areas and, so, subtasks are defined in different
tasks. These subtasks are distributed among individual job roles.
 Formalization
 Formalization refers to the process of specifying or mentioning rules, procedures, and duties to the employees
as an individual as well as to the teams, departments, units, and the whole organization by managers in written
form too. Formalization indicates the goals and vision of an organization, tasks, hierarchy and relationships,
authority and responsibilities, different processes, and work methods.
 A formal organization emphasizes on job roles, responsibilities, and assigning work to the individuals as per the
requirement of roles. These are controlled by rules and procedures.
 An informal organization emphasizes on individuals, and the job responsibilities are designed based on
individual employee skills and preferences irrespective of the department in which he/she is working. An
individual can be assigned the role of different departments as well based on self-interest, skills, etc.

Departmentalization
 As the name states, “Departmentalization” is the process of dividing organizational functions into different
departments as per specializations of jobs or responsibilities so that the common tasks can be handled by
specialized teams.
 In rigid departmentalization, there is almost no interaction between different teams and each team works as per
their area of specialization. In contrast, in loose departmentalization, the teams are free to interact with each
other and can work together for common tasks.

Types of organisational design and structure

 Formal
 Informal

Formal Organisations (Types)

Line Organizational Structure & Design

Line organizations follow line/chain of command and demonstrate relationships at different levels in vertical
form. The authority comes from top to bottom. There is no specialization existing in this.

Functional Organizational Structure & Design

In these types of organizations, different tasks and activities are distributed to different functions and
departments i.e. sales & marketing, finance, production, purchase, HR, IT, etc.

Line and Staff Organizational Structure & Design

This concept works mostly in big organizations. The vertical but direct relation exists at different levels in these
type of organizations where the specialist staff has the responsibility to advise the line managers and assist
them whenever required. Both the departments, i.e., line and staff exist in such organizations. The specialized
staff is present for assisting or advising and has direct control over the line staff.

Divisional Organizations
Divisional organizational structure is present in large organizations which are more than one product based,
working in multiple territories or working on different projects with separate teams.

Project-Based Organizations
Project-based organizations are temporary in nature and are developed to fulfil some defined set of results for a
project.
Matrix Organizations
These types of organizations work on dual relationships in terms of responsibilities ushered over the
employees. Employees in such organizations report to both- functional head and project head. For example, in
matrix organizations, HR team members will report to the project manager, i.e., Hiring Manager of real-estate
recruitment project and the HR head for their functional tasks.

Hybrid Organizations
Hybrid organizations are a combination of values and elements which are based on social impacts in different
sectors like private, public, etc. and revenue generation. Basically, when organizations combine to fulfil the
common social and profit generating goals, such organizations are known as hybrid organizations.