Organizational behavior (often abbreviated OB) is a field of study that investigates the impact that

individuals, groups, and structure have on behavior within organizations, for the purpose of applying
such knowledge towards improving an organization’s effectiveness. OB is the study of what
employees do in an organization and how their behavior affects the organization’s performance. OB
includes the core topics of motivation, leader behavior and power, interpersonal communication,
group structure and processes, learning, attitude development and perception, change processes,
conflict, work design, and work stress. The following has necessitated the study of organization
behavior:
Increased Foreign Assignments
A manager transferred to the employer’s subsidiary in another country has to manage a workforce
having different needs, aspirations, and attitudes.
Working with People from Different Cultures
To work effectively with people from different cultures, management needs to understand how their
culture, geography, and religion have shaped them and how to adapt relevant management style to
their differences.
Overseeing Movement of Jobs to Countries with Low-Cost Labor
In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage.
It’s not by chance that many in the United States wear clothes made in China work on computers
whose microchips came from Taiwan, and watch movies filmed in Canada.
Managing Workforce Diversity
One of the most important challenges for organizations is adapting to people who are different. We
describe this challenge as workforce diversity. Whereas globalization focuses on differences among
people from different countries, workforce diversity addresses differences among people within
countries. Workforce diversity acknowledges a workforce of women and men; many racial and ethnic
groups; individuals with a variety of physical or psychological abilities; and people who differ in age
and sexual orientation.
Improving Customer Service
Management need to create a customer-responsive culture. OB can provide considerable guidance
in helping managers create such cultures - in which employees are friendly and courteous, accessible,
knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to
please the customer.
Improving People Skills
Through OB one gains an insight into specific people skills that can be used on the job. An individual
learn ways to design motivating jobs, techniques for improving listening skills, and how to create
more effective teams.
Stimulating Innovation and Change
An organization’s employees can be the impetus for innovation and change. The challenge for
managers is to stimulate their employees’ creativity and tolerance for change. The field of OB
provides a wealth of ideas and techniques to aid in realizing these goals.
Coping with “Temporariness
Today most managers and employees today work in a climate best characterized as “temporary.
Permanent employees are replaced with temporary workers.
Managers and employees must learn to cope with temporariness, flexibility, spontaneity, and
unpredictability. The study of OB can help you better understand a work world of continual change,
overcome resistance to change, and create an organizational culture that thrives on change.
Working in Networked Organizations

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Networked organizations use e-mail, the Internet, and video-conferencing to allow employees to
communicate and work together even though they are thousands of miles apart. The manager’s job
in networked organizations require different techniques from those used when workers are
physically present in a single location.
Helping Employees Balance Work–Life Conflicts
Employees increasingly recognize that work infringes on their personal lives, and they’re not happy
about it. Recent studies suggest employees prefer jobs that give them flexibility in work schedules so
that they can well manage work–life conflicts. OB offers a number of suggestions to guide managers
in designing workplaces and jobs that can help employees deal with work–life conflicts.
Creating a Positive Work Environment
Organizations are trying to realize a competitive advantage by fostering a positive work environment
which means practicing engagement, hope, optimism, and resilience in the face of strain.
Improving Ethical Behavior
Employees see people all around them engaging in unethical practices - elected official Employees
paid expense accounts or take bribes; corporate executives inflate profits so they can cash in lucrative
stock options.
Managers and their organizations are responding to the problem of unethical behavior in a number
of ways. They write and distribute codes of ethics to guide employees through ethical dilemmas. They
organize seminars, workshops, and other training programs to try to improve ethical behaviors. They
provide in-house advisors who can be contacted, in many cases anonymously, for assistance in
dealing with ethical issues, and they create protection mechanisms for employees who reveal internal
unethical practices

LEARNING
INTRODUCTION
If a manager wants to explain and predict human behaviour, he/she needs to understand how
learning occurs or how people learn. So it is very necessary to know the nature, process and principles
of learning.
According to S.P. Robbins, “learning is any relatively permanent change in behavior that occurs as a
result of experience.”
LEARNING PROCESS/NATURE
Theories of Learning: Learning is part of every one’s life. All complex behavior is learned. Learning is
defined as any relatively permanent change in behavior that occurs as a result of experience. If an
individual behaves, reacts, responds as a result of experience which is different from others, the
person has encountered new learning experience in his life. This definition consists of the following
four key elements:
i) Change process: Learning involves some change in oneself in terms of observable actions explicitly
shown to others or change in one’s attitude or thought process occurs with oneself implicitly. Change
may be good or bad or positive or negative from an organization point of view. If a person is happened
to experience some negative incidents, that person will hold prejudices or bias or to restrict their
output. On the contrary, if a person is encountering some good incident, that person is likely to hold
positive attitude.
ii) Permanent change: Due to whatever exposure a person encounters, the impact what it generates
may be long lasting and permanent. Hence, the change must be relatively permanent. If change
occurs due to fatigue or alcohol consumption or temporary adaptation, it may be vanished once the
goal is achieved.

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iii) Setting behavioral actions: Explicit changes occurring in behavior is the main goal of learning
process. A change in an individual’s thought process or attitudes without any change in explicit
behavior will not be considered as learning.
iv) Experience: Some form of experience is necessary for learning. Experience may be acquired
directly through observation or practice. If experience results in a relatively permanent change in
behavior, one can confidently say that learning has taken place.

Theories of Learning: There are three types of learning theories. These theories are classical
conditioning, operant conditioning and social learning.
FACTORS AFFECTING LEARNING
Motivation of the learner
Mental set of the learner
Nature of Learning Material
Practice
Environment

CLASSICAL CONDITIONING THEORY

Russian physiologist Ivan Pavlov developed classical conditioning theory. Based on research on the
chemical properties of saliva of a dog, he noticed accidentally that the dog started salivating the
moment of hearing the sound of a door of cupboard clinging. Based on his observation, he wanted
to do some experiment whether the dog can be conditioned to respond to any neutral stimuli. He
used a simple surgical procedure to operate the salivary glands of a dog to measure accurately the
amount of saliva.
Pavlov’s Experiment: Pavlov conducted his experiment in three stages.
Stage I: When Pavlov presented the dog with a piece of meat, the dog exhibited a noticeable increase
in salivation. The meat is unconditional stimulus and salivation is unconditional response.
Stage II: In this stage, the dog was not given a piece of meat but only exposed to a sound of ringing
bell; the dog did not salivate to the mere sound of a ringing bell.
Stage III: Pavlov decided to link both the presentation of meat and the ringing of a bell one after the
other with an interval of 5 minutes. After repeatedly hearing the bell before getting the meat, the
dog began to salivate as soon the bell rang. There is an association or link between meat and ringing
a bell. After repeating the association between meat and ringing the bell, the dog started salivating
merely at the sound of the bell, even if no food was offered. The dog was conditioned to respond to
a sound of a bell and started salivating. This is called classical conditioning process.
Thus, classical condition is defined as the formation of S-R link (Stimulus-Response) or habit between
a conditioned stimulus and a conditioned response through the repeated paring of conditioned
stimulus with an unconditioned stimulus. In this experiment, the meat is unconditioned stimulus, and
the expected response that is, salivating to the meat is called as unconditioned response. The sound
of a bell is a neutral stimulus which does not have any property to elicit salivation, is called as
conditioned stimulus.
Although it was originally neutral, if the bell was paired with meat (unconditioned stimulus) it
acquired the same property as meat eliciting the salivation.
The sound of a bell produced salivation when presented alone. This is called conditioned response,
that is, now the dog is conditioned to respond to the sound of a bell. Learning conditioned response
involves building up an association between a conditioned stimulus and unconditioned stimulus.

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When the stimuli, one is natural and the other one neutral are paired, the neutral one becomes a
conditioned stimulus and hence takes on the properties of the unconditioned stimulus.
APPLICATION OF CLASSICAL CONDITIONING PRINCIPLES AT WORK
Whenever the President or Vice-President of Corporate Office visits an operations site the employees
in the shop floor will be more attentive at work and look more proper and active in their work life. It
is quite natural that top management personnel visit (Unconditioned Stimulus) evoking or eliciting a
desired response- being prim and proper at work from the employees (Unconditioned Response).
The routine cleaning of windows or floor of the administrative office will be neutral stimulus never
evoking any response from the employees. If the visit of the top management personnel is associated
with such cleaning process, eventually the employees would turn on their best output and look prim
and active the moment windows and floor are being cleaned up. The employees had learned to
associate the cleaning of the windows with a visit from the head office. The cleaning process
(conditioned stimulus) evoked attentive and active work behavior (conditioned response). Similarly,
Christmas Carols songs bring pleasant memories of childhood as these songs associated with the
festive Christmas Spirit. Classical conditioning is passive. It is elicited in response to a specific,
identifiable event.
OPERANT CONDITIONING
Operant conditioned principle was proposed by B.F. Skinner, an American Psychologist. It is a type of
conditioning in which desired voluntary behavior leads to reward or prevent punishment. Operant
conditioning principle emphasizes strongly that the behavior of an individual is a function of its
consequences. If the consequences are pleasant, the behavior associated with such consequences
will be repeated again and again. If the consequences are unpleasant, the behavior will be extinct.
The rationale behind this theory is that people learn to behave in order to get something they want
or to avoid something they don’t want. Operant condition is learned process. The tendency to repeat
such behaviour is influenced by the reinforcement or lack of reinforcement brought about by the
consequences of behavior. Proper reinforcement strengthens behavior and increases the likelihood
that it will be repeated.
Skinner’s Experiment: Skinner developed an apparatus to conduct a series of learning experiment
using rats. He named that apparatus as Skinner’s Box which has certain features such as a lever, bowl,
light, water container etc. A highly deprived rat is placed in the box. Once a rat nudges or touches or
hits the lever attached in the corner of the box, a piece of food pellet is dropped in the bowl. By trial
and error, the rat learns that hitting the lever is followed by getting a food pellet in the bowl. Skinner
coined the term operant response to any behavioral act such as pressing or hitting or nudging the
lever that has some effect on the environment. Thus in a typical experiment with a skinner box, hitting
or pressing the lever is an operant response, and the increased rate of lever hitting or pressing that
occurs when the response is followed by a pellet of food exemplifies operant conditioning.
APPLICATION OF OPERANT CONDITIONING IN WORK LIFE
If the sales person who hits the assigned target of the sales quota is reinforced with a suitable
attractive reward, the chances of hitting further sales target in the future will be exemplified. Skinner
argued that creating pleasant consequences (giving attractive rewards) to follow specific forms of
behavior (hitting sales target) would increase the frequency of that behavior. 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. In addition, behavior that is not rewarded is less
likely to be repeated. A commissioned sales person wanting to earn a sizeable income finds that doing
so is contingent on generating high sales in his territory.

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COGNITIVE LEARNING THEORY
Cognition refers to an individual’s thoughts, knowledge, interpretations, understandings or views
about oneself and his/her environment. Based on it cognitive theory argues that the person tries to
form his/her cognitive structure in memory, which preserves and organizes all information relating
to the events that may occur in learning situation. Here an experiment was conducted on a monkey
by Kohler. Kohler presented two sticks to a monkey in a cage. Both sticks were too short to reach a
banana lying outside cage. This produced an experience, or say, cognition, insight monkey. What the
monkey did without any prior exposure joined both sticks together and pulled the banana inside the
cage. Learning took place inside the mind of the monkey. Thus, the learning process involved in this
case is putting or organizing bits of information in a new manner perceived inside the mind. This type
of learning is very vital in organizational behaviour for changing individual attitudes.

SOCIAL LEARNING THEORY

People learn through observation and direct experience, which is called social learning theory.
Individual learn by observing what happens to other people and just by being told about something,
as well as by direct experiences. By observing people around us, mostly from parents, teachers, peers,
films and television performers, bosses, we learn new behavior pattern.
The following four processes are vital to determine the influence that a model will have on an
individual.
i) Attention Process: People learn from a model only when they recognize and pay attention to its
critical features. People tend to be most influenced by models that are attractive, repeatedly
available similar to us in our estimation.
ii) Retention Process: A model’s influence will depend on how well the individual remembers the
model’s action after the model is no longer readily available.
iii) Motor Reproduction Process: After a person has seen new behavior by observing the model, the
watching must be converted to doing. This process then demonstrates that the individual can
perform the modeled activities.
iv) Reinforcement Process: Individual will be motivated to exhibit the modeled behavior if positive
incentives or rewards are provided. Behavior that is positively reinforced will be given more attention,
learned better and performed more often.

PERSONALITY
The word personality comes from the Latin root persona, meaning "mask."According to this root,
personality is the impression we make on others; the mask we present to the world .Personality is
defined as "a unique set of traits and characteristics, relatively stable over time."
Gordon Allport defined: Personality—“the dynamic organization within the individual of those
psychophysical systems that determine his unique adjustments to his environment”
Personality is the sum total of ways in which an individual reacts to and interacts with others. It is
most often described in terms of measurable traits that a person exhibits.
Characteristics of Personality
1. Personality is unique for each person:
2. Personality refers particularly to persistent qualities of an individual:
Every individual has certain feelings as and permanent traits and qualities. Personality is mainly
composed of the persistent or permanent qualities that exhibit themselves in the form of social
behaviour and attempt to make adjustment with the environment.

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3. Personality represents a dynamic orientation of organism to environment:
Personality represents the process of learning. It takes place in reference to the environment.
We do not acquire all the traits of personality at once.
4. Personality is greatly influenced by social interactions:
Personality is not an individual quality. It is as a result of social- interaction. In other words, it
means that when we come in contact with other members of the society, we acquire certain
qualities while we exhibit certain others. All these come to form personality.
5. Personality represents a unique organisation of persistent dynamic and social predisposition:
In personality various qualities are not put together. They are, in fact, integrated into one. This
integration is nothing but as a result of organisation which may be different from person to person.
The behaviour of a person directed to one particular individual may differ from the behaviour of
another person.
FORMATION OF PERSONALITY
Personality is very unique and it is a combination of constitutional factors and environmental factors
which vary from individual to individual.
Stages of Personality Development
Personality development is a continuous process. It starts since the child is in fetal stage. After birth,
the child develops and learns. This process is continued throughout life. The stages of Personality
development are:-
Freudian Stages
The theory of psychosexual development was proposed by the famous psychoanalyst Sigmund Freud
and described how personality developed over the course of childhood. Psychoanalytic theory
suggests that personality is mostly established by the age of five. Early experiences play a large role
in personality development and continue to influence behaviour later in life.
According to Freud, personality develops as a result of interaction of four main sources of stress.
These are physical growth process, frustration, conflicts and threats. These sources affect differently
at each stage of a life’s person. These stages are classified into five. Oral stage, Anal stage, Phallic
stage, Latency stage and Genital stage. Freud believes that these stages are the main driving forces
of personality development.
PERSONALITY DETERMINANTS
This represents the process of change. It relates to the psychological growth and development of an
individual. The determinants can be classified into four major factors - biological factors, cultural
factors, family and social factors and situational
I. Biological factors
These factors have one sided impact on personality. The study of biological factors to personality can
be divided into three broad categories namely physical features, brain and heredity..
(a)Physical features
An individual’s external appearance or physical features has a tremendous effect on personality. For
example, the fact that a person is short or tall, fat or thin, handsome or ugly, black or whitish will
undoubtedly influence the person’s effect on others and in turn will affect the self-concept. A
person’s physical characteristics may be related to his approach to the social environment, to the
expectancies of others, and to their reaction to him. These in turn may have impact on personality
development.
(b) Brain /Human neurons
The psychologists are unable to prove empirically the contribution of human brain in influencing
personality. Father and child generally adopt the same type of brain stimulation. The differences are

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caused by environment. Physiologists and psychologists have studied the structure of human brain.
They have divided the brain into two divisions namely left hemisphere and right hemisphere. Left
hemisphere lies in the right side of the body and right hemisphere lies in the left side. An individual’s
personality is developed on the basis of the structure of the brain.
c) Heredity factors
They are genetic factors that play a part in determining certain aspects of what we tend to become.
Whether we are tall or short, experience good health or ill health, are quickly irritable or patient, are
all characteristics which can, in many cases, be traced to heredity. An early argument centered on
whether or not personality was the result of genetics or of environment. Heredity refers to the factors
that are determined at conception. They are transmitted by genes in the chromosomes contributed
by each parent. Heredity plays an important role in one’s personality. It varies from one personality
to another.
II. Cultural factors
The culture and the values we are surrounded by significantly shape our personal values and
inclination. Thus, people born in different cultures tend to develop different types of personalities
which in turn significantly influence their behaviour. India being a vast country with a rich diversity of
cultural background provides a good study on this. Culture generally determines attitude towards
independence, aggression, competition and cooperation. Every culture has its own sub cultures; each
with its own views about such qualities has moral values, standards of cleanliness, style of dress, and
definitions of success.
III. Family and Social factors
The socio-economic status of the family, the number of children in the family and birth order, and
the background and education of the parents and extended members of the family such as uncles
and aunts, influence the shaping of a person’s personality to a considerable extent. The factors have
their impact through socialisation and identification process
a. Socialisation is a process by which a person acquires the enormously wide range of behaviour
potentialities that are open to him or her, starting at birth, from her/his mother, later from other
members of the family and social groups.
b. Identification process –parents play an important part in the identification process vital to an
individual’s early development. The process occurs when a person identifies himself with some
person whom he feels ideal or model in the family. The process of identification can be viewed in
three ways.
1. It can be viewed as a similarity of behaviour between child and the model
2. Identification can be looked upon as the child’s motives or desires to be like the model
3. It can be viewed as a process through which the child actually takes on the attributes of the model
c. Home environment-. The overall home environment created by parents, in addition to their direct
influence, is critical to personality development.
d. Family members- Rich people have different personalities.
e. Parental influences – the positive and negative personalities of children are dependent on their
parent’s characteristics and mutual behaviour.
f. Social group - it consists of peers, school friends, and members of the working group.
IV. Situational factors
Different situations demands different aspects of one’s personality. It has been observed that many
arrogant and undisciplined employees became humble and disciplined in a particular situation.
PERSONALITY TRAITS

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The traditional approach of understanding personality was to identify and describe personality in
terms of traits. I.e. personality revolves around attempts to identify and label permanent
characteristics that describe an individual's behaviour. The Popular characteristics or traits include
shyness, aggressiveness, submissiveness, laziness, ambition, loyalty, and timidity. The more
consistent the characteristic and the more frequently it occurs in diverse situations, the more
important that trait is in describing the individual.
THE “BIG FIVE” PERSONALITY TRAITS
Human resources professionals often use the Big Five personality dimensions to help place
employees. That is because these dimensions are considered to be the underlying traits that make
up an individual’s overall personality. The Big Five traits are Openness, Conscientiousness,
Extroversion, Agreeableness, and Neuroticism or OCEAN: Openness - People who like to learn new
things and enjoy new experiences usually score high in openness. Openness includes traits like being
insightful and imaginative and having a wide variety of interests. They also tend to have broad
interests curious, imaginative and creative.
Conscientiousness –refers to the number of goals on which a person focuses. People who focus on
relatively few goals at one time are likely to be organised, systematic, careful, thorough, responsible,
and self-disciplined as they work to pursue those goals. People with a high degree of
conscientiousness are reliable and prompt. Extroversion - Extroverts get their energy from
interacting with others, while introverts get their energy from within themselves. Extroversion
includes the traits of energetic, talkative, and assertive. They tend to be higher in overall job
performers than introverts.
Agreeableness - These individuals are friendly, cooperative, and compassionate. People with low
agreeableness may be more distant. Traits associated with this dimension include being kind,
affectionate, and sympathetic. High agreeable people able to develop good working relationships
with co-workers, subordinates, and higher level managers, whereas less agreeable people will not
have particularly good working relationships.
Neuroticism - Neuroticism is also called Emotional Stability. This dimension relates to one’s
emotional stability and degree of negative emotions. People that score high on neuroticism often
experience emotional instability. Traits associated with this dimension include being moody and
tense. People that score high on neuroticism often experience emotional instability and negative
emotions.
PERSONALITY THEORIES
Researchers have developed a number of personality theories. These theories can be classified into
Trait theory, Freud theory, Adler and Jung theories, Social learning theories and Holistic theories.
1. Traits Theory
The traditional approach of understanding personality was to identify and describe personality in
terms of traits. In other words, it viewed personality as revolving around attempts to identify and
label permanent characteristics that describe an individual's behaviour.
Popular characteristics or traits include shyness, aggressiveness, submissiveness, laziness, ambition,
loyalty, and timidity. This distinctiveness, when they are exhibited in a large number of situations, are
called personality traits. The more consistent the characteristic and the more frequently it occurs in
diverse situations, the more important that trait is in describing the individual.
The trait theory is based on three assumptions;
1. Traits are common to many individuals and vary in absolute amount between individual 2. Traits
are relatively stable and exert fairly universal effects on behaviour regardless of environmental
situation.

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3. Traits can be inferred from the measurement of behavioural indicators
Among the personality theories, Allport and Cattel trait theories are most popular.Allport bases his
theory on the distinction between common traits and personal dispositions. He identifies six
categories of values such as religious, social, economic, political , aesthetic and theoretical for
comparison purposes. These are the common traits. He also identifies personal dispositions which
are unique. These are cardinal [most pervasive], central [unique and limited in number] or secondary
[peripheral]
Cattel developed a similar set of traits through the construction of tests and the determination of
factors or trait families which may emerge from this psychological measure. Cattel identifies two set
of traits such as surface traits and source traits. He determined five surface traits which are correlated
e.g., affectionate-cold, honest- dishonest
Such traits lie on the surface of the personality of the individual. These are largely determined by
underlying source traits. Cattel identifies twelve source traits, it includes affecto thymia ( good nature
and trustfulness) vs. Sizo thymia (critical and suspicious) ego strength ( maturity and realism) vs.
Emotionality and neuroticism ( immaturity and evasiveness) dominance vs. Submissiveness ; surgency
( cheerfulness and energy ) vs, desurgency ( depressed and subdued feelings)
2. Freud Theory
Sigmund Freud's psychoanalytic theory of personality argues that human behavior is the result of the
interactions among three component parts of the mind: the id, ego, and superego. The theory places
great emphasis on the role of unconscious psychological conflicts in shaping behaviour and
personality. Dynamic interactions among these fundamental parts of the mind are thought to
progress through five distinct psychosexual stages of development. Over the last century, however,
Freud's ideas have since been met with criticism, in part because of his singular focus on sexuality as
the main driver of human personality development.
According to Freud, our personality develops from the interactions among what he proposed as the
three fundamental structures of the human mind: the id, ego, and superego. Conflicts among these
three structures, and our efforts to find balance among what each of them "desires," determines how
we behave and approach the world. The t balance we strike in any given situation determines how
we will resolve the conflict between two overarching behavioural tendencies: our biological
aggressive and pleasure-seeking drives vs. our socialized internal control over those drives.
The Id
The id, the most primitive of the three structures, is concerned with instant gratification of basic
physical needs and urges. It operates entirely unconsciously (outside of conscious thought). For
example, if your id walked past a stranger eating ice cream, it would most likely take the ice cream
for itself. It doesn't know, or care, that it is rude to take something belonging to someone else; it
would care only that you wanted the ice cream.
The Ego
In contrast to the instinctual id and the moral superego, the ego is the rational, pragmatic part of our
personality. It is less primitive than the id and is partly conscious and partly unconscious. It's what
Freud considered to be the "self," and its job is to balance the demands of the id and superego in the
practical context of reality. So, if you walked past the stranger with ice cream one more time, your
ego would mediate the conflict between your id ("I want that ice cream right now") and superego
("It's wrong to take someone else's ice cream") and decide to go buy your own ice cream. While this
may mean you have to wait 10 more minutes, which would frustrate your id, your ego decides to
make that sacrifice as part of the compromise– satisfying your desire for ice cream while avoiding an
unpleasant social situation and potential feelings of shame.

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The Superego
The superego is concerned with social rules and morals—similar to what many people call their
"conscience" or their "moral compass." It develops as a child learns what their culture considers right
and wrong. If your superego walked past the same stranger, it would not take their ice cream because
it would know that that would be rude. However, if both your id and your superego were involved,
and your id was strong enough to override your superego's concern, you would still take the ice
cream, but afterward you would most likely feel guilt and shame over your actions.
Freud believed that the id, ego, and superego are in constant conflict and that adult personality and
behaviour are rooted in the results of these internal struggles throughout childhood. He believed that
a person who has a strong ego has a healthy personality and that imbalances in this system can lead
to neurosis (what we now think of as anxiety and depression) and unhealthy behaviours.
4. Adler and Jung theory
According to Adler the thrust of superiority is the drive which motivates the individual. He developed
the concepts like compensation and inferiority complex based on the drive for power. He gave stress
on social relationship instead of inmate or biological factors. He stressed on individual uniqueness,
style of life , and the creative.
Jung stressed on unconscious aspect of psycho analysis. According to him personality is based o pre-
disposing pattern borrowed by persons from his ancestors. Jung asserted that the operation of an
individual’s personality is as much future oriented as rooted in the past.
4.Social Learning theory
According to this theory situation is an important determinant of human behaviour. An individual’s
action in a given situation, individual’s appraisal of the situation, and post reinforcement to behaviour
is somewhat similar. When the situation, they encounter are similar and stable, individuals behaviour
will be more or less consistent.
5.Holistic theories
Kolasa has grouped several theorists under one group namely holistic theories, they include holistic,
organismic and field theorists. They stress on the totality and interrelatedness of all kinds of human
behaviour. Maslow, Rogers , Herzberg, Lewin and Festinger are the main contributors of these
theories
MAJOR PERSONALITY ATTRIBUTES INFLUENCING ORGANISATION
BEHAVIOUR
There are several attributes that influence behaviour in organisations. Among the most important is
locus of control, self-efficacy, authoritarianism, Machiavellianism, self-esteem, and risk propensity.
1.Locus of control
It is the degree to which an individual believes that they are masters of their own fate. A person’s
perception of the source of his/her fate is termed locus of control. There are two types of people in
this category :
a.Internals: People who believe that they are masters of their own fate.
b.Externals: People who believe they are pawns of fate.
Individuals who rate high in externality are less satisfied with their jobs, have higher absenteeism
rates, are more alienated from the work setting, and are less involved on their jobs than are internals.
Internals, facing the same situation, attribute organizational outcomes to their own actions.
Internals believe that health is substantially under their own control through proper habits;
their incidences of sickness and, hence, of absenteeism, are lower.

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There is no clear relationship between locus of control and turnover because there are opposing
forces at work. Internals generally perform better on their jobs, but one should consider differences
in jobs.
Internals search more actively for information before making a decision, are more motivated to
achieve, and make a greater attempt to control their environment, therefore, internals do well on
sophisticated tasks.
Internals are more suited to jobs that require initiative and independence of action.
Externals are more compliant and willing to follow directions, and do well on jobs that are well
structured and routine and in which success depends heavily on complying with the direction of
others
2.Machiavellianism
Named after Niccolo Machiavelli, who wrote in the sixteenth century on how to gain and use power.
An individual high in Machiavellianism is pragmatic, maintains emotional distance, and believes that
ends can justify means.
High Machs manipulate more, win more, are persuaded less, and persuade others more.
High Mach outcomes are moderated by situational factors and flourish when they interact face to
face with others, rather than indirectly, and when the situation has a minimum number of rules and
regulations, thus allowing latitude for improvisation. High Machs make good employees in jobs that
require bargaining skills or that offer substantial rewards for winning.
3.Self-esteem and self-concept
Self-esteem is the degree to which people like or dislike themselves. (SE) is directly related to
expectations for success. It denotes the extent to which individuals consistently regard themselves
as capable, successful, important and worthy individuals.
Individuals with high self-esteem will take more risks in job selection and are more likely to choose
unconventional jobs than people with low self-esteem.
The most generalized finding is that low SEs are more susceptible to external influence than are high
SEs. Low SEs are dependent on the receipt of positive evaluations from others. In managerial
positions, low SEs will tend to be concerned with pleasing others.
High SEs are more satisfied with their jobs than are low SEs

4.Self-monitoring
It refers to an individual’s ability to adjust his or her behaviour to external, situational factors.
Individuals high in self-monitoring show considerable adaptability. They are highly sensitive to
external cues, can behave differently in different situations, and are capable of presenting striking
contradictions between their public persona and their private self. Low self-monitors cannot disguise
themselves in that way. They tend to display their true dispositions and attitudes in every situation
resulting in a high behavioural consistency between who they are and what they do.
The research on self-monitoring is in its infancy, so predictions must be guarded.
Preliminary evidence suggests:
High self-monitors tend to pay closer attention to the behaviour of others.
High self-monitoring managers tend to be more mobile in their careers and receive
more promotions.
High self-monitor is capable of putting on different “faces” for different audiences.
5. Type A Personality and Type B Personality

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A Type A personality is “aggressively involved in a chronic, incessant struggle to achieve more and
more in less and less time, and, if required to do so, against the opposing efforts of other things or
other persons.’’
They are always moving, walking, and eating rapidly, are impatient with the rate at which most events
take place, are doing do two or more things at once and cannot cope with leisure time. They are
obsessed with numbers, measuring their success in terms of how many or how much of everything
they acquire.
Type Bs never suffer from a sense of time urgency with its accompanying impatience and feel no need
to display or discuss either their achievements or accomplishments unless such exposure is
demanded by the situation.
Play for fun and relaxation, rather than to exhibit their superiority at any cost and can relax without
guilt.
Type A’s operate under moderate to high levels of stress. They subject themselves to continuous time
pressure, are fast workers, quantity over quality, work long hours, and are also rarely creative. Their
behaviour is easier to predict than that of Type Bs.
Type A’s do better in job interviews; more likely to be judged as having desirable traits such as high
drive, competence, and success motivation
6. Risk taking
The propensity to assume or avoid risk has been shown to have an impact on how long it takes
managers to make a decision and how much information they require before making their choice.
High risk-taking managers made more rapid decisions and used less information in making their
choices. Managers in large organizations tend to be risk averse especially in contrast with growth-
oriented entrepreneurs. They make sense to consider aligning risk-taking propensity with specific job
demands.
7. Work ethnic Orientation
Some individuals are highly work oriented while others try to do the minimum work that is necessary
to get by without being fired on the job. The extremely work oriented person gets greatly involved in
the job. Extreme work ethic values could lead to traits of “work holism” where work is considered as
the only primary motive for living with very little outside interests. A high level of work ethic
orientation of members is good for the organisation to achieve goals. Too much work holism will
destruct both organisation and individual
8. Introversion and extroversion
Introversion is the tendency of individuals which directs them to be inward and process feelings,
thoughts and ideas within themselves. Extroversion, on the contrary, refers to the tendency in
individuals to look outside themselves, searching for external stimuli with which they can interact.
While there is some element of introversion as well as extroversion in all of us, people tend to be
dominant as either extroverts or introverts.
Extroverts are likely to be most successful while working in the sales department, publicity office,
personal relations unit, and so on, where they can interact face to face with others. Introverts on the
other hand, are quiet, reflective, introspective and intellectual people, preferring to interact with a
small intimate circle of friends. They are likely to be successful when they work on highly abstract
ideas such as R&D work, in a relatively quiet atmosphere

PERCEPTION
Perception is a process by which individuals organize and interpret their sensory impressions in order
to give meaning to their environment.

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Basic Perceptual Process
Perception is influenced by characteristics of the object being perceived, by the characteristics of the
person and by the situational processes. Perception is a screen or filter through which information
passes before having an effect on people. It consists of:
1. Perceptual input- Information, object, event, people, symbols etc. Characteristics of the object
include contrast, intensity, movement, repetition and novelty. Characteristics of the person include
attitude, self-concept and personality.
2. Perceptual mechanism- receiving of information by means of five senses from the external
environment and process them to form output. It includes:
a. Perceptual receiving
b. Perceptual selectivity
c. Perceptual organization
d. Perceptual Interpretation (perceptual context, perceptual defense, halo effect, projection,
attribution, stereo typing etc.)
3. Perceptual output- behavioral outcome of perceptual mechanism. It is the result of perceptual
process. It includes attitude, opinions, feelings, values and behaviour. The details of a particular
situation affect the way a person perceives an object; the same person may perceive the same object
very differently in different situations. The processes through which a person's perceptions are
altered by the situation include selection, organization, attribution, projection, stereotyping process,
and the halo effect process. Among these, selective perception and stereotyping are particularly
relevant to organizations.
Perceptual context
Sometimes visual stimuli will be completely meaningless without context. In organization, a pat on
the back, a suggestive gesture, a raised eyebrow etc. will be meaningless without proper context.
They will be made more meaningful if an employee receives a pat on the back for enhancement of
his performance and like that.
Perceptual defense
People often screen out perceptual stimuli that make them uncomfortable. Dissatisfying people
generally build defenses against stimuli or events that are either personally or culturally unacceptable
or threatening. Perceptual defence is performed by
a. Denying the existence or importance of conflicting information.
b. Distorting the new information to match the old
c. Acknowledging the existence of new information but treating it as a non- representative
Selective Perception
Selective perception is the process of screening out information that we are uncomfortable with or
that contradicts our beliefs. For example, a manager has a very positive attitude about a particular
worker and one day he notices that the worker seems to be goofing up. Selective perception may
make the manager to quickly disregard what he observed. For example, a manager who has formed
a very negative attitude about a particular worker and he happens to observe a high performance
from the same worker. In this case influenced by the selective perception process he too will
disregard it.
In one sense, selective perception is beneficial because it allows us to disregard minor bits of
information. But if selective perception causes managers to ignore important information, it can
become quite detrimental.
Halo effect

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It is the tendency of judging the person entirely on the basis of a single trait which may be favourable
or unfavourable. We judge a person by our first impression about him or her. When we draw general
impression about an individual based on single characteristics such as intelligence, sociability or
appearance, a halo effect is operating. This phenomenon frequently occurs when students appraise
their classroom teacher.
Stereotyping
Stereotyping is the process of categorizing or labeling people on the basis of a single attribute.
Perceptions based on stereotypes about people's sex exist more or less in all work places. Typically,
these perceptions lead to the belief that an individual's sex determines which tasks he or she will be
able to perform. For example, if a woman is sitting behind the table in the office, she will be very
often, perceived as a clerk and not an executive at first. But it would induce holding an exactly
opposite assumption about a man. Stereotyping consists of three steps: identifying categories of
people (like women, politician), associating certain characteristics with those categories (like
passivity, dishonesty respectively) and then assuming that anyone who fits a certain category must
have those characteristics. For example, if dishonesty is associated with politicians, we are likely to
assume that all politicians are dishonest.
Projection
It refers to the tendency of the people to see their on traits in other people. It means that when they
make judgments about others, they project their own characteristics in others.eg. For a lazy
supervisor, every worker is lazy or idle
Attribution
Perception is also closely linked with another process called attribution. Attribution is a mechanism
through which we observe behaviour and then attribute certain causes to it. According to Attribution
theory, once we observe behaviour we evaluate it in terms of its consensus, consistency and
distinctiveness. Consensus is the extent to which other people in the same situation behave in the
same way. Consistency is the degree to which the same person behaves in the same way at different
times. Distinctiveness is the extent to which the same person behaves in the same way in other
situations. The forces within the person (internal) or outside the person (external) lead to the
behaviour.
For instance, if you observe that an employee is much more motivated than the people around (low
consensus), is consistently motivated (high consistency), and seems to work hard no matter what the
task (low distinctiveness) you might conclude that internal factors are causing that particular
behaviour. Another example is of a manager who observes that an employee is late for a meeting.
He might realize that this employee is the only one who-is laic (low consensus), recall that he is often
late for other meetings (high consistency), and subsequently recall that the same employee is
sometimes late for work (low distinctiveness). This pattern of attributions might cause the manager
to decide that the individual's behaviour requires a change. At this point, the manager might meet
the subordinate to establish some disciplinary consequences to avoid future delays.
Impression management
Social perception is concerned with how one individual perceives other individuals. Conversely,
impression management is the process by which the general people attempt to manage or control
the perceptions that others form about them. People often tend to present themselves in such a way
so as to impress others in a socially desirable manner. Thus, impression management has
considerable' implications for activities like determining the validity of performance appraisals. It
serves as a pragmatic, political tool for someone to climb the ladder of success in organizations.
Factors Affecting perception

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Perceptual selection is determined by two broad factors:
1. External factors
2. Internal factors
External factors
These factors relate the environment. They include:
A. Size – size determines the height or weight of an individual, object etc. bigger the size, higher will
be the perception.
B. Intensity- intensity attracts to increase the selective perception. Eg. An illuminated shop attracts
attention of the customers.
C. Repetition- repeated message and advertisement is more likely perceived than a single one.
D. Movements – moving objects are more likely to be perceived than a stationary object. A moving
car is more perceived than a parked car.
F. Status- high status people can influence the perception of employees than low status people. An
order from the Managing Director may be perceived by employees quickly.
G. Contrast - an object which contrasts with surrounding environment is more likely to be noticed.
E.g. “EXIT” sign in the cinema hall, Danger sign in transformers etc.
H. Novelty and Familiarity- this states that either the familiar or novel factor can serve as attention
better. E.g. Face of a film star can be identified even in a crowd.
I. Nature – perception level may be varied according to the nature of input or stimuli. Eg. A picture
attracts more attention than a word.
J. Order- the order in which the objects or stimuli are presented is an important factor for attention.
E.g. Welcome speech at the beginning will attract more attention. Like that, in film, suspense will be
revealed at last to heighten the curiosity and perceptive attention.
Internal factors
Internal or personal factors also influence the perception process. The important personal factors
are:
A. Learning- A perceptual set is basically what a person expects from the stimuli on the basis of
experience and learning relative to same or similar stimuli. E.g. Perception on sign board will be
different for those who learned driving and those who not.
B. Motivation- Motivation also plays an important role in influencing perception. E.g. A hungry person
will be very sensitive to the smell or sight of food than a non-hungry one.
C. Personality- perception is also influenced by personality especially young and old, man to women
etc.
D. Experience- successful experience enhances and boosts the perceptive ability and leads to
accuracy in perception whereas failure erodes confidence
PERCEPTUAL PROCESS:
Stage I: Receiving stimuli: The perception process starts with receiving stimuli. It depicts the
environmental stimuli being received by the fives sense organs.
Stage II: Selection of the Stimuli: In this stage, selection of some stimuli happens for further
processing while the rest are screened out. This is governed by factors external to the individual, such
as size, intensity, repetition, contrast and internal factors, such as the self-concept, belief,
expectation, response disposition of the perceiver.
Stage III: Organization of stimuli: The selected stimuli are organized in the perceiver’s mind to give it
a meaningful term. The perceiver is influenced by figure and ground and perceptual grouping.
Figure and Ground:

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What a person observes is dependent on how the central figure is being separated from its
background. This implies that the perceived object or person or event stands out distinct from its
background and occupies the cognitive space of an individual. In a dance programme, the spectators’
tend to perceive the dance performance against the back ground music, backdrop setup etc. The
perceiver thus tends to organize information which stands out in the significant environment.
Perceptual Grouping: It means grouping stimuli into an organized pattern. It happens on the basis of
proximity, similarity and closure.
Proximity: People tend to perceive things, which are nearer to each other, as together as group rather
than separately. If four or five members are standing together, we tend to assume that they are
belonging to the same group rather than separately. As a result of physical proximity, we often put
together objects or events or people as one group even though they are unrelated. Employees in a
particular section are seen as group.
Similarity: Persons, objects or events that are similar to each other also tend to be grouped together.
This organizing mechanism helps us to deal with information in an efficiently way rather than getting
bogged down and confused with too many details. For example, if we happen to see a group of
foreign nationals at an International seminar, Africans are grouped as one group, British as another,
Americans as yet another based on similarity of nationalities.
Closure: In many situation, the information we intend to get may be in bits and pieces and not fully
complete in all respects. However, we tend to fill up the gaps in the missing parts and making it as
meaningful whole. Such mental process of filling up the missing element is called closure. For
example, while promoting the staff, management will get full information to make an effective
decision. In absence of getting complete information, managers try to make meaningful assumptions
and based on that suitable decision will be made.
Stage IV: Interpretation: Assigning meaning to data is called interpretation. Once the inputs are
organized in the human mind, the perceiver interprets the inputs and draws conclusion from it. But
interpretation is subjective as different people interpret the same information in different ways.
Stage V: Behavior Response or Action: In this stage the response of the perceiver takes on both covert
and overt characteristics. Covert response will be reflected in the attitudes, motives, and feelings of
the perceiver and overt responses will be reflected in the actions of the individual.
IMPORTANCE OF PERCEPTION IN OB
People in organizations always assess others. Managers appraise their subordinate's performance,
evaluate how co-workers are working. When a new person joins a department he or she is
immediately assessed by the other persons. These have important effect on the organization.
Employment Interview: Employment interview is an important input into the hiring decision, and
perceptual factors influence who is hired and vis-à-vis the Quality of an organization’s labour force.
Performance Appraisals: Performance appraisal is dependent on the perceptual process. An
employee’s future is closely tied to the appraisal - promotion, pay raises, and continuation of
employment are among the most obvious outcomes.
Assessing the Level of Effort: In many organizations the level of an employee's effort is given prime
importance. Assessment of an individual's effort is a subjective judgment susceptible to perceptual
distortions and bias.
Productivity: What individuals perceive from their work situation will influence their productivity.
How a manager successfully plans and organise work of subordinates and helps them in structuring
their work is far less important than how his subordinates perceive his efforts. Therefore, to be able
to influence productivity, it is necessary to assess how workers perceive their jobs.

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Absenteeism and Turnover: Absence and Turnover are some of the reactions to individuals’
perception. Managers must understand how each individual interprets his job and where there is a
significant difference between what is seen and what exists and try to eliminate distortions. Failure
to deal with the differences when individuals perceive jobs negatively will result in increased
absenteeism and turnover.

Job Satisfaction:
If job satisfaction is to be improved, the worker's perception of the job characteristics, supervision
and the organization as a whole must be positive. Understanding the process of perception is
important because (1) It is unlikely that any person's definition of reality will be identical to an
objective assessment of reality. (2) It is unlikely that two different person’s definition of reality will
be exactly the same. (3) Individual perceptions directly influence the behaviour exhibited in a given
situation.

ATTITUDES
Attitude is a fairly stable emotional tendency to respond consistently to some specific object,
situation, person or category of people Every attitude has three components that are represented in
what is called the ABC model of attitudes: A for affective, B for behavioural and C for cognitive. The
affective component refers to the emotional reaction one has toward an attitude object. For example,
'I feel scared when I think about or see a snake.'
Attitude is defined as “a learned predisposition to respond in a consistently favorable or
unfavorable manner with respect to a given object.” That is, attitudes affect behavior at a
different level than do values.
Features of Attitude
1. Attitudes are learned from personal experience, information provided by others and
market controlled sources, in particular exposure to mass media.
2. Attitudes are pre-dispositions. A predisposition is an inclination or tendency towards
something; attitudes have motivational qualities
3. Attitudes have a relationship with behavior.
4. Attitudes are consistent. However, this does not necessarily mean that they are
permanent. Attitudes can change
5. Attitudes are directed towards an object and are very specific reasons to that object.
COMPONENTS OF ATTITUDE
Experts has pointed out three basic components of attitude. These are :
(i) Emotional or Affective: Emotional components include the feelings of a person about and object.
These feeling could be positive, negative or neutral. While customer service representative displays
positive feelings, a police officer or a bill collector would exhibit negative feelings. Similarly while
discharging administrative duties public servants are required to show neutral feelings. This basis of
attitude is made up of feelings, moods and emotions that have become associated with the attitude
object through past or current experience.
(ii) Informational or Cognitive: The beliefs and information that the individual has about the object
are the informational component of attitude. Here it makes little difference if the information is
correct or incorrect. The impact of an attitude is determined by the evaluation of whether the
attitude is good or bad, and the perceived likelihood that this attribute applies to the object.

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(iii) Behavioural or Intentional: This component of attitude consists of a tendency of an individual to
behave in a particular way towards and object. Only this component of attitude is visible as the other
two can only be inferred .The behavioural basis is made up of two kinds of information, past
behaviours and intentions to commit future behaviours.
For example, the different components of an attitude held towards a firm, which supplies inferior
products and that too irregularly could be described as:-
“ I don’t like that company “ – Affective component
“ They are the worst supply firm I have ever dealt with “ – Cognitive component
“I will never do business with them again “ – Intentional component

ATTITUDE FORMATION
Attitude refers to the feelings and beliefs of individuals or group of individuals. A person acquires
these attitudes from several sources. The important sources are :-
1. Personal Experience:
Attitudes form directly as a result of experience. They may emerge due to direct personal experience,
or they may result from observation. Employees develop attitude towards an organisation in terms
of salary , job evaluation, work design and managerial talents. When he joins in another organisation,
he holds all these past experiences that eventually results in the formation of an attitude.
2. Social Factors:
Social roles and social norms can have a strong influence on attitudes. Social roles relate to how
people are expected to behave in a particular role or context. Social norms involve society's rules for
what behaviours are considered appropriate.
3. Learning:
Attitudes can be learned in a variety of ways. Consider how advertisers use classical conditioning to
influence your attitude toward a particular product. In a television commercial, you see young,
beautiful people having fun in on a tropical beach while enjoying a sport drink. This attractive and
appealing imagery causes you to develop a positive association with this particular beverage.
4. Family and Peer groups:
Attitudes like values are acquired from parents, teachers and peer group members. In our early years,
we begin modeling our attitudes after whose we admire, respect or maybe even a fear.
We observe the way our family and friends behave and we shape our attitudes and behaviour to align
with theirs.
5. Economic status and occupation
The economic status and occupational position of the individual also affect his attitude formation.
Our socio-economic background influences our present and future attitudes. Researches have shown
that unemployment disturbs former religious and economic values. Children of professional class
tend to be conservatives
6. Mass Communication
Attitudes are generally less stable as compared to values. Advertising messages for example, attempt
to alter the attitude of the people toward a certain product or service. For example, if the people at
Hyundai Santro fan get you to hold a favourable feeling toward their cars, their attitude may lead to
a desirable behaviour ( for them) – your purchase of a Santro car
CHANGING ATTITUDES
Formation and change of attitude are interconnected. People are always adopting, modifying, and
relinquishing attitudes to fit there ever changing needs and interests. Most attempts to attitude

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change are done by a communicator who tries to use persuasion to modify existing beliefs or values
of an audience. Techniques used to affect attitude change are known as persuasion techniques. These
may take the form of written communications such as posters or newsletters, or face to face
communications such as conferences or meetings.
The traditional approach to most organisational attitude- change programs is to change beliefs and
or values in order to change attitudes and behaviour. Attitudes change when :-
1. A person receives new information from others or media – cognitive change
2. Through direct experience with the attitude object – Affective change.
3. Force a person to behave in a way different than normal- Behavioural change.
THEORIES OF ATTITUDE CHANGE
We tend to assume that people behave in accordance with their attitudes. However, social
psychologists have found that attitudes and actual behaviour are not always perfectly aligned.
After all, plenty of people support a particular candidate or political party and yet fail to go out and
vote. A number of different theories have tried to explain attitudes, their formation and their
relationship with affect and behaviour.
1.Learning theory
Classical conditioning, operant conditioning, and observational learning can be used to bring about
attitude change. Classical conditioning can be used to create positive emotional reactions to an
object, person, or event by associating positive feelings with the target object. Operant conditioning
can be used to strengthen desirable attitudes and weaken undesirable ones. People can also change
their attitudes after observing the behaviour of others.
2.Balance theory
It involves an individual’s evaluation of an attitude object and the evaluation of another individual. If
an individual has a positive attitude towards a second person, and a positive attitude towards a
certain object, the system will be in balance if the second person has a positive attitude towards the
object as well. If the second person held a negative attitude towards the object, the system would be
in imbalance, causing tension and the need to change one of these attitudes. The direction of change
will be determined by that which would involve theleast effort. The theory touches on the idea that
attitudes need to be consistent within a given individual.
3.Cognitive dissonance theory
Leon Festinger, the late 1950s proposed the theory of cognitive Dissonance. Dissonance is an aversive
motivational state which results from explicit behaviour being inconsistent with our attitudes. This
creates psychological tension which needs to be relieved. Therefore one would expect that people
should act in accordance with their attitudes in order to avoid dissonance.
In order to relieve this tension one’s attitude can change since behaviour which has already been
performed cannot change. Whether one’s attitude will change or not depend upon a number of
different factors such as incentive to commit the behaviour, commitment to the behaviour, and effort
put into the behaviour.
The individual will seek a stable state where there is minimum of dissonance, because an individual
cannot completely avoid dissonance. The desire to reduce dissonance is determined by three factors
1. Importance of the elements creating the dissonance
2. The degree of influence the individual believes he has over the elements.
3. The rewards that may be involved in dissonance
4. Self-perception theory
This theory states that individuals know their attitudes from inferring from their own behaviour.
Attitudes are casual verbal statements in this regard rather than strong predispositions. If we do not

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have any well-defined specific attitude, we will infer them from our behaviour. Conversely, if we do
have specific well defined attitudes, cognitive dissonance processes appear more likely to occur. Most
attitudinal theories accept that both processes do occur, yet under different circumstances.
5. Expectancy value theory
This theory state that an attitude towards an object will be chosen after all positive and negative
outcomes resulting form that attitude is weighed. The value of a particular outcome will be weighed,
as well as the expectancy that the outcome will occur. The attitude that maximizes gain will be in the
position that is adopted.
6. Cognitive response theory
This theory states that one reacts to a position with either positive or negative thoughts. These
thoughts determine whether the position will be supported or not. Again, the individual is seen as an
active processor in the formation of attitudes rather than a passive recipient. In relation to this theory
the “elaboration likelihood model” states that an individual can respond to a message in either a
thoughtful, rational way or an emotional, automatic way. This is referred to as either central or
peripheral processing respectively.
SELF VALUES, ATTITUDES AND JOB SATISFACTION
Values are important to study of organisational behaviour because they lay the foundation for the
understanding of attitudes and motivation. Values are the basis of human personality and area
powerful but silent force affecting human behaviour. Values are so much embedded in the
personalities of the people that they can be inferred from people’s behaviour and their attitudes. If
we search for the source of values, we see a significant portion is genetically determined. The rest is
attributable to factors like national culture, parental dictates, teachers, friends and similar
environmental influences. Majority of variation in values is die to environmental factors
Attitudes and Values
Attitudes are not the same as values, but the two are interrelated. Attitudes, like values, are acquired
from parents, teachers and peer group members. We are born with certain genetic predispositions.
We observe the way family and friends behave, and we shape our attitudes and behaviour
accordingly. People also imitate the attitude of popular individuals and those they admire and
respect.
In organisations, attitudes are important because they affect job behaviour. If workers believe, for
example that supervisors, auditors, bosses, and motion engineers are all in conspiracy to make
employees work harder for the same or less money; then it makes sense to try to understand how
these attitudes were formed, their relationship to actual job behaviour, and how they might be
changed.
TYPES OF WORK RELATED ATTITUDES
OB focuses our attention on a very limited number of job-related attitudes. Most of the research in
OB has been concerned with three attitudes: job satisfaction, job involvement, and organizational
commitment.
1. Job Satisfaction
Job satisfaction refers to a collection of feelings that an individual holds toward his or her job. A high
level of job satisfaction equals positive attitudes toward the job and vice versa. Employee attitudes
and job satisfaction are frequently used interchangeably. Often when people speak of “employee
attitudes” they mean “employee job satisfaction.”
Research results revealed that the job satisfaction has a tremendous impact on improving
productivity, enhancing quality requirements, and reduced absenteeism rate and employee turnover.

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Organisational factors that influence employee satisfaction include pay, promotion, policies and
procedures of the organisations and working conditions. Group factors such as relationship with co-
workers and supervisors also influence job satisfaction
A person with positive attitude is likely to have more job satisfaction, while a person with negative
attitude is likely to have job dissatisfaction towards his job. Job satisfaction is one of the major
determinants of an employees’ organisational citizenship behaviour. Satisfied employees would
seem more likely to take positively about the organisation, help others and go beyond the normal
expectation in their job.
2. Job Involvement
Job involvement is the measure of the degree to which a person identifies psychologically with his/her
job and considers his/her perceived performance level important to self-worth. High levels of job
involvement are thought to result in fewer absences and lower resignation rates.
Job involvement more consistently predicts turnover than absenteeism. It is the Psychological
empowerment—employees’ beliefs in the degree to which they impact their work. Employees with
a high level of job involvement strongly identify with and really care about the kind of work they do
in their job.
3. Organisational commitment
A state in which an employee identifies with a particular organization and its goals. Commitment may
be 1.Affective Commitment—emotional attachment to the organization and belief in its values and
2. Continuance Commitment—value of remaining with an organization compared to alternatives and
3. Normative Commitment—obligation to remain with the organization for moral or ethical reasons
Research evidence demonstrates negative relationships between organizational commitment and
both absenteeism and turnover. An individual’s level of organizational commitment is a better
indicator of turnover than the far more frequently used job satisfaction predictor because it is a more
global and enduring response to the organization as a whole than is job satisfaction. This evidence,
most of which is more than three decades old, needs to be qualified to reflect the changing employee-
employer relationship.
Organizational commitment is probably less important as a job-related attitude than it once was
because the unwritten “loyalty” contract in place when this research was conducted is no longer in
place. In its place, we might expect “occupational commitment” to become a more relevant
variable because it better reflects today’s fluid workforce.

LEADERSHIP
INTRODUCTION
Leadership is a process whereby an individual influences a group of individuals to achieve a common
goal. Leadership is defined as the process of influencing others to get the job done more effectively
over a sustained period of time. Leaders play a critical role in influencing the work behavior of others
in the system.
According to Pearce &Robinson, “Leadership is the process of influencing others to work towards the
attainment of specific goals.”
Importance of leadership
• Task support
• Psychological Support
• Development of individuals
• Building the team spirit
• Motivation

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• Provides feedback
• Facilitates change
• Maintains discipline
STYLES OF LEADERSHIP
A-Autocratic style, also known as authoritarian leadership, is a leadership style characterized by
individual control over all decisions and little input from group members. Autocratic leaders typically
make choices based on their own ideas and judgments and rarely accept advice from followers.
Autocratic leadership involves absolute, authoritarian control over a group.
Characteristics of Autocratic Leadership
Some of the primary characteristics of autocratic leadership include:
•Little or no input from group members
•Leaders make the decisions
•Group leaders dictate all work methods and processes
•Group members are rarely trusted with decisions or important tasks
Advantages:
Autocratic leadership can be beneficial in some instances, such as when decisions need to be made
quickly without consulting with a large group of people. Some projects require strong leadership in
order to get things accomplished quickly and efficiently.
In situations that are particularly successful, such as during military conflicts, group members may
actually prefer an autocratic style. It allows members of the group to focus on performing specific
tasks without worrying about making complex decisions..
Disadvantages:
While autocratic leadership can be beneficial at times, there are also many instances where this
leadership style can be problematic. People who abuse an autocratic leadership style are often
viewed as bossy, controlling, and dictatorial, which can lead to resentment among group members.
Because autocratic leaders make decisions without consulting the group, people in the group may
dislike that they are unable to contribute ideas.
B-Democratic style
It is also known as participative leadership, is a type of leadership style in which members of the
group take a more participative role in the decision-making process. Researchers have found that this
learning style is usually one of the most effective and lead to higher productivity, better contributions
from group members, and increased group morale.
Characteristics:
Some of the primary characteristics of democratic leadership include:
•Group members are encouraged to share ideas and opinions, even though the leader retains the
final say over decisions.
•Members of the group feel more engaged in the process.
•Creativity is encouraged and rewarded. Advantages:
Because group members are encouraged to share their thoughts, democratic leadership can leader
to better ideas and more creative solutions to problems. Group members also feel more involved and
committed to projects, making them more likely to care about the end results. Research on leadership
styles has also shown that democratic leadership leads to higher productivity among group members.
Disadvantages:
While democratic leadership has been described as the most effective leadership style, it does have
some potential downsides. In situations where roles are unclear or time is of the essence, democratic
leadership can lead to communication failures and uncompleted projects. In some cases, group

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members may not have the necessary knowledge or expertise to make quality contributions to the
decision-making process.
Democratic leadership works best in situations where group members are skilled and eager to share
their knowledge. It is also important to have plenty of time to allow people to contribute, develop a
plan and then vote on the best course of action.
C-Laissez-faire style
This style is also known as delegative leadership, it is a type of leadership style in which leaders are
hands-off and allow group members to make the decisions. Researchers have found that this is
generally the leadership style that leads to the lowest productivity among group members.
Characteristics:
•Very little guidance from leaders
•Complete freedom for followers to make decisions
•Leaders provide the tools and resources needed
•Group members are expected to solve problems on their own
Laissez-faire leadership can be effective in situations where group members are highly skilled,
motivated and capable of working on their own. While the conventional term for this style is 'laissez-
faire' and implies a completely hands-off approach, many leaders still remain open and available to
group members for consultation and feedback.
Disadvantages
Laissez-faire leadership is not ideal in situations where group members lack the knowledge or
experience they need to complete tasks and make decisions. Some people are not good at setting
their own deadlines, managing their own projects and solving problems on their own. In such
situations, projects can go off-track and deadlines can be missed.

THEORIES OF LEADERSHIP
There are three major approaches to leadership: a) trait theories, b) behavioral theories, c) situational
theories. Trait theories highlight that there exists a finite set of individual traits or characteristics that
distinguish successful from unsuccessful leaders. Behavioral theories highlight that the most
important aspect of leadership is not the traits of the leader, but what the leader does in various
situations. Successful leaders are distinguished form unsuccessful leaders by their particular style of
leadership. Situational theories outlines that the effectiveness of the leader is not only determined
by his or her style of behavior, but also by the situation surrounding the leadership environment.
Situational factors include the characteristics of the leader and the subordinates, the nature of the
task and the structure of the group.
TRAIT THEORY:
Some of the significant characteristics of leaders are categorized as follows:
- Physical Characteristics – age, appearance, height, weight
- Social Background – Education, social status, mobility
- Intelligence – Intelligence, ability, judgment, knowledge, decisiveness, fluency of speech
- Personality – Aggressiveness, alertness, dominance, enthusiasm, extroversion, independence,
creativity, personal integrity, self-confidence
- Task-related Characteristics – Achievement drive, drive for responsibility, initiative, persistence,
enterprise, task orientation
- Social Characteristics – Administrative ability, attractiveness, cooperativeness, popularity, prestige,
sociability, interpersonal skill, tack and diplomacy

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The list of important leadership traits is endless and grows with each passing year. It has not yet been
shown that a finite set of traits can distinguish successful from unsuccessful leaders. For example,
successful research administrators are usually inquisitive, independent, perspective, and experts
within their field. Successful sales manages are usually high-need achievers gregarious, enthusiastic
and project a professional stature, What may be important traits for one occupation may not be
important for other roles in the same organization. Uniformity of traits across all levels is thus
questioned. Trait identifies who the leader is, not the behavioral patterns he or she will exhibit in
attempting to influence subordinate actions.
BEHAVIOURAL THEORY:
The foundation for the style of leadership approach was the belief that effective leaders utilized a
particular style to lead individuals and groups to achieving certain goals, resulting in high productivity
and morale. Unlike trait theories, the behavioral approach focused on leader effectiveness, not the
emergence of an individual as a leader. There are two prominent styles of leadership such as task
orientation, and employee orientation.
Task orientation is the emphasis the leader place on getting the job done by such actions as assigning
and organizing the work, making decision, and evaluating performance. Employee orientation is the
openness and friendless exhibited by the leader and his concern for the needs of subordinates. Two
major research studies directed toward investigating the behavioral approach to leaderships is i) Ohio
State University Studies and ii) University of Michigan Studies.
Ohio State Studies: Initiating Structures and Consideration: They identified two independent
leadership dimensions.
- Initiating Structure: This concerned the degree to which the leader organized and defined the task,
assigned the work to be done, established communication networks and evaluated work- group
performance.
- Consideration, which was defined as behavior that involves trust, mutual respect, friendship;
support and concern for the welfare of the employee. Consideration refers to an emphasis on an
employee orientation leadership style. Their findings indicated that a mixture of initiating- structure
and consideration leader behavior, depends largely on situational factors.

Michigan State Studies: Two distinct styles of leadership were developed from their studies:
- Job-centered leaderships style, which focused on the use of close supervision, legitimate and
coercive power, meeting schedules and evaluating work performance.
- Employee-centered style, which is people oriented and emphasises delegation of responsibility and
a concern for employee welfare, needs, advancement and personal growth. Their findings reported
that employee centered and job centered styles result in productivity increase. However, job
centered behavior created tension and pressure and resulted in lower satisfaction and increased
turnover and absenteeism. Employee centered style is the best leadership style.
-Leadership’s style is too complex to be viewed as uni-dimensional, but more than two dimensions
may complicate the interpretation of leadership behavior. The measurement of leadership style for
each of the approaches was accomplished through the use of a questionnaire. This method of
measurement is both limited and controversial. Further, in search of the most effective leadership’s
style, the research findings suggested that a universally accepted best style was inappropriate to the
complexities of modern organizations.
Managerial Grid: The five basic approaches to management identified by Black and Mouton are
based on the two dimensions of concern of people and concern for production that are associated
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with leaders. A managerial grid is formed based on these two dimensions which are rated on 9 point
scale. If manager is securing the lowest score on these two dimensions I,I is identified as impoverished
style of managers who are low on both their concern of people and production, 1,9 or country club
style is designated to those managers who are having high concern for people but low concern for
production. The 5, 5 or the middle-of-the road style concerns the moderate levels of concern for both
people and production. The 9,1 or task management style is one where there is a high concern for
production but very little concern for people and finally, 9,9 or team management style is one where
the manager has high concern for both people and production. According to Blake and Mouton the
one best style for all mangers is the 9,9 or team management style.
Likert’s System Four Model: Rensis Likert suggests that managers operate under four different
systems.
System I – Exploitative Authoritative: The manager believes in very authoritarian manner and
actually exploits the subordinates
System II – Benevolent Authoritative: The manager takes a paternalistic approach while still being
autocratic. Behaving as benevolent autocratic, the leader maintains strict control over the
subordinates albeit in a paternalistic manner.
System III – Consultative: The manager consults the subordinates and still maintains the right to
make the final decision.
System IV – Participative Groups: The manager uses a democratic style and makes decision by
consensus and majority vote.
Likert feels that the best way for all organizations to manage employees is to move towards System
IV.
Situational Theory:
Situational approaches to leadership take the position that there is no “one best way to lead in all the
situations. Effective leadership style will vary from situations to situation, depending on several
factors such as the personality predisposition of the leaders, the characteristics of the followers, the
nature of task being done and other situational factors.
Tannenbaum and Schmidt reported that the use of authority by the manager (boss centered
leaderships style) or the area of freedom given to subordinates (subordinate centered leadership) is
a function of the following factors such as i) forces in the manager – value system, confidence in
subordinates, leadership predispositions and feelings of security and insecurity), ii) forces in the
subordinates (their needs for independence or dependence, readiness to assume responsibility,
tolerance for ambiguity, abilities, knowledge and experience and inclination to participate in decision
making) and iii) forces in the situation (type of organization, group effectiveness, time pressures and
the nature of the problem itself)
Fiedler’s Contingency Model of Leadership: Fiedler developed a model to predict work group
effectiveness by taking into consideration the best fit between the leadership style and the degree of
favorableness of the situation. The following three factors are considered to check whether the
situation will be favorable or unfavorable. These factors are i) Leader- Member relations, ii) Task
structure of the group, iii) Perceived position power of the manager.
Leadership Style Assessment – Leased Preferred Coworkers Scale: Fiedler developed a scale to rate
the type of relationship a supervisor holds towards the least preferred coworkers on a twenty-item
questionnaire. The supervisor is asked to describe the person with whom he has associated with
leaders. A managerial grid is formed based on these two dimensions which are rated on 9 point scale.
If manager is securing the lowest score on these two dimensions I,I is identified as impoverished style
of managers who are low on both their concern of people and production, 1,9 or country club style

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is designated to those managers who are having high concern for people but low concern for
production. The 5, 5 or the middle-of-the road style concerns the moderate levels of concern for both
people and production. The 9,1 or task management style is one where there is a high concern for
production but very little concern for people and finally, 9,9 or team management style is one where
the manager has high concern for both people and production. According to Blake and Mouton the
one best style for all mangers is the 9,9 or team management style.

INSPIRATIONAL APPROACHES TO LEADERSHIP

These contemporary leadership theories view leaders as individuals who inspire followers through
their words, ideas, and behaviors.
A. Charismatic Leadership. Charisma, as defined by Max Weber, is “a certain quality of an individual
personality, by virtue of which he or she is set apart from ordinary people and treated as endowed
with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are not
assessable to the ordinary person, but are regarded as of divine origin or as exemplary, and on the
basis of them the individual concerned is treated as a leader.”

B. Transformational Leadership. While transformational leadership does divide leadership into two
categories, these are not opposites but complements. Transformational leadership builds on top of
transactional leadership and produces levels of follower effort and performance that go beyond what
would occur with a transactional approach alone. But the reverse is not true.

Leadership Types. This theory of leadership divides leaders into two types, based on their methods
and outcomes:
a. Transactional Leaders: those who guide or motivate their followers in the direction of establish
goals by clarifying role and task requirements. These leaders were described in the other (non-
inspirational) sections of this chapter.
b. Transformational Leaders: those who inspire followers to transcend their own self- interests for
the good of the organization and are capable of having a profound or extraordinary effect on their
followers.

What Makes Leadership Effective:

The following points make the leadership effective. Sound mental and physical health
• Knowledge and Intelligent Clear cut and worthy goal Conviction
• Sense of responsibility Motivation
• Initiative and Drive
• Leader’s own personality, past experience & expectation
• Expectation & behaviour of his superior Expectation & behaviour of his subordinate Task
Requirement Organisational culture & climate

MOTIVATION
Nature and importance of Motivation:
We define motivation as the processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal.
Importance of Motivation

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• To increase work efficiency
• To combine ability with willingness
• To reduce the rate of labour turnover
• To develop leadership quality
THEOREIS OF MOTIVATION
Maslow’s Hierarchy of Needs
The best-known theory of motivation is Abraham Maslow’s hierarchy of needs. Maslow hypothesized
that in every human being, there exists a hierarchy of five needs:
1. Physiological. Includes hunger, thirst, shelter, sex, and other bodily needs
2. Safety. Includes security, protection from physical and emotional harm
3. Social. Includes affection, belongingness, acceptance and friendship
4. Esteem. Includes internal factors such as self-respect, autonomy, and achievement, and external
factors such as status, recognition, and attention
5. Self-actualization. Drive to become what we are capable of becoming; includes growth, achieving
our potential, and self-fulfillment.
Although no need is ever fully gratified, a substantially satisfied need no longer motivates. Thus as
each need becomes substantially satisfied, the next one becomes dominant. So if you want to
motivate someone, according to Maslow, you need to understand what level of the hierarchy that
person currently is and focus on satisfying needs at or above that level.
Implications of Maslow’s Hierarchy of Needs Theory
This model helps the managers to understand and deal with issues of employee motivation at the
workplace. The model can be applied to motivate people at all levels in the organization. Managers
who understand the need patterns of their staff can help the employees to engage in appropriate
work activities and provide the work environment that will satisfy their needs. For instance, the
employees love and belonging needs can be fully satisfied by organizing yearly dinner and dance
program, office week end parties, creating recreation clubs or social clubs etc.
Herzberg’s Two-Factor Theory of Motivation
Herzberg’s Two-Factor Theory is also called motivation-hygiene theory. The theory relates intrinsic
factors to job satisfaction. It associates extrinsic factors with dissatisfaction.
Hygiene factors; company policy and administration, supervision, and salary - when adequate in a
job, pacify workers. Herzberg argued that improvement in the hygiene factors would only minimize
dissatisfaction but not increase satisfaction and motivation
Motivating Factors
The presence of motivating factors always ensures job satisfaction and happiness among the
employees. They are: achievement, recognition, responsibility, advancement, growth and the work
itself. These factors are related to the work content.
Implications for Managers
. The two-factor theory would predict that improvements in motivation would only appear when
managerial action focused not only the factors surrounding the job but on the inherent in most
assembly line jobs and developing jobs that can provide increased levels of challenge and
opportunities for a sense of achievement, advancement, growth and personal development.

ERG THEORY:
ERG Theory:
Alderfer proposed a modified version of Maslow’s need hierarchy and labeled it as ERG theory.

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Alderfer’s ERG refers to three groups of core needs – Existence, Relatedness and Growth(ERG).
Existence Needs:
These refer to the various forms of physiological needs, such as hunger, thirst and shelter. In
organizational settings, the need for pay, benefits, and physical working conditions are included in
this category. This category is comparable to Maslow’s physiological and certain safety needs.
Relatedness Needs:
These needs include interpersonal relationships with others at work. This type of needs in individuals
depends on the process of sharing and mutuality of feelings between others in order to attain
satisfaction. This category of needs is similar to Maslow’s safety, social and certain ego-esteem needs.
Growth Needs:
These needs involve a person’s effort to personally grow on the job. Satisfaction of growth needs
results individuals engaging in tasks that not only require the full use of capabilities but also require
the development of new capabilities. Maslow’s self-actualization and certain of his ego esteem needs
are comparable to growth needs.
Implications of ERG Theory:
Alderfer has proposed two sets of views on individual’s aspirations and fulfillment. One is satisfaction-
progression and the other is frustration-regression. Satisfaction-progression is similar to Maslow’s
model in which once an individual’s basic needs are satisfied, he/she will progress to the next level
to satisfy the succeeding higher level needs satisfied. Alderfer proposed yet another view of
individual’s aspirations and fulfillment. If people eventually become frustrated in trying to satisfy their
needs at one level, their next lower level needs will re-emerge and they will regress to the lower level
needs. This is called frustration-regression. For manages, ERG theory provides a more workable
approach to employee motivation. Because of the frustration-regression component, the manager
should direct employee behavior in a constructive manner even though higher order needs are
temporarily frustrated.
Theory X - The Hard Approach and Soft Approach
Under Theory X, management approaches can range from a hard approach to a soft approach.
The hard approach relies on coercion, implicit threats, close supervision, and tight controls,
essentially an environment of command and control. The soft approach is to be permissive and seek
harmony with the hope that in return employees will cooperate when asked to do so.
However, neither of these extremes is optimal. The hard approach results in hostility purposely low-
output and hard-line union demands. The soft approach results in ever-increasing requests for more
rewards in exchange for ever-decreasing work output.
The optimal management approach under Theory X probably would be somewhere between these
extremes. However, McGregor asserts that neither approach is appropriate because the assumptions
of Theory X are not correct.
The Problem with Theory X
Drawing on Maslow's hierarchy, McGregor argues that a satisfied need no longer motivates. Under
Theory X the firm relies on money and benefits to satisfy employees' lower needs, and once those
needs are satisfied the source of motivation is lost. Theory X management styles in fact hinder the
satisfaction of higher-level needs. Consequently, the only way that employees can attempt to satisfy
their higher level needs in their work is by seeking more compensation, so it is quite predictable that
they will focus on monetary rewards. While money may not be the most effective way to self-
fulfillment, in a Theory X environment it may be the only way. Under Theory X, people use work to
satisfy their lower needs, and seek to satisfy their higher needs in their leisure time. But it is in
satisfying their higher needs that employees can be most productive.

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McGregor makes the point that a command and control environment is not effective because it relies
on lower needs as levers of motivation, but in modern society those needs already are satisfied and
thus no longer are motivators. In this situation, one would expect employees to dislike their work,
avoid responsibility, have no interest in organizational goals, resist change, etc., thus making Theory
X a self-fulfilling prophecy. From this reasoning, McGregor proposed an alternative: Theory Y.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that they are never
completely satisfied. As such, it is these higher-level needs through which employees can best be
motivated.
Theory Y makes the following general assumptions:
Work can be as natural as play and rest.
People will be self-directed to meet their work objectives if they are committed to them.
People will be committed to their objectives if rewards address higher needs such as self-
fulfillment.
Under these conditions, people will seek responsibility.
Most people can handle responsibility because creativity and ingenuity are common in the
population.
Under these assumptions, there is an opportunity to align personal goals with organizational goals by
using the employee's own quest for fulfillment as the motivator. McGregor stressed that Theory Y
management does not imply a soft approach.
McGregor recognized that some people may not have reached the level of maturity assumed by
Theory Y and therefore may need tighter controls that can be relaxed as the employee develops.
Theory Y Management Implications
If Theory Y holds, the firm can do many things to harness the motivational energy of its employees:
Decentralization and Delegation - If firms decentralize control and reduce the number of levels of
management; each manager will have more subordinates and consequently will be forced to delegate
some responsibility and decision making to them.
Job Enlargement - Broadening the scope of an employee's job adds variety and opportunities to
satisfy ego needs.
Participative Management - Consulting employees in the decision making process taps their creative
capacity and provides them with some control over their work environment.
Performance Appraisals - Having the employee set objectives and participate in the process of
evaluating how well they were met.
If properly implemented, such an environment would result in a high level of motivation as
employees work to satisfy their higher level personal needs through their jobs.
Difference between Theory X and Theory Y of Motivation and its Critical Appraisal
McGregor’s theory of motivation is simple. It helped to crystallise and put into right perspective the
findings of the Hawthorne Experiments. It has generated wide ranging and lasting interest in the field
of motivation. This theory offers a convenient framework for analysing the relationship between to
motivation and leadership style.
Despite its significance; McGregor’s theory has been criticised for various reasons. First, it tends to
over-generalise and over-simplify people as being one way or the other. People cannot be put into
two extreme patterns or stereotypes. The theory overlooks the complex nature of human beings. No
enterprise man may belong exclusively either to Theory X or to Theory Y. He may share the traits of
both, with emphasis shifting from one set of properties to the other with changing motives (internal),

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and varying (external) environment. Secondly, McGregor’s theory squeezes all managerial styles and
philosophies into two extremes of conduct which is devoid of reality.
Thirdly, Mc Gregory suggests tacitly that job itself is the key to motivation. But all persons do not look
for motivation in the job and not all work can be made intrinsically challenging and rewarding. Lastly,
some managers may have Theory Y assumptions about human nature, but they may find it necessary
to behave in a very directive and controlling manner with some people in the short run to help them
grow up in a developmental sense until they are truly Y people.
A question often posed in which theory (X or Y) is better. Most people believe that Theory Y is more
desirable and productive. But it may not be the best approach for all situations. Theory X might be
more suitable in some crisis situations but less appropriate in more routine and formalised situations.
In some under-developed countries like India Theory X may still be useful at the lower levels of
organisation. Neither Theory X nor Theory Y is the best for all situations. An amalgam of both the
theories may be more useful than either of the two alone. The best approach to motivation is one
that is appropriate to the situation.
The appropriate theory is contingent upon the nature of the work to be done and the particular needs
of the individual. In other words, contingency approach is the best approach to motivation.
McGregor’s theory is an improvement over the traditional view that you can motivate employees by
paying them more money.

Financial and non-financial motivators

Motivating staff is an integral part of every organisation. People usually need to work in order to
make money. Although it is a strongest incentive, it is not the only one. People will enjoy their job
and gain satisfaction from it, if they know that they are achieving results. Motivation can be
categorised into Financial Motivation and Non-Financial Motivation
Financial motivators
Though Monetary Motivators have much criticism, money is still used by many firms as a major
incentive or motivator. It includes
1.Wages and Salaries
. It can be calculated in two ways:
Piece Rate: this is where the workers are paid depending on the quantity of products made. The
more they make the more they get paid. This system of wages is followed where the output can be
counted.
Time Rate: This payment by the hour. The longer you work the more you get paid. This system of
wages is followed where the output cannot be measured.
2. Commission: It is often paid to sales staff. The certain percentage of commission is paid to sales
person who exceed a certain level of sales. It motivates the sales staff to sell more.
3. Profit Sharing: Employees receive a share of the profits in addition to their basic salary.
4. Bonus: Extra amount is paid to workers once a year or at intervals during the year as an
appreciation of their hard work.
5. Performance related pay: Employee pay is linked to their performance in work. An Appraisal is
carried out for the employee and they get paid according to their appraisal.
6. Share ownership: As a gesture of appreciation for the hard work of the employees a business might
offer stock options to its employees. This motivates them to worker even harder because they are
also the owners of the company.
Non-Financial Motivation Methods

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Most businesses recognise the need for non-financial methods of motivation. The main ones are
described briefly below:
1.Job enlargement
Job enlargement involves adding extra, similar, tasks to a job. In job enlargement, the job itself
remains essentially unchanged. However, by widening the range of tasks that need to be performed,
hopefully the employee will experience less repetition and monotony.
With job enlargement, the employee rarely needs to acquire new skills to carry out the additional
task. A possible negative effect is that job enlargement can be viewed by employees as a requirement
to carry out more work for the same pay!
2. Job rotation
Job rotation involves the movement of employees through a range of jobs in order to increase
interest and motivation.
For example, an administrative employee might spend part of the week looking after the reception
area of a business, dealing with customers and enquiries. Some time might then be spent manning
the company telephone switchboard and then inputting data onto a database.
Job rotation may offer the advantage of making it easier to cover for absent colleagues, but it may
also reduce' productivity as workers are initially unfamiliar with a new task. Job rotation also often
involves the need for extra training.
3. Job enrichment
Job enrichment attempts to give employees greater responsibility by increasing the range and
complexity of tasks they are asked to do and giving them the necessary authority. It motivates by
giving employees the opportunity to use their abilities to the fullest. Successful job enrichment almost
always requires further investment in employee training.
4. Teamworking and empowerment
Empowerment involves giving people greater control over their working lives. Organising the labour
force into teams with a high degree of autonomy can achieve this. This means that employees plan
their own work, take their own decisions and solve their own problems. Teams are set targets to
achieve and may receive rewards for doing so. Empowered teams are an increasingly popular method
of organising employees at work.
NEED FOR INCENTIVE PROGRAMS FOR MOTIVATION
Employee Incentive Programs reward exceptional employees for reaching work goals, achieving
milestones or simply doing a good job. These types of programs are designed to offer incentive and
rewards to valued employees. Employee Incentive Programs have proven very successful in arousing
motivation in employees and increasing the overall performance of the company. An incentive
program is a great way to show employees that you value their input while at the same time
increasing your businesses potential.
The need for incentive programs for motivation can be summarised as follows:-
1. Mutual Rewards
An Employee Incentive Program is mutually beneficial. The employee feels valued and motivated and
is therefore more productive and committed. The company reaps the benefits of a motivated,
focused and loyal employee. The results of Incentive Programs have a consistent theme. The
company’s bottom line increases as the employee’s productivity peaks.
2. Increased motivation
Many people find it hard to motivate themselves at work. This is a common occurrence and one that
has been significantly effected by Incentive Programs. These programs motivate employees by
offering rewards for reaching targets and company goals. These come in many forms ranging from

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cash to cars to holidays to gifts. The rewards are a great motivator but what is more inspiring for the
employee is that the company cares enough to offer these incentives.
3. Increased company morale
Rewards, incentives and recognition make for a happy, harmonious working environment. Goal
setting and targeting objectives helps with focus and purpose. Employee Incentive programs offer all
of these things and are highly conducive to company morale. Increases in company morale help to
reduce absenteeism and overall company costs.
4. Increase company loyalty
Company loyalty is not something you can buy. However incentives for good work and rewards for
hard work go a long way to securing commitment from employees. Employee incentive programs
show employees the company values their input and their work. If an employee feels valued and
appreciated they are more likely to form an allegiance to the company.
5 .Increased productivity
Incentive programs promote productivity in a number of ways. Employees are offered incentives for
reaching targets or for good work in general. These incentives vary but the main aim is to encourage
employees to work towards company goals. With the promise of incentives and clearly defined
targets employees are more productive and motivated.
7. Increase objective achievement
Incentive Programs are a great way to reach targets and company objectives. Using an Incentive
Program employers can set realistic goals and reward employees when the reach them. This is a great
way to boost productivity and morale while at the same time achieving company goals.
8. Reduced company costs
Overall company costs can be reduced as a result of an Incentive Program. This cost can be measured
in terms of reduced absenteeism, reduced recruitment costs and turnover of staff. You will also see
a significant return on your investment via increased productivity and motivation within the office.
9. Reduced Absenteeism
The bottom line with incentive programs comes down to the very simple fact that people like being
rewarded for hard work and a job well done. The rewards are only part of the equation. Incentive
schemes show employees the company cares and appreciates the work they are outputting. If an
employee feels appreciated and has clear targets that result in rewards then they are more likely to
want to come to work.
10. Team Work
Incentive Programs promote teamwork and foster an environment that is conducive to success.
Employees working towards rewards or targets will pull together to achieve desired results.
Teamwork increases efficiency and creates harmony within the workplace.
11. Decreased Turnover
Incentive Programs foster happy, productive working environment. Employees enjoying this kind of
environment will be more likely to stay long term. This means incentive programs reduce the amount
of turnover within the company. The advantage of consistent staffing is that you are not spending
money on recruiting or training new staff. You are also able to retain loyal, committed employees
with vested company interest.

GROUP DECISION MAKING:

This refers to the decision made by the members of a group Groups offer excellent techniques for
performing the steps in the decision making process. If the group is composed of individuals with
diverse backgrounds, the alternatives generated should be more extensive and analysis more critical.

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Strengths of Group Decision-making:
i) More information and knowledge: By aggregating the resources of several individuals, the group
brings more input into the decision process.
ii) Increased diversity of views: Group brings heterogeneity to the decision-making process and this
opens up the opportunity for more approaches and alternatives to be considered. iii) Increased
acceptance of a solution: The group acceptance facilitates higher satisfaction among those
employees required to implement it. iv) Increased legitimacy: The group decision making process is
consistent with demographic ideals and therefore may be perceived as being more legitimate than
decisions made by an individual.
Weakness of group decision making: Some of the main disadvantages are:
i) Time-consuming: It takes time to assemble a group.
ii) Pressures to conform: The desire by group members to be accepted and considered as an asset to
the group can result in squashing any overt disagreement, thus encouraging conformity among
viewpoints.
iii) Domination by the few: Few people will try to dominate the group discussion. If such people are
happened to be mediocre, the group overall effectiveness will suffer.
iv) Ambiguous responsibility: In group decision, the responsibility of any single member is reduced.
Teams require individuals with technical expertise, as well as problem-solving, decision- making and
interpersonal skills and high scores on the personality characteristics of extroversion, agreeableness,
conscientious and emotional stability. Effective teams are neither too large nor too small- typically
they range in size from five to twelve people. They also have adequate resources; effective leadership
and a performance evaluation and reward system that reflect team contribution. Effective teams
have members committed to a common purpose, specific team goals, members who believe in the
team’s capabilities and a manageable level of conflict.

ORGANIZATIONAL CONFLICTS
Human beings experience conflict in their everyday life. Hence organizations are not free of it. Conflict
has considerable influence on individual and organizational performance. Therefore conflict
management is very necessary.
According to Kolb and Bartinek, “conflict can be a disagreement, the presence of tension, or some
other difficulty within or between two or more parties.
TYPES OF CONFLICTS
Intrapersonal Conflict: When conflict occurs within an individual, it is called intrapersonal conflict. It
occurs in three ways.
a) Approach-Approach Conflict-Here an individual must choose between two alternatives which have
expected positive outcome.

b) Avoidance-Avoidance Conflict- Here an individual must choose between two alternatives which
have expected negative outcome.
c) Approach-Avoidance Conflict- Here an individual must decide whether to do something that is
expected to have both positive and negative outcome.

Inter-personal Conflict: When conflict occurs between an individual and another it is called
interpersonal conflict.
Intra-group Conflict: it occurs within one group,

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Intergroup Conflict: When conflict occurs amongst different groups, it is called intergroup conflict. It
occurs in three ways.
a) Vertical Conflict- refers to conflicts between individuals at different levels. Conflict between the
superior and subordinate is an example of vertical conflict.
b) Horizontal conflict- refers to tension between employees or groups at the same hierarchical level.
Horizontal conflict occurs because of interdependence among the parties concerned in the work
situation.
c) Line & Staff Conflict- It refers to the conflicts that arise between those who assist or act in an
advisory capacity (staff) and those who have direct authority to create the products, process, and
services of the organizing (line).

CONFLICT PROCESS
The conflict process can be categorized into five stages. They are as follows:
Stage I: Potential opposition or incompatibility:
This covers the present condition that creates opportunity for conflicts to arise. This may be one of
the conditions responsible for the occurrence of conflict. The major sources of conflict can be further
categorized as communication, structure and personal variables. Communication: It is reported that
word connotations, jargon, insufficient exchange of information and noise in the communication
channel are all barriers to communication and potential antecedent conditions to conflict.
Stage II: Cognition and personalization:
Perception or sense making plays a major role in the resolving conflict. Conflict may either be
perceived or felt in nature. Perceived conflict is defined as awareness by one or more parties of the
existence of conditions that create opportunities for conflict to arise. Felt conflict is defined as
emotional involvement in a conflict creating anxiety, tenseness, frustrations or hostility. Negative
emotions have been found to produce over simplification of issues, reductions in trust, and negative
interpretations of the other party’s behavior.
Stage III: Intentions:
Using two dimensions – cooperativeness (the degree to which one party attempts to satisfy the other
party’s concerns) and assertiveness (the degree to which one party attempts to satisfy his or her own
concerns) – five conflict handling intentions can be identified. They are as follows: i) competing
(assertive and uncooperative), ii) collaborating (assertive and cooperative), iii) avoiding (unassertive
and uncooperative), iv) accommodating (unassertive and cooperative) and ii) compromising (mid-
range on both assertiveness and cooperativeness).
Stage IV: Behaviour:
All conflicts manifest in behavior somewhere along with continuum ranging from no conflict or minor
conflict such as minor disagreements or misunderstanding, overt questioning or challenging of
others, to annihilatory conflict such as threats and ultimatum, aggressive physical attacks or overt
efforts to destroy the other party.
Stage V: Outcomes:
The outcomes of conflict may be functional or dysfunctional. Conflict is constructive when it improves
the quality of decision, stimulates creativity and innovation, encourages interest and curiosity among
group members, provides the medium through which problems can be aired and tensions released
and fosters an environment of self-evaluation and change.
CAUSES OF INTER-GROUP CONFLICTS:
There are three basic sources of inter-group conflict: i) goal incompatibility, ii) decision-making
requirements and iii) performance expectations.

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A. Interdependence: Conflict potential increases when groups are interdependent. The different
types of Interdependence are as follows:
1. Pooled interdependence—no direct interaction occurs between groups; interdependence exists
because their pooled performance determines organizational performance (e.g., the Cadillac, Buick
and Chevrolet divisions at General Motors).
2. Sequential interdependence—Occurs when one group must complete its task before another
group can complete its task (e.g., two groups on an assembly line). Makes conflict more likely because
output (quality and quantity) of one group depends on the task input of another.
3. Reciprocal interdependence—the output of each group is the input for other groups and vice versa
(e.g., the anesthesiology, nursing, and surgical teams in an operating room). All organizations have
pooled interdependence; complex organizations have sequential interdependence; and the more
complex organizations have reciprocal interdependence.
B. Goals Difference: Groups with different goals have different expectations that can cause conflict
when the groups interact. Goal differences become more evident when resources are limited and are
allocated across groups. Conflict pressures increase when groups think resources have not been
allocated equitably. Different goals can produce different perceptions. Different time horizons can
produce different time perspectives and affect perceived importance of problems (e.g., a company
president's time perspective of five-to-ten years vs. a foreman's perspective of one month to one
year).
C. Perceptual Differences: Status incongruence-one group perceiving itself as more prestigious than
another can provoke intergroup conflict. Inaccurate perceptions often cause groups to develop
stereotypes about other groups, which can provoke conflict and erode intergroup relations.
When conflict is low rational model describes the organization where goals are consistent across
participants, power and control are centralized, decision process are orderly, logical, rational, rules
and norms are norms of efficiency, information is extensive, systematic and accurate.
When conflict is high political model describes the organization where goals are inconsistent and
pluralistic within the organization, power and control are decentralized and shifting coalitions and
interest groups, decision process are disorderly and result of bargaining and interplay among
interests.
Conflict management Techniques:
The various strategies for minimizing and resolving conflicts can be classified into five categories: i)
Avoidance, ii) Accommodating, iii) Compromise, iv) Competition and v) Collaboration.
Avoidance:
This strategy involves a general disregard for the causes of the conflict and the person might
diplomatically sidestep a conflicting issue, postpone addressing it till later, or withdraw physically or
psychologically from a threatening situation. Avoiding mode is used when the individual is both
unassertive and uncooperative – that is, the person has very low concern for his own and his
opponent’s needs. The individual follows the following three methods
i) Non-attention: The manager totally avoids or ignores the dysfunctional situation. Individuals tend
to “look the other way” or disregard hostile action in hopes that the situation will resolve itself in
time
ii) Physical separation: It involves moving conflicting groups physically apart from each other. The
rationale is that if the groups cannot interact, conflict will diminish.
iii) Limited interaction: Groups are allowed to interact only on formal situations.
Accommodation:

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Accommodation is a negotiation style where one party is willing to oblige or adapt to meet the needs
of the other party. That party that accommodates loses and the other party wins. Accommodation is
useful for negotiation on minor matters. The negotiation parties may not look for creative, new
solutions. Accommodation might take the form of selfless generosity, or obeying another’s order
rather unwillingly or giving in to another person’s point of view. In all these cases, the individual
neglects his or her own concern to satisfy the concerns of their other party. There is an element of
self-sacrifice.
Competition:
Competition occurs when one party negotiates to maximize its results at the expense of the other
party’s needs. Competition leads to one party gaining the advantage over the other. One party wins
while the other party loses. Although it is quick and can be used as counter against another person,
this option usually produces a win-lose result. Competing is a power oriented mode of resolving
tension and one uses whatever power one has or can muster such skills, knowledge, abilities, rank
being well-connected etc. to win.
Compromising:
Compromise is the settlement of differences through concessions of one or both parties. In
compromising, the party tries to find some expedient, mutually acceptable solutions with partially
satisfies both parties, though neither is fully satisfied. A compromising stance addresses the issue
without avoiding it, but does not explore the alternative in a way that would be completely satisfying
to both parties as in the case of collaboration. Compromising involves “splitting the difference”,
exchanging concessions and seeking quick middle-ground solutions.
Collaboration:
Collaboration occurs when people cooperate to produce a solution satisfactory to both. Collaborating
involves an attempt to work with the other person to find solutions that would be satisfying to both
parties. Here, the underlying concerns of both parties are explored in depth, the disagreements
examine in detail and resolutions arrived at by combining the insights of both the parties. A creative
solution usually emerges because of the joint efforts of both the parties who are keen on both gaining
from the situation without hurting the other.

ORGANISATIONAL CHANGE
The way we individuals change due to age, education, change of job, illness, change in geographical
area, organizations also change due to several reasons over a period of time. Change is necessary for
survival and growth. Changes constantly take place in our environment. Changes occur outside
organizations that requires internal adaptation. The manager has to ensure that an individual and
groups in organizations, and structures, process and behaviors of sub-systems adapt to the changing
external and internal environments. In effect, the manager is a change agent who facilitates changes
in the various subsystems of the organization.
Any alteration which occurs in the overall work environment of an organization is called
organizational change.
FACTORS AFFECTING CHANGE:
There are both external and internal forces that result in pressure for change,
External Factors:
The external forces that create the need for change come from various sources. Some of them are as
follows:
a- Competitive Market Force: Competition is changing. The global economy means that competitors
are as likely to come from across the ocean as from across town. Heightened competition also means

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the established organizations need to defend themselves against both traditional competitors that
develop new products and services and small, entrepreneurial firms with innovative offers. Successful
organizations will be the ones that can change in response to the competitor.
Government laws and regulations:
These are frequent impetus for change. E.g. creation of special economic zones and foreign direct
investment sparks major changes in various industries such as IT Industries, Insurance, and Car
manufacturing industries.
b-Technology:
It creates the need for change. For example, technological developments in sophisticated and
extremely expensive diagnostic equipment have created significant economy of scale for hospitals
and medical centers. Assembly-line technology is undergoing dramatic change as organizations
replace human labor with robots. Even in the greetings card industry, electronic mail and internet
have influenced the way people send greetings.
c-Labor Markets:
The fluctuation in labor markets forces managers to change. For instance, the demand for webpage
designers and website managers made it necessary for organizations that need those kinds of
employees to change their human resources management activities to attract and retain skilled
employees in the areas of greatest need.
d-Economic Changes:
Economic changes affect almost all organizations. The appreciation of Kenya shilling value against the
US dollar affects the export prospects of agricultural products to America as those products cost more
to Americans. But even in strong economy, uncertainties about interest rates, government budgets
deficits and current exchange rates create conditions that may force organizations to change.
Internal Factors:
Internal forces can also stimulate the need for change. The internal forces tend to originate primarily
from the internal operations of the organizations or from the impact of external changes.
a-Structural factors:
A structural force would be the inability to transmit important information from the top of the
organization to the lower level cadre. Because of numerous layers in the hierarchy, information
moves slowly from one level to the next. This could be viewed as a process or a behavioral problem
involving failure to communicate effectively.
b-Strategy:
A redefinition or modification of an organization’s strategy often introduces a host of changes. The
strategic move of Reliance Industries in getting into retail business in urban and rural markets made
them to introduce a change in the managerial approach as well as the human relations approach to
gain acceptance from the different cross section of the customers.
c-Organizations’ Workforce: In recent times, the work force composition is varied and is not very
static. Its composition changes in terms of age, education, sex and so forth. In a stable organization
with a large pool of seasoned executives, there might be a need to restructure jobs in order to retain
younger managers who occupy lower ranks. The compensation and benefit system might also need
to be adapted to reflect the needs of an older work force.
d-Introduction of new technology:
The introduction of new equipment represents another internal force for change. Employees may
manufacturing industries. More foreign automobile industries are setting up manufacturing plants
and generating more employment opportunities in emerging economies.
e-Employee Attitudes:

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Employee attitudes such as increased job satisfaction may lead to increased absenteeism, more
voluntary resignations, and even labor strikes. Such events will often lead to changes in management
policies and practices.
RESISTANCE TO CHANGE
In planning for change, the team leaders must take into consideration the various factors on which
the members exhibit their resistance to implement change. For example, the company wanted to
install a new software program in cash counter computer terminals to facilitate the fast movement.
But some employees may not respond favorably and display their refusal to cooperate by increasing
absenteeism, sub-standard work, joining of union increased labor turn over etc. Resistance to change
can also be a source of functional conflict. For example, resistance to a reorganization plan or a
change in a product line can stimulate a healthy debate over the merits of the idea and result in a
better decision.
Resistance can be overt, implicit, immediate or deferred. It is the easiest for management to deal
with resistance when it is overt and immediate such as employees strike, work slowdown etc. The
greater challenge is managing resistance that is implicit or deferred. Such as loss of loyalty to the
organization, loss of motivation to work, increased errors or mistakes increased absenteeism etc. .
Individual Resistance
Individual sources of resistance to change lie in basic human characteristics such as perceptions,
personalities and needs.
Habit: The team members are habituated or conditioned to do their job or activity in a particular way.
When they are asked to do differently, they tend to respond to resist change. When employees are
asked to move to the new office building across the town, they are likely to change their routine
habits like waking up ten minutes earlier, finding new parking place, adjusting to new office layout,
developing new lunch time routine etc.
Security: The team members with a high need for security are likely to resist change because it
threatens their feelings of safety.
Economic Factors: If the members feel that the new changes result in lower pay, they may likely to
resist change. Change in jobs or established work routine can also arouse economic fears if people
are concerned that they won’t be able to perform the new tasks or routines to their previous
standards, especially when the pay is closely tied to productivity.
Fear of the Unknown: The cashiers or secretaries might fear the new activities due to lack of
knowledge in operating a new software program. They might develop a negative attitude towards
working with new programs or behave dysfunctional if required to use them. Employees in
organizations hold the same dislike for uncertainty. For example, if an organization introduced TQM,
the production employees will have to learn statistical process control techniques. Therefore, they
may develop a negative attitude towards TQM or behavior dysfunctional if required, to use statistical
techniques.
Selective Information Processing: Once the team members shape their world through their own way,
they prefer to do their work based on their perceptions. If the change process demands to follow the
new method, the members tend to resist. So individuals are guilty of selectively processing
information in order to keep their perception intact. They hear what they want to hear. They ignore
information that challenges the world they have created.
b-Organizational Resistance
Some organizations prefer to follow their routine and reluctant to venture new things or follow any
new methods of doing. Government agencies want to continue doing what they have been doing for

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years, whether the need for their service changes or remains the same. Six major sources of
organizational resistance have been identified. They are as follows:
Structural Inertia: Organizations have built in mechanisms to produce stability. For instance, the
training and orientation programs reinforce specific role requirements and skills. Formalization
provides job descriptions, rules and procedures for employees to follow. Once the routine has been
established, an organization may be reluctant to adapt to new changes. When an organization is
confronted with the change process, the team members tend to resist.
Limited Focus of Change: The change process is interlinked. One activity cannot be changed without
affecting the others. If change is introduced in technology without considering the structural changes,
the change in technology is not likely to be accepted. Organizations are made up of number of
interdependent subsystems.
Group Inertia: Sometimes the group norm or standards could act as a constraint. For example, the
union norms may dictate resistance to change process.
Threat to Expertise: The change process could threaten the expertise of team members of the
groups. Once the members feel that they are forced to learn something new, they tend to resist. The
introduction of decentralized personal computers, which allow managers to gain access to
information directly from a company’s mainframe, is an example of a change that was strongly
resisted by many information system departments in the 1980s. Because of decentralized end-user
computing was a threat to the specialized skills held by those in the centralized information system
departments.
Threat to Established Power Relationship: The change process can threaten long established power
relationships within the organization. Due to this reason, the members can resist the change.
Threat to established resource allocation: The group, which enjoys sizable resources, may not like to
accept the change process that facilitates reduction in their budget.
OVERCOMING RESISTANCE TO CHANGE
John Kotter and Leonard Schlesinger offered six ways of overcoming resistance to change, which are
highly situation dependent. More than one of these techniques may be used in any given situations.
□□Education and Communication: If the logic and advantages of the change are explained early to
the team members, resistance can be reduced. This can be achieved through one-to-one discussions,
memos, group presentations, or reports. This tactics assumes that the source of resistance lies in
misinformed or poor communication. If the team members received the full facts and have their
misunderstanding cleared up, their resistance will subside. Once people have bought into the idea,
they will implement change. The only problem is that this could be very time consuming process, if
too many people are to be communicated with.
□□Participation and Involvement: Resistance to change can be reduced or eliminated by having
those involved participate in the decision of the change through meetings and induction. It is difficult
for individuals to resist a change decision in which they participated. Once people have had an
opportunity to contribute ideas and become a part of the change process, they will be less inclined
to see it fail. However, working in committees or task forces is a time consuming activity, and hence
it will take a longer time to bring about changes.
□□Facilitation and Support: Easing the change process and providing support for those caught up in
it is another way managers can deal with resistance. Retraining programs, allowing time off after a
difficult period, and offering emotional support and understanding may help. This emotional support
can be given through empathic listening, offering training and other types of help. Such facilitation
and emotional support help individual to deal more effectively with their adjustment problems. This
process can be time consuming and there is no guarantee that it will always work.

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□□Negotiation and Agreement: It is sometimes necessary for a team leader to negotiate with
potential resistance or exchange something of value for lessening resistance. For instance, if the
resistance is from a few powerful individuals in the team, a specific reward package can be negotiated
that will meet their individual needs. Though in some instances this may be the relatively easy way
to gain acceptance, it is possible that this could be an expensive way of effecting changes as well. If
the use of this strategy becomes public knowledge, others might want to negotiate before they
accept the change.
□□Manipulation and Co-optation: The team leader seeks to ‘buy off’ the key members who are
resisting by giving them an important role in the change decision. The team leader’s advice is sought,
not to arrive at a better decision but to get their endorsement. Some of the co-opting tactics include
selectively sharing information and consciously structuring certain types of events that would win
support. This can be a quick and relatively easy and inexpensive strategy to gain support. However,
the purpose will be defeated if people feel they are being manipulated.
□□Explicit and Implicit Coercion: The team leaders can force the members to go along with changes
by threats involving loss or transfers of jobs, lack of promotion, etc. Such methods, though not
uncommon, is more difficult to gain support for future change efforts. This strategy can be particularly
resorted to when changes have to be speedily enforced or when changes are of a temporary nature.
Though speedy and effective in the short run, it may make people angry and resort to all kinds of
mean behaviors in the long run.
LEWIN’S MODEL OF CHANGE/APPROACHES TO MANAGING ORG. CHANGE/PLANNED CHANGE
Kurt Lewin argued that successful change in organizations should follow three steps
i) Unfreezing the status quo
ii) Movement to a new state
iii) freezing the new change to make it permanent.
Unfreezing:
It is actually the process of preparing the system for change through disconfirmation of the old
practices, attitudes, tendencies, or behaviors. This is the initial phase where those involved in the
change experience a need for something different and a sense of restlessness with the status quo. In
essence, the feeling that the system is hurting itself badly now and desperately requires a change to
survive, is sensed by all. Initiative for changes efforts are taken to overcome the pressures of both
individual resistance and group conformity.
Movement to a new state:
Changing or moving is the phase where the changes that have been planned are actually initiated and
carried out. Changes could relate to the mission, strategy, objectives, people, tasks, work roles,
technology, structure, corporate culture, or any other aspects of the organization. Well thought out
changes have to be carefully implemented with participation of the members who will be affected by
the change. Changes incorporated too quickly without adequate preparation will result in resistance
to change.
Refreezing:
It is the last phase of the planned change process. Refreezing ensures that the planned changes that
have been introduced are working satisfactorily, that any modifications, extra considerations, or
support needed for making the changes operational are attended to, and that there is reasonable
guarantee that the changes will indeed fill the gap and bring the system to the new, desired state of
equilibrium. This necessarily implies that the results are monitored and evaluated, and wherever
necessary corrective measures are taken up to reach the new goal. If the refreezing phase is neglected

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or temporarily attended to, the desired results will not ensure and the change may even be total
disaster.
Forced Field Analysis:
Kurt Lewin stated that there are two types of forces operating in the change process. I) Those forces
which prepare or make the system ready for changes to occur, are called as driving forces,
ii) Those forces which oppose or operate against changes taking place in the system, are called as
restraining forces. If the two sets of forces are equal in strength, then the systems is in a state of
equilibrium and changes will not occur. If the driving forces are stronger than the restraining forces,
then the system will be changing to find a new equilibrium as the gap to be filled gets narrowed down.
A more viable option is to reduce existing resistance by dealing with and minimizing the forces that
resist the change. In practice, a combination of both strategies – reducing the restraining factors and
increasing the driving forces often ensures best results.

.STRESS MANAGEMENT
Stress is the general term applied to the pressure people feel in life. The presence of stress at work is
almost inevitable in many jobs. The nature of stress has been studied by scholars in a wide range of
academic disciplines. Physicians, psychiatrists, and researchers in management have all studied its
causes and its symptoms, and have defined the term in a variety of different ways.
Stress is defined as "the reactions of individuals to new or threatening factors in their work
environments”.
Stress can be either positive or negative. Some new work situations can bring us positive challenges
and excitement. For example, promotions to new jobs present employees with positive stress.
Employees may feel anxious about their new work assignments; they also anticipate them eagerly
and look forward to the additional challenges, rewards, and excitement. In these cases, the new and
uncertain job situations create positive stress. However, there are other types of work that are
threatening and anxiety arousing. For example, depression in the economy can create negative stress
for the sales personnel, because they will be much more anxious about making sales commissions
and sales quotas.
For every individual there is an optimum level of stress under which he or she may perform to full
capacity. If the stress experienced is below this optimum level, then the individual gets bored, the
motivational level to work reaches a low, point, and apathy sets in. If one operates in a very low stress
environment and constantly experiences boredom, the person is likely to psychologically or physically
withdraw from work. Psychological withdrawal will result in careless mistakes being frequently made,
forgetting to do things, and thinking of things other than work during work hours. Physical withdrawal
will manifest itself in increased rates of tardiness and absenteeism, which may ultimately lead to
turnover. Though the optimum stress level is different from different individuals, each individual can
sense and determine how much stress is functional for an individual to operate in a productive
manner.
Sources of stress
Stress is a reality of our everyday life. There are positive and negative stresses that come from our
work and non-work lives. As pointed out by N.. Rice, and Hunt (1980) and Sckaran (1986), among
others, the work and non-work domains of one's life are closely interrelated. The stresses and strains
experienced in one domain are carried over to the other. Thus, if one experiences stress at work, that
stress will be carried over to the home.
One major source of job stress is the job itself. The way the job is designed, the amount of time
pressure an individual faces and the amount of expectations others have of a person at work can all

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lead to job stress. Interpersonal relationships are a second source of job stress. How much contact
an individual has with coworkers and managers, how much time he or she deals with clients or
consumers, and how pleasant those interactions are all influences of how much stress an individual
experiences at work. Third source is problems in personal lives, which can spill over into the work
environment, adding further tension to an already stressful work situation.
Sources of job stress:
Job Characteristics
A major source of job stress is a person's role in the organization. A role is simply the set of
expectations that other people in the organization have for an individual, For example, supervisors,
coworkers, customers and suppliers expect an employee to behave in certain predictable ways. The
expectations others have of an employee arc sometimes unclear, in conflict, or too high for the
employee to meet within the time allotted, and he or she experiences stress.
• Role Ambiguity: When there is a lot of uncertainty surrounding job definitions or job expectations,
people experience role ambiguity. With the recent increase in mergers and acquisitions among major
organizations, more and more employees arc experiencing job stress as a result of role ambiguity.
Role ambiguity is anxiety arousing among employees that leads to job stress.
• Role Conflict: Often employees discover that different groups of people in an organization have
widely varying expectations of them, and that they cannot meet all those expectations. This
inconsistency of expectations associated with a role is called role conflict, which results in stress.
• Role Overload: Role overload is a situation in which employees feel they are being asked to do more
than time or ability permits. Working under time pressure is especially stressful.
• Role Under load: Role Under load is the condition in which employees have too little work to do or
too little variety -in their work. For example, salespeople in a store with no customer, standing around
all day with nothing to do, could be said to experience role under load. Ironically, role under load
leads to low self-esteem, increased frequency of nervous symptoms and increased health problems.
• Ethical Dilemmas: Ethical dilemmas such as whether or not one should report the observed
unethical behaviors of another person can cause extreme levels of stress in individuals. This will be
especially true for those who have strong moral values of right and wrong and a deep sense of
personal and corporate social responsibility. Tensions arise because one might have to contend
against one's own colleagues who might be close friends, and may fear of reprisal and other
undesirable consequences.
Interpersonal Relationships:
Another major source of stress in organization is poor interpersonal relationships with supervisors,
subordinates, coworkers or clients. When interpersonal relationships at work are unpleasant,
employees develop a generalized anxiety, a diffuse feeling of dread about upcoming meetings and
interactions. Three aspects of interpersonal relationships at work, which have a negative impact on
job stress, are as follows:
• Amount of contact with others: Jobs vary in terms of how much interpersonal contact is built into
them. Too much prolonged contact with other people can cause stress.
• Amount of contact with people in other departments: Having contacts with people outside one's
own department creates a special sort of stress. People in other departments do not always have
an adequate understanding of jobs outside their own areas, which can cause stress.
• Organizational climate: The overall psychological climate of the organization can create stress.
When day-to-day life in an organization is marked by unfriendly, distant, or hostile exchanges,
employees are continually tense and this causes stress.
Organizational Factors

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Following are the organizational factors that cause stress in individuals:
• Work environment factors such as noise, heal, poor lighting, radiation and smoke are stress inducing
agents.
• Insufficient resources such as time, budget, raw materials, space or manpower also induce stress in
the work environment. When one has to produce and perform with inadequate resources on a long-
term basis, this naturally imposes stresses and strains on the individuals who are responsible for
getting the job done.
• Structural factors in the organizational setting such as staff rules and' regulations and reward
systems, may cause stress.
• Lack of career promotion in organizations may be sometime cause stress.
• Environmental factors of stress include sudden and unanticipated changes in the marketplace,
technology, the financial market and so on.
Personal Factors:
Employees’ personal lives have a marked effect on their lives at work. If things are going well
personally, they are more likely to be upbeat and optimistic. They have more energy and patience for
dealing with problems at work. On the other hand, if employees have personal problems, they may
be more tense or distracted when they go to work.
Factors that influence how much stress people bring from their personal live to the work setting are
as follows:
• Career Concerns: One major career concern that can cause stress is lack of job security. A second
career concern that can cause employees stress is status incongruity, i.e., having jobs with less status,
power and prestige than they think they deserve.
• Geographical Mobility: Geographical moves create stress because they disrupt the routines of daily
life. When geographical moves arc undertaken as part of a job transfer, the moves can be even more
stressful. The transferred employees are likely to feel out of control at work, too, and experience
their new work environments as unpredictable.
Effects or consequences of job stress
Negative stress has unpleasant consequences for them, their families and for the organizations they
serve.
Effects on the Individual
The impacts of distress on individuals are of following types:
• The subjective or intrapersonal effects of stress are feelings of anxiety, boredom, apathy,
nervousness, depression, fatigue, and anger. Sometimes experiencing the stress may cause
aggressive behaviors on the part of the individual.
• The cognitive effects include poor concentration, short attention span, mental blocks and inability
to make decisions.
• The physiological effects can be seen in increased heart and pulse rate, high blood pressure,
dryness of throat, and excessive sweating.
• The behavioral effects arc manifest in such things as accident proneness, drinking, excessive eating,
smoking, impulsive behaviors, depression, and withdrawal behaviors.
• The manifest health effects could be stomach disorders, asthma, eczema, and other psychosomatic
disorders. In addition, the mental health, i.e. the ability lo function effectively in one's daily life, will
also decline as excessive stress is experienced.
Consequences for the Family

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Negative stress, which is handled by individuals in dysfunctional ways, such as drinking or withdrawal
behaviors, will have an adverse effect on their home life. Spouse abuse, child abuse, alienation from
family members, and even divorce could result from dysfunctional coping mechanisms.
Consequences to Organizations
The adverse consequences on an organization include low performance and productivity, high rates
of absenteeism and poor decision-making. It also leads to loss of customers because of poor worker
attitudes, increased alienation of the worker from the job, and even destructive and aggressive
behaviors resulting in strikes and sabotage. The stresses experienced by employees who take on
critical roles and are responsible for safety can sometimes be detrimental to the public. For instance,
the stresses experienced by a train driver or railway guard, or that of an airline pilot, navigator, or air
traffic controller may result in serious accidents. Needless to say that the costs of employee stress to
the organization in terms of lost profits, poor image and loss of future business are enormous.
Methods of managing stress
Stress is a factor that everybody has to contend with on a daily basis both in the work and non-work
spheres of life. Since the body has only a limited capacity to respond to stress, it is important for
individuals to optimally manage their stress level to operate as fully functioning human beings. There
are several ways in which stress can be handled so that the dysfunctional consequences of stress can
be reduced. Some of them are:
Role Analysis Technique (RAT)
The Role Analysis Technique helps both the manager and the employee to analyze the requirements
and expectations from the job. Breaking-down the job into various components clarifies the role of
the job for the entire system. This also helps to eliminate reduction of work and thus lowering down
the stress level.
Job Relocation
Job relocation assistance is offered to employees who are transferred, by finding alternative
employment for the spouses of the transferred employees and getting admission in schools for their
children in the new place. These arrangements help to reduce the anxiety and stress for the moving
family.
Recreational Program
Providing recreational facilities, arranging group meditation programs, help to reduce the stress
levels of the employees.
Employee Assistance Program
Another widely used strategy is the employee assistance Programs, which offer a variety of assistance
to employees. These include counseling employees who seek assistance on how to deal with alcohol
and drug abuse, handling conflicts at the work place, dealing with marital and other family problems.
Career Counseling
Career Counseling helps the employee to obtain professional advice regarding career that would help
the individual to achieve personal goals. It also makes the employees aware of what additional
educational qualifications or specialized technical training, if any, (hat they should acquire. By
becoming knowledgeable about the possible avenues for advancement, the employees who consider
their careers to be important can reduce their stress levels by becoming more realistic about their
options and can start preparing themselves for it.
Time Management
Another way of coping with stress is to manage time more effectively. People can learn to get better
organized so that they can do their work more efficiently.
Delegation

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Another way of coping with job stress is to delegate some responsibilities to others. Delegation can
directly decrease workload upon the manager and helps to reduce job stress.
More Information and Help
Some new employees have to spend more time on a job than necessary because they are not sure
what they are doing. So it is necessary that some help should be provided before doing the work that
would lead to much efficient, effective work. It would also reduce anxiety and stress among the
employees.
Health Maintenance
Probably the most frequently used organizational stress management program is health
maintenance. Many companies invest large sum of money in gym and sport facilities for maintaining
the health of the employees.
Supervisor Training
Another type of stress management Program that organizations are experimenting with is supervisor
raining. The emphasis on supervisory training Program is how to prevent job stress. Managers are
trained to give better performance appraisals, to listen to employees’ problems more effectively, and
to communicate job assignments and instructions more clearly.
Individual Stress Reduction Workshops
Some organizations have also sponsored individual stress reduction workshops for their employees.
These programs include biofeedback, meditation to career counseling, time management and
interpersonal skills workshops. In lectures and seminars, participants are given a basic understanding
of the causes of stress and its consequences. Then, participants are given materials to help them
identify the major sources of stress in their own lives, and some strategies for dealing with that stress
more effectively.
ORGANISATIONAL DEVELOPMENT
Organizational Development (OD) is the most significant innovative and integrated process of
achieving organizational efficiency and effectiveness. The term Organizational Development (OD)
refers to a broad range of behavioral science based strategies used to diagnose the need for change
in organizations and to implement changes when necessary. OD can be defined as “a technique for
bringing change in the entire organization, rather man focusing attention on individuals to bring
change easily in the entire organization.”
Nature of OD
OD is a general strategy or approach to organizational change mat is employed to analyze and
diagnose the sources of organizational problems and to develop and implement action plans for their
solution. According to Bennis, OD has the following characteristics;
• It is an educational strategy for bringing planned change.
• It relates to real problems of an organization.
• Laboratory training methods based on experienced behavior are primarily used to bring change.
• Change agent applying OD technique for change is external to the forms of consultants.
• There is a close working relationship between change agents and the people who are being
changed. The relationships involve mutual trust, joint goals, means, and mutual influence.
• The change agents share social philosophy about human value. They are humanists seeking to get
a humanistic philosophy in organization.
Objectives of OD
1. To increase interpersonal trust among employees
2. To increase employees level of satisfaction and commitment
3. To increase openness of communication

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4. To confront problems instead of sweeping the under the rug
5. To effectively manage the conflict
6. To increase co-operation and collaboration among the employees
7. To improve organization’s problem solving and self-renewal capabilities.
Benefits of OD programmes
1. It tries to create an environment in which exciting and challenging work can be found
2. It treats each human being as a person with a complex set of needs, all of which are important in
his work and life.
3. It gives each member of the organization opportunities to develop to his full potential.
4. It seeks to make the organization more effective in meeting all its goals
5. It gives people in an organization the chance to influence how they relate to work, the organization
and the work environment.
Limitations of the OD programmes
1. OD requires use of certain persons who can take initiative to bring about change. Complacent
people cannot be helpful in implementing OD
2. OD cannot be applied with giving the consideration to the circumstances existing within the
organization. The local circumstances may pose a problem in adopting to change.
3. OD is heavily based on the behavioral science concepts. Behavioral sciences have many
limitations which are applicable to OD also.
4. It ignores circumstances and their influence in organization.
OD Interventions
OD interventions refer to various activities which consultant and client organization perform for
improving organizational functioning by enabling members to better manage their team and cultures.
French and Well have defined OD interventions as "sets of structured activities in which selected
organizational units (target groups or individuals) engage with a task or a sequence of tasks where
the task goals are related directly or indirectly to organizational improvement. Interventions
constitute the action thrust of organization development; they make things happen and are what is
happening.”
Intervention Techniques

Sensitivity Training: Sensitivity training is a small-group interaction under stress in an unstructured

encounter group, which requires people to become sensitive to one another's feelings in order to
develop reasonable group activity. In sensitivity training, the actual technique employed is T-group.
T-group has several characteristic features:
• The T-group is generally small, from ten to twenty members
• The group begins its activity with no formal agenda
• The primary role of trainer is to call attention of members from time to time lo the ongoing process
within the group
• The procedure lends to develop introspection and self-examination, with emotional levels of
involvement and behavior.
The objectives of such training are increased openness with others, more concern for others,
increased tolerance for individual differences, less ethnic prejudice, understanding of a group
process, enhanced listening skills and increased trust and support.
Process Consultation: Process Consultation (P-C) represents a method of intervening in an ongoing
system. The basic content of P-C is that the consultant works with individuals and groups to help
them learn about human and social processes and learn to solve problems that stem from process

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events. P-C consists of many interventions and activities which affect the various organizational
processes such as. communication, roles and functions of group members, group problem-solving
and decision-making, group norms, authority and leadership and inter-group cooperation and
conflicts.
Team Development: The underlying aim of team development is to increase trust among team
members because people work better together when there is open and honest sharing about the
problems and difficulties that they have with one another. As such, at the initial level, the attempt
should be to develop such an environment where such trust can be developed among the team
members
Grid Organization Development: Grid organization development, developed by Blake and Mounton,
is a comprehensive and systematic OD Program. The Program aims at individuals, groups and the
organization as a whole. It utilizes a considerable number of instruments, enabling individuals and
groups to assess their own strength and weaknesses. It also focuses on skills, knowledge and
processes necessary for effectiveness at the individual, group and inter-group and total organization
levels
Work Redesign: it takes into account the nature of job. Job redesign make use of job analysis to
redefine the job in terms of tasks behavior, education, skills, relationship and responsibilities etc, Job
Enrichment: it refers to the basic changes in the content and responsibilities of a job so as to
satisfaction of motivational needs (recognition, achievement, responsibility, personal growth etc.) of
personnel. Jobs are made more challenging, meaningful and interesting.
Quality of work Life(QWL): it describes a process by which an organization responds to employees
needs by developing mechanism to allow them to share fully in making the decision that design life
at work.
MBO: it emphasizes participation of individual in setting the goals. It is a systematic and organized
approach that allows management to attain maximum results from available resources by focusing
on achievable goals. It is joint goal setting.
Steps in MBO
1. Central goal setting
2. Setting individual goal
3. Freedom implementation
4. Periodic performance appraisal and feedback
5. Final appraisal
Survey Feedback: it is a popular technique, developed by Social Research Institute of University of
Michigan. The main of this is to get team in the organization to face new issues;
Steps
• Collecting data about organization through questionnaires
• Conducting feedback meetings and work shop on the presentation of the data
• Review of the process
OD Values.
The following briefly identifies the underlying values in most OD efforts
1. Respect for People- individual should be treated with dignity and respect.
2. Trust and Support- the effective and healthy organization is characterized by trust, authenticity,
openness and a supportive climate.
3. Power equalization- Effective organization deemphasizes hierarchical authority and control.
4. Confrontation- problem should not be swept under the rug. They should be openly confronted.

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5. Participation- more is the number of members in the organization, more participation should be
ensured
Organizational Development Process
The procedure of organizational development programme involves the following steps
1. Initial consultation: the first step in OD process is to approach the organizational development
consultant to determine the type of OD programme to be developed. Consultant may internal staff
or external agency. For the purpose of OD, they will conduct interview with needed parties.
2. Data collection: the consultant meets various groups away from the workplace in order to collect
data to determine organizational climate and behavioral problem faced by the organization.
3. Data feedback and confrontation: data collected are made known to work groups concerned and
are asked to review the data collected and to provide required feedback
4. Action Planning and Problem solving: data are used by the group to suggest the specific
recommendations for change. They discuss the problem faced by the organization and sketch needed
plans.
5. Team building: consultant encourages team building through organizing meeting with managers
and their immediate subordinates and so they can improve the functioning of workgroup
6. Inter group development: with the development of natural team (managers and their immediate
subordinates), the larger group comprising several teams may be developed.
7. Appraisal and follow up: the consultant further helps the organization in making an appraisal of
the programme and find out deficiency, if any. He can develop additional programmes in areas where
the original programme if felt ineffective and the result are poor. The consultant advises follow up
for better understanding.
OD offers some very attractive methodologies and philosophies to practicing managers and
academicians. William Halal is right when he says "OD in future includes any method for modifying
the behavior in the organization, hereby, encompassing the entire spectrum of applied behavioral
science". There also have been experiences of failure in OD but these are being recorded and
collected to be reviewed. In general, OD shows a promising future, since there are no rigid sets of
procedures in OD work and different strategies have to be evolved for different types of
organizations.

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