R21 Regulations

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

(Established by Govt. of A.P., ACT No.30 of 2008)
ANANTHAPURAMU – 515 002 (A.P) INDIA

MASTER OF BUSINESS ADMINISTRATION

MBA; MBA (General Management); MBA (Business Management)
COMMON COURSE STRUCTURE

Course Code L T P C
MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
21E00101 4 0 0 4
Semester I

Course Objectives:
• To impart basic conceptual knowledge on Management theories and Practices
• To achieve higher productivity and accomplishing the goals of the organization.
Course Outcomes (CO): Student will be able to
• Understand concepts, theories and practices
• Apply theoretical knowledge in managing the organization and Know the behaviour of
employees at individual, group and organisational levels at work place under different
leadership styles.
UNIT - I Lecture Hrs: 8
Role of Management – Concept – Significance – Functions – Principles of Management - Patterns of
Management: Scientific – Behavioural – Systems – Contingency.

UNIT - II Lecture Hrs: 12

Decision Making & Controlling – Process – Techniques. Planning – Process – Problems –– Making It
Effective Controlling - System of Controlling – Controlling Techniques – Making Controlling
Effective.
UNIT - III Lecture Hrs:12
Individual Behaviour & Motivation –Understanding Individual Behaviour – Perception – Learning –
Personality Types – Johari window- Transactional Analysis- Motivation– Concept of Motivation -
Motivational Theories of Maslow, Herzberg, David McClelland, and Porter and Lawler
UNIT - IV Lecture Hrs:12
Group Behavior& Leadership: Benefits of Groups – Types of Groups – Group Formation and
Development. Leadership and Organizational Culture and Climate: Leadership – Traits Theory –
Managerial Grid – Transactional Vs Transformational Leadership – Qualities of good leader- Women
Leadership in India.
UNIT - V Lecture Hrs:12
Organisational Behaviour–Organizing Process – Departmentation Types – Making Organizing
Effective –Organisational culture- Types of culture – Organisational Culture Vs Organisational climate
- Conflict management -Change Management.
Textbooks:
1. Principles of Management, Koonz,Weihrich and Aryasri, Tata McGraw Hill.
2. Organizational Behaviour: Design, Structure and Culture, Gupta, Willey
3. Management and Organisational Behaviour, Subbarao P, Himalaya Publishing House
Reference Books:
1. Organisational Behaviour ,S.S.Khanka, S.Chand
2. Organisational Behaviour, Stephen P. Robbins, Pearson Education
3. Organisational Behaviour , Mishra .M.N ,Vikas
4. Management and Organisational behaviour, Pierce Gordner, Cengage.
5. Behaviour in Organizations, Hiriyappa .B.New Age Publications
6. Organisational Behaviour,Sarma, Jaico Publications.
7. Principles of Management ,Murugesan ,Laxmi Publications
Online Learning Resources:

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1
 R21 Regulations

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

(Established by Govt. of A.P., ACT No.30 of 2008)
ANANTHAPURAMU – 515 002 (A.P) INDIA

MASTER OF BUSINESS ADMINISTRATION

MBA; MBA (General Management); MBA (Business Management)
COMMON COURSE STRUCTURE & SYLLABI

https://onlinecourses.nptel.ac.in/noc20_mg51/preview
https://onlinecourses.swayam2.ac.in/cec20_mg03/preview
https://onlinecourses.nptel.ac.in/noc20_mg58/preview
https://onlinecourses.nptel.ac.in/noc21_mg30/preview

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 UNIT-I 2

ROLE OF MANAGEMENT

1. CONCEPT:

CONCEPT / INTRODUCTION ABOUT MANAGEMENT:

Companies of the same industry are being affected same environment factors.
Some companies attract a number of customers while some other companies repel
them. Why do companies perform differently when they operate under the same
environmental conditions serve the customer, use the same raw material and
technology and employ the people with similar skills? The answer for this question
invariably is management practices. Thus management makes remarkable
difference between the companies regarding their performance in terms of
productivity sales profitability etc. Management plays a vital role in deciding the
destiny of business as well as non-business organizations.

Management is the co-ordination of all resources through the process of

planning, organizing, directing and controlling in order to attain stated goals.
Management is the process of planning, organizing, staffing, directing, co-
coordinating and controlling the activity of business enterprises. Management
deals with both internal and external environment. Management is applicable to
all kinds of organizations i.e. both profit and non-profit oriented organization.

DEFINITION OF MANAGEMENT
“Management is a distinct process consisting of planning, organizing and
controlling, utilizing in each both science and arts and followed in order to
accomplish pre- determined objective.”

- George R terry

1.2 : MANAGEMENT IN BOTH SCIENCE AND ART & SCIENCE

A manager to be successful in his profession must acquire the knowledge of
science & the art of applying it. Therefore management is a judicious blend of science
as well as an art because it proves the principles and the way these principles are
applied is a matter of art. Science teaches to ‘know’ and art teaches to ‘do’.

E.g. “A person cannot become a good singer unless he has knowledge about
various ragas & he also applies his personal skill in the art of singing.” Same
way it is not sufficient for manager to first know the principles but he must also
apply them in solving

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various managerial problems that is why, science and art are not mutually exclusive but
they are complementary to each other (like tea and biscuit, bread and butter etc.)
Science is a body of knowledge developed systematically based on observation,
measurement, experimentation and drawing inferences based on data. Management is a
developing science. However, management can’t be equated with exact sciences like
physics and chemistry. Most of the managerial activities like decision making, planning,
organizing and directing can’t be an exact science.

B.ART
Art understands how a particular activity can be done. Art can be acquired by
conscious effort and practice. Management is getting things done by and through other
people. They have to consciously analyze the environment and formulate the plans and
strategies.

Social External Technica

Internal
Human
resource

Management of business /
Material Machines and
Non-business organizations
resource technology

Economics Environment Political

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1.3: FEATURES OF A MANAGEMENT PROCESS:

Highly Aspirational Ongoing Process

Administrative Function

FEATURES Abstract
Team Effort OF
MANAGEMENT
Social in Nature
Conditional
Versatile
1. Management is highly aspirational
The achievement of pre-defined objectives is an essential aspect of the
management process. It is a medium to accomplish the goals and objectives established
well in advance. Without any purpose, there is no rationale for a management process in
place. Every activity undertaken by an organisation’s management should be goal-
oriented. This achievement of pre-defined goals is a measurement of the success of any
organisation’s leadership.

2. Management is an Ongoing Process

Management is not a one-off affair; rather, it is a continuous exercise. The
constant desire to achieve varied organisational goals makes management an ongoing
process.

3. Management is Abstract
Management is neither visible nor can it be felt in a real sense. One can only
observe management’s accomplishments and compare a well-managed organisation with
one that has been poorly managed.

4. Management is Social in Nature

Management is social because it involves interpersonal relations. The human
element is the most crucial factor in the management process as it is dictated by
contrasting social values and cultures. It is a function that transforms society, preserves
the community, and endorses its future interests.

5. Management is Versatile
Management deals with human reactions under enterprising conditions. The
awareness and the aptitude required for management comes from several disciplines like
Sociology, Psychology, Engineering, Economics, Anthropology, Mathematics, etc. It is
this aspect that makes managing a multifaceted experience.

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6. Management is Conditional
There are several ways of doing things. An existing situation determines the most
suitable method of performing any task. Sometimes, it may be possible that management
is not doing things in the right manner due to the situation. Successful managers should
account for these specific situations.

7. Management is a Team Effort

An individual’s efforts are harmonised with the team’s efforts. A single individual
cannot manage the management function alone. All the managerial activities like the
setting of goals, the formation of plans and policies, implementation, and follow-up are
the coordinated effort of a group of people who envision an organisation’s future.

8. Management is an Administrative Function

The administration and management of the activities of people to accomplish
predetermined objectives are concerned with the management. Management is also
known as an approach through which a human group’s goals are set, defined and
achieved.

2. SIGNIFICANCE OF MANAGEMENT:

C. Reduces costs D. Establishes

soundorganization
A. It helps in
achieving group goals

B. Optimum Significanc
utilization of e of E. essentials
resources manageme for prosperity
nt of society

A. IT HELPS INACHIEVING GROUP GOALS:

Management arranges the factors ofproduction, assembles and organizes the resources,
integrates the resources in effective manner to achieve goals. Management converts dis-
organized resources of 3M’s (men, machines, money) into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that enterprise work
towards attainment of goals.

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B.OPTIMUM UTILIZATION OF RESOURCES:
Management utilizes all the physicaland human resources productively. The planning
and controlling function of management should be efficient, so that the resources are
utilized in an efficient manner.

C.REDUCES COSTS:
Management gets maximum results through proper input. Management uses physical
human and financial resources to achieve best results. This helps in cost reduction and
managerial activities bring prosperity to the organization and provide benefits to the
employees.

D.ESTABLISHES SOUND ORGANIZATION:

To establish sound organizational structure is one of the objectives of management
and to fulfillment of organizational goals. It establishes effective authority and
responsibility relationship i.e. “who is accountable to whom”, Management fills up various
positions with right persons, having right skills, training and qualification.

Who can give instructions to whom -who are superiors and who are
subordinates.

E.ESSENTIALS FOR PROSPERITY OF SOCEITY:

Efficient management leads to better economical production which helps in welfare of
people. It improves standard of living. It increases the profit which is beneficial to business
and society will get maximum output at minimum cost by creating employment
opportunities. Organization comes with new products and researches beneficial for society.

3. FUNCTIONS OFMANAGEMENT:

UNIT-1
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A.PLANNING:
Planning consists of the activities involved in choosing courses of action to achieve
organizational objectives. It is deciding in advance. Planning is an ongoing stepand can be
highly based on organizational goals, division goals, departmental goals and team goals.
Both long-term and short-term plans are necessary to achieve goals.

“It bridges the gap from where we are & where we want to be”

“what to do, when to do, how to do and who will do it”

B.ORGANISING:
Organizing is the process of linking and arranging activities in a sequence. It is
important to prioritize which resources are essential at any given time. According to Henry
Fayol, “To organize a business is to provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel’s”.
Organizing as a process involves:
✓ Identification of activities.
✓ Classification of grouping of activities.
✓ Assignment of duties.
✓ Delegation of authority and creation of responsibility.
✓ Coordinating authority and responsibility relationships.

C. STAFFING :
Staffing is planning, organizing, directing and controlling of procurement, development,
compensation, integration and maintenance of people for the purpose of contributing to
individual, organizational and social goals. Staffing function is also known as human
resource management. Once the employee is employed, his development needs are
identification through performance appraisal.
Staffing involves:
✓ Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
✓ Recruitment, Selection & Placement.
✓ Training & Development.
✓ Remuneration.
✓ Performance Appraisal.
✓ Promotions & Transfer.
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D. DIRECTING:
Direction is the key to achieve required goal directing motivates the employees to
perform their responsibilities in realizing the organizational goals. The willingand effective
co-operation of employees for the attainment of organizational goals is possible through
direction. Tapping the maximum potentialities of the people is through motivation and
command. Thus, direction is an important managerial function in securing employees
contribution.

E. COORDINATION:
Coordination is the function of management which ensures that different departments
and groups work in sync. Therefore, there is unity of action among the employees, groups,
and departments. It also brings harmony in carrying out the different tasks and activities to
achieve the organization's objectives efficiently.

F. CONTROLLING:

Controlling also involves checking, verifying and comparing the actual performance
with the plans, identifications of deviation if any and correcting of identified deviations.
The purpose of control is ensuring the effective operation of an organization by focusing on
all resources human, material, finance and matching.

G. REPORTING:
Reporting to Management can be defined as an organized method of providing each
manager with all the data and only those data which he needs for his decisions, when he
needs them and in a form which aids his understanding and stimulates his action.

H. BUDGETING:
A budget is a tool that managers use to plan and control the use of scarce resources. A
budget is a plan showing the company's objectives and how management intends to acquire
and use resources to attain those objectives.

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4. PRINCIPLES OF MANAGEMENT:

1. DIVISION OF LABOR:
HENRY FAYOL has stressed on the specialization of jobs. He recommended that
work ofall kinds must be divided and subdivided and allotted to various persons according
to their expertise in a particular area. This division makes the task much easier and
improves the efficiency of individuals.

2. AUTHORITY AND RESPONSIBILITY:

These are the two key aspects of management. Authority facilitates the management to
work efficiently, and responsibility makes them responsible for the work done under their
guidance or leadership. A manager should never be given authority without responsibility
and also should never be given responsibility without the authority to get the work done.

3. PRINCIPLE OF ONE BOSS:

A sub-ordinate should receive orders and be accountable to one and only one boss at
time. In other words a sub-ordinate should not receive instruction from more than one
person because, It undermines authority, Weakness, discipline, Divides loyalty, Creates
confusion, Duplication of work, Escaping responsibilities. Therefore dual sub-ordination
should be avoided unless and until it is absolutely essential.

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4. UNITY OF DIRECTION:

According to this principles efforts of all the members of the organization should
directed towards common goal. Without unity of direction, units of action can’t be achieved;
unity ofcommand is not possible without unity of direction.

5. EQUITY:
Equity means equality of fair treatment equity results from a combination of kindness
and justice. Employees expect management to be equally just to everybody. It requires
managers to be free from all prejudices, personal likes or dislikes. It ensures healthy
industrial relations between management and labor which is essential for the successful
working of the enterprise.

6. ORDER:
It refers to the arrangement of people and things at the right place. There should be a
fixedplace for everything in the organization and everything should be in its own place in
the organization. Social order involves right person at the right place.

7. DISCIPLINE:
Discipline is absolutely essential for the smooth running of business The rules should
be clearly defined and in case of any disciplines imposed penalties should be fair. Clear and
fair agreement between the employees and the employer. In order to follow and maintain
discipline organization must have good supervisor at all levels.

8. INITIATIVE:
Initiative means freedom to think out and execute a plan. Innovation which is the
hallmarkof technological progress is possible only where the employees are encouraged to
take initiative. At all levels of the organizational structure, zeal, enthusiasm and energy
are enabled by people having the scope for personal initiative.

9. FAIR SALARY ADMINISTRATION TO EMPLOYEES:

Wages should be determined on the basis of cost of living,

Employee work assigned,
satisfaction dependsfinancial
on fair
salaries / wages for everyone. This includes financial and non-financial compensation.
position of the business, wage rate prevailing etc.

UNIT-1
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10.STABILITY OF TENURE:
The time period of service in a particular position should be fixed and employees
should not shift from the allotted position repeatedly. it is necessary that they should be
assured security of job by the management..

11. SCALAR CHAIN:

Scalar chain means the hierarchy of authority from the highest executive to the lowest
one for the purpose of communication. According to FAYOL every organization should
have adistinct chain of authority from top to bottom linking all the managers at all levels.
A gangplank is temporary arrangement between and different points to facilitate quick and
easy communication.

12. SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST

The interest of the organization should be kept at the highest priority over the interest of
individuals. Every employee has certain individual interests which motivates the employees
to work for the organization. According to FAYAL the management should make efforts to
unite the interest in general (both employee and employer).

13. ESPRIT DE CORPS:

Esprit de corps means team spirit. The management should create team spirit among the
employees. Managers should promote team work to achieve common goals of the company.
This will raise the level of trust between the members.

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14. CENTRALISATION AND DE-CENTRALISATION:

The concentration of decision making authority in the hands of the top management
leads to centralization. If the authority is shared with the lower level management then it
leads to decentralization. In small organization centralization of authority exists as the
number of activities is less compared to large organization. Whereas, in large organization
the level of decentralization is high.

5. PATTERNS OF MANAGEMENT:
1. : SCIENTIFIC MANAGEMENT/APPROACH

Scientific management was used widely by the managers in the early 1900s.It is a
classicalmanagement study which focuses on scientific approaches so as to improve the
efficiency level of workers in an organization. It provides trained minds for attaining a
higher degreeof excellence. a) It improves and holds to standard such things as equipment,
tools and materials, working conditions and method of working.

DEFINITION
“Scientific management is concerned with knowing exactly what you want men to do
andthen see in that they do it the best and cheapest way”.

-TAYLOR

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PRINICIPLES OF SCIENTIFIC MANAGEMENT

Replace rule of thumbs with science

Harmony in group-action

Co-operation between management and

workers Maximum output in place of

restricted output

1. REPLACING RULE OF THUMBS WITH SCIENCE:

It consists of observation and analysis of each work determination of standard of

work and ensure that works is done best possible way. Rule of thumbs means decisions
taken by management as per their personal judgments. This approach can be adopted in all
aspects of management.

2. HARMONY IN GROUP-ACTION:

Management should always be ready to share the gains of the company with
the workers. It helps to produce synergy effect both management and workers work in
unison (simultaneous performance).It becomes possible by sharing a part of surplus with
workers. Trying of employee’s team spirit and positive attitude.

3. CO-OPERATION:

Both management and workers should realize the importance of each other. All
the activitiesdone by different people must be carried on with a spirit of mutual co-
operation.

4. MAXIMUM OUTPUT:

Maximum production ensures more wages to worker more profit to owner. It

involves continuous increase in production and productivity increase production by
management.
UNIT-1
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6. BEHAVIOURAL THEROY / BEHAVIOURAL APPROACH:

BEHAVIOUR DEFINITION:
Behavior is defined as the way a person conducts themselves towards other. When
workersare treated as humans rather than machines, they will responsible to their particular
work to complete in positive way by increasing individual productivity.

BEHAVIOURAL APPROACH:
The core concepts of behavioral approach are leadership motivation participative
management communication and group dynamics. According to the Behaviorists, behavior
can be systematically studied and analyzed, irrespective of the internal mental conditions
like moods, emotions and cognitions which are relatively too subjective. Key stress of
behaviorists is on conditioning. They believed that any individual can be trained to handle
any task irrespective of genetic traits or internal feelings by way of effective conditioning.
The behavioral approach emphasizes the scientific study of observable behavioral
responses and their environmental determinants. In other words it’s the study of the
connection between our minds and behavioral.

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7. SYSTEM THEORY/APPROACH

System is a set of interrelated but separate parts working towards a

common purpose. An organization as a system is consisting of several
interconnected interactions and interdependent parts. An organizational system has a
boundary that determines which parts are internal and which are external.

CHESTER BARNARD was the first person to utilize the system approach
in the field of management. It helps to the general managers to maintain balance
among various subsystems and the organization. The arrangement of elements must
be orderly and there must be proper communication facilitating interaction between
the elements and finally this interaction should lead to achieve a common goal.
System approach helps the dynamic and inters related nature of organizations
to plan for action and anticipate consequences and mutual effects.

Features of Systems Approach:

(i) A system consists of interacting elements. It is set of inter-related and inter-
dependent parts arranged in a manner that produces a unified whole.
(ii) The various sub-systems should be studied in their inter-relationships rather,
than in
isolation from each other.
(iii) An organisational system has a boundary that determines which parts are
internal and which are external.
(iv) A system does not exist in a vacuum. It receives information, material and
energy
from other systems as inputs. These inputs undergo a transformation process
within a system and leave the system as output to other systems.
(v) An organization is a dynamic system as it is responsive to its environment.
It is
vulnerable to change in its environment.
KEY CONCEPTS OF SYSTEMS APPROACH:

A. SUBSYSTEM:
Sub systems are those parts which make up the whole system. Each system turn
may be subsystems of a still larger system.
B. SYNERGY:
Synergy is the situation in which the whole is greater than the sum of its
parts. In organizational terms synergy means that departments that interact co-
operatively are more productive than they would be.

C. FLOWS
A system has flows of information material and energy. These enter the system from
the
UNIT-1
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environment as inputs (like raw material) undergo transformation process within the system
(like production process) and exist in the system as outputs (like products and services).

Advantages and Disadvantages of a Systems Approach

The advantages of the systems approach include:
• It assists in studying the functions of complex organizations
• It is probabilistic rather than deterministic.
• It has been utilized as the base for the new kinds of organizations like project
management organization.
• It is possible to bring out the inter-relations in various functions like planning,
organizing, directing and controlling.

Negative attributes of the systems approach include:

• This approach is somewhat abstract and vague.
• It can be difficult to apply to large and complex organizations.
• It does not provide any tool and technique for managers.
• It is not a prescriptive management theory, as it does not specify tools and
techniques for practicing managers
• It does not address power and social inequalities and their causes.
• It does not specify the nature of interactions and interdependencies.

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8. CONTINGENCY APPROACH:
Contingency approach is also called situational approach. This approach was developed
by managers, consultants and researchers who tried to apply the concepts of the major
schools to real life situations. The ‘Contingency Approach to Management’ is relatively a
new approach to management. It is an extension of the system approach. The basic idea of
the contingency approach is that the organization has to come up with different situations in
different ways. It helps to devise motivational and leadership approaches to motivate the
workers. Wide range of external and internal factors must be considered. There is no one
best way to structure a corporation and solve employee problems. It all depends on the
situation.
The contingency approach has a wide-ranging applicability and practical utility in
organization and management. This approach gives importance to the managers’
understanding, knowledge, and leadership styles and lets them take different decisions
depending upon the different situations. It helps an organization to operate under different
environmental conditions. It helps to design the organization structure and plan the
information decision systems. A small-sized organization may be centralized and a large-
sized organization may be decentralized in structure.

CHARACTERISTICS OF CONTINGENCY THEORY:

The primary characteristics of contingency theory include:

• Non-universality of management theory - There is no one best way of doing things.

• Contingency - Management decision making is contingent upon the situation.
• Environment - Managerial policies and practices to be effective, must adjust to changes
in the environment.
• Diagnostics - Managers must possess and continue to improve diagnostic skills so as to
anticipate and ready for environmental changes.
• Human Relations - Managers should have sufficient human relations skills to
accommodate and stabilize change.
• Information and Communication - Managers must develop a communication system
adequate to deal with environmental changes.

Advantages and Disadvantages of Contingency Theory:

The primary advantages of contingency theory include:

• It provides a realistic view of management and organization.

• It discards the universal validity of principles.
• Managers are situation-oriented and not stereotyped.
• Lends itself to an innovative and creative management style.

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The negatives of contingency theory include:

• It does not have a theoretical base.
• Executive is expected to know all the alternative courses of action before taking action in a
situation that is not always feasible.
• It does not prescribe a course of action.
• A situation can be influenced by many factors.

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CASE STUDY:

Ajay, 23 year old, fresh MBA with HR, starts his career has a junior HR executive at
RajManufacting House. His boss is a simpleB.Com. degree holder with 4 years of
handyexperience. He does not like Ajay’s joining the company and therefore tortures him by
Different ways. He wants Ajay to resign so he almost harasses him by playing politics in
background. Ajay comes to know about this.

Question:
If you were a consultant, what advice would you give him?
What is the reason for the boss’ negative behaviour?

Answer:

1) Problems:
Two problems have been clearly mentioned in the question
1) The reason for boss’ negative behaviour 2) The problem of Ajay, who is to be consulted.

2) Assumptions:

Here, no information has been given about the background of boss like how he has been as
a boss in the past and how has been his score of performance appraisal. Therefore, We
assume that the boss has not been a successful one and he generally misbehaved with the
juniors. We also assume that Ajay is a hard-working, committed and talented employee.

3) Probable reasons’ for boss’ negative response:

1) His self-image is low in his own eyes and his perception of looking-glass image in the
eyes of Ajay seems to be negative. All these things indicate that his self-esteem is at the
lower side right now. He seems to have a perception that this situation is existing due to
Ajay and thus, he is behaving negatively.

2) He may be having a perceptual error namely Halo Effect. The MBA degree of Ajay
maybe its reason
3) Other perceptual errors could be also playing some role like recency or primacy. If Ajay
has made a mistake recently or if Ajay’s first impression is not good in the eyes of the boss,
that impression may be the reason for bad behaviour.

4) Other problems related to personality cannot be denied having an existence as a reason

for boss’ negative behaviour.

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4) Possible solution or advice for Ajay:

First of all, Ajay should try and find out the “reality” about the boss’ real personality by
Enquiring about it. He should avoid building any wrong negative perception for the boss.
Ajay should never leave the job immediately or should restrain from any reaction. The boss
may be tasting him too! As many boss adopts this style in the beginning while dealing with
an employee to control him in the long run. The boss may have his own personal problems
too. Based on the findings, Ajay should decide whether to continue the job or leave it or talk
to boss “directly” or go to higher authorities. Meanwhile, he should practice stress-relieving
exercises!

UNIT I:

1. What is the contribution of Henri Fayol to management thought? Explain 14-principles of

management thought?
2. Define management. Explain the functions of management?
3. Discuss the nature and scope of organization behavior in the field of management?

4. Discuss the various patterns of management?

UNIT-1
 R21 Regulations

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

(Established by Govt. of A.P., ACT No.30 of 2008)
ANANTHAPURAMU – 515 002 (A.P) INDIA

MASTER OF BUSINESS ADMINISTRATION

MBA; MBA (General Management); MBA (Business Management)
COMMON COURSE STRUCTURE

Course Code L T P C
MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
21E00101 4 0 0 4
Semester I

Course Objectives:
• To impart basic conceptual knowledge on Management theories and Practices
• To achieve higher productivity and accomplishing the goals of the organization.
Course Outcomes (CO): Student will be able to
• Understand concepts, theories and practices
• Apply theoretical knowledge in managing the organization and Know the behaviour of
employees at individual, group and organisational levels at work place under different
leadership styles.
UNIT - I Lecture Hrs: 8
Role of Management – Concept – Significance – Functions – Principles of Management - Patterns of
Management: Scientific – Behavioural – Systems – Contingency.

UNIT - II Lecture Hrs: 12

Decision Making & Controlling – Process – Techniques. Planning – Process – Problems –– Making It
Effective Controlling - System of Controlling – Controlling Techniques – Making Controlling
Effective.
UNIT - III Lecture Hrs:12
Individual Behaviour & Motivation –Understanding Individual Behaviour – Perception – Learning –
Personality Types – Johari window- Transactional Analysis- Motivation– Concept of Motivation -
Motivational Theories of Maslow, Herzberg, David McClelland, and Porter and Lawler
UNIT - IV Lecture Hrs:12
Group Behavior& Leadership: Benefits of Groups – Types of Groups – Group Formation and
Development. Leadership and Organizational Culture and Climate: Leadership – Traits Theory –
Managerial Grid – Transactional Vs Transformational Leadership – Qualities of good leader- Women
Leadership in India.
UNIT - V Lecture Hrs:12
Organisational Behaviour–Organizing Process – Departmentation Types – Making Organizing
Effective –Organisational culture- Types of culture – Organisational Culture Vs Organisational climate
- Conflict management -Change Management.
Textbooks:
1. Principles of Management, Koonz,Weihrich and Aryasri, Tata McGraw Hill.
2. Organizational Behaviour: Design, Structure and Culture, Gupta, Willey
3. Management and Organisational Behaviour, Subbarao P, Himalaya Publishing House
Reference Books:
1. Organisational Behaviour ,S.S.Khanka, S.Chand
2. Organisational Behaviour, Stephen P. Robbins, Pearson Education
3. Organisational Behaviour , Mishra .M.N ,Vikas
4. Management and Organisational behaviour, Pierce Gordner, Cengage.
5. Behaviour in Organizations, Hiriyappa .B.New Age Publications
6. Organisational Behaviour,Sarma, Jaico Publications.
7. Principles of Management ,Murugesan ,Laxmi Publications
Online Learning Resources:

4
1
 R21 Regulations

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

(Established by Govt. of A.P., ACT No.30 of 2008)
ANANTHAPURAMU – 515 002 (A.P) INDIA

MASTER OF BUSINESS ADMINISTRATION

MBA; MBA (General Management); MBA (Business Management)
COMMON COURSE STRUCTURE & SYLLABI

https://onlinecourses.nptel.ac.in/noc20_mg51/preview
https://onlinecourses.swayam2.ac.in/cec20_mg03/preview
https://onlinecourses.nptel.ac.in/noc20_mg58/preview
https://onlinecourses.nptel.ac.in/noc21_mg30/preview

2
 22

UNIT-2
DECISION MAKING AND CONTROLLIONG
1. PROCESS OF DECISION MAKING:
INTRODUCTION ABOUT DECISION MAKING:
Decision making is a process of choosing the best from among the alternative solutions
under a given set of circumstances. All managers continuously make decisions regarding
all kinds of problems issues opportunities threats etc. Hundreds of decisions are made by
the manager consciously and sub consciously every day. Decision making involves a
certain commitment. This commitment may be short run or long run depending upon the
types of decisions.

DEFINITION:
“A decision is an act of choice where in executive forms a conclusion about what
must be done in a given situation. A decision represents a course of behavior chosen
from a numberof alternatives”.

- MAC FARLAND

IMPORTANCE OF DECISION MAKING

Better Utilization of resources

Facing problems &challenges

Business growth

Increases Efficiency
 23

A. BETTER UTILISATION OF RESOURCES: Decision making helps to utilize the

available resources for achieving the objectives of the organization. Organization has
various resources like man, money, methods, materials, machines and markets. The
manager has to make correct decisions for all the 6 Ms. This will result in better
utilization of these resources.

B. FACING PROBLEMS AND CHALLENGES:

Decision making helps the organization to face and tasks new problems and
challenges. Quick and correct decisions help to solve problems and to accept new
challenges.
C. BUSINESS GROWTH:
Quick and correct decision making results in better utilization of the resources. It also
helps to achieve its objectives. All this results in quick business growth.

D. INCREASES EFFICIENCY:

Rational decisions help to increase efficiency. Efficiency is the relation between

returns and cost. If the returns are high and the cost islow, then there is efficiency and
vice versa. Rational decisions result in higher returns atlow cost.

PROCESS OF DECISION MAKING:

 24

1. IDENTIFYING THE PROBLEM:

The decision making process begins when a manager identifies the real problem. It is
essential to first recognize that a problem exists. Identification of the problem involves
three stages: scanning, categorization, and diagnosis. The scanning stage involves
monitoring the work environment for changes. The categorization stage attempts to
understand this performance gap. The diagnosis stage involves gathering relevant facts
and other additional information pertaining to the problem. It also specifies both the
nature and the causes of the problem.

2. ANALYSING THE PROBLEM:

Once the problem has been correctly diagnosed, the next logical step is analyzing it.
Sound decisions are based on proper collection, classification and analyze of facts and
figures.

3. DEVELOPING ALTERNATIVE SOLUTIONS:

After the problem is diagnosed clearly the tendency of managers is that of searching for
readymade solutions (tendency = type of behaviors).They start designing or developing
solutions through a vague idea, gradually improve it, refine it by recycling.

4. SELECTING THE BEST SOLUTION:

Selecting the best solution is done by comparing each alternative solution with one
another in terms of predetermined objectives. Drucker Suggests 4 criteria for selecting the
best among the possible alternative like, risk, economy of effort, timing and limitation
of resources. Timing is a very important factor in decision making. The most precious
resource of an organization is its manpower abilities, motivation, vision and level of
aspiratio n of its employee.
 25

5. IMPLEMENTING AND VERIFYING THE DECISION:

Effectiveness of decision in achieving the desired goals depends on its implementation.

The manager should secure the support of the top management for allocation of resources
time etc, regarding the implementation of the decision. A detailed programme of action
should be formulated specifying the minute details of action, people who will execute it,
when it will be implemented, who will be implemented and who will co-ordinate the
work.

6. FEED BACK:
Feedback is necessarily to decide whether the decision is already taken should be
continued or be modified in the light of changed conditions. Feedback is possible in the
form of organized information reports and personal observations.

2. TECHNIQUES OF DECISION MAKING:

B. NOMINAL
A. THE DELPHI GROUP
TECHNIQUE TECHNIQUE
TECHNIQUES
OF DECISION
MAKING

C. BRAIN D.DECISION TREE

STROMING

A.THE DELPHI TECHNIQUE:

Questionnaire is sent to the group members who record their answers in writing. The
group members don’t meet face-to-face. Replies ofall the members to the questionnaires
are summarized and feedback is sent for review. This process is repeated until a
satisfactory decision is made. This technique is mostly used for decisions relating to
demand forecast future problem etc.

SUCCESS OF THIS TECHNIQUE DEPENDS ON

✓ Seriousness of the group members.
✓ Expertise of the group member’s availability of adequate time.
✓ Written communication skills of the member’s use of information technology like
e-mail, voice mail etc.
 26

✓ Level of involvement and motivation of the members.

CHARACTERISTICS OF DELPHI METHOD:

• Olaf Helmer and Norman Dalkey ideated the method.
• First introduced in the year 1950.
• The founding members were part of Rand Corporation.
• ‘Delphi’ is derived from the Greek name ‘Oracle of Delphi’.
• It helps get a mutual agreement towards a standard solution.
• This is regarded as an exploratory and detailed procedure.
• It can happen across the globe and involves collecting streamlined and structured
information.
• The process remains anonymous, and the experts can share feedback without any
discretions.
• The method was first tested in the Cold War to forecast the impact of technology on
warfare.
How does this Delphi Method Forecast Work?
• The first step involves the selection and choosing of a facilitator. It is
recommended to select a neutral person who remains unbiased throughout the process.
• Once a facilitator is decided, the second step is selecting the expert panel. The
panel may include domain or subject matter experts working in the industry.
• The subject matter expert is regarded as an individual with critical insight and
knowledge to solve problems.
• The third step involves a decision on the selection of a problem statement. The
experts should then be informed on the selected topic to have sufficient time to gather
needful points that they can share with the larger group and facilitator.
• The facilitator then shares the first set of questions through a comprehensive
questionnaire.
 27

• The facilitator collects the completed questionnaire from a larger group,

assimilates common points, and removes irrelevant information.
• The facilitator then shares the second set of questions based on the responses
received from the first lot to deep-dive into the problem.
• The facilitator repeats the above steps until a common consensus arrives and the
final results are shared with the target group.
• The findings and results are analyzed further to determine the solutions and
opportunities for the problem statement.

Advantages
• This method provides opportunities for a bigger to come up and participate.
• It helps in the early detection of problems and solutions which helps in determining the
alternative course of action.
• After each step and feedback, the experts are provided with the opportunities to review
their insights and opinions which they can later change in the succeeding step.
• The participation by the experts tends to stay anonymous.
• It provides different analysis and information on complex issues.
• Highly objective thinking is formed.
• Decisions based on experts are likely to be efficient.
• It is possible to have a wide variety of options to decide.
• Because it is anonymous, it avoids conflicts between experts and encourages creative
participation.
• The expert is fully involved in the solution of the conflict and facilitates implementation.

B.NOMINAL GROUP TECHNIQUE:

The steps involved in nominal group decision making are :
Group members are bought together presented with a problem.
Members ask questions just to get clarification during brief sessions.
They share their ideas with each other in a structured format (all members get an
opportunity in a round table format).
Members ask questions just to get clarification during brief sessions members
develop the solution independently and write them on card.
 28

PROCESS OF NOMINAL GROUP TECHNIQUE:

Routinely, the NGT involves five stages:

Introduction and explanation Silent generation of ideas

NOMINAL GROUP
TECHNIQUE
Sharing ideas
PROCESS Group discussion

Voting and ranking

1. Introduction and explanation:

The facilitator welcomes the participants and explains to them the purpose and
procedure of the meeting.
2. Silent generation of ideas:
The Facilitator provides each participant with a sheet of paper with the question
to be addressed and ask them to write down all ideas that come to mind when
considering the question. During this period, the facilitator asks participants not to
consult or discuss their ideas with others. This stage lasts approximately 10 minutes.
3. Sharing ideas:
The Facilitator invites participants to share the ideas they have generated. She
records each idea on a flip chart using the words spoken by the participant. The round
robin process continues until all ideas have been presented. There is no debate about
items at this stage and participants are encouraged to write down any new ideas that
may arise from what others share. This process ensures all participants get an
opportunity to make an equal contribution and provides a written record of all ideas
generated by the group. This stage may take 15–30 minutes.
4. Group discussion:
Participants are invited to seek verbal explanation or further details about any of
the ideas that colleagues have produced that may not be clear to them. The facilitator’s
task is to ensure that each person is allowed to contribute and that discussion of all ideas
is thorough without spending too long on a single idea. It is important to ensure that the
process is as neutral as possible, avoiding judgment and criticism. The group may
suggest new items for discussion and combine items into categories, but no ideas should
be eliminated. This stage lasts 30–45 minutes.
5. Voting and ranking:
This involves prioritizing the recorded ideas in relation to the original question.
Following the voting and ranking process, immediate results in response to the question
is available to participants so the meeting concludes having reached a specific outcome.

UNIT-II
 29

Advantages/Benefits
A. All members get equal opportunity for participation no member can dominate the
discussion.
B. Ego problem and interpersonal problems are solved decision can be taken in the
right time due to control of time.
Disadvantages:
a) The procedure is too rigid. Members may be frustrated.
b) Members can have interpersonal relations. Group cohesiveness cannot be ensured.

C.BRAIN STROMING TECHNIQUE:

This technique is used to encourage creative thinking in groups of around and

members. The success of this technique depends upon the member’s ability to listen to
others. More members of ideas should be encouraged so that eventually higher quality
ideas would be generated.

GUIDE LINES FOR BRAIN STROMING:

1. Record all ideas i.e. on a piece of flipchart paper.
2. There is no criticism. Everyone must be encouraged to participate.
3. Individually rank ideas.
4. Decide as a group which idea will be enacted first.
5. Quantity is more desirable then quality.
6. Evaluation, judgment (or) defense of ideas during the brainstorming session.
7. Begin the brainstorming process again as necessary.

Advantages
1. Broader participation of the members. Members have a sense of belongingness and
the final product is the team effort.
2. Brainstorming builds involvement, commitment, loyalty, and enthusiasm.
Participating in the sessions stimulates and unlocks people’s creative talents.
3. Brainstorming also builds self-esteem.

Disadvantages
1. Some members may fear that their ideas may be looked down by others. Criticism
of ideas kills creativity some people may dominate the process of decision making.
2. If brainstorming is done in an organization that has an authoritarian structure, it
would basically be useless since everyone just waits for their boss to dictate what
they’d talk about.
 30

D.DECISION TREE
• The decision tree is a model in the form of a graphical tool that charts the steps to
consider in evaluating each alternative solution in decision making.

THE MAIN POINTS OF THE DECISION TREE ARE,

• Using the information acquired in preparing to make the decision

• Decision tree helps managers to evaluate and arrange the information in order.
• Decision tree enables managers to introduce a degree of justifiability.
 31

High quality cost 200/-per Decision

unit make options

Make

High quality praise 220/-

per unit buy options

Average quality cost 165/-

per unit make options
Decision points make Buy
or buy Average quality 150/- per
unit buy options

Low quality cost 100/- unit

make options
Make

Low quality price 120/- per

unit buy option

Decision point

Chance event

• It is observed from the figure that the car manufacturing company has to take
decision whether to make the wipers or to pay them from other companies.
• Managers make the decision based on the information and quantified data provided
in the decision tree.

3. PLANNING:
Planning starts with defining the objectives and the formulation of the specific goals
ortargets to be achieved. Planning is concerned with the future. It is done by managers
atall levels of organizations. Planning is a primary function of corporate management.
It is a bridge between the present and the future. It helps in the process of motivation
andprovides a frame work for decision making.
 32

DEFINITION
“Planning is deciding in advance what is to be done in future. Plan bridges thegap
between where we are and we want to go”.

-HAROLD KNOONTZ and O’DONNEL,

“Planning means the determination of what is to be done, how it is to be done, who is
to do it, and how results are evaluated.”
- According to James Lundy

NATURE OF PLANNING:

FLEXIBLE
GOAL ORIENTED CONTINUOUS

PRIMARY FUNCTION FUTURISTIC

NATURE
OF
PERVASIVE PLANNING INVOLVES CHOICE

1. PLANNING IS GOAL ORIENTED:

Organization is set up with a general purpose in view. Specific goals are set out in the
plans along with the activities to be achieving the goals. Thus, planning is purposeful.
Planning has no meaning unless it contributes to the achievement of predetermined
organizational goals.

2. PLANNING IS A PRIMARY FUNCTION:

Planning lays down the base for other functions of management. All other functions are
performed within the framework of plans drawn. Thus, planning precedes other function. The
other functions of management are interrelated and equally important. However, planning
provides the base of all the other functions.

3. PLANNING IS PERVASIVE:
Planning is required at all levels of management as well as in all departments of the
organization. It is neither an exclusive function of top management nor of any particular
department. But the scope of planning differs at different level and among different
departments.

4. PLANNING IS FLEXIBLE:
Plans are drawn on the basis of forecasts. Since the future is uncertain, planning must
cope with change in future condition. Activities planned with certain assumptions about the
future may not come true.
33
5. PLANNING IS CONTINUOUS:
Plans are prepared for the specific period of time, may be for month, a quarter, or a year.
At the end of that period there is need for a new plan to be drawn on the basis of new
requirements and future conditions. Hence planning is never ending activity. It is a
continuous process.

6. PLANNING IS FUTURISTIC:
Planning essentially involves looking ahead and future. The purpose of planning is to
meet future event effectively to the best advantage of an organization. Through forecasting
future events and conditions are anticipated and plans are drawn accordingly.

7. PLANNING INVOLVES CHOICE:

Planning essentially involves choice from among various alternatives and activities. If
there is one possible goal or only one possible course of action, there is no need for planning
because there is no choice.

OBJECTIVES OF PLANNING:

REDUCE UNCERTAINTY ANTICIPATION

OBJECTIVES
CO0OPERATION AND OF PRE-DETERMINED
CO-ORDINATION GOALS
PLANNING

ECONOMY IN REDUCE COMPETITION

OPERATION

1. REDUCE UNCERTAINTY:
Future is uncertain. Planning may convert the uncertainty into certainty. This is possible
to some extent by, planning which is reducing uncertainty.

2. BRING CO0OPERATION AND CO-ORDINATION:

Planning can bring co-operation and co-ordination among various sectors of the
organization. The rivalries and conflicts among departments could be avoided through
planning.

3. ECONOMY IN OPERATION:
As already pointed out, planning selected best alternative among various alternatives this
will lead to the best utilization of recourses. The objectives of the organization are achieved
easily.
 34

4. ANTICIPATE THE UNPREDICTABLE CONTINGENCIES:

Some events could not be predictable. These events are termed as contingencies. These
events may affect the smooth functioning of an enterprise.

5. ACHIVING THE PRE-DETERMINED GOALS:

Planning activities are aimed at achieving the objectives of the enterprise. The timely
achievements of objectives are possible only effective planning.

6. REDUCE COMPETITION:
The existence of competition enables the enterprise to get a chance for growth. At the same
time, stiff competition should be avoided. It is possible, to reduce competition through
planning.

4. PROCESS OF PLANNING:
Planning is a continuous process. Planning is an organizations plan for the total
business or any part of the business includes the departments or any part of it.
(1) Setting Objectives
• This is the primary step in the process of planning which specifies the objective of an
organisation, i.e. what an organisation wants to achieve.
• The planning process begins with the setting of objectives.
• Objectives are end results which the management wants to achieve by its operations.
• Objectives are specific and are measurable in terms of units.
• Objectives are set for the organisation as a whole for all departments, and then
departments set their own objectives within the framework of organisational objectives.
Example:
A mobile phone company sets the objective to sell 2,00,000 units next year, which is double
the current sales.

(2) Developing Planning Premises

• Planning is essentially focused on the future, and there are certain events which are
expected to affect the policy formation.
• Such events are external in nature and affect the planning adversely if ignored.
• Their understanding and fair assessment are necessary for effective planning.
• Such events are the assumptions on the basis of which plans are drawn and are known as
planning premises.
Example:
The mobile phone company has set the objective of 2,00,000 units sale on the basis of forecast
done on the premises of favourable Government policies towards digitisation of transactions.
 35
(3) Identifying Alternative Courses of Action
• Once objectives are set, assumptions are made.
• Then the next step is to act upon them.
• There may be many ways to act and achieve objectives.
• All the alternative courses of action should be identified.

Example:
The mobile company has many alternatives like reducing price, increasing advertising and
promotion, after sale service etc.

(4) Evaluating Alternative Course of Action

• In this step, the positive and negative aspects of each alternative need to be evaluated in
the light of objectives to be achieved.
• Every alternative is evaluated in terms of lower cost, lower risks, and higher returns,
within the planning premises and within the availability of capital.
Example:
The mobile phone company will evaluate all the alternatives and check its pros and cons.

(5) Selecting One Best Alternative

• The best plan, which is the most profitable plan and with minimum negative effects, is
adopted and implemented.
• In such cases, the manager’s experience and judgement play an important role in selecting
the best alternative.
Example:
Mobile phone company selects more T.V advertisements and online marketing with great after
sales service.

(6) Implementing the Plan

• This is the step where other managerial functions come into the picture.
• This step is concerned with “DOING WHAT IS REQUIRED”.
• In this step, managers communicate the plan to the employees clearly to help convert the
plans into action.
• This step involves allocating the resources, organising for labour and purchase of
machinery.
Example:
Mobile phone company hires salesmen on a large scale, creates T.V advertisement, starts
online marketing activities and sets up service workshops.

(7) Follow Up Action

• Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.
• Monitoring of plans is very important to ensure that the plans are being implemented
according to the schedule.
• Regular checks and comparisons of the results with set standards are done to ensure that
objectives are achieved.
 36
Example:
A proper feedback mechanism was developed by the mobile phone company throughout its
branches so that the actual customer response, revenue collection, employee response, etc.
could be known.

LIMITATIONS OF PLANNING:

1. RIGIDITY:

The existence of a plan puts managerial activities in a rigid framework. Programmes are
carried out according to the plan and deviations are considered to be highly undesirable. This
attitude makes managers and employees inflexible in their operations.
2. MISDIRECTION:

Planning may be used by a particular individual and groups to serve their own interest.
Attempts are made by them to influence setting of objectives, formulation of plans and
programs to suit their limited aims and objects, ignoring the interest of the organization. As a
result planning may not serve any useful purpose.
3. TIME CONSUMING:

Planning is a time consuming process. It requires collection of information, its analysis

and interpretation. The process may take consideration time. Thus, planning is not
practicable during emergencies and crisis when quick decisions are needed.
4. LACK OF ACCURATE INFORMATION:

Planning is concerned with future activity and hence, its quality will be determined by
the quality of forecast of future events. As no manager can predict completely and accurately
the events of future, the planning may pose problems in operation. This problem is further
increased by inaccurate planning premises.
5. INTERNAL INFLEXIBILITIES:

Managers while going through the planning process have to work in a set of given
variables. These variables often provides less flexibility in planning which is needed to cope
up with the change in future events.
a. PSYCHOLOGICAL INFLEXIBILITIES:

Psychological inflexibility is in the form of resistance to change. Managers and

employees in the organization may develop patterns of through and behavior that are hard to
change. They look more in terms of present rather than future.

b. POLICY AND PROCEDURAL INFLEXIBILTY:

Another internal inflexibility emerges because of organizational policies and procedure.
Once these are established, they are difficult to change. Though these policies, procedures,
and rules are meant to facilitate managerial action by providing guidelines, they often tend to
be too exacting and numerous that they leave very little scope for managerial initiative and
 37
flexibility.
c. CAPITAL INVESTMENT:

In most cases, once funds are invested in fixed assets, the ability to switch future course
of action becomes rather limited, and investments itself becomes a planning premises.
During the entire life of the fixed assets, this inflexibility continuous unless the organization
can reasonably liquidate its investment or change its course of action, or unless it can afford
to write off the investment.
6. EXTERNAL INFLEXIBILITIES:

Besides the internal inflexibilities, managers are confronted with much external
inflexibility and they do not have these. EXAMPLE: Managers have little or no control over
social economic, technological and political forces. Whether these change quickly or slowly,
they do stand in the way of effective planning.
a. POLITICAL CLIMATE:

Every organization, to a greater or lesser degree, is faced with the inflexibility of the
political climate existing at any given time. Attitudes of government towards business,
taxation policy, regulation of business etc. generate constraints on the organizational
planning process. Government being major supplier or certain raw materials, finance
institution through financial institution may affect the business organization considerably.
b. TRADE UNION:
The existence of trade union, particularly those organized at the national level, tends to
restrict freedom of planning. Apart from wages and other associated benefits, they affect the
planning process by putting limitations and the work that can be undertaken by the
organization. They set up the work rule and productivity. To that extent, managers are not
free to make decisions of their choice.

c. TECHNOLOGICAL CHANGES:

The rate and nature of technology changes also present very definite limitations upon
planning. An organization is engaged in its process with a given technology. When there is a
change in technology, it has to face numerous problem resulting into higher cost of
production and less competitive competence in the market. However, the organization cannot
change its technology so frequently. Thus, higher rate of technology changes more would be
the problem of long- range planning.
 38

5. PROBLMES OF PLANNING

High Cost Time Consuming

PROBLEMS
Un-certainty OF In Flexibility

PLANNING
In-Accurate information Misdirection

A. IN FLEXIBILITY: Once a plan has been done or finalized, it is not easy to

deviatefrom the selected course of action. This rigidity acts as a barrier for the
employees in successful implementation of their functions. Liberalization and
globalization made thechange and adaptability as the order of the day in the business
world.

B.TIME CONSUMING: Planning process requires a lot of time to perform all these
activities and to make planning effective and systematic. Planning involves collection of
data, its analysis, forecasting and making assumption. Forecast of future events is based
on a number of statistical tools.

C.MISDIRECTION: Sometimes planning efforts are not successful due to the mis
direction of an individual or group of individuals. Planner or manager try to formulate
the objective and plans to serve their personal interests rather than achieving the overall
goals of the organization.

D.HIGH COST: The planning process is not only time consuming but also expensive.
The planning process requires complete data and information to be collected and
processed. It requires use of statistical techniques. As such planning is an expensive
activity.

E.UN-CERTANITY: Planning process also suffers from the un-certainty of change.

Planning is for the future but is based on present business conditions. Changes in
business conditions like anticipated risks, absolution of technology, unfavorable market
conditions etc, limit the successful execution of plans.

F.IN-ACCURATE INFORMATION: Planning is essentially a futuristic exercise that is

based on assumption and forecasts made by the planners or managers.

UNIT-II
 39

6. MAKING IT EFFECTIVE:

A. Establishing climate for

B. Wider participation C. Effective communication of
planning
planning information

D. Integration of long term & E. Involvement of top F. An open system approach

short term planning management

G. Cost – benefit analysis

A.ESTABLISHING CLIMATE FOR PLANNING: Managers should create a climate

where every person in the organization takes planning action. Every superior manager
should remove obstacles to planning. Managers at every level should be encouraged and
give necessary facilities to plan their goals and activities with active participation of the
workers.

B.WIDER PARTICIPATION: The most effective way of planning is where every

manager is granted freedom to plan in respect of his areas of activities.

Participation By The Subordinates May Be Made Possible Through Various Ways

Like:-

Formation of planning committee at various level which may be made responsible for
providing planning information, inviting suggestions and reactions from sub ordinates
managers of plans. Management by objectives under which common goals at each level
of activity are established by managers and workers together.

C.EFFECTIVE COMMUNICATION OF PLANNING INFORMATION: Many

Planning efforts fail because managers do not really understand their goals and other
planning promises. The organization should have an effective network to communicate all
the information that is relevant for planning of the goals at events level. This should
include specific and clear information regarding resource availability organizational
policies strategies.
 40

D. INTEGRATION OF LONG TERM AND SHORT TERM PLANNING: Short term

Plans of an organization should contribute to the accomplishment of its long term plans.
E. INVOLVEMENT OF TOP MANAGEMENT: In any organization the role of top
management in planning is quite unique and important. Effective planning may start at
top level and get support from lower level managers. But, this should not mean that
subordinate managers can do nothing in initiating the planning process.

F. AN-OPEN SYSTEM APPROACH: It suggests that managers must take into account
interaction with their total environment in every aspect of planning premises represent a
clear recognition.

G. COST-BENEFIT ANALYSIS: The planners must undertake cost benefit analysis.

This can be achieved by establishing measurable objectives, proper decision making and
formulation of derivative plans for the changing environment.

7. CONTROLLING:
Just as every automobile require brakes to stop the vehicle and a steering system to
give a direction to it. Each and every organization requires a control system to direct the
organization towards the goals also enhance effectiveness. Organizations use the
technique of controlling to ensure that they are making a considerable progress towards
their goals and utilizing the available resources. Controlling is a function of management
that strives to measure the performances and take the remedial actions when needed.
Controlling also ensure that an organizations resources are being used effectively and
systematically for the achievement of pre-determined goals.

1. : DEFINITION OF CONTROLLING

“Control consists in verifying whether everything occurs in conformity with the plan
adopted, the instructions issued and principles established”

- HENRY FAYOL

“Controlling is determining what is being accomplished that is evaluating the performance

and, if necessary, applying corrected measures so that the performance takes place
according to plans.”
-George R. Terry
 41

IMPORTANCE OF CONTROL:
1. Basis for Future Action:
Control provides basis for future action. The continuous flow of information about
projects keeps the long range planning on the right track. It helps in taking corrective action
in future if the performance is not up to the mark. It also enables management to avoid
repetition of past mistakes.

2. Facilitates Decision-making:
Whenever there is deviation between standard and actual performance the controls
will help in deciding the future course of action. A decision about follow up action is also
facilitated.

3. Facilitates Decentralization:
Decentralization of authority is necessary in big enterprise. The management cannot
delegate authority without ensuring proper controls. The targets or goals of various
departments are used as a control technique. If the work is going on satisfactorily then top
management should not worry. The ‘management by exception’ enables top management to
concentrate on policy formulation. Various control techniques like budgeting, cost control,
pre action approvals allow decentralization without losing control over activities.

4. Facilitates Co-ordination:
Control helps in coordination of activities through unity of action. Every manager will
try to co-ordinate the activities of his subordinates in order to achieve departmental goals.
Similarly, chief executive will co-ordinate the functioning of various departments. The
controls will act as checks on the performance and proper results will be achieved only
when activities are coordinated.

5. Helps in Improving Efficiency:

The control system helps in improving organizational efficiency. Various control
devices act as motivators to managers. The performance of every person is regularly
monitored and any deficiency is corrected at the earliest.
 42
6. Psychological Pressure:
Controls put psychological pressure on persons in the organization. Everybody knows
that his performance is regularly evaluated and he will try to improve upon his previous
work. The rewards and punishments are also linked with performance. The employees will
always be under pressure to improve upon their work. Since performance measurement is
one of the important tools of control it ensures that every person tries to maximize his
contribution.

Limitations of Control:
1. Influence of External Factors:
There may be an effective control system but external factors which are not in the
ambit of management may have adverse effect on the working. These factors may be
government policy, technological changes, change in fashion, etc. The influence of these
factors cannot be checked by the control system in the organization.

2. Expensive:
The control system involves huge expenditure on its exercise. The performance of
each and every person in the organization will have to be measured and reported to higher
authorities. This requires a number of persons to be employed for this purpose. If the
performance cannot be quantitatively measured then it will be observed by the superiors.
The exercise of control requires both time and effort.

3. Lack of Satisfactory Standards:

The performance of certain activities involving human behaviour cannot be fixed in
terms of quantities. It is difficult to fix standards for activities like public relations,
management development, human relations, research, etc. The evaluation of work of
persons engaged in these activities will be difficult.

4. Opposition from Subordinates:

The effectiveness of control process will depend upon its acceptability by
subordinates. Since control interferes with the individual actions and thinking of
subordinates they will oppose it. It may also increase the pressure of work on subordinates
 43
because their performance is regularly monitored and evaluated. These factors are
responsible for the opposition of controls by subordinates.

8. SYSTEM OF CONTROLLING

Set performance Measure performance Determine

standards Compare deviation

Standard Meet standard

Take connective action

No Yes

Reinforce and continue work

A.SETTING PERFORMANCE STANDARDS: Evaluating an organizational

performance is normally based on certain standards. These standards may be previous year’s
achievement or the competitor’s records or the fresh standards established by the
management.

Companies should establish the standards for evaluating the performance of thestrategies
taking several factors into consideration like,

➢ Quality of products /services.

➢ Quality of management.
➢ Creativity.
➢ Ability to attract develop and retain competent and skilled people.
➢ Corporate image among the customers and general public.
➢ Soundness of human resource management in terms of percentage of employee
grievances redressed employee satisfaction rate, employee turnover rate etc.
 44

B.MEASURE PERFORMANCE: Performance may be measured through quantitative

terms or qualitative terms. Reports and statements help to measure the actual performance
through quantitative terms and managerial observations help to measure performance
through qualitative terms.

FOLLOWING ARE THE 3 SOURCES

WRITTEN REPORTS: With the help of computer and its data can be gathered and
analyzed easily. This technology can provide enormous benefits to the managers in
presenting written reports.

ORAL REPORTS: Oral reports are the presentations or summary provided by the
managers to their superiors.

PERSONAL OBSERVATION: The person or manager goes to the place where the
work is going on and observes what exactly is happening. It is possible for the manager
personally observe methods adopted by the personnel (employee) their non-verbal
language.
C.COMPARE PERFORMANCE WITH STANDARDS: Organization standards are
yard sticks and bench marks that place organizational performance. The manager should
set standards for all performance areas of the organization based on organizational goals
and strategies. Normally the standards vary from one company to the other company.
They also vary from time to time in th same company.

The Standards Developed By General Electrical Can Be Used Model Standards It

Includes:-

1. PRODUCT LEADERSHIP STANDARDS:

They include the innovations and modifications in products to increase the new
uses of existing product developing new products with new uses etc.
2. EMPLOYEE ATTITUDE STANDARDS:
They include employee’s favorable attitude towards the nature of work
organization salaries quality of work like treatment by superiors etc.
3. PRODUCTIVITY STANDARDS
These standards indicate the performance of the organization in terms of
convention of inputs into output. These standars include capital productivity, labor
productivity material productivity etc.
 45

D.TAKE CORRECTIVE ACTIONS: Managers should take necessary corrective

action if performance is not in harmony with standard. The choice of the remedial
measures relies on the nature of the issue.

9. CONTROLLING TECHNIQUES:

Controlling techniques

Traditional modern
Personal observation return on investment

Statistical reports and analysis management information system

Budgeting bench marking

Break even analysis total quality management

Financial statement analysis best practices

1. TRADITIONAL TECHNIQUES:
A.PERSONAL OBSERVATION: In this the supervisor monitor the performance of
employees as well as inspects the proper execution of operations by observing the
situation. Many problems are solved during supervision. It helps a manager to collect first
hand information about the performance of the employees and it is time consuming
process.

B.STATISTICAL REPORTS AND ANALYSIS: In this technique the managers

compare and analyze various ratios, percentages, averages etc. this technique is widely
used in inventory control production control etc.
 46

C.BUDGETTING AND BUDGETERY CONTROL: Budget would be basis for

delegation of authority and responsibility without loss of control. The budgetary control
denotes the process of establishing the budgets for different operations and comparing the
actual outcome against the budgets. Budgetary control helps in planning and decision
making processes of an organization. The best is a techniques and budgetary control is
the outcome.

D.BREAK-EVEN ANALYSIS : The techniques used by managers to study the

relationship between sales volume, cost and profit are known as break-even analysis. It
helps in making important managerial decisions. It is beneficial because it provides the
information regarding the market potential and profit of products which helps in creating
and deleting product lines. Break-even analysis finds out the sales mix, channels of
distribution and sales promotion.

E.FINANCIAL STATEMENT ANALYSIS : Financial statement plays a vital role

some of the important financial statements like profit and loss statement, balance sheet
etc. These statements also help in analyzing the ratios that highlight the financial status of
an organization.

2. MODERN TECHNIQUES:

A.RETURN ON INVESTMENT: It is very useful techniques for determine whether the

capital invested in business has been effectively used or not for generating reasonable
amount of return. The prime motive of calculating ROI is to optimize the revenue on
investment capital rather than increasing the revenue.

Net income
The formula is – ROI =
Sales
B.MANAGAEMENT INFORMATION SYSTEM: In MIS raw data are collected from
direct and indirect sources after that data are classified. It provides timely information to
the managers, so that they can take appropriate corrective measures in case of deviations
from standards.
 47

C.BENCH MARKING: Bench marking has become embedded in most originations as

part of the way they stay competitive. Bench marking is the process determines who is
the very best ,who sets the standard and what that standard it. Now bench marking is a
management tool that is being applied almost anywhere.

D.TOTAL QUALITY MANAGEMENT: TQM is a consent which is based on the

notion of responsibility towards quality maintain throughout the firm. The primary
objective of TQM is the active participation of the production staff to quit for quality and
to inculcate the attitude of constant improvement them.
E.BEST PRACTICES: A best practice is the process of finding and using ideas and
strategies from outside your company and industry to improve performance in any given
area.

F.THE STEPS FOR INSTALLING BEST PRACTICES INVOLVES: Identifying

one business process or service to improve ,looking for one metric to measure. Collecting
information on the successful best practices of other companies modifying the best
practices for the situation. The benefits of best practices for small business include
reduced cost, avoidance of mistakes, finding hew ideas and improving performance.

10. MAKING CONTROLLING EFFECTIVE:

A. Accuracy B. flexibility

C. Acceptability D.Integration

E Corrective action
 48

A. ACCURACY: Effective controls generate accurate data and information. Accurate

information is essential for effective managerial decisions. Inaccurate controls would
divert management efforts and energies on problems that do not exist

B. Flexibility:
The business and economic environment is highly dynamic in nature. Technological changes occur
very fast. A rigid control system would not be suitable for a changing environment. These changes
highlight the need for flexibility in planning as well as in control. Managers must make
modifications in controlling methods, techniques and systems as they become necessary. An
effective control system is updated quickly as the need arises.

C. Acceptability: employees must agree that such controls are necessary and appropriate
and will not have any negative effects on their efforts to achieve their personal as well as
organizational goals.

D. Integration:
When the controls are consistent with corporate values and culture, they work in harmony
with organizational policies. These controls become an integrated part of the organizational
environment and become effective.

E. Corrective action:
An effective control system not only checks and identifies deviation For example, a
computer keeping a record of inventories can be programmed to establish “if-then”
guidelines. Effective controls should be placed and emphasized critical and strategic control
points where failures cannot be tolerated and where time and money costs of failures are
greatest.
 49

CASE STUDY
Krishnamurthy, Plant Manager Of Frame Manufacturing Company, Is The Chairperson
Of The Ad Hoc Committee For Space Utilization. The Committee Is Made Up Of Various
Departmental Heads Of The Company. The General Manager Of The Company Has Given
Murthy The Responsibility For Seeing Whether The Various Office, Operations And
Warehouse Facilities Of The Company Are Being Optimally Utilized. The Company Is
Beset By Rising Costs And The Need For More Space. However, Before Okaying An
Expensive Addition To The Plant, The General Manager Wants To Be Sure That The
Currently Available Space Is Being Utilized Properly. Murthy Opened Up The First
Committee Meeting By Reiterating The Charge Of The Committee. Then Murthy Asked
The Members If They Had Any Initial Observations To Make. The First To Speak Was The
Office Manager. He Stated “Well I Know We Are Using Every Possible Inch Of Room That
We Have Available To Us. But When I Walk Out Into The Plant I See A Lot Of Open
Spaces. We Have People Piled On Top Of One Another, But Out In The Plant There Seems
To Be Plenty Of Room.” The Production Manager QuicklyReplied, “We Do Not Have A
Lot Of Space. You Office People Have The LuxuryFacilities. My Supervisors Don’t
Even Have Room For A Desk And A File Cabinet. I Have Repeatedly Told The Plant
Manager We Need More Space. After All, Our Operation Determines Whether This Plant
Succeeds Or Fails, Not Like You People In The Front Office Pushing Paper Around.’
Murthy Interrupted At This Point And Said, “Obviously We Have Different Interpretations
Of The Space Utilisation Around Here. Before Further Discussion I Think It Would Be Best
If We Have Some Objective Facts To Work With. I Am Going To Ask The Industrial
Engineer To Provide Us With Some Statistics On Plant And Office Layots Before Our Next
Meeting. Today’s Meeting Is Adjourned.

QUESTIONS:
1. What Perceptual Principles Are Evident In This Case ?

SOLUTION:

a. Perception of persons vary from each other as every individual view comports as the
prime interest. In this case it is evident that perception of production manager differs from
that of office manager.

b. Office manager said the space has been utilized in their department to the maximum
extent and state that in plant, spaces are left without being made use of efficiently.

c. Production manager emphasize on his point of view that the space has been made best
use in his department where as in office department they are not utilizing the space
provided and he also stressed that failures or success of an organization will be
determined by the operating of the plant.
 50

2. What Concept Was Brought Out When The Production Manager Labelled The Office
Personnela Bunch Of “Paper Pushers” ?

SOLUTION: The Production manager thinks that the office personnel's will be only
having paper works they won’t be having any much work to do physically they are
enjoying the comforts without doing much physical work. According to production
manager he feels that the office people is having more space just to keep their paper and
files etc. He also thinks that the space giving for the office people is more for their nature
of working comparing to his production work. He believes there is no much work to be
performed compared to production department they just deal with paper work like
recording day to day’s activity which is an easy task.

UNIT II:

External Questions: (Old Question papers)

1. Enumerate on types of plans?

2. Define planning. Discuss the approaches to planning?
3. Elaborate on the steps involved in decision making?
4. Describe the process of controlling. Also state the essentials of control process?
5. What are the techniques of decision making?
6. Discuss the need for managerial control and explain various kinds of control?
7. Bring out the importance of control as a function of management. Write a brief
note on controlling techniques?
 R21 Regulations

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

(Established by Govt. of A.P., ACT No.30 of 2008)
ANANTHAPURAMU – 515 002 (A.P) INDIA

MASTER OF BUSINESS ADMINISTRATION

MBA; MBA (General Management); MBA (Business Management)
COMMON COURSE STRUCTURE

Course Code L T P C
MANAGEMENT & ORGANIZATIONAL BEHAVIOUR
21E00101 4 0 0 4
Semester I

Course Objectives:
• To impart basic conceptual knowledge on Management theories and Practices
• To achieve higher productivity and accomplishing the goals of the organization.
Course Outcomes (CO): Student will be able to
• Understand concepts, theories and practices
• Apply theoretical knowledge in managing the organization and Know the behaviour of
employees at individual, group and organisational levels at work place under different
leadership styles.
UNIT - I Lecture Hrs: 8
Role of Management – Concept – Significance – Functions – Principles of Management - Patterns of
Management: Scientific – Behavioural – Systems – Contingency.

UNIT - II Lecture Hrs: 12

Decision Making & Controlling – Process – Techniques. Planning – Process – Problems –– Making It
Effective Controlling - System of Controlling – Controlling Techniques – Making Controlling
Effective.
UNIT - III Lecture Hrs:12
Individual Behaviour & Motivation –Understanding Individual Behaviour – Perception – Learning –
Personality Types – Johari window- Transactional Analysis- Motivation– Concept of Motivation -
Motivational Theories of Maslow, Herzberg, David McClelland, and Porter and Lawler
UNIT - IV Lecture Hrs:12
Group Behavior& Leadership: Benefits of Groups – Types of Groups – Group Formation and
Development. Leadership and Organizational Culture and Climate: Leadership – Traits Theory –
Managerial Grid – Transactional Vs Transformational Leadership – Qualities of good leader- Women
Leadership in India.
UNIT - V Lecture Hrs:12
Organisational Behaviour–Organizing Process – Departmentation Types – Making Organizing
Effective –Organisational culture- Types of culture – Organisational Culture Vs Organisational climate
- Conflict management -Change Management.
Textbooks:
1. Principles of Management, Koonz,Weihrich and Aryasri, Tata McGraw Hill.
2. Organizational Behaviour: Design, Structure and Culture, Gupta, Willey
3. Management and Organisational Behaviour, Subbarao P, Himalaya Publishing House
Reference Books:
1. Organisational Behaviour ,S.S.Khanka, S.Chand
2. Organisational Behaviour, Stephen P. Robbins, Pearson Education
3. Organisational Behaviour , Mishra .M.N ,Vikas
4. Management and Organisational behaviour, Pierce Gordner, Cengage.
5. Behaviour in Organizations, Hiriyappa .B.New Age Publications
6. Organisational Behaviour,Sarma, Jaico Publications.
7. Principles of Management ,Murugesan ,Laxmi Publications
Online Learning Resources:

4
1
 R21 Regulations

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY ANANTAPUR

(Established by Govt. of A.P., ACT No.30 of 2008)
ANANTHAPURAMU – 515 002 (A.P) INDIA

MASTER OF BUSINESS ADMINISTRATION

MBA; MBA (General Management); MBA (Business Management)
COMMON COURSE STRUCTURE & SYLLABI

https://onlinecourses.nptel.ac.in/noc20_mg51/preview
https://onlinecourses.swayam2.ac.in/cec20_mg03/preview
https://onlinecourses.nptel.ac.in/noc20_mg58/preview
https://onlinecourses.nptel.ac.in/noc21_mg30/preview

2
 2

UNIT-3
INDIVIDUAL BEHAVIOUR & MOTIVATION
1. UNDERSTANDING INDIVIDUAL BEAHAVIOUR:

Individual behavior is the set of actions performed by an individual Performance of an

organization depends o n the individual behavior. Human behavior is affected by numerous
factors like attitudes culture, emotions, ethics, values etc. Humans may be physically but
not behaviorally, infarct the same person behaves differently in different situations. This is
due to the influence of various factors. It is the responsibility of managers to ensure
accomplishment of organization goals. Understanding of human behaviors is necessary for
managers to become aware of how to motivate and encourage employees for better
performance.

1. : FACTORS AFFECTING INDIVIDUAL BEHAVIOUR:

Personal factors Psychological Organization Environmental

factors

Age personality physical facility physical

Gender attitudes leadership economic
Education values organization political
Abilities motivation structure

1. PERSONAL FACTORS

AGE:
Age is a very important factor. Performance is dependent on age. With regard to
productivity old age results in reduced productivity skill as he or she grows older in age.
Age can also be factor of adaptability.

GENDER:
Experts say that in terms of job performance and mental abilities, men andwomen are
equal Without any male-female differences, some of the people have competitive drive,
leadership, motivation, learning ability, analytical skills or problem solving ability.
 3

EDUCATION:
Systematic knowledge and learning is called education. Increased levels ofeducation serve to
increase an individual’s expectations about positive outcomes.

ABILITY:
Ability refers to an individual’s capacity to perform various tasks in a job. Ithas a
great impact on the performance and satisfaction level of employees.

2. PSYCHOLOGICAL FACTORS:

PERSONALITY:
Personality generally refers to personal traits like aggressiveness, behavior and other
qualities. Personality has both internal and external elements. The External traits are the
observable behaviors that we notice in an individual’s personality forexample sociability.
Internal states represent the thoughts, values.

ATTITUEDES:
Attitudes are evaluative statements either favorable or un-favorable attitudes or
values interrelated.

VALUES :
The fundamental beliefs about the way should behave or communicate are
called values. Values affect an individual’s personalities as well as his perception.

MOTIVATION:
Motivation is a process that starts with a physiological or psychologicaldeficiency or
need that activities behavior or a drive that is aimed at a goal or incentive.

3. ORGANISATIONAL FACTORS:

PHYSICAL FACILITIES:
Physical facilities like air conditioning, space lighting, equipment given
to employee’s environment etc. also affect the employee’s performance
and his or her
approach towards their work and the organization.

ORGANISATION STRUCTURE AND DESIGN:

Organizational configuration like line, staff functional organizations, duties and
responsibilities of organization towards its employees that constitute the organizational
structure.

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION

 4

LEADERSHIP:
Leader plays a pivotal role in an organization. Leadership is defined as the process
whereby one individual influences other group’s members towards the attainment of
defined group or organizational goals.

4. ENVIRONMENTAL FACTORS:

ECONOMIC FACTORS: Economic position of a person influence different aspects of

his development like motivational emotional social education carrier living with other etc.

POLITICAL FACTORS : Political factors influence investment, fiscal policy and job
opportunities within a country. Political environment of the country will affect the
individual behavior not directly, but through several other factors.

2. PERCEPTION:

Perception is the process of receiving information about and making sense of the world
around us. Perception includes all those process by which an individual receives
information about the environment seeing, hearing, feeling, tasting and smelling.
Perception is the process of receiving, selecting, organizing, interpreting, checking and
reacting to sensory stimuli or data. Perception is based on the psychology of individuals.
Behavior of a person depends on how he perceives reality rather than what the reality
actually it. In an organization people respond according to their perception about the fact
rather than the actual fact.

DEFINITION OF PERCEPTION

“A process by which individuals organize and interpret their sensory impressions in

orderto give meaning to their environments.”
- STEPHAN P.ROBBINS

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION KVSMBA

 5

CHARACTERISTICS OF PERCEPTION
1. Perception is a selective process:
We do not perceive each and everything in the world or around us. We attend to
only a part of the stimuli around us. We select only a limited range of stimuli to which
we attend. Attention is a basic process in perception. It makes our perception selective
in nature. What we select would depend upon our needs, interests, and motives or on the
nature of stimuli to which we are exposed.
2. Perception requires sensation:
Perception is intimately related to sensation. In order for perception to occur, we
must first experience some sensation.
3. Perception involves organisation:
Perception is not merely a collection of present sensations and memory traces of
past experiences. It is a meaningful and integrated organization of past and present
knowledge.
4. Perception involves past experience:
Perception involves past experience also. The present information can be
meaningfully understood only when we integrate our past and interpret it in terms of
present or future consequences.
5. Change is the basis of perception:
Perception is always a response to some change or difference in the environment. If
the world were uniformly the same we would experience no perception. E.g., change in
the weather, style of dress, food, etc. is easily perceived. Any change in the normal
routine is perceived quickly.
6. Perception is objective as well as subjective:
We all perceive certain things as the same e.g., table, chair, etc. are perceived by
every one of us in a more or less similar manner. This is objective perception. In many
cases our perception is considerably influenced by our thoughts, motives, interests, etc.
Such perception is subjective in nature, e.g., an ambiguous event may be perceived
differently by different individuals.

PROCESS OF PERCEPTION:

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION KVSMBA

 6

• Reception: In this process, a person receives the information through stimuli.

• Selection: This is governed by two types of factors:
o External factors: These are size, intensity, proximity, motion and novelty.
o Internal factors: These are attitude, motives, experiences, interests and
expectations.
• Organization: It is the process by which we sort stimuli into a meaningful pattern. It
involves the following:
o Grouping: Assembling of stimuli on the grounds of similarity.
o Proximity: This is the closeness of stimuli to one another that affects perception.
o Closure: It is the ability to organize stimuli so that together they form a whole
pattern.
• Interpretation: It is the formation of an idea about the information that is sensed,
selected and organized. It involves the following phenomena: primacy effect, selective
perception, stereotyping, halo effect, projection and expectancy effect. They are the types
of perceptual errors.
o Primacy/ Recency Effect: The first impression is given the most important which
is known as the primacy effect. Recency effect, on the other hand, is that human
beings remember latest events more than the less recent ones.
o Stereotyping: It is the effect caused by forming a certain belief about a category
of stimuli and generalizing that notion to encounters with each member of that
category. In reality, there is a difference between the perceived notion of each
category and the actual traits of the members. It may affect the interview process
in an organization.
o Halo effect: It is the process of generalizing from a comprehensive analysis to a
single attribute or trait. A negative halo effect is known as the reverse halo effect.
It affects the performance appraisal of employees in a company.
o Projection: It is a psychological defence mechanism which makes a person
compare his negative traits with other people and conclude that they are better off
than others. Perceptual checking minimizes the negative effects of projection.
o Selective Perception: This means a person sees, feels or hears what he wants to
and skips other information which are inconsistent to his view.
o Expectancy effect: It is the tendency of an individual to interpret any person or
object based on how he expects the person or object to be in the first place. It is
also called as Pygmalion effect.

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION KVSMBA

 7

IMPORTANCE OF PERCEPTION

A. Helps in understanding
human Behaviors

B. assist in handling
subordinates effectively

C. helps in fore casting

A.HELPS IN UNDERSTANDING HUMAN BEHAVIOURS:

Every individual observes the world in a different way and clears with the problems
differently. If a person purchase fruits from a particular vendor it’s not due to the fact that
vendor is selling the best fruits in the whole market. People’s behavior is based on their
perceptions.

B.ASSIST INHANDLING SUBORDINATES EFFECTIVELY:

Perception is very important for managers who want to avoid making errors when
dealing with peoples and events in the work setting. In order to clear with the subordinates
effectively, the managersmust understand their perceptions property.

C.HELPS IN FORECASTING BEHAVIOURS:

Different individuals behave differently when facing the same situation as they view
the same situation differently. A person’s behavior can be predicted by understanding his
current situation and currentperception about the environment.

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION KVSMBA

 8

3. LEARNING:

Human resources play a critical role in implementing organizational strategies &

need different kinds of employee behavior. Employees change their behaviors by learning
new competencies, knowledge beliefs and values. Learning is a relatively permanent
change is knowledge or observable behavior that results from practice or experience. This
learning influences the individuals to change their knowledge or wisdom and / or
observable behavior. Learning takes place through education, training, management
development programmes, self-observation etc. Various organizations provides job
training to prepare the candidates for jobs. Individuals learn by observing others while
performing various activities. Similarly individuals learn through converting the ideas,
imaginations and assumptions into practice as well as through various research activities.

LEARNING PRINCIPLES:

The principles of learning development by Sikula are as follows,

a. All human being can learn
b. Learning is active and not passive
c. Time must be provided to practice learning.
d. Learns may acquire knowledge more rapidly with guidance.
e. Learning is based on past experience.
f. Appropriate material (like case studies, tools, problem etc) should be provided is
essential to effective learning.
g. Learners need reinforcement of correct behaviors.
h. Learning is a cumulative process.
i. The rate of learning decreases when complex skills are involved.
j. Standards of performance should be set for the learner.
k. The learner must secure from learning.
l. Learning is closely related to attention and concentration, learning requires
motivation.
m. Learning should be goal-oriented. Learning involves long-run retention and
immediate equation of knowledge.
n. Early success increase chances for effective learning. Continues evaluation is
essential to effective learning.

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION KVSMBA

 9

CHARACTERISTICS OF LEARNING:
1. Learning is a Continuous Process:
After birth, the child acquires skill from experiences obtained from the environment.
Hence, leaning goes on throughout life. Learning can be formal or informal and it may be
direct or indirect. When a learner learns he develops, knowledge, skills, habits, attitudes,
and aptitudes.
2. Learning is Change in behavior:
The result of the Learning process can be measured as behavioral changes. This
change can be in any form. It can be desirable or undesirable. But in desirable form, i.e.
these changes should occur in a positive direction. Learning includes all three aspects of
human behavior. So, it includes cognitive, affective and cognitive aspects of mental
process.
3. Learning is a universal process:
Learning is a universal process. It can happen everywhere. Learning is a process for all
living creatures. Human being across all cultures learns as it is a lifelong process.
4. Learning is Purposive and Goal-oriented:
Learning is always has a purpose. It is goal-oriented in the sense that the teacher always
has learning objectives in mind while teaching. If we don’t have any aim and goal, then the
process of learning will not show any effect. Through the process of learning, we can move
towards pre-determined learning objectives. As the learner learn, he/she move towards a
pre-determined goal.
5. Learning is the Organisation of Experiences:
The basis of learning is the acquisition of new experiences. Behaviors of learners
change as a result of new experiences. New learning experiences evolve as a result of past
experiences acquired by the learner.
6. Learning is the Fundamental process of Life:
Without learning the progress of a person is not possible. It acts as the basis for the
progress of society and civilization.
7. Learning is the Relationship between stimulus and Response:
Learning is generally, a relationship between stimulus and response. A person is considered
as a learned-person if he reacts according to the task to be learned. Through learning, a
person learns reactions according to the stimuli associated with the environment and other
aspects of life.

8. Learning is transferable:
The learning acquired in one situation is capable of transfer to some other situation.
The knowledge acquired in one situation proves helpful in acquiring knowledge in other
situation. This is known as the transfer of learning. The learner should be careful not to let
previously gained knowledge interfere in acquiring new knowledge and experiences.

UNIT-III INDIVIDUAL BEHAVIOUR &MOTIVATION KVSMBA

 1
LEARNING PROCESS:

Learning is a continuous process. There are many different

learning types and approaches to learning. To learn effectively it is important
to tailor your study habits to your own needs and style, this often means
choosing techniques that help you learn. When we first become aware of
what we’re not good at—for example, managing our finances if we’re in
debt, playing an instrument if we never have, or working with our repressed
emotions—it tends to bring up feelings of weakness and inadequacy.

It follows the following steps in sequence as shown below:

1. Stimulus
Stimulus refers those factors that motivate or inspire or induce learners to
learn the required skills and knowledge. The factors that affect the learning process
must be understood by the learner. Then only they can motivate themselves to learn.
Stimulus exists in the environment in which the person lives and behaves.
2. Response
It means the amount of interaction by the learners. Response emphasizes that
there should be a positive response from the learners with regard to learning process
and program. Because the regular and timely response provides an opportunity to

determine the level of teaching. This also helps to explore to what extent learners are
improving.

3. Motivation
Stimulus and response are not enough for an effective learning process, rather

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the learners must be motivated to impart required skills and knowledge fro the
training. Hence, an effective motivation package consisting of rewards and prizes
should be provided to the learners to motivate them.
4. Reward
It is an incentive which satisfies the learner from learning. If a motivated
learner is rewarded, he/she will be inspired by the further performance. Reward
further stimulates the learners.
Therefore, the effective learning process will be completed only after the
integration of different steps of learning stimulus, response, motivation, and reward.
Then the only learner can learn effectively. As a result, the desired output can be
obtained.

UNIT III:

External Questions: (Old Question papers)

1. What do you mean by learning? Discuss the elements which form the part of
learning process?
2. Define the term organizational behavior. Explain the features of organizational
behavior?
3. What is individual behavior? What are the factors that affect on individual behavior?

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UNIT-III
INDIVIDUAL BEHAVIOUR & MOTIVATION

4. PERSONALITY

INTRODUCTION ABOUT PERSONALITY:

The word personality is derived from a Greek word “persona” which means “to
speak through.” Personality is the combination of characteristics or qualities that forms a
person’s unique identity. It signifies the role which a person plays in public. Personality is
the collection of all possible ways in which an individual reacts and communicate with
others. Personality is an important factor influencing an employee’s behavior. People’s
personality plays an important role in determining their Success .It drives individuals to
think consistently, feel, and behave in specific ways. These patterns strongly influence
personal expectations, perceptions, values, and attitudes.
Personality can be defined as those inner psychological characteristics that both
determine and reflect how a person think and act in an environment.
The inner characteristics of personality are specific qualities, attributes, traits,
factors and mannerism that distinguish one individual from other individuals. Personalities
are likely to influence the individual’s product and store choices. They also affect the way
consumer responds to a firm’s communication efforts.

The personal quality is well known as personality

DEFINITION OF PERSONALITY
“Personality means how a person affects other and how he understands and views
himself as well as the patterns of inner and outer measurable traits and the situation
interaction”.

-FRED LUTHANS
“The dynamic organisation within the individual of those psychophysical systems that
determine his unique adjustments to his environment”

-GORDON ALLPORT

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PERSONALITY IN ORGANISATIONAL BEHAVIOR (OB):

Personality in Organisational Behaviour of an individual plays an extremely
important role in assessing the behaviour of a person at an organization.
In case an individual who is holding a senior position in an organization has a
wrong type of personality, it may lead to a very bad impact on the relationship and
ultimately it may lead to protests and unrest at the workplace.

DETERMINANTS OF PERSONALITY:
The determinants of personality can be grouped in five broad categories:

1. BIOLOGICAL FACTORS
The study of the biological contributions to personality may be studied under three
heads:
a) HEREDITY:
Heredity refers to those factors that were determined at conception. Physical stature,
facial attractiveness, sex, temperament, muscle composition and reflexes, energy level,
and biological rhythms are characteristics that are considered to be inherent from one’s
parents.
The heredity approach argues that the ultimate explanation of an individual’s
personality is the molecular structure of the genes, located in Brain.
b) CONCENTRATE ON THE ROLE:
The second biological approach is to concentrate on the role that the brain plays in
personality. The psychologists are unable to prove empirically the contribution of the
human brain in influencing personality.

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c) PHYSICAL FEATURES:
A vital ingredient of the personality, an individual’s external appearance, is biologically
determined. The fact that a person is tall or short, fat or skinny, black or white will
influence the person’s effect on others and this in turn, will affect the self-concept.

PERSONALITY TYPES:

1.EXTROVERSION 2.INTRAVERSION 3. AGREEABLE NESS

4.OPEN TO
EXPERIANCE

1. EXTROVERSION:
People get the energy from their preferences of extroversion or introversion.
Extroversion- as a behavior where someone enjoys being around people more than being
alone Extroverts are assertive sociable talkative etc. they prefer relationships over quality
and quality of output. Extroverts at workplace prefer variety and they don’t mind the
interruption of work place by people.
2. INTRAVERSION:
Someone who is shy quiet and prefers to spend time alone. Extroversion type people
develop and maintain wide range of social network while the introversion type people
narrow down their relationships to a few people.
3. AGREEABLE NESS:
Agreeableness is a personality trait which teaches individuals to be adjusting in almost
all situations. They accommodate themselves to all situations and are friendly and kind
hearted. People who score high on agreeableness are ready to help others and flash their
trillion dollar smile whenever a problem arises. Individuals who score low on
agreeableness on the other hand find difficulties in adjusting with others and are little
unfriendly.

4. OPENESS TO EXPERIENCE:
Executives are expected to be open to new job experiences learn absurd and integrate
them with previous experiences and knowledge.

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5. JOHARI WINDOW:
The Johari Window model was devised by American psychologists Joseph Luft and
Harry Ingham in 1955, while researching group dynamics at the University of California
Los Angeles. The model was first published in the Proceedings of the Western Training
Laboratory in Group Development by UCLA Extension Office in 1955, and was later
expanded by JosephLuft. This concept is particularly helpful to understanding
employees/employer relationships with the psychological concept.
The JOHARI WINDOW model can also be used to assess and improved a group’s
relationship with other groups. It is used in both a self-help context, group setting and in
the corporate environment to improve individual and team performance. The Johari
Window soon became a widely used model for understanding and training self-
awareness, personal development,
Improving communications, interpersonal relationships, group dynamics, team
development and intergroup relationships.

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1. OPEN/FREE AREA:
Here the information about the person his attitudes, behavior, emotions, feelings, skills
and views will be known by the person as well as by others. This is mainly the area where all
the communications occur and the arena becomes the more effectual and dynamic the
relationship. The open self is characterized as a state where in the individual is open and
straight forward to him and others also.

2. BLIND AREA:

The blind self shows the state of an individual known to others but not known to
him. Johari region 2 is what is known about a person by others in the group, but is unknown
by the person him/herself. Information about yourselves that others know in a group but you
will be unaware of it. We all know how difficult it is to work well when kept in the dark.

3. HIDDEN SELF:
This quadrant of the JOHARI WINDOW shows the state of an individual known to
him but not known to the others. This is generally seen in the individual who are introvert
and do not like to share their private lives with anyone. The individual keeps his feelings,
ideas thought to himself and do not disclose it in front of the others. Information that is
known to you but will be kept unknown from others. This can be any personal information
which you feel reluctant to reveal. This includes feelings, past experiences,
fears, secrets etc.
4. UNKNOWN SELF: The Information which are unaware to yourselves as well as others.
This includes the information, feelings, capabilities, talents etc. The person will be unaware
till he discovers his hidden qualities and capabilities or through observation of others. Open
communication is also an effective way to decrease the unknown area and thus to
communicate effectively. Open communication is also an effective way to decrease the
unknown area and thus to communicate effectively.

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Example:
Linda got a job in an organization. Her co-workers knew a little about her and in this
contextthe unknown and hidden areas will be larger and the open area will be small. As the
others don’t know much about her the blind spot also will be smaller. Linda spent most of

her free time sketching in the office which was her preferred pastime and her co-workers
found her very shy and elusive. With that evaluation she got the idea how she was and tried
to be more talkative and interacted more with other co-workers. This helped her to increase
her open area and thus making the hidden and unknown areas smaller. Through the
feedback Linda got from her co-workers she could perform well in the office and her real
capacity could be obtained as a result of an effective interaction among the colleagues.

6. TRANSACTIONAL ANALYSIS:
Transactional analysis is theory of personality and human interactions.
Transactional analysisproposed by the originator Dr. ERIC BERNERNE,.
Transactional analysis is a technique used to help people better understand their own
and others behavior especially in interpersonal relationship. Transactional Analysis is
a method to improve communication.
The theory outlines how we have developed and treat ourselves, how we relate and
communicate with others, and offers suggestions and interventions which will enable
us to change and grow. The ego plays an important role in human behavior.
According to T.A. theory there are three persons within all the people. These are –
Parent, Adult and child. These are technically known as ego states. An ego state
denotes the habitual way of thinking, feeling and reacting. Although we cannot
directly observe these ego states, we can observe the behaviour and conclude the
ego state from which it is arising.

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The three ego states are

EGO STATES

Parent adult child

A.PARENT:
The parent ego states includes the attitudes and behaviors of all those people who
are emotionally significant and act as parent. The parent represents a massive collection
of recordings in the brain of external events experienced or perceived in approximately
the first 5 years of life. These people tend to talk and treat others like children.
Functionally, it sets limits, gives advice, discipline, protects and nurtures, teachers how-
to, keeps traditions and makes rules and regulations about how life should be : (the do’s,
don’ts, always, never, should’s, shouldn’t, cant’s, good, bad etc.)

The characteristics of a person with parent ego state are:

• Judgmental.
• Rule maker, Moralizing.
• Over protective.
• Indispensable.

Examples Of Recording In The Parent/ Critical Parent Ego State Is Expressed Such As:
Never talk to strangers.
Always chew with your mouth closed.
Look both ways before you cross the street.
“Nobody can leave until this report is finished”.
“You should exercise every morning” .
“You don’t fight with your boss”.
B.ADULT: The adult ego state behavior is rational, problem-solving and decision- making.
It is the non feeling part of the personality. Functionally This Stage gathers the data from
the parent, adult and child, For eg. How the child feels and what he wants; what the
parent says, feels and how he reacts; what the adult has to say based on the past
decisions;

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It is expressed through statements such as:

✓ “Has all the information been gathered?”

✓ “The breeding criteria have to be set based on consumer preference” .
✓ “What is the total rainfall in the area?”
✓ The basic vocabulary of the Adult consists of why, what, where, when and how.

C.CHILD:
what you were when you were very young. There are many children inside us from the
past. They are known collect ively as the child. These children have the same feeling and
ways of behaving you had when you were little. The child ego state is associated with
behaviors that are evoked when a person is coming from an emotional base. The child
ego state reflects life as it is felt. The child ego state in the center of feelings and energy,
the source of our creativity, curiosity and intuition and site of our early experiences

7. MOTIVATION:

Every human action is the result of a read or desire. Motivation is defined as an urge in an
individual to perform goal directed behavior. Therefore, motivation cannot be inflicted from
outside but it is an intrinsic desire in a person to achieve the target goal through performance
or activity. Motivation is the reason for people's actions, willingness and goals
An individual's motivation may be inspired by others or events (extrinsic motivation) or it
may come from within the individual (intrinsic motivation). Motivation has been considered
as one of the most important reasons that inspire a person to move forward.

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8. CONCEPT OF MOTIVATION:

Motivation is derived from the word “motive”. A motive is an inner state that energies
activities or moves and directs behavior towards goals. Motivation can be positive or
negative goals form a part of the motivational process. Goal achievement results in the
satisfaction of want. Motivation is basically internal to a person and it varies from person to
person. It is going on process. Positive motivation is based on incentives or rewards and
negative motivation is based on penalties, fear etc. Motivation is the force which energizes
human behaviors.

NEED DRIVE GOALS/INCENTIVES

(Deficiency) (Deficiency with direction) (Reduction of drives & fulfils deficiencies)

NEED: need is Deficiency ,needs are created whenever there is a physiological or

psychological imbalance.
DRIVE: drive is a deficiency with direction. They are action oriented and provide an
emerging trust towards goal accomplishment.

INCENTIVES: incentives are anything that will alleviate a need to reduce a drive.

SIGNIFICANCE OF MOTIVATION:
Motivation identifies employee potentialities and makes the employees to know his
potentialities. Motivation results in exploring potentialities, development of skills,
knowledge and abilities. It concerts the potentialities into performance. Motivated
employees explore the alternative methods of performing a task and they select a better
method than the existing method. Motivated employees use their innovative and creative
skills, talents etc.

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CHARACTERISTICS OF MOTIVATION:
1. Motivation is Personal and Psychological Concept:
Motivation is a personal as well as a psychological concept; hence, the managers have
to study the mental and psychological aspects of the individual. Motivating factors are
always unconscious but they are to be aroused by managerial action.
2. Motivation is a Process:
Motivation is a process of inspiring, energizing, reducing and activating the employees
to a higher level of performance. This process starts with unsatisfied needs, moves
through tension, drives and goal achievement, finally, it ends with the reduction of
tension aroused by unsatisfied needs.
3. Motivation is a Continuous Process:
Motivation is a continuous on-going process rather than one shot affair. Because an
individual has unlimited wants and needs. Motivation is an unending process. Wants are
innumerable and cannot be satisfied at one time. As satisfaction of needs is an unending
process, so the process of motivation is also unending. As soon as the existing need is
fulfilled, another will appear. Hence, motivation should go continuously.
4. Motivation is a Complex Subject:
Motivation is a complex subject in the sense that the individual’s needs and wants may
be unpredictable. The level of need of a person depends on his/her psychological and
physiological aspects.
5. Motivation is Goal Oriented:
Motivation should be directed towards the achievement of stated goals and objectives.
Motivation causes goal-directed behavior, feeling of need by the person causes him to
behave in such a way that he tries to satisfy himself. From the viewpoint of the
organization, the goal is to achieve high productivity through better job performance.

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Significance of motivation

Increase in productivity human resource optimum utilization basis for co-

Development of other resource operation

A. INCREASE IN PRODUCTIVITY: Motivated workless exert at all their energies

towards the job. This would in turn result in increase the employee efficiency and there by
productivity. The committed employees do the work in a better way and also reduce the
wastage which in turn contributes to higher productivity.
B. HUMAN RESOURCE DEVELOPMENT: Motivated employees behave positively
maintain sound human relations congenial(pleasant and friendly) superior& subordinate
results. Thepresent day high technology and software industries depend upon highly self
motivated employees.
C. OPTIMUM UTILIZATION OF OTHER RESOURCES :All other resource without
human resource can produce nothing. The motivated human resources utilize all other
resources tothe optimum extent &maximize productivity.

D. BASIS FOR CO-OPERATION : Motivation makes the people understand each other
completely leads to group work and team spirit.

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9. MOTIVATIONAL THEORIES:
MASLOW’S THEORY:
The most popular and important content theories of motivation are the MASLOW’S
theory. MASLOW’S theory is based on the hierarchy of five human needs. Maslow a
humanistic psychologist. Maslow set up a hierarchical theory of needs in which all the
basic needs are at the bottom and the needs concerned with man’s highest potential are the
top. Maslow’s need hierarchy theory has received wide recognition, particularly among
practicing managers.

i. PHYSIOLOGICAL NEEDS:
These are basic necessities of human life food, water, shelter& sleep etc. Maslow
says that until these needs are satisfied to the required level man does not aim for the
satisfaction of the next higher level needs. In the organization context needs are
represented by employees concern for salary and basic working conditions. It isthe duty of
managers to ensure that these needs of the employees are met, so that they can be
motivated to strive for gratification of higher order needs.

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ii. SECURITY OR SAFETY NEEDS :

These refer to the need to be free of physical danger or the feeling of loss of food
job shelter. Security needs spring up the moment makes and effort in the direction of
providing himself the source of continuity of physiological needs. Security needs in the
organizational context correlate to such factors as job security, safe working conditions,
unionization for protective legislation. Managerial practices to satisfy the safety needs of
employee include pension scheme group, insurance provident fund etc.

iii SOCIAL OR ACCEPTANCE NEEDS:

These social needs begin occupying the mind of a man. An individual motivated on
this level longs for affectionate relationship with others namely for a place in his or her
family and reference group. In organizational context social needs represents the need for a
compatible work group peer acceptance friendly supervision etc. Managers do well to
encourage informal groups besides supervision needs to be effective and friendly behavior
with sub ordinates pays.

iv. SELF-ESTEEM NEEDS :

These needs are power prestige status and self confidence. Every man has a feeling of
importance and he wants other to regard him highly. These needs more people aim high
and make them achieve something great. Those needs for employees include status symbol
awards, promotions titles etc.

v. SELF-ACTUALIZATION NEEDS :

This is the highest needs in the hierarchy. Man tries to maximize his potential and
accomplish something when this need is activated in him. By being aware of the self
actualization needs of subordinates mangers can use a variety of approaches to enable
subordinates to achieve personal as well as organization goals.
Merits of Maslow’s Theory of Motivation:
(i) Maslow’s theory of motivation helps the managers in understanding how to
UNIT-III. INDIVIDUAL
motivateBEHAVIOUR & MOTIVATION | KVSMBA
the employers.
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(ii) Maslow’s theory of motivation theory is very simple, common and easily
understandable.
(iii) It accounts for both inter-personal and intra-personal variations in human
behaviour.
(iv) Maslow’s theory of motivation theory is dynamic because it presents
motivation as a changing force; changing from one level of needs to the other.

Criticisms of Maslow’s Theory of Motivation:

i. lack of hierarchical structure of needs
ii. Lack of direct cause and effect relationship between need and behaviour.
One particular need may cause different type of behaviour in different
persons.
iii. Need and satisfaction of needs is a psychological feeling. Sometimes
even the person may not be aware about his own needs.

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10.HERZBERG’S TWO FACTOR THEORY:

HERBERG constructed a two dimensional paradigm of factors affecting peoples
attitude about work. According to the theory the absence of hygiene factors can create job
dissatisfaction but their presence does not motivate or create satisfaction. Herzberg’s theory
is also called motivation hygiene theory. According to Herzberg, today’s motivators are
tomorrow’s hygiene, Accordingly, one’s hygiene may be the motivator of another.

Hygiene factors motivational factors

Pay recognition
Company policies promotional opportunities
Fringe benefits responsibilities
Status achievement

Interpersonal relations

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HYGIENE FACTORS:

These factors are those motivating factors whose presence motivates the employees
at the work place but for a limited period only. These factors play a very important role in
creating a healthy work environment which ultimately fulfils the physiological needs of
the employees.

SOME OF HE HYGIENE FACTORS LIKE

i. PAY: The salary structure of the employees should be set according to the market
value. Salary paid to the employees working at safe position in different organizations
should remain same.

ii. COMPANY POLICIES : The policies set by the company should be flexible
unbiased and transparent in nature. Rigidity in working hours, leaves, dress code,
breaks, vacation, etc can make the working environment un-comfortable for the
employees.

iii. FRIENGE BENEFITS: The employees should be offered health care plans (medi
claim), benefits for the family members, employee help programmes, etc. Fringe
benefits in the form of medical claim benefit plays for familyassistance employees to a
greater extent.

iv. STATUS: The employees should be given proper respect in the organization. They
should have a well known status within the organization which must be retained by the
firm.

v. INTERPERSONALRELATIONS:

The relationship between the employee and hiscolleagues his superiors and juniors
should be healthy and understandable.

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vi.
PHYSICAL WORKING CONDITIONS:
The working conditions should be safe, clean and hygienic. The work equipments
should be updated and well-maintained.
B.MOTIVATIONAL FACTORS:
These factors are associated with positive feelings of employees about the job.
Motivational factors are necessary to keep job satisfaction and job performance high.
i. RECOGNITION :
Managers should motivate the employees by praising and appreciating them for
their hard work and good performance.
ii. PROMOTIONAL OPPORTUNITIES :
Another way by which an organization can motivate its employees is by
providing them with numerous opportunities for their advancement that can help them in
their career growth.
iii. RESPONSIBILITY:
Employees should be made responsible for their performance and must be
provided with job ownership.
iv. ACHIEVEMENT :
While performing any job employee’s must develop a sense ofachievement. They
must realize that their hard work will be rewarded at the end of the day. For this managers
can use some sort of rewards to motivate the employees.
Limitations of Two-Factor Theory
The two factor theory is not free from limitations:
1. The two-factor theory overlooks situational variables.
2. Herzberg assumed a correlation between satisfaction and productivity. But the
research conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The
raters may spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his
job acceptable despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at work.
They will blame dissatisfaction on the external factors such as salary structure, company
policies and peer relationship. Also, the employees will give credit to themselves for the
satisfaction factor at work.
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6. The theory ignores blue-collar workers.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon
guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction.
Also, the managers must make sure that the work is stimulating and rewarding so
that the employees are motivated to work and perform harder and better. This theory
emphasize upon job-enrichment so as to motivate the employees. The job must
utilize the employee’s skills and competencies to the maximum. Focusing on the
motivational factors can improve work-quality.

6. DAVID ME CLELLAND THEORY:

It was in the late 1940’s that DAVID C. MC CLETLLAND and his friends began to
study 3 needs that motivate human behavior power affiliation and achievement.MC
CLELLAND believes that each person has a need for all the three.

THE THEORY FOCUS ON THREE NEEDS LIKE

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A.NEED FOR ACHIEVEMENT :

Employees with a high need for achievement derive satisfaction from achieving
goals. MC CLELLAND and his associates have made specific suggestions for developing
a high achievement need. Give employee periodic feedback on performance. This will
provide information that will enable them to modify or to correct their performance.
Provide good models of achievement employees who are “heroes” should be available for
others to emulate. Avoid tasks that are either extremely difficult or extremely easy.

McClelland identified the following three characteristics of high-need achievers:

➢ High-need achievers have a strong desire to assume personal responsibility for

performing a task for finding a solution to a problem.
➢ High-need achievers have a strong desire for performance feedback.

B.NEED FOR POWER:

The employee exhibiting the needs for power derives satisfaction from the ability to
control others. Individuals with a high need for power derive satisfaction from being in
position of influence and control. Organizations that foster power motive tend to attract
individuals with a high need for power (for ex: military and political organizations). People
with high order need for power prefer to be placed in competitive and status oriented
situation.
People who have a high need for power are characterized by:
1. A desire to influence and direct somebody else.
2. A desire to exercise control over others.
3. A concern for maintaining leader-follower relations.

C.NEED FOR AFFILIATION:

Need for affiliation refer to the desire for friendly and close interpersonal relationship.
The new employees who come from various places, organizations, educational and social
back grounds
UNIT-III. normally have the need for affiliation. They
INDIVIDUAL BEHAVIOUR & MOTIVATION | KVSMBA
possess senility towards others
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there is a need to form strong interpersonal ties and toget close to people psychologically.
The people with high need for affiliation have these characteristics:
1. They have a strong desire for acceptance and approval from others.
2. They tend to conform to the wishes of those people whose friendship and
companionship they value.
3. They value the feelings of others.

11. PORTER AND LAWLER MODEL:

This theory deals with effort performance rewards and satisfaction. LYMAN
PORTER & EDWAR LAWLER, two OB researchers developed on expectancy model
of motivation that stretches beyond vroom’s work.
This model attempted to

Identify the source of people valences and extensities and Link effort with
performance and job satisfaction

According to performance is a function of three important factors like

• If an employee wants to perform the must be motivated.
• Motivation alone does not ensure performance and hence a person must have the
necessary abilities and skills as well.
• An employee must have an accurate knowledge of the requirements of the job.

FOLLOWING ARE THE KEY VARIABLES IN THIS MODEL

Effort performance reward satisfaction

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A.EFFORT:
Effort does not directly lead to specific level of performance. Effort is only theamount
of energy exerted by an individual to achieve specific task. It is only the result of
attractiveness of the reward and how he perceives a relation between effort and pay off.
B.PERFORMANCE:
Effort alone is not enough as performance results only when the effort is continued
with ability. Effort and performance cannot be taken to the same.

C.REWARD:
A person gets intrinsic reward himself by performance a task well. Intrinsic reward
will be a feeling of accomplishment. Extrinsic rewards like pay promotion and status
offered by the organization.

D.SATISFACTION:
The satisfaction depends on the perceived rewards and the actual rewards. If an
individual fells that he should have received more for what he had done it results in
dissatisfaction and vice versa. Thus motivation and achievement result in satisfaction and
dissatisfaction of an employee about the job, organization etc.

Significance of the Porter and Lawler Model:

1. Match the abilities and traits of individuals to the requirements of the job by putting
the right person on the right job.
2. He should carefully explain to the subordinates their roles or what they must do to
be rewarded. Then he must make sure that they understand it.
3. Prescribe in concrete terms the actual performance levels expected of the
individuals and these levels should be made attainable.
4. To achieve and maintain motivation, the appropriate reward must be associated with
successful performance.
5. Make sure that the rewards dispensed are valued by the employees. Thus, he should
find out what rewards are attractive to the employee and see if such rewards can be
given to him.

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UNIT-III

1. What is individual behavior? What are the factors that affect on individual
behavior?
2. Compare and contrast Maslow’s theory of motivation and Herzberg twofactor
theory of motivation?
3. What is meant by transactional analysis? What is its importance in
understanding people in organization?
4. What is meant by motivation? Explain any two theories of motivations whichare
applicable to present organizations?
5. What is Johari window? Discuss the stages of personality development?
6. Define motivation. Explain Herzberg motivational theory?

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 UNIT-4
GROUP BEHAVIOUR AND LEADERSHIP

1. BENEFITS OF GROUPS:
INRODUCTION ABOUT GROUPS:
A group is collection of individuals who have mutually dependent
relationship. A group is an important subsystem in any organization. Group is
combination of two or more people formed with a purpose of achieving their common
and shared goals through their interactive effort. Working in groups is not always a
pleasant job. Members should have more good listening skills, patience and participate
in task related discussions. Group members should have an understanding of each
other’s strengths and weakness. Group roles should be clearly determined and assigned.
Group decisions should be based on conscious and agreement.

CHARACTERISTICS OF GROUPS:

• Size: To form a group, it must be having at least two members. Practically, the number
of group members ranges from 15 to 20. The more the members in the group, the more
complex it is to manage.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

• Goals: Every group has certain goals that are the reasons for its existence.
• Norms: A group has certain rules, for interacting with the group members.
• Structure: It has a structure, based on the roles and positions held by the members.
• Roles: Every member of a group has certain roles and responsibilities, which are
assigned, by the group leader.
• Interaction: The interaction between the group members can occur in several ways, i.e.
face to face, telephonic, in writing or in any other manner.
• Collective Identity: A group is an aggregation of individuals, which are separately
called as members, and collectively called as a group.
BENEFITS OF GROUPS:
Working in groups can be challenging when you have different personalities in
the team, but the collaborative work also provides benefits to the company and
individual employees. The staff members may need practice and training in working as a
team for those benefits to become apparent.

1.shared experince 3.Fact checking

& knowledge 2.Idea generation

6.Encourage healthy
4.support 5.Build trust risk-taking

1. Shared Experience and Knowledge:

Each employee comes to a company with a certain set of relevant skills and
knowledge. Some of those experience areas overlap while others are distinct to one or
two employees. When your group of employees is working for projects, everyone gets
the advantage of shared knowledge and experience. That pooled work experience makes
it easier to tackle a difficult project with different facets. If an employee works
individually on a project, he might struggle with some aspects of it because of limited
experience. In a group, who can draw on the expertise of his colleagues and potentially

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

expand his own knowledge.

2. Idea Generation :
The team should have good environment to discuss the project. This leads to
more ideas being generated. The discussion may encourage greater creativity and push
the members to think of new ideas. Discussing the project may also be better for finding
solutions to problems. Employees may discover new ways to approach a particular task
that is more effective.

3. Fact Checking :
Individual projects rely on one employee to get the facts without any mistakes.
When all team members are actively engaged in the project, they are more likely to
catch a mistake before it turns into a major problem.

4. Support :
With The sense of security and support, a team may encourages to employeestotake
more risks. Where an employee may be conservative when working on an individual
project, Individual may find encouragement and inspiration from team members to push
himself/herself further. Working individually sometimes creates a sense of isolation and
makes employees feel as if they have no one else behind them. The support of the team
environment helps some employees increase productivity and become more motivated
at work.

5. Builds Trust :
An effective team enjoys working together and shares a strong bond. When you
put your trust in a co- worker, you are establishing the foundation of a relationship that
can endure minor conflicts. It helps employees open up and encourage each other. Open
communication is key when working on a team and produces effective solutions in
difficult group projects. Without trust, a team crumbles and cannot succeed on assigned
projects. Great teams build each other up and strengthen individual members to create a
cohesive group. By working together, employees learn that wins and loss.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

 6. Encourages Healthy Risk-Taking :
If the project fails when working solo, that employee takes the full blunt of the
blame. Working as a team allows team members to take more risks, as they have the
support of the entire group to fall back on in case of failure.

2. TYPES OF GROUPS:

I. FORMAL GROUP: When two or more individuals join together a group due to the
official structure and job relationship in an organization such a group is called “formal
group”. Group of production manager, materials manager, and quality control manager
of a company.
CONTRIBUTIONS OF FORMAL GROUPS
CONTRIBUTIONS TO ORGANISATIONS:
A. Create new ideas implement action plans
B. Co-ordinate interdepartmental efforts
C. Solve complex problems requiring varied information and perspectives
D. Socialize and train new common.

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CONTRIBUTIONS OF FORMAL GROUPS
CONTRIBUTIONS TO ORGANISATIONS:
A. Create new ideas implement action plans
B. Co-ordinate interdepartmental efforts
C. Solve complex problems requiring varied information and perspectives
D. Socialize and train new common.

CONTRIBUTIONS TO INDIVIDUALS
i. Satisfy needs for affiliation
ii. Confirm identify and enhance self esteem
iii. Reduce feelings of insecurity and powerlessness
iv. Provide a mechanism for solving personal and interpersonal problem.

INFORMAL GROUPS:
Informal groups are natural formations in the work environment which appear in
response to the need for social contract. They may also develop across or outside of
formal groups whatever the way of formation. Informal groups obviously do not posses
formal structures. Informal groups are formed out of the common interests, aptitudes,

values, opinions of the people.

CONTRIBUTION TO ORGANISATION

1. Help integrate new employees into the formal expectations of the organizations.
2. Provide social satisfaction unlikely for anonymous individual workers to experience.
3. Enhance member’s access to information.
4.CONTRIBUTION
Provide and enforce guideline for appropriate behavior.
TO INDIVIDUALS
i. Satisfaction of social and affliction needs & Satisfaction of needs for security and
support.
ii. Enhance feelings of self esteem if members are valued by other group members.

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III. TASK GROUP :

To accomplish a particular task form a task group. Task group boundaries are not
limited to the particular department, but they may spread throughout the organization
and sometimes spread even beyond the organization. The employees belong todifferent
department.

IV. FRIENDSHIP GROUP:

These groups form with common characteristics. These common characteristics

include hard working, avoiding work, smart working, risk taking etc. Enlightened (showing
understanding, acting in a positive way, ) managers maintain good relations with
friendship groups because these groups have tremendous influence on their members,
that managers would prefer to have directed towards organizational goals.

V. REFERENCE GROUP:

Reference groups are the bases for many interest and friendship groups.
Reference groups are based on such factors as race, gender, policies, religion social
class etc. It provides values for individual on which to base personal decisions.

VI. INTEREST GROUP:

People with common interests like maintenance and developing Working conditions
recreational facilities providing employees services etc form the interest group.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

3. GROUP FORMATION AND DEVELOPMENT:

BRUCE TUCKMAN has developed five stages model of group process.

STAGE-1 FORMING:
Members are concerned about exploring friendship and task potentials. They do
not have strategies for addressing the group’s task. Members observe others various
events and issues and decide what type of behavior is acceptable. As awareness increases
this stage of group development is completed, Once members cross this stage they are
clear of the hierarchy and relationships.

STAGE -2 STROMING :
Storming stage is characterized by conflict and confrontation among the group
members due to confusion over relationship purpose and direction. One objective of this
stage is to resolve the conflict about power and task structure. During this stage members
accept the group but there would be conflict over the leadership objectives as well as
relationship.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

STAGE -3 NORMING:

There is now a strong ease of group identity and camaraderie (mutual trust and
friendship among people who spend a lot of time together.)Members formulate common
goals and expectations of the group. Desired outcomes for this stage of group
development are increased.

STAGE-4 PERFORMING:

Group members during this stage exert all their energies towards functioning and
performing the tasks in order to attain the group goals. They share their ideas, skills,
knowledge and competence in order to excel in the organizational activities forgetting
their individual preferences and differences. Permanent groups continue to work as
achieving organizational objectives is never ending task until the organizations exist.

STAGE -5 ADJOURNING:
Temporary groups like committees, task forces, commissions and teams reach this
stage after completing their task which is purely a temporary setup. The leader can
facilitate positive closure of this stage by recognizing and rewarding group performance.

4. ORGANISATIONAL CULTURE:

Organizational culture is a system of shared meaning held by members that

distinguishes an organization from other organization. Organizational culture is the set of
values that helps the organizations employees understand which actions are considered
and which are acceptable. Basically organizational culture is the personality of the
organization. Organization culture is the Collection of relatively uniform and enduring
values, beliefs, customers and practices that are uniquely shared by an organization’s
members and which are transmitted from one generation of employees to the next.

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 DEFINITION OF ORGANISATION CULTURE:
“Organization cultural refers to a system of shared meaning held by
members thatdistinguishes the organization from other organization”.
-ROBBINS
CHARACTERISTICS OF ORGANIZATIONAL CULTURE:

1. Viability
Viability is all about financial stability, meaning that companies need to be financially
stable in order to:
• Survive
• Compete
• Grow their client base
• Pay their bills and employees

2. Relationships
Most companies want their employees to get along. As a result, they support open
communication, employee and customer satisfaction, and friendship among team
members. Of course, some companies get it wrong, which we’ll cover later.

3. Performance
This level focuses on achievement. For example, pride in performance and quality of
products or services. At this level, companies want to make their mark and employees
want to be a part of it.

4. Evolution
Today, technology is constantly evolving. As a result, the way people do things now
could change by tomorrow. At this level, companies are continuously adapting, learning,
and training employees.

5. Alignment
This characteristic takes building harmonious relationships to the next level. Above
all, this characteristic focuses on building an internal community that’s passionate about
what they do and open with one another.

6. Collaboration
Once a company discovers its true sense of purpose, it can strike up strategic alliances.
To form these partnerships, most organizations need to have “skin in the game.” For
example, when Starbucks opened up kiosks inside Barnes & Noble, both chains
benefited. On the other hand, they may work together for a larger cause, such as Subaru
and the ASPCA, which have raised millions to help animals.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

 7. Contribution
At this level, companies take steps to ensure a better planet for future generations. For
example, reducing their company’s carbon footprint, recycling, or finding a cause. In
short, contribution is about corporate social responsibility.

OBJECTIVES OF AN ORGANISATION CULTURE

A. Giving the organization clear pictures of their culture from an unbiased assessment.
B. Maximizing a strategic plan for culture change in each employee.
C. Identifying and eliminating the subtitle and overt barriers to productivity.
D. Enhancing respect for all individuals.
E. Enabling and encouraging different management style to flourish.

TYPES OF ORGANISATION CULTURE

1. Academy culture

2. Baseball team culture

TYPES OF
ORGANISATION
3. Club culture
CULTURE

4. Fortress culture

5. Person or support culture

1. ACEDEMY CULTURE:
Employees are highly skilled and tend to stay in the organization while working
their way up the ranks. The organization provides a stable environment in which employees
can develop and exercise their skills.
2. BASE BALL TEAM CULTURE:
Employees are free agents who have highly prized skills. They are in high demand
and can get jobs elsewhere rather easily. This type of culture exists in fast faced high risk
organizations. Like investment banking, advertising etc.
UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA
 3. CLUB CULTURE:
The most important requirements for employees in this culture is to fit into the group.
Usually employees start at the bottom and stay with the organization. The organization
promotes from within and highly values seniority. Example, military, some law firms etc.

4. FORTRESS CULTURE:

There are certain organizations where the employees are not very sure about their
career and longevity. Such organizations follow fortress culture. The employees are
terminated if the organization is not performing well. Individuals suffer the most when the
organization is at a loss. Example, Stock broking industries follow such a culture,&
savings and loans large car companies etc.

5. PERSON OR SUPPORT CULTURE:

This culture is offers its members satisfaction resulting from relationships

mutuality’s belonging and connection. In this culture autonomy over the work they do and
if power is to be exercised then this is on the basis of expertise.
FUNCTIONS OF ORGANIZATION CULTURE:

i. It distinguishes one organization from the other. It creates brand name for the
organization. It develops a sense of identity amongst members.
ii. The members associate themselves with the organization.
iii. Employees of Earnest & Young feel proud to be part of the company because of its
strong culture.
iv. It promotes commitment amongst employees to achieve organizational goals.
v. Employees subordinate individual interests for the larger corporate results.
vi. It develops appropriate standards for employees and holds them together to achieve
vii. those standards.
viii. It provides a control mechanism for shaping the attitude and behavior of employees.
It gives direction to organizational activities and ensures that everyone moves in the
same direction.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

5. ORGANISATIONAL CLIMATE:
Organizational climate does not deal with values and norms. It is concerned with the
current atmosphere in an organization. Essentially the climate is the perceptions and
attitudes of the people in the culture. Organizational climate is also referred to as the
situational determinants which affect the human behaviors. The climate should be viewed
from a total system perspective.
In theory the concept of organizational climate is not very clear but practically it is related
to work performance, job contentment and self esteem of the employees. Each
organization has an organizational climate that clearly distinguishes it from other
organizations.
Basically, the organizational climate reflects a person’s perception of the organization to
which he belongs. It is a set of unique characteristics and featuresthat are perceived by the
employees about their organizations which serves as a major force in influencing their
behavior. Thus, organizational climate in a broad sense can be understood as the social
setting of the organization.
DEFINITION

“organizational climate is a collective perception of the work environment by theindividuals

within a common system”.

-JAMES AND SELLS

IMPORTANCE OF ORTGANISATIONAL CLIMATE:
• Organizational climate influences to a great extent the performance of the employees
because it has a major impact on motivation and job satisfaction of individual
employees.
• Organizational climate determines the work environment in which the employee
feels satisfied or dissatisfied.
• Since satisfaction determines or influences the efficiency of the employees, we can
say that organizational climate is directly related to the efficiency and performance
of the employees.

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 • Participation is a very effective tool to develop sound organizational climate and job
satisfaction.
• An atmosphere of co-operation opens access among group members and creates
individual motivation to exchange knowledge with group members resulting in more
productivity.

OTHER POINTS-IMPORTANCE OF ORTGANISATIONAL CLIMATE

A. Enhance employee performance
B. Building strong relationship
C. Indicates success or failure
D. Builds confidence
E. Minimize turn over

1. ENHANCE EMPLOYEE PERFORMANCE:

Organizational climate is a clear indicator of employee and organizational
performance. This is due to the fact that constructive work environment leads to motivated
work force.
2. BUILDING STRONG RELATIONSHIP:
Organization climate helps manager to discover the relationship between
organizational methods and the employee’s needs. If manager know what motivates
employee then they will be easily able to boost their morale. Hence a positive and strong
relationship can be formed which ultimately makes an organization successful.
3. INDICATES SUCCESS OR FAILURE:
The success or failure of an organization is also determined by its climate. In
organizations with positive climate employees enjoy working with each other. They
willingly perform the work and are satisfied with the organization.

4. BUILDS CONFIDENCE :
In an ideal organizational climate the sub originates are confidentand show faith
towards their superiors through hard work.
5. MINIMIZE TURN OVER:
The employees working in a positive climate are satisfied andhave no intention to
leave the organization. Thus higher morale reduces the employee turnover and from work
absence.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

 The following techniques in improving the climate of the organization:

1. Effective Communication System:

There should be a two way communication in the organization so that the

employees know what is going on and react to it. The manager can modify his decision on
the basis of feedback received.
2. Concern for People:
The management should be interested in the human resource development. It
should work for the welfare of employees and an improvement in theirworking conditions.
For developing a sound organizational climate, the management should have show
concern for the people.
3. Participative Decision Making:
The management should involve the employees in decision making process,
particularly those decisions which are related to goal setting and affect them. Participative
decision making will make the employees committed to the organization and more co-
operative also.
4. Change in Policies, Procedures and Rules:
The organizational climate can also be changed by making changes in the
policies, procedures and rules. It is a time consuming process but the changes will also be
long lasting if the workers see the changes in policies, procedures and rules as favorable to
them.

6. LEADERSHIP:
MEANING OF LEADERSHIP:
Leadership is essentially a continuous process of influencing behavior. It may be
considered in context of mutual relations between a leader and his followers.
The leader tries to influence the behavior of individuals or group of individuals
around him to achieve desired goals.
Leadership is a dynamic process, which deserves study. It is a relational process
involving interactions among leaders, members and sometimes outside constituencies.
UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA
Good leaders are made not born. If you have the desire and willpower, you can become an
effective leader.
Success of any organization depends on leaders. The quality of leadership
provided by the managers determines the degree of success of business. Leadership
provides direction, guidance, restores confidence and makes the way easy for
achieving the objective.
For EX: today Bill Gates who, despite early failures, with continued passion and innovation
has driven Microsoft and the software industry to success. The act of inspiring subordinates
to perform and engage in achieving a goal.

DEFINITIONS OF LEADERSHIP:
“Leadership is a relationship in which one person influences others to work together
willingly on related tasks to attain what the leader desires.”
- George R. Terry
“Leadership is the process of influencing people so that they will strive willingly towards
the achievement of group goals.”
- Koontz and O’Donnell
DIFFERENCE BETWEEN LEADERS AND MANAGERS

LEADERS MANAGERS
Innovate Administer
An original A copy
Develops Maintains
Originates Imitates
Focuses on people Focuses on systems and structures
Do the right thing Does things right
Challenges the status Accept the status
Inspire Control
Believes in WE Believes in I
Visionary Rational

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 Creative Persistent
Initiate change Authoritative
Counts on trust Counts on controls
Depended on good will and Dependence on his authority.
confidence

CHARACTERISTICS OF LEADERSHIP:

1. There must be Followers:

A leadership cannot exist without followers. If a leader does not have followers, he
cannot exercise his authority. Leadership exists both in formal and informal
organisations.
2. Working Relationship between Leader and Followers:
There must be a working relationship between the leader and his followers. It
means that the leader should present himself in a place where the work is actually going
on. Besides, the leader should be a dynamic person of the concerned group. If he is not
so, he cannot get things done.
3. Reciprocal Relationship:
Leadership kindles a reciprocal relationship between the leader and his followers.
A leader can influence his followers and, in turn, the followers can influence the leader.
The willingness of both the leader and the followers is responsible for the influence and
no enforcement is adopted.
4. Guidance:
A leader guides his followers to achieve the goals of the organisation. A leader
should take steps to motivate his followers for this purpose.
5. Related to a Particular Situation:
Leadership is applicable to a particular situation at a given point of time. It varies
from time to time.
6. Shared Function:
Leadership is a shared function. A leader is also working along with his followers
to achieve the objectives of the organisation. Besides, the leader shares his experience,
ideas and views with his followers.
7. Power Relationship:
A leader has powers to exercise over his followers. The leader derives these
powers from the organisation hierarchy, superior know-ledge, experience and the like.

OBJECTIVES OF LEADERSHIP:

(i) To develop the feeling of cooperation and coordination,

(ii) To determine and provide the needful directions about good or bad as well as right
or wrongGROUP
UNIT-IV. conducts and behaviour
BEHAVIOUR as may be applicable
& LEADERSHIP | KVSMBA in society.
 (iii) To determine and formulate the equitable and justified behavioural norm in society,
(iv) To develop new, innovative and creative ideas, outlooks and approaches among
people,
(v) To determine and make the perspective visions and missions for the well-being of
human life in society,
(vi) To determine and develop the parameters on the basis of ethical values towards
optimum and balanced behaviour between individual and group in any society,
(vii) To determine some learning aspects to follow the concept of truth, purity,
politeness, and justifications among every people in society,
(viii) To develop enthusiasms, loyalty and devotional behaviour and attitudes,
(ix) To determine and provide needful directions for making team spirit among people,
(x) To provide due importance for common interest in a group or society,
(xi) To provide some leading guidelines for developing better work environment.

7. TRAITS THEORY:
The trait theories of leadership focus on the individual characteristics of successful
leaders. The trait theorists believes that people become leaders because of special traits they
posses and that leaders are born not made. The theory assumes that a leader is born and
not trained. This assumption is not acceptable to the contemporary thinkers on the subject.
The personality of man in his inner life including such inner elements as background life
history, believes life experiences, attitudes, self image, love, hates and philosophy of life.

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Successful leaders possess many of the following traits like.
1. Drive - desire for achievement high energy initiative.
2. Honesty and integrity – they are trusty worthy open and reliable.
3. Physical features – have good physique
4. Self confidence – trust in own abilities.
5. Creativity – creative and have the capacity to come up with original ideas.
6. Flexibility – leadership have the ability to adapt to the needs of followers.
7. Leadership motivation – strong desire to influence others and reach shared goals.

THE TRAITS CAN BE CLASSIFIED LIKE

A. SELF-KNOWLEDGE: knowledge of own talents and value of foreign

assignmentswith responsibility and accountability.
B. OPEN TO FEEDBACK: effective leaders develop valued and varied
source offeedback on their behavior and performance.
C. HUMAN RELATIONS: a successful leader should have adequate knowledge of
human relations. An important part of a leader’s job is to develop people and get
their voluntary co-operation for achieving work.
D. TECHNICAL SKILLS: the ability to plan organizes delegates analyses seek
advice, make decisions control and win co-operation requires the use of important
abilitieswhich constitute technical competence of leadership.
E. COMMUNICATIVE SKILLS: a successful leader knows how to communicate
effectively communication has great force it getting acceptance from the receivers.
A successful leader is an extrovert.

Strengths/Advantages of Trait Theory

A. It is naturally pleasing theory.
B. It is valid as lot of research has validated the foundation and basis of the theory.
C. It serves as a yardstick against which the leadership traits of an individual can be
assessed.
D. It gives a detailed knowledge and understanding of the leader element in the
leadership process.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

Limitations of the Trait Theory
1. There is bound to be some subjective judgment in determining who is regarded asa
‘good’ or ‘successful’ leader.
2. The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These
descriptions are simply generalities.
3. There is also a disagreement over which traits are the most important for an
effective leader
4. The model attempts to relate physical traits such as, height and weight, to effective
leadership.
5. Most of these factors relate to situational factors. For example, a minimum weight
and height might be necessary to perform the tasks efficiently in a military
leadership position.
6. In business organizations, these are not the requirements to be an effective leader.

LEADERSHIP THEORIES

1. GROUPS AND EXCHANGE THEORIES OF LEADERSHIP: Social

psychology is the basis for group theories of leadership. social exchange view of
leadership indicates that exchange theories propose that group members make
contributions at a cost to themselves and receives benefits at a cost to the group of other
members. Social exchange indicates that leadership is an exchange process between the
leaders and followers.
2. GREAT MAN THEORY OF LEADERSHIP: This is one of the earliest
leadership theories and is based on the assumption that leadership is an inborn
phenomenon and that leaders are "born" rather than "made." According to this theory, a
person capable of leading has the personality traits of a leader — charm, confidence,
intellect, communication skills, and social aptitude — from birth, which set them apart.
This theory emphasizes leadership as a qualitythat you either possess or you don't; it isn't
something that you can learn.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

 3. BEHAVIOURAL THEORIES: Behavioral theories of leadership propose that
specific behaviors differentiate leaders from non leaders. These theories attempts to
explain leadership terms of the behavior that the leader exhibits. These theories between
patterns of leadership behavior and group performance.

9. MANAGERIAL GRID:
It describes the relationship between the leader's concern for task and concern for
people, but this theory differs in its perspective. The managerial grid Considers
leadership style based on their focus on task and people. The managerial grid model
(1964) is a style leadership model developed by Robert R. Blake and Jane Mouton. In
this style, managers have low concern for both people and production. This model
originally identified five different leadership styles based on the concern for people and
the concern for production. The Managerial Grid is based on two behavioral dimensions:
Concern for People: This is the degree to which a leader considers the needs of
team members, their interests, and areas of personal development when deciding how best
toaccomplish a task.

Concern for Production: This is the degree to which a leader emphasizes concrete
objectives, organizational efficiency and high productivity when deciding how best to
accomplish a task. Using the axis to plot leadership “concerns for production‟ versus
„concerns for people‟,

MANAGERIAL GRID MODEL:

In each of the axis, both horizontal and vertical, you can find nine ranges. Nine is
the highest and one is the lowest range. So, if you are people- oriented manager who
thinks about the team’s needs first, you would score closer to nine(or even nine). On the
other hand, if you had less care for the team’s needs, you would be somewhere close to
zero. When you score yourself in both the horizontal and vertical axis, you’ll get the
results for your management style.

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 1. Impoverished Management (1, 1): Managers with this approach are low
on both the dimensions and exercise minimum effort to get the work done from
subordinates. The leader has low concern for employee satisfaction and work deadlines
and as a result disharmony and disorganization prevail within the organization. The
leaders are termed ineffective wherein their action is merely aimed at preserving job
and seniority. For example, a manager nearing retirement or termination may lose
interest in both his staff and his product. He does the minimum amount of work
required each day to get the job done but has no long-term interest in improving
productivity or developing his employees. Employees lose faith in their company when
their leader shows so little interest in them or their work.

2.Country Club (1, 9): This is a collegial style characterized by low task and high people
orientation where the leader gives thoughtful attention to the needs of people thus providing
them with a friendly and comfortable environment. The leader feels that such a treatment with
employees will lead to self-motivation and will find people working hard on their own. However,
a low focus on tasks can hamper production and lead to questionable results. This leadership
style may also be the leader’s conscious choice. The moment an employee has to deal with
personal problems the manager’s care and support will be experienced as positive.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

 For example:
➢ A newly promoted manager wants to remain friendly with his former peers so he
resists providing corrective criticism or discipline, even when it is warranted.
➢ Leaders who use this style focus so much on their staff that they fail to recognize
risks or threats to productivity and miss opportunities to develop new business.
3 . Task management (9, 1): Here leaders are more concerned about production and
have less concern for people. The employees’ needs are not taken care of and they are
simply a means to an end. The leader believes that efficiency can result only through
proper organization of work systems and through elimination of people wherever
possible. Such a style can definitely increase the output of organization in short run but
due to the strict policies and procedures, high labour turnover is inevitable. This leader is
authoritative and he exerts disciplinary pressure. The leader requires the utmost of the
employees and imposes sanctions when they fail to meet the requirements.

4. Middle-of-the-Road (5, 5):

This is basically a compromising style wherein the leader tries to maintain a balance
between goals of company and the needs of people. The leader does not push the
boundaries of achievement resulting in average performance for organization. Here neither
employee nor production needs are fully met. In this leadership style the ‘happy medium
‘course is adopted. The leader maintains a balance between the needs of the people and
the production and the leader scores an average mark on both criteria.

5.Team Management (9, 9): The leader feels that empowerment, commitment, trust, and
respect are the key elements in creating a team atmosphere which will automatically result
in high employee satisfaction and production.
A team management style has the leader projecting the following principles:
Commitment to the organization and its goals and mission: Emphasis on finding ways
to motivate team members. Working hard and expecting others to show full commitment
towards goal-achievement. Empowers the team and tries to be an inspiration for
employees. Team management is a challenging leadership style, as your attention and
focus must be equally divided in achieving results and ensuring people are happy. As a
manager, you would want to ensure people are committed to the organization and that they
understand its vision and objectives. You would include the rest of the team in decision-
making, to ensure everyone has a stake in productivity and effectiveness

UNIT-IV. GROUP BEHAVIO UR & LEADERSHIP | BALAJI INST OF IT & MANAGEMENT,KADAPA

 For example:
An experienced manager inspires commitment from her employees and promotes
careerdevelopment, but doesn't ignore the need to meet aggressive deadlines in order to
remain competitive. Using this style, a leader appreciates allegiance and admiration from
his staff but recognizes that running a successful business does not depend on being liked
by your employees.

10. TRANSACTIONAL VS TRANSFORMATIN LEADERSHIP

TRANSACTIONAL LEADERSHIP:
Transactional leadership involves an exchange relationship between leaders and
followers. The transactional style of leadership was first described by Max Weber in 1947 and
then by Bernard Bass in 1981. When the transactional leader allocates work to subordinates
he is considered to be fully responsible for it. The basic assumptions behind transactional
leadership are that people are motivated by reward and punishment. This style is most
often used by the managers. It focuses on the basic management process of controlling,
organizing, and short-term planning. The famous examples of leaders who have used
transactional technique include McCarthy and de Gaulle. Transactional leadership involves
motivating and directing followers primarily through appealing to their own self-interest.
The power of transactional leaders comes from their formal authority and responsibility in
the organization. The main goal of the follower is to obey the instructions of the leader. The
style can also be mentioned as a ‘telling style’. If a subordinate does what is desired, a
reward will follow, and if he does not go as per the wishes of the leader, a punishment will
follow. Here, the exchange between leader and follower takes place to achieve routine
performance goal It is also known as managerial leadership.
UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA
Transactional leader facilitate this transition from external to internal control by

▪ Changing the mental models of employees

▪ Linking desired out comes to values held by employees
▪ Building strong employee identification with the group or organization.

The transactional leader tends to use the following compliances approaches like.

ENJOYMENT: the leader attempts to convince the target of the enjoyment he or she will
experience along with compliance.

REWARD: the leader offers favors benefits or future rewards for compliance.

RECIPROCITY: the leader appeals based on felling of debt to the leader in that them
attempts to tap the intrinsic process and instrumental sources of motivations.

QUALITIES OF TRANSACTIONAL LEADERSHIP

➢ Directive and action oriented

➢ Reward and punishment, Rewards and incentives
➢ Structure is clear, Short term goals and

EXAMPLES OF TRANSACTIONAL LEADERSHIP

➢ This model is also useful for big corporations like HP(Hewlett-Packard)

➢ Many high level members of the military CEO of large international companies and
NFL coaches.

TRANSFORMATION LEADERSHIP: Transformational leadership is based on leaders

shifting the values beliefs and needs of the followers. We need much more of
transformational leadership in every sphere. it be government, business, education or
even non-profit organizations. The basic assumption behind this form of leadership is
that

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

People will follow a person who inspires them. A person with vision and passion can
achieve great things the way to get things done is by injecting enthusiasm and energy.
Transformational leadership starts with the development of vision a view of the future
that will excite and convert potential followers. The transformational leader thus takes
every opportunity and will use whatever works to convince others to climb on board. This
vision may be developed by the leader by the senior team or may emerge from a broad
series of discussions. Transformational leader are always visible and will stand up in be
counted rather than hide behind their troops. They show by their attitudes and actions
how everyone else should behave. They also make continued efforts to motivate and rally
their followers constantly doing the rounds listening, shooting and enthusing. When the
behavior becomes internalized the leaders need to monitor employee behavior is greatly
reduced. Transformational leadership is a style of leadership where the leader, along with
his/her team, is able to identify the challenges ahead, Resources available and
is constantly engaging and involving the employees to perform to the best of
their abilities and grow professionally and personally in the process. The most important
aspect of transformational leadership is that the leader is not only bothered about his
performance or deliverables But also consciously tries to guide his subordinates and uses
his experience and expertise to give a good professional career to the subordinates.

Examples of Transformational Leadership

Few examples of transformational leaders in the world and see how they functioned

1. Mahatma Gandhi:

➢ Mahatma Gandhi gave the Indian freedom movement a sense of direction and
purpose. He was able to make it a truly mass movement that till then existed in
fragmented interests and limited to either extreme elite participation or
participation of the extreme poor.
➢ By preaching his theory of non violence, Gandhi was able to bring in each citizen of
India into the freedom struggle and make every single person’s contribution count.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

2. Steve Jobs:

➢ Steve Jobs has to mandatorily be one of the names in the most iconic
transformational leaders the world has ever seen.
➢ His passion for perfection, simplicity and sophistication drove the company and he
made sure that it got engraved into every employee who worked at Apple.
➢ He constantly challenged his employees to think beyond what has already been
done and made them create products that the world did not even know it needed.

SOME OF THE CHARACTERISTICS OF TRANSFORMATION LEADERS

➢ Courageous, Believe in people.

➢ Value-driven.
➢ Life-long Visionaries.
➢ Have the abilities to deal with complexity ambiguity and un-certainty.

10.2Difference between Transactional and Transformational Leaders

BASIS FOR TRANSACTIONAL TRANSFORMATIONAL

COMPARISON LEADERSHIP LEADERSHIP

Meaning A leadership style that A leadership style in which

employs rewards and the leader employs charisma
punishments for and enthusiasm to inspire his
motivating followers is followers is Transformational
Transactional Leadership.
Leadership.

Concept Leader lays emphasis Leader lays emphasis on the

on his relation with values, ideals, morals and
followers. needs of the followers.

Nature Reactive Proactive

Best suited for Settled Environment Turbulent Environment

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

 Works for Developing the existing Changing the existing
organizational culture. organizational culture.

Style Bureaucratic Charismatic

How many Only one More than One

leaders are
there in a
group?

Focused on Planning and Execution Innovation

Motivational tool Attracting followers by Stimulating followers by

putting their own self setting group interest as a
interest in the first place. priority.

11. WOMEN LEADERSHIP IN INDIA : Historically women have been

discriminated against in our male dominated society. Women were considered to be fit to
cook food but not to work in business establishments. The picture is not totally different
today. As we go into the future discriminating against woman will certainly go and they
will sure occupy equal status along with male counterparts. The government is also keen
on uplifting the status of women. Participation of woman in business as owner’s
managers and employees is lessen couraging considering the size of the population and
the vest opportunities available. There is the deviate attitude of a male worker to work
under a women manager un wanted chivalrous attitude if the formers is boss. Women
leaders encourage participation share power and information and enhance people’s self
worth. It is time for the corporate world to create an equitable workplace where equal
pay is given and childcare becomes a parent responsibility and not just women
responsibility .Male managers tend to be similar thinking decision types. Women managers
bring greater variety of thinking and personality type. Women typically invest in their
families and communities significantly more than men – spreading wealth and increasing
UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA
the quality of life for themselves and their families. Diversity of thinking at the senior
level gives management teams a wider peripheral vision of what constitutes a risk and
provides a more balanced approach for reacting to it, either as an opportunity or a
threat. Gender diversity in firms’ decision- making teams could ultimately be the
difference between reaping success or failure. Women’s participation in the workforce is
thus critical in realizing the promise of the nation’s demographic dividend. This needs
proactive efforts both from a corporate and policy level, and from women themselves.

Two questions regarding woman in leadership postings need to be addressed.

• Are women more or less people oriented than male leaders? Are women more
or less job oriented than men?
• Will female leaders not be permitted to lead because of the stereotypes and
biases of their employees

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

.

KEY STRENGTH OF WOMEN LEADERS IN INDIA

➢ Ability to network with colleagues Ability to perceive and understand situations.

➢ Strong sense of dedication loyalty and commitment to their organizations.
➢ Ability to multitask Behaving in a gender neutral manner.
➢ Willingness to share information (interactive leadership style).

Examples of women leaders in India:

➢ Arundhati Bhattacharya, Chairperson,

➢ Chanda Kochhar– CEO & MANAGING DIRECTOR- ICICI BANK
➢ Archana Bhargava, Chairman and Managing Director, United Bank of India[2]
➢ Renu Sud Karnad, Managing Director of HDFC
➢ Kiran Mazumdar -SHAW-CMD –BIOCON
➢ Rekha Menon– CHAIRMAN & MD- ACCENTURE INDIA

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

Case Study :

Leadership and Management

Laura is the associate director of a nonprofit agency that provides assistance to children
and families. She is the head of a department that focuses on evaluating the skill-building
programs the agency provides to families. She reports directly to the agency leadership.
As a whole, the agency has been cautious in hiring this year because of increased
competition for federal grant funding. However, they have also suffered high staff
turnover. Two directors, three key research staff, and one staff person from the finance
department have left. Laura has a demanding schedule that requires frequent travel;
however, she supervises two managers who in turn are responsible for five staff members
each. Both managers have been appointed within the last six months.

Manager 1: Kelly has a specific background in research. She manages staff who provide
research support to another department that delivers behavioral health services to youth.
Kelly supports her staff and is very organized; however, she often takes a very black and
white view of issues. Upper level leadership values Kelly’s latest research on the
therapeutic division’s services. Kelly is very motivated and driven and expects the same
from her staff.

Manager 2: Linda has a strong background in social science research and evaluation. She
manages staff that work on different projects within the agency. She is known as a
problem solver and is extremely supportive of her staff. She is very organized and has a
wealth of experience in evaluation of family services. Linda is very capable and can
sometimes take on too much.

The managers are sensing that staff are becoming overworked as everyone takes on
increased responsibilities due to high staff turnover. Staff have also mentioned that
Laura’s "glass half-empty" conversation style leaves them feeling dejected. In addition,
Laura has not shared budgets with her managers, so they are having difficulty
appropriately allocating work to staff. Laura said she has not received sufficient
information from the finance department to complete the budgets. The finance
department said they have sent her all the information they have available.

As staff become distressed, the managers are becoming frustrated. They feel like they are
unable to advocate for their staff or solve problems without key information like the
departmental budget.
UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA
Discussion Questions:

1. How can Laura most effectively use both management and leadership skills in her role
as associate director? What combination of the two do you think would work best in
this setting?

Ans :A director could be both a leader and manager. However, given that the two
mangers are very capable and directly manage all the department staff, Laura should
focus on being a leader. She should delegate managerial responsibilities to the two
managers. This strategy will build the managers’ confidence, allowing them to solve
problems for their staff. It will also free Laura to focus on building a greater sense of staff
commitment to mission and vision.

2. What advice would you give Laura on improving her leadership skills and to the
managers on improving their management skills?

Ans : It might help for both Laura and the managers to take a personality or
leadership/management assessment. This way the mangers can ascertain their individual
skills, learn how they can best support employees, and figure out how they can work
together to use each other's strengths to run the department. Using a style approach,
Manager 1 appears to utilize a task-oriented approach and Manager 2 demonstrates a
relationship-oriented style. These two orientations could be structured to support one
another.Laura can focus on building leadership skills by building on her current strengths.
In addition, Laura may want to revisit the roles and responsibilities of each position and
how her division's work aligns with the overall organizational mission. Aligning with the
overall mission and communicating it to staff may help improve morale and provide
clarity on the department's role and direction.
3. Which leadership style do you think a leader would need to be effective in this
situation?
Ans :Several leadership approaches may be suited to the position described in the
scenario:
• Skills: Centers on the ability to solve complex problems. The nonprofit is having
several difficulties at the organizational level, including high turnover.
• Path Goal: Motivates employees by defining goals, clarifying paths, removing
obstacles, and providing support. This type of leadership may work well in building
employee morale.
• Transformational: Treats employees as complete human beings, considers
emotions and perspectives. Builds motivation by providing a clear vision, acting as a
social architect, building trust, and positive self-regard.

UNIT-IV. GROUP BEHAVIOUR & LEADERSHIP | KVSMBA

External Questions: (Old Question papers)
UNIT-IV

1) Explicate the operant conditioning of learning.(principles of learning )

2) “Johari window is a useful tool for understanding self and improving
communication”. Explain indetail.
3) Discuss different leadership styles?
4) Define group? Explain the types of groups and process of formation of group?
5) Are groups useful to the organizations and its members? Present your
viewpoints.(Benefits of groups answer)
6) Explain the types of culture in organization behavior?
7) Why transactional leadership is better than transformational leadership in present
organizations?Explain with an example.

UNIT-V ORGANISATIONAL BEHAVIOUR

 UNIT-5
ORGANISATIONAL BEHAVIOUR
1. ORGANIZING PROCESS:

INTRODUCTION:
Organizing is the second key management function, after planning, which
coordinates human efforts, arranges resources and incorporates the two in such a way
which helps in the achievement of objectives. It involves deciding the ways and means
with which the plans can be implemented.
It entails defining jobs and working relationships, assigning different tasks
associated with the plans, arranging and allocating resources, design a structure which
distinguishes duties, responsibilities and authorities, scheduling activities, in order to
maintain smoothness and effectiveness in operations.

CHARACTERISTICS OF ORGANIZING PROCESS:

• Division of Labour:
Work is assigned to the employee who is specialised in that work.
• Coordination:

Different members of the organization are given different tasks to perform when all
the tasks are put together logically and sequentially, it results in the objectives, so

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

 coordination is required.
• Objectives:

Objectives need to be specifically defined.

• Authority-Responsibility Structure:
For an effective authority responsibility structure, the position of each manager and
executive is specified, as per the degree of the authority and responsibility assigned to
them, while performing the duties.

• Communication:

The techniques, flow and importance of communication must be known to all the
members.

ORGANIZING PROCESS:

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

 1. Identification and Division of work:
It begins with the division of total work into smaller units. Each unit of total work
is called a job. And an individual in the organization is assigned one job only. The division
of work into smaller jobs leads to specialization because jobs are assigned to individuals
according to their qualifications and capabilities. The division of work leads to systematic
working. For example, in a bank every individual is assigned a job. One cashier accepts
cash, one cashier makes payments, one person issues cheque books, one person receives
cheques, etc. With division of work into jobs the banks work very smoothly and
systematically.

2. Grouping the Jobs and Departmentalization:

After dividing the work in smaller jobs, similar jobs are grouped together and put under
one department. The departmentation or grouping of jobs can be done by the organization in
different ways.
But the most common two ways are:
(a) Functional departmentation: Under this method jobs related to common function are
grouped under one department. For example, all the jobs related to production are grouped
under production department; jobs related to sales are grouped under sales department and
so on.
(b) Divisional departmentation: When an organization is producing more than one type of
products then they prefer divisional departmentation. Under this jobs related to one product
are grouped under one department. For example, if an organization is producing
cosmetics, textile and medicines then jobs related to production, sale and marketing of
cosmetics are grouped under one department, jobs related to textile under one and so on.

3. Assignment of Duties:

After dividing the organization into specialized departments eachindividual working

in different departments is assigned a duty matching to his skill and qualifications. The
work is assigned according to the ability of individuals. Employees are assigned duties by
giving them a document called job description. This document clearly defines the
contents and responsibilities related to the job.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

4. Establishment of organizational hierarchy:
Deployment of work is not all, the employees must be aware of whom they have to
report and who can give them orders. Hence, work relationships need to be established
clearly, which helps in the creation of a hierarchical structure of the organization.
5. Provision of resources to the members:
Arrangement and deployment of resources such as money, materials, supplies, and
machine, etc. which are important to carry out day to day operations of the organization.
6. Coordination of efforts and scheduling of activities:
The final step to this process is the coordination of efforts and scheduling the
activities in a logical and systematic manner so that the common objectives can be achieved
effectively.

IMPORTANCE OF ORGANIZING:
Organizing is integral to management as it facilitates the smooth functioning of the
enterprise. The importance of organizing is as under:

• Advantage of Specialization:
Organizing helps in the classification of jobs systematically amongst the workforce,
which helps in the reduction of workload, as well as improved productivity. This is
because the organization will get the benefit of specialization wherein workers will
perform specific work on a regular basis, according to their competency.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

 • Describes work relationships:
The definition of work relationships describes the flow of communication and
determine the superior-subordinate relationship. This removes confusion and chaos, in
getting orders and instructions.

• Effective utilization of resources:

Organizing function ensures the best possible utilization of resources whether it is
human, material, financial or technical. This is because jobs are assigned to the employees
which avoid overlapping and duplication of work.

• Adaptation to change:
Organizing process helps the organization to survive and adapt the changes, by
making substantial changes in the strategies, hierarchy, relationships, etc.

• Development of personnel:
Organising encourages creativity in executives. Delegation of authority reduces
their workload and they get time to identify new methods to perform the work. It also
enables them to explore new areas for their growth and development.

2. DEPARTMENTATION:
Departmentation’ or ‘Departmentalization’ is the process of grouping the activities of
an enterprise into several units for the purpose of administration at all levels. The
administrative units may be designated as departments, divisions, units, branches, sections,
etc. Departmentation can be provide a necessary degree of specialization of executive
activity for efficient performance. It can simplify the tasks of management within a
workable span. It also provides a basis on which the top managers can co- ordinate and
control the activities of the departmental units.

TYPES OF DEPARTMENTATION:

There are several bases of Departmentation. The more commonly used bases are—
function, product, territory, process, customer, etc.

These are explained below:

(A) DEPARTMENTATION BY FUNCTIONS:
The enterprise may be divided into departments on the basis of functions like
production, purchasing, sales, financing, personnel etc. This is the most popular basis of

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

departmentation. If necessary, a major function may be divided into sub-functions. For
example, the activities in the production department may be classified into quality control,
processing of materials, and repairs and maintenance.

Advantages:
• It is a very simple, natural and logical way of grouping activities.
• It promotes specialization and expertise in various functional areas and experts can be
employed.
• It facilitates co-ordination both within the function and at the inter-departmental level.
• It generates a high degree of centralization at the level of chief executive.
Disadvantages:
A. It may lead to internal frictions among the various departmental heads as one department
may ignore the interest of the other,
B. It leads to excessive centralization and delay in decision making.
C. It is unsuitable where emphasis lies on products more than the functions.

(B) DEPARTMENTATION BY PRODUCTS:

In product departmentation, every major product is organised as a separate
department. Each department looks after the production, sales and financing of one
product. Product departmentation is useful when the expansion, diversification,
manufacturing and marketing characteristics of each product are primarily significant.
It is generally used when the production line is complex and diverse requiring
specialised knowledge and huge capital is required for plant, equipment and other
facilities such as in automobile and electronic industries.
In fact, many large companies are diversifying in different fields and they prefer
product departmentation. For example, a big company with a diversified product line
UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA
may have three product divisions, one each for plastics, chemicals, and metals. Each
division may be sub-divided into production, sales, financing, and personnel activities.

Advantages:
A. It ensures better customer service.
B. Unprofitable product lines can be easily determined.
C. It solves the co-ordination problem of functional departments.
D. It makes control effective.
E. It assists in the development of all-round managerial talent.
F. It is flexible as a new product division can be easily added.
Disadvantages:
A. It is expensive because of duplication of service functions in various product divisions.
B. It may not be linked by customers and dealers who have to deal with different
salesmen of the same enterprise for different products.
C. It may cause difficulty in apportioning general expenses incurred by the enterprise
as a whole.
(C) DEPARTMENTATION BY TERRITORY:

Territorial or geographical departmentation is especially useful to large-scale

enterprises whose activities are widely dispersed. Banks, insurance companies, transport
companies, distribution agencies etc. are some examples of such enterprises, where all the
activities of a given area of operations are grouped into zones, branches, divisions etc.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

 It is obviously not possible for one functional manager to manage efficiently such
widely spread activities. This makes it necessary to appoint regional managers for different
regions.

Advantages:
• It enables a concern to make use of locational advantages.
• It facilitates effective control.
• It facilitates effective co-ordination of activities within an area.
• It assists in the development of all-round managerial talent.
Disadvantages:
• It is an expensive method of creating departments and over head costs are also
increased.
• It leads to duplication of activities which creates confusion and involves costs.

(D) DEPARTMENTATION BY CUSTOMERS:

In such method of departmentation, the activities are grouped according to the type
of customers. For example, a large cloth store may be divided into wholesale, retail, and
export divisions. This type of departmentation is useful for the enterprises which sell a
product or service to a number of clearly defined customer groups. For instance, a large
readymade garment store may have a separate department each for men, women, and
children. A bank may have separate loan departments for large-scale and small- scale
businessmen.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

(E) DEPARTMENTATION BY PROCESS OR EQUIPMENT:
In such type or departmentation the activities are grouped on the basis of
production processes involved or equipment used. This is generally used in manufacturing
and distribution enterprises and at lower levels of organization. For instance, a textile mill
may be organized into ginning, spinning, weaving, dyeing and finishing departments.
Similarly, a printing press may have composing, proof reading, printing and binding
departments. Such departmentation may also be employed in engineering and oil
industries.

(F). Combined or Composite Method of Departmentation:

In practice, it may not be advisable to create departments on the basis of any one
of the above mentioned methods. An enterprise may have to combine two or more of the
methods of Departmentation to make best use of all of them. Such a method is known as
combined or composite method of departmentation.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

FACTORS TO BE CONSIDERED IN DEPARTMENTATION:
1. SPECIALISATION:
The activities of an organization should be grouped in such a way that it leads to
specialization of work. Specialization helps to improve efficiency and ensure economy of
operations. It enables the personnel to become experts.

2. CO-ORDINATION:
Quite different activities may be grouped together under one executive because they
need to be co-ordinate. So, the basis of departmentation should ensure that the dissimilar
activities are put together in one department.

3. CONTROL:
Departmentation should be such that it facilitates the measurement of performance
and adoption of timely corrective action. It should enable the managers to hold the
employees accountable for results. Effective control helps to achieve organizational
objectives economically and efficiently.

4. PROPER ATTENTION:
All the activities which contribute to the achievement of subordinate results should
be given adequate attention. This will ensure that all necessary activities are performed
and there is no unnecessary duplication of activities. Key areas should be given special
attention.

5. ECONOMY:
Creation of departments involves extra cost of additional space, equipment and
personnel. So, the pattern and number of departments should be so decided that
maximum possible economy is achieved in the utilization of physical facilities and
personnel.

6. LOCAL CONDITION:
While forming departments adequate attention to the local conditions should be
given. This is more important to the organization which operates in different
geographical areas. Departmentation should be adjusted according to the available
UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA
 resources. It should aim at full utilization of resources.

7. HUMAN CONSIDERATION:
Departmentation should also consider the human aspect in the organization. So,
along with the technical factors discussed above, departments should be created on the
basis of availability of personnel, their attitude, aspiration and value systems, informal
work groups, cultural patterns, etc. Due attention to the human factors will make
departmentation more effective and more efficient.

3. MAKING ORGANIZING EFFECTIVE:

“Organizing” is the function of gathering resources, establishing orderly uses for such
resources and structuring tasks to fulfill organizational plans. It includes the
determination of what tasks are to be done, how the tasks are to be grouped, who is
going to be responsible to do these tasks and who will make decisions about these tasks.
Organizational effectiveness is the concept of how effective an organization is in
achieving the outcomes of the organization intends to produce. Organizational
Effectivenessdirectly concern themselves with several key areas. They are
talent management, leadership development, organization design and structure, design
of measurements and scorecards, implementation of change and transformation,
deploying smart processes and smart technology to manage the firms' human capital and
the formulation of the broader Human Resources agenda

THE PROCESS OF ORGANIZING EFFECTIVE:

1. Reviewing plans and objectives: The first step for the management is to reflect on
the organizational goals and objectives .For example, if a high class restaurant is to be
opened in anelite area, then the management must establish objectives and reviews. These
objectives are consistent with the location of the restaurant and the type of customers to be
served.
2. Determining activities: In the second step, managers prepare and analyze the
activities needed to accomplish the objectives. In addition to general activities such as
hiring, training,keeping records and so on, there are specific activities which are unique to
the type of business that an organization is in.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

3. Reviewing plans and objectives: The first step for the management is to reflect on the

organizational goals and objectives .For example, if a high class restaurant is to be opened in
anelite area, then the management must establish objectives and reviews. These objectives
are consistent with the location of the restaurant and the type of customers to be served.
4. Determining activities: In the second step, managers prepare and analyze the activities

needed to accomplish the objectives. In addition to general activities such as hiring, training,
keeping records and so on, there are specific activities which are unique to the type of
business that an organization is in.
For example, in the case of the restaurant, the two major activities or tasks are cooking food
and serving customers.
5. Classifying and grouping activities: Once the tasks have been determined, these tasks
must be classified into manageable work units. This is usually done on the basis of similarity
of activities. For example, in a manufacturing organization, the activities may be classified
into production, marketing, finance, research and development and so on.
For example, in the area of serving customers in the restaurant, there may be different
persons for taking cocktail orders, for food orders and for clearing the tables. For cooking
food, there may by different cooks for different varieties of food.
6. Classifying and grouping activities: Once the tasks have been determined, these tasks

must be classified into manageable work units. This is usually done on the basis of similarity
of activities. For example, in a manufacturing organization, the activities may be classified
into production, marketing, finance, research and development and so on.
For example, in the area of serving customers in the restaurant, there may be different
persons for taking cocktail orders, for food orders and for clearing the tables. For cooking
food, there may by different cooks for different varieties of food.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

7. Classifying and grouping activities: Once the tasks have been determined, these tasks

must be classified into manageable work units. This is usually done on the basis of similarity
of activities. For example, in a manufacturing organization, the activities may be classified
into production, marketing, finance, research and development and so on.
For example, in the area of serving customers in the restaurant, there may be different
persons for taking cocktail orders, for food orders and for clearing the tables. For cooking
food, there may by different cooks for different varieties of food.
8. Assigning work and resources: This step is critical to organizing because the right person

must be matched with the right job and the person must be provided with the resources to
accomplish the tasks assigned. The management of the restaurant must determine that who
will take the orders and who will set as well as clear the tables and what the relationship
between these individuals will be. Management must also make sure that adequate
resources of food items, utensils and cutlery is provided as necessary.
9. Evaluating results: In this final step, feedback about the outcomes would determine how

well the implemented. This feedback would also determine if any changes are necessary or
desirable in the organizational set-up.
For example, in the case of the restaurant, complaints and suggestions from customers would
assist the manager in making any necessary changes in the preparation of food, internal decor
of the restaurant or efficiency in service.

4. Organizational culture- Types of culture – Organizational Culture Vs Organizational

climate - Refer in IV-UNIT

7. CONFLICT MANAGEMENT :
Conflict management is the process of limiting the negative aspects of conflict while
increasing the positive aspects of conflict. The aim of conflict management is to enhance
learning and group outcomes, including effectiveness or performance in organizational
setting. An expressed struggle between at least two interdependent parties who perceive
incompatible goals, scarce resources, and interference from the other party in achieving

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

their goals . Conflict management involves acquiring skills related to conflict resolution, self-
awareness about conflict modes, conflict communication skills, and establishing a structure
for management of conflict in your environment. All members of every organization need to
have ways of keeping conflict to a minimum – and of solving problems caused by conflict,
before conflict becomes a major obstacle to your work

Causes of conflict

➢ Misunderstanding
➢ Personality clashes
➢ Competition for resources
➢ Authority issues Lack of cooperation
➢ Differences over methods or style
➢ Low performance
➢ Value or goal differences

Other Major causes of workplace conflict

1. Personality clashes: The 'personality mix' within a team can be upset when a new
member of staff joins or if two colleagues suddenly fall out. Individuals may also respond
to difficult or challenging situations in an unhelpful or unproductive way.

2. Unrealistic needs and expectations: Conflict at work can often be caused when
employers ignore the needs of employees or set unrealistic expectations. For example,
arranging hours that make it difficult for employees to carry out childcare responsibilities.

3. Business values: most people have very clear ideas about what they think is fair, and
organization’s procedures and policies must reflect this. For example, giving someone a
fair hearing or explaining the reasoning behind a decision.

4. Unresolved workplace issues: For example, an employee might ask to be moved to

another team because of their manager's 'aggressive' leadership style. However, the
employee may have other reasons - they may blame their manager for a lackof training or
career progression.

5. Increase in workload : workplace conflict is caused because people feel they are being
pushed too hard and resentment sets in if they feel their workload is unmanageable.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

 Stragies to handle the conflict management

1. Accommodating: The accommodating strategy essentially entails giving the opposing side

what it wants. The use of accommodation often occurs when one of the parties wishes to
keep the peace or perceives the issue as minor.

For example, a business that requires formal dress may institute a "casual Friday" policyas
a low-stakes means of keeping the peace with the rank and file. Employees who use
accommodation as a primary conflict management strategy, however, may keep track and
develop resentment.
2. Avoiding: The avoidance strategy seeks to put off conflict indefinitely. By delaying or

ignoring the conflict, the avoider hopes the problem resolves itself without a confrontation.
Those who actively avoid conflict frequently have low esteem or hold a position of low
power. In some circumstances, avoiding can serve as a profitable conflict management
strategy, such as after the dismissal of a popular but unproductive employee. The hiring of a
more productive replacement for the position soothes much of the conflict.
3. Collaborating: Collaboration works by integrating ideas set out by multiple people. The

object is to find a creative solution acceptable to everyone. Collaboration, though useful,

callsfor a significant time commitment not appropriate to all conflicts.
For example, a business owner should work collaboratively with the manager to establish
policies, but collaborative decision-making regarding office supplies wastes time better
spent on other activities.
UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA
4. Compromising: The compromising strategy typically calls for both sides of a conflict to
give up elements of their position in order to establish an acceptable, if not agreeable,
solution. This strategy prevails most often in conflicts where the parties hold approximately
equivalent power. Business owners frequently employ compromise during contract
negotiations with other businesses when each party stands to loose something valuable,
such as a customer or necessary service.
5. Competing: Competition operates as a zero-sum game, in which one side wins and other
looses. Highly assertive personalities often fall back on competition as a conflict
management strategy. The competitive strategy works best in a limited number of conflicts,
such as emergency situations. In general, business owners benefit from holding the
competitive strategy in reserve for crisis situations and decisions that generate ill-will, such
as pay cuts or layoffs.

8. CHANGE MANAGEMENT

Change management is the discipline that guides how we prepare, equip and
support individuals to successfully adopt change in order to drive organizational success
and outcomes. Change management provides a structured approach for supporting the
individuals in your organization to move from their own current states to their own future
states. Organizational change management involves first identifying the groups and
people who will need to change as the result of the project, and in what ways they will
need to change. Organizational change management involves creating a customized plan
for ensuring impacted employees receive the awareness, leadership, coaching, and
training they need in order to change successfully. Driving successful individual transitions
should be the central focus of the activities in organizational change management.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

 Organizational change management is complementary to your project
management. Project management ensures your project’s solution is designed,
developed and delivered, while change management ensures your project’s solution is
effectively embraced, adopted and used.

Change Management Process

1. Clearly define the change and align it to business goals: Many organizations miss this first
vital step. It’s one thing to articulate the change required and entirely conduct a critical
review against organizational objectives and performance goals to ensure the change will
carry your business in the right direction strategically, financially, and ethically. This step can
also assist you to determine the value of the change, which will quantify the effort and
inputs you should invest.

Key questions:
• What do we need to change?
• Why is this change required?
2. Determine impacts and those affected: Once you know exactly what you wish to achieve
and why, you should then determine the impacts of the change at various organizational
levels. Review the effect on each business unit and how it cascades through the
organizational structure to the individual. This information will start to form the blueprint
for where training and support is needed the most to mitigate the impacts.

Key questions:
• What are the impacts of the change?
• Who will the change affect the most?
• How will the change be received?
3. Develop a communication strategy: Although all employees should be taken on the
change journey, the first two steps will have highlighted those employees you absolutely
must communicate the change to. Determine the most effective means of communication
for the group or individual that will bring them on board. The communication strategy
should include a timeline for how the change will be incrementally communicated, key
messages, and the communication channels and mediums you plan to use.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

Key questions:
• How will the change be communicated?

• How will feedback be managed?

4. Provide effective training: With the change message out in the open, it’s important that
people know they will receive training, structured or informal, to teach the skills and
knowledge required to operate efficiently as the change is rolled out. Training could
include a suite of micro-learning online modules, or a blended learning approach ie face-
to-face training sessions or on-the-job coaching and mentoring.

Key questions:
• What behaviors and skills are required to achieve business results?

• What training delivery methods will be most effective?

5. Implement a support structure: Providing a support structure is essential to assist
employees to emotionally and practically adjust to the change and to build proficiency of
behaviors and technical skills needed to achieve desired business results. Some change
can result in redundancies or restructures, &providing support suchas counseling services
to help people navigate the situation. To help employees adjust to changes a mentorship
or an open-door policy with management to ask questions as they arise could be set up.
Key questions:
• Where is support most required?
• What types of support will be most effective?

6. Measure the change process: Throughout the change management process, a structure
should be put in place to measure the business impact of the changes and ensure that
continued reinforcement opportunities exist to build proficiencies. evaluate your change
management plan to determine its effectiveness and document any lessons learned.

Key questions:

• Did the change assist in achieving business goals?

• Was the change management process successful?

• What could have been done differently?

ORGANISATIONAL BEHAVIOUR KVSMBA
UNIT-V
Benefits of effective change management
1. Return on investment: Economies of scale as the approach to change is re-used for each

initiative saving the number of days spent defining a unique approach to each change
initiative.

2. Assessment and Motivation: With a strategic change management plan, organization will

have a vision for what the process of change will look like, and what milestones need to be
reached to achieve the end goal. This allows those in charge of the transition to assess the
success of the project during each critical stage, and also provides an opportunity to
motivate individuals and teams to help achieve the desired goals.
4. Maintaining Day-to-Day Operations :While some sacrifices may be necessary to reach

desired future state, should be able to implement change without harming current
operations. An effective change management plan will consider what individuals and teams
need in order to continue doing their jobs and maintain day-to-day operations without
noticeable negative effects.
5. Considering Employee Concerns :Addressing the concerns of employees allows
organizations to be more efficient and effective. Developing a change management plan will
allow organization to address these concerns and keep the lines of communication open
with all the individuals and teams involved in the transition.
6. Reducing Risk and Inefficiency :Taking the time to create an organizational change

management plan will allow you to save time and reduce risks in the end. By simply creating
a plan that considers all the individuals and teams involved in the transition, reduce the
possibility of an unsuccessful attempt to change, and reduce the amount of time it takes to
implement the change.
7. Boost in Morale :When employees see that the leaders in their organization have taken

the time to develop a change management plan that considers their wants and needs, they
are bound to perform better and get more involved in the transition. So make sure staff
feels supported and that they have the information they need to succeed.

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

CASE STUDY ON CHANGE MANAGEMENT:
Amazon
Ever since Amazon went online in 1995, the e-commerce juggernaut has undergone a
slew of changes — despite being led by the same man, Jeff Bezos, during the ensuing two-
plus decades.
When the Seattle-based company first launched its website, all it sold was books.
Gradually, Bezos and his team expanded Amazon’s offerings to include things like CDs and
DVDs.
But Amazon never really stopped changing the inventory it sold.
Bezos said he wanted his store to become the world’s largest, so he worked hard toward
meeting that goal — whether that meant offering new products, launching Amazon
Prime, launching Amazon Instant Video ... the list goes on and on.
Today, Amazon sells more than 200 million products to customers all over the world.
Though for years, Amazon’s detractors insisted that the company wasn’t making enough
profits to justify any investments, that all changed in 2015 when the company posted
back-to-back successful quarters.
The market responded kindly, and today, Amazon boasts a market valuation of more than
$440 billion.
But Bezos isn’t anywhere close to done yet. There are talks of Amazon delivering
packages via drone.
And if that wasn’t enough, Bezos recently said he hopes Amazon can produce as many as
16 feature films each year. In 2017, Bezos & his team took home three Oscars.
Indeed, it appears as though Amazon is a company that can be characterized as changing
constantly. To date, they’ve been successful, probably because the company is always
putting its customers first.
External Questions: (Old Question papers)

UNIT-V

1) How do you create and maintain organization culture?

2) What is departmentation? Explain types of departmentation and its importance in organizations?
3) What is organizational conflict? How to manage them?
4) Describe causes of conflicts in organization?
5) “All conflicts are bad”. Do you agree with the statement? Defend your argument.
6) What is organizational climate? Discuss the features of sound organizational climate?
7) Describe causes of conflicts in organization

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA

12)Comment on the Porter and Lawler expectancy theory of motivation?

UNIT-V ORGANISATIONAL BEHAVIOUR KVSMBA